Siburan Resources to progress tungsten exploration in known mineralised area of New Zealand

Siburan Resources (ASX: SBU) is looking to progress the Kirwans Project in New Zealand, where previous drilling has delivered economic grade tungsten (WO3) intersections of plus 0.10%.

Siburan has now lodged an application for an exploration permit for an area prospective for tungsten and gold, with the approval / grant process forecast to take between three to five months.

The proposed exploration is highly prospective, with historical intersections including 15 metres at 0.13% WO3 from 4 metres, 15 metres at 0.13% WO3 from 14 metres, and 5 metres at 0.15% WO3 from 33 metres.

Showing the potential broad nature of the mineralisation, one of the previous diamond drill holes reported an average grade of 0.05% WO3 from the surface for 263.2 metres.

Noel Ong, managing director of Siburan, is very upbeat about the decision and commented, “I am very excited about the Kirwan Tungsten Project in New Zealand.

"We have an exploration permit application over a highly prospective ground where a significant zone of tungsten mineralisation has been identified, including a mineralised drill intercept of over 200 metres.

"It is in a country perceived as having low sovereign risk issues, located in a mining district with excellent infrastructure and has operating gold and coal mines within 10 kilometres from the Tungsten prospect."

Adding some spice to the potential new exploration program - is the timing.

The price of tungsten has almost doubled in the past year to over US$450 per mtu, as reports have emerged of increasing demand putting pressure on the limited world supply of tungsten.

Ong added, "With these factors in play, Siburan believes that its Kirwans Tungsten Project is expected to add significant value to the company and its shareholders. We hope to be exploring and commence drilling at Kirwans within the next 5 months.”


Proposed work program

Highlighting how Siburan is moving the project forward, the company will undertake a detailed geological mapping program to identify the extent of the quartz-scheelite veins hosting the tungsten within the project area.

The company said this is expected to identify new tungsten targets at the Kirwans Project.

Once the exploration permit has been granted, Siburan intends to commence diamond drilling programs to determine the strike and depth potential of the main tungsten mineralisation zone - which is expected to delineate the size and grade of the tungsten mineralisation.

Adding to the prospecitivty of the project, rock chip samples from other tungsten targets within the project area have returned high grade values of up to 8% WO3 - which Siburan said will require drill testing.


Gold potential

Adding some further interest to future exploration at the project, is the potential for gold.

Historic hardrock gold production in the region has been derived predominantly from mesothermal orogenic gold deposits, typically gold bearing quartz veins of turbidite-hosted type.

A brief mapping and rock chip sampling program was undertaken by a previous company at the Kirwans Reward gold prospect several years ago to investigate the potential for down-dip extensions to surface quartz vein/breccia-hosted gold mineralisation, as seen in the abandoned pit.

Importantly - at least three major sets of veins were defined, with four drill sites selected for further exploration.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/20003/siburan-resources-looks-to-progress-tungsten-exploration-in-known-mineralised-area-of-new-zealand-20003.html