A geological mapping program at Central China Goldfields’ Cikoleang Gold Prospect in east Java is concentrating on known underground gold vein areas as well as those on the surface.
The purpose of the program is to extend the known gold-rich veins besides identifying new zones of enrichment and mineralization.
Previously, Central China Goldfields collected about 22 ore samples of outcrops and material exploited at the mine by artisanal workers during an initial evaluation stage.
The high gold value samples have returned up to 77 grams/tonne gold. About seven samples produced between 1 gram/tonne and 22.2 grams/tonne of gold. Between 5 grams/tonne and 398 grams/tonne silver were reported by about 15 samples.
The vein samples produced between 1 gram/tonne and 3 grams/tonne of gold. One lead-zinc-silver sample contained about 24% zinc and produced 105 grams/tonne silver. An additional 1 metre-wide lead-zinc-silver vein was also identified in the area that contains up to 35% zinc.
In order to determine the possibility of moving the project into an early production phase, Central China Goldfields has entered into an exclusive option agreement with local company PT Fino Bersaudara. The deal was entered into with an option of signing a definitive joint venture agreement within six months.
The joint venture will be 25% owned by Fino and 75% by Central China Goldfields. As part of the agreement, Central China will carry out detailed geological mapping besides legal and financial due diligence. Upon signing of the joint venture, Central China will pay $45,000 to Fino. This will be followed by monthly payments of $5000 from the third month onwards, for a total of $20,000.
The initial $2 million of expenditure will be funded by Central China. Expenses beyond this will be funded by joint venture partners in proportion to their corresponding interests.
Cikoleang is a 7981 hectare mining tenement in Banten province, about 100km south-east of Jakarta. The mine is within the Bayah Dome gold mining area and neighbours the closed Cikotok gold mine and the active Cirotan and Gunung Pongkor mines.