Robust Resources - Romang Island
Perth, Feb 22, 2008 AEST (ABN Newswire) - Robust Resources (ASX: ROL) announced today an exciting major diversification through the strategic acquisition of 'Romang Island' an advanced gold-base metals exploration project with large-scale mineralisation potential.
Romang Island is located within Indonesia's Magmatic Arc, which includes the islands of Sumatra, Java, Sumbawa and Wetar recognised as being richly endowed with gold and base metal deposits. This area contains some of the world's largest and richest gold deposits - Including Newmont Mining's massive Batu Hijua.
Previous exploration by Billiton (1998-99) intersected wide zones of gold-zinc-silver-lead-copper mineralisation. One of the main prospect areas 'Lakuwahi' in the south is situated within the caldera of an extinct submarine volcano (similar in size to PNG's Lihir gold ore body).
Robust Resources Executive Director Gary Lewis said, "This acquisition is an exciting step forward for the Company coming less than 12 months since listing. It is in line with our determination to forge value for shareholders and to take the company forward into broader realms. We are buying a valuable strategic asset early in its development cycle so that the potential upside opportunity value is there for our shareholders."
Option to earn up to 75 per cent equity
Under a Mining Co-operation Agreement with PT Gemala Borneo Utama (PT GBU), the present owner of the mining titles, Robust is purchasing an option to acquire a 75% interest for five million shares plus $150,000 cash.
In a two-stage acquisition, the Company is required to spend $1.5m in the ground to earn a 51% interest in five mineral titles totalling 25,000 hectares covering the entire Romang Island. Robust then has an option to earn a further 24 per cent (taking equity to 75 per cent) by expenditure of a further $3 million.
PT GBU and sister company PT Mineralindo Rejeki Alam (MRA) have been actively involved in the Indonesian mining industry for over 20 years and have highly experienced Australian and Indonesian principals. PT GBU has been on Romang Island since early 2006.
The share consideration will be subject to Robust shareholder approval at a General Meeting of the Company to be called as soon as practicable.
Independent Review
Independent consulting geologists Agricola Mining Consultants Pty Ltd reviewed the Romang Island project for Robust in December 2007 and stated the project has:
"_ significant potential for the discovery of both very large base metal - gold breccia hosted deposits and exhalative volcanogenic massive sulphide base metal - precious metal deposits."
"It is significant from a mineral exploration viewpoint that only exposed mineralisation has been tested by drilling and sampling. The vast majority of the target remains to be tested, preserved beneath the layers of tuft and limestone,"
"_ the size potential of Romang for breccia-style mineralisation is simply enormous."
Romang Location
Romang Island is located 800km NW of Darwin with access by regular domestic flights to Kupang in Indonesia and then boat to Romang. The island contains a deepwater harbour and is in close proximity to Asian smelters.
Romang Prospects
A number of prospects exist in the north and south areas of the island. Muswellbrook Energy & Minerals Ltd in cooperation with Ashton Mining Group Limited completed an exploration program in the north between 1988-1992, the program included diamond drilling and channel sampling (limited data is available).
Billiton PLC (now BHP Billiton) spent US$3m in 1998-99 on south area exploration including geological, geochemical and geophysical programs culminating in a 14-hole diamond drilling program totalling 2,424 on the 'Lukawahi' prospect (data available).
Lakuwahi Prospect (South)
Lakuwahi in the south is the current prime target with the potential to host a large base metal - gold breccia deposit and high-grade exhalative volcanogenic massive sulphides.
80% of the holes drilled by Billiton intersected economically significant gold/ silver/ zinc/ lead/ copper mineralisation - an excellent hit rate for scout drilling.
Key results from the Billiton drilling included:
- LWD 02 averaged over 1 g/t Au over its entire length of 73.9 metres.
- LWD 07 averaged just under 1 g/t Au over its entire length of 67.4 metres.
- LWD 08 intersected a 30 metre zone averaging 1.43 g/t Au and LWD 06 intersected 4 metres at 2.48 g/t Au and 3 metres at 2.39 g/t Au at shallow depths and base metal intersections of 4m @ 3%Pb,and 3m @ 4.8% Zn.
