Prosperity Resources: Recent golden drill results from Aceh tenements to generate future bounty

29-May-2012 Intellasia | Proactive Investors | 10:07 AM Print This Post

Prosperity Resources (ASX: PSP) is an Australian explorer focused on the evaluation of potentially very significant gold-copper porphyry and skarn deposits in Aceh Province, Indonesia.

The Company has a two-pronged attack within this large project area, namely;

- in the short to medium term – to investigate the possibility of developing mines accessing the shallower ‘oxide cap’ gold associated with the identified Skarns in order to generate ‘quick’ cash-flow; and

- in the medium to long term – to delineate a number of the copper-gold porphyry systems that the Company believes are present below these oxide caps.

Capital Raising

In April, the Company completed a share placement to a key Asian investor. The placement raised $2,000,000 through the issue of 20,000,000 fully paid ordinary shares at an issue price of 10 cents per share. That the capital raising was completed at a premium to prevailing share price indicates the growing confidence with the company’s exploration outlook and upside potential.

The raising will support ongoing exploration activities at the Company’s 41,000 hectare porphyry gold-copper project area in Aceh Province, Indonesia.

The Company is in the early stages of a very ambitious large scale green fields exploration effort in a country noted for large deposits. Many of the currently defined target areas have historic and present artisanal mining activities within the region.

The Aceh licenses have never been subjected to systematic modern exploration that is now producing very impressive early stage development targets.

Helicopter-borne magnetic surveying followed by mapping and geochemical sampling have already produced 10 porphyry intrusive targets with related mineralised skarn and alteration zones. This early phase of exploration confirms the huge potential of the entire land package that covers 410 square kilometres.


Prosperity holds a 41,000 hectares land package aligned along the coast of Southern Aceh, covering an unexplored, but potentially highly prospective, mineralised belt adjacent to the Sumatra Fault. This is an important feature controlling the location of mineralisation in Sumatra.

In 2010 to 2011 the Company completed a very successful regional helicopter borne magnetic survey that has already identified 10 magnetic intrusive targets with associated mineralised skarn on surface and completed mapping as well as surface sampling programmes at the Pala, Jelatang, Panton Luas, Mutiara, Pelumat, Kuini and Samadua prospects.

Some early drilling has been completed at Pala, Jelatang, Kuini and Panton Luas and has commenced at Pelumat.

The drill intersections achieved in the first hole at Pelumat South achieved significant results, including 17 metres at 6.18 g/t gold from 219 metres including 3 metres at 13.91 g/t gold and 1 metre at 60.0 g/t gold.

Together with encouragement from early stage results from ongoing exploration in the project area, Prosperity Resources is one to watch.

That Prosperity Resources achieved good results in the first hole paints a picture of the portent to come for investors.

It also provides investors with an early gauge of the potential that exists in Prosperity Resource’s Aceh tenements. With a modest market cap of $27 million these results provide much promise for the eagle eyed investor, willing to embark on investment in early stage exploration.


Mo Munshi serves as Chair and Managing director. He is a geologist with 30 years experience in exploration, development and corporate management in a global setting and has worked for a number of major resource development and production companies that include ACM Ltd, Posgold/Normandy Mines, Great Central Mines NL, Ashanti Goldfields Ltd, JCI Ltd and Ivanhoe Mines Ltd He is also a director of Paramount Mining Corporation Ltd

John Arbuckle serves as a Non- Executive director, and is also a director of Paramount Mining Corporation Ltd and Maybach Consulting Pty Ltd which provides specialist corporate advisory services to a number of companies. He has served as CFO and Company Secretary for Mount Gibson Iron Ltd, CFO for Perilya and held senior management positions with Rio Tinto Ltd, North Ltd and Anaconda Nickel Ltd

Sebastian Hempel serves as a Non-Executive director, who is an accomplished corporate attorney with 20 years of experience in corporate advisory work in particular for publicly listed companies in the resources sector.

Mufti Habriansyah serves as a Non-Executive director. He is a highly skilled Indonesian attorney who was a partner in Freehills’ Jakarta office and is a specialist in Indonesian natural resources, energy, and corporate law, and has advised a number of major international resource entities with interests in Indonesia. He is also a director of Paramount Mining Corporation Ltd

Garry Taylor and Lionel Liew serve as joint Company Secretaries.

Mo Munshi who serves as Chair has over the last 2 years increased his shareholding in the Company from 5.0m to 19.65m shares for a 5.1 percent interest.

Major shareholders include Resource Global Finance Ltd with 59.15m shares for 15.45 percent, Der La Noble Corporation with 49.9m shares for 13.04 percent, Prufrock Partners Ltd with 41.2m shares for 10.77 percent, and Inner Mongolia Tai Xi Mei Group Co Ltd with 20.0m for 5.23 percent interest.


