Tuesday, August 11, 2009

Fortuna suspends Seluma drilling

Fortuna Minerals Limited told investors today that drilling at the company's Seluma Iron Sands Project, Bengkulu has been suspended after completion of the first five holes.
Fortuna said initial drilling was undertaken in the southern tenement areas while land access agreements were negotiated with villagers in the northern tenement areas. Remote sensing data and results of previously completed surface sampling indicates that better grades may be found in the north, and drilling progress in the south has proven slower, and therefore more expensive, because of difficulty moving between holes.
"A decision has therefore been made to suspend drilling until access to the northern tenement areas is obtained. Negotiations are not expected to be concluded until after the holly month of Ramadhan which ends next month," Mathew Walker, executive chairman of Fortuna MInerals said in a written statement.
The project comprises one mining rights (kuasa pertambangan/KP) located on the coastal plain proximal to a series of inactive volcanic centers which lie along the great Sumatran Fault. Analysis of samples collected from two programs completed in 2008 demonstrated that the sedimentary profile contains potentially economic iron sands, with iron content ranging from 4.8 to 22.5% (6.9-32.1% Fe2O3), compare favorably to Indo Mines Ltd' Yogyakarta iron sands-pig iron project (10.8% Fe resource grade). 




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