re: austindo - activities report... USTINDO RESOURCES...

re: austindo - activities report... USTINDO RESOURCES CORPORATION NL 2003-01-17 ASX-SIGNAL-G



HOMEX - Sydney



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THREE MONTHS ENDING DECEMBER 2002



HIGHLIGHTS



CIBALIUNG PROJECT - BANTEN, INDONESIA



* Regional exploration encouragement with high grade channel sample,

0.6m at 11.8 g/t Au, from trenching at north part of Rorah Kadal

prospect.



* First scout drill hole at Rorah Kadal, AC-053, returned significant

vein intercepts (>3 g/t Au cut-off) of 1m @ 5.4 g/t Au & 44 g/t Ag

from 70.8m and 0.85m @ 9.8 g/t Au & 84 g/t Ag from 76.1m.



* Four extension drill holes completed for 1,518m at Cibitung and

Cikoneng deposits. Drill hole AC-049 extended the strike of

mineralization at the base of Cibitung shoot to the north with

significant intercept of 5m @ 4.8 g/t Au & 93 g/t Ag from 330.8m.

Drill hole AC-51 extended the strike of mineralization at the base of

Cikoneng shoot to the south with significant intercept of 1.9m @ 17.7

g/t Au & 390 g/t Ag from 377.9m.



* Revision of Pre-Feasibility study commenced to account for updated

geological interpretation based on extension drilling and revised

cut-off grades due to 15% increase in gold price.



MT ALEXANDER GOLDFIELDS - VICTORIA, AUSTRALIA



* Compilation and interpretation of data commenced for both project

areas and field exploration work to start early in Q1 - 2003.



CORPORATE



* Appointment of new Managing Director & CEO.



EXPENDITURE



* Exploration expenditure during the quarter was A$498,965.





Ian Price

MANAGING DIRECTOR & CEO



For further information please contact:

Andrew J Cooke, COMPANY SECRETARY

Telephone (61-2) 9925 0155; Facsimile (61-2) 9964 0080

or by email to [email protected]



MORE TO FOLLOW

AUSTINDO RESOURCES CORPORATION NL 2003-01-17 ASX-SIGNAL-G



HOMEX - Sydney



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CIBALIUNG PROJECT



Work at Cibaliung during the quarter focused on defining extensions

to the Cikoneng and Cibitung resources and on defining and testing

new targets to the south.



EXPLORATION



RORAH KADAL



Excavation of trench TR-05 in the north of the prospect was completed

(refer Figure 1). The most significant result was 0.6m at 11.8 g/t Au

and 6 g/t Ag taken across a north-trending fault-vein in the east leg

of the trench. Excavation of trench TR-06, 75m north of TR-05 is in

progress.



STRUCTURAL EXPLORATION MODEL



Follow-up geological mapping in the areas 884,000 ounces was produced from hard

rock sources. The largest single producer, Wattle Gully, yielded 1.23

million tonnes of ore at a recovered grade of 10.5g/t gold (415,000

ounces of gold) over a strike length of 900 metres and to a depth of

325 metres.



Over 2000 occurrences of hard rock gold mineralization have been

noted to occur within the tenements. Of these approximately 40 have

produced in excess of 1000 ounces of gold and three have produced in

excess of one tonne of gold. Most of

scale reconnaissance mapping and will enable a more accurate

depiction of structures controlling mineralisation in the district,

and improve targeting at the local scale.



LAND ACCESS



Support was received from regional government during the quarter with

the official zonation of exploration and mining as an allowable land

use in the district's spatial plan, and approval to commence a

surface exploration program on plantation land to the east and south

of the Cibitung deposit, subject to payment of fair compensation to

land users for any surface disturbance.



SCOUT DRILLING



Scout drilling commenced late in the quarter at the Rorah Kadal

prospect located 800m southwest of the Cibitung deposit. One diamond

drill hole was completed, AC-053, and another is planned early next

quarter. The drill hole collar location is shown on Figure 1 and

summary geology on Figure 2. Significant results are summarised in

Table 1.





HOLE NO DEPOSIT/LODE DRILLED DEPTH LENGTH GRADE CORE

NAME FROM TO GOLD SILVER RECOVERY

(M) (M) (M) (G/T) (G/T) (%)

SCOUT DRILLING:



AC-053 Rorah Kadal 70.8 71.8 1.0 5.4 44 85.2

AC-053 Rorah Kadal 76.1 76.95 0.85 9.8 84 100



TABLE 1: DRILL RESULTS FOR THE RORAH KADAL PROSPECT (REPORTED AT A

3 G/T GOLD CUT-OFF).





EXTENSION DRILLING



Drilling commenced in early October to test for strike and plunge

extensions at the west dipping reverse faults, are major

features for gold mineralization. Other associated styles include

bedded reefs, spur reefs, saddle and neck reefs.



