20th Jun 2006 07:01
Avocet Mining PLC20 June 2006 Avocet Mining PLC 20 June 2006 MORE POSITIVE DRILL RESULTS CONFIRM RESOURCE POTENTIAL AT OSELA IN THE BAKAN DISTRICT, INDONESIA Avocet Mining PLC ("Avocet" or "the Company"), the Central and South East Asiangold production and exploration company, is pleased to announce continuedexploration success from first-phase resource-definition drilling at Osela. Thisis the second advanced prospect in the Bakan District in the Company's 80% ownedMongondow Contract of Work ("CoW"), the other being the Durian prospect. TheBakan District is approximately 25km west of the Company's North Lanut miningoperation and is the main new initiative in the CoW. The results of drilling in the Bakan District have the potential to add over500,000 ounces of gold to the Company's resource base, which is above theinitial expectations announced by of the Company last year. Additionally, theBakan District has the potential for a significantly larger resource than thisbeing discovered on account of additional mineralisation already identified inthe Camp and Main Ridge areas (see press release of 11 July 2005). Avocet reported significant intercepts from resource drilling at Durian on 29March 2006 as a follow-up to the results of scout drilling reported on 11 Julyand 16 November 2005. More recently, the Company has completed a 35-hole (3,400metres) resource-definition diamond drilling programme at Osela, approximately2,000 metres northeast of Durian. This programme, drilled on 50-metre centres,has confirmed oxidised, high-sulphidation epithermal mineralisation over astrike length of 1,000 metres. The zone consists of high-grade mineralisation atNorth Osela, which is developed over a minimum strike length of 400 metres,width of 25-100 metres and depth of up to 100 metres from surface. South Oselais lower-grade, but includes a near-surface, supergene gold zone covering anarea of 300m by 100m with a thickness of 6-20 metres. Drilling in the areabetween the North and South zones has intersected a silica-alunite alteration,suggesting that the two are co-joined, though a slower than anticipatedlaboratory turnaround has delayed processing of drill core samples from thislink zone. The drilling results discovered significant intercepts from the majority of theOsela drilling programme (Table 1). These include 41m @ 2.31 g/t Au (incl. 4m @9.24 g/t Au), 54m at 2.58 g/t Au (incl. 4m @ 21.2 g/t Au), 50m at 2.79 g/t Au,56m at 2.13 g/t Au, 54m @ 2.58 g/t Au (incl. 4m @ 28.7 g/t Au) and 30m @ 3.16g/t Au (incl. 12m @ 6.01 g/t Au). The style of mineralisation at Osela is similar to that at Durian and theCompany's Riska deposit, currently being mined at North Lanut. The high gradeintercepts at North Osela are associated with a near surfacehalloysite-kaolinite alteration (after alunite) and chalcedonic silica-sulphideat depth. The former is due to supergene enrichment while the latter is hypogenemineralisation in the form of veins and replacement alteration. Goldmineralisation in both North and South Osela are broadly distributed in NNE-SSWto NE-SW trending structures. The occurrence of near-surface ore zones in bothNorth and South Osela will have a positive impact on the economics of thepotential resources. Osela, like the Durian deposit, is situated on a ridge,which further minimises the potential waste to ore stripping ratios. Metallurgical test work is underway to confirm preliminary results that show theore is amenable to the low cost dump leaching process employed at North Lanut.Drilling rigs are currently collecting additional sample for comprehensivemetallurgical test work, including coarse particle column leach tests, and willcommence infill reserve drilling shortly. Formal grade modelling is underway with the conversion of the resource to theindicated and inferred category during July 2006, followed by feasibility workto construct a new mine expected to commence production by 2008. All references to resources and exploration results have been approved forrelease by Mr Peter Flindell, BSc (Hons) MAusIMM, Chief Geologist for Avocet,who has more than 20 years experience in the field of activity concerned and isa Competent Person as defined by the JORC Code (2004). He has consented to theinclusion of the material in the form and context in which it appears. John Catchpole, Chief Executive Officer, commented: "These drill results from Osela, combined with those from Durian that weannounced in March, indicate that the oxidised portion of the orebody may bemore extensive than we had first thought from the initial phase of drilling. Weremain confident that the Bakan District has the potential to host at least500,000 ounces and possibly much more."