News ReleasePencari secures conditional approval for Seruyung
Pencari Mining Corp (TSX-V:PMC)
Shares Issued 10,203,399
Last Close 11/25/2005 $0.105
Monday November 28 2005 - News Release
Mr. Adrian Rollke reports
SERUYUNG REPORT & FINANCING
Pencari Mining Corp. has received conditional acceptance from the TSX Venture Exchange for the Seruyung acquisition and it has filed its 43-101 technical report for this property. Roger H. Pooley, BSc, FAusIMM, CP, MMICA of PT Simapertama Minindo, wrote the 43-101 report and is a qualified person as defined by National Instrument 43-101. Final acceptance is subject to Pencari raising sufficient funds to complete the phase 1 work program recommended in the technical report ($100,000 (U.S.)) and to meet its property payment obligations over the six-month period subsequent to closing ($80,000 (Canadian)). In order to meet these conditions, Pencari intends to raise $255,000 by way of a private placement of 1.7 million units at 15 cents per unit. Each unit will consist of one common share and one half warrant. Each whole warrant can be converted into one common share of Pencari for 15 cents in the first year and 17.5 cents in the second year. The proceeds of the private placement will be used to finance the first stage of the recommended work program as well as for general working capital purposes.
Previous work on the property was undertaken by Indochina Goldfields Ltd., now known as Ivanhoe Mines. These investigations indicated that the property contains significant resources of gold. Additional drilling is required to bring the status of the resources to an indicated or measured category. The Seruyung mineralization is essentially oxidized and preliminary laboratory scale testing has indicated that 95-per-cent recoveries to 99-per-cent recoveries are possible using cyanide with low reagent consumption. Geologically, the resource is one of several prospects on a lineament believed to be of Teritiary age. It is close to a phreatomagmatic breccia pipe approximately 400 metres in diameter, which appears to be the source of mineralization. The resources defined thus far are hosted in near-surface silicified, brecciated tuffs.
The Seruyung prospect is located on a prominent mountain (Gunung Seruyung), rising approximately 230 metres from the surrounding alluvial flats. Current inferred resources are contained in three areas on the Gunung Seruyung, all in close proximity, two of which may be continuous.
Summary of resources
Area Tons Grade Ounces Cut-off
grade
(million (g/t Au) (oz) (g/t Au)
tons)
Silica
cap 4,231,989 1.13 154,309 0.50
N. Collu-
vium 736,398 1.62 38,339 0.50
Southern
area 466,388 2.29 34,282 0.50
Total
inferred 5,434,775 1.30 226,930 0.50
The above resources were taken from the 43-101 report on October, 2005 (see Stockwatch, Oct. 19, 2005). The above resources were calculated using 16 diamond drilling holes. The resource on the silica cap was calculated using 12 diamond drill holes, the N. Colluvium is based on three diamond drill holes and the southern area is based on one diamond drill hole. All of the resource estimates were based on estimating only those blocks above a cut-off grade of 0.5 gram per tonne gold. Gold grades in the silica cap and southern area were cut to a top value of 5.5 grams per tonne gold. The above resources was calculated with the assistance of Micromine software, version 9.11. These are currently inferred resources, which have not yet demonstrated economic viability.
The prospect contains large-tonnage, low-grade gold resources hosted mainly in a silicified massif, which now caps the Seruyung mountain. The mineralized rocks comprise brecciated silicified tuffs. The mineralization is very fined grained free gold often occurring in the vugs.
Prospective areas
There are likely to be significant shallow resources at both Ada' Raye and Western Breccias and either of these might also have feeder zones below. Currently, no resources have been assigned to either area given the limited data of mainly trench assays.
Trenching programs on the northern margin of the diatreme breccia (Western Breccia) and in the Ada' Raye zone on the southeast side of Gunung Seruyung have returned channel sampling from two trenches returning 31 metres at 1.5 grams per tonne gold (including 15 metres at 2.52 grams per tonne gold) and 96 metres at 1.25 grams per tonne gold (including 28 metres at 3.74 grams per tonne gold). Higher-grade mineralization from these trenches is hosted within vuggy silica breccias. Previous sampling was undertaken at sample intervals from one metre to two metres throughout the trench profile. The mineralized zone in the diatreme identified is approximately 300 metres long and open ended.
The Gunung Seruyung lies 3.5 kilometres from the Sebuku river, a major river in the area, approximately 32 kilometres from the east coast of Kalimantan. The area is reached by speed boat (one hour) from Nunukan, the capital of the regency. Nunukan is a well-serviced town with markets, hotels and good communications. Access to the prospect area is good, with the Sebuku river being tidal to the prospect area and accessible by large barges.
Previous drilling results
In 1999, 41 drill holes for a total of 7,863.45 metres were completed by P.T. Frontier Asian Resources Indonesia. Frontier was previously a subsidiary of Ivanhoe Mines Ltd. Significant mineralization was intercepted in a number of drill holes, which include the following:
(Interpretation of available data indicates the vast majority of intercepts representing true widths of mineralization.)
SE001 intersected 73.45 metres at 3.07 grams per tonne gold (including 18.70 metres at 6.29 grams per tonne gold and 7.30 metres at 4.19 grams per gold);
SE002 intersected 93.03 metres at 1.15 grams per tonne gold (including 5.30 metres at 4.18 grams per tonne gold and 5.40 metres at 4.16 grams per tonne gold);
SE003 intersected 75.10 metres at 1.25 grams per tonne gold (including 21.20 metres at 2.05 grams per tonne gold);
SE006 intersected 106.90 metres at 1.50 grams per tonne gold (including 24.05 metres at 3.73 grams per tonne gold);
SE008 intersected 26.65 metres at 2.64 grams per tonne gold;
SE010 intersected 19.40 metres at 1.10 grams per tonne gold;
SE013 intersected 37.00 metres at 3.21 grams per tonne gold (including 21.62 metres at 3.94 grams per tonne gold);
SE033 intersected 22.95 metres at 1.53 grams per tonne gold; and
SE035 intersected 60.27 metres at 1.04 grams per tonne gold (including 11.60 metres at 2.41 grams per tonne gold).
Information for this new release was provided by the 43-101 report prepared by Mr. Pooley. The copy of the report can be obtained through SEDAR company filings.
Information for this new release was reviewed by Stephen Walters, MSc, MAIMM, a qualified person and director of Pencari. Mr. Walters has over 20 years experience, including being senior geologist for Newmont Mining, PlacerDome, formerly chief geologist for Scorpion Minerals and exploration manager for Twin Mining Corp.
© 2005 Canjex Publishing Ltd.