Palmer tests Cikoneng gold prospect

The second hole drilled on the Cikoneng gold-silver prospect at the Cibaliung property in West Java, Indonesia, has intersected a true thickness of 14.85 metres grading 11.3 grams gold and 88.51 grams silver per tonne, beginning at a depth of 76.3 metres.

Palmer Resources (PMD-V) is drilling a minimum of three holes in an effort to test the central portion of the Cikoneng prospect, where local miners are exploiting a series of high-grade, colloform-banded, epithermal veins.

A high-grade section in hole 2 averaged 16.43 grams gold and 95.24 grams silver over a true width of 4.05 metres. The hole was abandoned in mineralization at a depth of 99.4 metres after the drill bit was lost. The last sample interval, from 98.5 to 99.4 metres, averaged 42.1 grams gold and 206 grams silver.

Hole 2 was collared about 60 metres northwest of the first hole, which returned a true width of 5.59 metres grading 10.62 grams gold and 90.75 grams silver, starting at a depth of 35.8 metres.

The third hole has stepped out 60 metres southeast of hole 1, and is in progress.

A 90%-owned Indonesian subsidiary of Palmer holds the right to earn a 70% interest in the Cibaliung property by spending US$1.6 million over two years.

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