Augur Resources hits 199m at 0.46 g/t gold and copper at Wonogiri project

Augur Resources (ASX: AUK) has returned an intersection of 199.0 metres at 0.46 g/t gold and 0.13% copper from drilling from 61 metres at the Randu Kuning prospect, Wonogiri project in Central Java, confirming the extension of mineralisation along strike to the north.

Data from local geology and recent drilling indicates that the mineralisation at Randu Kuning is related to a near vertical gold-copper porphyry within a large eroded volcanic centre, possibly related to the Oligocene to Miocene volcanic arc.  

Newmont's 914 million tonne at 0.53% copper and 0.40% gold operation at Batu Hijau sits on this zone, indicating similarities to Randu Kuning.

The broad gold mineralised zone was intersected in hole WDD012 using an effective 0.17 g/t gold cut off.

The zone includes a number of significant intersections including:

- 28.0 metres at 0.64 g/t gold and 0.17% copper from 80 metres depth,
- 65.0 metres at 0.59 g/t gold and 0.14% copper from 111 metres and;
- 22.0 metres at 0.43 g/t gold and 0.10% copper from 179 metres.

Hole WDD012 was drilled to test the northern extension of the mineralisation and holes WDD013 and WDD014 were drilled to test for extension of mineralisation to the south.

Hole WDD013 intercepted anomalous gold including a 0.5 metre interval of 3.32 g/t from 38.5 metres and 2.0 metres at 0.58 g/t gold from 72 metres.

Hole WDD014 was drilled up dip of the previously reported Hole WDD011 and intersected several anomalous zones of mineralisation including 1.0 metres at 0.38 g/t gold and 0.21% copper from 151 metres and a further 1.0 metre at 0.63 g/t gold from 157 metres.

The Wonogiri project lies within the Sunda-Banda arc and covers and area of 3,928 hectares. The area is considered prospective for epithermal gold and porphyry copper-gold mineralisation.

This is similar to a number of significant porphyry deposits along this zone including Newmont’s Elang deposit on the island of Sumbawa and Intrepid Mines' (ASX: IAU, TSX: IAU) Tujuh Bukit (990Mt at 0.40% copper and 0.45g/t gold) in eastern Java.

Drilling continues to test the northern extensions of mineralisation along strike of the Randu Kuning porphyry.

Preparations have commenced for a third rig to test the shallow epithermal targets in the Wonogiri North area.

Preliminary metallurgical testing has commenced on the porphyry mineralisation at Randu Kuning.

Previous exploration completed by PT Oxindo from 2009 to 2010 targeted copper porphyry mineralisation within the northern portion of the licence.

PT Oxindo undertook detailed mapping, soil sampling and geophysical work which culminated in a five hole diamond drill program to test a number of modelled magnetic high bodies.

Augur has an agreement to earn a 51% interest of the project after the expenditure of US$1.5 million within 12 months from 15 December 2010 and can earn an 80% interest in the project with the expenditure of a further US$2.0 million with 24 months of 15 December 2010. No upfront payment or issue of shares was required.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19138/augur-resources-hits-199m-at-046-gt-gold-and-copper-at-wonogiri-project-19138.html