Zircon Prospect Areas

The Approved mineable lease area ( APL ) of 745.30 Ha ( PT KSS ) and 336.50 Ha ( PT AGROMAS ) in  the Kabupaten Katingan, Kalimantan Tengah lies between the below mentioned coordinates :

 PT KSS

No	Lat	Long
1. 2. 3. 4.	S 1 55 26.7 S 1 55 26.7 S 1 57 07.7 S 1 57 07.7	E 113 13 21.7 E 113 14 20.3 E 113 14 20.3 E 113 13 21.7

Regional Geology

The tenement areas are situated on a sequence of alluvial sand and sandy clays near the eastern margin of the Schawaner Mountain,  sequence of Early to Late Cretaceous granites and tonalities intruded into Paleozoic rocks. The immediate provenance of the recent alluvial sequences, the target area exploration is the Schawaner Mountains to the west and possibly some Plio-Pleistocene volcanic to the north. Throughout the Indonesian archipelago Cretaceous zircon are well documented as originating during the Cretaceous tonolitic intrusions which in Kalimantan are present in the Schwane Mountain.  Gold is also found in this part of sequence as evidenced by all the artisanal sluicing operations.

There are two potentail zones identified and named as the Upper Zone (UZ) and the Lower Zone (LZ). The UZ is interpreted to be a leach zone where the clay has been broken down leaving residue of quartz, zircon and some gold traces. The leaching has been aided by the acid water formed by the leaf litter (humic acid) with some leached silica descending and forming the silcrete at the base. The silcrete forms concretions and is locally iron rich.

The LZ consists of grey to dark grey sandy clays and clayey sands with pebble beds. The Sedimentary structures, where exposed, are interpreted to show a braided river depositional environment with clean coarse grained point bars with mixed clay sand infill.  The LZ is thought to be, after the weathering process, the source of the UZ. This implies that the LZ contains zircon and gold.

  Exploration Proposal

From the priliminary prospecting and field studies, an detailed exploration plan is framed out to asertain the economic reserves of the deposit in both APL areas.  Initial  exploration is confined to 50 Ha  and 100 Ha (approx) viz PT AGROMAS and PT KSS in the prospective zone where approach and transportability could be made immediately.  Exploration is  scheduled to proceed stage wise targetting 10 Ha on each stage, so as to enable simultaneous mining operation.  

A wide grid drilling pattern ( 90 m x 120 m ) is propsosed to accomodate maximum area and facilitate the commencement of mining operation at the earliest in both the APL areas. Inter grid drilling will be proposed on later stage depending on the behaviour of the deposit. Drill hole sampling is proposed to be done at every 30cm interval in the ore zone, may vary with respect to the ore nature and conditions prevailing during drilling . In Non-mineralised zone one sample will be collected to the full thickness of the zone to understand the content of the layer.

Proposed Exploration Pattern PT AGROMAS:

·         Out of the 336.50 Ha , 266 Ha has been subdivided in to 29 Blocks comprising approximately 10 Ha each

·         Each Block is named as AM1 , AM2 , ...etc.  Exploration will be concentrated on Identified Mineral Enriched zone covering Block Nos. AM 10, AM 11, AM 17, AM 18 and AM 19.

·         These Blocks put together make an total area of 45.80 Ha

·         There will be four column and four rows of drilling.

·         Totally 61 number of Bore holes are propsed to explore this 45.30 Ha.

·         Each bore hole will be drilled approx 10 mtrs depth , may vary with condition on location and mineral persistance.

·         Each borehole is expected to be completed in 3 - 4 days . hence the proposed exploration programme for 45.30 Ha is expected to be completed in 250 days provided no major break downs of drilling machine or abnormal natural calamities. First stage Exploration of 10 Ha is expected to be completed within 50 days from the date of commencement.

·         Considering an average thickness of 3 - 4 mtr of mineralised zone as understood from the prospecting survey’s , for every bore hole at 30cm interval around 12 samples will be collected. In total, 180 samples ( 10 Ha ) are expected to be collected and to be analysed in our laboratory.

RESERVE ESTIMATION – PT AGROMAS

The above exploration proposal is expected to reveal the Reserves as below

Total Area  = 10 Ha   = 100,000 sq.m

Potential Zone / Mineraliesed zone = 3 m

Volume   = 300,000 cu.m

Bulk Density   = 2.0

Total Quantity  = 600,000 MT

Average Percentage of Zircon   = 1 %

Expected Reserves in One block  ( 10 Ha )=  6000 MT

Considering the same for the entire APL area i.e 336.50 Ha

Expected Reserves = 202000 MT

Proposed Exploration Pattern PT KSS :

·         Out of the 745.30 Ha , 150 Ha has been subdivided in to 16 Blocks comprising approximately 10 Ha each

·         Each Block is named as KSS1 , KSS 2 , ...etc.  Exploration will be concentrated on Identified Economic zone covering Block Nos. KSS4, KSS 5, KSS 6, KSS 7, KSS 8 , KSS 9, KSS 10, KSS 11, KSS 14, KSS 15 and KSS 16.

·         These Blocks put together make an total area of 103.10 Ha

·         Bore holes are placed with respect to each block dimension in a wide grid pattern.

·         Totally 141 number of Bore holes are propsed to explore this 103.10 Ha.

·         Each bore hole will be drilled approx 10 mtrs depth , may vary with condition on location and mineral persistance.

·         Each borehole is expected to be completed in 3 - 4 days . hence the proposed exploration programme for  103.10 Ha is expected to be completed in 550 days provided no major break downs of drilling machine or abnormal natural calamities. Each stage of Exploration comprising 10 Ha is expected to be completed within 40 days from the date of commencement.

·         Considering an average thickness of 3 - 4 mtr of mineralised zone as understood from the prospecting survey’s , for every bore hole at 30cm interval around 12 samples will be collected. In total, 120 samples ( 10 Ha ) are expected to be collected and to be analysed in our laboratory.

RESERVE ESTIMATION

The above exploration proposal is expected to reveal the Reserves as below

Total Area  = 10 Ha   = 100,000 sq.m

Potential Zone / Mineraliesed zone = 3 m

Volume   = 300,000 cu.m

Bulk Density   = 2.0

Total Quantity  = 600,000 MT

Average Percentage of Zircon   = 1 %

Expected Reserves in One block  ( 10 Ha )=  6000 MT

Considering the same for the entire APL area i.e 745.30 Ha

Expected Reserves = 447000 MT

Total Expected Reserves  ( PT AM + PT KSS ) = 650000 MT

Lithology / Geological Cross section – as per field survey’s

		00-01 m	Brown Clay with low to medium plasticity & sandy clays
		01-1.5 m	Sandy Clay mixed with little zircon
		Approx 1.5 - 5 m	Sand , Zircon and Clay interfill
		5 m -	Clay stone mixed with sand , blackish grey