DIAMOND drilling by Paramount Mining at the Gunung Rosa gold, silver and base metals licence in West Java has intersected a high grade reef at Cap Palu North and to depth beneath the lower limits of historic mining and drill testing. Results confirm that mineralization is open, possibly with a northern plunge.
Significant intersections: 3.04 metres @ 5.45 grams/tonne gold and 30.1 grams/tonne silver, including 0.38 metres @ 22.9 grams/tonne gold and 82.4 grams/tonne silver, and 1.64 metres @ 0.47% copper; 1.70 metres @ 5.58 grams/tonne gold and 8.2 grams/tonne silver; 7.0 metres @ 3.30 grams/tonne gold, including 0.48 metres @ 19.0 grams/tonne gold and 50.7 grams/tonne silver; 2.65 metres @ 6.02 grams/tonne gold; and 4.0 metres @ 13.4 grams/tonne gold and 12.5 grams/tonne silver, including 1.00 metres @ 20.7 grams/tonne gold, 14.1 grams/tonne silver and 0.45% copper.
The seven additional holes have intersected high grade mineralization extending more than 150 metres north of the previously known limits at Cap Palu as well as continuity of mineralization to depth. Paramount believes the results in the northern extension add additional mineralization amenable to early stage mining while the mineralization at depth is for later mining.
A further diamond drilling program will be completed in the second half of 2014 aimed at drilling the northern open plunge of Cap Palu mineralization and to test mineralization to the south in the Cisudi and Cibutung section of the Gunung Rosa vein.
Paramount chairman Mo Munshi says, “These results continue to increase our confidence in Gunung Rosa and again demonstrate the upside potential within the licence.” A revised JORC-compliant mineral resource estimate is expected to be completed by the third quarter.
The company has also recently received assay results from rock chip sampling of mapped veins. The results highlight the widespread distribution and tenor of vein mineralization away from the main zone.
The sampling has returned grades of up to 69 grams/tonne gold, 288 grams/tonne silver, 38.8% lead, 0.84% copper and 7.27% zinc. Local centres of high grade gold and silver with elevated co-anomalous copper, molybdenum, bismuth and arsenic combined with magnetics data confirm the potential for porphyry intrusive source bodies at depth.
The system remains untested by drilling to the north and east of the current mine workings, and given these results there is upside potential to add to the resource base. The deposit holds a known inferred resource of 2.47 million tonnes containing 436,000 ounces of gold, 1.045 million ounces of silver, 8230 tonnes of copper, 13,020 tonnes of lead and 43,800 tonnes of zinc.
Project development at Gunung Rosa, 126km southeast of Jakarta, is scheduled to commence in late 2014 to early 2015 with gold production expected within 18 months of construction start.