Rubicon to acquire 85% of Kapuas Hulu gold project in Indonesia

Rubicon Resources (ASX: RBR) a WA-based exploration company, has announced that it has executed a deal to earn up to 85% in PT Hasil Kharisma Alam, the sole holder of the Kapuas Hulu gold project in West Kalimantan, Indonesia.

The 14,510 hectare Kapuas Hulu project hosts gold mineralisation defined by historic trenching with best results of up to 9.5 metres at 13.97 grams per tone (g/t) gold, rock chip sampling and soil sampling.

This has been confirmed by 16 rock chip samples Rubicon acquired during a recent due diligence visit that yielded results including 319g/t and 17.4g/t gold.

Of the prospects in the project, the Pelaik prospect is considered the most advanced with previous s rock chip, float and trench sampling outlining several zones of gold mineralisation over a 3 kilometre by 1 kilometre area.

This is followed by the less advanced Selunga prospect that also showed trace elements indicative of a shallow level epithermal style of mineralisation. Rubicon plans to start field activities in February, including soil sampling, rock chip sampling and mapping that will better define drill targets.

Rubicon can acquire an initial 51% of Hasil Kharisma Alam by spending A$1.5 million on exploration and issuing 3 million shares. Further exploration, share issues and execution of a bankable feasibility study will allow the company to earn up to a 85% stake.

Kapuas Hulu is close to the Masuparia copper-gold-silver, Gunung Mas gold and Mirah gold projects.

Rubicon held cash of about A$3.1 million as the end of 2011.

Rubicon Resources Limited is a WA-based exploration company with a 5,300 km2 portfolio of gold, copper, iron and base metal exploration projects in Western Australia. – BullionStreet

Tags: Gold, Gold mining, Gold mining companies, Gold mining industry, Kapuas Hulu gold project

Posted by admin on Feb 8 2012. Filed under Gold mining. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry