Anglo Australian Resources NL (ASX:AAR) Report On Activities For The Quarter Ended 30 June 2010
Perth, July 30, 2010 AEST (ABN Newswire) - Anglo Australian Resources NL (
ASX:AAR) (PINK:AAURF) is pleased to report on activities for the quarter ended 30 June 2010.
FEYSVILLE PROJECT - WA
Mining Leases 26/290, 26/291
100 % interest
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 hosted within a sequence of volcaniclastic sediments intruded by porphyries. 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 majority of the economic grades occurs as supergene style, about 10 - 30m below the surface, beneath a zone of depletion.
However moderate grade bedrock gold mineralisation within carbonate-sericite altered quartz feldspar porphyry has also been intersected (e.g. 4m @ 5.42g/t Au and 6m @8.24g/t Au on the three southernmost sections tested).
The company commissioned BM Geological Services in conjunction with Minecomp to undertake a scoping study which consisted of preliminary resource estimation and an optimisation study of the Rogan Josh deposit.
BMGS concluded that the deposit contains an unclassified resource of 300,000t @ 2.3g/t Au (25,000oz Au). Whilst there is reasonable confidence in the continuity of the mineralisation, BMGS considered the effective drill spacing of 60 x 20m and up to 80 x 20m was of insufficient density to warrant a JORC code resource classification. Conversion of the resource to JORC Code status will require infill drilling. Recommendations were also made with regard to the collection of additional check assay and specific gravity information.
An open pit optimisation study, based on the BMGS resource estimate, was completed to ensure that any further work completed on the deposit is based on realisable economic parameters. The study concluded that 12,000oz au could be mined profitably at an Australian gold price of A$1200 and a striping ratio of 15:1. Lower up front capital costs could also be achieved by commencing mining at the southern end where the overburden is shallowest.
These results confirm the company's confidence in the deposit. Further drilling is planned for 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 In July Anglo Australian Resources NL completed an extensive drilling program, consisting of 3109m of RC and 1403.8m of diamond drilling, at the Company's Koongie copper zinc project located 25km south-west of Halls Creek in the Kimberley region of Western Australia.
The program was designed to enhance the potential for economic development of the Koongie Project and to advance the pre-feasibility work currently in progress by:
- Targeting relatively shallow high grade supergene copper resource extensions at the Sandiego Deposit
- Targeting high grade copper sulphide depth extensions at Sandiego - - Testing potential strike extensions of near surface zinc sulphide mineralisation at the Atlantis Prospect
- Drilling for geotechnical purposes
Results for the RC component of the drilling program, targeting shallow high grade supergene copper mineralisation at Sandiego, have now been received, compiled and are discussed in this report. The diamond drilling component of the program for deeper diamond drilling was completed mid July. Diamond holes have now been geologically logged and most mineralised intervals have been cut and submitted to the Genalysis Laboratory in Perth for analysis. Assays from the diamond drilling are expected towards the end of August.
Figure 3 shows the location of holes completed and Table 1 lists a summary of RC holelocations and mineralised intersections and Table 2 lists a summary of the diamond drilling. (see link at the bottom)
Supergene Copper Extensions at the Sandiego Deposit
As previously reported in May and June 2010 the Company has confirmed a sub- horizontal zone of chalcocite-rich supergene copper capping the Sandiego Deposit, extending over 200 metres of strike, situated 80-100m below surface. This zone, which is interpreted to be approximately 30 - 40m wide, is confined by footwall shales and hanging wall volcanics.
Previous drilling of this zone has returned higher grade intersections 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).
The potential for a significant increase to the copper resource, close to surface, is further enhanced with new high grade intersections such as:
- 73m @ 4.8% Cu, 2.1% Pb, 7.3% Zn, 70g/t Ag, 0.42g/t Au (SRC061)
- 33m @ 3.7% Cu, 128g/t Ag, 2.02g/t Au and 13m @ 1.73% Cu (SRC076)
- 9m @ 2.1 % Cu, 3.3% Zn, 135g/t Ag, 0.18g/t Au, 0.21% Co (SRC060)
- 25m of supergene sulphides (chalcocite and pyrite) in diamond hole SRCD059 (still to be assayed).
The intersection within SRC061 includes a supergene intersection of 17m @ 8.8% Cu, 4.1% Pb, 1.7% Zn, 198g/t Ag, 0.18g/t Au, 0.21% Co. The intersection within SRC076 includes a supergene intersection of 19m @ 5.9% Cu, 1.1% Pb, 219g/t Ag, 1.79g/t Au.
Gold and silver values appear to be enhanced in this part of the deposit. True width of supergene intersections is approximately 80% of actual down hole width.
