Freeport finds new gold and copper deposits in Irian Jaya

JAKARTA (JP): Freeport-McMoRan Copper & Gold Inc. announced over the weekend that it has intercepted within an igneous granitic intrusion, copper mineralization along a 240 meter interval that averages 1.16 percent copper, 0.1 gram of gold per ton and 6 grams of silver per ton, at its Lembah Tembaga prospect located approximately one kilometer southwest of its Grasberg deposit in Irian Jaya.

The hole was drilled at a 45 degree angle from a surface elevation of 3,707 meters and intersected the intrusion at 366 meters downhole from surface, the U.S. company said in a press release.

At 785 meters downhole from surface, "stockwork-like" copper mineralization was intercepted and continues to 1,025 meters, yielding the assays, the release added.

The company is engaged in the exploration, mining and milling of copper, gold and silver in Irian Jaya and the smelting and refining of copper concentrates in Spain.

With only one exploration hole into this intrusion, it is not possible to predict the extent of the mineralization. If a commercial deposit is present, the company has the option of mining Lembah Tembaga through the possible extension of the Grasberg open pit or underground through block caving.

If block caving were used to mine this area, the potential orebody could be accessed from the present mill through a series of adits (tunnels), including either the Amole adit or the Big Gossan exploration drift both being driven at the 2,900 meter elevation.

One of these adits would have to be extended approximately two kilometers to the west or northwest in order to gain access if the underground block caving method were to be utilized.

Three additional rigs are being moved into the area providing a total of four rigs to begin delineation of this area and determine if this mineralization is commercial.

Furthermore, the company is currently drilling with one rig at its Etna Bay prospect and is in the process of bringing a second rig into the area.

Exploration activities also continue at the Big Gossan Wanagon and Wabu properties as well as at other locations within Freeport's nine million acre area in Irian Jaya.