Gold project encouraging

Gold project encouraging

PERTH (Reuter): Gwalia Consolidated Ltd. said yesterday was encouraged by results from an initial exploration program carried out at the Sulut gold prospect in Indonesia.

Gwalia has a 26 percent interest in Pacific Wildcat Resources Corp (PAW) which holds a 70 percent stake in the Salut prospect, the remaining 30 percent being by PT Aneka Tambang, the general mining company owned by the Indonesian government, and two other minority equity partners.

Gwalia said eight shallow diamond core holes had been drilled at the prospect with four of the holes returning intervals of mineralization between 1.05 grams of gold a ton and 28.1 grams a ton.

Gwalia said further shallow drilling at the prospect would continue and if results warrant, a larger diamond drill rig would be mobilized in early 1996 for a deeper drill program.