INDONESIA - Diamond drilling to begin at Austindo's Trenggalek Gold Project

Australia "s Austindo Resources plans to begin diamond drilling at the Trenggalek Gold Project in East Java mid this year. The company has been undertaking detailed field mapping of three prospects in preparation of its diamond drilling program.

The Trenggalek exploration area in East Java, Indonesia was granted earlier this year. The project area covers 17,586 ha and is prospective for low sulphidation epithermal gold/silver deposits similar to the company's developing gold project at Cibaliung.

Several potential gold-bearing areas have been delineated in the first stage of exploration at Trenggalek.

Sampling from surface outcrops at three prospects within the project area provided very encouraging results including:

The Dalang Turu Prospect is showing it is characterized by mineralized quartz-adularia veins and veinlets (or stockwork) covering an area of 300m x 500m; and hydrothermal eruption breccias. Both contain some high grades of gold with values from rock chip sampling ranging from less than 1 gram per tonne gold to 12.7 grams per tonne gold.

At the Sentul Prospect, two main north-north-east trending quartz veins over a total length of 4km and 1 to 8m thick have been defined. Grades from rock chip sampling in the southern part of Sentul West Vein vary from 2.0-4.5 grams per tonne gold over widths up to 8m.

The Paces Prospect is showing that it is the possible source of several high grade rock float samples identified downstream. Three rock float samples collected along Duren River, which drains to the north, yielded very encouraging results; including 14 grams per tonne silver, 15.7 grams per tonne gold and 30.1 grams per tonne gold.

Pekalongan Project, Central Java

Exposure mapping and geochemical sampling continue at Pekalongan. Multiple prospects have been identified and a drilling program is expected to start shortly to test for high grade epithermal gold/silver deposits similar to the Cibaliung Gold Project.

Aissasjur Project - Papua

Austindo has a strategic alliance with the Anglo American Group to explore for large Copper-gold porphyry deposits in Papua. It has a 20% joint venture interest in the Aisasjur Project while the Anglo American Group has the obligation to fund all exploration activities pursuant to the terms of the strategic alliance.

The Aisasjur Project covers an area of 9486 hectares in the Kepala Burung area of Papua.

Geologically, the project area lies within one of Indonesia 's young tertiary volcano- plutonic arcs which are prospective for both porphyry copper-gold and epithermal gold mineralisation styles.

A drilling supply contract has been negotiated and a 4000m drilling programme is planned to start at the Aisasjur Project this month.

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