Mangrove-Barramundi Potential
December 22 2006 - 4:05AM
UK Regulatory
RNS Number:5412O
Aztec Resources Limited
22 December 2006
Aztec Resources Limited
22 December 2006
Exploration Drilling Confirms Potential at Mangrove and
Barramundi West Deposits
A full version of this announcement, with figures, is available on
www.aztecresources.com.au
Aztec Resources Limited ("Aztec" ASX & AIM: AZR) is pleased to announce that a
total of 9,387 metres of reverse circulation (RC) drilling in 100 holes has been
completed on Koolan Island during the 2006 exploration and infill drilling
programme. The programme achieved:
* Evaluation of the potential of the Mangrove deposit.
* Extensions to defined mineralisation at Eastern-Barramundi, Main and
Mullet-Acacia deposits.
* Evaluation of outcropping and undercover extensions to the previously
mined Barramundi deposit.
* Definition drilling within the Eastern-Barramundi deposit to enhance
selective mining.
Locations of these deposits and the 2006 drill hole collars are shown on Figure
1 and the metres drilled by areas are summarised in Table 1 below.
Table 1: Koolan Island 2006 Exploration and Deposit Infill Drilling Summary
Deposit Holes Metres
=============== ========= ===========
Mangrove 35 4,610
Barramundi West 9 418
Barramundi South 13 688
Eastern-Barramundi 14 1,329
Mullet-Acacia 20 1,722
Main West 9 620
TOTAL 100 9,387
Surtron down hole density and survey measurements have been completed where
drill holes remained open and accessible. Geological modelling and mineral
resource estimates are underway for the Mangrove and Barramundi West deposits
and estimates for other areas will follow. Pit design, optimisation and ore
reserve estimation will be subsequently undertaken where appropriate.
Mangrove Deposit
The Mangrove deposit is located 1 kilometre southeast of the Main deposit in
close proximity to the process plant. Drilling to date has been conducted over
850 metre strike length in the north-western portion of the 2 kilometre long,
sub-vertical, partially outcropping hematite bearing Mangrove structure.
Assays received from the latest infill drilling at the Mangrove deposit have
confirmed continuous hematite mineralisation over a strike length of greater
than 600 metres.
This drilling targeted both near surface and down-dip mineralisation at
approximately 100 metre centres to enable a mineral resource estimation to
proceed. Due to access difficulties, the drill holes pierced the hematite
horizon at angles ranging from perpendicular to acute. Generally, the hematite
varies in thickness from 5 metres to 20 metres. Drilling to date indicates the
mineralisation at Mangrove has a depth potential of more than 150 metres and
remains open.
Highlights of the recent infill results are shown in Table 2. Figures 2 and 3
display the drill hole locations and typical cross-section of the north-easterly
dipping, sub-vertical nature of the mineralisation.
Table 2: Better Drill Intercepts from the recent Infill Drilling at Mangrove
Intercepts are calculated at >4m of >55% Fe cut off.
Hole ID Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m) Fe% SiO2% Al2O3% P%
======= ====== ====== ======== ======= ====== ===== ====== ====== ====== ======= =====
RC378 -70 220 8215557 580568 69 84 15 61.9 9.3 0.3 0.01
87 91 4 62.0 8.7 0.1 0.01
105 165 60 61.0 11.6 0.2 0.02
RC379 -70 180 8215556 580574 159 173 14 61.6 10.0 0.4 0.01
166 173 7 65.0 6.2 0.2 0.01
RC381 -50 220 8215588 580530 62 77 15 62.1 9.5 0.4 0.03
RC382 -70 220 8215588 580531 80 89 9 61.5 7.0 2.0 0.08
113 121 8 61.9 10.0 0.5 0.02
RC383 -50 210 8215684 580451 114 134 20 63.8 7.8 0.5 0.03
RC384 -60 210 8215685 580452 136 147 11 63.1 8.7 0.4 0.04
RC386 -50 230 8215499 580657 82 111 29 64.2 7.2 0.3 0.03
RC388 -60 205 8215496 580659 82 94 12 64.7 6.3 0.6 0.01
Barramundi West Deposit
The Barramundi West Deposit is the north-western extension to the hematite ore
historically mined at the Barramundi pit. This outcropping hematite horizon
typically dips at 20degrees toward the southwest beneath Yampi Formation cover.
Encouraging intercepts returned from the recent drilling at Barramundi West have
confirmed the continuity of the hematite mineralisation over 350 metre strike
length and greater than 120 metre down dip. This drilling has resulted in a
nominal hole spacing of 40 metres by 40 metres suitable for mineral resource
estimation.
The better recent drill intercepts at the Barramundi West Deposit are listed in
Table 3 and hole locations with a typical cross-section are shown in Figure 4.
