Anglo Australian Resources NL (ASX:AAR) Quarterly Report For The Period Ended 31 December 2009
Perth, Jan 29, 2010 AEST (ABN Newswire) - Anglo Australian Resources NL (
ASX:AAR) (PINK:AAURF) is pleased to provide a Quarterly Activities Report for the period ended 31 December 2009.
FEYSVILLE PROJECT -WA
Mining Leases 26/290, 26/291
100 % interest
The Feysville Project consists of all mineral rights attached to two mining leases located 16km SSE of Kalgoorlie. The project is situated in a geological/structural corridor, bounded by the Boulder Lefroy Fault that hosts the world class deposits of Kalgoorlie and St Ives as well as other substantial deposits in the New Celebration, Kambalda and Hannans South areas. It has been subjected to exploration for gold and nickel by the company since 2003.
The Rogan Josh prospect is an advanced target with significant supergene and bedrock gold mineralisation already located. Previous drilling by the company and Western Mining had defined a sub-horizontal zone of supergene mineralisation (defined by 1g/t Au limit) over a strike length of over 700m and width of 80-90m. The mineralisation as represented by intersections such as 8m @ 3.3g/t Au and 2m @ 8.8g/t Au is 2-8m in width and sits 10-40m below surface. The combination of gold mineralisation, associated hydrothermal alteration, porphyry intrusives and shearing represented a compelling target for further testing.
Recent drilling by the company discovered high-grade bedrock gold mineralisation e.g. 4m @ 5.42g/t Au and 6m @ 8.24g/t Au within carbonate-sericite altered quartz feldspar porphyry on the three southernmost sections tested by RC drilling.
In December 2009, an RC drilling program at Rogan Josh, consisting of 8 angled holes totalling 925m, was completed. The drilling tested the southern strike extensions, poorly drilled sections and an aircore gold anomaly 1.7km south of Rogan Josh at the Dalray prospect.
Exploration testing of the southern extensions of Rogan Josh in September 2009, with air core drilling, had located a 900m zone of supergene gold anomalism (Dalray) in the south east corner of the project, corresponding to projected strike extensions of the Hannans Shear. One RC hole from the current program targeted a bottom of hole anomaly of 1m @1g/t Au associated with vein quartz within the centre of the Dalray anomaly. This hole intersected high grade gold mineralisation 6m @ 9.08g/t Au and 3m @ 3.38g/t Au. The intersections, located 50m below surface, corresponds to sheared and altered quartz feldspar porphyry containing abundant vein quartz. The attitude and orientation of the mineralisation is unknown as this is the first deep hole into the prospect. Follow up drilling is planned for this area.
The recent drilling also intersected 4m @ 5.39g/t Au and 3m @ 3.68g/t Au at shallow depths on the eastern edge of the Rogan Josh supergene anomaly, extending the known supergene anomalism to the east as well as providing better continuity of mineralisation between drill sections. This anomaly remains open to the east. The source of the supergene anomaly in the bedrock still remains poorly defined and this represents a significant target for further drilling.
The intersections encountered in the latest drilling are extremely encouraging and the next RC drilling programme in February will target supergene and bedrock mineralisation of both the Dalray and Rogan Josh prospects.
KOONGIE COPPER - ZINC PROJECT - WA
Mining Leases 80/276, 80/277, Prospecting Licenses 80/1597 - 1611, Exploration Licences 80/3494, 80/3495, Exploration Licence Application 80/4257
100% interest
The Koongie Project is an advanced copper zinc prospect, containing two deposits with indicated resources at Sandiego and Onedin. The company completed a preliminary feasibility study into the project in October 2008. This study assumed a preliminary stope model as the basis of a mine plan and focussed on conventional flotation technology to produce saleable copper and zinc concentrates. Subsequently the company completed almost 10,000m of RC and diamond drilling, the majority of which was done at Sandiego.
A new resource model was calculated by CSA Australia which confirmed a substantial increase in the copper content of the Sandiego Deposit and these results were published in September 2009.
The ongoing study has necessarily shifted direction to reflect current and expected market conditions:
- The resource revision has improved the copper resource.
- Mining studies currently show a better return for copper ores than zinc ores.
- Copper prices have remained strong whereas the predictions for zinc prices have eased.
- The study indicated that further project development should initially focus on the copper sulphide ores of the Sandiego deposit.
- It is expected that the capital cost of the plant will decrease by redesigning it to focus on copper and high grade zinc treatment.
The current programme is aimed at progressing the project on two fronts by improving the resource tonnage and refining the project economics:
1. A further drilling programme is planned for Q2 2010 to test extensions of the copper sulphide ore body and also the transition (or partly weathered sulphide) copper ore body. Metallurgical tests have been done on transition copper material with good results (26.1% copper in concentrates at 92.5% recovery from a head grade of 5.27% Cu) and it is expected that a significant copper resource will be delineated in this zone.
