| Mon 20 Aug 2007, 10:40 | | DRD - DRDGOLD Limited - Emperor signs Indonesian a |
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DRD
DRDD
DRD - DRDGOLD Limited - Emperor signs Indonesian alliance agreement
DRDGOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
JSE trading symbol: DRD
ISIN Code: ZAE000058723
Nasdaq trading symbol: DROOY
("DRDGOLD" or "the company")
EMPEROR SIGNS INDONESIAN ALLIANCE AGREEMENT
Emperor Mines Limited ("Emperor"), a 78.72% indirect subsidiary of DRDGOLD
listed on the ASX Limited, today reports that it has signed an Alliance
Agreement with a group of Indonesian and Australian investors to explore a
large gold-silver-copper project in eastern Java.
The Alliance Agreement between Emperor, Indonesian company PT Indo Multi
Niaga and BVI company IndoAust Mining Limited sets out the framework for
entering into a Joint Venture Agreement and undertaking further exploration
on a property of approximately 116km2 located in the South Eastern portion
of Java.
The agreement paves the way to a full Joint Venture Agreement, which would
see Emperor spend up to A$5million over five years, to earn a 51% interest
in the project. An option exists for Emperor to earn a further 19% interest
in the project by funding additional exploration. Emperor may then fund
Feasibility studies to a capped amount, subject to certain conditions
including the obtaining of relevant permits and licences.
Emperor Executive General Manager - Exploration and New Business, Malcolm
Norris, said that the property has been previously explored and drilled by
Golden Valley Mines and by Placer Dome during 1999/ 2000, with highly
encouraging results.
"Historical drilling has defined a broad zone of approximately 2km x 2km of
near surface Au-Ag mineralisation at the site, which will be the focus of
ongoing drilling activity under the Alliance Agreement during the remainder
of 2007 and early 2008," Mr Norris said.
"We undertook diligence reviews of this prospect and the associated
alliance agreement in June and July of this year, and are pleased to have
now confirmed our position as an alliance partner in the project.
The Au-Ag system is interpreted as an upper level high-sulphidation system,
overlying a porphyry copper system. Previous drilling results (see full
results below) include:
- 278.6m @ 0.53g/t Au, 29 g/t Ag, which includes 24m @ 1.55g/t Au, 106g/t
Ag;
- 87m @ 1.81g/t Au & 12.66ppm Ag, which includes 15m @ 6.24g/t Au, and;
- 48m @ 1.9g/t Au.
The porphyry system, which outcrops adjacent to, and below, the drilled
gold-silver system is mineralised with rock chip sampling returning results
of 47m @ 1.29%Cu and 1.71 g/t Au.
Mr Norris said that on-site preparations for further drilling are complete
and drilling will commence as soon as possible.
Additional targets and zones of Cu-Au anomalous stream sediment samples
exist in areas adjacent to the drilled zone and these will be further
explored with a view to defining additional drill targets as soon as
possible.
Emperor Chief Executive Officer, Brad Gordon, said that the project was an
exciting opportunity for Emperor, and formed an important part of Emperor`s
plans to rebuild its asset portfolio.
"This project is consistent with Emperor`s plans to expand into the South-
East Asian region, and while still focusing on gold as the major metal
target, does provide diversification into silver and copper," Mr Gordon
said.
"The project is now at an advanced exploration stage and through this
agreement we will accelerate work on the project to determine defined
resources as quickly as possible," he said.
DRILLING RESULTS
Drill From To (m) Interval Au, Cu, Ag, Comments
Hole No. (m) (m) g/t % ppm
GT 001 64 100.35 36.35 0.2 Anomalous Au
in much of
hole
GT 002 Minor Cu
anomalous
intervals; no
significant
results
GT 003 120.7 345.7 225 0.26 0.19 Drilled near
Pulau Merah
Porphyry
zone; locally
anomalous Mo
includes 168.45 285.7 117.25 0.32 0.27 Peak Cu 0.85%
GT 004 8.4 287 278.6 0.53 37.9 Peak gold
value 4.33g/t
includes 56.4 104.7 48.3 1.17 80.4
GT 005 25.1 82.1 57 0.71 -
103.1 190.1 87 1.81 12.66
includes 163.1 178.1 15 6.24 Peak gold
value
10.13g/t
GT 006 Minor Cu
anomalous
intervals; no
significant
results
GT 007 2 87.6 85.6 0.25 Minor
anomalous Cu
GT 008 Anomalous Au,
Cu, Ag
intervals; no
significant
results
GT 009 124 144 20 0.4 20 High
sulphidation
alteration
GT 010 0 48 48 1.9 9 High
sulphidation
alteration
48 129 81 0.26
GT 011 68 136 68 1.04 54 Incomplete
assay data
144 174 30 0.22 4
GT 012 26 44 18 0.27 16 Incomplete
assay data
102 146 44 0.14 98
208 254 46 0.24
GT 013 102 134 32 0.36 29 High
sulphidation
alteration
GT 014 16 46 30 0.91 31 High
sulphidation
alteration
FURTHER INFORMATION
Patrick Bindon
Director - Corporate Communications
Emperor Mines Limited
PH +617 3007 8000
FAX +617 3007 8080
pbindon@emperor.com.au
COMPETENCE AND RESPONSIBILITY
The information in this report that relates to Exploration Results is based
on information compiled by Malcolm Norris, who is a member of The
Australasian Institute of Mining and Metallurgy.
Malcolm Norris is a full-time employee of Emperor Mines Limited.
Malcolm Norris has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the "Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves". Malcolm Norris consents to
the inclusion in the report of the matters based on his information in the
form and context in which it appears.
Randburg
20 August 2007
Sponsor
BDO QuestCo (Pty) Limited
Date: 20/08/2007 10:40:01 Produced by the JSE SENS Department.
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