________________________________________________________________________________ For further information please contact: Avocet Mining PLC Buchanan CommunicationsJohn Catchpole (Chief Executive) Bobby Morse, DirectorJonathan Henry (Finance Director) Ben Willey, Associate Director020 7907 9000 Tel: 020 7466 5000 www.avocet.co.uk www.buchanan.uk.com Notes to Editors Avocet is a mining company listed on the AIM market of the London StockExchange. The Company's principal activities are gold mining and exploration inMalaysia (as 100% owner of the Penjom mine, the country's largest goldproducer), Tajikistan (as 75% owner and operator of ZGC, Tajikistan's principalgold mine), and Indonesia (as 80% owner of the North Lanut gold mine in NorthSulawesi). The Company has a number of advanced mining and exploration projectsin Asia and owns 26% of Dynasty Gold Corporation, a Canadian listed explorationcompany active in Western China. Table 1 Hole East North RL Azimuth Dip Depth From To Interval Grade Comments GTID (m) (m) (m) (degrees) (degrees) (m) (m) (m) (m) (g/t Au)OSD064 646610 63880 690 270 -55 70.7 1.0 22.0 21.0 1.98 incl. 4m @ 7.36 g/t Au from 6m 41.6 OSD065 646635 63880 690 90 -55 49.7 6.0 15.0 9.0 4.28 incl. 6m @ 6.10 g/t Au from 9m 38.5 OSD068 646600 63930 689 270 -55 72.2 10.0 22.0 12.0 1.12 13.4 OSD069 646912 64680 784 90 -55 85 8.0 49.0 41.0 2.31 incl. 4m @ 9.24 g/t Au from 17m; 94.7 and 2m @ 12.7 g/t Au from 33m OSD070 646860 64630 780 90 -55 139.7 0.0 54.0 54.0 2.58 incl. 4m @ 21.2 g/t Au from 5m; 139.3 and 6m @ 2.04 g/t Au from 15m OSD071 646936 64680 785 90 -55 89.8 14.0 43.0 29.0 0.91 26.4 49.0 61.0 12.0 3.27 incl. 4m @ 8.34 g/t Au from 55m 39.2 OSD073 646932 64630 781 90 -75 61.5 0.0 50.0 50.0 2.79 incl. 19m @ 3.36 g/t Au from 3m; 139.5 and 6m @ 8.64 g/t Au from 26m OSD074 646838 64580 775 270 -65 130.1 3.0 35.0 32.0 1.62 incl. 6m @ 5.02 g/t Au from 5m 51.8 41.0 72.0 31.0 1.01 31.3 OSD075 646920 64580 780 270 -55 126.3 0.0 28.0 28.0 1.89 incl. 6m @ 4.37 g/t Aufrom 4m 52.9 33.0 68.0 35.0 1.20 42.0 114.0 126.3 12.3 1.16 incl. 4m @ 2.64 g/t Au from 114m 14.3 OSD076 646920 64580 780 315 -55 124 0.0 56.0 56.0 2.13 incl. 26m @ 3.23 g/t Au from 8m 119.3 60.0 78.0 18.0 0.63 11.3 82.0 102.0 20.0 0.66 13.2 OSD077 646815 64539 787 270 -50 198 8.0 62.0 54.0 2.58 incl. 4m @ 28.7 g/t Au from 10m 139.3 88.0 95.0 7.0 4.58 incl. 4m @ 7.38 g/t Au from 88m 32.1 98.0 104.0 6.0 1.99 11.9 137.0 149.0 12.0 1.06 12.7 OSD078 647011 64854 787 90 -55 138.8 34.0 64.0 30.0 3.16 incl. 12m @ 6.01g/t Au from 40m; 94.8 and 2m @ 5.57 g/t Au from 60m OSD080 646925 64732 782 90 -60 113.2 3.0 22.0 19.0 0.54 10.3 42.0 64.0 22.0 0.74 16.3 OSD083 646753 64292 768 270 -55 130.8 13.0 21.0 8.0 2.09 incl. 2m @ 6.86 g/t Au from 13m 16.7 59.0 73.0 14.0 1.30 incl. 2m @ 5.05 g/t Au from 65m 18.2 OSD089 646650 64250 748 90 -58 94.6 12.0 22.0 10.0 0.97 incl. 2m @ 2.61 g/t Au from 16m 9.7 OSD092 646591 64000 701 270 -55 65 9.0 19.0 10.0 0.93 incl. 2m @ 2.82 g/t Au from 15m 9.3 Note: Individual gold assays have a top cut of 100 g/t Au for intercept calculations. All holes are drilled from surface using conventional triple-tube diamond drilling techniques. Core recoveries exceed 93% for all mineralised intervals reported. Holes 067 and 098 are drilled at Durian Assays for holes 094, 095, 096 and 100 are awaited For a full version of this announcement including maps and graphics, please goto the Company's website at www.avocet.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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