At the end of the last quarter the Company held $384,000 in cash, and recently secured a $1.0m debt facility from Resource Global Finance Ltd which is repayable on 30/Jun/2012 to fund current exploration at Aceh. Resource Global Finance is a significant long term investor in the Company.

In April, the Company completed a share placement to a key Asian investor. The placement raised $2,000,000 through the issue of 20,000,000 fully paid ordinary shares at an issue price of 10 cents per share.

The Company has also issued 14.45m unlisted options that are exercisable over a range of $0.04 to $0.30 from 31/Oct/2012 to 30/Nov/2014.


The Aceh project is located in the southern coastal portion of Aceh Province in northern Sumatra. The licences extend for a distance of approximately 60 kilometres from the towns of Labuhan Haji in the north to Tapaktuan in the south. Most of the project areas can be accessed by road from coastal towns or by tracks from local villages.

The land package includes six exploration and mining licences known as IUPs that cover 410 square kilometres and contain an unexplored and highly prospective mineralised belt. The Company has already identified 10 porphyry intrusive and related mineralised skarn and alteration zones at prospects known as Pelumat, Mutiara, Panton Luas, Nilam, Pulo Kambing, Pala, Kuini, Jelatang and Samadua.

The geology within the IUPs forms part of a late Jurassic to early Cretaceous age andesite-volcanic dominated island arc. Geology and particularly age relations are not fully resolved at this early stage of the project but it appears likely that Tertiary-age island arc-related magmatism led to the emplacement of microdiorite to granodiorite intrusives along the volcano-sedimentary belt and it is these later intrusives which host the alteration and ore mineralisation. The region has a strong structural character which appears to influence the emplacement location and bounds of the intrusive centres.

The mineralised intrusive systems are clearly defined by airborne and ground-based magnetic surveys. Site visits to these locations often show intense hydrothermal magnetic alteration, which can be present as gold and copper bearing mineralised magnetite skarns in contact with carbonate-rich sediments and at limestone contacts, as well as endoskarn within the diorite intrusive bodies.

Also present are zones with well developed, hydrothermal magnetite veins seemingly forming aureoles about the intrusive centres, or occupying major related structures and intense local development of magnetite in intrusive breccias, or as vein and stockwork development.

At some sites magnetite alteration is observed destroyed by a late often gold-bearing silica-clay (or chlorite in some cases) pyrite event that demonstrates multiphase alteration and introduction of mineralisation. Regionally the helicopter-borne magnetics reflect this as magnetic highs fully or partially encircled by discrete aureoles of magnetic low zones.


The Samadua prospect is a recent addition to the prospect portfolio and is located 8 kilometres to the north of Tapaktuan, which has a seaport, airport and serves as a base for all exploration activities by the Company.

Prosperity has completed an initial round of field exploration and data compilation at Samadua that has resulted in the discovery of surface anomalism that is comparable to the prospects at Kuini and Pelumat.

Rock chip, float, channel and soil sampling have defined significantly elevated metal values over a 500 x 350 metre area, which are associated with a zone of magnetic anomalism related to magnetic alteration in sheared microdiorite.

Rock sample highlights include R04619 at 25.7g/t Au and 3.2 g/t Ag, R03147 at 16.2 g/t Au, 97.6 g/t Ag, 23.2 percent Cu and 4,340 ppm Mo, R00526 with 8.27 g/t Au, 2.9 g/t Ag, 0.75 percent Cu and 82 ppm Mo.

Soil sample highlights include S001516 with 5.55 g/t Au, 1.1 g/t Ag, 51 ppm Cu and 96 ppm Mo, S001469 with 4.46 g/t Au, 1.1 g/t Ag, 637 ppm Cu and 36 ppm Mo, and S001471 with 0.96 g/t Au, 0.4 g/t Ag, 4310 ppm Cu and 702 ppm Mo.

The highest gold values are carried by samples of chalcopyrite-rich skarn associated mineralisation and where copper values exceeding 250 ppm are very common, with some locations hosting values above 500 ppm, and more locally above 1,000 ppm Cu. Molybdenum is also anomalous in a number of limited samples.

A significant drilling target area has been defined within a 500 x 300 metre zone that is located along the main Samadua ridge and is situated next to an existing road. The Company is fast-tracking an initial drilling programme of 4 to 6 drill holes that will test 4 anomalies at depth and is currently conducting channel sampling in the target area to better define drill targets.


The Kuini prospect is located at the very southern end of the Aceh project area and is approximately 25 kilometres south of Tapaktuan. Magnetic data and 3D modelling have identified a target body that is approximately 600 metres in length, and lies beneath the outline of an existing shallow pit where mining activity has extended over a similar distance.

