Bre-X calculation expands Busang resource

A resource calculation for part of the Southeast zone at Bre-X Minerals’ (ASE) Busang deposit has added another 9 million oz. to the project’s potential gold resource, which now stands at 24.9 million oz.

A calculation done in February by Bre-X’s consultant, Kilborn SNC Lavalin, included the Central and Southeast zones. The new calculation covers part of the area linking the two structures, between drill sections SEZ-1 and SEZ-29. In this area, the proven and probable resource is placed at 18 million tonnes grading 3.3 grams gold per tonne, and the possible resource at 67.3 million tonnes, also grading 3.3 grams. The potential contained gold resource from a reserve of that size is 9.2 million oz.

The resource in the Central and Southeast zones is 69 million tonnes, proven and probable, grading 2.7 grams gold, and 113.5 million tonnes possible, grading 2.7 grams, for a total potential resource of 15.7 million oz. Both resource calculations use a cutoff grade of 0.75 gram per tonne.

The area between drill sections SEZ-29 and SEZ-49 has not been drilled densely enough to support a resource calculation yet; neither has the extension of the Southeast zone beyond drill section SEZ-54. Both areas contain drill-indicated mineralization at grades comparable to those in the Central and Southeast zones.

Bre-X affiliate Bresea Resources (ME) and its partners, Diadem Resources (ME) and Tandem Reousrces (ME), have started work on their properties in Central and East Kalimantan. The properties have known gold showings in the form of either alluvial gold or hard-rock occurrences, which have been exploited by local small-scale miners.