MZG still coming out with more good news! The one below came out after market closed yesterday. Read their last few posts and make up your own mind. They've got a sizeable stake now in the Murchison Goldfield. IMHO way undervalued. I hold CRS,CTO,MZG P.S. Don't tell George W(armongerer) Bush. Company Announcement JV Agmt with THX on the Rothsay Project
MENZIES GOLD LIMITED 2002-05-29 ASX-SIGNAL-G
As part of a planned strategy of discovery and acquisition of high-grade gold resources, Menzies is pleased to announce the signing of a Heads of Agreement with Thundelarra Exploration Ltd on the Rothsay Gold Project in the Murchison Province, Western Australia, Under the terms of the agreement, Menzies may earn an interest of up to 65% in the Rothsay project by taking the project to final feasibility within twelve months and commencement of production within eighteen months.
In the initial stage of the earning period (Stage One) Menzies and Thundelarra, will jointly fund exploration and metallurgical studies. Stage One will be completed within four months. Thereafter Menzies will sole fund feasibility work (within twelve months) and proceed to a decision to mine.
During Stage One, Menzies and Thundelarra will undertake diamond drilling beneath the old Rothsay workings to obtain representative metallurgical samples as well as infill drilling in areas where additional geological information is required. Stage Two will see the completion of the feasibility study, which will combine the 100% Menzies' owned Deflector deposit (King Solomon Mines Operation) which has an underground resource of 308,137t of 5.9 g/t Au and 2.7% Cu (58,456 oz Au and 8,319 t Cu). The Rothsay and Deflector deposits compliment each other with similar milling requirements and copper credits.
The Rothsay project covers 1091ha and is held under two granted mining leases numbered 59/39 and 59/40 in the Yalgoo Mineral Field. Rothsay is situated 300 km north of Perth and approximately 95 kms south of the Menzies' 100% owned King Solomon Mines Operation (Murchison Gold Project). Previous operators had identified a resource of 470,000 tonnes of 9.97 g/t gold in 1988, and commenced mining. A total of 36,000 ounces was produced before the weakened gold price forced the mine closure in 1991. At the time of closure, remaining resources were 240,000 tonnes at 6.8 g/t gold (52,470 ounces). Recalculation of the resource by Thundelarra, based on additional drill information, resulted in an inferred and indicated resource of 69,000 tonnes @ 11.0g/t Au.
The Rothsay mine workings are developed on a major shear zone, with consistent quartz veining extending for over 600 metres in the immediate vicinity of the mine. Drilling by Thundelarra in 2001 has extended the gold bearing portion of the vein some 475 metres south of the existing workings, with drill intersections of 5 metres @ 9.2 g/t Au and 0.63m @ 20.38 g/t Au between 86m and 165m depth.
There is considerable exploration upside at Rothsay, with a number of lode systems untested. As well, the immediate extensions of the main Rothsay lode have not been adequately tested, both along strike and down dip. The mine has excellent potential to be developed as a high- grade operation, utilising selective mining practices. Drilling at Rothsay is planned to commence in mid-June.