Mapping and sampling of the target area was completed within the shallow pit where current operators extract hematite ores from surface-oxidised magnetite skarn.

Surface sampling including grab sampling and continuous surface sampling traverses across the magnetic skarn outcrop and within the pit area at KU-01 returned a best interval of 22 metres at 2.04 g/t Au and 0.26 percent Cu, including 14 metres at 2.77 g/t Au. Best interval at KU-02 returned 8 metres at 1.21 g/t Au and 10 metres Au at 1.3 g/t Au, with a high sample returning 95 g/t Au outside of the best intervals.

Prosperity is undertaking a 1,500 metre drilling programme within the pit area that is aimed into and around the 3D magnetic target. Drill hole PNGD020 intersected 63.6 metres at 0.56 g/t Au and 0.12 percent Cu at a depth of 166.2 metres, and was collared in sediments outside of the interpreted limits of the magnetic body and the structural corridor.

PNGD021 which intersected 20 metres at 0.23 percent Cu at a depth of 6 metres, and 1.2 metres at 0.7 g/t Au at a depth of 52 metres. Both holes indicate potential for a gold-copper porphyry intrusive source at depth.

The highest grade result was reported at PNGD022 which was also collared in sediments outside of the interpreted limits of the magnetic body and the structural corridor. The hole reported 39.8 metres at 2.74 g/t Au and 0.45 percent Cu at a depth of 36.0 metres, and 16.1 metres at 5.78 g/t Au and 0.42 percent Cu at a depth of 89.0 metres, and 3.0 metres at 0.22 g/t Au at a depth of 105.0 metres. The same drill hole also intersected highly anomalous Molybdenum grades which peaked at 0.24 percent and suggests an association with a nearby porphyry system.


The target at Jelatang lies to the northwest and abuts the target at Kuini.

Two holes at PNGD017 and PNGD019 were drilled in 2010 and intersected long intervals of disseminated and quartz-sulphide stock work veinlet-hosted anomalous mineralisation, along with shorter intervals of higher grade replacement magnetite endoskarn mineralisation. Drill hole PNGD017 finished in mineralisation with the last 17 metres returning an intercept of 1.27 g/t Au and 0.70 percent Cu, indicating the presence of a deeper mineralised system.


Panton Luas is located approximately 20 kilometres to the north of Tapaktuan.

Mapping and sampling across 3D magnetic targets has confirmed the presence of gold and copper mineralisation hosted in endoskarn over a large area.

Sporadic gold-copper mineralisation and the presence of pervasive, porphyry-related silica-magnetite-chlorite alteration of the host microdiorite intrusive indicate significant potential for the discovery of a large porphyry system at depths below the axis of the ridge line that runs through the property. Extensive current and historical artisanal workings are scattered across the ridge line.

Drilling at Panton Luas was designed to test mineralisation being exploited on the surface by local artisanal miners and to test for the presence of a deeper porphyry system. A total of 6 drill holes were completed in 2011, and tested beneath magnetic anomalies related to hydrothermal magnetite alteration, and a zone of gold bearing chlorite-sericite-silica-pyrite alteration.

Highlights include PLD003 which intersected 1 metre at 8.79 g/t Au at a depth of 75 meters and 2 meters at 1.08 g/t Au at a depth of 196 meters. PLD004 intersected 4 meters at 3.84 g/t Au at a depth of 10 meters; and PLD005 intersected 5 intervals for a total of 54 meters of mineralisation including 24 meters at 0.22 g/t Au at a depth of 220 meters, along with 10 meters at 1.14 g/t Au at a depth of 38 meters.

Mineralisation recovered from the deeper holes identified features that suggest a late mineralisation event beneath Panton Luas that may relate to a deeper porphyry intrusion.


The Pelumat prospect is located at the most northern end of the license areas and is approximately 30 kilometres to the north of Tapaktuan.

Prosperity identified a magnetic target, completed 3D modelling, and undertook a soil sampling and mapping programme that identified a 2 kilometre long mineralised magnetic target at Pelumat North, and a 3 kilometre long mineralised magnetic target at Pelumat South. These targets carry surface samples assaying up to 109 g/t Au, 37 percent Cu and 490 g/t Ag in skarn orebodies.

The Company has defined drill targets for an initial five-hole programme. These drill holes are planned to test a broad zone of highly anomalous gold-copper-Molybdenum values in soil and rock chip samples that are associated with outcropping skarns and altered microdiorite intrusives.

The first drill hole in this programme intersected significant intervals containing disseminated, fracture and vein hosted pyrite‐chalcopyrite‐molybdenite mineralisation immediately to over 300 metres down hole. The mineralisation is similar to material observed in outcrop around the drill site area, and usually has significant gold values associated with the copper.

