GLOBAL SEARCH FOR GOLD — Initial exploration program pays off for Waseco in Java

A first phase of exploration by Waseco Resources (WSCO-C) has identified epithermal-type gold mineralization at its 33,000-ha Tikkur property on the Indonesian island of Java.

The $200,000 program, which consisted of reconnaissance mapping, sampling and trenching, uncovered an extensive alteration zone of mineralization measuring 2 by 4 km. Assays for 569 surface and trench samples returned a mean gold grade of 0.38 gram per tonne, with copper values ranging between 2 and 4,889 parts per million.

Mineralization on the property, ownership of which is split between Waseco and state-owned PT Aneka Tambang, with 70% and 30% interests, respectively, appears to be centred on the fracture intersections of a right lateral slip fault. Waseco reports that the mineralization is characterized by a silica zone enveloped by a clay-chlorite-sericite-pyrite halo hosted in volcanic tuffs, tuff breccias and volcaniclastic rocks.

A consultant to the company believes encouraging gold values in the Southeast block will enable Waseco to outline a large-tonnage, bulk-minable deposit. Grades are expected to improve at depth, based on assay results obtained over a strike length of about 300 metres along the previously identified Cigodobras structure in the silicified zone. Trenching in bedrock returned up to 5 metres grading 6.39 grams gold, whereas the average grade from chip sampling was 3.1 grams over 1.5 to 2.5 metres.

Further trenching is expected, as is petrographic/mineralogical analysis, fluid inclusion studies and a topographical survey. Based on results from those programs, drilling may follow.

Waseco, which has five gold prospects in Indonesia, is owned 39% by Diadem Resources (DIR-M) and has 12.8 million shares outstanding.

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