1.54 Million Ounce Gold Equivalent Maiden Gold/Copper Resource at Wonogiri
Sydney, July 10, 2012 AEST (ABN Newswire) - The Directors of Augur Resources Ltd (ASX:AUK) are pleased to advise they have received the maiden resource estimate for the Randu Kuning deposit, within the Wonogiri project, with the following highlights:
- 1.54 million ounce ('Moz') gold equivalent1 ('AuEq'), 90.9 million tonnes ('Mt') total JORC compliant resource estimate using a 0.2 g/t AuEq cut-off comprising:
-- 1.01 million ounces gold; and -- 200 million pounds copper.
- Includes 33.2 Mt at 0.90 g/t AuEq, using 0.5 g/t AuEq cut-off, in a shallow higher grade zone, with mineralisation commencing from surface.
- Randu Kuning resource open to the south, east and at depth with no forestry restrictions on the deposit.
- Multiple epithermal targets available for further drill testing.
- Discovery cost less than $4 per ounce, with resource defined by Augur in a little over a year.
- Augur market capitalisation ~$11 per AuEq resource ounce vs ~$79 per AuEq resource ounce for peer group companies(2).
Augur's Managing Director, Grant Kensington stated; "We are tremendously encouraged about the prospects for Wonogiri and the Randu Kuning resource. We have been able to define a significant shallow resource in just over a year for less than $4 per ounce. Metallurgical results have so far been excellent with 82.7% gold and 94.1% copper recovery in the sulphide. This project will now move to a pre-feasibility study.
A number of other prospects remain to be fully tested at Wonogiri. We will continue to focus on these prospects with the aim of defining further shallow gold mineralisation."
Augur commissioned Computer Aided Geoscience Pty Ltd ('CAG') to undertake an independent resource estimate in accordance with the JORC Code for the Randu Kuning gold-copper deposit within the Wonogiri project.
The resource estimate covers the Randu Kuning gold-copper porphyry zone where mineralisation exists from surface to over 400 metres depth and excludes some of the additional epithermal targets to the south, west and east of the deposit.
The resource is estimated at 90.9 Mt at 0.53 g/t AuEq (0.35 g/t gold and 0.10% copper) using a cut-off of 0.2 g/t AuEq.
For Details of the resource estimate, see link at bottom of release.
Resource estimate of the Randu Kuning deposit within the Wonogiri project. All figures are rounded and summation differences in totals are due to rounding.
The resource estimate includes the oxide, transition and sulphide components of the deposit. The sulphide component accounts for 95.7% of the resource estimated tonnes (at a 0.2 g/t AuEq cut-off).
The resource was estimated using Inverse Distance techniques based on a total of 55 diamond drill holes. Holes are generally drilled on fences of 50 metres spacing.
The block model used in the estimation was based on 10 (cross strike) x 10 (along strike) x 5 (depth) metre blocks. Extrapolation along strike and interpolation between drill sections was limited to a maximum of 65 metres for Measured, 110 metres for Indicated and 150 metres for Inferred.
A total of 171 specific gravity measurements were collected and average bulk densities calculated for each rock type. These were then applied to the estimated block volumes.
Based on statistical analysis, no top cut to the gold or copper was required.
The Randu Kuning prospect contains a highly altered wall rock porphyry.
Mineralisation is associated with quartz stock working and as disseminated mineralisation within a series of micro-diorite to medium grained diorite intrusives.
Epithermal mineralisation occurs in the immediate surrounds of the Randu Kuning porphyry. Drilling has identified a number of epithermal vein systems containing wide zones of anomalous gold mineralisation.
Augur will commence a prefeasibility study of the Randu Kuning deposit and continue the identification of additional shallow gold, copper and silver mineralisation within the Wonogiri project area.