SEPON PROJECT 80% OXIANA, 20% RIO TINTO KHANONG COPPER DRILLING
Western extensions to Khanong resource confirmed. New high grade zone delineated.
All results have now been received from the Copper Project Bankable Feasibility Study (BFS) infill and extension drilling programme at Khanong. A robust high grade resource has been confirmed, extensions have been delineated and the deposit remains open in several directions.
* Full results for the infill and extension drilling programme at Khanong have now been received. This programme, completed as part of the copper BFS studies, has been highly successful in achieving its objectives.
Infill drilling in the central core of the deposit has confirmed a robust high grade copper resource with excellent continuity demonstrated between holes and sections. The majority of this central core mineralisation is expected to be classified as measured and indicated resources. This will establish a substantial initial mineable reserve base for the BFS.
Continuity of the resource to the west has been confirmed and extensions to the deposit have been delineated in a number of areas to the north, south and south-east. The deposit remains open in several directions (figure 1).
* Results received for the final batch of holes (KHN 275 KHN 294) from the Khanong BFS extension drilling have confirmed continuity of the resource to the west. Of particular significance is the delineation of a new 500 metre long core of near surface higher grade mineralisation. Some of the better results from the latest batch are as follows:
HOLE NO EASTING NORTHING INTERCEPT DEPTH FROM METCODE
KHN284 607200 1875400 11m 1.0% Cu 7 metres CC,CuO KHN285 607300 1875400 19m 1.3% Cu 34 metres CC,LCC KHN286 607500 1875400 22m 4.4% Cu 12 metres CC,CuO including 5m 12.7% Cu 19 metres KHN288 607700 1875500 31m 1.6% Cu 2 metres LCC,CC KHN293 607350 1875700 16m 1.6% Cu 28 metres CuO including 2m 5.6% Cu 29 metres
Note: sample interval is 1 metre; intercepts are weighted averages calculated using a 0.5% copper cut-off grade; maximum internal waste is 2 metres; metcode CC _ chalcocite, CuO _ copper oxide, PR _ primary; LCC _ Limonite + chalcocite; all holes are vertical.
* Extensive quality control incorporating diamond twins of RC drill holes, check standards, external lab assay checks, field and assay duplicates, coarse and pulp blanks and assays of cyclone derived drill fines have been thoroughly analysed. No anomalies of any significance have been detected and the data is of excellent quality. Extensive analysis of bulk density measurements is also complete.
* Final data compilation and validation is complete and resource modelling is in progress. A revised resource is expected to be completed in August.
O L Hegarty MANAGING DIRECTOR
Note: Within this statement references to resources and exploration results have been approved for release by Tony Manini BSc (Hons), FAusIMM who has more than five years experience in the field of activity concerned.
A copy of the full announcement, including figure 1, 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.
ends - AAP
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