Sumatra Gold Updates Sontang Project

ASX-listed mining company Sumatra Copper & Gold Plc has given an update on the progress of its exploration activities in the Sontang project, which is located some 160 km north of Padang. The exploration indicates a “significant copper-arsenic soil anomally,” and “large gold anomaly,” the company said.

It said recent activity at Sontang during January and February 2010 has focused on tracing mineralization from Sontang East north-westwards to the Sontang Central and Sontang West prospects with a program of ridge and spur soil sampling at 25 meters intervals. The geochemistry has also been undertaken in conjunction with surface mapping.

“Results from ridge and spur soil sampling have outlined a significant copper-arsenic soil anomaly, marked above +100 ppm Cu (maximum 420 ppm Cu) and 140 ppm As (maximum 4,020 ppm As), that is at least 400 meters by 100 meters in size at Sontang West,” the company said.

It said work at Sontang is continuing with further soil sampling, mapping and sampling of exposures. The company hopes that the drilling on the massive ‘sulphide’ bodies already identified before the fourth quarter of 2010.

“We are very excited by the new results form Sontang,” said Managing Director of Sumatra Gold & Copper, Joceln Waller. “The discovery of further mantos, plus the large gold anomaly and results from the jasperoidal veining together with the new copper-arsenic target indicate that this is a much larger and more complex system than previously thought.” (Roffie Kurniawan)

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PSP claims encouraging gold-copper results in Aceh

Prosperity Resources Limited announced what it called as encouraging results from the initial scout drilling program at Pala in Pinang-Pinang project in Aceh province. The sixteen shallow diamond drill holes have intersected broad intervals of porphyry-related gold-copper mineralization.

The results include 22 meters of 1.12 g/t gold and 0.4% copper, 9 meters of 1.68 g/t gold and 0.54% copper, 7 meters of 1.13 g/t gold and 0.35% copper, 8 meters of 2.12 g/t gold and 0.18% copper, and 6 meters of 3.62 g/t gold and 0.06% copper.

"The results from this first phase shallow drilling program are encouraging and give us a better understanding of the geology at the Pala prospect. Our view has always been that Pinang Pinang is a deeper porphyry target and the next phase of work will involve generating the deeper drilling targets," Mo Munshi, chairman of Prosperity told ASX this morning.

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Hillgrove confirms gold prospect in West Papua

Hillgrove Resources Limited has confirmed the presence of significant copper and gold mineralization within two prospects in the Delta Target Area, in north western West Papua, Indonesia.

Hillgrove told ASX this morning that the field work for the Bird's Head Project confirmed that the large copper signature from soil sampling is due to porphyry style mineralization. The work also confirmed peak assays oc 5.7 g/t gold and 3.7% copper and the presence of a structural corridor which strikes at least 4Km and hosts medium to high grade gold/copper mineralization. Peak assays include 33.5 g/t gold and 8.6% copper.

Hillgrove has 80% economic interest in the project, which is located 130 Km from Sorong, Papua. The license covers 181,500 hectares within the administrative districts of Tamrau and Manokwari.

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Tujuh Bukit KP converted to IUP

Intrepid Mines Limited told ASX this morning that Indonesian regulatory authorities (Banyuwangi Regent in East Java) have granted PT IMN, its partner in the Tujuh Bukit gold project, two Izin Usaha Pertambangan (IUPs), replacing the Kuasa Pertambangan previously held.

The first IUP, an exploration IUP (pursuant to new mining law) for an area of 6623 hectares, is valid until January 25, 2014. The other, an operating and production IUP for an area of 4998 hectares, covers the multi-million ounce Zones A, B, and C deposits, deeper sulphide extensions, and the new Katak discovery and is valid until January 25, 2030. The later IUP will enable Intrepid to complete a scoping study and progress to a feasibility study, should exploration results warrant it.

