Anglo Australian Resources (ASX:AAR) Quarterly Activities Report for Period Ending 31 March 2010
Perth, May 3, 2010 AEST (ABN Newswire) - Anglo Australian Resources NL (
ASX:AAR) is pleased to announce the results from its latest RC drilling program of 1,369m at the Feysville Project. Drilling targeted bedrock mineralisation beneath the Rogan Josh supergene deposit and possible extensions to the discovery intersection of 6m @ 9.08g/t Au at the new Dalray prospect.
The Feysville Project, which consists of two mining leases located 16km SSE of Kalgoorlie, is situated in a geological/structural corridor, bounded by the Boulder Lefroy Fault, that hosts the world class plus million ounce deposits of Mt Charlotte, Fimiston, New Celebration, Victory-Defiance, Junction, Argo and Revenge/Belleisle of St Ives, as well as other deposits such as the 60,000oz Au Hannans South deposit (located 3km north of the Project).
Rogan Josh Deposit
The Rogan Josh deposit is an attractive target with significant supergene and bedrock gold mineralisation already located. It has strong geological affinities to the Hannans South deposit, which is largely a supergene gold deposit occurring within the Hannans South Shear Zone. Previous drilling by Anglo Australian Resources and Western Mining returned intersections such as 8m @ 3.3g/t Au; 2m @ 8.8g/t Au; 4m @ 5.39g/t Au; 3m @ 3.68g/t Au and 2m @ 14.34g/t Au from a sub-horizontal zone of supergene mineralisation. The zone, as defined by the 1g/t Au limit, is more than 700m long and 2-8m thick. The mineralisation occurs about 10 - 30m below the surface.
The previous drilling programs, although directed primarily at the shallow supergene mineralisation, also discovered bedrock gold mineralisation within carbonate-sericite altered quartz feldspar porphyry with intersections of 4m @ 5.42g/t Au and 6m @ 8.24g/t Au on the three southernmost sections tested.
Ten drill holes in the latest program targeted this bedrock mineralisation. Most intersected wide zones (up to 21m) of low grade (0.2-0.5g/t Au) gold mineralisation in sericitecarbonate altered quartz feldspar porphyry (e.g. 21m @ 0.42g/t Au from FEC771).
Narrower higher grade intersections are present in the bedrock (e.g. 2m @ 3.37g/t Au) within the broader low grade zones of mineralisation.
While these holes were primarily designed to test bedrock targets, they also obtained shallow intersections (including 1m @ 5.13g/t Au, 1m @ 3.93 g/t Au and 4m @ 1.47g/t Au) of supergene mineralisation that enhance the open pit potential of the prospect. The supergene mineralisation was extended southwards by 50m with a shallow intersection of 6m @ 2.34g/t Au obtained on the southernmost section drilled. The supergene mineralisation still remains open to the south.
Rogan Josh appears to be similar to the Hannans South deposit where gold grades are enhanced in the weathering profile as a sub-horizontal blanket overlying broad zones of generally low grade mineralisation in the underlying bedrock shear zone.
The Company will, therefore, now focus on the potential to mine the supergene mineralisation in a shallow open pit.
Dalray Deposit
The Dalray deposit is a zone of bedrock mineralisation that occurs beneath transported cover 1.7km to the south of Rogan Josh. It was discovered by the Company in November 2009 when one hole intersected 6m @ 9.08g/t Au. Re-assay of this same intersection by the more reliable screen fire assay method indicates coarse gold is present, with the intersection upgraded to 6m @ 10.03g/t Au (including 2m @ 25.69g/t Au).
The recent drilling program was designed as a limited initial follow up of the discovery intersection. The orientation of the mineralisation could not be determined from the single discovery intersection and the six drill holes in the latest program were located as bold stepout holes. Five of the six holes, nevertheless returned intersections of interest (including 6m @ 2.03g/t Au and 2m @ 3.53g/t Au), indicating that the Dalray mineralisation potentially has considerable extent. The current drilling has demonstrated the strike extent of the mineralisation to be at least 100m and the mineralisation remains open to both the north and south.
Further drilling following up these promising initial results is planned.
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. Current activity is focused on enhancing the copper potential of the resource and development options to maximise extraction of metal from the deposit.
Anglo Australian Resources NL commences, in late April, an extensive drilling program at Koongie, consisting of approximately 3200m of RC and 1100m of diamond drilling. The first phase of the drilling program consisting of 3200m of RC has commenced. Some of these holes will act as pre-collars for the second phase of diamond drilling which is due to commence in May. It is expected the full program will take at least three months.
This drilling program is designed to enhance and advance the Pre-Feasibility work currently in progress by:
-Targeting shallow high grade supergene copper resource extensions at the Sandiego
-Targeting high grade copper sulphide depth extensions at Sandiego
-Testing potential strike extensions of near surface zinc sulphide mineralisation at Atlantis
-Testing an EM anomaly 200m south of the Onedin deposit.
