Adelaide, June 30, 2006 AEST (ABN Newswire) - FerrAus Limited (ASX: FRS) is pleased to advise of further developments on its 100% owned Silver Swan North nickel tenements in Western Australia as advised by Mithril Resources Limited (ASX: MTH) ("Mithril") as farminee to FerrAus over that project.
FerrAus continues to view the Silver Swan North nickel tenements as highly prospective for Nickel sulphides. The Joint Venture with Mithril, and their alliance partner BHP Billiton, provides for systematic exploration of the tenements by a focused nickel explorer. FerrAus shareholders thus retain a significant exposure to success without the obligation to fund the current exploration.
FerrAus' main focus remains on the evaluation and potential development, in the second half of 2007, of its flagship Robertson Range iron ore project in the East Pilbara region of Western Australia.
FURTHER WORK PLANNED AT SILVER SWAN NORTH JOINT VENTURE
The Silver Swan North Joint Venture is situated approximately 45 kilometres northnortheast of Kalgoorlie Western Australia and immediately adjacent to the Silver Swan nickel mine operated by LionOre Mining.
The Joint Venture between Mithril Resources, BHP Billiton and FerrAus consists of one Exploration Licence E27/209 and four Mining Leases M27/262-265 which form a contiguous group covering an area of approximately 39 square kilometres. The tenements cover a succession of Archaean felsic, mafic and ultramafic rocks. The ultramafic rocks are the host sequence for the Silver Swan and Black Swan nickel deposits.
In May this year five angled RC Percussion drillholes for 1293m were completed over the project area. Two of these holes (SNRC-001, 008) targeted east dipping conductive bodies identified from the recently completed ground electromagnetic (EM) surveys on ultramafic contacts and hole SNRC-003 targeted a conductive body internal to the ultramafic pile. Two drill holes (SNRC-004, 006) targeted contacts to the ultramafic sequence.
Drill hole SNRC-001 intersected 24m of semi-massive and massive sulphides from 252m at the bottom of the hole near the mafic / ultramafic contact. Due to the drill rig capability this hole stopped in these sulphides and the ultramafic contact was not intersected. Analytical results indicate these sulphides are sedimentary in origin with no Ni values greater than 100 parts per million (ppm). Drill hole SNRC-003 intersected a pyritic shale internal to the ultramafic pile and drill hole SNRC-008 intersected a five metre thick zone from 255m of 10-40% sulphides adjacent to the eastern ultramafic contact. Nickel values are elevated in this interval (up to 1000ppm).
As part of the Joint Venture, BHP Billiton has agreed to fund further EM surveys in the project area. This includes downhole EM on SNRC-001, 004, 006 and 008 as well as fixed loop EM over moving loop EM anomalies detected and not drill tested in the last drilling campaign. In addition BHP Billiton will fund approximately 10 line km of moving loop EM over a magnetic anomaly directly north of the Silver Swan Deposit.
Mithril and BHP Billiton continue to view the area as highly prospective for nickel sulphides.
About Mithril Silver and Gold Limited
Mithril Resources Limited (ASX:MTH) (CVE:MSG) is an Australian resources company whose objective is the creation of shareholder wealth through the discovery of mineral deposits.
The Company and its exploration partners are actively exploring throughout the Kalgoorlie, West Kimberley and Murchison Districts of Western Australia for economic nickel, copper, zinc, and vanadium deposits.
In the Kalgoorlie District, Mithril is exploring for nickel on the Kurnalpi, Lignum Dam and North Scotia Projects which lie along strike from, or adjacent to previously mined high-grade nickel at the Silver Swan and Scotia Nickel Deposits.
In the West Kimberley, Mithril is exploring for zinc on the Billy Hills Project which lies adjacent to the previously mined Pillara Zinc Deposit.
In the Murchison, Mithril is exploring for copper, nickel and zinc mineralisation on the Nanadie Well Project and for copper, silver, zinc and lead on the Bangemall Base Metal Project. Mithril's exploration partner – Monax Mining Ltd is also exploring for vanadium on the Limestone Well tenements.
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