Wildcat active in Malay Archipelago

A memorandum of understanding gives Pacific Wildcat Resources (VSE) an interest in the Sulut gold property on the Indonesian island of Sulawesi.

The property comprises more than 30,000 hectares and contains a geological resource currently estimated at 12 million tonnes grading 2.09 grams gold and 4.4 grams silver per tonne.

The resource is centred around the old Doup-Bentang gold mine, which was mined by the Dutch during the period 1936 to 1941.

Pacific Wildcat sees significant potential in expanding the resource within the deposit area, as well as in surrounding targets.

Gold mineralization on the property is hosted in low-sulphidation, epithermal gold-bearing veins and vein stockworks, high-sulphidation silica-pyrite alteration and limestone-hosted replacement deposits. The potential for discovering limestone-hosted deposits is considered excellent.

Pacific Wildcat’s joint-venture partners include PT Bimantara Duta Samudra, a major Indonesian industrial conglomerate, along with an Indonesian consulting group which holds a minor equity interest.

The three parties can earn an 85% interest in the Sulut property from the general mining arm of the Indonesian government by funding exploration through to the completion of a feasibility study.

The government and Bimantara can back-in for equity interests on a cost-plus basis, following completion of the feasibility study. Assuming all the back-in rights are exercised, Pacific Wildcat will hold a minimum 52% interest.

The company is now preparing exploration budgets for both the Sulut property and its Jambi prospect in central Sumatra.

The Jambi prospect comprises more than 74,000 hectares, and several anomalous gold zones were identified by previous exploration.

Pacific Wildcat has about $3.8 million in working capital. Viceroy Resources (TSE) and Australian-based Gwalia Consolidated each own 26% (30% fully diluted) of the company’s 5.1 million outstanding common shares.