Table 3: Better Drill Intercepts from the recent drilling at Barramundi West
Intercepts are calculated at >4m of >55% Fe cut off.
Hole ID Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m) Fe% SiO2% Al2O3% P%
======= ===== ====== ======== ======= ====== ===== ====== ====== ====== ======= =====
RC341 -90 0 8216005 581046 36 44 8 64.5 3.6 1.6 0.06
RC342 -90 0 8216074 580965 47 54 7 65.5 4.0 0.9 0.04
RC344 -70 30 8216111 580993 24 33 9 65.7 2.9 1.4 0.05
RC345 -60 30 8216145 581012 4 10 6 60.4 6.4 4.7 0.02
RC347 -90 0 8216052 581064 3 10 7 64.7 4.5 1.7 0.02
RC348 -90 0 8216013 581120 9 15 6 67.0 1.9 1.2 0.01
RC399 -90 0 8216144 580952 22 26 4 64.5 4.1 2.4 0.04
27 28 1 60.8 5.4 4.5 0.05
Barramundi South Deposit
The Barramundi South Deposit is the south-western down-dip extension to the
hematite ore mined in the Barramundi pit. Recent drilling has further delineated
the area of previously reported encouraging intercepts within the moderate
south-westerly dipping hematite horizon which extends beneath Yampi Formation
cover. This recent drilling was aimed at quantifying the remaining economically
accessible hematite mineralisation in this area.
The mineralised horizon is approximately 550 metres in strike length and extends
down dip for greater than 50 metres. The better intercepts at the Barramundi
South Deposit are listed in Table 4. These holes are relatively perpendicular to
the hematite horizon.
Table 4: Better Drill Intercepts from the 2006 drilling at Barramundi South
Intercepts are calculated at >4m of >55% Fe cut off.
Hole ID Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m) Fe% SiO2% Al2O3% P%
======= ===== ====== ======== ======= ====== ===== ====== ====== ====== ======= =====
RC325 -60 30 8215853 581260 28 33 5 62.6 9.1 0.8 0.02
RC326 -60 30 8215829 581297 27 34 7 61.9 7.0 2.3 0.03
RC327 -60 33 8215734 581402 35 39 4 65.7 4.6 0.9 0.02
RC393 -60 30 8215712 581454 35 42 7 64.2 4.6 2.4 0.01
RC394 -60 30 8215635 581582 43 51 8 65.9 3.1 2.0 0.02
Main West Deposit
Hematite horizons of the Main Deposit continue to the northwest beyond the limit
of previous mining activity. High-grade mineralisation in this area, known as
the Main West Deposit, becomes more sporadic.
The 2006 drilling tested approximately 300 metres of strike length of the
outcropping, south-westerly dipping orebody. It was aimed at both expanding and
infilling the previous drilling at the deposit to increase and upgrade its
current Inferred Resource category. Pockets of high-grade hematite were
intersected adjacent to lower grade hematitic conglomerate. The better drill
intercepts at the Main West Deposit are listed in Table 5.
To test the deposit at depth, most of the angled drill holes were collared
through unconsolidated waste dumps situated adjacent to the outcropping
mineralisation.
In addition, shallow close-spaced blast hole drilling is being conducted from
the top of the outcropping hematite body to determine the continuity of the
high-grade mineralisation near surface. Assays for this drilling are awaited.
Table 5: Better Drill Intercepts from the recent drilling at Main West
Intercepts are calculated at >4m of >55% Fe cut off.
Hole ID Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m) Fe% SiO2% Al2O3% P%
======= ====== ====== ======== ======= ====== ===== ====== ====== ====== ======= =====
RC369 -60 33 8216940 577971 44 56 12 61.5 12.0 0.2 0.00
47 54 7 64.1 8.2 0.2 0.00
RC370 -60 33 8217072 577845 8 12 4 67.2 3.1 0.5 0.00
RC371 -60 33 8216908 577985 64 71 7 63.3 9.2 0.2 0.00
RC372 -60 33 8216969 577917 39 57 18 66.3 4.2 0.7 0.00
RC373 -60 36 8216993 577882 47 53 6 63.3 9.1 0.2 0.00
RC376 -60 33 8217010 577915 23 30 7 64.7 6.7 0.2 0.00
Eastern-Barramundi Deposit
The Eastern-Barramundi ore reserve occurs within the south-easterly plunging
Eastern-Barramundi anticline. Hematite ore was mined previously by BHP from the
Eastern Pit, on the north-eastern limb of the anticline and from the Barramundi
Pit on the south-western limb. The current ore reserve is situated adjacent to
the existing open pits both at depth and along strike to the southeast.
