The signing of a memorandum of understanding to acquire 112,000 hectares in West Kalimantan marks the fourth property acquisition for Pacific Amber Resources (VSE) in Indonesia.
Under the agreement with state-owned PT Aneka Tambang, the junior can acquire a 70% interest in the land package, with the right to purchase an additional 10%. In return, it must pay US$1.2 million over two years and spend at least US$500,000 during the first year.
The property was explored in the late 1980s by an Australian company which identified 22 gold-mercury anomalies over a 60-km-long corridor. The area is underlain by volcanics and sediments, which are intruded by stocks of Sintang intrusives.
Trenching results from three of the most promising areas include 36 metres of 2.38 grams gold per tonne at Sapit-Setul, 34 metres of 2.28 grams at Semulubuk and 52 metres of 1.53 grams at Lematak.
Limited drilling in the Sapit-Setul area intersected 13.5 metres of 1 gram, 10.5 metres of 1.52 grams and 28 metres of 2.07 grams.
Pacific Amber is evaluating the geological data from the previous work in preparation for a field program.
The company has 8.5 million shares outstanding and working capital of $1.4 million.
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