Vancouver — In North Sumatra, Indonesia,
The high-grade, sedimentary-exhalative massive sulphide deposit, which has been defined by 52 drill holes, is part of the Dairi project. Annax holds an 80% interest in the 350-sq.-km project and is funding all exploration. The remaining interest is held by PT Aneka Tambang, the Indonesian state-owned mining company, which can increase its stake to 30% at the prefeasibility stage by reimbursing 15% of the exploration costs. Australian-listed Herald Resources holds a 71.03% (fully diluted) equity interest in Annax.
Annax is engaged in a 15,000-metre drill program budgeted at $2.5 million. The objective is to double the zinc resources at Anjing Hitam and drill-test the Bongkaras and Lae Jehe prospects. Annax is raising money to finance ongoing drilling. Some of the funds will likely come from Herald Resources, which holds 4.5 million warrants that are expected to be exercised prior to their expiry date.
The Dairi property is 120 km south of the capital city of Medan and can be reached via an unpaved road from the town of Sidikalang.
Since the initial discovery in late 1997, Annax has spent $3 million on a program of geologic mapping, geochemical surveys, ground and airborne geophysical surveys and 10,760 metres of drilling. Most of the exploration was focused on the southern portion of the 3.5-km-long Sopokomil trend, where the Anjing Hitam deposit is situated. Based on 28 holes, Annax calculated an in-house indicated resource of 7.5 million tonnes grading 16.7% zinc and 10.3% lead. An additional inferred resource was estimated at 2.5 million tonnes grading 11.3% zinc and 6.8% lead. The holes were drilled on 50-to-100 metre centres, and cutoff values were set at 5% zinc-equivalent, with 1% lead being equivalent to 0.4% zinc. The deposit is 800 metres long and up to 250 metres wide (downdip extent), with an average true thickness of 12 metres. Mineralization remains open along strike to the north and south.
Metallurgical tests by Western Metals of Australia returned an 87% zinc recovery and a 74% lead recovery using a primary grind whereby 80% of the material would pass through a 35-micron screen. No deleterious elements were detected.
The deposit is hosted in a north-trending succession of sediments that dip toward the east. Three stratabound zones of mineralization consisting of massive-to-laminated pyrite, sphalerite and galena occur in the central portion of a 50-to-70-metre-thick sequence of shale. Underlying the shale unit is a limestone-dolomite sequence that hosts moderate replacement-style zinc-lead mineralization.
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