VANCOUVER, Nov. 29, 2012 /CNW/ - Reliance Resources Ltd. (the "Company") (TSX:RI) is pleased to announce recently received gold assays, which have confirmed the discovery of significant high grade gold mineralisation in the Central Sondana vein; Tanoyan Gold Project; Indonesia.
Diamond drill hole number TND 106 intersected a broad zone of gold-bearing quartz veins which contains within it, a substantial high grade zone:
Full details of the results are located in Table 1.
This intersection is one of the strongest so far obtained on the Tanoyan property and also has important implications for the geological understanding of the Sondana gold vein system. As can be seen in the longitudinal projection of the Sondana vein in Figure 1, drillhole TND 106 extends the high-grade zone originally discovered in hole TND 063 (7.2m at 7.3 g/t Au).
Importantly, the TND106 result infers continuity between the strong gold mineralisation in North Sondana and Central Sondana at intermediate depths. This inference will be tested by further drilling as part of the Company's current, 10,000 metre, Phase 2 drill program. The program is designed to build on the independent NI 43-101 Inferred Mineral Resource (4.58 Mt at 1.41 g/t Au) of 208,000 ounces of gold (March, 2012).
The TND 106 intersection highlights a substantial thickening of the mineralised zone between a shallow intersection in TND104 and a deep intersection in historical drillhole TND034 (see Figure 2). This continues a geological pattern encountered in North Sondana, where the thickest and highest grade gold intersections tend to occur at intermediate depth, starting approximately 50m below ground surface.
Reliance Resources CEO Mr. Gary Lewis said: "It is very encouraging to be able to update shareholders with this important result. Besides being one of the best holes ever from Tanoyan, it has led to important new understanding of the Sondana vein, and points to future exploration success and increase in mineral resources. The consistency of high-grade gold mineralisation is further demonstrated by this result which will be important when it comes the time to commercialise the Tanonyan gold deposits. The geological lessons being learned in Central and North Sondana put us in a good position as we explore further north along the Sondana vein structure.
"Based on continued good results, Reliance has engaged consultants to complete a set of studies which will be submitted to the Indonesian Government and will lead to the conversion of the Tanoyan property from exploration to exploitation (production) stage."
The Tanoyan Gold Project consists of an extensive system of auriferous quartz veins, comprising four principal vein systems, Sondana, Ramai, Modupola/Talong and Lingkobungon. These veins are predominantly orientated northeast and dip steeply or moderately to the northwest or southeast. The veins are hosted by andesitic volcanic rocks and have been mapped over a combined strike length of approximately 6 kilometres.
The Phase 2 drilling program is aiming for a significant upgrade to the existing NI 43-101 resource by targeting extensions to drilled sections of the veins, which have been identified along strike and at depth on all vein systems. Previous drilling has primarily been tightly focused on the Sondana and Modupola veins and the current Phase 2 program will extend drilling into all target areas.
The resource model at the Sondana and Modupola veins is open at depth for most of its length, especially in the north of the Sondana vein, where significant drill intersections from Phase 1 drilling are located. The Phase 2 drilling program is designed to test at depth for extensions of mineralisation which have been mapped on surface and in locations where earlier drilling has shown the mineralisation is open at depth. Infill drilling should confirm the strike continuity of vein systems and thereby improve the classification of the mineral resources.
Reliance has a portfolio of five mineral tenements covering 68,000 acres on the islands of Sulawesi and Halmahera in East Indonesia. The Company owns a 75% direct equity interest in both the Tanoyan and Anggrek properties and a 90% direct equity interest the Polopo property in Sulawesi. In the two Halmahera properties, Roko and Kapa Kapa, Reliance has an 82.5% beneficial joint-venture interest through a 100% Reliance-owned Indonesian subsidiary. The projects offer both exploration potential and an existing resource base. All five projects are adjacent to or along strike from operating gold mines or identified gold resources with similar geology and structural feature. Importantly, all projects have been converted to IUP tenements as required under the new Indonesian Mining Act (2009).
The Company is active on three of its five Indonesian gold projects; currently drilling on the Tanoyan Gold Project and conducting surface exploration programs on the Kapa Kapa Gold-Silver Project and the Roko Gold Project. All of the Reliance proprties have easy access via paved and/or gravel roads and regional infrastructure is good.
This press release has been reviewed and approved by Mr. John Levings, B.Sc., FAusIMM, director of Reliance Resources Limited and a Qualified Person as defined by National Instrument 43-101, under whose direction the exploration programs are being carried out.
The statements herein that are not historical facts are forward-looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the Company's periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.
Table 1: Tanoyan Project Drilling Results
| DH No. | Vein | From | To | Interval | Au |
| (m) | (m) | (m) | (g/t) | ||
| TND106 | Sondana | 29.00 | 29.80 | 0.8 | 1.4 |
| and | 68.65 | 69.30 | 0.65 | 1.5 | |
| and | 100.05 | 143.00 | 42.95 | 1.6 | |
| incl | 135.5 | 141.70 | 6.2 | 8.1 |
PDF available at: http://stream1.newswire.ca/media/2012/11/29/20121129_C4639_DOC_EN_21342.pdf
PDF available at: http://stream1.newswire.ca/media/2012/11/29/20121129_C4639_DOC_EN_21343.pdf
SOURCE: Reliance Resources Ltd.
Media Information, contact:
Gary Lewis, CEO
[email protected]
Investor Information, contact:
Adam Holdsworth
[email protected]
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