Waseco updates gold resource for Tewah alluvial project

Infill drilling financed by Waseco Resources (WSCO-C) has boosted resources at the Tewah alluvial gold project in Kalimantan, Indonesia.

The junior is earning a 60% interest in the project by completing a feasibility study. The remaining 40% is held by an Indonesian partner.

Waseco says the recent infill program, carried out in the central portion of the Kahayan River, has increased the river resource to more than 1 million contained ounces gold. This is in addition to resources of 2.5 million oz.

contained in previously drilled terraces.

Waseco’s project consultants estimate that gold can be produced at US$123 per oz. Based on drill results, bucket-ladder dredges with a digging capacity of 60 ft. have been recommended at a cost of US$12 million each.

Waseco reports that one dredge would enable it to produce 30,000 oz. gold in the first year of operation. A second dredge would be added in year two.

Production is expected to reach 100,000 oz. in the third year, once terrace mining is initiated.

Diadem Resources (DIR-M) holds about 41% of Waseco’s outstanding shares and is operator of the exploration program. The companies are partners on four mineral projects elsewhere in Indonesia.

Diadem is also exploring five Indonesian projects with Bresea Resources (BSR-M), and is testing a diamond project in California, as well as the Pekan River base metal project in Quebec.

In Nicaragua, Diadem is exploring La Mestiza, a gold project where recent sampling returned a grade of 1.10 oz. gold per ton over 13.1 ft. in the main adit. This intersection is from the Buenos Aries No. 1 vein, one of four vein targets to be tested in the current program.

Diadem’s work is aimed at developing the vein systems and proving up the resource potential of the property, which is believed to be in the order of 1 million contained oz., based on results of previous trenching and drilling by a state-owned mining company.