Ashburton Minerals reports on drilling at Obi in Indonesia

Ashburton Minerals (ASX: ATN) currently is conducting an extensive exploration program at the Obi Gold Project in Indonesia.

Initial diamond drilling results in the program have confirmed the presence of a high-grade quartz vein, which is being exploited by artisanal miners.

Three holes intersected this vein, with the highlight 6.9 metres at 7.18g/t from 86 metres.

The host rock though is shown to not carry gold mineralisation.

Ashburton said that the decision to release preliminary results was because they indicate that the likelihood of a large tonnage bulk mining economic gold resource existing at the Ambon prospect has been downgraded.

The first batch of 502 core samples is from the first three holes of the proposed up to twelve hole program,

Currently two rigs are active, with a second batch of samples forecast to be dispatched from Obi towards the end of September.

The project encompasses a large artisanal goldfield and surrounding ground covered by a 70 square kilometres exploration licence on the island of Obi, in the province of South Halmahera in eastern Indonesia.

In December Ashburton placed 75 million shares at $0.02 to raise A$1.5 million to fund the drilling at the project, with Macquarie Bank (ASX: MBL) the largest participant, taking up 25 million shares.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19493/ashburton-minerals-reports-on-drilling-at-obi-in-indonesia-19493.html