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).