Atapa signs deal for properties in Java

After months of negotiations, Atapa Minerals (ATAP-C) and its private Indonesian partner have signed joint-Venture agreements with the Indonesian-state mining company, Aneka Tambang, for rights to the Cikidang and Cikotok gold properties on the island of Java.

Since late last year, the Toronto-based junior has been aggressively exploring the contiguous properties, but until now it was unable to hammer out a definitive deal with Aneka.

The agreement automatically gives Atapa and its minority partner a 75% interest in the Cikotok property and the right to earn up to a 70% interest in the more prospective Cikidang property.

At Cikidang, Aneka outlined a reserve of 473,000 tonnes grading 10 grams gold per tonne and 87.7 grams silver. The company has been mining this by means of adits and crosscuts.

Atapa, however, believes the area holds good potential for a bulk-Minable deposit, as only the high-grade vein is being mined. To prove its theory, late last year the junior embarked on a re-Assaying and re-logging program of all old drill core, as well as sampling all exposed bedrock in surface and underground workings (T.N.M., Dec. 2/97). Recently, the company initiated a first phase of drilling, consisting of 5,000 metres, to follow up on the results of its previous work. Currently, the program is on the tenth hole, with each hole being collared at 40-Metre spacings. Results from completed holes are still pending.

Both agreements call for Atapa to fund all exploration and development expenses. If either property is brought to the feasibility stage, Aneka can acquire an additional 10% participating interest in Cikidang and a 15% participating stake in Cikotok.

Cikotok hosts two past producers which were mined from 1940 to 1992, first by the Dutch and then by the Indonesians. During that time, the two mines are said to have surrendered a total of 7 tonnes of gold, 168 tonnes of silver, more than 3,600 tonnes of lead and 4,500 tonnes of zinc.

In total, Atapa has identified more than 20 gold showings on the two properties. The properties comprise a total area of 101,400 ha.