Bre-X has million-ounce resource at Busang project

An independent consultant has determined the Central zone of the Busang gold project in East Kalimantan, Indonesia, has a drill-inferred geological resource of 10.3 million tonnes averaging 1.92 grams, to a depth of 150 metres.

Project owner Bre-X Minerals (ASE), a 26%-owned affiliate of Bresea Resources (ME), said the calculation was based on 45 holes within a 650-metre section of the 900-metre-long Central zone. The remaining 250 metres were not included in the calculation, as drill data were deemed insufficient. When the 1-gram-per-tonne cutoff grade used in the above estimate is dropped to 0.5 gram, the resource estimate climbs to 14.5 million tonnes averaging 2.29 grams, yielding 1.1 million oz. In both calculations, gold grades are said to be recoverable.

The Central zone remains open at depth. All of the five holes previously completed to depths of 306 metres intersected mineralization. Bre-X officials believe the Central zone could host an additional resource of 1 million oz., between 150 and 250 metres below surface.

Bre-X has started a 44-hole, 4,965-metre program of extension and infill drilling, which is expected to be completed by mid-May. The purpose of the program will be to outline an open-pit resource of 1.5 to 1.7 million oz. to a depth of 150 metres, within the 900-metre-long Central zone. Once the program is completed, a third drill will be moved onto the property. All three drills will then be employed in the Southeast and North zones, which have a combined strike length of 6.5 km.