Aragon Resources Limited (ASX:AAG) Exploration Update At Cuddingwarra Gold Project And Lefroy Nickel Project
Perth, Feb 3, 2011 AEST (ABN Newswire) - Aragon Resources Limited (
ASX:AAG) ("Aragon") is pleased to provide an update to the ongoing exploration for new open pittable gold discoveries at the Cuddingwarra Goldfield of Central Murchison Gold Project ("CMGP") and advise that diamond drilling at the Lefroy Nickel Prospect, east of Kambalda is due to commence on the 5th on February 2011.
Recent aircore drilling at the City of Chester East Prospect completed by Aragon has returned initial highlight down-hole results of:
- CDAC1577: 16 metres @ 2.41g/t Au from 4 metres
- CDAC1576: 18 metres @ 1.35g/t Au from 24 metres
- CDAC1564: 4 metres @1.15g/t Au from 16 metres
- CDAC1567: 18 metres @0.88g/t Au from 8 metres
Aragon's strategy is to recommence gold operations across the CMGP by sourcing gold production from multiple underground and open pit sources. Since acquiring the Project in January 2010 Aragon has increased the resource based from 1.5 million ounces to 2.0 million ounces and has established an initial Mining Reserve Estimate of 614,000 ounces for the first phase of its planned underground mining developments at Big Bell and Day Dawn. As part of the development strategy Aragon maintains a focus on exploring for new open pittable gold discoveries across each of the three parallel historic goldfields that make up the CMGP.
Recent drilling has focussed on two target areas at East of the City of Chester mine where previous wide spaced drilling had confirmed anomalous gold mineralisation coincident with structural dislocations evident in magnetic intensity surveys. Highly encouraging results suggesting potential for virgin open pittable resources have been made as follows:
Cuddingwarra Exploration - City Of Chester East Prospect
The northern drill line, shown in the cross section below has transected the main Cuddingwarra shear zone which is the primary host to mineralisation in the region. The holes defined a sequence of mineralised and sheared mafics and ultramafic rock units typical of the Cuddingwarra deposits. It is considered that significant along-strike and depth potential exists as results are still within the totally oxidised profile and the area is sparsely tested.
The southern drill line, shown above has intersected a similar parallel structure of sheared mafics and ultramafics with significant gold mineralisation at shallow depths. Drilling to date suggest that the mineralised structures at both locations have the potential to extend well beyond a 500 metre strike length at depths amenable to open pit mining. These initial results will form the basis of a follow-up reverse circulation drill program to further define these structures and are due to commence in the coming weeks.
The prospect is located within a sequence of northerly striking, steeply east dipping mafic lithologies, intruded by a quartz-porphyry. Generally the prospect has been previously interpreted as an en echelon shear system striking northwest and dipping 65 degrees to the south-west. These shears form part of the main Cuddingwarra shear zone which hosts many other prospects such as Golden Gate and Black Swan South. The Black Swan South open pit has a reported past production of 443,000 ounces at an average grade of 1.7g/t Au. The Cuddingwarra Goldfield is also host to numerous open pit deposits and has a total combined historic production of approximately 800,000 ounces of gold.
Lefroy Nickel Prospect (100%)
The Lefroy Nickel Prospect is located at Lake Lefroy within the Aztec Dome some 15km east of the Kambalda Dome in Western Australia. The Aztec Dome has a very similar regional magnetic signature to that seen at the Kambalda Dom where significant komatiite hosted nickel deposits have been discovered and mined over many years.
In recent years, the Aztec Dome has attracted the attention of nickel explorers since the advancement of geophysical techniques that allow for more effective exploration beneath the lake surface and lake sediments. The SQUID class of TEM sensor, capable of such exploration has been responsible for a number of major new nickelsulphide discoveries in recent times.
Aragon has previously completed A SQUID MLTEM ground geophysical survey over its tenure on Lake Lefroy. Data processing by expert consultants Southern Geoscience has defined of a number of conductive anomalies which are coincident with highly magnetic komatiite flows similar to targets typically associated with nickel sulphides in Kambalda. A specialist drill rig capable of drilling through and accessing the lake sediments has been mobilized and will commence drilling these compelling targets in the next few days.
Aragon has been awarded co funding from the EIS Co-funded Drilling project for 2010/11 to complete the drilling of this significant target.
For the complete Aragon Resources Limited announcement including maps and appendix, please view the following link:
http://www.abnnewswire.net/media/en/docs/65144-ASX-AAG-527594.pdf
About Aragon Resources Limited
Aragon Resources Limited (ASX:AAG) is an Australia-based gold, nickel and phosphate exploration company. The principal activity of the Company is the exploration of minerals. Aragon has exploration tenements in Western Australia and the Northern Territory.
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