Brisbane, Sep 2, 2008 AEST (ABN Newswire) - Zamia Gold Mines Limited's (ASX:ZGM) diamond drill program at its Anthony Molybdenum Project, north of Clermont, Queensland, has expanded the mineralisation and increased the project's potential.
Highlights:
- Five of seven diamond holes are complete; the sixth hole (A018) is almost complete.
- Hole A016 averaged 428 parts per million (ppm) molybdenum (Mo) from 0 to 300m (end of hole) and included 5 intersections exceeding 600ppm Mo (see table 1)
- Hole A018, an extension to the shallow 1994 CRA hole DBT22, (which included 3 metres assayed at 890ppm Mo) is in progress at about 300m and contains intense veining with visible molybdenum mineralisation throughout (see photos) - assays pending.
- Hole A018 extends the high grade western zone by more than 100m to the west of Hole A012 and remains open to the west.
- Detailed geological logging of diamond holes A014 to A017 by consultant Dr Greg Corbett indicates multiple mineralisation events - upgrading the potential for additional discoveries.
- The diamond drilling program has enhanced the potential for the project to reach the conceptual target of 100 million tonnes.
Diamond Drilling Program update
ZGM's diamond drilling program has included four new holes to at least 300m (vertical depth 260m), a 93m diamond extension to reverse circulation (RC) percussion hole A009 and an extension to 1994 CRA RC percussion hole DBT22 (now hole A018) currently at approximately 300m with a target depth of 350m. The final hole will be an extension to high grade vertical RC percussion hole A012 and is expected to be completed in the next two weeks. (Drill hole locations of the holes are shown on Figure1 and collar co-ordinates are listed in Table 2)
Analytical results of the first two holes (A014 and A015) and partial results of the third hole (A016) to 210m were released to the ASX on 28 July 2008. The remaining results from hole A016 have been received together with partial results for hole A017 (the first 230m of 369m). Significant results are detailed in Table 1.
Hole A018 (a diamond drill extension of CRA hole DBT 22), located 150m west of high grade hole A012 (75m at 1103ppm Mo) is currently being drilled and is intensely mineralised throughout with molybdenum rich veins. Results from A018 are eagerly awaited and are expected to expand the high grade zone found in holes A008, A011, A012 and A013.
The mineralisation observed in hole A018 is significant as CRA reported 63m at 219ppm Mo from 66m to 129m (the end of hole DBT22) and the observed mineralisation tends to confirm ZGM's belief that the analytical technique used by CRA may have understated the molybdenum grade. The CRA hole included a reported assay of 890ppm Mo from 108 - 111m.
In addition to expanding the zone of known mineralisation, the diamond drill program has improved the geological understanding of the Anthony deposit and its geological setting. Logging of the drill core from holes (A014 to A017) by ZGM geologists and renowned consultant Dr Greg Corbett has recognised several generations and styles of porphyry molybdenum mineralisation that may be associated with multiple porphyry intrusions.
These observations are significant as they indicate that the Anthony area may contain mineralised bodies not yet encountered in the current drill program. Such bodies may be molybdenum porphyries and/or copper-molybdenum-gold porphyries. The future program will include both the planned systematic RC percussion drill out of the Anthony deposit and geophysical surveys to identify additional targets surrounding Anthony. The molybdenum price is currently around US$33/lb ($A70,000/tonne) and average grades of new molybdenum mines are around 600 - 700ppm with cut-off grades from 200 - 300ppm Mo. On this basis Anthony has the potential to be a major project and the next round of drilling will aim to identify an inferred resource approximating to the conceptual target of 100m tonnes.
-------------------------------------------------Hole No. Depth From To Width Mo Comment (m) (m) (m) (m) (ppm)-------------------------------------------------DD08A016 300 0 300 300 428 Complete hole 0 100 100 429 Oxide* 100 300 200 428 Sulphide including 120 128 8 657* including 150 164 14 625* including 176 184 8 673* including 234 248 14 681 including 296 300 4 601-------------------------------------------------DD08A017 369.4 0 84 84 348 Oxide 146 170 24 463 Sulphide including 160 170 10 599 230 369.4 Awaiting results-------------------------------------------------Table 1 Significant Molybdenum Results * released previously-------------------------------------------------Hole No MGA East MGA North Azimuth Dip Depth-------------------------------------------------DD08A009 528700 7532252 355 -60 264DD08A012 528820 7532800 -90 pendingDD08A014 529225 7532880 104 -59 303.6DD08A015 529338 7532707 351 -61 300DD08A016 528920 7532802 358 -60 300DD08A017 528820 7532900 356 -60 369.4DD08A018 528653 7532808 052 -60 In progress-------------------------------------------------Table 2 Diamond drill holes - location, direction and depth
Competent Person:
Mr R N (Sam) Lees (FAIG, FAusIMM), compiled the technical aspects of this report. Mr Lees is Executive Director - Technical, Zamia Gold Mines Limited. Mr Lees is a Fellow of the Australian Institute of Geoscientists and has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the September 2004 edition of the "Australasian Code of Reporting of Mineral Resources and Ore Reserves". Mr Lees consents to the inclusion of the matters in the form and context in which it appears.
About Zamia Metals Limited
Zamia Metals Limited (ASX:ZGM) is an Australian mineral exploration company, targeting the Clermont district of central Queensland, a known gold and emerging porphyry mineral province. Numerous targets for gold, copper and molybdenum have been identified by geochemical and geophysical surveys. The Clermont district is highly prospective for gold, copper and other metals including molybdenum. The Belyando Gold Project is Zamia's flagship project – potentially a porphyry-style gold deposit including historic Belyando Gold Mine
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