Ojolali Project Update
January 23 2007 - 2:20AM
UK Regulatory
RNS Number:9687P
Finders Resources Limited
23 January 2007
FOR IMMEDIATE RELEASE: 23rd JANUARY 2007
OJOLALI PROJECT - HIGH GOLD AND SILVER GRADES
FROM BATU KUNING DRILLING
Finders Resources is the operator of the Wetar copper project and Ojolali
gold-silver project both in Indonesia and holds an investment in Geopacific
Resources NL, an ASX-listed company.
HIGHLIGHTS
* Drilling at Batu Kuning continues to intersect high gold and silver grades
from a complex system of quartz-carbonate veins with better assays from the
last 6 holes including:
* 5.5m @ 11.23 g/t Au, 14 g/t Ag from 140.7m (hole BTK07)
* 1m @ 8.17 g/t Au, 52 g/t Ag from 42m (hole BTK04)
* 1m @ 11.89 g/t Au, 690 g/t Ag from 35m (hole BTK05)
* 1m @ 4.12 g/t Au, 311 g/t Ag from 114.5m (hole BTK05)
* Final assays have been received from the 34 hole Phase 1 drilling program
at Jambi. An independent review of the resource completed by Hellman and
Schofield concluded that considerable additional drilling was required for
an accurate estimate of the resource. On the basis of current data they
reported Inferred Resources of:
* 3.2 Mt @ 1.0 g/t Au, 6.9 g/t Ag (0.5 g/t Au cut-off, and including
mining dilution), and
* 2.0 Mt @ 1.3 g/t Au, 7.0 g/t Ag (0.7 g/t Au cut-off, and including
mining dilution)
* The Jambi mineralization remains open to the north-west, west and
south.
* Scoping study for initial Jambi/Batu Kuning development commenced by
Intermet Engineering of Perth WA.
* Significant extensions of known vein systems indicated by ongoing
geophysical surveys.
At Ojolali, Finders is pursuing a three tiered work program aimed at:
1. Early development of a small low-cost start up operation based on the readily
accessible Jambi Oxide gold resource, supplemented by feed from the adjacent
Batu Kuning vein system;
2. Evaluating metallurgical options for the 40M oz silver Tambang vein in the
light of discovery of significant associated zinc values; and
3. Systematic exploration of extensive additional gold bearing vein systems
within the tenements using detailed IP geophysical surveys as a primary
targeting tool.
Chris Farmer, Managing Director, commented:-
"Our work to date has shown that Ojolali has potential to develop into a major
precious metals mining district. The Jambi prospect, with soft oxidized ore and
low stripping ratio provides a platform for a low cost start up operation,
supported by the high gold and silver grades we are encountering in drilling at
the adjacent Batu Kuning prospect. We are particularly pleased to have obtained
the services of Intermet Engineering to review our development options.
On the exploration side, IP geophysical surveying is proving highly effective in
both indicating extensions to known mineralization, and locating new mineralized
systems through the extensive areas of poor outcrop in the tenement area. We
have now developed a wide range of new targets which will be prioritized by
detailed surface work prior to follow up drilling. "
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
OJOLALI PROJECT
(Finders 72% with option for 100%)
Batu Kuning Drilling
The Batu Kuning prospect, located 600m south east of Jambi, comprises a complex
of epithermal quartz-carbonate veins and abandoned local mining pits over a 1 km
north-south strike length. Finders is conducting an on-going diamond drilling
program at Batu Kuning and is pleased to announce some very encouraging gold and
silver assays from an additional six holes for which assays have been received.:
Hole Easting+ Northing+ Rl Dip Azimuth Depth (M)
BTK02 446812 9482187 138 -60 0 143.05
BTK03 446770 9481896 203 -60 90 45.00
BTK04 446787 9481891 202 -60 270 76.25
BTK05 446801 9482109 137 -60 90 166.60
BTK06 446789 9481890 203 -60 270 160.10
BTK07 446811 9482159 134 -60 270 194.20
+ UTM Zone 48S, WGS84
The vein system intersected by drilling to date Drilling at Batu Kuning
comprises multiple quartz and quartz-carbonate veins ranging from 10 cm to
several metres in width. Additional drilling will be required to resolve the
