VANCOUVER, Aug. 24, 2012 /CNW/ - Reliance Resources Limited (the "Company" or "Reliance") (TSX:RI) is pleased to provide an update on its exploration activities at its Kapa Kapa Gold/Silver Prospect on Halmahera Island, Indonesia. Reliance has more than 44,000 acres of exploration ground on Halmahera, and the Company is the second-largest holder of exploration licences on the island next to Newcrest Mining Limited (ASX:NCM).
Reliance has been undertaking an extensive surface exploration program at Kapa Kapa. The Company's sampling programs currently underway in Halmahera are utilizing a handheld XRF instrument in the field to assist with understand geology and controls to mineralisation. The XRF instrument is not a substitute for traditional laboratory analysis methods but is used as a screening tool for selecting samples for laboratory analysis*. Recent rock-chip sampling from the northern extension of the Akelamo prospect has returned high-grade silver assay values from 3 samples submitted for laboratory analysis. Three samples were assayed and the results are: 985 g/t Ag, 822 g/t Ag and 374 g/t Ag with anomalous base metal values and gold (see table 1).
| Sample No. |
Ag ppm |
Au ppm |
Cu ppm |
Pb ppm |
Zn ppm |
Sb ppm |
As ppm |
| RF01028 | 985 | 0.021 | 453 | 1300 | 606 | <5 | <5 |
| RC01029 | 374 | 0.037 | 226 | 1190 | 207 | <5 | 5 |
| RF01030 | 822 | 0.058 | 316 | 771 | 391 | <5 | 8 |
Table 1
Recent work at Kapa Kapa focussed on the Akelamo high-grade silver prospect. Exploration has resulted in the discovery of a one-kilometre-long NW-trending mineralised corridor associated with major, deep crustal transfer faults. The faults are associated with the Tiabo Lineament, which passes through Reliance's Roko concession (Figure 1). The Tiabo Lineament is an important regional geological feature and is associated with numerous occurrences of gold and silver mineralisation. The major Gosowong-Kencana gold mining camp is interpreted by the Company's structural geologists to be associated with another deep crustal lineament that also parallels the Tiabo Lineament.
The one-kilometre Akelamo mineralised corridor is host to igneous intrusions, multi-phase hydrothermal alterations, and high-level epithermal quartz-vein-hosted silver and gold mineralisation. Reliance has previously reported high-grade silver values from rock chip samples in the Akelamo River valley including 2,920 g/t Ag and from rock channel sampling of 1.2m @ 1,490 g/t Ag. Reconnaissance mapping to the south and north of Akelamo River has encountered intense hydrothermal alteration with associated epithermal quartz veins and secondary copper mineralisation (malachite) with a highest value of 1.6% Cu (Figure 2).
Detailed mapping has now defined a 600-metre-long zone within the Akelamo corridor containing strong hydrothermal alteration with associated multiple chalcedonic quartz veins and strongly siliceous hydrothermal breccias trending northwest from Akelamo River (Figure 2).
A soil sampling program is currently being undertaken across the Akelamo prospect and this will be extended to the north and south to cover possible extensions to the zone. Further exploration such as ground geophysics (resistivity, IP, magnetics) is planned across the main alteration zones at Akelamo. This will assist with better defining zones of silicification/epithermal quartz veining, and will also provide a three-dimensional view of the mineralising system to best target with drilling.
Reliance Resources CEO Gary Lewis said: "The assay results from these rock grab samples are very encouraging, and they confirm that Kapa Kapa is a highly prospective project for Reliance. We have been undertaking an extensive surface exploration program for a number of months and the results from this work program confirm that Kapa Kapa is part of a very large epithermal system. As well as the soil sampling program we will very shortly commence an IP/resistivity survey that will help us to better define drill targets."
Mr Lewis continued: "Reliance's management team is now focused on fast-tracking its exploration activities in Indonesia and is drawing on the strong partnership it has established with ASX-listed Robust Resources (ASX:ROL). With Robust Resources recently becoming a shareholder in Reliance, we have the opportunity to draw on that company's in-country expertise and strategic partnerships. And we are confident these relationships will deliver significant value to Reliance over the longer term."
Exploration activities are also continuing at the company's Tanoyan Gold project in Sulawesi, Indonesia, which currently has a NI 43-101 inferred mineral Resource of 208,000 ounces of gold (4.58mt at 1.41 g/t Au) at 0.5 g/t Au cut-off grade, announced on March 19, 2012.
"Tanoyan is Reliance's primary focus at present, as it has the greatest prospect of near-term to cash flows," Mr Lewis continued. "We expect to build on the mineral resource as our diamond drilling program progresses. We look forward to updating shareholders more regularly on our corporate and exploration activities. Reliance's management team is very committed to the growth and development of the Company."
*Rock samples are collected and initially logged at Akelamo Base Camp at the project area. Samples are then securely transported to Reliance's Exploration Office in Tobelo, North Halmahera. Archival samples are retained, as a reference, in the secure Tobelo office facility. All QC samples are introduced before the bagged samples are sent by courier to PT Intertek Laboratory's sample preparation facility in Manado. Prepared samples are then couriered by PT Intertek to their analytical facility in Jakarta for analyses.
Gold is fire assayed using a 50.0 gram aliquot sample with an AA finish. Multi-element analysis is by Four Acid Digestion using an Induced Coupled Plasma (ICP) finish.
About Reliance Resources Limited
Reliance Resources 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.
The Company is active on four of its five Indonesian gold projects; currently drilling on the Tanoyan Gold Project and conducting surface exploration programs on the Palopo Gold Project, the Kapa Kapa Gold Project and the Roko Gold Project. All of the projects have easy access via paved and/or gravel roads and regional infrastructure is good.
The company's most advanced project is the Tanoyan Reliance's Tanoyan Gold project in Sulawesi, Indonesia, which currently has a NI 43-101 inferred mineral Resource of 208,000 ounces of gold (4.58mt at 1.41 g/t Au) as at March 2012.
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.
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.
Figure 1: Northern Halmahera showing location of Reliance Resource's tenements
(http://files.newswire.ca/1117/RI_Fig1.pdf)
Figure 2: Plan view of Akelamo Prospect showing mapped 600m zone of hydrothermal alteration, epithermal quartz veining and sulphide mineralisation.
(http://files.newswire.ca/1117/RI_Fig2.pdf)
PDF available at: http://stream1.newswire.ca/media/2012/08/24/20120824_C9347_DOC_EN_17206.pdf
PDF available at: http://stream1.newswire.ca/media/2012/08/24/20120824_C9347_DOC_EN_17207.pdf
SOURCE: Reliance Resources Ltd.
Gary Lewis, Chairman & CEO, Reliance Resources Limited: +61 2 8259 4799
Adam Holdsworth, DGI: 212-825-3210
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