Perth, July 16, 2009 AEST (ABN Newswire) - Anglo Australian Resources NL (ASX:AAR) Report On Activities For the Quarter Ended 30 June 2009
HIGHLIGHTS
FEYSVILLE GOLD PROJECT
- 1180m RC drilling program completed at Rogan Josh gold prospect. Encouraging high grade results of 2m @ 5.43g/t Au, 2m @ 14.34g/t Au, 1m @12.09g/t Au, 4m @ 5.42g/t Au and 6m @ 8.24g/t Au highlight the immediate potential of the project.
KOONGIE COPPER-ZINC PROJECT
- Koongie feasibility studies continued with an emphasis on the copper potential of project.
- Metallurgical testwork on copper mineralisation from the Sandiego Transition Zone commenced.
VICTORIA RIVER DOWNS ZINC PROJECT
- The Northern Territory Government approves co-funding of a regional gravity survey.
EXPLORATION
- Exploration expenditure totalled $147,845.
FEYSVILLE PROJECT -WA
Mining Leases 26/290, 26/291
100 % interest
The Feysville Project consists of all mineral rights attached to two mining leases located 16km SSE of Kalgoorlie. The project is situated in the geological / structural corridor, bounded by the Boulder Lefroy Fault that hosts the world class deposits of Kalgoorlie and St Ives, as well as other substantial deposits in the New Celebration, Kambalda and Hannans South areas. It has been subjected to extensive exploration for gold and nickel by Anglo Australian Resources NL since 2003.
Recently a thorough review of previous work on the Feysville project identified the Rogan Josh Prospect as a significant under-explored gold target. Previous drilling by Western Mining at Rogan Josh had located a mineralised zone with intersections such as 8m @ 3.3g/t Au; 2m @ 8.8g/t Au and 2m @ 4.28g/t Au. Most mineralised intersections are from a sub-horizontal supergene zone near the base of weathering and oxidation about 30m below the surface. Anglo Australian Resources NL interprets the supergene mineralisation as extending over an area up to 700m long within which occur as intersections of 2-8m thickness.The source of the supergene gold mineralisation is interpreted to be bedrock gold mineralisation associated with the Hannans South Shear Zone, which underlies the supergene mineralisation. Rogan Josh presents a compelling target for potentially open pittable supergene mineralisation and also for bedrock mineralisation.
An RC program, testing the Rogan Josh anomaly, consisting of 13 holes totalling 1180m was completed in June despite rain hampering access to drill sites. Samples from the drilling were collected at 1 metre intervals and assayed for gold.
Results from this program including 2m @ 5.43g/t Au, 2m @ 14.34g/t Au, 1m @12.09g/t Au, 4m @ 5.42g/t Au and 6m @ 8.24g/t Au highlight the prospectivity of this prospect and the Hannans South Shear Zone. New intersections confirm the subhorizontal supergene nature of the mineralisation. A bedrock source for this mineralisation remains to be located. Drill holes at the prospect still remain wide spaced at 40 x 50-130m.
The three southernmost sections drilled in the current program contain the highest grade intersections and also appear to indicate that the mineralisation is open to the south. Further extensions of the mineralisation to the south east is suggested by low grade supergene gold mineralisation within two traverses of wide spaced shallow vertical aircore holes drilled previously by WMC. Beyond that, a further potential 2km strike extension of the Hannans South Shear Zone, to the south east, remains untested by any drilling and will be tested in the future.
KOONGIE COPPER - ZINC PROJECT - WA
Mining Leases 80/276, 80/277, Prospecting Licenses 80/1597 - 1611,Exploration Licences 80/3494, 80/3495
100% interest
An extensive resource definition and extension diamond and RC drilling programme at Anglo Australian Resources' wholly owned Koongie Project, located 25kms east of Halls Creek, was completed in November 2008. The program, which included several deep drill holes, consisted of 7214m of RC pre-collars and 2624.2m of diamond core tails. It tested the Sandiego, Onedin, Atlantis and Neptune prospects. Substantial new intersections outside the limits of the Onedin and Sandiego resource models have enabled re-estimation of mineral resources. The increased resource estimates for the Sandiego and Onedin deposits were announced in the March Quarterly Report.
