Bre-X ups resource at Busang

An independent consultant has updated the resource at the Busang gold property in East Kalimantan, Indonesia.

Owner Bre-X Minerals (ASE) estimates that, based on a cutoff grade of 1 gram gold per tonne, the Central zone holds an indicated resource of 16.21 million tonnes averaging 2.77 grams, plus an inferred resource of 14.7 million tonnes averaging 2.46 grams.

The combined resource of 30.91 million tonnes averaging 2.62 grams lies within a proposed open pit measuring 850 metres in length and 150-300 metres below surface.

The calculation was completed using geological and assay data from 76 HQ-sized (63.5-mm) drill holes, with spacings at 50-metre centres and infill holes drilled at 25-metre intervals where warranted. Information from another 18 holes and two deeper drill holes was also used in the calculation. In total, information from more than 14,000 metres of drilling was used to calculate the resource.

At present, three rigs are drilling at a combined rate of 3,000 metres per month. One rig continues to work on the Central zone while the two others are active on the 4.5-km-long Southeast zone. Bre-X expects to accomplish 13 drill fences spaced at 250-metre intervals along a 3-km section of the Southeast zone.

The company is confident that after drilling an additional nine holes and deepening a number of others on the Central deposit, potentially open-pit resources will rise to 3 million oz. from the current inferred and indicated figure of 2.3 million oz.

Furthermore, Bre-X anticipates that by the end of November of this year, it will be able to announce that the Busang project hosts 6 to 8 million oz. gold in several reserve categories.