Atapa raises funds for Indonesian drilling

Junior Atapa Minerals (ATAp-C) has raised sufficient funds to continue drilling on its Cikotok and Cikidang gold properties in West Java, Indonesia.

The recently closed $3.1-million private placement consisted of 2.7 million Atapa units priced at $1.15 each. A unit consists of one share and half a share purchase warrant. One full warrant entitles the holder to acquire an additional share at $1.30 until July 18, 1998.

While most of the proceeds will be applied to drilling at the properties, a portion will be held in escrow pending the company’s listing on a Canadian stock exchange, which is anticipated by year-end.

At Cikotok, one drill crew is testing a mineralized area in the southern portion, while, in the northern portion, another crew is testing for strike extensions to Cikidang, an epithermal narrow quartz-vein deposit which occurs near the surface.

Previous work on the steeply dipping Cikidang structure by state-owned Aneka Tambang outlined 473,000 tonnes grading 10 grams gold and 87.7 grams silver per tonne. To date, Atapa has drilled 47 holes to confirm the resource and test for mineralized extensions downdip.

Results from the most recent 26 holes ranged from a low of 1.54 grams gold and 5 grams silver over 1.4 metres to a high of 62.76 grams gold and 139 grams silver over 1.6 metres. The widest intersection was 2.7 metres of 34.33 grams gold and 56.13 grams silver, while the narrowest was 0.3 metre of 6.57 grams gold and 12 grams silver.

Cikidang has a strike length of 1.2 km and has been tested down to a vertical depth of 200 metres. Mineralization remains open along both strike directions and at depth. In addition, a geophysical survey has identified a parallel structure to the south, which will be tested by trenching and prospecting.

Atapa and its privately owned Indonesian joint-venture partner can earn (on a 90%-10% basis) up to a 75% interest in the Cikotok and up to 70% in Cikidang. The remaining interests are held by Aneka Tambang.

All exploration and development expenses on the properties are being funded by Atapa.