Partners Chase Resources (CQS-T) and Delta Mining (DTG-V) are exploring the Cikondang gold project in West Java, with a view to bringing the former producer back into production.
The companies (which plan to merge) are equal partners in the project, with a state-owned mining company retaining a 22.5% interest.
Cikondang was first operated by Dutch Colonials and later, during the Second World War, worked by the Japanese. In the early 1990s, a previous operator spent $10 million on drilling and underground development. However, because of financing problems, production could not proceed.
Based on 63 drill holes and 2,500 metres of underground development, proven and probable reserves are reported to be 430,000 tonnes grading 13.4 grams gold per tonne plus 3.1% zinc, over an average true thickness of 2.3 metres. The project also hosts an additional 300,000 tonnes of 13.1 grams gold, inferred from drilling.
Cikondang is a classic epithermal, gold-bearing vein system hosted by andesitic agglomerates and lavas.
The drill program is aimed at expanding reserves beyond the proven blocks in the Jurasan No. 1 vein. This will be followed by dewatering of underground workings and further underground exploration and development.
Exploration drilling will also target extensions of the Jurasan veins, as well as other adjacent veins.
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