Chase, Delta get nod for Cikondang gold mine

The Indonesian government has approved a share ownership plan that gives Chase Resource (CQS-T) and Delta Gold Mining (DTG-V) a 77.5% interest in the Cikondang gold mine and surrounding property.

The Vancouver-based companies each own a 50% interest in Indonesian-based Persada Mas Triagun, which, in turn, owns 77.5% of the shares of property owner Panen Antam Emas.

Aneka Tambang, the state-owned mining company, owns the remaining 22.5% interest in Panen Antam Emas.

Reserves at Cikondang, a classic epithermal gold-bearing vein, are estimated at 730,000 tonnes grading 14.7 grams gold and 34.4 grams silver per tonne, plus 3.7% zinc. The calculation is based on an average core recovery of 80%, a strike length of 850 metres, and a depth of 200 metres.

A total of 63 diamond drill holes have been drilled, and the company reports encouraging average grades from underground sampling (15.1 grams gold and 35 grams silver).

Drilling has been conducted on only a 1-km section of the main vein, which remains open at depth and along strike. The vein has been traced for 6 km, and old workings have been found 4 km north of the existing mine.

Drilling by the joint venture will attempt to expand reserves at depth and confirm higher grades in areas such as hole 47, which intersected 4.5 metres grading 64.5 grams gold and 86.7 grams silver.

Field exploration to define the vein’s strike extensions will be followed by stepout drilling to expand reserves along strike. Four other veins with similar strike lengths will be evaluated, as well.

In the Philippines, meanwhile, Chase has concluded an option agreement to acquire the 1,215-ha Archangel gold-copper property, 120 km south of Manila.

The company will pay local claim-owners $25,000 each year for five years for the interest, subject to a 3% net smelter return royalty. Chase retains a right of first refusal over any sale or transfer of the claim-holders’ royalty rights.