Sydney, Jan 7, 2009 AEST (ABN Newswire) - Citadel Resource Group Limited (ASX:CGG) is pleased to announce further significant results from its drilling program at Lode 2, 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 Consolidated Mining Company (CMCI).
Drillholes BDH2030 and BDH2036 were drilled on section 638460mN. The holes were drilled as part of the Definitive Feasibility Study (DFS) to provide more detail in this section, however the results are far better than expected from the existing resource model.
BDH2036 intersected 98m at 2.41%Cu, 0.47g/t Au, 28.0g/t Ag and 0.86% Zn from 258m downhole. Copper mineralisation is 30m higher than expected, and the intersection was 53m wider anticipated. BDH2036 includes a higher grade intersection of 60m at 3.03% Cu, 0.32g/t Au, 23.4g/t Ag and 0.33% Zn.
BDH2030 intersected 68.3m at 3.28% Cu, 0.41g/t Au, 15.45g/t Ag and 0.24% Zn from 179m downhole, including a higher grade zone of 10.5m at 6.89% Cu, 0.87g/t Au, 32.3g/t Ag and 0.81% Zn from 184.5m downhole. These high grades were significantly above the anticipated resource grade and will upgrade the high grade domain in the Lode 2 resource model.
These results have given Citadel the confidence to drill some further step out holes. This is planned in combination with the in-fill drilling program currently underway and scheduled for completion by mid 2009.
Commenting on the results, Ines Scotland CEO of Citadel said:
"These results continue to expand the size of the project. Jabal Sayid is a world class copper and gold project and the more we drill the more confident we become with the continued resource growth."
Citadel is aggressively moving the Jabal Sayid project forward by:
- Completing a DFS on the Jabal Sayid copper and gold project
- Refurbishment of the existing decline is near completion with electrical services currently being installed
- 3 diamond drill rigs are working on surface and 2 underground diamond drill rigs are now on site. These rigs are programmed to complete in-fill resource drilling and extension drilling during the next few months
- A revised resource estimate is being finalised and will be announced to the market once complete. The results of BDH2030 and 2036 have missed the cut-off for the new resource but will be included in a further updated resource later in 2009
- Citadel is well funded, with ~$20M on hand and no debt facilities.
Note 1:
The information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Steve Rose, Chief Geologist, who is a Member of The Australasian Institute of Mining and Metallurgy, a Member of The Institution of Materials, Mining and Metallurgy, and a Chartered Engineer. Steve Rose is a full time employee of Citadel Resource Group. Steve Rose has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Steve Rose consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Contact
Citadel Resource Group Limited
Ines Scotland (CEO)
TEL: +61-400-039-664
ines.scotland@citadelrg.com.au
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