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Drilling Underway on Tanoyan Gold Project, Indonesia,to Test High-Grade Intercepts and Expand Maiden Resource

February 10, 2011

  • Program designed to expand initial 43-101 resource of 91,100 oz Au
  • Initial drill holes to test high-grade shoots in Sondana Vein
  • Previous results include 10m @ 8.8g/t Au, 7m @ 5.3 g/t Au and 20m @ 3.1 g/t Au
  • Veins have strike-lengths up to 2.3 Km and widths between 2m and 15m
Golden Peaks Resources Limited (the Company) (TSX:GL) is in the final stages of completing its 100% acquisition of Reliance Resources Limited (Reliance), and upon completion of the transaction, the company will own a 75% interest in the Tanoyan Gold Project on Sulawesi Island Indonesia.

The Company is also pleased to confirm that Reliance has commenced drilling at the Tanoyan Project (Figure 1) after extensive site work and preparatory activity which has been ongoing since December 2010 in readiness for this initial 5,000-metre drill program.

Figure 1: Location of Golden Peaks Tanoyan, Anggrek and Palopo properties
Click to Enlarge

This drill program will be the first phase of drilling by Reliance and is designed to expand the initial 43-101 compliant inferred mineral resource of 91,000 ounces announced on January 13, 2011, and is expected to outline further mineralisation with drilling between sections and down-dip from previous exploration by Avocet Mining PLC (Avocet). Their previous exploration on the property included a drill program that totalled 44 diamond drill holes (6007 meters) as well geological mapping, IP geophysical surveys and trenching.

The initial focus of this drill program will be to follow-up high-grade intersections from the previous work to provide a framework for recognizing controls of high-grade mineralisation within the lode systems. Avocet's drilling was too widely spaced to allow modelling of interpreted high-grade shoots.

The first holes are designed to test for extensions of high-grade mineralisation intersected by Avocet within the Sondana Vein in hole TND002 (Figure 2) which intersected four zones of mineralisation, including 10m @ 8.81 g/t Au from 31m and 20m @ 3.1 g/t Au from 138m.

Figure 2: Tanoyan Geology showing Vein Systems and Avocet drill hole collars
Click to Enlarge

Avocet's previous drilling should be regarded as preliminary in nature, with quite widely spaced drill holes along each Vein system, some of the significant intersections from the Avocet drilling include:

Drill Hole From To Length Au VEIN
(m) (m) (m) Grade (g/t)
TND001 15.00 18.05 3.05 2.30 SONDANA
TND002 31.00 41.00 10.00 8.81 SONDANA
TND002 138.00 158.00 20.00 3.13 SONDANA
TND003 70.00 83.00 13.00 1.39 SONDANA
TND008 54.90 59.00 4.10 3.53 MODUPOLA
TND008 122.00 127.40 5.40 2.33 MODUPOLA
TND032 42.70 51.00 8.30 2.10 SONDANA
TND032 64.00 72.00 8.00 1.40 SONDANA
TND037 76.00 80.00 4.00 2.84 RAMAI
TND037 87.00 94.00 7.00 5.31 RAMAI
TND041 48.00 63.00 15.00 1.55 MODUPOLA

The company believes the samples from the diamond drilling programs used in the Mineral Resource estimate are considered to be of good quality and no factors which may have resulted in sample bias are evident. Based on the steeply dipping style of the mineralisation, the interpreted widths recorded at surface are considered to closely reflect the true widths

Reliance has purchased two new diamond drill rigs and will initially use one at Tanoyan and the other at the Palopo Gold Project in South Sulawesi, currently two more drill rigs are on order. The drill rigs will be operated by an Indonesian drilling contractor (MRA) under a management and maintenance agreement with Reliance.
This press release has been reviewed and approved by Mr. John Levings, B.Sc., MAusIMM, director of Reliance Resources Limited and a Qualified Person as defined by National Instrument 43-101, under whose direction the exploration programs are being carried out.

Media Information, contact:
Scott Emerson, Chairman and Director

Investor Information, contact:
Mike Kordysz, Investor Communications

The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

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