-Drilling for geotechnical purposes
Targeting Supergene Copper Extensions at the Sandiego Deposit
The Sandiego deposit is a steeply plunging tabular mineralised zone that has been drilled on 40m sections over a strike length of 120m to a depth of 500m and remains open at depth. The deposit consists of distinct and separate zinc and copper rich zones.
Recent re-evaluation indicates there may be a sub horizontal cap of chalcocite rich supergene copper to the Sandiego deposit, extending over 200 metres of strike, situated 80- 100m below surface. This zone interpreted to be approximately 40m wide is confined by footwall shales and hanging wall volcanics. Most of the drill spacing at Sandiego is at 40m x 40m spacing and have not adequately defined the full shape and grade of this zone. Previous intersections into this zone such as 22m @ 9.91% Cu (SRCD03); 25m @ 11.4% Cu (SRCD31); 8.8m @ 9.1% Cu (SRCD30) and 11.7m @ 4.04% Cu (DDH24) highlight the potential for additional high grade copper mineralisation within this zone . Eleven planned RC and Diamond holes are designed to double the transition zone copper resource at Sandiego (see Figure 5 in full report).
Northern Depth Extensions of Sandiego Sulphide Zone - Predominantly Copper
All indications are that high grade Zinc and Copper mineralisation persist on the northern end of the deposit at depth as shown by the most northern deep high grade intersection SRCD053 (27m@ 1,2%Cu 10.0% Zn). This interpretation is supported by a modelled off hole DHEM conductor. Three holes are planned in this area on the margins of the current resource. One hole is already pre-collared. Holes target areas where we expect higher grades of both the zinc and copper mineralisation.
Targeting EM anomaly 200m south of Onedin
An EM anomaly discovered by Lachlan Resources located 200m south of Onedin Exploration hole remains untested. Previous Lachlan drill hole ORCD38, drilled over the anomaly testing prospective host stratigraphy further to the east tested and intersected weak mineralisation. However down hole EM produced a conductor which is interpreted to be located 200m below this hole. The conductor is interpreted to be located either west of the major fault which transects Onedin or associated with that fault. It is conceivable that this conductor could be the fault offset of the Onedin mineralisation or a new zone of mineralisation. One hole is planned in this area.
Exploration drilling at Atlantis
In the Atlantis area previous shallow drilling has intersected a high grade zone of zinc mineralisation (including 6m @ 18.3%Zn, 10m @ 12.2% Zn and 6m @ 14.4% Zn). These intersections are located over a strike length of 40m and dip shallowly to the south.
Extensions of this mineralisation to the south and east appears to be cut of by either faults or intrusives and may limit the potential tonnage to about 100,000t. However an interpretation of a more ENE trending strike, parallel to an EM anomaly as shown in diagram below has not been tested. Two RC holes are proposed. Success of these two holes will see an expansion of the resource potential of this prospect.
Geotechnical drilling
Following up on Coffey Mining's recommendations, a number of geotechnical holes are planned at Sandiego to evaluate any potential geotechnical issues associated with underground mining. Better understanding of the geotechnical parameters will assist in mine planning. This drilling will also test the path of a potential decline.
Development Program
The development program is focussed on mining techniques in order to optimise the amount of ore mined and the processing options available to maximise copper and zinc extraction.
Coffey Mining completed a review on the resource data and found the estimate to be robust enough for preliminary mine planning studies, but found that existing geotechnical information was insufficient for this purpose.
Further geotechnical information will be provided at the conclusion of the diamond drilling campaign which is about to get under way.
The flotation response of the sulphide ores in Sandiego has been tested successfully. As part of the development program, studies have been initiated to consider other processing methods that will add value to the concentrates and also allow oxide ores to be treated. The objective is to optimise the amount of metal to be recovered from both deposits - Sandiego and Onedin.
Bateman Engineering have been commissioned to test the amenability of the concentrates to Galvanox treatment and Core Process Engineering have been asked to prepare a summary of other technologies that may be considered, including the Albion process.
A revised prefeasibility study will commence in the second half of the year once the drilling data is analysed and the results of the process scoping studies have been finalized.
Overview
It is anticipated that the drilling program will result in increased resources at Sandiego (particularly copper), improving the viability and together with the continuing development program will advance the project to feasibility stage.
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 northeasterly 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.
A field visit to the Sanford area, in the southern part of the project has highlighted the potential for a younger shale filled sub-basin adjacent to a major structure and corresponding to the recently recognised gravity low. The geological setting of this basin, covered by Cambrian volcanics overburden, is very similar that encountered in the Macarthur River area. Planning for a follow-up drilling program is in progress.
For the full Quarterly Report, please visit:
http://www.abnnewswire.net/media/en/docs/62778-ASX-AAR-489840.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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