Review and compilation of the large amount of historic mining and

past exploration data has commenced with a view to building

structural and predictive models for the goldfield. These models will

then be used to select and prioritise targets for exploratory

drilling.



The deepest mines within the field were developed to around 350

metres below surface with most in the range of 100 to 200 metres

deep. At Bendigo, this style of mineralization is known to repeat

rhythmically to depths in excess of 1500 metres. The initial target

zone for the Company's exploration is within the zone between 100 and

500 metres below the surface.



SEBASTIAN - RAYWOOD PROJECT



The Raywood - Sebastian Project area lies 17 kilometres to the north

west of Bendigo and is located within the same structural corridor

that defines the Bendigo Goldfield. The company has Joint Venture

agreements covering two exploration licences with a total area of

81 sqkm. Approximately half of the area of the tenements is covered

by younger sediments of the Murray Basin and hence the basement has

not been explored for gold mineralization.



Historic production came from the Frederick the Great Mine at

Sebastian, which produced 186,000 ounces of gold at a recovered grade

of around 10g/t. from a west dipping fault reef. The mine was worked

to a depth of 270 metres before closure in the 1890's. Diamond

drilling below the old workings, carried out by WMC in the 1980's,

showed evidence of mineralization at 300 to 400 metres below surface.

The intersection returned 20 metres of carbonate alteration and

quartz veining and visible gold. No further drill testing of this

zone has been carried out.



More recently, a prior tenement holder, Metex Resources, began to

systematically explore for mineralization below the younger

sedimentary cover. Metex located the Mopoke anomaly under 20 metres

of cover rocks. Shallow RC drilling outlined a zone of auriferous

quartz mineralization in basement rocks that is 700 metres along

strike and varies from 75 to 150 metres across strike. Assay results

returned sporadic and spiky grades typical of this style of

mineralization. The drilling is too shallow and too coarse to

accurately define the mineralization but it does indicate the

presence of a hitherto undiscovered mineralized system. No further

definition drilling has been carried out on this prospect.



Compilation of existing mining and exploration data was commenced by

the Company during the Quarter, with particular reference to

available airborne and ground geophysical data. The initial aim is to

attempt to define major structural trends that may be related to

mineralization and which may be used to target exploration in covered

areas of the leases.



The Company is fortunate in having the Mopoke anomaly to use as an

orientation study for assessing geochemical and geophysical

techniques that may have application in locating mineralization under

younger cover rocks. Planning for this study is now complete and

field work will commence in the first quarter of 2003. As part of

this study, it is planned to drill one diamond hole into the Mopoke

anomaly to define the geological and structural nature of the

auriferous quartz mineralization.





CORPORATE



MANAGEMENT CHANGE



During the Quarter the Company appointed Mr Ian Price as its new

Managing Director and CEO. Mr Price's significant project and mine

operations experience will be advantageous to the Company as it moves

from a purely exploration to a mine development focus.



Mr Price replaced Mr John Carlile who will continue to provide his

substantial exploration expertise to the Company as a non-executive

director whilst Mr Bob Barton also joined the Board as a

non-executive director.



EQUITY IN CIBALIUNG PROJECT



In accordance with the terms of the goldfields along strike from the Bendigo Goldfield and the projects

are both designed to seek new occurrences of near surface repeats of

Bendigo style gold mineralization.



MT ALEXANDER PROJECT



The Mt Alexander Project is centred on the historic Mt Alexander or

Castlemaine Goldfield. The Company holds 213 sqkm of exploration

licences and 225 ha of mining licences encompassing all of the areas

of known production from this field. Recorded gold production totals

5.6 million ounces, of which the historic mining took place

in the period

1852 to 1890 and very little systematic modern day

exploration has been carried out.



The style of mineralization within the goldfield is typical of the

deposits within the Central Victorian Slate Belt. As at Bendigo,

Fault Reefs, associated with Joint Venture Agreement the

Company's interest in the Cibaliung Project increased to 73.02% at

the end of the third quarter 2002 due to sole funding of joint

venture expenditure.





EXPENDITURE



Exploration expenditure during the quarter was A$498,965 made up of

A$423,733 for the Cibaliung Project and A$75,232 for the Mount

Aleaxander Goldfields Project.