EXPLORATION 1997 — Mispec has high hopes for Jampang

Well-funded and with an eye towards developing bulk-minable gold deposits, Mispec Resources (MPE-M) is aggressively drilling the Jampang property in Indonesia.

The property, which lies in the western portion of the island of Java, 150 km south of Jakarta, is being explored as a joint-venture between Mispec and Hunamas Putra Interbuana, a private Indonesian company. Comprising a total area of 20,530 ha, the property is divided into two contiguous blocks: Jampang (9,805 ha) and Jampang East (10,725 ha). Mispec has a 30% interest in the former and has an option to earn up to 90%, while, on the latter, it has a 65% interest, which can be increased to 85% by spending US$1.25 million on exploration and by issuing shares.

Recently, Mispec has been concentrating on Jampang, where, last July, the company launched a US$2-million, 26,000-metre drill program to test the bulk-minable potential of the Lipi epithermal gold prospect. To date, about 11,500 metres of reverse-circulation (RC) drilling and 1,900 metres of diamond drilling have been completed, the results of which were used to calculate a preliminary, near-surface resource of 2.5 million tonnes grading 3.11 grams gold per tonne.

Previous work on the Jampang block was carried out in the 1920s, when Dutch colonizers carried out surface and small-scale underground exploration.

Although this work involved some small-scale mining, it is described by James Patterson, Mispec’s vice-president of exploration, as only survey-type in nature, with no consideration given to the stockwork systems.

“They [the Dutch] identified a quartz-vein system, drove adits at lower levels, found the vein and then drifted along it,” explains Patterson. “They concentrated their sampling just within the quartz vein and didn’t test the stockwork envelope around the vein systems.”

The Lipi prospect is a north-south-striking mineralized zone 50 metres wide and 100 metres deep, with a strike length exceeding 400 metres. It lies on the northern end of a 12-to-15-km-long, north-northeast-trending, hydrothermal argillic and advanced argillic alteration zone, with associated silicified volcanic rocks and breccia pipes. Gold mineralization is associated with two structurally controlled quartz-vein and quartz-vein stockwork systems with associated copper, lead and zinc sulphide mineralization. The zone remains open both to the north and south, as well as at depth.

Highlights from selected RC drill results include: 38 metres of 4.31 grams gold (from 44 to 82 metres), including 13 metres of 4.6 grams gold (from 69 to 82 metres); 32 metres of 5.52 grams gold (from 31 to 63 metres), including 6 metres of 18.1 grams gold (from 44 to 50 metres); 27 metres of 3.08 grams (from 30 to 57 metres), including 4 metres of 15.24 grams gold (from 33 to 37 metres); and 23 metres of 3.69 grams gold (from 65 to 88 metres), including 4 metres of 11.9 grams gold (from 79 to 83 metres). Two short diamond drill holes returned 13 metres of 17.31 grams gold (from 63 to 76 metres) and 6 metres of 5.26 grams (from 78 to 29 metres).

Mispec is also interested in recent intersections of copper mineralization in two diamond drill holes, which were drilled below the RC holes. “The copper grades suggest that we are probably getting into a porphyry-type situation,” says Patterson. “It also suggests that, if that is the case, then we are into generating tonnage quickly in a bulk-mining situation.”

Results from these two holes include: 33 metres of 0.93 gram gold and 0.60% copper (from 116 to 149 metres), of which the first 10 metres graded 1.04 grams gold and 1.92% copper, and 15 metres of 0.92 gram gold and 0.62% copper (from 178 to 193 metres), including 7 metres of 1.07 grams gold and 0.65% copper (from 181 to 188 metres). Both holes were collared within 150 metres of the southern end of the zone, with the former hole situated 40 metres north of the latter. According to Mispec, surface mapping suggests a northerly plunge to the mineralized bodies, which raises the possibility of grades and dimensions improving in that direction.

While satisfied with the current drill results, Mispec has opted not to place all its eggs in one basket. “We are aware that, 18 months ago, the guys at the Busang gold deposit [in Indonesia] were happily concentrating on the central zone and drilling off 3 million oz.,” says Patterson. “Then they decided to look elsewhere on the property, not too far away, and now they have the Southeast zone.”

Following this example, the company has conducted a regional reconnaissance sampling program over the entire Jampang block. It has also commissioned airborne electromagnetic and radiometric surveys and acquired radar satellite imagery. As a result of this work, several other potential target areas have been identified. One of these target areas is an aeromagnetic anomaly that coincides with two opposing structures — one northeast-

trending, the other northwest-trending. Five surface samples from this area returned values ranging from just under 5 grams gold to more than 17 grams.

Another area of potential is a porphyritic body that outcrops about 7 km south of Lipi. Sampling of quartz veins on the porphyry have yielded up to 11.6 grams gold, while a sample of the porphyritic matrix ran up to 11 grams.

In 1997, Mispec hopes to bring these and other targets to the drill stage as quickly as possible, Funding will come from a recently closed special warrant offering valued at $6.9 million.