Sydney, Dec 5, 2005 AEST (ABN Newswire) - A1 Minerals (ASX: AAM) ("A1") advise that recent reverse circulation (RC) drilling carried out by A1 at BrightStar Beta has significantly increased the resource (JORC compliant) by a further 89,000 ounces gold.
The resource increase occurred both along strike north of the Mikado Pit, extending the shallow Inferred resource a further 70 metres, and at depth, where recent RC drilling and geological interpretation has enabled the Inferred resource to be extended to approximately 230 metres below the surface.
Complementing A1's long term goal of multiple, higher grade gold assets in the multi-million ounce gold producing Laverton District of Western Australia, the Company has entered into an agreement to purchase 100% interest in West Australian Metal Limited's (ASX: WME) ("WME") Laverton gold tenements. These tenements currently report total resources of over 200,000 ounces in both Inferred and Indicated categories (JORC compliant) and expand A1's BrightStar Gold Project area to over 500 square kilometres.
The majority of tenements being acquired from WME are located immediately north of Laverton within economical trucking distance of BrightStar, with reported resources at Ben Hur, Cork Tree Well, King of Creation and Anchor prospects. Most have higher grade components and are open at depth, indicating potential for extensions.
Achieved through an offer of $100,000 cash and 2.0 million A1 shares to WME, the offer is subject to a 30 day due diligence period by A1, and A1 shareholder approval. WME has agreed to a voluntary six months escrow on the shares and to consult with A1 before a substantial disposal of shares after that date. A1's shareholder meeting is anticipated before the end of January 2006.
A1's new JORC compliant resource at BrightStar Beta was compiled by Mr Tony Ryall, independent geological consultant to A1 (Table 1). The current pre-feasibility study is being extended to incorporate the new resources. Further drilling is planned through to the first quarter 2006, as part of pre-feasibility requirements and to further extend resources.
Resource Location Measured IndicatedLower Cut-Off Grade Au Resource Resource Tonnes Grade Ounces Tonnes Grade Ounces g/t Au g/t AuTotal Alpha 1 g/t 178,900 3.81 21,910 311,900 2.68 26,840Total Beta 1 g/t 68,900 4.00 8,860 628,900 3.85 77,830Total Alpha/Beta 1 g/t 247,800 3.86 30,770 940,800 3.46 104,670WME (various) 0 0 0 1,298,600 2.0 81,800Total 247,800 3.86 30,770 2,239,400 2.59 186,470Resource Location Inferred TotalLower Cut-Off Grade Au Resource Resource Tonnes Grade Ounces Tonnes Grade Ounces g/t Au g/t AuTotal Alpha 1 g/t 631,400 4.20 85,280 1,122,200 3.72 134,030Total Beta 1 g/t 1,064,900 5.24 179,570 1,762,700 4.52 266,260 Total A+B 1 g/t 1,696,300 4.86 264,850 2,884,900 4.32 400,290WME (various) 1,751,000 2.2 120,000 3,049,600 2.1 201,800Total 3,447,300 3.47 384,850 5,934,500 3.16 602,090
Table 1
About Aumega Metals Ltd
Aumega Metals Ltd (ASX:AAM) is a gold exploration company focused on growing its two properties, Cape Ray Shear Zone and Hermitage.
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