In particular, the Company is encouraged by the 60% increase in copper content of the Sandiego resource and the presence of relatively shallow high-grade copper intersections such as 68m @ 6.8%Cu, 9.6% Zn, 98.7g/tAg, 0.34g/t Au (SRCD031). This has provided encouragement to progress feasibility work. Given the improvement in copper prices over the last 6 months, the focus of the feasibility work is on optimisation and the potential for commercial development of the copper resource.
Previous financial modelling of mining the Sandiego deposit had excluded the copper from the relatively shallow Transition Zone, as no metallurgical testwork had been completed on this material. Metallurgical testwork has recently commenced at Optimet Laboratories on Transition Zone samples collected during the 2008 drilling program. As the high-grade copper occurs either as chalcocite or chalcopyrite, the mineralisation is expected to be amenable to conventional processing. Preliminary metallurgical results are encouraging.
The substantial tonnage increase of the Sandiego Mineral Resource has the potential to increase the estimated mine life of 4 years, previously envisaged in the Pre-Feasibility Study into development of the Sandiego deposit, to 7 years.
The substantial increase in the copper resources at Sandiego also enables the Company to commence evaluation of new development scenarios.
Financial modelling has continued to evaluate the impact of increased resources, inclusion of new copper resources and decreases in operating and capital cost estimates.
The Company also continues to assess the potential of the region around the Koongie Project and has applied for an additional exploration licence (156sqkm) covering a 20km of strike of the Koongie Park Formation, the main host sequence for copper and zinc mineralisation within the district, about 9km south west of the Sandiego deposit.
VICTORIA RIVER DOWNS PROJECT - NT
Exploration Licences, 25422-3, 25728 Exploration Licence Applications 25420, 25424, 25540, 25729, 25730
The Company's application under the Geophysics and Drilling Collaboration Program ('GDCP") of the Northern Territory Government for co-funding of a helicopter-supported gravity survey at its Victoria River Downs Project in the Northern Territory has been successful. The GDCP will make reimbursement to a maximum of $50,000 to assist with the costs of exploration geophysics or drilling in remote areas.
The Company is targeting sedex-style zinc-lead deposits in the Victoria River Basin. The Basin has strong similarities to the Macarthur and Nicholson Basins which host the giant Macarthur River and Century sedex-style zinc deposits. The project, located 200 km east of Kununurra (WA) and 250 km southwest of Katherine (NT), covers a sequence of Proterozoic sediments dominated by dolomitic carbonates and other fine-grained sediments. The sediments are generally flat lying with an overall very shallow north-easterly dip. Several stratigraphic horizons have been identified as having potential to host sedex-style deposits. The project area also contains several galena (lead sulphide) occurrences. Lead isotope dating of the galena indicates the Basin rocks are the same age as all the Proterozoic basins elsewhere which host some of Australia's largest zinc-lead resources.
The Company recognizes major regional structures transecting the Basin and interprets these as possible growth structures that could potentially be feeder structures which may have focused the flow of base metal rich fluids. A gravity survey, planned to commence in July 2009, has been designed to target a major north south fault and associated splay faults and domes over a strike length of 50km. This area contains extensive stream sediment geochemistry zinc-lead anomalies. The survey should better define basement structure, as well as providing sufficient detail to target specific gravity anomalies (potentially reflecting a high density sulphide deposit) for eventual drill testing. The Company has also applied for an additional tenement of 417sqkm covering strike extensions of these major structures.
The Company is encouraged by Proto Resources & Investments Ltd's recent announcement that it has intersected significant copper mineralisation while testing a combined gravity/magnetic anomaly within sediments of the Limbunya Formation, 35km west of the Victoria River Downs Project. A bulls-eye magnetic anomaly similar to the magnetic anomaly described by Proto is located on the Company's EL 25728 within Limbunya Formation sediments (35km north east of Lindeman's Bore) and adjacent to a major regional structure. The gravity survey will cover this area.
DALGARANGA PROJECT - WA
Exploration Licence, 59/1127
The project is located 60 km northwest of Mt Magnet and 60 km southwest of the Big Bell mine, within the Dalgaranga greenstone belt. A large area of outcropping calcrete, located within the central of the project area, has potential to host uranium mineralisation within a palaeo-drainage system. A program of reconnaissance RAB drilling is planned.
For the Full Quarterly Report including charts and data, please visit:
Link: http://www.abnnewswire.net/media/en/docs/61053-asx-aar-20090716.pdf
Contact
Angus C. Pilmer
Executive Director
Peter Komyshan
General Manager Exploration
Telephone: (08) 9486 7211
Telephone: (08) 9322 5811
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