Paramount buys 85% stakes in Gunung Rosa gold project
Thursday, August 4 2011 - 02:14 AM WIB
Gunung Rosa is a high grade gold and silver project located 125 kilometers south of Jakarta. It contains the historic Cikondang Gold Mine that was first operated by Dutch colonials in the early 1900?s. Further underground development was established by the Japanese who extracted gold and base metals during World War II.
An Australian and Indonesian consortium, in 1991-1992, spent over A$10 million to develop the project. The consortium conducted 63 diamond drill holes, 2,500-meters of vertical and horizontal underground development, and a drift level to explore the main zone for a further 700-meter south of the Dutch/Japanese workings.
Data from 34 of the diamond holes that intersected the mineralized vein and achieved core recoveries of greater than 80%, reported an average true thickness of 2.26 meters with an average grade of 14.7 g/t gold, 34.4 g/t silver and 3.7% zinc.
The mineralized structure is a steeply dipping high grade gold-silver and base metal mesothermal vein style deposit in excess of 900 meters in strike length.
The project was considered financially viable and construction design was completed by two previous owners, however the financial crisis in early 1991-1992 followed by the Bre-X scandal in 1996-1997 caused postponement of project financing and construction for both previous owners.
?Projects of this caliber are available only very rarely. The Gunung Rosa Project compares favourably to Kingsrose Mining Ltd?s Way Linggo Project in South Sumatra which had a starting base of less than 200,000 Ozs of gold resources,? Paramount?s Chairman, Mo Munshi, said.
The Way Linggo Project is now producing gold at cash costs of $145 per ounce and KRM?s market capitalization is in excess of A$370 million.
?This project provides the opportunity to develop a high-grade gold, silver and base metal project in Indonesia,? Mo Munshi said. (romel)