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3 Banks finance Toka Tindung gold project

Archipelago Resources Plc has selected BNP Paribas, Standard Chartered Plc, and ANZ Bank to form a project finance syndicate to finance the company's 85% owned Toka Tindung gold project in North Sulawesi, Indonesia. The indicative term sheet contemplates the provision of US$60 million project finance and US$10 million cost over-run facility.

Each of the three banks will now complete a process of due diligence necessary to obtain credit committee approval targeted for early 2010. While the commercial terms are confidential, they are considered commensurate with the competitive environment in which the selection process has taken place.

The requirement for any additional working capital by way of equity has yet to be determined. Hedging of about 170,000 ounces (representing 15% of initial scheduled production) remains to be finalised, but is currently proposed to be by way of the purchase of put options leaving the company fully exposed to any increase in the gold price.

The Company recently announced the issue of contractual letters of intent to McConnell Dowell regarding construction and management activities necessary to complete the processing plant and ancillary facilities. These awards are consistent with the Company’s construction schedule and objective of production by 4th quarter 2010.

The Toka Tindung Gold Project has a resource of 1.75M ozs of gold equivalent, of which at least 1.1m ozs will initially be mineable by open pit. When in operation the project will produce at an average annualised production rate of 160,000 ounces of gold equivalent per annum for at least 6 years together with an additional 2 years processing lower grade stockpiles.  

The Company’s pits  are currently designed at a very conservative US$600/oz gold price and as a result the Company is confident that with further exploration and sustained gold prices it will be able to substantially extend the life of the Project. 

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Yet another progress for Southern Arc's project

Southern Arc Minerals Inc told TSX Venture on Tuesday that minister of public works has signed the revision of the provincial regulation (Perda) on West Nusa Tenggara spatial planning, which might pave the way for its gold and copper project in the province.

Southern Arc said the National Spatial Planning Body (NSPB) completed its work on the new regulation in November and earlier this month referred the document for the approval of the Minister of Public Works, who oversees the NSPB. The Minister has signed the Perda and it has been forwarded to the Provincial Legislature in Mataram for its final approval and enactment into law.

Southern Arc has currently assembled a portfolio of six projects on the islands of Java, Lombok and Sumbawa. Sumbawa Island hosts Newmont Mining's world-class Batu Hijau mine, which adjoins Southern Arc's Taliwang property immediately to its north. 

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Centurion acquires Aceh gold projects

TSX Venture-listed Centurion Minerals Ltd has executed a MoU with PT Sigma Mineral Exploration to acquire an 85% interest in three gold exploration concessions in Aceh Tengah regency, Aceh province. 

The three projects are approximately 10,000 Ha in size and are located near to the south of East Asia Mineral's Miwah gold project. East Asia Minerals is also listed on TSX Venture. 

As reported by MarketWire few hours ago, pursuant to the agreements Centurion shall manage all exploration activities, be responsible for license issuance costs and 100% of exploration expenditures and related costs through to feasibility study. Upon receipt of IUP mining claim licenses, completion of definitive agreements and regulatory approvals, Centurion intends to commence an active exploration program on the three projects.

Alfred Lenarciak, Centurion chairman has just completed discussions with the local authorities of Aceh Tengah Regency. They have expressed being pleased with the Company's initiatives to commence exploration on the most promising mineral prospects in the area. 

Centurion and its local parner is also in the process to reactivate the Sable gold project, 15-km west of Miwah epithermal gold project.

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Sihayo gold to commence production 2011-2012

Sihayo Gold Limited has received all results for the exploration drilling at the Sihayo 1 prospect in North Sumatra where the company found higher grade gold mineralization. The company plans to complete a definitive feasibility study (DFS) by the end of next year with the aim of moving into production late 2011 or early 2012.

The company told ASX this morning that further drilling will now be required to assess the higher grade portions of Sihayo and to test the potential extensions with the ultimate aim of adding to overall resource inventory.

Sihayo is the new name for Oropa Mining which controls the Pungkut contract of work in North Sumatra. Sihayo owns 75% interest in the project through PT Sorikmas Mining. There are currently three drilling rigs operating at Sihayo with the fourth and fifth rig due on site this month. 

