SYDNEY, Australia, Jan. 10, 2012 /PRNewswire/ - Robust Resources Limited ('Robust' or 'the Company') is pleased to announce the results of the maiden JORC code compliant mineral resource estimate ("JORC resource estimate" or "Estimate") for the Lakuwahi Project on Romang Island, Indonesia. The independent estimate of 1.18 million gold equivalent ounces is in line with the Company's expectations at the current stage, and limited areal extent, of exploration.
The Lakuwahi Project is situated within a large 6km by 4km Magnetite Destruction Zone (MDZ) on the southern section of Romang Island, where Robust has mainly focused diamond drilling on three prospects - Batu Mas, Batu Hitam and Batu Hitam West. The JORC resource estimate, which was carried out by independent consultants Micromine Consulting Services (MCS) of Perth WA, is based on the results of drilling these three prospects only.
The JORC Code Compliant Mineral Resource Estimate
The Lakuwahi mineral deposits discovered so far generally consist of upper oxide, gold and silver rich caps, which are underlain by sulphide-bearing breccias containing potentially economic concentrations of gold, silver, copper, lead and zinc. The mineral resource has been estimated to JORC compliant standards for both the oxide and sulphide sections of the deposit, using lower cut offs of 0.2 g/t Au and 10 g/t Ag. No top cuts for gold, silver or base metals were used or deemed necessary for the estimate2.
The resource estimate of 1.18 million gold equivalent ounces is classified within the JORC Indicated and Inferred categories. Base metal resources of 95 million pounds of copper, 697 million pounds of lead and 678 million pounds of zinc are estimated to occur in the sulphide portions of the deposit.
Two-thirds of the gold equivalent ounces are classified as JORC Indicated, with the remaining one-third being classified as JORC Inferred. The Mineral Resource Table below breaks down the estimate into the various JORC categories.
The JORC Resource Estimate in the Context of the Overall Exploration Potential of Romang Island
This JORC resource estimate quantifies significant accumulations of metals. There is strong evidence that this is only the first stage of an even more substantial discovery within the Lakuwahi Project area. Figure 1 shows the wireframes defining the Lakuwahi JORC resource estimate plotted in relation to the highly prospective resistivity anomalies, which lie within the overall Lakuwahi Magnetite Destruction Zone (MDZ) mineralising system. Untested and minimally tested anomalies such as Batu Jagung, Batu Perak and Batu Hitam South, are priority drilling targets for 2012 and are considered to have a high potential for further large-scale discovery.
Recent announcements by Robust illustrate the fact that the substantially drilled prospects of Batu Mas, Batu Hitam and Batu Hitam West remain largely open for further extensions and discovery. The drilled area is a small proportion of the overall mineralising system.
While the discovery of additional mineral resources on Romang Island is a priority for Robust, the JORC resource estimate announced today is an important milestone that will form the basis for development studies necessary for the commercialisation of the mineral deposits.
The Company is currently investigating the viability of mining and treating the near-surface gold-silver deposit in the short to medium term. Metallurgical studies are well advanced and will continue into 2012. Results so far confirm the early indications that the oxide gold - silver mineralisation is highly amenable to standard, low-cost processing methods.
The fact that two-thirds of the JORC resource estimate is classified as "Indicated" means that these mineral resources can form the basis of a prefeasibility study and infill drilling which will lead on to a feasibility study if successful. It is the company's intention to complete the front-end work for mining, processing, marketing and environmental pre-feasibility studies on the oxide project in 2012.
Detailed metallurgical testwork is proceeding in order to define a treatment path for the sulphide mineralisation. The sulphide project is potentially large and should require a greater capital outlay. The Company is optimistic that development of the sulphides can proceed soon after the oxide project is brought into production.
Managing Director Gary Lewis said: "The completion of the Company's maiden JORC resource estimate is undoubtedly a major milestone for the company; and the results thus far confirm our initial geological modelling and understanding of the Project.
"It is important to stress however, that this maiden JORC resource estimate is based on the drilling results of a small area within the Lakuwahi Project. As such, we have every confidence that this maiden resource will continue to increase as our exploration activities advance in 2012 and beyond. The future discovery potential for Romang Island is significant.
"Robust intends to continue aggressively exploring Romang Island with seven drills on-site and a $15 million exploration budget earmarked for fiscal year 2012. This exploration is fully funded and will continue in unison with our project development efforts.
"We are now on the path to becoming a producer and are advancing our front-end project development studies. We will continue to update shareholders on our exploration and development activities on Romang, as well as on our exploration efforts in the Philippines".
Robust Resources Limited is engaged in the discovery, exploration and development of precious and base metal mineral deposits in Indonesia and the Philippines. The Company's most advanced project is the Lakuwahi gold-silver-copper-lead-zinc deposit on Romang Island, in eastern Indonesia. Lakuwahi is a significant greenfields discovery with high potential for expansion of the currently stated JORC mineral resources of 1.18 Million ounces gold equivalent plus base metal credits. Robust's dual focus is to become a significant low cost precious and base metal producer onRomang Island as well as making new discoveries from its exciting portfolio of exploration properties in Indonesia and the Philippines. Robust trades on the Australian Securities Exchange (ASX) under the symbol ROL.AX. More information is available at www.robust resources.com.au.
SOURCE Robust Resources Ltd.