This programme will test an area that measures roughly 400 x 400 metres within the mineralised trend and skirts the boundary of the 3D magnetic target. The core of the 3D magnetic target will be tested by additional drilling at a later stage.

Pelumat South Prospect drilling

Significant gold-copper-Molybdenum intersections have been achieved by Prosperity in the first hole at Pelumat South in the BAM joint venture licence.

The Company completed its first hole, PMDH001, at the South Pelumat Prospect in its 80 percent owned BAM Joint venture area in southern Aceh.

Results are clearly very useful and encouraging and offer support for the mapping and geochemistry undertaken in the area.

Best intercepts included:

-17 m at 6.18 g/t Au from 219 metres including: 3 m at 13.91 g/t Au and: 1 m at 60.0 g/t Au;

-10 m @ 0.97 percent Cu from 227 metres

-26 m @ 1.5 g/t Au; 0.43 percent Cu from 254 metres Including: 2 m at 15.4 g/t Au; 1.40 percent Cu

and 2 m at 1.84 g/t Au with 1 m at 2.05 percent Cu and: 1 m at 2.05 percent Cu and 2 m at 0.06 percent Mo

and: 4 m at 0.06 percent Mo

-2 m at 4.64 g/t Au from 310 metres

The Pelumat Prospect is one of ten known magnetic endoskarn and intrusive targets recognised by Prosperity along 60 kilometres of strike length in Prosperity’s 410 square kilometre Aceh Project.


Mutiara abuts Panton Luas and both prospects have similar characteristics.

Trenching and soil sampling at Mutiara delineated a mineralised zone across a 1 x 1.3 kilometre area that included trenches at M1 which recorded 18 metres at 2.61 g/t Au and 0.71 percent Cu, M18 recorded 18 metres at 0.93 g/t Au and 0.44 percent Cu, M23 recorded 12 metres at 4.77 g/t Au and 3.62 percent Cu and M26 recorded 18 metres at 1.39 g/t Au and 0.42 percent Cu.


Prosperity maintains a number of Australian projects that are currently held on a care and maintenance basis. These include the 100 percent owned Tennant Creek Project, in the Northern Territory, that covers 220 square kilometres and are prospective for gold and copper resources.

Western Australian projects also include an 80 percent interest in the Mount Gibson Joint Venture, which encompasses the Woolshed and Warriedar iron ore projects.


Prosperity holds a huge land package of over 41,000 hectares of a highly prospective mineralised belt that have not been subjected to modern exploration techniques. Many of the defined target areas are liberally sprinkled with artisanal mining activity.

Prosperity has increased its interest in the Aceh gold-copper IUP licenses to 80 percent. The balance is held by a strong local partner.

Prosperity’s 81 percent-owned Indonesian subsidiary PT Prosperity Surya Persada (PT PSP)

earned 80 percent of the BAM exploration IUP license through the expenditure of over USD1,250,000 on the highly prospective Pelumat gold-copper porphyry target since the project was acquired in October 2009.

Prosperity has maintained a district wide exploration effort on a limited budget, and produced results that much larger exploration outfits may covet. The licenses at Aceh have the look and feel of true green fields ‘elephant country’ type plays.

The big picture approach has generated a multitude of large gold and copper targets that carry strong magnetic signatures and some have artisanal workings that are also producing high grade surface resources.

Exploration and development focus is still in its very early stages and recent drilling has barely scratched the surface.

The Pelumat Prospect is one of ten known magnetic skarn and intrusive targets recognised by Prosperity along 60 kilometres of strike length in Prosperity’s 410 square kilometre Aceh Project.

The drill intersections achieved in the first hole at Pelumat show promise particularly when taken together with the encouragement from ongoing exploration in the project area. The intersections have also added significantly to the regional understanding of the controls of mineralisation in the local district and elsewhere in Aceh where mineralisation has been found and will assist with planning the subsequent drill programmes regionally.

These new drill intersections achieved at the start of Prosperity’s drilling programme at Pelumat also support the very encouraging geochemical results obtained.

These early drill results are significant as they will improve understanding of the physical attributes of the targets located in Aceh as well as the controls on mineralisation distribution within them. Results to date from Prosperity promote the promise of things to come.

Together with encouragement from early stage results from ongoing exploration in the project area, Prosperity is one to watch.

The results from Pelumat South provide investors with a potential early gauge of the potential that exists in Prosperity’s Aceh tenements. With a modest market cap of $27 million these results provide much promise for the eagle eyed investor, willing to embark on investment in early stage exploration.

That the recent $2 million capital raising was struck at a premium to prevailing share price indicates the growing confidence in the company’s exploration outlook and upside potential in valuation for investors.


Category: ResourceAsia

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