SOUTHEAST ASIA SPECIAL — Diadem, partners explore gold projects

Drills are turning on the Belitung Island lead-zinc-tin property of Diadem Resources (ME).

Bre-X Minerals (TSE) geologist John Felderhof recently accompanied Michael Bird, his Diadem counterpart, to the Indonesian property in order to prepare a 10,000-metre diamond drilling program. The program is designed to confirm a resource, identified during previous tin mining operations, of 35 million tonnes grading 7.3% zinc and 2.9% lead. The possibility of rehabilitating the tin mine will also be investigated and will be followed by a prefeasibility study of the resources.

Diadem holds a 30% interest in the project, while Bresea Resources (ME), which owns 23% of Bre-X, holds 60%. An Indonesian partner holds the remaining 10%. Bre-x will be the project’s operator.

An exploration program is also being planned for the Kalimantan gold projects held by Diadem and Bresea, each of which holds 30%. Tandem Resources (ME) holds 25% in the projects and an Indonesian partner has a 15% interest in them. Bre-X will be the operator of those projects as well.

One of the two projects, North Mirah, is on a geological structure similar to the Mirah gold deposit in the Kalimantan gold belt. Artisanal mining in rivers on the property has convinced the partners a hard-rock gold source must be nearby.

Diadem’s joint venture with Waseco Resources (CDN) on the Tewah alluvial gold prospect in southern Kalimantan has also begun, and a drill program on the Kahayan River will attempt to outline a dredging path and identify minable reserves as part of a feasibility study. Previous exploration on the river outlined 77 million cubic metres of gravel containing 0.2 gram gold per cubic metre. The area can be mined by dredge for an estimated US$80 per cubic metre. In addition, the river terraces contain a drill-indicated 360 million cubic metres of a similar grade, for an estimated 2.8 million oz. of contained gold.

Diadem has an option to acquire a 60% interest in the property by completing a feasibility study. Waseco can acquire all of Diadem’s interest for US$1.5 million and 7 million common shares.