Menzies Gold a/h announcement

  1. 404 Posts.
    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.

    P Ingram
    MANAGING DIRECTOR

 
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