Golden Bear tests Indonesian prospect

Junior Golden Bear Minerals (GB-V) is encouraged by results from an 8-hole drill program on the Beruang Mas South project in southern Sumatra, Indonesia.

In addition, a closely spaced geophysical program has been completed, and mapping and geophysical surface sampling are in progress.

Hole 001 intersected 7 ft. grading 0.04 oz. gold per ton; hole 003 intersected 33 ft. grading 0.05 oz. gold; hole 005 intersected 69 ft. grading 0.02 oz. gold; hole 007 reported 3 ft. of 0.14 oz. gold and 155 ft. of 0.02 oz. gold; and hole 008 hit 92 ft. grading 0.05 oz. gold.

Holes 001, 003 and 008 are in an alteration zone measuring more than 5,000 ft. long by 850 ft. wide, whereas holes 005 and 007 are in a parallel geophysical feature to the south, at least 3,000 ft. long by 700 ft. wide.

Holes 002, 004 and 006 encountered no significant assays.

A third parallel geophysical feature, to the extreme north, measures 6,500 ft. long by 500 ft. wide and remains to be tested.

Analysis has found strongly associated base metals in most of the holes, the company says. Also recorded were intersections of up to 400 ft., with grades ranging up to 0.31% lead and 0.58% zinc. A ground magnetic survey has found a circular feature that represents a potential intrusive porphyry copper target.

“Results from this phase of exploration suggest the area is prospective for high-grade breccia mineralization, large-tonnage disseminated gold mineralization, and intrusion-related porphyry mineralization,” the company says.

Golden Bear owns 90% of the project, with three Indonesian citizens owning the remaining 10%. The next phase of drilling is already under way.

Meanwhile, on the other side of the world in Venezuela, the company has renegotiated the option agreement on its Choco-6 property, allowing it to earn up to an 80% working interest, compared with the current 20%.

Previous exploration work identified a resource of some 400,000 oz. gold, and plans call for the Cerro Azul deposit to be advanced to the prefeasibility study stage as a potential heap-leach, open-pit operation.

Under the new agreement, acquiring an additional 30% working interest would require US$2 million in cash and the issuance of Golden Bear common shares valued at US$1 million.

Golden Bear can acquire another 20% working interest by financing the property to commercial production, and the final 10% by issuing another US$1 million in common shares on reaching commercial production.