2. It is planned to refine and upgrade the preliminary feasibility study to feasibility status by Q4 2010.
The company has retained experienced metallurgist and project management executive, Noel O'Brien, to manage the study. Noel has significant experience in the management of feasibility studies covering a range of commodities, the infrastructure requirements for mining projects in remote locations and project execution and delivery. Specifically he has been involved in copper and zinc projects in Africa and South America.
Coffey Mining has been appointed to conduct a comprehensive review of the resource model, an examination of the conversion of resource to reserve parameters and to propose a mine plan from which plant and infrastructure requirements can be developed.
An Expression of Interest has been sent to selected engineering companies to prequalify for the feasibility study which will follow the Coffey review. The feasibility study is expected to be awarded in April 2010.
The company continues to evaluate opportunities in the vicinity of the project. An exploration licence application covering southern extensions of the Koongie Park Formation (which hosts all the significant base metal prospects and deposits in the area) was submitted. The company now holds 47 strike kilometres of the prospective unit.
Exploration work will commence on regional tenements on tenement grant.
VICTORIA RIVER DOWNS PROJECT - NT
Exploration Licences, 25422-3, 25728 Exploration Licence Applications 25420, 25424, 25540, 25729, 25730
100% interest
The Company is targeting sedex-style zinc-lead deposits in the Victoria River Basin. The Basin has strong similarities to the Macarthur and Nicholson Basins which host the giant Macarthur River and Century sedex-style zinc deposits. The project, located 200 km east of Kununurra (WA) and 250 km southwest of Katherine (NT), covers a sequence of Proterozoic sediments dominated by dolomitic carbonates and other fine-grained sediments. The sediments are generally flat lying with an overall very shallow north-easterly dip. Several stratigraphic horizons have been identified as having potential to host sedex-style deposits. The project area also contains several galena (lead sulphide) occurrences. Lead isotope dating of the galena indicates the Basin rocks are the same age as all the Proterozoic basins elsewhere which host some of Australia's largest zinc-lead resources.
The Company recognizes major regional structures transecting the Basin and interprets these as possible growth structures that could potentially be feeder structures which may have focused the flow of base metal rich fluids.
A helicopter-supported gravity survey, consisting of 1,589 gravity readings, has been completed in two areas on granted Victoria River Downs tenure.
nitial modelling and interpretation of the data, has been completed by Southern Geoscience. In the southern survey area, at Mt Sanford, a prominent north - northwesterly low density corridor flanked by zones of moderate to high Bouger gravity has been interpreted as a graben filled with younger low density sediments.
This interpreted graben falls along a major, north - northwesterly trending fault evident in surface mapping. Conceptually the interpreted graben has potential to host a significant HYC (Macarthur River) sized stratiform sulphide concentration in local fault bounded sub basins within the graben. On the western flank of the graben several relatively small, fault bounded gravity highs represent possible targets. These gravity highs could possibly indicate significant local sulphide concentrations. Both areas will require follow up geophysics to better define drill targets.
In the Northern surveyed area, near Victoria River Downs, the gravity data is quite different with lower gravity contrasts. The dominant feature evident in the northern block gravity is a large, partially defined, east-west trending gravity high crossing the southern part of the area. This feature is clearly evident in the Geoscience Australia regional gravity data. The published mapping does not reveal an obvious geological source for this large, long wavelength response in the published mapping. The remainder of the relatively subdued gravity variations in the data are interpreted as mapping a combination of lithological variations within the reasonably well exposed, generally shallow dipping Mesoproterozoic sequence (mostly Bullita Group) and superimposed regolith patterns. For the interpreted lithological variations, zones of elevated gravity have been interpreted as denser, carbonate rich units, with the lower response area indicating pelitic or psammitic units or areas of deeper oxidation or younger cover.
NEW GOLD PROJECTS - WA
Two new projects in the Laverton and Leonora areas were acquired this period through tenement application. The prospectivity of these two areas was highlighted by a recently completed Geoscience Australia mineral systems study of the Eastern Goldfields.
The Laverton tenement is located 4km north and on strike of the million ounce Lancefield deposit. The Leonora tenement application is completely covered by alluvium but is interpreted to be underlain by a number of major crustal structures. The project also contains 5 strike kilometres of the volcano-sedimentary basin which hosts the Jaguar base metal deposit, 38 km to the north.
For the complete Anglo Australian Resources Quarterly Report for the period ended 31 December 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/62171-ASX-AAR-478199.pdf
About Astral Resources NL
Astral Resources NL (ASX:AAR) is a Perth based gold exploration & base metals company listed on the Australian Securities Exchange.
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