Adelaide, Aug 29, 2006 AEST (ABN Newswire) - Directors of Korab Resources Limited (ASX: KOR) are pleased to advise that Korab has almost doubled its exploration ground at its 100% owned Melrose project in Eastern Goldfields.
Melrose Project (Western Australia) - Gold, Iron Ore, Nickel
The new exploration licence applications E53/1261, E53/1262, and E37/872 cover an area of 250 km 2 within a highly prospective Wanganoo greenstone belt where Melrose project is located. The new ground covers areas to the north and to the west of the exploration licences E37/794 and E37/769 and almost doubles the total area of the project from 278 km 2 to 510 km 2 .
Korab's exploration within the new areas will focus on greenstone units prospective for gold and on ultramafic rocks prospective for nickel mineralisation similar in style to Mt. Keith nickel project.
Mt. Keith nickel deposit is a large, low-grade disseminated sulphide ore body that is open cut mined using conventional drill and blast, load and haul methods. The concentrator uses crushing, grinding and flotation to recover nickel as concentrate. Mt Keith is capable of producing 40 000 tonnes of nickel in concentrate a year.
According to its owners, BHP Billiton, the Mt Keith nickel deposit has an open cut mineral resource of 376 million tonnes including 231 million tonnes in measured, 92 million tonnes in indicated and 52 million tonnes in inferred categories at an average grade of 0.52 per cent nickel.
Background information on gold bearing potential of Melrose Project The Melrose Project is located 400km north of Kalgoorlie and 170km north of Leonora. Gold mineralization is hosted by Archaean volcanic rocks including a strong felsic component of Wanganoo/Mt Fisher Greenstone Belt.
This zone is separated from the Yandal Belt (which hosts the large 3.6 million ounce Bronzewing Gold Mine) to the west by a 30 to 40km wide body of Archaean granite. The 2.4 million-ounce Darlot/Centenary Gold Mine is located approximately 70km to the southeast. The project contains significant gold mineralization in an area that has not yet received the exploration attention of other areas which are closer to established infrastructure. A gold resource of 306,000 ounces have been delineated in three deposits in close proximity to each other.
As outlined in earlier announcements, the largest resource is located at the Boundary Deposit where 4.61 million tonnes at 1.37g/t gold (202,000 ounces) have been estimated by an independent consultant. The Bungarra Deposit has an estimated 1.66 million tonnes at 1.64g/t gold (87,000 ounces) and the Stirling deposit contains a further 0.4 million tonnes at 1.31g/t gold (17,000 ounces). The current combined resource for the Melrose Project is 6.67 million tonnes at 1.43g/t gold containing 306,000 ounces.
As previously announced to the market, the project is currently the subject of an in house scoping study to determine the best option for its development. The geological and technical aspects of the study have been mostly completed with the metallurgy being the main area requiring completion. Lohengrin Project (Western Australia) - Uranium, Gold, Copper, Iron Ore Korab has received notice of grant of 2 exploration licences at its Lohengrin project in the Ashburton mineral field near Paraburdoo in Western Australia.
The licences E8/1567 and E8/1569 cover an area of 431 km 2 .The area is highly prospective for unconformity style uranium mineralisation similar to the Angelo and Kintyre deposits also near Paraburdoo and to the Ranger and Jabiluka deposits in the Northern Territory.
Previous exploration at the adjoining Mt. Elephant project where Korab is earning 70% interest has identified several anomalies which returned up to 29g/t gold and more than 10% copper. Limited drilling of one of the gossans within the project has confirmed that significant potential exists for exhalative or VMS-style gold and base metal deposits. Aeromagnetic surveys and ASTER satellite imagery show coincident structural features and anomalous alteration products in soils, over a strike length of several kilometres. The new licences lie on the axis of a major east northeast-trending airmagnetic high, which also displays a number of significant offsets, emanating from a highly ferruginous band of metasediments and felsic volcanics of the Capricorn Formation.
Analysis of emote sensing data indicates a potential for the new exploration area to host a significant iron ore anomaly. Korab is currently preparing an exploration program to be undertaken following the completion of this season's exploration work at Batchelor and Green Alligator in the Northern Territory.
About Korab Resources Limited
Korab Resources Ltd (ASX:KOR) is an international mining and exploration company with operations in Australia and Europe. Korab's projects include Winchester magnesium carbonate deposit and Geolsec phosphate rock deposit at Batchelor in the Northern Territory of Australia as well as a gold and silver deposit at Bobrikovo in eastern Ukraine. The Company also explores for gold and copper at Ashburton Downs in Western Australia and for various metals and specialty minerals at Batchelor in the Northern Territory. Korab's shares are traded on Australian Securities Exchange (ASX) and on the Berlin Stock Exchange (Berliner Börse) through Equiduct electronic trading platform. More information about Korab's projects can be sourced from Korab's website at www.korab.com.au.
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