Ojolali Gold-Silver Project
Finders acquired its initial interest in the project area in April 2005, under a Cooperation Agreement with PT Batutua Kharisma Permai (“BKP”) and Great Northern Resources Ltd, through the grant of exploration KPs covering 3450 Ha to BKP. In March 2006, Finders increased its interest in the project to 71.7%, with potential to increase its equity to 100% if the partners elect not to fund their share of development after completion of a positive feasibility study.
In February 2007, the old KPs were restructured in the name of a project specific company, PT Batutua Way Kanan Minerals (“BWKM”) and an additional KP granted, covering extensions to the mineralized system, bringing the total area controlled by the project to ~5,900 Ha.
Previous exploration on the property was mainly carried out by Antares Mining and Exploration Corporation (“Antares”) which completed 22,000 m of shallow diamond drilling, in 212 holes, between 1997 and 1999, targeting two main prospect areas, the Jambi gold prospect and the Tambang Silver-gold prospect.
Since acquiring the project, Finders has carried out an intensive exploration program, comprising diamond drilling to confirm the resource base at the Jambi and Tambang prospects, and an extensive program of grid geological mapping, followed up by detailed gradient array IP surveys to define and rank additional prospect within the project area.
Jambi, with a near surface oxide gold resource (JORC Inferred) of at least 100,000 oz Au comprises a near term open pit development prospect.
Tambang, which is also unclosed at depth and along strike to the north, has a current Inferred Mineral Resource of 39.5 million ounces of silver, plus 170,000 ounces of gold.
Other prospects have outstanding potential for the discovery of additional resources using modern geophysical techniques to optimize drill targeting. Widely spaced drilling has clearly indicated potential for high grades of both gold and silver, and the overall potential is enhanced by continued activity by “local“ miners in areas not previously subject to drill testing.
Project Location
The Ojolali Project is approximately 6km from the town of Bara Datu, in the Kabupaten of Way Kanan. Bara Datu is serviced by the Sumatra power grid and is a four-hour drive along the Trans Sumatra Highway from the nearest airport at Banda Lampung.
Ojolali is located within the highly productive Sunda Arc gold belt which hosts a number of significant gold deposits
owned by other parties, including Gunung Pongkor (6Mt @ 17g/t Au, 162 g/t Ag) and the Lebong district. In the latter district, epithermal gold deposits have produced approximately 3 million oz Au at Lebong Tandai and Lebong Donok. Sixty kilometres south of Ojolali, feasibility studies have been completed at Way Linggo which has proven and probable reserves of 408,472t at 9.1 g/t Au and 145g/t Ag.
