Brisbane, Nov 7, 2008 AEST (ABN Newswire) - North Queensland Metals (ASX:NQM) Provide Exploration Update At Baal Gammon And Pajingo Gold Mine with the following highlights:
- Herberton Project: Further exploration planned at Baal Gammon North following encouraging drill results
- Pajingo gold mine: Forward sales above A$1150/oz secured for December - February.
Herberton Project:
The Baal Gammon North area, located approximately 1 km northeast of the Baal Gammon ore body, is a primary target for exploration due to known copper-indium-silver-tin mineralisation identified by previous small scale mining activity together with drilling mainly by Newmont.
Two mineralized structures have been targeted. The Consolation vein system includes two main veins containing copper, indium and silver over an inferred strike length of 280m. The Confederation vein system located to the south-east is offset from the Consolation veins system and is approximately 200m in strike length. The mineralised veins have been intersected over a 100-200m vertical extent below steep terrain.
This first round of drilling for NQM on the Baal Gammon North area was completed in September 2008. The summary of results is as follows:
The drilling program consisted of six Reverse Circulation holes for a total of 600m.
- Successfully targeted extensions to previously identified vein systems. Modelling is likely to show new interpretations of the orientation of the veins within the system
- Of these holes, three contained significant mineralisation - CNS02, CNS04 and CNS06.
- The best mineralised intercept was in Hole CNS04, between 111m and 134m.
Assays for this intercept were 2.24 % copper, 161 ppm indium, and 75 ppm silver.
The above included 6m (between 118m and 124m) at 3.9 % copper, 270 ppm indium and 132 ppm silver.
The reported intercepts are down hole and not true thicknesses. True thicknesses will be reported when the mineralised zones are modelled and correlated to existing veins allowing estimation of true thickness.
Drilling Results
All drill holes contained trace amounts of sulphide mineralisation, and three holes contained significant intercepts. Sulphide mineralisation was similar to that seen at the nearby Baal Gammon deposit. Non-sulphide mineralisation and alteration was common in the form of chlorite and quartz sericite.
--------------------------------------------------------Hole From To Total True Cu In Ag Sn Pb Zn ID (m) (m) m's Width (%)(ppm)(ppm) (ppm)(ppm)(ppm)--------------------------------------------------------CNS04 111 134 23 TBA 2.24 160 74.55 713 326 1284(inc.)118 124 6 TBA 3.90 270 132.53 1433 291 1855CNS02 2 7 5 TBA 0.19 <10 1.20 12 192 1377 39 46 7 TBA 0.26 <10 1.08 10 204 93 93 94 1 TBA 2.00 140 57.50 250 30 2050CNS06 47 51 4 TBA 1.44 177 90.25 1580 720 1822--------------------------------------------------------
Pajingo gold mine: Forward Sales
NQM has taken out forward sales commitments totalling 3240oz over the 3 months December 2008 to February 2009. This amount represents approximately one third of NQM's share of forecast production from the 60% owned Pajingo gold mine near Charters Towers in north Queensland.
---------------------------------------------Delivery Commitment Price Value---------------------------------------------December 2008 1080oz A$1152.60/oz A$1,244,808January 2009 1080oz A$1153.25/0z A$1,245,510February 2009 1080oz A$1154.60/oz A$1,246,968---------------------------------------------
NQM's Chief Executive Officer Mr John McKinstry said, "NQM has maintained a cautious approach to forward sales of gold, being mindful of not only the volatility of prices, but also the commitment to delivering gold when required. We do not regard the use of forward sales as being a large part of the Company's ongoing strategy as we enjoy a healthy cash margin and have no financing commitments which require us to take out forward price coverage. "However, we saw the opportunity to lock in a portion of our production at a high price with minimal risk on delivery. We will regularly review the market situation in future, maintaining a conservative approach to any form of hedging."
Contact
John D McKinstry
Tel: 1300 308 832
Fax: 07 3666 0510
Email info@nqm.com.au
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