THE GLOBAL SEARCH FOR GOLD SPECIAL — Atlanta and Voisey Bay plan joint venture in Indonesia

Junior companies Atlanta Gold (AAG-T) and Voisey Bay Resources (VSY-V) plan to form a joint venture with Bermuda-based Indotan to acquire, explore and develop nine properties in Kalimantan, Indonesia.

Atlanta and Voisey Bay have already concluded negotiations on the package of properties, which they describe as having “superior geological merit.”

The package comprises 220,000 ha, 125,000 of which were released by the Indonesian Mining Ministry from their “status quo” landbank in three separate properties. The partners describe status quo lands as properties set aside by the mines ministry because of their geological and strategic merit based, in most cases, on significant previously documented work.

The other six properties were previously owned by private Indonesian interests, including two properties totalling 53,000 ha near the Kelian gold mine operated by CRA-RTZ. CRA’s Indonesian partner in the Kelian mine is reported to have made these two properties available to Atlanta and Voisey Bay through Indotan.

Atlanta and Voisey Bay intend to explore the properties using sophisticated geological techniques in a program operated by geologists with Carlin trend-type experience.

A priority target has already been identified on a polymetallic prospect where 21 rock samples average 4.9 grams gold and 400 grams silver per tonne, with strong associated copper, lead and zinc. Another target is the Upper Mahakam block in north-central Kalimantan, which is described as having structural similarities to the Busang gold deposit. Also, several anomalies have been identified on the Indah property, in the northeast region of Kalimantan previously worked by Dutch geologists.

The agreement, which is still subject to regulatory approval, calls for Atlanta and Voisey Bay to contribute equally to all costs for the contracts of work and maintenance. This will include the refundable deposit (or replacement of deposits previously made) with the Indonesian government in the amount of US$971,750 and US$2 million for the first two years’ worth of expenditures on the property.

The juniors must also pay US$450,000 upon proof of title to the mineral interests, along with staged payments totalling US$775,000 to Indotan by year-end and a payment of US$125,000 to each of two property vendors.

The properties will be subject to a net smelter royalty, payable to Indotan, of 2% on 80% of the net smelter returns. The agreement also calls for the juniors to issue shares and warrants to Indotan in stages.