Indonesian authorities have granted approval for partners H-L Corp. (CDN) and Jonpol Explorations (TSE) to begin exploring two claim blocks in East Kalimantan.
The blocks comprise 1,047 hectares within Bre-X Minerals’ (ASE) original contract of work, 10 km north of the Busang gold deposit. After completing its due diligence with respect to title to the claim blocks, H-L will grant Jonpol an option to acquire a 35% interest in this, and its other Indonesian holdings, for $100,000. Jonpol must also spend $2 million on the claims over a 3-year period.
H-L will begin exploring the Kalimantan property immediately through its Indonesian mining consulting affiliate. A 3-phase program will be implemented. The first phase will consist of prospecting and geological mapping, hand-auger soil sampling and laboratory testing. The second phase will consist of drilling overburden holes down to bedrock using a skid-mounted portable drill machine capable of penetrating to a depth of 50 metres. Finally, H-L will drill 20 diamond drill holes in prospective areas, if previous results warrant.
Jonpol has agreed to issue, by way of private placements, an aggregate of 2 million units. Each unit consists of one common share and one half warrant.
Meanwhile, diamond drilling is under way at Jonpol’s 49%-owned silver-lead property in the Mexican state of Durango. The program also involves sampling three known veins, and Jonpol has already intersected the silver-lead vein structure in the first two holes drilled.
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