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Vale-Intrepid deal on Tujuh Bukit collapsed

Intrepid Mines Limited said that negotiations with Vale SA in respect of the option to acquire rights in the Tujuh Bukit project in Indonesia, have been terminated, as the parties have been unable to reach agreement on several key elements of the formal option documentation.
Under the original plan, Vale, the second largest mining company in the world would control 60% shares in the gold and copper project in Banyuwangi, East Java.
Intrepid signed a heads of agreement with Vale Exploration Pty Ltd, a subsidiary of Vale, granting Vale an option to acquire rights to Intrepid's Tujuh Bukit sulphide copper-gold project in Indonesia in July 2009.
Under the terms of the HoA, Vale could earn a 60% shareholding in a JV holding the rights to the Tujuh Bukit project by, among other terms, spending a total of US$40 million.
Intrepid and its Indonesian alliance partner, PT Indo Multi Niaga, would retain the remaining 40% interest in the project, and would be free carried by Vale through the completion of a bankable feasibility study.
Intrepid and Indo Multi Niaga would continue to retain sole rights to the oxide gold-silver deposit which sits above the sulphide copper-gold deposit.
Preliminary work undertaken by Intrepid at Tujuh Bukit has identified the scope of two distinct projects: (1) an oxide gold-silver project, at which 2.57 million ounces of gold equivalent resources have been estimated, and (2) a sulphide copper-gold porphyry and high-sulphidation ore body.
Tujuh Bukit is located in East Java, covers an area of approximately 11,600 hectares, about 205 km southeast of Surabaya. But the project's future is pending a review about forest land status of the location.

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Hillgrove discovered additional gold zones in Sumba

Hillgrove Resources Limited told ASX this morning further results from the ongoing exploration program at Sumba Island, Indonesia confirmed additional gold zones at Pahandanjal prospect.

Hillgrove said results from the trenching program on the Western Vein system at Pahandanjal were released on the December 10, 2009, and results have now been received for some of the trenching conducted on the Eastern Vein system and from the reconnaissance rock chip/float sampling completed at both Pahandanjal and North Pahandanjal prospects.

Highlights of the discovery are:

(1) High grade gold identified in trench results from the southern end of the Eastern Vein system including 14m at 6.97 g/t gold and 10.7 g/t silver; (2) broad zone of gold anomaly identified in trench results from northern end of the Eastern Vein system over the area of Hillgrove's previously reported gold in soil anomaly including 46m at 1.01 g/t gold, 5.21 g/t silver, and 46m at 1.02 g/t gold and 2.63 g/t silver.

Hillgrove stock price increased 1.37% to $0.37 this morning. The stock was only $0.1 in March 2009.

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Robust confirms and extends high-grade gold on Romang Island

Robust Resources Limited said it has received final assay results on diamond drill hole LWD 051, which confirm and extend the previously announced high-grade gold intersection at its Batu Mas prospect within the Lakuwahi Caldera on Romang Island.

Final assay results for hole LWD 051 are as follows: 57.5 meters at 6.78 g/ton gold equivalent from 1.5 meters, including 27 meters at 9.36 g/t Au equivalent from 3 meters and 15 meters at 217 g/t Ag and 3.31 g/t Au from 26 meters, plus 24 meters at 2.4% Pb from 29 meters.

Robutst has now completed 44 holes from 4172m of diamond drilling on Lakuwahi Caldera Project and is on track to complete its target of 5000m by year end. An additional five holes have also been completed and assay results are awaited, Robust told ASX this morning.

Robust stock price surged 9.73% to A$1.24 on ASX this morning. The stock was only valued $0.1 in February 2009.

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Miwah gold secures IUP

East Asia Minerals Corporation reports that further to its comments on the new Indonesian Mineral and Coal Mining Law and implications for the Company, it has received formal documentation and licence confirming the completed conversion of the Aceh Province Miwah tenements to Ijin Usaha Pertambangan (IUP/ "Mining Licence").

