Anglo Australian Resources NL (ASX:AAR) Wide Zones Of Massive And Disseminated Copper And Zinc Sulphides Intersected At Sandiego Deposit

Perth, May 10, 2010 AEST (ABN Newswire) - In April Anglo Australian Resources NL (ASX:AAR) (PINK:AAURF) commenced an extensive drilling program, consisting of approximately 3200m of RC and 1100m of diamond drilling, at the Company's Koongie copper zinc project located 25km south-west of Halls Creek in the Kimberley region of Western Australia.

The program is designed to enhance the potential for economic development of the Koongie Project and to advance the pre-feasibility work currently in progress by:

- Targeting relatively shallow high grade supergene copper resource extensions at the Sandiego Deposit

- Targeting high grade copper sulphide depth extensions at Sandiego

- Testing potential strike extensions of near surface zinc sulphide mineralisation at the Atlantis Prospect

- Drilling for geotechnical purposes

The Company has recently completed the RC component of the drilling program targeting shallow high grade supergene copper mineralisation at Sandiego. RC drilling of precollars for deeper diamond drilling, which is planned for later this month, continues.

Figure 1 (see link at the bottom of the release) shows the holes completed to May 4th.

Completed drill holes have been geologically logged, defining copper and zinc mineralised zones. Substantial mineralisation has been confirmed in these zones by testing with a handheld portable Innov-X XRF device that allows levels of copper, lead and zinc to be determined approximately. Samples have been sent to the Genalysis laboratory in Perth for analysis.

Supergene Copper Extensions at the Sandiego Deposit

As advised in the March 2010 Quarterly Report the Company is targeting a sub-horizontal zone of chalcocite-rich supergene copper capping the Sandiego Deposit, extending over 200 metres of strike, situated 80-100m below surface. This zone, which is interpreted to be approximately 40m wide, is confined by footwall shales and hanging wall volcanics. Previously this zone has returned intersections such as 22m @ 9.91% Cu (SRCD03); 25m @ 11.4% Cu (SRCD31); 8.8m @ 9.1% Cu (SRCD30) and 11.7m @ 4.04% Cu (DDH24).

Drilling during April confirmed the presence of a high grade chalcocite cap and has intersected wide zones of massive and disseminated copper and zinc sulphides in four holes in the central part of the deposit. Two additional holes in the same area have been precollared for later diamond drilling in this part of the deposit.

SRC061 provided the most strongly mineralised intersection with 74m of massive sulphides, consisting of a 12m high grade copper, chalcocite-rich, cap followed by 44m of massive pyrite, sphalerite, chalcocite and chalcopyrite mineralisation. The remaining 18m of sulphides are dominated by pyrite. This intersection was shallower than expected, commencing 105m down hole or only 80m below the surface. Assaying is expected to return high grade copper and zinc values.

Hole SRC060 also intersected chalcocite mineralisation at levels (111m down hole) shallower than expected. Three separate zones of sulphide were intersected including chalcocite-pyrite dominant 111-120m; pyrite - sphalerite dominant 124-134m and a second pyrite - sphalerite dominant zone at 164 -174m Hole SRC062 intersected three separate zones of sulphides including a sphalerite - chalcocite zone at 130 - 145m; a sphalerite - pyrite zone at 150-156m and chalcopyrite - pyrite zone at 169 -173m.

Hole SRC065 intersected a 10m wide zone of disseminated pyrite and chalcopyrite.

Table 1. Table of drill holes completed at the Koongie Project

----------------------------------------------------------------Hole No.  Location   AMG_E   AMG_N    Depth  Dip   Azimuth----------------------------------------------------------------SRC056    Sandiego   339552  7968112  160    -58   110SRC057    Sandiego   339568  7968149  208    -58   110SRC058    Sandiego   339594  7968159  40     -58   110 PrecollarSRC059    Sandiego   339574  7968212  110    -58   110 PrecollarSRC060    Sandiego   339592  7968204  200    -58   110SRC061    Sandiego   339600  7968222  180    -58   110SRC062    Sandiego   339598  7968266  220    -58   110SRC063    Sandiego   339866  7968149  294    -60   290 PrecollarSRC065    Sandiego   339628  7968297  190    -58   110SRC066    Sandiego   339612  7968348  180    -58   110SRC067    Sandiego   339628  7968384  150    -58   110SRC068    Sandiego   339644  7968421  160    -60   110ARC011    Atlantis   344750  7968710  150    -60   360ARC012    Atlantis   344650  7968750  150    -60   360----------------------------------------------------------------

Overview

It is anticipated that the program will increase resources at Sandiego (particularly copper resources). Such an increase will enhance the potential for economic development. The RC component of the drilling program is nearing completion while the diamond drilling is scheduled to commence towards the end of May.

For the complete Anglo Australian Resources announcement including Figure 1, please view the following link:

http://www.abnnewswire.net/media/en/docs/62828-ASX-AAR-490670.pdf

Contact

Angus C. Pilmer Executive Director Tel: +61-8-6380-1904 Peter Komyshan General Manager Exploration Tel: +61-8-9382-8822