ELL ellendale resources nl

announcement out comments please

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    HOMEX - Perth

    Ellendale Resources NL has a 50% interest in the Mt Sarah and
    Welbourn Hill gold/base metal projects in northern South Australia.
    The projects consist of two exploration licences covering 402 square
    kilometres of ground. The remaining 50% is held by Canadian listed
    Caldera Resources Inc, who are also managerof the project.

    In relation to these projects, Caldera have advised as follows:

    "Caldera Resources Inc is pleased to advise that two ground gravity
    surveys have been completed at the Mt Sarah and Welbourn Hill
    gold/base metal projects in northern South Australia.

    The Mt Sarah and Welbourn Hill anomalies are discrete intense
    magnetic anomalies considered as potential iron oxide copper-gold
    (Fe-oxide Cu Au) style deposits. Gravity survey's at both anomalies
    indicate relatively shallow gravity anomalies associated with a
    deeper magnetic anomaly. The interpreted apparent susceptibilities of
    the magnetic anomalies suggest a significant iron content.

    The Mt Sarah gravity survey identified two separate and well defined
    gravity anomalies associated with the magnetic anomaly. Modelling of
    this data has shown that one gravity anomaly is significantly
    shallower than the other and may only be some tens of metres from the
    surface. This makes the target an attractive exploration proposition
    for the joint venture from a cost perspective.

    Initial surface geo-chemical results obtained from one traverse at Mt
    Sarah show anomalous barium, phosphorous and rare earth elements,
    which is a characteristic of Fe-oxide copper/gold deposits. The
    geo-chemical anomaly appears to be related to the more shallow of the
    two detected gravity anomalies at this project area. The joint
    venture considers these geo-chemical results to be of high interest
    as some of the rate earth elements are a leading pathfinder in the
    search for this type of ore deposit.

    This magnetic/gravity anomaly association is a characteristic of the
    world class Olympic Dam copper/gold deposit and is also a feature of
    the Company's Mt Carulina Project which is under an option agreement
    with Inco Ltd. The gravity anomaly at Olympic Dam is caused by a
    haematite breccia, which hosts significant copper/gold

    The positions of the twoExploration Licences relative to the Mt
    Carulina Exploration Licence, Olympic Dam and the recent discovery at
    Prominent Hill by Minotaur Resources Ltd is tile reason. Caldera
    regards the Mt Sarah and Welbourn Hill anomalies as high priority
    exploration targets."

    Martin E Jackson MAusIMM, is the qualified person responsible for the
    technical information contained in this release.

    D McArthur

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