Sydney, Nov 28, 2005 AEST (ABN Newswire) - The Directors of Pacific Magnesium Corporation Ltd ("PacMag") (ASX: PMH) are pleased to report the recommencement of drilling at the Blue Rose project in South Australia, targeting extensions to known near surface oxide copper mineralisation, along with first pass testing of five new geophysical targets.
The approximately 90 hole drilling program is being funded and operated by PacMag, which is now a significant independent copper exploration company following the acquisition from Giralia Resources NL ("Giralia") (ASX: GIR) of a package of highly prospective copper-gold-molybdenum projects, including Blue Rose, and the Ann Mason porphyry copper deposit in Nevada.
PacMag can earn an initial 51% interest in the 1500 square kilometre Blue Rose project through expenditure of $1 million within 2 years, including $500,000 in year 1 before withdrawal, and can increase its interest to 75% by completion of a Bankable Feasibility Study.
The drilling program commenced last week at Blue Rose is designed to further extend the strike length of shallow oxidised skarn-style copper mineralisation discovered by Giralia at Blue Rose. Better intersections from previous drilling include 41 metres @ 1.62% copper from 9 metres depth, and 48 metres @ 1.04% copper from 8 metres depth. Drilling completed in August-September 2005 extended established oxide copper mineralisation to over 750 metres strike, with broad oxide copper intersections returned at both the western and eastern ends of the Blue Rose prospect.
Mineralisation remains open with several holes drilled further east failing to reach target depth, due to the limitations of the small capacity rig previously employed. In particular a number of holes adjacent to recent hole RABR214 (10.5 metres @ 1.54% copper, 0.23g/t gold within 22.5 metres @ 0.99% copper) at the eastern end of the oxide copper zone are deemed to be ineffective due to poor drill depth penetration. A step out hole 400 metres further to the east of the current limit of mineralisation returned 39 metres @ 0.21% copper along a magnetic anomaly similar to that associated with the established mineralised zones, suggesting potential for further strike extensions.
Holes are also planned to the west of the Blue Rose oxide zone to test along strike from the open ended intercept in recent hole RABR198 which returned 15m @ 1.37% copper. Additionally, five new regional targets with geophysical signatures similar in character to that of Blue Rose will be tested by broadly spaced first pass aircore drilling traverses.
A program of diamond drilling is also planned to test depth extensions and to obtain orientated drill core from the fresh rock (sulphide) zone beneath the oxide intersections to allow better targeting beneath the oxide zones. Previous intersections from within the sulphide zone include 48 metres @ 0.82% copper and 1.01 g/t gold. In addition drilling is proposed to test a substantial nearby aeromagnetic anomaly modelled as a porphyry-style copper-gold target.
Contact
Michael Clifford / Mike Joyce
TEL: +61 8 9481 4440
Email: info@pacificmagnesium.com
http://www.pacificmagnesium.com
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