structural controls, and all intercepts are quoted as down hole lengths and may
not represent true widths. Significant assay results from the last 6 holes
completed include:
Hole From (m) Width (m) Ag g/t Au g/t Au Eq*
BTK02 17.0 1.0 4 2.06 2.12
48.0 1.0 5 0.99 1.07
97.0 1.0 6 1.30 1.39
105.0 1.0 23 1.06 1.44
BTK03 20.5 1.0 13 0.85 1.07
26.5 1.0 2 3.11 3.15
BTK04 5.5 5.0 13 1.08 1.29
21.5 7.0 19 1.12 1.43
incl 25.5 1.0 8 5.03 5.16
41.0 5.0 51 2.37 3.22
incl 42.0 1.0 52 8.17 9.04
60.0 1.0 17 1.99 2.27
71.0 2.0 4 0.93 1.00
BTK05 10.7 1.0 25 7.56 7.98
33.0 6.0 138 3.11 5.41
incl 35.0 1.0 690 11.89 23.39
50.1 1.0 19 2.68 3.00
75.7 2.0 1 1.12 2.00
94.0 1.0 18 0.90 1.21
114.5 1.0 311 4.12 9.30
126.5 1.0 202 2.58 5.95
148.0 1.5 197 3.85 1.50
153.0 4.0 100 1.19 2.85
incl 154.0 1.0 361 2.00 8.02
BTK06 72.5 2.0 6 3.73 3.82
78.0 1.0 3 0.97 1.01
148.5 1.0 2 1.27 1.31
BTK07 25.5 1.0 4 1.43 1.49
39.0 1.0 5 0.98 1.06
75.4 3.0 12 0.84 1.04
83.6 1.0 330 6.52 12.02
88.7 3.0 3 1.14 1.19
138.7 7.5 10 8.41 8.58
incl 140.7 5.5 14 11.23 11.46
incl 144.2 1.0 34 34.19 34.75
166.5 1.0 2 1.92 1.96
187.5 2.0 2 1.01 1.04
* Au equivalents are calculated using Ag g/t divided by 60 plus Au g/t
Silver:gold ratios in the oxide zone are low compared to un-oxidized material,
indicating substantial leaching of silver from oxidized material.
Jambi Prospect
Final Phase 1 Drilling Results
Results have been received from the final nine holes in the first phase of the
Jambi drilling program. The holes have the following collar positions.
Hole Easting+ Northing+ Rl Dip Azimuth Depth (M)
BKJ26 446341 9483002 187 90 -50 56.70
BKJ27 446517 9482988 268 90 -50 175.90
BKJ28 446521 9482923 230 90 -50 51.40
BKJ29 446473 9482927 242 90 -50 109.80
BKJ30 446441 9482981 255 90 -50 259.70
BKJ31 446429 9483203 186 90 -50 100.50
BKJ32 446449 9483099 207 90 -50 102.00
BKJ33 446540 9483032 232 90 -50 85.00
BKJ34 446423 9482950 240 90 -50 256.00
+ UTM Zone 48S, WGS84
Significant intervals with assays above 1 g/t Au equivalent are reported below:
Hole From (m) Width (m) Ag g/t Au g/t Au Eq*
BKJ26 0.0 9.0 3 1.16 1.21
14.0 5.0 1 1.63 1.65
incl 17.0 2.0 2 3.61 3.64
22.0 17.0 6 1.11 1.21
BKJ27 5.0 3.0 5 0.50 0.58
12.0 2.0 2 0.53 0.57
26.0 19.0 2 1.42 1.45
incl 31.7 7.3 2 2.94 2.98
52.0 4.0 4 0.61 0.69
63.0 3.0 23 0.78 1.17
71.0 33.0 31 0.63 1.16
incl 81.0 4.0 40 1.87 2.55
incl 98.0 1.0 430 1.01 8.18
109.0 1.0 6 2.30 2.39
126.0 7.0 45 0.40 1.14
incl 128.0 3.0 94 0.15 1.72
138.0 4.0 32 1.27 1.80
BKJ28 2.6 8.4 0 0.60 0.60
22.0 11.0 4 1.49 1.56
22.0 2.0 12 6.99 7.19
BKJ29 13.0 54.3 34 1.19 1.75
incl 35.0 1.0 113 5.21 7.10
56.0 11.0 48 3.40 4.20
76.0 3.0 44 1.54 2.27
82.0 9.0 15 0.56 0.82
95.0 2.0 74 0.12 1.36
BKJ30 0.0 32.0 12 3.33 3.53
incl 5.5 18.5 8 5.16 5.30
41.0 5.0 5 0.40 0.48
56.0 15.0 43 0.22 0.94
80.0 1.0 18 2.13 2.43
103.0 3.0 16 0.69 0.96
143.0 1.0 6 5.01 5.11
173.0 9.0 17 0.52 0.79
190.0 2.0 18 1.07 1.37
BKJ31 24.6 2.0 4 0.80 0.86
29.6 11.4 40 0.50 1.17
incl 30.6 5.4 60 0.68 1.67
90.7 1.0 2 1.08 1.11
BKJ32 1.0 1.0 3 6.31 6.35
18.0 1.0 10 5.64 5.81
26.0 5.0 7 3.55 3.68
BKJ33 24.5 4.0 7 3.50 3.62
43.5 1.0 2 1.48 1.52
52.5 1.0 6 3.54 3.64
72.0 12.0 11 1.52 1.71
80.0 4.0 17 2.57 2.86
BKJ34 23.6 20.0 24 0.61 1.02
incl 37.6 5.0 36 0.80 1.52
62.6 12.4 39 0.16 0.68
84.0 4.0 28 0.07 0.64
219.0 1.0 0 1.46 1.62
* Au equivalents are calculated using Ag g/t divided by 60 plus Au g/t
Jambi Resource Estimate
With completion of the planned Phase 1 drilling program at Jambi, Hellman &
Schofield Pty Ltd (H&S) have carried out an independent review of the results
and completed a revised resource estimate. A number of significant issues were
highlighted in this review:
* Continuity of higher grade gold zones was less than the current average
drill spacing of 50x50m, and closer drilling at 25x25m spacing would be
required for accurate resource estimation
* The mineralization has not been closed by drilling to the north-west, west
and south
* Because of uncertainties in sampling and sample compositing, available
historical drilling data is not suitable for detailed resource estimation,
which will necessitate re-drilling by Finders.
