- Results received from first 2 holes
- Include 5.3 metres at 4.4 g/t Au from 101.4m
- Extends Sondana vein gold mineralisation at depth with increasing grade and thickness
- 10,000 metres diamond drilling program underway
VANCOUVER, May 17, 2012 /CNW/ - Reliance Resources Ltd. (the "Company")
(TSX:RI) is pleased to announce drilling results from 2 holes into the
Sondana Vein system on the Tanoyan Gold Project, Sulawesi, Indonesia
(see Table 1). The company recently commenced drilling of its planned
10,000 Phase 2 program following the release of an updated independent
NI 43-101 report for Tanoyan (March 19, 2012), which more than doubled
the Inferred Mineral Resource to 208,000 ounces of gold.
The Tanoyan Gold Project consists 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 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, as well as along strike and at depth
on all vein systems. Drilling to date has primarily been tightly
focused on the Sondana and Modupola veins.
Assay results have been received from the first two drill holes in the
new program and include a high-grade intersection:
- TND 089: 5.3 metres at 4.4 g/t Au from 101.4m
(Figure 1). http://www.relianceresources.com/i/maps/Sondana-Vein-Drill-Section-TND089.jpg
TND 088 was drilled in the southern portion of the Tanoyan system and
intersected 2 zones of quartz vein containing gold mineralisation over
narrow widths. Details of the intersections are to be found in Table 1.
This section of the Sondana vein has only been sparsely drilled and
further structural analysis and follow up drilling will be required to
locate thicker and higher grade zones.
The resource model at the Sondana and Modupola veins is open at depth
for most of its length and along strike to the north of the Sondana
vein, where significant drill intersections from Phase 1 drilling are
located. The Phase 2 program is designed to extend mineralisation along
strike and laterally with further drilling. Infill drilling should
confirm the strike continuity of vein systems and thereby improve the
classification of the mineral resources.
Reliance president Scott Emerson stated "We are pleased to be drilling
again at Tanoyan. The first assay results are in and they include an
excellent result from TND 089. It is encouraging to see the gold grades
continuing to show an increase in grade with depth of drilling. These
results are in line with Reliance's goal to prove up relatively shallow
resource ounces, within 150 metres of surface, which could conceptually
support a low-cost open cut mine."
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 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/Silver Project and the Roko Gold Project. 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.
Table 1: Tanoyan Project Drilling Results
| DH No. | Vein | From (m) |
To (m) |
Interval (m) |
Au (g/t) |
| TND088 | Sondana | 114.75 | 115.4 | 0.65 | 0.9 |
| TND088 | Sondana | 125.4 | 126.05 | 0.65 | 2.3 |
| TND089 | Sondana | 101.4 | 106.7 | 5.3 | 4.4 |
For further information: Media Information, contact:
Scott Emerson, President
se@relianceresources.com
Investor Information, contact:
Mike Kordysz,
mk@relianceresources.com
Scott Emerson, President
se@relianceresources.com
Investor Information, contact:
Mike Kordysz,
mk@relianceresources.com
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