VANCOUVER, May 9 /CNW/ - Golden Peaks Resources Ltd. (TSX: GL) has announced that is has completed the acquisition of Reliance
Resources Ltd. as part of a strategic shift in focus to Indonesia. The
acquisition provides Golden Peaks with a diversified portfolio of five
highly prospective gold projects covering 30,000 hectares in eastern
Indonesia and a foothold in a region that hosts some of the world's
largest gold projects. All of the projects are within close proximity
to operating gold mines or defined resources within similar geological
Golden Peaks' Indonesian portfolio comprises three exploration projects
on Sulawesi Island, and two on Halmahera Island. Golden Peaks now
controls the second largest land exploration package on Halmahera
behind Newcrest Mining, which operates the Gosowong Mine that has a
reported resource of 5.1 million ounces of gold to date. The five
projects, with working interest of 75% to 90%, are valid licenses, as
required under current Indonesian mining regulations.
"The acquisition of these properties provides Golden Peaks with a
diversified portfolio of five highly prospective gold projects,
including two at advanced stages of exploration," commented Scott
Emerson, President of Golden Peaks. "Reliance's board and exploration
team has a track record of success in Indonesia and they have done an
excellent job in advancing these projects. By maintaining the
continuity of this team, we can leverage the historical work completed
by Reliance in pursuing our goal of building significant gold resources
in Indonesia. In light of the completion of the acquisition of reliance
and the Company's current focus its newly acquired Indonesian
properties the Company has determined to record an impairment charge on
its La Fortuna property".
Golden Peaks aims to be part of the next wave of mining investment in
Indonesia. Our prospects are focused in eastern Indonesia, a region
that has seen most the country's mining activity in the past 15 years.
Since 1995, five of the six metal mines to commence production are
located in this region of Indonesia: Mesel (gold), Lanut (gold),
Gosowong (gold),Lerokis (gold/copper)and BatuHijau (copper/gold). Two
other gold projects, Bakan and Toka Tindung, are in development stage
with production planned to commence within the next 12 months.
Of our five gold projects, three have been drill tested with one,
Tanoyan, having undergone two phases of diamond drilling (44 drill
holes). The most recent drilling at Tanoyan resulted in an initial NI
43-101 inferred resource of 2.22 million tonnes grading 1.3 g/t gold
(91,100 ounces contained). A previous resource estimate prepared in
2009, which is not compliant with NI 43-101 but compliant with
Australian Joint Ore Reserves Committee (JORC) requirements, placed the
resource at 270,500 ounces of gold.
The Tanoyan, Anggrek and Palopo projects have defined targets and the
potential for near-term resource development and production. The
projects cover an aggregate of approximately 19,650 hectares on
Sulawesi Island, a province known to be gold-rich for over a century.
Exploration since the 1980s has led to the discovery of a number of
large gold deposits on the island.
Tanoyan (750 hectares; 75% interest)
Initial 43-101 resource estimate of 91,100 oz gold
Four shallow epithermal gold-bearing vein systems identified to date
Strike length traced over 2.3km
Gold mineralization at Tanoyan is located in four principal lode
systems. These are typically characterized by quartz veining, vein
breccias and silicification within an argillic alteration envelope.
Gold mineralization is typically associated with pyrite and
arsenopyrite in the lode zones.
A technical report prepared by CSA (Global) of Perth, Western Australia,
estimates an NI 43-101 compliant inferred mineral resource of
approximately of 2.2 million tonnes grading 1.3 g/t gold, 91,100
contained ounces. However, this estimate excludes two of the best three
drill intersections because of wide drill-hole spacing. Moreover, it
only extrapolated veins in strike and dip to a maximum of 100 metres
The potential also exists to discover high-grade "shoots" or "bonanza
lodes" within the main vein zones. These could increase the overall
grade of the deposit and add significantly to the total gold inventory
and enhance the project economics.
Palopo (8,096 hectares; 90% interest)
Drill intersections include 2 metres of 115 g/t gold, 2 metres of 18.3
g/t gold and 8.4 metres of 7.5 g/t gold
Strike lengths up to 500 metres with multiple quartz-sulphide veins
Mesothermal vein system located near Awak Mas deposit (1.7M oz gold)
Six main prospects have been identified on the Palopo project. On the
main Mangkaluku prospect, four zones contain multiple quartz-sulphide
veins, with individual veins having strike lengths up to 500 meters.
Drilling highlights from the Eastern and Western zones of this widely
spaced scout drilling include:
Hole MLD001: 10m at 1.1g/t gold
Hole MLD004: 6m at 3.9g/t gold
Hole MLD006: 5m at 2.5g/t gold and 11m at 2.65g/t
Hole MLD007: 12m at 3.5g/t gold
Hole MLD008: 2m at 18.0g/t gold and 4.5m at 5.7g/t gold and 9m at 3.9g/t
Hole MLD008: 6m at 3.2g/t gold
Higher grade mineralization occurs in at least two zones over a strike
length of more than 500 metres, with drill intersections from surface
to 250 - 300 metres in depth. One of the most significant intersections
is also one of the deepest, MK01 with 8.4 metres at 7.5 g/t gold from
Previous trenching outlined wide intersections of significant gold
MLT029: 18.1m @ 13.9 g/t Au and 5.4m @ 11.1 g/t Au
MLT030: 3.1m @ 8.2 g/t Au and 6.0m @ 4.7 g/t Au
MLT033: 18.0m @ 6.8 g/t Au and 6.0m @ 16.0 g/t Au
MLT039: 36.0m @ 6.8 g/t Au incl 9.0m @ 16.6 g/t Au
MLT046: 3.0m @ 39.5 g/t Au and 5.0m @ 16.1 g/t Au and 13.4m @ 10.7 g/t
Initial field exploration in 2011 indicates the presence of prospective
dilational zones within quartz veins, the significance of which have
not been recognised by previous explorers. The highest-grade drill
intersection at Mangkaluku (MLD005; 2m @ 115.0 g/t Au) is located
within one of these interpreted dilational zones.
