Sydney, Nov 10, 2008 AEST (ABN Newswire) - Citadel Resource Group Limited (ASX:CGG) is pleased to announce that it has received further significant results from its drilling program at Lodes 2 and 4, Jabal Sayid. Jabal Sayid is the flagship project in Citadel's portfolio of Saudi Arabian gold and base metal projects. Jabal Sayid is a 50% joint venture between Citadel and Saudi company CMCI. The other projects are 100% Citadel owned and operated.
Highlights:
- Three diamond drill holes have been completed to obtain core for metallurgical test work as part of the Jabal Sayid feasibility study into a 3mtpa underground mine at Lode 2 and Lode 4.
- Whilst not a surprise that all holes intersected plus-250 metres of strong copper mineralisation the results are significant in that they continued to expand the size of Jabal Sayid.
- BDH4016 (302m at 2.7% Cu) ended in copper mineralisation at 665m and pushed the plus 1% Cu envelope 42m deeper than the current resource via a high grade zone of 45m at 4.1% Cu, 0.30g/t Au, 24.64g/t Ag from 607m.
- BDH4013 (351m at 1.7% Cu) intersected strong copper mineralisation 100m above the current resource envelope including 64m at 2.3% Cu, 0.51g/t Au.
Results of the metallurgical drilling include:
- 351m at 1.7% Cu, 0.21 g/t Au, 5.4 g/t Ag from 125m downhole (BDH4013), including
-- 64m at 2.3% Cu, 0.51g/t Au, 14.1g/t Ag from 138m downhole and
-- 33m at 3.1% Cu, 0.3g/t Au, 2.8g/t Ag from 343m downhole
- 302m at 2.7% Cu, 0.17g/t Au, 10.5g/t Ag from 363m downhole (BDH4016), including
-- 20m at 3.6% Cu, 0.49g/t Au and 8.5g/t Ag from 365m downhole
-- 12m at 4.9%Cu, 0.55g/t Au and 18.7g/t Ag from 529m downhole
-- 45m at 4.1% Cu, 0.30g/t Au and 24.6g/t Ag from 607m downhole
- 289m at 1.9% Cu, 0.43g/t Au, 21.5g/t Ag from 153m downhole (BDH2024), including
-- 128m at 2.8% Cu, 0.67g/t Au, 35.0g/t Ag from 187m downhole
The copper stockwork mineralisation contained in Lodes 2 and 4 at Jabal Sayid is the subject of a feasibility study into a 3 Mtpa underground mine. Citadel drilled 3 diamond holes to obtain material for metallurgical testing. The holes were designed to maximise the intersection length to provide as much representative material as possible for the test work. Nonetheless, the high grades, and the consistency of those grades are remarkable.
Drillhole BDH4013 was drilled into Lode 4, and intersected 351m at 1.72% Cu, 0.06% Zn, 0.20 g/t Au, 5.43 g/t Ag from 132m downhole. It includes a higher grade run of 64m at 2.27% Cu, 0.12% Zn, 0.51g/t Au and 5.43g/t Ag from 138m. This higher grade run is above the current resource envelope is nearly 100m closer to surface than currently modelled and supports the results from BDH4011 30m to the east. (the results from BDH4011 were released 23/5/08). BDH4013 includes another higher grade zone of 34m at 3.11% Cu, 0.07% Zn 0.29g/t Au and 2.79g/t Ag from 342m downhole.
Drillhole BDH4016 was also drilled into Lode 4. This hole intersected a zone of massive sulphide mineralisation that assayed 26m at 0.39% Cu, 4.50% Zn, 1.13g/t Au, 21.04g.t Ag from 336m downhole. The hole then passed into copper stockwork mineralisation, with a run of 302m at 2.66% Cu, 0.09% Zn, 0.17g/t Au, 10.48g/t Ag from 362m downhole. Several higher grade zones are located within this, including 20m at 3.57% Cu, 0.17% Zn, 0.49g/t Au, 8.5g/t Ag from 365m downhole; 12m at 4.87% Cu, 0.13% Zn, 0.55g/t Au, 18.67g/t Ag from 529m downhole. The deepest higher grade zone of 45m at 4.06% Cu, 0.12% Zn, 0.30g/t Au, 24.64g/t Ag from 607m to 652m downhole pushed the plus 1% Cu envelope 42m deeper than the current resource and drillhole 4016 also ended in mineralisation at 665m downhole.
BDH2024 was drilled down the plunge of Lode 2, and intersected 289m at 1.88% Cu, 0.31% Zn, 0.43g/t Au, 21.47g/t Ag. Within this broad intersection was a higher grade zone of 128m at 2.84% Cu, 0.66% Zn, 0.67g/t Au, 35.02g/t Ag (including 24m at 4.68% Cu, 3.04% Zn, 2.07g/t Au, 112.71g/t Ag).
The core from these three holes is currently at AMMTEC metallurgical laboratory in Perth. It is being used to refine the process circuit design as part of the Jabal Sayid feasibility study. Citadel has to date brought over 20t of core to Perth for test work as part of its thorough feasibility program.
Citadel is aggressively moving the Jabal Sayid project forward:
- Finalising a feasibility study on the Jabal Sayid copper sulphide deposit.
- Total mineral resources at Jabal Sayid of 74Mt, including 52 Mt at 1.6% Cu (Stockwork Cu) 4 Mt at 1.9% Cu & 1.3% Zn (Massive Sulphide Cu/Zn) and 18 Mt at 2.1% Zn & 0.4% Cu (Massive Sulphide Zn) (Table 1).
- Mineralisation at Jabal Sayid is contained in four Lodes. To date Citadel has concentrated on defining copper resources within Lodes 2 and 4.
- A revised resource estimate, this time including gold, will be prepared in Q4.
- 2 rigs are working on surface. Dewatering of the decline is now complete. Preparations are well advanced to move 2 underground drill rigs to site.
- Citadel is well funded, with ~$25M on hand following a successful fundraising early this year.
Contact
Citadel Resource Group Limited
Inés Scotland
TEL: 04000 39664
ines.scotland@citadelrg.com.au
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