Jambi Prospect

Detailed drilling at Jambi has defined a potentially low strip ratio predominantly oxide resource of 175,000 oz Au and 1,000,000 oz Ag at a 0.3 g/t Au cut-off.

Indicated Inferred Total
Zone Tonnes
(million)
Au
g/t
Ag
g/t
Tonnes
(million)
Au
g/t
Ag
g/t
Tonnes
(million)
Au
g/t
Ag
g/t
Au
(oz)
Ag
(oz)
Oxide 4.1 0.92 4.8 0.39 0.8 3.1 4.5 0.9 4.7 130,000 670,000
Transition 0.79 0.7 6.3 0.07 0.6 6.3 0.85 0.7 6.3 19,000 170,000
Fresh 0.99 0.66 3.9 0.22 0.7 4.5 1.2 0.7 4.0 26,000 160,000
Total 5.9 0.85 4.9 0.67 0.8 3.9 6.5 0.8 4.8 175,000 1,000,000

Cut-off 0.3 g/t Au


Jambi Mineral Resource

Cross section of Jambi Resource

Cross section of Jambi Resource

oblique north-west to south-east section

Jambi, oblique north-west to south-east section, view showing Au g/t in resource
panels with drill holes and domain boundaries. Green line represents base of total oxidation.

The Jambi system is open at depth with an intercept of 6m @ 7.1 g/t Au and 161 g/t Ag, within 21m @ 2.9 g/t Au and 85 g/t Ag from a depth of 90m in hole number BKJR148. As previously mentioned, similar epithermal systems persist to depths of 500m plus.

Metallurgical Testing

A program of column leach testing of Jambi drill cores commenced on March 7th. Four 2m high columns of composite core samples of Jambi oxide material, with various head grades for gold and silver, crushed to minus 20mm, and agglomerated with cement have a planned leaching time of 75 days. Preliminary results, after 40 days of irrigation, are reported below.

Interim Column Leach Results

Column Head Grade Dissolution % (after 40 days) Bottle Roll Dissolution (18 days)
Au g/t Ag g/t Au % Ag % Au% Ag%
CL1 0.47 4.0 80.8 23.7 94.0 38
CL2 0.96 1.0 74.3 29.8 95.7 68
CL3 2.63 15.6 56.0 16.8 91.7 69
CL4 0.67 40.7 47.8 22.7 83.2 *

*Final assays not received

These results show very good leaching of gold and slower, but significant, leaching of silver from all samples. The initial 40 days results provide a good indication that ultimate recoveries after the full 75 day leach period will be much closer to the potential recoveries indicated by the bottle roll tests on splits from the same composites.

In particular, the strong and rapid leaching of gold from the low grade (0.47 g/t Au) column indicates that heap leaching with a low cut-off grade of around 0.3 g/t Au will be feasible, which will allow maximum utilization of the available resource.