The Miwah tenements comprise the Company's flagship Miwah Gold Zones which are progressing towards completion of NI43-101 resource estimates in 2010. To date East Asia has drilled more than 900 metres strike length along the shallow, laterally extensive 1.2 kilometre long Main Miwah Gold Zone, and has encountered wide intercepts of gold mineralization in all holes drilled. The Main Miwah Gold Zone remains open in all directions.

"This is a very significant step for Miwah", commented Michael Hawkins, President and CEO of East Asia Minerals Corporation in a statement to Toronto Stock Exchange yesterday. 

"The IUP's give us 3 years within which to complete exploration and deliver a positive feasibility study, potentially extended to 5 years. Thereafter under Indonesian Law, there is automatic conversion of the licences to development licences for an initial 20 year term, renewable for a further 20 years. We see delivery of the IUP's as giving us excellent security of long term tenure with fiscal stability, and is further validation of our assessment that the New Mining Law of Indonesia is globally attractive."

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High grade gold drilling in Ojolali project

Finders Resources Limited announced that a man-portable diamond drill has arrived on site at Ojolali project in Jambi and that first testing of high grade vein targets indicated by surface channel sampling will commence immediately.

The initial program will comprise approximately 1500m of diamond drilling, commencing with 6 holes for a total of 650m to test the Way Neki prospect. The balance of the drilling will be allocated to prioritized holes at the Jambi, C1, and Belida prospects.

Finders' exploration target at Ojolali is to increase oxide gold resources to +300,000 Oz of gold, to provide the basis for an initial low cost 30-50,000 ounce gold per year open pit mine, whilst also continuing to identify, prioritize, and test other gold and silver targets within the Ojolali epithermal district.

Finders controls 72% participating interest in the Ojolali gold-silver project. Finders is also the operator of Wetar copper project in eastern part of the country. The company is targeting commercial production of up to 25,000 tons per year of copper cathode next year, subject to final feasibility, permitting, and project funding. 

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Southern Arc expects mining clearance

Southern Arc Minerals Inc expects the new land utilization regulations will remove restrictions to its mining activities in West Nusa Tenggara.

In December 2006 the Provincial Governor introduced the Perda which purported to restrict mining activity on Lombok Island. The Perda was enacted without the consent of the relevant Regency and Central governments. In order to address this, the Central Government passed the National Spatial Planning Law 26/2007 and amendment No. 4725 (the “Federal Law”), requiring, the Provincial Government, by November 2009, to reclassify the entire provincial territory into designated zones (e.g. mining, agriculture or tourism).

Pursuant to the Federal Law, the Central Government formed the National Spatial Planning Body (the “NSPB”) in order to develop provincial laws which conform to the Federal Law. As of November 30, 2009 the Company has been informed by officials within the Central and Provincial governments that: 

(1) The NSPB has concluded their deliberations and has scheduled an official signing ceremony to be held in Jakarta on December 10, 2009 to formally endorse the revisions in order for the Perda to conform with the Federal Law; and 

(2) The revised Perda will then be presented to the Provincial Legislative Body in Mataram for final approval and subsequent enactment into law.

"Once these new land utilization regulations are in effect, all prior restrictions to mining activities on Southern Arc properties will be immediately removed," Southern Arc said in a statement to Toronto Stock Exchange (TSX) Venture on Tuesday.

Southern Arc has currently assembled a portfolio of six projects on the islands of Java, Lombok and Sumbawa. Sumbawa Island hosts Newmont Mining's world-class Batu Hijau mine, which adjoins Southern Arc's Taliwang property immediately to its north.

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East Asia Minerals expands gold mineralization in Aceh

Toronto-listed East Asia Minerals Corporation reports that diamond drilling continues to significantly expand the Miwah gold mineralization in Aceh province, Indonesia. 

