The Beruang Kanan Zinc (“BKZ”) Project is a high quality, polymetallic deposit situated within the south-eastern area of the Kalimantan Surya Kencana (‘KSK’) 6th Generation Contract of Work (“CoW”), less than 800 metres north of the BKM copper project.
Polymetallic (Cu-Pb-Ag-Pb-Au) vein system that is zoned from an upper zinc-lead-silver to a lower copper-silver bearing mineralised material.
Massive sulphide or vein style mineralisation intersected over an area of 300m x 110m.
Deposit remains open in multiple directions.
Close proximity to BKM providing opportunity to leverage off infrastructure.
Scout drilling in 2017 intersected broad intervals of near surface, high grade base and precious metal rich mineralisation. Due to the success of the exploration drilling the Company opted to expand the programme and in January 2018 further upgraded the drilling to Delineation Drilling status. A total 3,416 metres in thirty-six holes was completed in February 2018 for the first of a two-phase drilling campaign at BKZ.
Drilling has successfully tested an upper zone of polymetallic Zn-Pb-Cu-Ag-Au massive sulphide and vein style mineralisation and a lower zone of vein and massive sulphide hosted copper-silver mineralisation, the footprint of which still remains open in several directions. (A Maiden Resource estimate for both mineralised domains at the BKZ deposit is being prepared by Independent consulting geologist Duncan Hackman of Hackman & Associates Pty Ltd and is expected to be completed in May 2018.)
Mineralisation of the upper polymetallic zone has to date been confirmed over a strike length of 300m, is up to 110m in east-west dimension and has a variable true thickness of up to 40m. The lower copper-silver zone is north-south trending over a strike length of at least 150m and is up to 50m in thickness. Assay results confirm up to 30.7% zinc, 17.7% lead, 158g/t silver over 1-metre sample intervals in the polymetallic zone and up to 6.6% copper over 1-metre sample intervals in the interpreted "Feeder Structure" in the Lower Zone.
All holes that pierced the BKZ lower copper-silver zone terminated in intensely silicified rock that is oxidised and hematite-rich. The presence of bornite-chalcopyrite mineralisation and magnetite/hematite alteration in this zone is particularly encouraging as these geological features are typically associated with porphyry copper systems in Indonesia. A review of the 3D geological model for the BK District shows a large magnetic anomaly below the southern area of BKZ and northern area of BKM which represents a priority target. The Company has designed an approximate 600m deep drill hole to test this feature later in 2018.
Drilling results from BKZ provide the Company with confidence that the deposit may become a standalone operation which could be very likely to benefit from sharing infrastructure with any proposed mine development at the adjacent BKM Copper Project.