High grade gold mineralization has been intersected in the central Sondana vein at Reliance Resources’ 75%-owned Tanoyan Gold Project on Sulawesi Island. A recent hole intersected 6.2 metres @ 8.1 grams/tonne gold within a broad zone of 42.95 metres @ 1.6 grams/tonne.
The company says it is one of the strongest results obtained to date at Tanoyan and also has important implications for the geological understanding of the Sondana gold vein system.
This intersection also infers continuity between the strong gold mineralization in North Sondana and Central Sondana at intermediate depths. Reliance plans to test this continuation by further drilling, which is expected to increase the NI 43-101 inferred mineral resource of 4.58 million tonnes @ 1.41 grams/tonne gold for 208,000 ounces of gold announced in March 2012.
Reliance chief executive officer Gary Lewis says, “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 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 production stage,” he says.
The Tanoyan project comprises 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 and have been mapped over a combined strike length of 6km.
Reliance’s Phase 2 drilling program will test the mineralization at depth and the continuity of vein systems which will in turn, improve the classification of the mineral resource.