EAS informed shareholders on Friday that results have been received for drill hole EMD012A collared 165 metres east-northeast of previous EAS drilling where 2.11 g/t gold over 100 metres, including 4.81 g/t gold over 30 metres was intersected in EMD008. EMD012A encountered 1.28 g/t gold over 183.5 metres, including 2.11 g/t gold over 77.7 metres. To date East Asia has drilled more than 900 metres strike length along the shallow, laterally extensive 1.2 kilometre long Main Miwah Gold Zone. East Asia has encountered wide intercepts of gold mineralized rock in all of the holes it has drilled to date on the Main Miwah Gold Zone. The Main Miwah Gold Zone remains open in all directions.

The Miwah Gold Prospect was partially defined by approximately 3,000 metres of drilling in eleven holes by a previous explorer in 1997. All holes drilled during this program intersected significant alteration and mineralization with intercepts including 71 metres of 1.4 g/t gold and 58 metres of 1.1 g/t gold. The previous explorer suggested potential for 100 Mt at 1.1 to 1.2 g/t gold, however a review of the historical data indicates that early drilling was parallel to higher grade (greater than 5 g/t gold) structures at surface.

East Asia Minerals (EAS) claimed Miwah Property is in a very similar volcanic setting to the Martabe gold-silver deposit, also located in North Sumatra (Purnama and Baskara resources: 127.8 million tonnes at 1.4 g/t gold (5.5 million ounces gold) and 15 g/t silver (60 million ounces silver), and the alteration system is of a comparable size. Miwah also exhibits a likeness to the size, style and geometry of the alteration system developed at the Pierina gold deposit in Peru (67.7 Mt grading 2.98 g/t gold and 22 g/t silver, giving a total 6.49 million ounces gold and 47.9 million ounces silver).

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Freeport Indonesia gold output surged 166%

PT Freeport Indonesia's gold output and sales surged substantially in Jan-Sep 2009. Gold sales soared 166% to 2.015 million ounces at average realized price of US$944/oz or about US$1.9 billion. 

Gold production skyrocketed by 178% to 2.03 million oz in the period. How about copper? Well, copper sales in Jan-Sep 2009 jumped 61.6% to 1.13 billion pounds at average realized price of US$2.41/pound or about US$2.73 billion against US$2.33 billion in the same period last year, mainly due to lower price (US$3.33/pound in Jan-Sep 2008). 

So, the combined sales revenue at PT Freeport Indonesia is about US$4.63 billion to make it the largest mining company in Indonesia.

Freeport McMoRan (FCX) owns 90.64% shares in PT Freeport Indonesia, while the remaining 9.36% is owned by Indonesian government.

FCX expects Indonesia sales of 1.4 billion pounds of copper and 2.4 million ounces of gold for 2009. Using the average realized price in Jan-Sep 2009, the Grasberg mine in Papua will contribute US$5.63 billion sales revenue to FCX.

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Avocet gold output in Indonesia ups 26%

Avocet Mining Plc reported gold output of 24,232 ounces  in six months ended September 2009, increased 25.8% from the same period last year while cash cost declined substantially by 20%.

Avocet told investors that mining cost was stable, while processing cost, royalties, and overheads were slashed substantially. Mining was benefited from unusually dry weather, which allowed progress to be made in a number of infrastructure projects, including new waste dumps, cleaning of sediment ponds, and realignment of haul roads.

North Lanut in North Sulawesi was developed by Avocet from the exploration stage. The mine has produced over 270,000 ounces since it was commissioned in 2004. Avocet purchased an 80% interest in PT Avocet Bolaang Mongondow, an Indonesian company holding a 6th generation Contract of Work, from Newmont Mining Corporation in 2002. An Indonesian company, PT Lebong Tandai, owns the remaining 20%.

Avocet reported average realized gold price of US$946/Oz in March-Sept 2009 against US$880/Oz in the same period last year. At that price, Avocet should have booked sales revenue of US$23 million in the period.

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Govt considers Pukuafu claims weak

Government was ready to challenge PT Pukuafu Indah's legal claim on 31% shares to be divested in PT Newmont Nusa Tenggara (NNT). 

