First Assays from Diamond Drilling Program at Dania Identify Near Surface Copper Oxide to Compliment Colupo
Sydney, April 8, 2014 AEST (ABN Newswire) - Estrella Resources Limited (
ASX:ESR) (Estrella or Company) is pleased to report the assay results from its first diamond drill hole DHD-01 at Dania (see location map Figure 1 in link below).
Assay results are still pending for the second diamond drill hole DHD-02 at Dania which are due mid April 2014.
2. Assay results and significance
Hole DHD-01 was first drilled to 316.2 metres at an azimuth of 055o at an inclination of -75o.
Copper oxide (CuOx) mineralisation commenced from surface with a long interval of 54 metres that averaged 0.3% Cu including a 17 metre interval of 0.4% Cu from 10 to 27 metres. (refer Table 1 in link below). In total, the hole was mineralised for 271 m at an average grade of 0.14% Cu.
The near surface CuOx mineralisation is strong throughout the upper realms of the rhyolite dome unit. The assay results from DHD-01 are consistent with Estrella's review of historical drilling of 19 RC holes by SQM.
(Refer to ASX announcement 20 March 2014, which displayed CuOx mineralisation throughout the first 100 m from surface at Dania. References are made in this announcement to historical drilling results by SQM at Dania as previously announced to the ASX by Estrella on 18 March 2013 and 20 March 2014. The Company is not aware of any new information or data that materially affects these drilling results.)
It is expected that the higher grade hypogene zone lies beneath the upper layer of the CuOx and is yet to be penetrated.
The combination of Estrella's current drilling and historical RC drilling by SQM at Dania (see Figure 2 and Figure 3) has identified near surface oxide copper over a northwest trend covering 430 m with a width of 400 m and to depths varying between 50 m and 100 m. The system remains open in all directions except to the east where the contact with the unmineralised andesite unit has been established at surface and 298.4 m downhole in DHD-01.
The assay results at depth (Figure 4 and Table 1 in link below) in DHD-01 show several long intercepts grading 0.2% to 0.3% Cu. Geological observations confirm mineralisation has porphyry emplacement, structural controls and secondary enrichment.
As only two long diamond drill holes have been drilled at Dania, Estrella's exploration team has not yet determined a definitive mineralisation model for Dania, however recognition of the interplay of three emplacement factors should facilitate further exploration success:
i. The drill hole has intersected the outer pyrite shell and has characteristics comparable with the classic porphyry copper mineralisation model and appears to end above the mineralisation zone in the vertical plane;
ii. Highest copper mineralisation zones relate to the structural controls from the sub-vertical faults of the Buey Muerto Fault zone;
iii. Multiple mineralised porphyry intrusions have taken place along the BMZ and the potential exists to find many oxide and hypogene zones along the fault zone; and
iv. Oxidation, leaching, remobilisation of copper and secondary enrichment.
3. Dania Location
Estrella's Dania Prospect lies approximately 8 km south of Estrella's Colupo Prospect and is only 9 km north-northwest from the Antucoya Porphyry Deposit (owned by Antofagasta Minerals PLC). Antucoya (Seen in Figure 1 and Figure 5) is currently under development (USD1.9B) and due to produce its first copper cathode in April 2015 (source: Antofagasta Minerals PLC Investor Presentation 2013 titled "Antucoya Site Visit").
All prospects and projects are linked via road access.
Estrella considers the Antucoya Deposit relevant to its own exploration activities in this region, in particular at Colupo, Dania and Antucoya West, as it demonstrates the potential for economic extraction of copper resulting from successful exploration.
With on-going exploration success, Estrella considers the Colupo, Dania, Ivannia and Antucoya West prospects ideally create a potential district of mining and production operations with facilities to be positioned in the optimal locality between all of these prospects.
Commenting on the Initial Diamond Drilling Program at Dania, Estrella's Managing Director, Jason Berton, said:
"The results from our first diamond drill hole at Dania have characteristics fitting with the classic porphyry model.
Through further exploration drilling Estrella is keen to progress the near-surface copper oxide potential at Dania as this style of mineralisation may provide a good compliment to the copper mineralisation already identified at the Colupo prospect. Copper oxide mineralisation at both Dania and Colupo commences from surface and at this stage has the potential to develop into a joint heap-leach style mining project.
Thus Estrella is moving along the path to creation of a multi-faceted copper oxide "district" of projects in northern Chile."
To view all tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/76891-ASX-ESR-791803.pdf
Contact
Dr. Jason Berton MAusIMM
Managing Director
Tel: +61 2 9993 4408
Mob: +61 402 199 166
Fax: +61 2 9993 4433
Email: jb@estrellaresources.com.au
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