Bre-X upgrades resource at Busang

With five diamond drill rigs at work, Bre-X Minerals (BXM-T) is pushing hard to outline 50 million oz. gold, in the measured and indicated resource categories, by year-end at its Busang gold project in East Kalimantan, Indonesia.

Once this goal has been achieved, the company will make a production decision based on the results of the feasibility study being carried out by Kilborn SNC Lavalin. An intermediate report is expected in October of this year. However, Bre-X predicts that the production rate at Busang will be 2.5 million oz. annually, which would make it one of the largest gold mines in the world.

In the meantime, considerable drilling is required to upgrade the existing resource at Busang, the bulk of which is still in the inferred category.

Based on work to date, the Southeast Zone 1 (SEZ 44-64 and SEZ 4-29) and Central zones contain a combined 139.8 million tonnes averaging 2.42 grams gold per tonne (10.89 million oz.) in the measured and indicated categories.

These zones also contain inferred resources of 374 million tonnes averaging 2.34 grams (28.2 million oz.), bringing the total resource in all categories to 514 million tonnes averaging 2.36 grams, for a total of 39.15 million contained ounces.

Kilborn has completed an updated resource calculation on sections SEZ-44 to SEZ-64 within Southeast Zone 1, using a cutoff grade of 0.75 gram gold. A total of 93.8 million tonnes averaging 2.17 grams (6.57 million contained oz.) was classified as measured and indicated, while a further 304 million tonnes averaging 2.12 grams (20.79 million contained ounces) was classified as inferred.

By mid-June, a total of 52 diamond drill holes, representing 21,383 metres of core, had been completed and assayed on sections 44, 49, 54, 59 and 64. The resources mentioned above are between section lines 44 and 64, which span a strike distance of about 1,000 metres. Kilborn notes that ongoing exploration has generated this information, “which by no means should be considered complete.”

Measured resources represent blocks within 25 metres distance from the section line, with grades estimated from at least three holes. Indicated resources represent blocks within 25 metres distance from the section line, with grades estimated from at least two holes, while inferred resources are based on blocks within 125 metres distance from the section lines.

The latest calculations do not include any partially drilled or drilled sections between SEZ-29 and SEZ-44, or from lines south of SEZ-64. Bre-X also notes that the figures represent recoverable grades as cyanide extraction was used in the analysis.

This year’s drilling will include more infill drilling, as well as a 10-hole program designed to test mineralization at depth. The average vertical depth for these holes will be 1,000 metres, at 60 inclination. Southeast zones 1 and 11 will be tested, as well as possible economic mineralization at depth between these zones.