Director General for Mineral, Coal, and Geothermal at Energy and Mineral Resources, Bambang Setiawan, said government has asked Newmont to clarify Pukuafu's claim that it had an agreement with Newmont and Nusa Tenggara Mining Corp to purchase the 31% shares. "According to Newmont, Pukuafu's claim is weak," Setiawan said. 

Government has decided to assign PT Aneka Tambang (ANTM) to represent central government in a consortium led by West Nusa Tenggara administration to purchase 14% shares in Newmont Nusa Tenggara (NNT) for US$493.64 million. 

West Nusa Tenggara administration and its partner PT Multicapital (JV between Bakrie Group and PT Bumi Resources/BUMI) Tbk will pay US$391 million for 10% shares in NNT. Meanwhile, Pukuafu is the owner of 20% shares in NNT.NNT's Batu Hijau is one of the most profitable copper-gold mines in the world.

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Trenggalek KP converted to IUP

Arc Exploration Ltd told ASX this morning that the conversion of the Trenggalek KP to a Mining Business Licence (IUP) has been completed in accordance with the new Indonesian Mining Law.

The Exploration IUP, covering the original KP area of 30,044 hectares, has been signed by the Regent of Trenggalek and is valid for 4 years. This conversion to the new IUP title is in accordance with the Indonesian Mining Law, promulgated on 12 January 2009, which requires the conversion of all pre-existing tenements.

The Company recently announced that it has entered into a strategic alliance with a leading drilling contractor in Indonesia to undertake a 5,000-m diamond drilling program on the Trenggalek Project at its own cost in exchange for shares and options in ARX. Preparations for this drilling are on track to commence early in 2010.

The primary targets of the drilling program are multiple prospects containing epithermal gold-silver-bearing quartz veins, high-level hydrothermal breccias and silica cappings having geological settings and mineralization characteristics analogous to known high-grade gold deposits found along Indonesia’s highly prospective magmatic arcs (Eg. Gosowong, Pongkor). Collectively, these multiple prospects represent a series of mineralized epithermal systems with potential to host a major new gold district.

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East Asia Minerals encounters gold at Miwah

Toronto-listed East Asia Minerals Corporation reported that assays have been received for an additional diamond drill hole at its flagship Miwah gold project in Aceh province.

"The results continue to support the interpretation of shallow out-flowed, laterally extensive gold mineralization controlled by higher-grade feeder structures that cut through the 1.2 Km long Miwah Gold Zone. Drill hole EMD003 encountered 2.25 g/t gold over 142.9 meters, including 4.31 g/t gold over 51 meters.

EMD003 was drilled approximately 200 metres east of the currently mapped western end of the Main Miwah Gold Zone, and positioned from the same drill pad as EMD001/002 with a northwest azimuth (305 degrees) and 47 degree dip. Gold mineralization was encountered from 9.1 to 152.0 metres downhole depth, with 4.31 g/t gold from 11.0 to 62.0 metres. 

The mineralization is open and interpreted to be contiguous to surface where rock sawn samples including 4.25 g/t gold over 27 metres were encountered; and is open to depth based on historic drill results from holes collared to the south and 60 metres lower in elevation. In addition the mineralization remains open in all directions. To the south EAS' hole EMD002 encountered 1.71 g/t gold over 158.0 metres, including 3.29 g/t gold over 66.0 metres, and to the southeast EMD001 encountered 1.97 g/t gold over 57.1 metres, including 2.78 g/t gold over 38.3 metres.

The Miwah Gold Prospect was partially defined by approximately 3,000 metres of drilling in eleven holes by a previous explorer in 1997. All holes drilled during this program intersected significant alteration and mineralization with intercepts including 71 metres of 1.4 g/t gold and 58 metres of 1.1 g/t gold. The previous explorer suggested potential for 100 Mt at 1.1 to 1.2 g/t gold, however a review of the historical data indicates that early drilling was parallel to higher grade (greater than 5 g/t gold) structures at surface. Hence, in addition to greater mineralized tonnage, significantly higher overall grades are anticipated from better geological understanding, results of the Company's detailed sampling, and properly oriented drill holes.

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