Gold Mineralisation Strengthens at Depth: Tanoyan Gold Project, Sualawesi, Indonesia
- 14.5 metres at 2.8 g/t Au from 50.5m (TND090)
- Affirms the trend for increasing gold grade with depth
- Part of Phase 2, 10,000 metre drilling program to increase 43-101 mineral resource estimate
May 31, 2012- Reliance Resources Ltd. (the "Company") (TSX:RI) is pleased to announce positive drilling results from hole TND090 into the Sondana Vein at the Tanoyan Gold Project, Sulawesi, Indonesia. These results are part of the planned, 10,000 Phase 2 drill program designed to build on the independent NI 43-101 Inferred Mineral Resource (4.58 Mt at 1.41 g/t Au) of 208,000 ounces of gold (March, 2012).
Previously released results have shown a tendency for higher grades, and often greater widths, to occur below earlier shallower drillholes. Therefore, current drilling at Tanoyan is targeting the central Sondana Vein at deeper levels (Figure 1)http://www.relianceresources.com/i/maps/TND090-2.jpg. The results of TND090 released here, provides further affirmation of this tendency for higher grades at depth:
- TND 090: 14.5 metres at 2.8 g/t Au from 50.5m
including 3.7 metres at 5.8 g/t Au from 51.5m
and 3.0 metres at 4.2 g/t Au from 59.5m
Reliance president Scott Emerson stated "These results further show how our Tanoyan Gold Project continues to improve as the drilling advances. Epithermal gold veins are not simple to evaluate as the gold occurs in shoots and at different levels. The TND090 results and other similar results prove that only extensive drilling, such as we are undertaking in this Phase 2 drilling program, can unlock the potential of prospects such as Tanoyan. I look forward to continually updating the market as our Tanoyan drill program progresses and accelerates in coming months, as well as providing regular updates on our other exciting gold and silver properties in Indonesia. "
The Tanoyan Gold Project consists of an extensive system of auriferous quartz veins, comprising four principal vein systems, Sondana, Ramai, Modupola/Talong and Lingkobungon. These veins are predominantly orientated northeast and dip steeply or moderately to the northwest or southeast. The veins are hosted by andesitic volcanic rocks and have been mapped over a combined strike length of approximately 6 kilometres.
The Phase 2 program aiming for a significant upgrade to the existing NI 43-101 resource by targeting extensions to drilled sections of the veins, which have been identified, as well as along strike and at depth on all vein systems. Previous drilling has primarily been tightly focused on the Sondana and Modupola veins and the current Phase 2 program will extend drilling into all target areas.
The resource model at the Sondana and Modupola veins is open at depth, especially in the north of the Sondana vein, where significant drill intersections from Phase 1 drilling are located. The Phase 2 drilling program is designed to test at depth for extensions mineralisation which have been mapped on surface and in locations where earlier drilling has shown the mineralisation is open at depth.
The Company has a portfolio of five mineral tenements covering 68,000 acres on the islands of Sulawesi and Halmahera in East Indonesia. The projects offer both exploration potential and an existing resource base. All five projects are adjacent to or along strike from operating gold mines or identified gold resources with similar geology and structural feature. Importantly, all projects have been converted to IUP tenements as required under the new Indonesian Mining Act (2009).
The Company is active on four of its five Indonesian gold projects; currently drilling on the Tanoyan Gold Project and conducting surface exploration programs on the Palopo Gold Project, the Kapa Kapa Gold Project and the Roko Gold Project. All of the projects have easy access via paved and/or gravel roads and regional infrastructure is good.
This press release has been reviewed and approved by Mr. John Levings, B.Sc., FAusIMM, 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, President
Investor Information, contact:
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.
Table : Tanoyan Project Drilling Results
Figure : Sondana Vein Drill Section showing location of TND090
Figure 2: Sondana Vein Drill Section showing TND090. Grades increasing with depth.