An initial drill 5,000-metre drilling program will follow-up high-grade
intersections and provide a framework for recognizing controls of
high-grade mineralization within the lode systems.
Anggrek (900 hectares; 75% interest)
Limited exploration work (surface sampling and mapping)
Samples include 46.0 g/t gold and 10.2 g/t gold
Past exploration of Anggrek, primarily regional mapping and sampling
programs, has outlined six zones of alteration and gold mineralization.
These are hosted by quartz veins in hydrothermal breccias and fault
breccia zones which are up to 20 metres in width and can be traced up
to 1.2 kilometres along strike. Grab samples include 46.0 g/t gold from
the Maleo Zone and 10.2 g/t gold from the TongTong Zone.
Anggrek is at a preliminary stage of exploration and future work will
focus on understanding the gold-bearing mineral system with the aim of
delineating targets for follow-up drill testing.
Western Halmahera Island represents a highly prospective but relatively
under-explored island arc province with one of the highest-grade
underground gold mines, Newcrest's Gosowong, currently operating
anywhere in the world (28 g/t gold average). Golden Peaks is the second
largest landholder in western Halmahera after Newcrest Mining.
Both the Roko and KapaKapa projects are located within the island arc
terrain and contain significant evidence of gold-bearing,
epithermal-style mineralization. These early-stage exploration projects
cover approximately 17,675 hectares.
KapaKapa (5,000 hectares; 90% interest)
epithermal vein system similar to Gosowong
previous trenching intersected high gold values
3 follow up scout holes by Newcrest Mining intersected potentially
KapaKapa is located near the tip of the northern peninsula of Halmahera
Island, approximately 35 kilometres northeast of the Roko project.
Reconnaissance and geochemical sampling have outlined two areas of
anomalous gold mineralization: one consisting of epithermal gold veins
associated with intense hydrothermal alteration and hydrothermal
brecciation, the other consisting of sediment-hosted mineralization.
Previous exploration within the headwaters of Pediwang Creek and Gisi
Creek outlined a zone of hydrothermal alteration with anomalous gold
mineralization hosted by veined and brecciated volcanics and
volcaniclastics. The zone is at least 1,200 metres in length and up to
300 metres wide. The best results from chip sampling along creek
exposures and hand-dug trenches include 10 metres at 6.4 g/t gold, 16
metres at 5.1 g/t gold and 42 metres at 1.1 g/t gold.
Newcrest also drilled three scout holes, totalling 620 metres, in
late1998. Hole KKD-1 intersected 10 meters at 6.4g/t gold and 16 metres
at 5.1g/t gold. Hole KKD-2 intersected anomalous gold mineralization,
with a best assay result of 1.7m @ 0.3g/t Au from 127.0m. Hole KKD-3
intersections included 12.9 metres at 1.3g/t gold from 48.6 metres,
including 6 metres at 2.7 g/t gold.
The exploration strategy at KapaKapa will be to undertake detailed
mapping and soil sampling to better define the Pediwang Creek zone of
hydrothermal breccia/epithermal veining. This data will be used for a
drill program designed to follow-up previous scout drilling.
Roko (12,890 hectares, 82.5% interest)
Similar geological setting to Gosowong
Large epithermal system 3km in length open to south
Two zones have identified, Roko West and Roko East. Roko is a highly
prospective exploration target possessing similarities to the
geological setting to the Gosowong mine. Work to-date has only been at
the reconnaissance stage. A current work program entails detailed
mapping to define the most prospective zones of the hydrothermal
breccias to provide targets for a planned drill program.
Golden Peaks executive and board of directors was restructured following
the acquisition of Reliance Resources.
"Our new leadership team has a track record of success in Indonesia and
a proven ability to identify and develop valuable exploration assets,"
noted Gary Lewis. "Reliance's in-country team includes a senior
geologist, senior logistics officer, senior field assistant, community
relations consultant and the necessary administrative support.
Additionally, all necessary infrastructure has been set up, including
accommodation, communications and logistical support for exploration
This press release has been reviewed and approved by Mr. John Levings,
B.Sc., MAusIMM, director of Reliance Resources Limited and a Qualified
Person as defined by National Instrument 43-101, under whose direction
the exploration programs are being carried out.
The statements herein that are not historical facts are forward-looking
statements. These statements address future events and conditions and
so involve inherent risks and uncertainties, as disclosed under the
heading "Risk Factors" in the company's periodic filings with Canadian
securities regulators. Actual results could differ from those currently
projected. The Company does not assume the obligation to update any
SOURCE Golden Peaks Resources Ltd.
For further information: