Perth, Jan 9, 2009 AEST (ABN Newswire) - Phase two of a resource definition and extension diamond drilling programme at the Anglo Australian Resources NL (ASX:AAR)(PINK:AAURF) wholly owned Koongie Project, located 25kms east of Halls Creek, in the Kimberley Region of Western Australia, has now finished. Twelve deep drillholes (7,214m of RC pre-collars, 2624.2m of diamond core tails) were completed.
Assay results for some holes were reported in two ASX announcements to the Australian Securities Exchange on 30 October 2008 and 5 December 2008.
Assay results for the five remaining holes are presented in this announcement and are detailed in Table 1.
SANDIEGO DEPOSIT
SRCD053 intersected several zones of primary copper and zinc mineralisation approximately 450m below surface. Chalcopyrite dominates copper-rich zones and sphalerite dominates zinc-rich zones. The hole ended in mineralisation. True width of the intersections is about 45% of the reported down-hole intervals in all Sandiego holes.
Intersections at 1% Cu and 3% Zn cut-offs are:
---------------------------------------------------------500 - 504m 4m @ 2.9% Cu 1.69% Zn 22g/tAg 0.27g/t Au509 - 517m 8m @ 1.3% Cu 5% Zn 9g/tAg inc. 3m @ 0.9% Cu 13%Zn 18g/t Ag 0.23g/t Au inc. 6m @ 1.5% Cu 0.9%Zn 5g/t Ag526 - 553m 27m @ 1.3% Cu 10.1%Zn 5g/tAg 0.24g/t Auinc. 526 - 532m 6m @ 2.5% Cu 0.7% Zn 8g/t Ag 0.32g/t Auinc. 532 - 553m 21m @ 0.9% Cu 12.7%Zn 4g/t Ag 0.23g/t Au---------------------------------------------------------
This deep intersection is located more than 80m vertically from the nearest previous intersections and occurs outside the limits that have been used in estimating the current resource. The mineralised zone in Hole SRCD053 is also three to four times thicker than zones in neighbouring holes. Consequently, this intersection is expected to result in a significant increase to the Sandiego resource when new resource estimation is undertaken shortly.
Holes SRCD028A and SRCD030, which were drilled primarily to obtain material for metallurgical testing from the main Sandiego zinc-rich deposit, also intersected high-grade supergene and sulphide copper mineralization at relatively shallow depths. Wide high-grade copper intersections of 39m @ 3.7% Cu (SRCD028A) and 14.7m @ 4.8% Cu and 25m @ 5.7%Cu (SRCD030) correlate well with the previously announced intersection of 68m @ 6.8% Cu (SRCD031. This drilling has confirmed the presence of high-grade copper mineralization at relatively shallow levels (80 - 200m vertically). Copper grades in the recent holes are much higher than grades in earlier holes drilled in this part of the deposit. The recently completed Pre-Feasibility Study on mining of Sandiego did not contemplate any mining of this copper zone. Additionally, elevated gold and silver assays in SRCD030 indicate that gold and silver credits might positively impact the development economics of the Sandiego deposit.
Intersections at 1% Cu and 3% Zn cut-offs are:
SRCD028A------------------------------------------------------------------236.8 - 238.5m 1.7m @ 0.03% Cu 11.2% Zn 3.41%Pb 65g/tAg 0.12g/t Au261 - 265m 4m @ 0.7% Cu 12.5% Zn 32g/tAg 264 - 303m 39m @ 3.7% Cu 0.7%Zn 28g/t Ag 0.27g/t Au314 - 316m 2m @ 0.11% Cu 4.8%Zn 22g/tAg------------------------------------------------------------------SRCD030------------------------------------------------------------------208 - 222.7m 14.7m @ 4.8% Cu 15.4% Zn 124g/t Ag 1.98g/t Au229 - 238m 9m @ 1.1% Cu 6.32% Zn 144g/t Ag 0.78g/t Au244 - 256m 12m @ 1.3% Cu 15.5% Zn 2.9% Pb 319g/t Ag 259 - 262m 3m @ 0.87 Cu 5.4% Zn 44g/t Ag 0.22g/t Au 268 - 293m 25m @ 5.7% Cu 0.3% Zn 34g/t Ag 0.61g/t Au------------------------------------------------------------------
ONEDIN DEPOSIT
Development of a satisfactory model for the Onedin mineralisation has proven difficult because of insufficient drilling and because of structural complexity (plunging shoots due to folding) and the complication of a supergene overprint associated with deep weathering. Prior to the 2008 drilling program only five holes had intersected the primary (unweathered) sulphide zone. Additionally, until the 2008 drilling program there have been few diamond drill hole intersections in the weathered zone that contains the previously announced oxide and transition resources. The 2008 drilling tested a newly developed model for the deposit that interprets the primary mineralisation to be constrained to multiple folded stratabound horizons.
Hole ORCD051 (Table 1) intersected eight zones of zinc-rich sulphide mineralisation between 194 and 323m entirely within the primary zone of mineralisation. High levels of silver are a feature of deeper intersections at Onedin. Estimated true widths of the zones vary from 60% to 80% of corresponding downhole intervals.
Intersections at 1% Cu and 3% Zn cut-offs are:
------------------------------------------------------------------194 - 200m 6m @ 1% Cu 14.1% Zn 31g/t Ag 212 - 216m 4m @ 0.3% Cu 8.7% Zn 12g/t Ag219 - 223m 4m @ 0.1% Cu 4.4% Zn 4g/t Ag229.6 - 243m 13.4m @ 0.1% Cu 4.5% Zn 11g/t Ag248 - 256m 8m @ 2.4% Cu 3.2% Zn 100g/t Ag276 - 278m 2m @ 0.2% Cu 7.0% Zn 35g/t Ag 0.57% Au296 - 312m 16m @ 0.1% Cu 9.26% Zn 3.16% Pb 198g/t Ag318 - 323m 5m @ 1% Cu 7.59% Zn 3.35% Pb 221g/t Ag 0.34g/t Au------------------------------------------------------------------
Hole ORCD050 (Table 1) intersected four zones of mineralisation entirely within the Transition Zone where copper mineralization occurs mainly as malachite and zinc mineralization mainly as smithsonite.
Intersections at 1% Cu and 3% Zn cut-offs are:
-----------------------------------------------------------------80 - 89.5m 9.5m @ 1.5% Cu 7.2% Zn 6.1% Pb 62g/t Ag89.5 - 111.7m 22.2m @ 1.1% Cu 21% Zn 4.6% Pb 78g/t Ag 0.6g/t Au114.7 - 121m 6.3m @ 0.3% Cu 4.6% Zn 0.3% Pb 153.7 - 184m 30.3m @ 1.1% Cu 11.7% Zn 1.7% Pb 94g/t Ag-----------------------------------------------------------------
The two holes completed at Onedin in the 2008 program provided valuable geological information that will lead to a revision of the current resource model. In particular, the plunge of the mineralisation is now considered to be steeper than previously interpreted, an interpretation that opens up new drilling targets at depth.
OVERVIEW
New resource models for both Sandiego and Onedin are being developed. Resource estimates for the primary and transitional mineralization at Sandiego are expected to increase as a result of the 2008 program. Both the Onedin and Sandiego deposits remain open at depth and resources may be increased by additional drilling.
The wide, high-grade copper intersections at relatively shallow depths in recent holes at Sandiego are potentially very significant. The recently completed Pre-Feasibility Study into development of the Sandiego deposit did not envisage mining of any copper mineralization in the Transition Zone where the recent intersections have been obtained. The copper mineralization may positively impact the development economics of the Sandiego deposit, particularly as it occurs at relatively shallow depth.
Contact
Angus Pilmer
Executive Director
Telephone: +61-8-9486-7211
Peter Komyshan
General Manager Exploration
Telephone: +61-8-9322-5811
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