mount kasi on a high

Balanced & Very positive exposure with substance.

http://www.fijitimes.com/story.aspx?id=7127


BKS - Mount Kasi on a high
(Saturday, August 21, 2004) from Today’s Fiji Times

WHEN Burdekin Pacific chief executive saw the results of exploration drilling over the last few months, a certain amount of excitement stirred.
For the results showed Jerome Vitale that a new gold zone had been discovered in the Mount Kasi area.
"In February of this year drilling started and we are now 45 per cent of the way through," he says.
"We're doing 10,000 metres of drilling and so far have covered 4.5metres. We intend to continue over the next three months and so far the results have been encouraging."
Sydney-based, Mr Vitale says the results of the drilling programme will decide when the mine can be re-opened.
"It is something to get excited about but no decision to mine has been made by the company and it can't be made until we recalculate the reserves which will be in November or December," he says.
"We are very encouraged. It is the best result so far. We found high grade material in the middle of the pit which we were not aware of before."
Mr Vitale says the Mt Kasi project is now generating a lot of interest overseas.
What the company is now looking for is continued good results from drilling.
"What we are looking for is more of the same. The purpose of drilling was to test some new zones for future development and drilling but also to in-fill drilling within the mine area so that we can convert existing tonnage from the resource category to bankable reserve category."
No estimates have yet been placed on the value of the ore in Mt Kasi.
Mr Vitale says the new resource is estimated to be about 250 metres in length and maybe 20 metres deep.
"It is very easy to mine alluvial material because we don't have to drill and blast. It's like a walk-up mining area, and the ease of mining should mean it will be very cheap to mine and also have very good processing characteristics."
At present there are about 16 people working on the exploration programme for Mt Kasi, including three geologists.
"By December we will be in position to calculate the ore reserves and then determine whether there is enough to mine or if we need to do more drilling," Mr Vitale says.
"Decision may be that the new zones can be so good that we want to do more drilling and increase the scope of the project."
He says one point in their favour right now was that the gold price is very strong at $US406 an ounce.
"It's a historical high. The preliminary cost estimates are such that the operating costs are very favourable."
But, he says, the company was watching the diesel price closely.
"It will be an issue because we need diesel for power at the site. Currently the excise duty on diesel by the Government is very high almost bordering on uncompetitive compared to other countries, and we would be seeking to at some point, certainly bring this to attention to authorities. There is no power grid in the western part of Vanua Levu and this has a pretty big impact on the cost of the project."
The results of drilling to south of Mineral Hill at Mbete Prospect has seen eluvial gold discovered.
"Initial RC drilling at the Mbete Prospect, 500 metres south of the main ore deposit at Mineral Hill and 300 metres south of any previous drilling, has identified a new near surface gold mineralised eluvial zone," Mr Vitale says.
There was a significant find at one hole with higher grade (3.38 g/t Au), while two other holes saw gold at shallow depths.
Mr Vitale says the shallow find confirmed "the presence of an easily mineable eluvial zone along an initial estimate of surface strike of 250 metres".
The grade of gold in the shallow area was averaged 1.24g/t Au in the first 20 metres from the surface.
He says historical eluvial deposits within the mine area include the Done Creek and Mango deposits flanking the main lode system at Mt Kasi.
"In the past these eluvials yielded pockets of high grade material and were very profitable for the previous operator given their negligible strip ratio, relative ease of mining and good mill recovery characteristics.
"The Company believes the discovery of this new eluvial zone of gold mineralisation at Mbete is significant and warrants further drilling in this southern area during the present campaign to target additional eluvial material as well as the likely nearby primary source."
The company is also searching in several other areas including Paro Prospect north of the planned Mineral Hill open pit.
Mr Vitale this confirmed "a shallow, easily mineable zone of gold mineralisation.
The best result from the two holes drilled to date was a grade of 2.63 g/t Au.
Mr Vitale says that the drilling at the Kasi North Prospect was generally lower grade gold (at 1.1 g/t to 1.21 g/t Au), but a 5.01g/t Au find justified a second round of drilling there after completion of the current programme.
Mr Vitale is optimistic that with the gold price holding at historical highs and continued favourable drilling results, reopening Mt Kasi mine will look better in November.

This article follows another balanced and positive story from Mining News www.miningnews.net during the week (17th August 2004).
It also follows the article from The Australian during the week.

Constructive comments & discussion please.
I hold bks
Always seek professional investment advice before investing & please read below