Exploration results
June 13 2005 - 3:00AM
UK Regulatory
RNS Number:4032N
Gippsland Limited
13 June 2005
13 June 2005
Gippsland Limited ("Gippsland" or the "Company")
HIGHLY ENCOURAGING EXPLORATION RESULTS
DELINEATE WADI ALLAQI DRILLING TARGETS
34.5 metres wide mineralised zone
20.3 metres @ 7.40g/t Au, including
4.0 metres @ 10.52g/t Au, and
4.3 metres @ 14.31g/t Au, plus
8.0 metres @ 7.77g/t Au
Trenching of anomalies Q3 for additional target delineation
in preparation for drilling programme in Q4
The Directors are pleased to announce the results of geochemical sampling from
the Company's Wadi Allaqi project areas in southern Egypt.
Highly anomalous gold results were obtained from three of the areas sampled. At
the Seiga prospect rock chip sampling returned 20.3m at 7.40g/t Au including
4.3m at 14.31g/t Au and 4m at 10.52g/t Au within a 34.5m wide zone of
mineralisation. At the Um Shashoba prospect sampling of wall rocks adjacent to
ancient workings gave a best result of 11.9m at 2.22g/t Au including 2m at
4.19g/t Au. Rockchip sampling at Haimur returned 2m at 71.37g/t Au plus 2m at
11.31g/t Au while regolith sampling at Haimur and Um Shashoba returned anomalous
samples of up to 2.42g/t Au and 6.27g/t Au respectively.
1. SEIGA
A single profile of rock chip samples was collected across the strike of a zone
of highly altered sericite-chlorite-carbonate schist. The sample profile crossed
a shallow ancient pit. Samples were collected mostly at 4m intervals. The
profile started at the base of the ridge where wadi sand covered the outcrop,
and it is possible that the mineralisation continues beneath the alluvial cover
to the southwest.
Table 1 Seiga prospect rock chip sample results
Sample interval in metres Au - AAS (g/t) Au - fire assay (g/t)
---------------- ------------ -------------
0 to 4 2.55 2.73
4 to 8 1.86 2.26
8 to 12 6.85 6.66
12 to 16 10.31 10.52
16 to 20.3 14.12 14.31
20.3 to 26.5 No sample taken from shallow pit
26.5 to 30.5 11.4 11.65
30.5 to 34.5 3.7 3.89
34.5 to 38.5 0.476 0.53
38.5 to 42.5 0.140
42.5 to 46.5 0.267
46.5 to 50.5 0.040
50.5 to 54.5 0.030
54.5 to 58.5 0.047
---------------- ------------ -------------
To the southwest of an ancient shallow pit the sampling returned 20.3m at an
average of 7.40g/t Au with a further 8m at 7.77g/t Au on the eastern side of the
pit. Assuming that the material removed by the ancient miners was of a similar
grade, the mineralisation has a minimum width of 34.5m at around 7g/t Au. The
zone immediately along strike to the south of the ancient workings is covered by
wadi sands of unknown thickness. The host structure to the mineralisation has
been identified by geological mapping over a strike length of 1.75km and is open
at either end. The entire zone has only been sampled with a single profile to
date.
The prospect has been the site of mining activity dating back to the ancient
times, but this activity was restricted to high grade lodes and did not proceed
to any great depth. Apart from some exploratory shaft sinking by a South African
syndicate in the early 1900s, there has been no recent exploration of any
consequence.
2. UM SHASHOBA
At Um Shashoba a single profile of channel sampling was conducted across part of
ancient workings in the eastern part of the prospect. The work produced
reasonable results with an average of 11.9m at 2.22g/t Au. The profile did not
sample 1.6m across the ancient workings.
Table 2: Um Shashoba prospect channel sample results
Sample interval in metres Au (ppb) Au (g/t)
----------------- -------------- -----------
0 to 2 1,965 1.83
2 to 4 984 0.88
4 to 5.6 No sample taken from ancient stope
5.6 to 7.6 3,153 2.94
7.6 to 9.6 4,610 4.19
9.6 to 11.9 1,381 1.24
----------------- -------------- -----------
Seventy regolith samples were collected over an area between the two lines of
historical workings. They were collected at 50m spacing along lines 200m apart.
The best result was 6.27g/t Au at the end of one of the sample lines adjacent to
the eastern ancient workings. Eight samples returned assays greater than 0.1g/t
Au.
The sampling identified an anomalous gold zone coincident with a shear that is
associated with a north-south line of ancient workings.
3. HAIMUR
Discontinuous rock chip sampling was completed along the walls of two of the
five adits constructed during the early 1900s. The sampling confirmed the
presence of high-grade gold values associated with the lodes. Further
exploration will focus on identification of high-grade gold shoots along strike
from the historical workings.
Table 3: Haimur adit sampling - best results
Sample interval in metres Au (g/t)
----------------------- ---------
---------
Adit 1 12 to 14 71.37
Adit 1 44 to 46 2.04
Adit 1 48 to 50 11.31
Adit 2 4 to 6 1.11
---------- --------------- ---------
Regolith sampling was conducted over a large area covered by alluvial and wadi
sediments located to the northwest of the old workings. The sampling was
designed to target extensions to some mineralised shears identified from
geological mapping and some earlier wadi bank sampling. The results show a
number of linear anomalies that reflect the position of shears. The best result
of 2.42g/t Au is located adjacent to a shear that is known to be mineralised.
Some highly anomalous regolith samples containing up to 276ppb Au are located
along strike to the southwest from this shear. Eight samples returned assay
values greater than 200ppb Au.
4. UM GARAYAT
Twenty-nine trenches along strike to the south of the historical workings were
cleared and re-sampled. The trenches were previously excavated over shears and
veins identified by geological mapping. Overall the results were relatively low
with the best being 3m at 0.436g/t Au. The more prospective area located to the
north of the old workings has yet to be tested.
Exploration Programme
The Gippsland Directors consider the above results to be highly encouraging as a
number of drilling targets have been clearly delineated. The Company has entered
into negotiation with two drilling contractors with the aim of undertaking an
extensive rotary air blast ("RAB") and reverse circulation ("RC") drilling
programme at the earliest possible opportunity.
The drilling rigs will need to be sourced from outside of Egypt and whilst
mobilising the drilling rigs the Company plans to undertake an extensive
trenching programme over the extensions of the known mineralised zone at Seiga.
Trenching is also planned to test the geochemical anomalies identified at Haimur
and Um Shashoba.
While the excavator is on site trenching will be completed at Um Garayat and Abu
Swayel to obtain geological and geochemical samples from beneath the wadi
sediments. It is anticipated that the trenching work will enable the RC and RAB
drilling rigs to expand the programme whilst on site.
To view the five geological drawings associated with this announcement, go to
Investor Relations atwww.gippslandltd.com
For further information please contact:
Jack Telford
Executive Chairman
Gippsland Limited
Tel: +61 (0)8 93898611
jtelford@gippslandltd.com
Bill Sharp / Les Polden
Hoodless Brennan & Partners Plc
Tel: +44 (0)20 7610 8565
B.Sharp@HB-Corporate.com.
L.Polden@HB-corporate.com
Leesa Peters / Laurence Read
Conduit PR
Tel: +44 (0)20 7618 8708
leesa@conduitpr.com
laurence@conduitpr.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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