Indo Metals-Inco alliance to focus on Indonesia

Junior Indo Metals (IOM-V) will join forces with Inco (N-T) on several of the nickel giant’s polymetallic properties in Indonesia.

Under the so-called Maluku strategic alliance, Indo (formerly European Garnet) can acquire about half of Inco’s interest in properties on the islands of Haruku, Ambon, Nusa Laut and Saparua. Those interests range from 80% to 85%, while the properties, in total, comprise 74,094 ha.

Inco’s Indonesian partner in these projects is state-owned Aneka Tambang, which discovered base metal mineralization at Hatu Sendawa on Haruku Island in 1991. Aneka Tambang holds a 15-20% carried interest.

Inco has 25 years of experience in Indonesia and has been exploring the properties in question since 1993.

Follow-up exploration of stream-sediment anomalies has led to the discovery of high-grade copper-lead-zinc-silver occurrences on Haruku Island, at Wai Ira and Wai Urkenal. The mineralization occurs at the flat-lying contact between a silicified, dacitic footwall breccia and pyritic tuff.

The Wai Ira prospect hosts a high-grade occurrence of base metals and has been partially explored with soil and geophysical surveys. Fifteen shallow holes were recently drilled along a 400-metre strike length in a program spanning 1,865 metres.

Drill intersections include 8.5 metres grading 3.3% copper, 7.8% lead and 14.2% zinc, plus 109 grams silver per tonne, as well as 11 metres grading 1.4% copper, 4.7% lead, 7.4% zinc and 221 grams silver.

At Wai Urkenal, grab samples revealed massive sulphide mineralization grading up to 0.35% copper, 7.38% lead, 9.8% zinc and 99 grams silver. Four shallow holes were drilled but failed to reach the target zones.

At another propspect, Hatu Sendawa, Inco discovered a mineralized zone within altered, intermediate-to-felsic volcanics. Measuring 200 metres long by 50-100 metres wide, the structure was located at surface. One of five boreholes drilled to test the zone intersected 16 metres grading 0.28% copper, 2.62% lead and 161 grams silver.