Increased Gold Grades
May 31 2006 - 2:32AM
UK Regulatory
RNS Number:8068D
Finders Resources Limited
31 May 2006
FOR IMMEDIATE RELEASE: 31 MAY 2006
FINDERS RESOURCES LTD
INCREASED GOLD GRADES FROM NEW DRILLING
HIGHLIGHTS
* Increased gold grades at Ojolali
* Geophysical survey at Ojolali identified new potential drilling prospects
* Work at Wetar is on-schedule
OJOLALI SILVER-GOLD PROJECT
Results from the initial two twin holes - BKJ-01 and BJK-02 - at the Jambi oxide
gold prospect provide indications for a substantial increase in grade for the
deposit
* BKJ-01: 33.8m @ 1.4g/t Au from surface
* BKJ-02: 31m @ 4.35 g/t Au from 17m depth,
Including 2m @ 35.3 g/t Au from 28m and 2m @ 10.2 g/t Au from 45m.
* This intercept is the same length, but over double the grade of the
corresponding twin hole.
Detailed geophysical surveys have been completed in a 1km x 1km block
surrounding the Tambang prospect. Interpretation of resistivity data has
identified untested sub-parallel veins within 250m of the Inferred Resource at
Tambang and a close correlation with mapped vein structures.
WETAR COPPER PROJECT
Preliminary test work of a representative sample from the Lerokis deposit
resulted in 89% copper recovery producing a rougher concentrate grading 14.6%
Cu. This is in line with previous results.
Sample collection and metallurgical test work is continuing, and the Wetar
Scoping Study is on schedule for completion before the end of June.
Corporate
Geopacific Resources NL (FND 16.6%): A$2.4m raised; commenced trading on the ASX
on May 9th.
Chris Farmer, Managing Director said:
"The assay results from the initial twin holes at Jambi oxide deposit are very
encouraging and enhance the outlook for the remainder of the drill program."
For further information please contact:
College Hill: Paddy Blewer or Nick Elwes, 020 7457 2020
Finders Resources Ltd: Chris Farmer, cbf@findersresources.com
Website: http://www.findersresources.com
Detailed Information:
Ojolali Silver-Gold Project (FND 72%)
A major system of partially explored low sulphidation epithermal veins, with a
current Inferred Resource of around 300,000 oz Au and 40 M oz Ag at the Jambi
and Tambang prospects
Results have been received from the first two of a planned programme of 8
closely spaced holes from the core zone of the Jambi resource. The program is
designed to confirm grade, width and continuity of gold mineralization reported
from previous drilling. Finders use PQ & HQ size drill core and 1kg screen fire
assay methods; providing larger samples for more accurate assessment of grades
than previous drilling campaigns by former owners.
Holes BKJ-01 and BKJ-02 were drilled vertically as twins to previous holes DBJ2
and JDH063
Using a 0.4 g/t Au cutoff, a maximum of 1m of internal waste and no cutting of
high grades, preliminary results are tabulated below, along with corresponding
results from the twined holes.
BKJ-01 DBJ2
Depth from (m) Width Grade Au g/t Depth from Width Grade Au g/t
0 33.8 1.40 0 21 0.6
47 6.0 0.78 26 22 1.12
55 1.0 1.91 48 2 8.0
67 1.0 3.38
97 2.3 1.19
BKJ-02 JDH063
Depth from (m) Width Grade Au g/t Depth from Width Grade Au g/t
0 2.4 1.00 0 2 1.51
17 31.0 4.35 16 30 1.77
Including 28 2.0 35.3 54 2 2.38
and 45 2.0 10.2 64 8 0.65
51 2.0 1.30
60 1.0 5.04
67 1.0 0.79
Drill hole collar information:
Hole Easting Northing RL Az Incl Total Depth
BKJ-01 446482 9483014 280 0 o -90 o 99.3m
BKJ-02 446442 9483000 279.5 0 o -90 o 90.7m
While comparable intervals from BKJ001 and DBJ2 have produced broadly similar
gold contents over comparable intervals, the grade of BKJ-02 is more than double
that of the previous hole for the main comparable intercept from 17m depth.
These results, while preliminary, and requiring additional check drilling for
confirmation, are regarded as extremely encouraging by Finders management, in
that they clearly confirm the wide zones of near-surface low grade gold
mineralization inferred from the previous drilling, as well as indicating the
potential for substantial increases of grade in this zone which are interpreted
to reflect more rigorous sampling and assaying used in the current program.
A second drill rig is scheduled to begin a 6 hole, 1000m program at the Tambang
silver-gold prospect; this program will incorporate hole twins to confirm
previous data and test for down-dip extensions of a +50m wide vein zone known
from previous drilling.
The resource estimates for the Wetar Copper and the Ojolali Gold-Silver Projects
were reported in accordance with the 2004 edition of the Australasian Code for
Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC
Code", available at www.jorc.org). The estimates were performed by Dr Phillip
Hellman who is a Director of Hellman & Schofield Pty Ltd ("H&S") and a Fellow of
the Australian Institute of Geoscientists. He qualifies as a Competent Person
under the meaning of the JORC Code and consents to the inclusion of these
estimates in this release by Finders Resources Ltd in the form and context in
which they appear.
All assaying of samples was undertaken by the ITS laboratory in Jakarta. ITS is
one of the world's largest product and commodity testing, inspection and
certification organizations. The Jakarta laboratory is ISO 17025 accredited and
employs a Laboratory Information Management System (LIMS) for sample tracking,
quality control and reporting.
Flotation test work was undertaken by Optimet Laboratories, Bowden, South
Australia.
