With the third phase of drilling at their Busang gold project in Indonesia almost complete, Bre-X Minerals (ASE) and parent company Bresea Resources (ME) are confident reserves will exceed expectations.
To date, 40 holes, or about 6,300 metres, have been drilled in the Central zone, one of two structures being explored. Multiple intersections were reported from two infill holes, including 4.38 grams gold per tonne over 37.5 metres and 3.77 grams over 69.3 metres.
Two other holes, drilled to test the strike-length extension of the zone, cut 3.75 grams over 35 metres and 2.16 grams over 55.5 metres.
Meanwhile, at the Southeast zone, one hole encountered 13
mineralized intercepts over a 233-metre-long interval. The
intercepts ranged in thickness from 2 to 8 metres, with grades varying between 1.1 and 4.3 grams.
Three rigs will be operating by late May, one of which will test the possible extension of the Central zone while the other two drill the Southeast zone on 250-metre line spacings.
Bre-X anticipates reserves in both zones will total between 6 and 8 million oz. (all categories). An updated calculation is
expected as early as June.
Elsewhere in Indonesia, Bre-X has terminated a joint venture agreement with Aurora Gold concerning the Sangihe gold project.
As a result of the dissolution, Bre-X and an Indonesian partner have applied for a contract of work covering two large blocks of ground on the southern half of Sangihe Island and the northern half of neighboring Karakelong Island.
The two blocks, covering almost 124,000 hectares, are underlain by a mature volcanic arc. A number of previously explored
porphyritic intrusives, ranging in size up to 300 million tonnes with grades around 0.5% copper and 0.6 grams gold per tonne, are hosted in the volcanic arc.
Last winter Bre-X drilled eight drill holes, totalling 1,375 metres, in a program aimed at testing mineralized, linear
structures, as well as two porphyritic intrusives in the Taware Valley and Red Hills areas.
Two holes drilled on the northeastern edge of the Red Hill
porphyry appear to have cut the low-grade envelope of the
porphyry system. Two of the better intersections from these two holes assayed 0.29% copper and 0.5 gram gold over 106 metres, plus 0.31% copper and 0.75 gram gold over 120 metres.
Currently, Bre-X is completing geological mapping and a 1-km-long side cut on the flank of the porphyry. This work is about 50% complete.
In order to finance exploration on these and two other Indonesian properties, Bre-X plans to issue 2 million common shares through a private placement, with shares priced at $3.75 each. The
placement is scheduled to close May 25.