-
Drill hole TND 106 intersected:
-
6.2 metres at 8.1 grams of gold per tonne
-
Within broad zone: 42.95 metres at 1.6 grams of gold per tonne
-
Continues to confirm consistency of higher-grade gold zones
-
Important implications for continuity of gold mineralisation
VANCOUVER, Nov. 29, 2012 /CNW/ - Reliance Resources Ltd. (the "Company")
(TSX:RI) is pleased to announce recently received gold assays, which
have confirmed the discovery of significant high grade gold
mineralisation in the Central Sondana vein; Tanoyan Gold Project;
Indonesia.
Diamond drill hole number TND 106 intersected a broad zone of
gold-bearing quartz veins which contains within it, a substantial high
grade zone:
-
TND 106: 42.95 metres at 1.6 g/t Au from 100 metres
including 6.2 metres at 8.1 g/t Au from 135.5 metres
Full details of the results are located in Table 1.
This intersection is one of the strongest so far obtained on the Tanoyan
property and also has important implications for the geological
understanding of the Sondana gold vein system. As can be seen in the
longitudinal projection of the Sondana vein in Figure 1, drillhole TND
106 extends the high-grade zone originally discovered in hole TND 063
(7.2m at 7.3 g/t Au).
Importantly, the TND106 result infers continuity between the strong gold
mineralisation in North Sondana and Central Sondana at intermediate
depths. This inference will be tested by further drilling as part of
the Company's current, 10,000 metre, Phase 2 drill program. The program
is designed to build on the independent NI 43-101 Inferred Mineral
Resource (4.58 Mt at 1.41 g/t Au) of 208,000 ounces of gold (March,
2012).
The TND 106 intersection highlights a substantial thickening of the
mineralised zone between a shallow intersection in TND104 and a deep
intersection in historical drillhole TND034 (see Figure 2). This
continues a geological pattern encountered in North Sondana, where the
thickest and highest grade gold intersections tend to occur at
intermediate depth, starting approximately 50m below ground surface.
Reliance Resources CEO Mr. Gary Lewis said: "It is very encouraging to
be able to update shareholders with this important result. Besides
being one of the best holes ever from Tanoyan, it has led to important
new understanding of the Sondana vein, and points to future exploration
success and increase in mineral resources. The consistency of
high-grade gold mineralisation is further demonstrated by this result
which will be important when it comes the time to commercialise the
Tanonyan gold deposits. The geological lessons being learned in Central
and North Sondana put us in a good position as we explore further north
along the Sondana vein structure.
"Based on continued good results, Reliance has engaged consultants to
complete a set of studies which will be submitted to the Indonesian
Government and will lead to the conversion of the Tanoyan property from
exploration to exploitation (production) stage."
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 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 drilling 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 at 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 mineralisation which have been mapped on surface and in
locations where earlier drilling has shown the mineralisation is open
at depth. Infill drilling should confirm the strike continuity of vein
systems and thereby improve the classification of the mineral
resources.
Reliance has a portfolio of five mineral tenements covering 68,000 acres
on the islands of Sulawesi and Halmahera in East Indonesia. The Company
owns a 75% direct equity interest in both the Tanoyan and Anggrek
properties and a 90% direct equity interest the Polopo property in
Sulawesi. In the two Halmahera properties, Roko and Kapa Kapa, Reliance
has an 82.5% beneficial joint-venture interest through a 100%
Reliance-owned Indonesian subsidiary. 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 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 Reliance proprties 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: Tanoyan Project Drilling Results
| DH No.
|
Vein
|
From
|
To
|
Interval
|
Au
|
| (m)
|
(m)
|
(m)
|
(g/t)
|
| TND106
|
Sondana
|
29.00
|
29.80
|
0.8
|
1.4
|
|
|
and
|
68.65
|
69.30
|
0.65
|
1.5
|
|
|
and
|
100.05
|
143.00
|
42.95
|
1.6
|
|
|
incl
|
135.5
|
141.70
|
6.2
|
8.1
|
PDF available at: http://stream1.newswire.ca/media/2012/11/29/20121129_C4639_DOC_EN_21342.pdf
PDF available at: http://stream1.newswire.ca/media/2012/11/29/20121129_C4639_DOC_EN_21343.pdf
SOURCE: Reliance Resources Ltd.
