As announced in July 2002 Inmet Mining Corporation (Inmet) have completed 15,000 metres of drilling in 22 holes on the Teutonic Bore joint venture project since January 2002, and have discovered the Jaguar high grade base metal deposit. The Jaguar deposit, a copper, zinc and silver rich body, forms a steeply dipping sheet measuring at least 400 metres from north to south, 300 metres vertically with a thickness of up to 8 metres horizontally. Massive sulphide (high grade) mineralisation remains open in several directions, most notably up-dip towards surface, and to the north. In addition there is potential to discover additional deposits nearby within the hosting EM conductor, which extends for over 1800 metres. The last hole of the stage 1 programme, TBD 205W, completed during July 2002, intersected 1.8m of massive sulphide @ 12.5% Zn, 0.8% Cu, 180 g/t Ag and 0.25 g/t Au.
Inmet plan to re-commence drilling during August/September 2002, with 2 drill rigs, concentrating within the EM conductor to continue to delineate the Jaguar deposit on 100 metre step-outs in areas where the mineralisation remains open (refer attached long-section). Concurrent with the drilling programme will be a preliminary metallurgical study to determine the recovery of the massive sulphide mineralisation and a resource calculation leading to a mining scoping study.
NOTE: For further information on the status of this project refer to the Pilbara web site www.pilbaramines.com.au, Analysts contacts).
Further ongoing exploration being considered will be the testing of other base metal targets within the JV project area, including a significant EM anomaly, 10km south of Jaguar, other defined EM anomalies and the Snowys Well prospect (6m @ 2.42% Zn, 5m @ 2.2%Zn and 1m @ 0.66% Cu) located 4km south of Jaguar and the continuation of the EM geophysical survey north of the old Teutonic Bore mine to delineate further conductive targets in this area. There are a number of anomalous base metal prospects already outlined. EM survey coverage in previous historical exploration in this area is very limited.
REGIONAL EXPLORATION (PILBARA 100%)
As reported in the June 2002 Quarterly Report, stage 1 of an air core drilling programme testing an under-explored area on the western tenement boundary was due for completion in July 2002. 9,647 metres were drilled in 202 holes covering approximately 12km of strike.
Drilling was within an area of interpreted mafic and ultramafic rocks, with associated structures, and with the potential to host gold and nickel mineralisation.
GOLD 22 holes reported gold assays of 20ppb or above, up to 770ppb Au. The main area of gold mineralisation in 2 adjacent holes shows weathered and altered volcanics and sediments with associated quartz veins and a west-north west structure on the trend of the Royal Arthur gold mine. Further work will be completed following up these highly anomalous results.
Further drilling is also proposed over an identified "gold corridor", covering some 5km of strike and including previous RAB and air core drilling results of 4m @ 5.79 g/t Au from 34m, 4m @ 2.5g/t Au from 32m, 16m @ 1.82g/t Au from 54m, 4m @ 2.9g/t Au. Drilling by previous explorers appears not to have penetrated the alluvial cover in many places.
NICKEL (INMET JV) drilling has outlined a highly anomalous ultramafic unit, over 4km in length, with values up to 0.35% Ni and associated anomalous cobalt. A number of EM conductive targets outlined in historical surveys have been identified in this area, which may represent high-grade nickel accumulations, and have not previously been drill tested. A more detailed EM survey is proposed to define targets for follow-up drill testing.
The major EM conductor identified by Inmet, south of Jaguar, is also adjacent to this anomalous ultramafic unit. Further interpretation and drilling are proposed in this area.
Stage 2 regional and target drilling for gold and nickel will commence in the near future, subject to Heritage requirements, and will concentrate on the nickel and gold prospects outlined above. Significant results will be reported when available.
LENNONS FIND PROJECT (100% PILBARA)
Following further interpretation, Pilbara have commissioned Outer Rim Geophysical Consultants (used by Inmet to discover Jaguar) to carry out an EM survey over the Lennons Find base metal deposit, SE of Marble Bar in the Pilbara region of WA. The survey will cover strike extensions to the known resource and the mineralised contact zone over approximately 5km and provide indications of areas of concentration of the massive sulphide and hence provide definitive drill targets for follow-up.
A copy of the full announcement including the map is available in PDF format on www.asx.com.au. Alternatively it is available for purchase from ASX Customer Service on 1 300 300 279.