Subject to these limitations, a revised resource estimate was carried out by H&
S, using Multiple Indicator Kriging, and tabulated below. This geostatistical
technique reports the proportion and grade at given cut-off grades of individual
mining units within overall resource blocks. Grades reported from this work do
not require further adjustment to accommodate eventual mining dilution.
Gold Total Inferred Resource Contained Attributable
Cut off g/t Gold Gold Oz
Oz Finders (72%)
Million Gold Silver
Tonnes g/t g/t
0.5 3.21 1.0 6.9 103,215 74,315
0.7 2.01 1.3 7.0 84,019 60,494
1.0 1.08 1.6 7.1 55,563 40,005
1.3 0.62 2.0 7.2 39,871 28,707
While this estimate represents a reduction in contained gold of around 30%
compared to previous estimates based on historical data, Finders management
remains confident that the additional drilling recommended by H&S will at least
restore the previous position. Completion of re-drilling to a 25 x 25m spacing
will require around 5,000m of additional drilling, and a reverse circulation
drill is currently being sought to complete this work.
A copy of Hellman & Schofields summary report and resource sections may be
viewed on Finders website at www.findersresources.com
Scoping Study
Finders have retained Intermet Pty Ltd from Perth to carry out a scoping study,
to be completed in the current quarter, into development options for a start-up
plant based on the Jambi resource with potential for additional feed from Batu
Kuning which Finders management are confident will develop from continued
success from the current Batu Kuning drill program
Geophysical Results
Systematic coverage of prospective areas within the tenements by detailed
gradient array Induced Polarization (IP) continues with 15 square km completed
to date. Significant extensions are indicated to the Tambang, Belida and Batu
Kuning vein systems, plus a major new resistive anomaly to the north of Kresna.
(Figure 1). The extensive array of anomalies defined to date will be followed up
by soil sampling, pitting and 3D IP techniques for ranking for follow up drill
testing.
Statement by Hellman and Schofield Pty Ltd
The information in this release that relates to mineral resources is based on
work completed by Mr Jonathon Abbott and Dr Phillip Hellman. Mr Abbott is a
Member of the Australia Institute of Mining and Metallurgy and is a full time
employee of Hellman and Schofield Pty Ltd ("H&S"). Dr Hellman is a Director of
H&S. Both have sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
they are undertaking to qualify as a Competent Persons as defined in the 2004
edition of the "Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Mr Abbott and Dr Hellman consent to the inclusion
in the report of the matters based on this information in the form and context
in which it appears.
Statements by Finders Resources Ltd
Geological 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.
All assaying of drill core 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.
Statements in this document that are forward-looking and involve numerous risks
and uncertainties that could cause actual results to differ materially from
expected results are based on the Company's current beliefs and assumptions
regarding a large number of factors affecting its business. Actual results may
differ materially from expected results. There can be no assurance that (i) the
Company has correctly measured or identified all of the factors affecting its
business or the extent of their likely impact, (ii) the publicly available
information with respect to these factors on which the Company's analysis is
based is complete or accurate, (iii) the Company's analysis is correct or (iv)
the Company's strategy, which is based in part on this analysis, will be
successful.
Notes for editors and analysts:
Finders Resources LTD (AIM:FND)
www.findersresources.com
Advanced Projects in Indonesia Wetar Copper Project
- 9.8 Mt @ 2.5% Cu, 0.4% Zn, 28 g/t Ag and 0.68 g/t Au, in two
deposits at a cut-off grade of 0.5% Cu
- Independent JORC estimates; approx. 35% measured, 55% indicated
- High grade, low strip ratio, coastal location
- Variety of process route alternatives being investigated
- Exploration potential with known satellite deposit
- approx. 72% Finders (subject to audit) with potential for further
expenditure-based equity
Ojolali Gold -Silver Project
- Jambi Prospect: CIL or CIP target with Inferred Resource of around
100,000 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,
strong potential to increase Resource base at Batu Kuning
- approx. 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 16.7% 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 #14.8 million on 22/01/07
- Fast track development and cash generation potential
- Quality team
This information is provided by RNS
The company news service from the London Stock Exchange
END
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