The Batu Perak area was targeted for drilling following the receipt of encouraging soil assay results to the west of Batu Mas and Batu Hitam. The +2 g/t Ag soil anomaly at Batu Perak has a NW-trending length of just over 2.5 km and is 1 km wide at its widest point.

In August 2012 the Company reported encouraging results from several drill hole intersections within polymetallic, breccia-hosted mineralisation at Batu Perak, roughly 1 km south of Batu Mas Prospect. Two holes, LWD190 and LWD221, separated by some 80 metres, each intersected what is interpreted to be a sub-horizontal zone of mineralisation within brecciated andesites overlain by approximately 35 metres of caldera-fill sedimentary and volcaniclastic rocks.

High grade intersections in holes LWD190 and 221 were:

• LWD190: 25m @ 2.06 g/t Au Equivalent (1.40 g/t Au, 31 g/t Ag) and 1.95% Combined Pb+Zn+Cu from 39m including:
  • 13.7m @ 3.21 g/t Au Equivalent (2.20 g/t Au, 48 g/t Ag) and 2.60% Combined Pb+Zn+Cu from 40.3m
• LWD221: 26.3m @ 1.63 g/t Au Equivalent (0.62 g/t Au, 43 g/t Ag) and 3.54% Combined Pb+Zn+Cu from 40m including:
  • 7.2m @ 3.92 g/t Au Equivalent (1.44 g/t Au, 116 g/t Ag) and 9.44% Combined Pb+Zn+Cu from 42.8m

It is expected that the Ag-rich mineralisation at Batu Perak will make a significant contribution to the existing resource at Lakuwahi.