EXPLORATION ROUNDUP — Antares explores Sumatra and Toodoggone

At first glance, the Toodoggone camp of northern British Columbia does not appear to have much in common with the North Lampung district at the southern end of the Indonesian island of Sumatra.

However, Antares Mining & Exploration (ANZ-T), which is busy exploring gold-silver prospects in both regions, believes there are some interesting similarities.

At the Ojolali project in Sumatra, the company is exploring a major epithermal system with wide zones of gold and silver mineralization. In the Toodoggone region, the company is exploring an extensive gold-silver epithermal system.

Both projects are in historic mining camps that have been worked by either local miners or previous operators. “We think both have potential for bulk-minable targets, as well as the more traditional high-grade vein-type targets,” says Chairman Dennis Gray.

Antares has interests in other projects (including 38% of the Lady Lina gold mine in Zimbabwe and 24.75% of Rappa Holdings of South Africa, which extracts gold, cobalt and other metals from hard-to-treat materials), but its immediate exploration focus is the Ojolali project, where six drills are testing a number of prospects.

Antares holds a 76.5% interest in the 2,224-ha Ojolali property and surrounding 29,700-ha land package, while partner Coleville Resources (CLL-A) has a 13.5% interest. An Indonesian partner holds a 10% stake.

Two of the more advanced prospects, Jambi and Tambang, have gold-silver resources that are amenable to bulk-mining methods. Jambi has at least 2.3 million tonnes with a gold-equivalent grade of 1.3 grams per tonne, whereas Tambang has 1.8 million tonnes with a gold-equivalent grade of 3.35 grams.

At least five other zones are being explored at Ojolali.

Recent, near-surface drill results from Jambi include: 85 metres of 1.18 grams gold and 6 grams silver; 64 metres of 1.68 grams gold and 6 grams silver; and 78 metres of 1.53 grams gold and 14 grams silver.

Near-surface drill results from South Tambang include: 8 metres of 0.42 gram gold and 308 grams silver; 21 metres of 0.47 gram gold and 189 grams silver; and 28 metres of 0.88 gram gold and 231 grams silver.

The company notes that while drilling has tested the Tambang vein over a strike length of about 100 metres, the structure has been mapped over 800 metres and has potential to be extend for 2.4 km, based on yet-to-be confirmed correlations with other vein outcrops.

Antares, like other juniors working in Indonesia, has taken steps to reassure investors spooked by the Bre-X scandal. The program at Ojolali is being managed by MRA Consultants, the same firm that drilled the Central zone at Busang (before Bre-X) and found nothing of consequence. And the work gets a yearly audit by Strathcona Mineral Services, which pulled the plug on Busang earlier this year.

The current program is aimed at building up the overall resource picture.

Some of the prospects are new discoveries generated by geophysical and geochemical surveys, as well as geological mapping and sampling, and scout drilling.

Early-stage work also is under way in the Toodoggone camp. In late August, Antares completed a joint-venture agreement with AGC Americas Gold (AGA-V), allowing it to earn a 55% interest in the Toodoggone properties by spending $5 million.

The 235-sq.-km land package has been tested by previous operators, which drilled more than 500 holes in multiple zones.

Antares is focusing its efforts on known, but relatively unexplored, mineral showings that occur over a strike length of 12 km. While previous operators focused on high-grade zones, the company intends to investigate the potential for bulk-tonnage targets, which has, in the past, been overlooked.

Selected results of this year’s drilling include: 41 metres of 2 grams gold; 28 metres of 4.2 grams; 20 metres of 4.1 grams; 19 metres of 7.1 grams; 12 metres of 1.6 grams; 10 metres of 2.2 grams; 26 metres of 1.3 grams; 11 metres of 5 grams; 32 metres of 2.1 grams; 13 metres of 6.5 grams; and 10 metres of 3 grams.

Antares believes the economics of operating in this region are enhanced by the introduction of power to the Kemess mine property, which is being developed by Royal Oak Mines some 64 km to the south.

Meanwhile, in Africa, Antares expects Rappa to produce 97,000 oz. gold for the year that ends March 1998 — up from the 48,999 oz. produced for the previous fiscal year. Rappa’s operating cash flow was $3.6 million during the latter period.

During the year ended Jan. 31, 1997, Antares posted a loss of $367,119 related to its interest in the Lady Lina mine. The losses were experienced during a test-milling period.