The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Reliance Resources Ltd. - Drilling update: 24.9 metres at 2.8 g/t Au intersected at Tanoyan Gold Project, Sulawesi, Indonesia

Tuesday, November 13, 2012

Reliance Resources Ltd. - Drilling update: 24.9 metres at 2.8 g/t Au intersected at Tanoyan Gold Project, Sulawesi, Indonesia09:30 EST Tuesday, November 13, 2012Significant intersection in drill hole TND105: North Sondana Vein24.9 metres at 2.8 g/t Au from 95 metresIncluding 3.4 metres at 7.0 g/t Au from 104.3 metresContinues to confirm consistency of higher-grade zoneAdditional Phase 2 drilling of 9 holes and 1,271 metres completedPhase 2, 10,000 metre drilling program designed to increase the 208,000 ounce gold 43-101 mineral resource estimate continues with 2 diamond drillsFeasibility, Social and Environmental Impact Studies commencedVANCOUVER, Nov. 13, 2012 /CNW/ - Reliance Resources Ltd. (the "Company" or  "Reliance" ) (TSX: RI) is pleased to announce the completion of an additional 9 holes totalling 1,271m of diamond drilling on its 75%-owned Tanoyan Gold Project in Indonesia. To date, 19 holes totalling 2,802 metres have been completed in a planned 10,000 metre, Phase 2 program, which commenced after the publication of the  NI 43-101 report and mineral resource estimate in March 2012 (Inferred mineral resource of 208,000 ounces of Au at 1.41 g/t Au). Drilling continues utilising 2 owner-operated drill rigs.Highlights of the recent results include a wide intersection from TND105 which continues to confirm the consistency of a higher-grade and thicker gold mineralization zone, at intermediate levels of the North Sondana Block, especially between RLs 300m and 380m depth (see Figure  2).TND105: 24.9 metres at 2.8 g/t Au from 95m Including 3.4 metres at 7.0 g/t Au from 104.3mTable 1 lists the gold intersections from the Phase 2 drilling since the previous release on 3rd September 2012. The locations of the holes in relation to the mapped veins and previous drill collars is shown in Figure 1.This drilling gives important information regarding the geological controls on the mineralization within the vein system. In common with most epithermal gold vein systems, the ore-grade mineralization is localised within a number of shoots and a considerable amount of drilling is required to properly define them.At North Sondana, drilling has continued to identify a remarkably consistent zone of higher-grade mineralization between RLs 300 and 380 and there is a suggestion that this zone may plunge to the south-west, as indicated by hole TND097: 12.6M @ 2.7 g/t Au.Holes testing the vein at even deeper levels, have defined the lower limits of potentially economic mineralization in the North Sondana shoot (e.g. TND101: 10.7m @ 0.4 g/t Au and TND103: 12.2m @ 0.6 g/t Au). It must also be noted however, that technical drilling issues in both these holes, resulted in the termination of TND103 whilst still in vein, and TND101 was also not completed to it's planned depth.Detailed structural and lithological information is now being used to build a sophisticated 3D model using specialist "Leapfrog" software, which will greatly assist future drill planning and resource modelling. A perspective view from the preliminary Leapfrog model of Sondana North is shown in Figure 3.The long section in Figure 1 shows a number of planned Phase 2 drill holes, which include drilling in the almost untested further-north extensions of the Sondana vein. Success in this drilling should add substantially to mineral resources. In addition, the Company will drill further holes in the Sondana vein to better define the mineral resource, prior to exploitation.Reliance has engaged consultants to manage the preparation of a Feasibility Study and Environmental Impact Assessment Study, which are both necessary to transition the property status from exploration, to exploitation status.Reliance Resources CEO Mr. Gary Lewis said: "Reliance management is pleased with the steady progress of the drilling at Tanoyan, which is necessary to update our resource position and provide the basis for the recently commenced studies that will ascertain the feasibility of mining and treatment of the Tanoyan vein system, as well as transition the status of the property from exploration to exploitation stage. We continue to explore and define mineral resources utilising two owner-operated diamond drill rigs, which allow us to carry out very cost-effective drilling."Work is progressing well on our other Indonesian projects, including the Kapa Kapa high-grade copper-silver prospect.  We look forward to updating shareholders as results become available."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 north-east and dip steeply or moderately to the north-west or south-east.  The veins are hosted by andesitic volcanic rocks and have been mapped over a combined strike length of approximately 6 kilometres.The Phase 2 program is 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 of 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 of mineralization which have been mapped on the surface and in locations where earlier drilling has shown the zone 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 features. 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-Silver Project and the Roko Gold Project. All of the properties 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: Recent Tanoyan Project Drilling Results DH No.Zone 51 N UTMDepth (m)SONDANA BLOCKFrom (m)To (m)Interval (m)Au (g/t)EastNorthTND09863936867105156.5CENTRAL57.4059.101.700.3TND09963963967463.395NORTH48.5053.805.300.7TND10063933867133141.6CENTRAL93.60100.657.050.3TND101 639584 67517 245 NORTHIncl.232.60232.60243.30233.9510.701.350.41.2TND102 639370 67166 177 CENTRAL 71.35118.2073.75123.302.405.100.50.3TND103 639665 67583 170 NORTHIncl.158.20166.30170.40170.4012.204.100.61.0TND10463942367158115CENTRAL24.0026.002.001.4TND105  639654  67527  80              NORTH Incl.71.5095.00104.3076.00119.90107.704.5024.903.400.52.87.0                                       1270.85Figure 1: Sondana Vein showing location of DHs completed in 2012 relative to earlier drilling, surface mapping of the veins and identified cross faults(http://files.newswire.ca/1117/RelianceNov13fig1.pdf)Figure 2: Long Section of the Sondana Vein, Tanoyan Project. Shows past, recent and planned drilling. Contours are of the product of gold grade and drilled thickness of intersections(http://files.newswire.ca/1117/RelianceNov13fig2.pdf)Figure 3: 3D Leapfrog model of North Sondana Vein showing various lithological, mineralization and structural elements(http://files.newswire.ca/1117/RelianceNov13fig3.pdf)  PDF available at: http://stream1.newswire.ca/media/2012/11/13/20121113_C6893_DOC_EN_20475.pdfPDF available at: http://stream1.newswire.ca/media/2012/11/13/20121113_C6893_DOC_EN_20476.pdfPDF available at: http://stream1.newswire.ca/media/2012/11/13/20121113_C6893_DOC_EN_20477.pdfSOURCE: Reliance Resources Ltd.For further information: Media Information, contact: Gary Lewis, CEO gary.lewis@relianceresources.com.au +61 2 8259 4799 Investor Information, contact: Adam Holdsworth, DGI aholdsworth@dgicomm.com 212 825 3210