Golden Peaks Resources Limited (TSX:GL) is in the final stages of completing its 100% acquisition of Reliance Resources Limited, and upon completion of the transaction, the company will own a 75% interest in the Tanoyan Gold Project on Sulawesi Island Indonesia.
The Company is also pleased to confirm that Reliance has commenced drilling at the Tanoyan Project after extensive site work and preparatory activity which has been ongoing since December 2010 in readiness for this initial 5,000-metre drill program.
This drill program will be the first phase of drilling by Reliance and is designed to expand the initial 43-101 compliant inferred mineral resource of 91,000 ounces announced on January 13, 2011, and is expected to outline further mineralisation with drilling between sections and down-dip from previous exploration by Avocet Mining PLC (Avocet). Their previous exploration on the property included a drill program that totalled 44 diamond drill holes (6007 meters) as well geological mapping, IP geophysical surveys and trenching.
The initial focus of this drill program will be to follow-up high-grade intersections from the previous work to provide a framework for recognizing controls of high-grade mineralisation within the lode systems. Avocet's drilling was too widely spaced to allow modelling of interpreted high-grade shoots.
The first holes are designed to test for extensions of high-grade mineralisation intersected by Avocet within the Sondana Vein in hole TND002 which intersected four zones of mineralisation, including 10m @ 8.81 g/t Au from 31m and 20m @ 3.1 g/t Au from 138m.
Avocet's previous drilling should be regarded as preliminary in nature, with quite widely spaced drill holes along each Vein system.
The company believes the samples from the diamond drilling programs used in the Mineral Resource estimate are considered to be of good quality and no factors which may have resulted in sample bias are evident. Based on the steeply dipping style of the mineralisation, the interpreted widths recorded at surface are considered to closely reflect the true widths
Reliance has purchased two new diamond drill rigs and will initially use one at Tanoyan and the other at the Palopo Gold Project in South Sulawesi, currently two more drill rigs are on order. The drill rigs will be operated by an Indonesian drilling contractor (MRA) under a management and maintenance agreement with Reliance.
This press release has been reviewed and approved by Mr. John Levings, B.Sc., MAusIMM, 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.
Source: Golden Peaks Resources Ltd.