Romang Island and Lihir comparable scale mineralising systems
The size of the Lakuwahi alteration and mineralising system is demonstrated by the large geochemical and magnetic anomalies covering an area of approximately 20 square kilometres. This system is similar in size to the 40 million oz Lihir system in Papua New Guinea.
Wetar geological "look-alike"
The Romang Lakuwahi prospect has barite-style mineralisation similar to the Kali Lerokis/Kuning projects on Wetar Island. Wetar, located 60km to the west of Romang, was previously mined by Billiton and is currently being developed by Finders Resources (ASX/AIM: FND). Finders has a current market cap of around A$51m.
At the Wetar Copper Project, Finders has recently announced Measured, Indicated and Inferred Resources at a 0.5%cut-off grade, of 9.8 million tonnes at 2.5% copper for 248,000 tonnes contained copper in two deposits, Kali Kuning and Lerokis. Finders is planning to develop an open cut heap leach SX-EW copper mining operation to produce 20-25,000 tonnes of cathode copper per year from mid 2009.
Whilst Romang hosts similar Wetar-style epithermal gold-barite targets, it also hosts volcanogenic massive sulphide and large polymetallic tonnage breccia sulphide targets. Further, Romang presents an opportunity to deliver a maiden resource as opposed to extension of a historical resource, as is the case on Wetar.
Kiahar Prospect (North)
In the northern parts of Romang Island several prospective gold-silver-lead-zinc-barite veins exist at 'Kiahar' and nearby 'Pawawan', 'Joirtuna' and 'Dedern'. All are prime drill targets with the potential to be developed into a low-CAPEX, direct-shipping (ore) operation.
A near surface, high-grade gold-silver-lead vein drill target was delineated in 1991 at the 'Kiahar' prospect by the Ashton Mining Group. Maximum results of 26.7 g/t Au, 438 g/t Ag and 19% Pb were returned from 2 rock chip samples (see table below).
Drill testing of the vein system indicated two separate zones of mineralisation (strike extent over 200m tested down-dip extent of 110m averaging 2.5m thickness) 2.5m @ 1.89 g/t Au, 98 g/t Ag and 30% Pb from 19.5m.
---------------------------------------- Width(m) Au g/t Ag g/t Pb %----------------------------------------SurfaceChannel 2 26.7 109 19SurfaceChannel 2 8.8 438 9.2Drill Hole 2.5 (from 19.5m) 1.89 98 30----------------------------------------
Follow up surface sampling by Billiton in 1998 produced the following results:
---------------------------------------- Maximum Average----------------------------------------Au g/t 3.82 0.92Ag g/t 492 200Zn % 0.6 0.2Pb % 41.8 26.5----------------------------------------
Planned Exploration Program
The initial thrust of the Romang drilling program will be to follow up on mineralised targets identified by Billiton and Ashton Mining to strengthen grade and tonnage data. Original Billiton holes have all been located.
The Lakuwahi prospect is ready for immediate drilling and PT GBU has 2 "man portable" diamond drill rigs at its disposal plus experienced drillers and labour. PT GBU will operate the exploration program on Romang Island under the direction of Robust Resources Management team. Objectives include: Follow-up drilling of targets indicated from earlier drilling including delineation of breccia target size and sampling for preliminary metallurgical analysis.
An extensive initial exploration program is planned including:
- 5,000 metres of economical owner-operated diamond drilling
- Detailed Gravity Survey to detect massive sulphide bodies
- 3D IP to define breccia and stock work targets
- Ground magnetics to help geological interpretation, e.g. define alteration zones and mineralised structures
- Additional grid soil sampling will further define targets
The Company has sufficient funds available to implement the first two years of this exploration program.
The information in this announcement is based on information translated, interpreted and complied by John Levings BSc, who is a Member of The Australasian Institute of Mining and Metallurgy and who has more than ten years experience in the field of activity being reported on. Mr Levings is a consultant to the Company. Mr Levings has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Levings consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.
Contact
Gary Lewis
Managing Director
TEL: +61-4-22-88-00-55
Ian Finch
Chairman
TEL: +61-8-9485-1040
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