ANGLO AUSTRALIAN
Strike extensions of the supergene copper mineralisation, to the north, have been confirmed with new intersections albeit at less spectacular grades:
- 14m @ 1.2% Cu (SRC065)
- 10m @ 1.2% Cu, 13g/tAg (SRC066)
- 13m @ 1.1% Cu, 30g/t Ag, 0.17g/t Ag (SRC077)
These and some of the other intersections are outside the current resource envelope.
The discovery of the zone of supergene copper enrichment has led to the reassessment of previous drilling within this zone. Examination of this core by a hand held XRF suggests that at least two historical cored holes, stored at our Halls Creek facility, have not been assayed over the full zone of mineralisation. These holes have now been cut and samples submitted for assay.
Zinc Lode Extensions at the Sandiego Deposit
In addition to the copper intersections a number of zinc and lead lodes were intersected within the transition (or partially weathered) zone at higher levels than previous drilling.
These include:
- 19m @ 5.5% Zn 40g/t Ag (SRC060)
- 13m @ 2.2%Pb, 6.6% Zn, 59g/t Ag, 0.26g/t Au (SRC060)
- 38m @ 4.4% Cu, 3.4% Pb, 13.1% Zn, 80g/t Ag, 0.64g/t Au (SRC061)
- 19m @ 0.7% Cu, 5.6% Zn, 62g/t Ag, 0.11% Co (SRC062)
- 6m @ 0.2%Cu, 8.9% Zn, 29g/t Ag (SRC062)
- 7m @ 0.5% Cu, 13.0% Pb, 21g/t Ag, 0.17g/t Au (SRC066)
- 14m of semi-massive sphalerite in diamond hole SRCD059 (still to be assayed).
True intersection widths for the zinc lode intersections are 40-50% of down hole widths.
Sulphide Copper Extensions at the Sandiego Deposit
Sulphide copper mineralisation intensity and copper grades appears to be higher on the northern end of the Sandiego deposit (1120N) as indicated by previous intersections such as 24m @ 7.96% Cu in SRCD04. As deeper drilling in this part of the deposit was sparse four additional diamond holes were drilled in this area. Geological logging and visual estimation of grades has provided encouragement for additional copper resources.
SRCD063 (section 1120N) intersected mineralisation earlier than expected in the precollar.
This mineralisation which assayed 2.7m @ 2.7% Cu, 6g/t Ag, 0.23g/t Au (from 291m) was followed by 10.1m of massive sphalerite and chalcopyrite. Two additional mineralised zones were intersected including 17.2m of disseminated and semi-massive sphalerite and chalcopyrite (from 303.6m) and 5.5m of semi massive sphalerite.
SRCD064 (section 1120N) drilled on the same section and 100m below SRCD063, intersected 34m of massive chalcopyrite, sphalerite and pyrite from 393.6m.
Visual examination of the core suggests moderate to high grade copper mineralisation.
SRCD078 (section 1120N) intersected 9.4m of massive chalcopyrite and minor sphalerite from 539m and 16m of disseminated chalcopyrite and sphalerite. This intersection is located 150m below SRCD064 and 450m below surface.
SRCD032 (section 1160N) intersected 41m of disseminated sphalerite, pyrite and chalcopyrite from 245m down hole.
On completion of geological modeling and receipt and compilation of all assay data the resource will be re-estimated with an expectation of increased total copper content.
Other Drilling
Seven diamond holes were drilled along the path of the proposed decline. These and other holes will be assessed for geotechnical purposes by specialist geotechnical contractor Dempers and Seymour.
Two RC holes testing an EM conductor at Atlantis intersected no significant mineralisation.
Development Program
Studies into infrastructure requirements and processing options continue and metallurgical investigations in particular, continue to support a subsequent and revised Pre-Feasibility Study (PFS) to determine the commercial viability of the project.
A final report on the results of testwork on the Galvanox process, completed by the University of British Columbia, has been received and the findings indicate that bulk concentrate produced from the Sandiego sulphide ore is amenable to treatment using this process.
Bateman Engineering have been commissioned to complete a study on the costs of selected process options and this will be combined with mining costs determined by Coffey to rank viable options for final analysis in the PFS. The completion of the options analysis will coincide with a revision of the resource statement.
VICTORIA RIVER DOWNS PROJECT - NT
Exploration Licences, 25422-3, 25728 Exploration Licence Applications 25420, 25424, 25540, 25729, 25730 100% interestThe 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.
No work was completed on the project this quarter.
For the complete Anglo Australian Resources quarterly report including figures and tables, please view the following link:
http://www.abnnewswire.net/media/en/docs/63433-ASX-AAR-499481.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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