When Bre-X Minerals (ASE) began exploring for gold in Indonesia several years ago, it hoped to find deposits with multi-million-ounce potential. Today, that aspiration is being realized at the company’s Busang gold project in East Kalimantan.
Based on assays and visual results from recent work, the junior is confident a resource in the range of 6-8 million oz., in various categories, will be achieved by November.
Bre-X, a 24%-owned affiliate of Bresea Resources (ME), recently reported drill-indicated and inferred reserves of 2.4 million oz. in the Central zone. This potentially open-pit resource is expected to increase to 3 million oz. by October.
The company is in the midst of a third phase of drilling on the Central and Southeast zones.
To date, 56 holes totalling 32,554 ft. have tested the Central.
Bre-X is particularly encouraged by drill results from the Southeast zone, where eight holes totalling 7,314 ft. have been drilled.
Results are in hand for several of these holes, which intersected near-surface mineralization.
The first hole returned several mineralized intercepts, including 10 ft. of 0.12 oz. gold per ton; 33 ft. of 0.07 oz; 13 ft. of 0.10 oz.; and 695 ft. of 0.09 oz. Hole 3 returned 59 ft. of 0.19 oz. and 407 ft. of 0.12 oz., while hole 24 returned an impressive 364-ft. interval grading 0.14 oz.
Cyanide extraction analysis was used on core from holes 1 and 24, whereas fire assay analysis was applied to core from hole 3.
Two additional drill rigs are at work on the Southeast zone.