ARC Significant Gold/Copper Deposit Confirmed

  1. 1,853 Posts.
    AMALG RESOURCES NL 2002-08-21 ASX-SIGNAL-G

    HOMEX - Perth

    +++++++++++++++++++++++++
    The Board of Amalg Resources NL ("ARC") is pleased to advise that
    significant widths of copper/gold mineralisation have been confirmed
    in an area called "Eloise Deeps", below the Ramsay Fault at the
    Eloise Copper/Gold mine. These outstanding assay results from an
    underground diamond drilling program indicate that the Eloise Deeps
    mineralisation has the potential to add another year's reserves.

    The recently completed drilling program was designed to test in-fill
    targets within the depth extension of the 'B' (Levuka) Lode and to
    confirm the existence and continuity of the 'B' Lode mineralisation
    below the current ore reserve outline.

    Results for diamond drill holes EAM 324 - 327, which were pending
    when the June Quarterly report was prepared, are shown in Table 1.


    Table 1: Underground Drill Results - Eloise Copper/Gold Mine

    HOLE COLLAR RL AZ DIP TOTAL INTER
    NUMBER COORDINATES M DEPTH FROM TO
    NORTH EAST

    EAM324 82282.6 97573.5 554.5 112.0 -16.8 150.0 104.95 106.36

    EAM325 82162.9 97509.3 619.5 99.0 -42.0 191.6 159.70 167.20
    170.55 177.65
    EAM326 82162.9 97508.3 619.1 102.5 -75.0 371.5 269.37 294.81
    EAM327 82162.3 97507.8 618.7 137.0 -72.3 377.7 245.00 266.15
    286.30 303.25
    HOLE METERS GRADE
    NUMBERS %CU G/T AU G/T AG

    EAM324 1.41 3.30 0.29 11.5

    EAM325 7.50 4.31 0.33 18.3
    7.10 3.60 0.55 16.8
    EAM326 25.44 4.59 1.05 18.3
    21.15 4.83 1.62 19.2
    EAM327 16.95 4.80 1.40 18.3

    Intersections are at a 2.0% Cu cut-off.

    Drill holes EAM 324 & 325 were designed to in-fill/extend known
    mineralisation above the Ramsay Fault. The Ramsay Fault truncates
    mineralisation below the 450m Level and represents the base of the
    current ore reserve outline. Drill Holes EAM 326 & 327 intersected
    the main lodes (Levuka and Elrose) below the Ramsay Fault and confirm
    that the mineralised envelope extends for at least another 100
    vertical metres below the current reserves.

    The new mineralisation is still open at depth and showing no signs of
    weakening. This zone will become the target of a 23 hole underground
    diamond drilling program scheduled to commence in October 2002. The
    Company plans to test a 100 - 125 metre vertical block down to the
    300m Level with a total of 5,240 metres of drilling. A 70 metre long
    drill drive is currently being developed at this 495m Level to
    provide drilling access.

    J Hocking
    CHAIRMAN

    The information in this report that relates to Mineral Resources or
    Ore Reserves is based on information compiled by Brian Kelty who is a
    Member of The Australasian Institute of Mining and Metallurgy. Brian
    Kelty is a fulltime employee of the company.

    Brian Kelty has sufficient experience which is relevant to the style
    of mineralisation and type of deposit under consideration and to the
    activity which is undertaking to qualify as a Competent Person as
    defined in the 1999 Edition of the Australasian Code for Reporting of
    Mineral Resources and Ore Reserves". Brian Kelty consents to the
    inclusion in the report of the matters based on their information in
    the form and context in which it appears.
 
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