Bre-X gets more encouragement from pair of Indonesian

Exploration of the Taware Valley and Kupa prospects in Indonesia has returned encouraging results for Bre-X Minerals (TSE).

The prospects are situated on Sangihe Island in the area known as North Sulawesi.

At the Taware Valley deposit, geological mapping, rock sampling, soil surveys, magnetic surveys and diamond drilling were carried out on a copper-gold-bearing diorite porphyry stock.

Of the eight holes drilled, Hole BXH-7 returned the most significant mineralization, which included: 34 metres grading 0.12% copper and 0.51 grams gold per tonne from 2-36 metres, and 86 metres grading 0.24% copper and 1.27 grams gold from 36-122 metres.

Work to date indicates that the mineralization here is open to the south and west.

At the Kupa prospect, gold mineralization is associated with a high-level diorite intrusive. A 6-metre channel sample across a contact breccia zone averaged 30.9 grams gold. A grab sample from within the intrusive assayed 4.56 grams gold and 0.29% copper. Altered volcanic tuff wallrock yielded 0.49 grams gold and 0.10% copper.

Follow-up geological mapping and sampling over the two prospects are planned for late May and drilling is scheduled to begin in July.

By spending US$500,000, Bre-X can earn a 55% interest in the 2,828-hectare property that hosts the two prospects.

To finance additional work in Indonesia, Bre-X has arranged a $4.5-million private placement of 3 million units at $1.50 per unit. Each unit consists of one share and half a warrant exercisable at $1.75 for two years.