Clancy Exploration Limited (ASX:CLY) Detects Several Significant Induced Polarisation (IP) Anomalies At Orange East Project, NSW

Perth, May 24, 2010 AEST (ABN Newswire) - Clancy Exploration Limited (ASX:CLY) is pleased to report that several significant induced polarisation (IP) chargeability anomalies have been identified at its Orange East project (EL6181) in New South Wales. Diamond drilling to test these anomalies is planned to commence in mid-June.

Clancy recently completed an offset pole-dipole 3D IP survey using 50m dipoles over the Carangera South, Carangera and Pendarves anomalies adjacent to the Godolphin Fault.

The survey covered an area of 2.6 km by 800m and was conducted in order to detect electrically chargeable bodies that may represent unexposed mineralisation. Several significant chargeable bodies were defined at all three prospects.

Drilling by Clancy in late 2009 was targeted into the exposed potassic alteration zones encompassing the old copper workings at Carangera. The drilling intersected copper-gold mineralisation, but ground conditions and old mining voids made it difficult to drill the area where high-grade mineralisation was mined in the late 1800's. The chargeable anomalies lie near the old workings and potentially represent large mineralised bodies that are not exposed at surface and were therefore essentially invisible to historic miners.

Five diamond drill holes totalling approximately 1000m of drilling are planned to test the IP anomalies. One hole, with a planned depth of 300m, is targeted to intersect a 330m long by 150 m wide >23mV/V chargeable anomaly at Carangera South. Figures 2 and 3 show the planned drill hole trace through this target (refer to link at bottom of release for images). The other four holes will test IP anomalies at Carangera and Pendarves and also attempt to intersect the historic high-grade copper zone not intersected in the 2009 drilling program.

Clancy's Managing Director Mark Stewart said that the definition of the chargeability anomalies at Orange East was a significant advance for the project.

"Rock and soil anomalism, widespread alteration and the structural setting all suggest the presence of a significant fertile copper-gold system at Orange East. The IP chargeability anomalies provide us with another key piece of evidence and significant drill targets for immediate follow-up. Drilling is planned to begin mid next month," said Mr Stewart.

About Orange East

Located northeast of the township of Orange, NSW, EL 6181 spans several target styles including Ordovician porphyry and Silurian copper-gold targets. Numerous old workings cross the area and many are focused along regional-scale structures, such as the Lucknow and Godolphin faults, part of the Mullions Range Imbricate Zone. The area has been mined since the early 1850's, first producing copper, then gold and silver.

The lease area lies 8 km south of the Lewis Ponds Project with an indicated and inferred resource of 6.6 million tonnes at 1.5 g/t Au, 69 g/t Ag, 2.4% Zn, 0.2% Cu and 1.4% Pb at >3.0% ZnEq. This resource consists of two mineralised bodies, the Main Zone and Tom's Zone in Silurian volcaniclastic rocks of the Anson Formation. The McPhillamys Project lies 18 km south southeast of the lease on the Godolphin Fault and has intersections such as 123 metres grading 1.96g/t gold from the surface and was identified by >100ppb gold in soil anomalism along with other coincident trace elements.

For the complete Clancy Exploration announcement including Figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/62934-ASX-CLY-492073.pdf

Contact

Mark Stewart Managing Director Clancy Exploration Limited Tel: +61-8-9481-8241 Fax: +61-8-9321-0320 Email: info@clancyexploration.com www.clancyexploration.com