Feb 7 2011
Exploration drilling at Salman South and Salman Central has intersected extensions to the sulphide ore zones below the oxide pits.
The new drilling has confirmed that the sulphide ore zones extend under the entire length of the oxide pits. The best intersection from the results available to the end of January is SNRCD1015 7m @ 5.98g/t Au from 124m.
At Salman, there are several broad and shallow dipping zones of oxide mineralisation that form part of the current Reserve, that will be mined as open pits. Below the oxide pits there are moderately steep dipping sulphide ore zones that are continuous with the oxide ore zones. Prior to the current drill program testing of the sulphide zones was not systematic.
Resource definition drilling of the sulphide zones was commenced in August 2010 at the Teberu 04 and Nugget Hill deposits and was then extended to Salman South and Salman Central in late 2010, with drilling continuing into 2011.
Diamond drilling has been designed to test the sulphide zones on 50m spaced traverses to a vertical depth of 100m. Phase 1 of the drill program at Salman South, Salman Central, Teberu and Nugget Hill is now nearing completion. Drilling at Salman North will commence when access is available in a few months. Phase 2 of the drill program involves deeper drilling that will extend ore zones to a depth of 150-200m vertical. This drilling will be dependent on results and assessment of results from Phase 1.
Exploration Update
Resource definition drilling at the Aliva oxide prospect was completed at the end of January. The RC drilling program was designed to provide systematic coverage of the ore zones on 50m spaced traverses and to extend the ore zones at depth. Geological modelling and a new resource estimate is planned for mid-2011.
Following the improvement in the weather at the end of the wet season in December four soil sampling teams have been active on the Apa Tam and Asanta exploration licences and an additional four teams will soon be employed to complete soil sampling coverage on the Hotopo licence. The first results from this program will be available in February.
Resource definition and resource extension drilling is scheduled to commence at Anwia in March-April followed by drilling at Bokrobo. Reassessment of the previous drilling has highlighted targets that have the potential to increase the resources.