Geology and mineralisation of the Mewet Vein, Jelai Gold Project ...

PT GMT Indonesia
Mewet Vein : Jelai Gold Project
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SUMMARY
The purpose of this report is to review the geology and existing data from exploration of the
Jelai Gold Project, specifically the Mewet Vein area and to analyse the controls on
mineralisation contained within a segment of the vein where sufficient data exists to allow a
detailed study. The Jelai Gold Project is located 1,550 kilometres northeast of Jakarta, the
capital city of Indonesia, close to the east coast of the Province of East Kalimantan. The centre
of the Jelai Gold Project is located at approximately E 117° 00’ 00” and N 03° 10’ 00”.
The concession area is held by PT Jelai Cahaya Minerals, which is beneficially controlled by
Kalimantan Gold Corporation through a system of agreements with the Indonesian-owned
company JCM, as a kuasa pertambangan (or KP, literally translated as a “mining licence”). The
licence was issued on the 4 th June 2007 for a period of 2 years, which is extendable.
The Jelai Gold Project covers a series of low sulphidation epithermal veins with anomalous
precious metal values hosted within andesitic volcanics. The mineralisation is characterised by
quartz veins and vein breccias, generally with an argillic alteration halo. The exploration
programme conducted by JCM has specifically targeted this style of mineralisation in the area
and follows up previous work, including drilling, completed in the late 1990’s.
The current database for the Jelai Gold Project contains 115 drill holes in different areas of the
vein system. From these holes, 26 drill holes were completed by previous explorers for an
advance of 3,901.52 metres with a further 89 drill holes completed in the second phase of
drilling by JCM for an advance of 8,273.03 metres. The drilling in the Mewet Vein itself was all
oriented to the east, with the original drilling on 50 metre sections. Hole inclinations ranged
between 55-70° but were mostly inclined at 60°.
The Mewet Vein crops out on the side of a small, north-south trending, ridge. The vein consists
of small discontinuous outcrops of colloform banded chalcedony with adularia in the drilled area.
The mineralisation in the Mewet Vein comprises a discrete lode structure containing mixed
hydrothermal vein breccia, massive quartz veins and colloform-crustiform quartz veins in a zone
trending generally north-south and dipping at approximately 60° to the west
Over the strike length of the vein a pinch and swell effect is observed with the width being
variable at a similar RL along the strike of the vein. High gold values from the drilling were
returned from finely banded, colloform-crustiform, quartz-adularia veins with the highest gold
values occuring in zones of multiphase brecciation of the colloform banded quartz which are
healed by chalcedonic quartz and adularia. Silver grades are sporadic with the most elevated
values occurring with the high grade gold in finely banded, sulphidic, quartz veins.
The assessment of data has outlined an exploration target of between 900,000-950,000 tonnes
of mineralisation with a gold grade of approximately 3 g/t and an accompanying silver grade of
approximately 3 g/t. The Mewet vein target remains open along strike in both directions.
The programme of exploration conducted by JCM has successfully outlined a number of areas
of coherent mineralisation in the Jelai Gold Project area, of which one example is the Mewet
Vein. The initial aims of the programme have been met, that is, to define the vein structures in
the near surface environment and prepare targets for deeper drilling. Further work is
recommended, with a budget of approximately USD 3.45 million to advance the project to a
scoping study completion.
0065 JCM/GEO/2009.04 Page 7