EXPLORATION ’94 — Bre-X awaits results from Busang

As the discovery of large-tonnage deposits becomes more and more difficult to pull off within Canada’s traditional mining camps, many companies are opting to seek out less-trodden areas abroad.

Such is the case with Bre-X Minerals (ASE), which holds interests in three gold properties totaling 50,000 hectares in Indonesia and which is focusing its efforts on the 80%-owned Busang prospect in the Kalimantan region of the island of Borneo.

Busang is part of a northeast-to-southwest-striking volcanic trend which hosts porphyry gold carbonate deposits, including RTZ’s 44%-owned Kelian gold property (with 71 million tonnes averaging 3 grams gold per tonne) and the Mount Munro project (which hosts 8.4 million tonnes averaging 4 grams gold and 85 grams silver per tonne).

The company has drilled to a depth of 150 metres, at 50-metre spacings, principally on a 400-metre-long altered and brecciated area known as the Central zone. Intersections from drilling have returned 9.28 grams over 8 metres, 4.52 grams over 20.8 metres and 3.51 grams over 18.2 metres, among other assays.

Busang is underlain by dacite domes intruded into folded and metamorphosed carbonaceous mudstones, shales and siltstone lenses. Mineralization is related

to fractures and fluidized breccia zones associated with the intrusives. The rocks exhibit strong propylitic and argillic alteration, and moderate-to-strong carbonate and silica alteration. Gold is associated with both carbonate and silica alteration but exhibits a higher grade (greater than 3 grams) with the latter.

Based on 30 holes, totaling 5,100 metres, and channel sampling from trenches, Bre-X management estimates the zone contains 1.5 million oz. gold to a depth of 150 metres.

The company is completing a second phase of work, which includes two deep holes drilled to check the downdip extension and grade continuity of the Central zone. Results are expected in late November or early December, and Bre-X expects the inventory will increase to 2.5 million oz. to a depth of 250 metres.

In addition to the Central area, Bre-X has found gold in the North and East zones. Early mapping has identified an extension of the central orebody to the southeast, giving the mineralized zone a strike length of 5.3 km. These structures will be explored following the second phase of drilling.