Archipelago estimates higher resources at Toka Tindung Mine

UK-based mineral resources firm Archipelago Resources Plc announced a ?significant increase? in mineral resource estimates for two of its five deposits at the Toka Tindung mine in North Sulawesi.

?The increase in resources at the Toka Tindung and Kopra pits is an excellent result, achieved in a relatively short period. This initial drilling results post construction, are encouraging and confirms our view that our Toka Tindung Mine has considerably longer ?life of mine? than the seven years outlined by the original feasibility study,? said Marcus Engelbrecht, Managing Director and CEO of Archipelago Resources.

The company, which is listed on the AIM market of the London Stock Exchange, said the resource at the Toka Tindung pit has increased to 38.2MT @ 1.2 g/t Au (gold) for 1.47M contained oz Au (and 2.4 g/t Ag (silver) for 2.98 M contained oz Ag).

The Kopra deposit resource has also increased to 3.63MT @ 3.3 g/t Au for 388k contained oz Au(and 8.3 g/t for 969 k contained oz Ag.

If silver is excluded, the contained gold resources have increased by 99 percent at the main Toka Tindung deposit and 313 percent at Kopra.

The measured and indicated resource categories have increased by 79 percent to 1.31 M contained oz Au for the Toka Tindung pit; and by 186 percent to 260,000 contained oz Au for Kopra.

The company said the significant increase to the Toka Tindung and Kopra resources support a view of the overall reserve inventory, that is likely to be on the upside.

In addition to the main Toka Tindung pit, the current mine plant at Archipelago?s Toka Tindung Mine includes four additional pits, i.e: Pajajaran, Araren, Blambangan and Kopra. All pits are located near to the processing infrastructure.

Since March this year, Archipelago expanded its drilling efforts at the Toka Tindung Mine, targeting prospective nearby mineralized deposits. The company has spent US$ 9 million for the exploration works at the mine site. Drilling has been expanded to Pajajaran, Araren and Blmbangan that may lead to further increases in resource estimates. (romel)

2011 Resource Estimates for Toka Tindung & Kopra Deposits

Category	Tones (000's)	Au g/t	Contained Au oz (000's)	Ag g/t	Contained Ag oz (000's)	Contained Au Eq oz (000's)
TOKA TINDUNG DEPOSIT
Measured	17,400	1.5	819	3.2	1,780	850
Indicated	16,100	1	492	1.9	993	510
Inferred	4,700	1.1	167	1.4	212	172
TOTAL	38,200	1.2	1,470	2.4	2,985	1,532
KOPRA DEPOSIT
Measured	0	0	0	0	0	0
Indicated	2,270	3.5	255	8	552	270
Inferred	1,360	3	133	9	417	140
TOTAL	3,630	3.3	388	8.3	969	410
These resource estimates have been prepared in compliance with JORC requirements and reviewed by a "Competent Person."? Estimates have been prepared based on a (i) gold price of US$1,150 per ounce, and (ii) silver price of US$25 per ounce.? The Company owns 95% of the Toka Tindung mine (and therefore 95% of the Toka Tindung and Kopra deposits)