- Rock grab samples assay up to 2,920 g/t Ag (85.1 ounces silver per ton)
- Continued confirmation of bonanza-grade silver
- Mineralized zone traced over 1 Km strike; remains open
VANCOUVER, March 14, 2012 /CNW/ - Reliance Resources Limited (the Company) (TSX:RI) is pleased to update exploration activities from the ongoing field program at the Kapa Kapa gold and silver project, located on, Halmahera Island, Indonesia.
Current exploration is focussing on hydrothermally altered rocks and precious metal mineralisation within a target zone; so far exceeding 1 Km strike length and up to 200 metres width.
Mapping and rock chip sampling is continuing to define and extend the north-north-west trending zone. The company regards the Akelamo prospect to be underexplored due to the presence of an extensive blanket of geologically recent volcanic ash which largely covers underlying mineralised bedrock. Erosion has removed this ash layer in isolated places allowing inliers of bedrock to be exposed. Epithermal veining seen in Akelamo River occurs within one such inlier of exposed bedrock.
Grab sampling of outcrops within the Akelamo River valley (Figure 2) has continued to return high silver values associated with epithermal quartz veining and hydrothermal breccias, including;
- RC00978 - 1,080 g/t Ag
- RC00989 - 344 g/t Ag
- RC00996 - 307 g/t Ag
- RC00988 - 392 g/t Ag
- RC01102 - 2,920 g/t Ag
The highest silver value from the company's recent sampling (RC01102 - 2,920 g/t Ag) is from an epithermal quartz vein cutting across a hydrothermal breccia along the banks of a tributary of Akelamo River. This sample also has a significant base metal association - 0.2%Cu, 1.7% Zn and 1.0%Pb.
This zone was further tested with a 1.2 meter channel sample using a continuous chip sampling method and returned:
CH01006 - 1.2m @ 1,490 g/t Ag, 1.7%Zn, 800ppm Pb and 570ppm Cu
Sampling by the company shows the zone of mineralised and altered andesitic volcanics is approximately 200 meters in width along the Akelamo River valley. The zone is open to the north and the south. Preliminary reconnaissance work to the south of Akelamo River has encountered altered volcanic bedrock with quartz veining and secondary copper staining (malachite) 600m south of Akelamo River within the NNW-trending zone of interest (Figure 1).
A grab sample of material derived from this zone assayed:
- RF01105 - 0.7% Cu, 0.1 g/t Au, 12 g/t Ag
Historical channel sampling from the Akalemo prospect (Figure 1) returned bonanza silver along with anomalous gold; including:
- 4m @ 1,800 g/t Ag (and 0.5 g/t Au)
- 4m @ 466 g/t Ag
- 5m @ 0.9 g/t Au
A historic rock float sample assayed 15,800 g/t Ag (460 ounces of silver per ton) and 3.0 g/t Au. Preliminary sampling by the company previously reported high silver values up to 992 g/t Ag from the initial reconnaissance sampling and mapping program. These values plus the new values demonstrate the potential this prospect has for truly bonanza-grade silver mineralisation. Surface exploration is continuing in preparation for the upcoming drilling program.
Halmahera is host to Newcrest Mining Limited's Gosowong Mine, one of the highest-grade underground gold mines currently operating anywhere in the world (28 g/t gold average). Reliance Resources has the second largest landholding for gold exploration on Halmahera after Newcrest Mining.
Currently, the company is active on three of its five Indonesian gold projects; preparations for Phase 2 drilling on the Tanoyan Gold Project are underway, surface exploration programs ongoing at the Kapa Kapa Gold Project and the Roko Gold Project. All the company's projects have easy access via paved and/or gravel roads and the regional infrastructure is good.
Rock samples are collected and initially logged at Akelamo Base Camp at the project area. Samples are then securely transported to Reliance Resources' 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. The Company's QA/QC program now includes the regular insertion of blanks and certified assay standards into the sample shipments. Locally-sourced blank samples are inserted in every assay batch of 20 samples. Commercial standards are inserted in every assay batch of 25 samples. Regular monitoring of these QC samples is a critical part of Reliance Resources' QA/QC protocols.
This press release has been reviewed and approved by Mr. John Levings, B.Sc., FAusIMM, director of Reliance Resources Ltd. 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.
Fig 1 - Akelamo Prospect - location of NNW-trending zone of mineralised and altered volcanics.
Fig 2 - Akelamo Prospect - sample locations (grab samples are selective by nature and are unlikely to represent future average grades on the property)
For further information:
Media Information, contact:
Scott Emerson, President
Investor Information, contact:
Mike Kordysz, Investor