Olympus hits higher gold grade at Jugan Hill, Bau, East Malaysia

TORONTO, ONTARIO–(Sept. 20, 2012) – Olympus Pacific Minerals Inc. (TSX:OYM)(ASX:OYM)(OTCQX:OLYMF)(FRANKFURT:OP6) has drilled a 24.50 meter intersection grading 7.15 g/t gold in drill hole JUDDH68A at its Jugan Hill deposit within the Bau Gold Project in Sarawak, East Malaysia. This result adds weight to the company’s expectation of higher gold grades at depth.

The company is drilling progressively deeper holes within the deposit to test the conceptual model, which predicts higher grades at depth below the existing shallow resource. Consistent with the model, diamond drill hole JUDDH-68 intersected 24.50 meters @ 7.15 g/t Au (including 11.50m @ 10.4 g/t Au) from 317.50m to 342.00m down-hole (270 meters vertically below surface). Further step-out drilling is ongoing.
 
Jugan Hill is one of several known gold deposits within the Bau goldfield. The Bau region is a historic gold field with many geological similarities to the Carlin District of Northern Nevada, which is one of the world’s largest gold fields.
 
The company’s CEO, John Seton said; “The discovery of high grade gold at 270 meters below surface provides further compelling evidence that gold mineralisation continues down dip as well as along strike. This fact, along with the continued success of our step-out drilling increases our confidence that Jugan Hill has large-scale development potential. It’s our belief that the surface deposits at the Bau goldfield are the shallow expression of deeper higher grade deposits just as it is true in many Carlin–style deposits in Nevada which Bau has been closely compared. Approx 3M oz of historic mining happened within 70 – 80 meters of surface. The current resource is mostly within 120 meters of surface. Bear that in mind when you consider the latest results and you can start to see the size potential.”
 
HIGHLIGHTS
·         Drill hole JUDDH-68A intersected 24.50 meters at 7.15g/t gold, including 11.50 meters at 10.42g/t Au.
·         Gold grades appear to be increasing with depth
·         The Jugan hill gold deposit remains open down-dip and along strike in both directions.
 
DRILLING UPDATE
Relatively high-grade gold mineralisation has been intersected in drill hole JUDDH-68A at approximately 270 meters vertically below surface and 80 meters down dip from the nearest earlier hole (JUDDH-53). JUDDH-68A averaged 7.15g/t gold over a down-hole interval of 24.50 meters (317.50m – 342.00m), including 11.50m @ 10.42 g/t gold, from 320.00m down-hole. The current interpretation is that this approximates the true width of the zone, which remains open down dip and along strike. The location and details of the JUDDH-68A intersection are shown in cross-section and perspective view which can be viewed here: http://www.olympuspacific.com/news/Olympus-Hits-Higher-Gold-Grade-At-Jugan-Hill-Bau-East-Malaysia
 
“The grade of this intersection is significant because it confirms additional potential for deeper underground mining below the currently proposed open-pit development”.
 
The JUDDH68A mineralization comprises up to 6% sulphides (mainly pyrite and arsenopyrite). The sulphides occur disseminated within the host rock and as clusters along rock laminae and clay-carbonate veinlet boundaries. The intercept is strongly silicified, suggesting that it may be part of a downward trend towards a deeper silica-rich mineralization zone”.
 
The Company has completed an additional thirteen (mainly step out) drill holes since the previous update, which has continued to extend and increase the deposit dimensions at depth. Most of these holes tested the deposit to depths of between 200 meters and 250 meters below surface. This drilling has shown a northerly plunging shoot of higher grade mineralization within the core of the deposit. The deposit strikes northeast-southwest, dips northwesterly, and remains open at depth to the northeast. Ongoing drilling will continue to probe these extensions and delineate the ore body geometry. A further resource estimate is scheduled for the fourth quarter 2012.
 
Assay results from the latest holes are shown in the table below.
Hole No From (m) To (m) Length (m) Gold (g/t)
JUDDH-60 221.15 263.00 41.85 1.55
JUDDH-60 – incl 221.15 235.00 13.85 1.76
JUDDH-60- incl 249.00 263.00 14.00 2.25
JUDDH-61 232.00 268.40 36.40 1.40
JUDDH-61 – incl 260.00 268.40 8.40 2.44
JUDDH-63 208.00 256.00 48.00 1.05
JUDDH-65 239.00 240.00 1.00 0.76
JUDDH-66 226.30 232.00 5.70 1.10
JUDDH-66 239.00 254.00 15.00 1.41
JUDDH-66 -incl 251.00 253.00 2.00 5.23
JUDDH-66 271.80 282.10 10.30 0.73
JUDDH-67A 285.00 291.20 6.20 0.86
JUDDH-68A 317.50 342.00 24.50 7.15
JUDDH-68A – incl 320.00 331.50 11.50 10.42
JUDDH-69A 215.00 216.00 1.00 0.58
JUDDH-69A 223.00 270.00 47.00 1.05
JUDDH-69A – incl 231.00 241.00 10.00 1.68
JUDDH-69A 275.00 279.00 4.00 0.89
JUDDH-70 87.00 94.00 7.00 1.13
JUDDH-70 – and 105.00 127.00 22.00 1.44
JUDDH-70 – incl 111.00 118.00 7.00 2.70
JUDDH-70 – and 134.40 174.65 40.25 0.86
JUDDH-70 – incl 151.00 157.00 6.00 1.55
JUDDH-70 – incl 165.00 174.00 9.00 1.27
JUDDH-71 98.00 161.00 63.00 1.58
JUDDH-71 – incl 110.00 119.00 9.00 2.28
JUDDH-71 – incl 136.00 146.00 10.00 3.17
JUDDH-72 28.70 49.00 20.30 1.24
JUDDH-72 53.00 91.00 38.00 2.08
JUDDH-72 – incl 60.00 65.00 5.00 3.00
JUDDH-72 – incl 86.00 90.00 4.00 3.74

Drill core is either PQ or HQ in size. Holes are routinely surveyed, and core is oriented. Holes are geologically logged, and samples selected for analysis. Olympus prepares and dispatches samples directly to SGS laboratories. Olympus operates a QAQC protocol that incorporates standards, duplicates, and blanks in each batch of samples submitted for analysis. The Gold is analysed by Fire Assay using a 50g charge with an AAS finish and a detection limit of 0.01ppm gold. 
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