Indonesian gold miners rated

Indonesian gold miners rated

PERTH (Reuter): Stockbroker Hartley Poynton Ltd said Newcrest
Mining Ltd was its preferred low-risk recommendation among
Australian mining companies operating in Indonesia.

In a research report, the broker named Gasgoyne Gold Mines NL
as its medium-risk recommendation and Giralia Resources NL as its
high-risk recommendation.

Indonesia was one of the most favorable countries for
exploration in the world because of its geological prospectivity
and secure climate for mining investment, Hartley Poynton said.

The discovery of two world-class porphyry copper-gold deposits
- Freeport's Grasberg in Irian Jaya, and Newmont's Batu Hijau in
Sumbawa - had confirmed the prospectivity of the tertiary
magmatic arcs of the Indonesian Archipelago, it said.

In addition, 14 other gold deposits exceeding the one million
ounce mark had been discovered recently or were mined during the
Dutch colonial period.

Newcrest had been involved in Indonesia for more than 10 years
and currently had Contracts of Work in North Sulawesi, Halmahera,
West Sumatra and Sumbawa, the broker said.

"In the Halmaheras, an epithermal quartz-adularia vein system
containing bonanza grades has been discovered at Gosowong
epithermal vein deposit," it said.

"This vein has been traced over a 350-meter strike length from
the banks of Tobobo River.

"A pre-feasibility study is due to be completed by mid 1996,
with Newcrest envisaging a high-grade operation generating around
100,000 ounces of gold a year."

Gasgoyne had a 45 percent interest in the Awak Mas deposit on
the island of Sulawesi in joint venture with Lone Star
Exploration NL (45 percent) and PT Asminco Bara Utama (10
percent), Hartley Poynton said.

In-situ resources currently total 40.4 million tons grading
1.58 grams a ton gold and contain 2.048 million ounces of gold at
0.7 grams a ton cut-off, it said.

"The partners intend to continue drilling throughout the first
half of 1996, with a view to extending the mineralization." the
broker said.

Giralia's main project was its 20 percent interest in the Nusa
Tenggara project with Aberfoyle Ltd (60 percent) and state-owned
PT Aneka Tambang (20 percent).