- Phase 2 drilling totals 10 holes and 1,530.8 metres
- Deepest intersection at Tanoyan affirms the trend for increased gold grade with depth of 12.6 metres at 2.7 g/t Au from 179.1m (TND097)
- Part of Phase 2, 10,000-metre drilling program to increase 43-101 mineral resource estimate
VANCOUVER, Sept. 13, 2012 /CNW/ - Reliance Resources Ltd. (the "Company") (TSX:RI) is pleased to announce the completion of 10 holes and 1,530.8m of diamond drilling on its 75 percent-owned Tanoyan Gold Project in Indonesia. This drilling is part of an ongoing, 10,000-metre Phase 2 program designed to further assess the resource potential of the large 6Km epithermal vein system at Tanoyan. The most recent resource estimate was the independent NI 43-101 Inferred Mineral Resource of 208,000 ounces of gold released on the 19th of March, 2012.
Table 1 lists the gold intersections from the Phase 2 drilling which includes three holes that were previously released (17th May and 31st May, 2012), and the locations of the holes in relation to the mapped veins and previous drill collars is shown in Fig 1.
Highlights of the recent results include those from TND097 which achieved the deepest gold intersection so far obtained on the Tanoyan property:
- TND 097: 12.6 metres at 2.7 g/t Au from 179.1m
This intersection is important as it confirms that the gold mineralising system continues strongly to depth in the northern part of the Sondana Vein.
The drilling results confirm the indications from previous work, that the upper sections of the North Sondana vein is relatively low in gold (e.g. TND 096 intersected only low gold values in the vein). The vertical cross-section in fig. 2 shows recent drill results and is an example of the deeper enrichment, near-surface-depletion zonation of the gold mineralisation often encountered in Sondana North.
The recent drilling also emphasised the importance of post-mineral cross-cutting faults that contributed to some of the misses in recent holes. For example, TND093 did not intersect the Sondana Vein in the predicted position. At this position the vein is now interpreted to have been faulted off approximately 40 metres north.
The Sondana Vein has been traced along strike for at least a further 1.1 km from the northernmost hole drilled by Reliance Resources (TND081). This northern extension has only been tested by two shallow historic drillholes (see fig 3). In keeping with the pattern encountered at Sondana North, below-average gold values were encountered in shallow intersections of the vein (e.g. TND 039: 7.3m @ 1.0 g/t Au). However, the mineralisation model being developed for Tanoyan suggests future Phase 2 drilling will encounter stronger mineralisation at intermediate and deep levels.
Reliance Resources CEO Mr. Gary Lewis said: "Tanoyan is our most advanced project and the continued progress on the Phase 2 drilling is important in our quest to turn the project into a producing asset. These recent results have advanced our understanding of the geology of the Tanoyan gold system as well as provided us with the deepest gold intersection on the property to date. Drilling will continue at Tanoyan and we look forward to updating investors as results come to hand and are interpreted by our geologists."
The Tanoyan Gold Project consists of an extensive system of auriferous quartz veins comprising four principal vein systems: Sondana, Ramai, Modupola/Talong and Lingkobungon. These veins are predominantly orientated northeast and dip steeply or moderately to the northwest or southeast. The veins are hosted by andesitic volcanic rocks and have been mapped over a combined strike length of approximately six kilometres.
The Phase 2 program aiming for a significant upgrade to the existing NI 43-101 resource by targeting extensions to drilled sections of the veins, which have been identified along strike and at depth on all vein systems. Previous drilling has primarily been tightly focused on the Sondana and Modupola veins and the current Phase 2 program will extend drilling into all target areas.
The resource model at the Sondana and Modupola veins is open at depth for most of its length, especially in the north of the Sondana vein, where significant drill intersections from Phase 1 drilling are located. The Phase 2 drilling program is designed to test at depth for extensions mineralisation that have been mapped on surface and in locations where earlier drilling has shown the mineralisation is open at depth. Infill drilling should confirm the strike continuity of vein systems and thereby improve the classification of the mineral resources.
The Company has a portfolio of five mineral tenements covering 68,000 acres on the islands of Sulawesi and Halmahera in East Indonesia. The projects offer both exploration potential and an existing resource base. All five projects are adjacent to or along strike from operating gold mines or identified gold resources with similar geology and structural feature. Importantly, all projects have been converted to IUP tenements as required under the new Indonesian Mining Act (2009).
The Company is active on three of its five Indonesian gold projects; currently drilling on the Tanoyan Gold Project and conducting surface exploration programs on the Kapa Kapa Gold Project and the Roko Gold Projects. All of the projects have easy access via paved and/or gravel roads and regional infrastructure is good.
This press release has been reviewed and approved by Mr. John Levings, B.Sc., FAusIMM, 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 forward-looking statement.
Table 1: Tanoyan Project Drilling Results for 2012 (*including previously released results)
|DH No.||Zone 51 N UTM|| Depth
|Hole abandoned due to ground collapse as DH intersected Sondana Vein - to be redrilled|
|TND093||639121||66898||149.6||Sondana Cent||No significant assays|
|Sondana Vein not intersected due to offset by late-stage fault|
|TND094||639056||66812||132.3||Sondana Sth||No significant assays|
|TND095||638927||66643||189.5||Sondana Sth||Awaiting assay results|
(1) Not true width but drilled width.
SOURCE: Reliance Resources Ltd.