Both exploration and infill drilling was conducted in this area. Results from
the infill drilling confirmed previous geological interpretations, outlined
hematite mineralisation extensions at depth and will allow more precise mine
planning. This is apparent in hole RC329 where extensive intercepts were
encountered, however, the hole was terminated in hematite mineralisation due to
drill rig capability limitations. Exploration drilling intersected encouraging
hematite horizons such as RC334, located adjacent to the planned pit and RC340,
northwest of the historic Eastern pit. Selected highlights of the drill results
are included in Table 6.
Table 6: Better Drill Intercepts from the recent drilling at Eastern-Barramundi
Deposit
Intercepts are calculated at >4m of >55% Fe cut off.
Hole ID Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m) Fe% SiO2% Al2O3% P%
======== ===== ====== ======== ======= ====== ===== ====== ====== ====== ======= =====
RC329 -60 53 8215367 582167 138 153 15 62.7 8.2 1.2 0.05
160 171 11 62.8 9.6 0.3 0.02
173 227 54 63.7 6.2 1.7 0.03
RC334 -60 53 8215017 582218 13 19 6 63.3 4.3 3.5 0.02
RC337 -60 53 8215715 582051 2 10 8 64.4 4.1 2.3 0.03
11 21 10 68.4 1.1 0.4 0.03
RC340 -60 53 8216154 581757 4 22 18 62.3 6.4 2.5 0.04
Mullet-Acacia Deposit
The Mullet-Acacia drilling programme had two primary targets. Possible
extensions to the northwest plunging nose of the Mullet-Acacia anticline and
extensions of the south-westerly dipping Acacia limb of the anticline. This
anticline forms the current Mullet-Acacia Deposit.
Encouraging results were encountered at both drill targets. Due to access
difficulties the drill holes pierced the hematite horizon at angles ranging from
perpendicular to acute. Generally, the hematite rich beds in the limbs of the
fold are 5 metres to 20 metres thick.
Exploration drilling intersected encouraging hematite intercepts such as in hole
RC350, located at the plunging nose of the anticline adjacent to the western
boundary of the planned pit. Mineral resource estimations will be undertaken to
incorporate the recent drill results. Selected highlights of the drill results
are included in Table 7. The 2006 drilling collars are highlighted on Figure 1.
Table 7: Better Drill Intercepts from the recent drilling at Mullet-Acacia Deposit
Intercepts are calculated at >4m of >55% Fe cut off.
Hole ID Dip Az (Mag) GDA Northing GDA Easting From (m) To (m) Width (m) Fe% SiO2% Al2O3% P%
======= ===== ====== ======== ======= ====== ===== ====== ====== ====== ======= =====
RC350 -90 0 8217860 577935 27 38 11 65.4 6.2 0.2 0.00
39 43 4 59.7 13.5 0.4 0.02
RC351 -60 183 8217846 578036 30 36 6 60.8 12.5 0.4 0.00
39 49 10 64.5 7.3 0.2 0.00
65 69 4 60.0 12.7 0.9 0.00
71 86 15 63.0 9.0 0.5 0.01
87 95 8 59.3 14.3 0.4 0.01
100 110 10 61.4 11.5 0.4 0.00
RC352 -60 183 8217824 578093 25 38 13 62.2 10.6 0.4 0.01
108 118 10 63.1 9.5 0.1 0.00
RC353 -60 183 8217806 578133 37 48 11 62.0 11.0 0.1 0.00
99 123 24 62.4 10.0 0.4 0.01
RC354 -60 183 8217787 578184 37 45 8 61.8 11.3 0.2 0.02
RC358 -60 183 8217684 578354 46 48 2 62.9 9.9 0.1 0.00
49 59 10 62.2 10.4 0.3 0.00
RC359 -90 0 8217648 578400 26 34 7 63.0 9.3 0.2 0.00
RC367 -90 0 8217569 578551 41 46 5 64.1 7.8 0.2 0.01
Future exploration programmes on Koolan Island planned to commence in 2007 will
target both proximal under-explored and unexplored areas elsewhere.
Attribution
The information in this report that relates to exploration results is based on
information compiled by Alexander Moyle who is a full time employee of the
Company. Alexander Moyle is a Member of the Australian Institute of
Geoscientists and a Member of the Australasian Institute of Mining and
Metallurgy and has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the "Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Alexander Moyle consents to the inclusion in the
report of the matters based on his information in the form and context in which
it appears.
For further information please contact:
Australia
Peter Bilbe, Managing Director: +61 8 9423 0800
Ian Gregory, Company Secretary: +61 8 9423 0800
Aztec Shareholder Information Line
1800 602 244 (Australian callers)
+61 8 6218 4220 (International callers)
UK
Fiona Owen, Grant Thornton: +44 (0) 870 991 2318
Media Enquiries:
Warrick Hazeldine - Purple Communications
Tel: +61 8 9485 1254 or Mob: +61 (0) 417 944 616
This information is provided by RNS
The company news service from the London Stock Exchange
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