Badak
 |
The Badak tenement is approximately 10,000 hectares in size and is located within the renowned Neogene mineralized magmatic belt of Sumatra. The Neogene belt contains many gold and base-metal deposits, making it one of the most productive among the Indonesian metallogenic zones.
The property has undergone previous exploration for gold and base-metals in the last three decades. Badak hosts at least two gold anomalous areas with characteristics interpreted by previous explorers to be of epithermal style (the Badak and Nareh prospects). These anomalies, which were delineated from results of geochemical survey, occur within a large complex of extrusive centers. The centers consist of extensively altered Pleistocene andesite to dacite piles, and are cut by north-to-northeast striking faults - a structural trend that controls mineralization in the region.
In August 2011 the Company announced the commencement of its Phase I drill program on a new discovery area - the Nareh Prospect -- which contains both porphyry copper-gold and epithermal gold style mineralization. Both targets are within the Nareh volcanic-intrusive complex measuring 2km x 1km diameter and hosting epithermal- and porphyry-style, and skarn mineralization.
The Nareh Porpyry Copper Gold Prospect
Drill holes, NA DDH--001 to NA --004 have been completed at this prospect area. Holes 001 and 002 ended in mineralization, however were terminated at 200m due to depth limitation of the drilling rig despite visual observation of the presence of copper-bearing sulfide minerals. Centurion is currently securing a second, bigger drill rig, capable of drilling to a depth of 1,000 metres in order to continue DDH-01 to a greater depth. Complete assay results from these four drill holes have not yet been received due to delayed analysis turn-around time from the laboratory. Assay results of these drill holes will be reported when received.
Upon the completion of NA DDH04, the rig was re-located to drill the epithermal gold target area- which has widespread gold anomalies on the surface, including rock channel samples assaying up to 11 g/t Au.
Geology of the Nareh Epithermal Gold Prospect
The Nareh epithermal gold mineralization occurs in a sequence of dacite and rhyolite and subordinately of andesite and diorite, all of which are confined within the Nareh volcanic-intrusive complex surrounded by older granodiorite, marl, skarn and hornfels. Those magmatic rocks were variably altered to silica and clay minerals, and brecciated in various places. The silicified rocks appear to form topographically resistant lithocaps that underlie the postulated porphyry mineralization on the basis of the occurrence of Cu-Au-Mo-bearing outcrops at the foothill. In addition, partial oxidation is apparent in the upper part of the rocks, where some of the highest gold grades are located. The complex is cut by a series of NNE and NNW-trending faults, which control the epithermal mineralization.
The current exploration program consists of ground magnetic and soil geochemical surveys over the entire complex area (both the epithermal and porphyry copper prospects), and a minimum of 4,000 metres (m) of reconnaissance diamond drilling.
Highlights of the Nareh Epithermal Gold Target Results to Date
Several high gold anomalies in rock and soil samples have been delineated within the surveyed area, enabling Centurion to generate drill hole locations aimed at discovering economically viable gold mineralization. The most significant anomalies are as follows:
• Assays from a total of 92 rock chip and 1-m channel samples within a 400 x 600 m geochemical anomalous area indicate:
o Continuous channel samples returned 11m of 2.83 g/t gold, with the highest gold grade of 11 g/t over one metre.
o 21 of the rock samples contain greater than 0.1 gram/ton (g/t) gold, including 6 rock chip samples collected at 1m spacing ranging from 1.97 to 9.44 g/t gold.
• Assays from a total of 200 soil samples taken from an expanded 500 x 1,400 m gold anomalous area indicate:
o 20 samples registering between 0.05 and 0.7 g/t gold.
o 130 out of 200 soil samples contain greater than 0.01 g/t gold, (the background/baseline value is 0.005 g/t gold), and gold is correlated positively with pathfinder elements Cu and As.
• The first diamond drill hole (NA DDH--005) on the Nareh gold prospect, collared at the gold anomaly, ended at a depth of 200 m, the maximum capacity of the drill rig. Assays of NA DDH--005 core samples are pending.
• The second hole, (NA DDH--006) located approximately 120 m north of the first hole and directed toward the southwest, is in progress. This hole is designed to test the continuity of the mineralization to the north and northwest.
The Company has held a number of community engagement sessions within the project area that have included teams from the departments of mining, local legislative representatives, village heads and staff, and other community stakeholders. Villagers and stakeholders have been highly participatory and cooperative with respect to road access, construction, and exploration programs in the region.