Other information in this announcement is based on information compiled by Dr R
Fountain who is a Fellow
of the Australasian Institute of Geoscientists and a Director of Finders. Dr
Fountain has sufficient experience
that is relevant to the styles of mineralisation and types of deposits under
consideration and to the activity
that he is undertaking to qualify as Competent Person as defined in the JORC
Code. He consents to the
inclusion in this announcement of the matters based on his information in the
form and context in which they
appear.
Notes for editors and analysts:
Finders Resources LTD (AIM:FND)
www.findersresources.com
Advanced Projects in Indonesia Wetar Copper Project
* 10.7 Mt @ 2.4% Cu, 0.64 g/t Au, 27 g/t Ag in two deposits at a
cut-off grade of 0.5% Cu
* Independent JORC estimates, 88% indicated
* High grade, low strip ratio, coastal location
* Variety of process route alternatives being investigated
* Exploration potential with known satellite deposit
* 61% Finders with potential for further expenditure-based equity
Ojolali Gold -Silver Project
* Jambi Prospect: CIL or CIP target with Inferred Resource of around
150,000 oz Au and low strip ratio
* Tambang Prospect: Current Inferred Resource of around 40 million
Oz Ag and around 170,000 Oz Au
* Bonanza grade veins targeted in under explored mining district
* 72% Finders
Investment Geopacific Resources (ASX:GPR)
* Portfolio of copper-gold and gold projects in Fiji, many existing
ore grade intercepts and 10 drill-ready targets
* Finders has a 16.6% interest in Geopacific
Proven Team * Extensive collective experience and expertise in the exploration,
assessment, evaluation and development of mineral projects
* Track record of bringing mines into development
* Significant, extended Indonesian experience
Finders Resources Limited * Market capitalisation of approximately #13.9 million on 30/5/06
* Fast track development and cash generation potential
* Quality team
* Strong exploration upside
Management Team
The team have played an integral role in the establishment of eleven new mining
operations with over 70 years' experience in relation to Indonesian projects.
Dr Russell Fountain (aged 61) BSc, PhD, FAIG
Executive Chairman
Dr Fountain has 40 years of international experience in all aspects of mineral
exploration, project feasibility and project development. Previous senior
positions include President, Phelps Dodge Exploration Corporation; Exploration
Manager, Nord Pacific Ltd and Chief Geologist, CSR Minerals Ltd. Dr Fountain
has had global responsibility for corporate exploration programs with portfolios
targeting copper, gold, nickel and mineral sands and has been accessing and
managing mining opportunities for a significant portion of his career.
Dr Chris Farmer (aged 41) BSc(Hons), MBA, PhD
Managing Director
Dr Farmer has 15 years of international experience in all aspects of
exploration, with an emphasis on international joint ventures and business
development. After graduating from the University of Southampton, he completed
a PhD at the Royal School of Mines in London. Previous positions include
Vice-President Australasia and Chief Geologist, Phelps Dodge Exploration
Corporation; and Senior Geologist with both Highlands Gold (Indonesia) Pty Ltd
and Billiton Indonesia BV. Dr Farmer worked at the Lebong Tandai and Wetar gold
mines in Indonesia, focusing on mine exploration. Elsewhere in the region, he
has worked on gold, copper and base metal exploration projects in the
Philippines, China, India and Australia and has evaluated projects in PNG, Laos,
Korea, Malaysia, Thailand, Mexico, USA, Eastern Europe, South America, Fiji,
Solomon Islands, New Caledonia and Canada.
Mr Stephen de Belle (aged 54) BA, MSc, MTCP, MAICD
Non-Executive Director
Mr de Belle is a non-executive director of the ASX listed Midwest Corporation
Ltd and Principal, Kyle Associates. Previous roles include: Managing Director,
Midwest Corporation Ltd; Chairman, Australian Superannuation Nominees Ltd, Head
of Resources Finance, ABN AMRO Australia; Director, Structured Finance, Barclays
Bank. Stephen has been closely involved with the start-up and operation of iron
ore, coal, base metals, gold and petroleum projects and companies, and has
particular expertise in the development and financing of projects in the
resources and infrastructure sectors both in Australia and overseas. In
Indonesia, Stephen has held senior roles with CSR and Koba Tin, with experience
in Contract of Work negotiations, investment and evaluation.
Mr Steve Lonergan (aged 59) LLB, LLM
Non-Executive Director
Mr Lonergan specialises in corporate and commercial law as a private
practitioner. He is currently General Counsel and Company Secretary of CBH
Resources Ltd and Director and Company Secretary of Paradigm Gold Ltd and has
held similar positions with Savage Resources Ltd and Pancontinental Mining Ltd.
Stephen has also been a Partner for Baker & McKenzie and worked for the
International Air Transport Association, the Department of Defence and
Department of Foreign Affairs. He has been involved in acquisitions and
exploration arrangements in Canada, USA, Peru, Australia, South Asia and Africa.
Mr Ian Neuss (aged 60) BSc(Hons), Dip.Ed, MSc, FAIG, FAICD
Alternate Executive Director
Mr Neuss has over 35 years mining experience including positions as Managing
Director of Outokumpu Mining Australia Pty Ltd and Manager Overseas Exploration
for CSR Ltd. Ian was responsible for commercial operations and exploration,
building both CSR's overseas mining interests, and Outokumpu's minerals
portfolio in Australia that lead to successful joint ventures, financial
investments and mines. Ian has held various positions in Indonesia, including
Exploration Manager for Koba Tin during the 1970s and Project Manager at the
Lebong Tandai gold mine. He has managed exploration and evaluation in Asia,
including identification of and development of gold and base metals mines in
Australia and Indonesia. Whilst with Outokumpu, Ian was also an alternate
Director on the board of Sipa Resources.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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