Just announced, and look at the silver and gold content of this zinc resource.
KAGARA ZINC LIMITED 2002-07-16 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ Kagara Zinc Limited is pleased to announce the acquisition of the Red Dome tenement package from Niugini Mining for a consideration of $640,000 payable in cash or Kagara shares at Kagara's election at settlement. The sale is subject to ministerial approval which is expected within 3 months. The tenements adjoin Kagara's Walsh River Tenements in the Chillagoe region of Northern Queensland.
The major asset within the package is the Mungana indicated and inferred base metal resource of 1.21 million tonnes at 11.9% zinc, 3.1% lead, 2.6% copper, 138 grams per tonne silver and 1.3 grams per tonne of gold. This equates to approximately 28% zinc equivalent, which is similar to the Surveyor deposit.
There is within the package of granted mining leases a total resource inventory of 170,000 tonnes of zinc, 52,000 tonnes of copper, 66,000 tonnes of lead, 10.1 million ounces of silver and 576,000 ounces of gold. This increases Kagara's total resource inventory for the Mt Garnet project to 786,000 tonnes of zinc, 83,000 tonnes of copper, 203,000 tonnes of lead, 21.8 million ounces of silver and 673,000 ounces of gold. The 28% increase to the zinc inventory will now be incorporated into Kagara 3 - 5 year objective to expand output of zinc concentrate to 150,000 tonnes per year.
The package encompasses 7 granted mining leases totalling 1584 hectares and a granted exploration permit of 38,770 hectares. In excess of $15 million has been expended on the tenements including more than 80,000 metres of diamond and RC Drilling.
As financial and personnel resources permit, a number of base metal targets along the 3.5km strike length between Red Dome and Mungana will be drill tested.
INITIAL TARGETS ARE:
1) Girofla - where previous drilling encountered 45 metres at 4.5% zinc, 8.3% lead, 0.4% copper and 125 grams per tonne silver in the deepest hole drilled.
2) Lady Jane - where previous drilling encountered 2 metres at 12.9% zinc, 12.5% copper and 880 grams per tonne silver in the deepest hole drilled.
3) Griffiths - where previous drilling has encountered a 3 metre intersection of massive sphalerite-chalcopyrite.
As far as the gold resources acquired are concerned, an assessment will be made as to how to utilise these substantial assets to provide the best return for Kagara Shareholders. Of initial interest is the high grade Mungana gold deposit containing an indicated and inferred 530,000 tonnes at 5.8grams per tonne gold and the potentially open pittable and heap leachable upper Mungana indicated and inferred resource of 1.2 million tonnes of 2.2 grams per tonne gold and 112 grams per tonne silver.
Released by: Mr Kim Robinson EXECUTIVE CHAIRMAN Kagara Zinc Limited Telephone: (08) 9481-1211 Mobile: (0427) 440 045
