Friday, July 10, 2009

Vale To Back Indonesian Copper/Gold Project

Brazil's Vale, the world's second-largest miner, has backed a potentially large Indonesian copper/gold project that could see it spend $40 million to acquire a 60 percent stake.

Project manager, Australian-listed Intrepid Mines Ltd, said Vale had been granted an option to take up the stake in the Tujuh Bukit sulphide copper-gold project in east Java. Intrepid and its Indonesian partner, PT Indo Multi Niaga, will retain the remaining 40 percent interest.

Intrepid said Tujuh Bukit has a potentially large gold-silver-copper system underneath a near-surface gold-silver oxide cap. Intrepid and PT IMN would retain sole rights to the oxide gold-silver deposit.

Drilling in the copper-gold zone has intercepted wide zones of mineralisation, including one hole intercepting 627 metres of 0.5 grams per tonne gold and 0.5 percent copper per tonne.

Source: Reuters

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