2nd Quarter Activities Report
January 30 2007 - 2:01AM
UK Regulatory
RNS Number:2687Q
Gippsland Limited
30 January 2007
30 January 2007
Gippsland Limited ("Gippsland" or the "Company")
To view this announcement with geological graphics, please visit the
Announcements section of the Gippsland website www.gippslandltd.com.
SECOND QUARTER ACTIVITIES REPORT
Period: September - December 2006
SUMMARY
40Mt ABU DABBAB TANTALUM PROJECT
* Gippsland terminates Lead Debt Arranger Mandate with IFC
* Appointment of Linden Advisory & Consulting Services as Financial Advisor
* Detailed project finance discussions in progress with European Banks
WADI ALLAQI CONTINUES TO YIELD SIGNIFICANT RESULTS
* 1,200m long zone of mineralisation defined by drilling at Seiga
* Inferred Resource estimation completed at Seiga
* Rockchip sampling identifies new zones of mineralization at Seiga
* Potential for significant tonnages at mineable grades
COMPANY PRESENTATIONS
* London Minesite presentation stimulates highly positive responses from brokers
& investors
* Company to present at Indaba - Cape Town 6 to 8 February 2007
* Company presentations Paris 21 Feb, Geneva 22 Feb & Zurich 23 Feb 2007
40Mt ABU DABBAB TANTALUM PROJECT
During the quarter the Company continued to make sound progress in regard to the
Abu Dabbab project whilst taking steps to ensure that the commissioning of the
project will take place in the shortest possible time frame.
INTERNATIONAL FINANCE CORPORATION
On 7 March 2006, the Company") announced that the International Finance
Corporation ("IFC") had been mandated ("the Mandate") as Lead Debt Arranger for
Gippsland's 40 million tonne Abu Dabbab Tantalum-Tin project in Egypt.
During the quarter the Company announced that it has cancelled the IFC Mandate
in order to pursue alternative sources of finance.
The cancellation of the IFC Mandate does not preclude the IFC from participating
in the provision of finance for the Project.
APPOINTMENT OF LINDEN ADVISORY & CONSULTING SERVICES
Following the cancellation of the IFC Mandate, the Company appointment Linden
Advisory & Consulting Services as Financial Advisor to assist in the arrangement
of project finance for the Abu Dabbab project.
Linden Advisory & Consulting Services www.eikelinden.com based in Frankfurt
Germany, is headed by Dr Eike von der Linden, an internationally recognised
authority in regard to industrial and resource projects world-wide. Dr von der
Linden is well connected to the global tantalum industry and has a close working
relationship with a number of German banks involved in the financing of natural
resource projects.
Linden Advisory & Consulting Services has completed a technical and financial
review of the Abu Dabbab feasibility study and is presently assisting the
Company in discussions with potential investors and a select number of European
project finance banks.
WADI ALLAQI GOLD EXPLORATION
During the quarter, the Company's Wadi Allaqi gold exploration drilling
programme continued to yield most encouraging results at the Seiga and Shashoba
prospects.
SEIGA
During the quarter, work included some infill drilling within the main zone of
mineralisation adjacent to historical workings, some follow-up drilling of
anomalous drilling results along strike from the historical workings and
completion of the reconnaissance drilling along the shear zone.
Table 1: Summary of best Seiga drilling intersections
Hole Intersection (m) Interval (m) Gold grade (g/t)
-------------- ---------------- ------------- --------------
CRC052 12 - 30 18 0.37
CRC053 1 - 12 11 0.62
CRC056 40 - 88 48 1.60
including 60 - 68 8 7.75
CRC057 20 - 52 32 0.52
CRC058 40 - 76 36 1.04
including 40 - 48 8 3.24
CRC059 1 - 24 23 1.16
CRC060 32 - 60 28 1.30
including 32 - 44 12 2.23
CRC065 1 - 56 55 0.19
CRC068 1 - 4 3 2.78
And 24 - 48 24 0.53
CRC069 16 - 40 44 0.64
including 20 - 32 12 1.18
CRC074 1 - 16 15 0.61
CRC075 1 - 16 15 1.64
CRC077 4 - 8 4 0.51
CRC078 4 - 32 26 0.50
-------------- ---------------- ------------- --------------
The drilling results confirm the presence of a zone of discontinuous
mineralisation within the shear system occurring over a strike length of at
least 1,200m.
INFILL DRILLING
The infill drilling consisted of five RC holes to test a 220m gap in the
previous drilling. Hole CRC056 returned 48m at 1.60g/t Au from 40m depth,
including 8m at 7.75g/t Au from 60m depth. This hole is located 50m north of the
previously drilled hole CRC013 which intersected 24m at 5.21g/t Au from 48m.
Hole CRC058 drilled 90m to the north of CRC056 intersected 36m at 1.04g/t Au
from 40m including 8m at 3.24g/t Au from 40m. Hole CRC057 was drilled 10m north
of CRC058 but from the opposite direction and intersected 32m at 0.52g/t Au from
20m.
Hole CRC060 drilled 40m to the north of holes CRC057 and 058 intersected 28m at
1.30g/t Au from 32m including 12m at 2.23g/t Au from 32m.
Hole CRC059 drill along the previously drilled section containing holes CRC014
to 016 and 28m north of Hole CRC060 intersected 23m at 1.16g/t Au from 1m depth.
FOLLOW-UP DRILLING
The follow-up drilling tested gold anomalies in the first-pass drilling. Hole
CRC065 tested a gold intersection in Hole CRC017 which was at the eastern end of
the drill profile. The hole intersected 55m at 0.19g/t Au from 1m.
A second zone of mineralisation is located slightly to the east of the zone
containing the historical workings. This zone was intersected in a number of
holes during the first-pass drilling and generally in the last hole in the
profile. Follow-up drilling along this zone returned significant results in two
holes and resulted in the location of a third zone of mineralisation located
further to the east.
Hole CRC068 returned 3m at 2.78g/t Au from 1m and 24m at 0.53g/t Au from 24m.
Hole CRC069 intersected 44m at 0.64g/t Au from 16m including 12m at 1.18g/t Au
from 20m.
Significant intersections returned from the third mineralised zone include 11m
at 0.62g/t Au from 1m in CRC053 and 18m at 0.37g/t Au from 12m in hole CRC052.
RECONNAISSANCE DRILLING
The drilling is part of reconnaissance drilling to the north and south of the
main zone of mineralisation adjacent to historical workings along the Seiga
shear zone. The results of four reconnaissance holes (CRC087 - 090) located to
the north and south of the shear zone are still outstanding.
The drilling extends the known strike length of mineralisation within the shear
system for at least a further 300m to the south giving a total strike length of
at least 1,200m.
ROCK-CHIP SAMPLING
A programme of rock-chip sampling along sixteen profiles was completed at Seiga
as an aid to identifying parallel zones of mineralisation located to the east of
the ancient workings. The results of the sampling clearly identified the main
zone of mineralisation with profile CP12 containing 80m at 1.76g/t Au which
included 15m at 3.23g/t Au. The results of profiles CP19 to 21 are yet to be
received.
The sampling identified two separate zones of mineralisation located to the east
of the main zone over an interpreted strike length of approximately 800m. The
best result included 25m at 1.14g/t Au in the eastern part of profile CP15. This
anomaly is coincident with mineralisation previously intersected in holes CRC052
and CRC053 which returned values of 18m at 0.36g/t Au and 11m at 0.62g/t Au
respectively. Four separate zones of mineralisation have now been located at
Seiga.
Table 2: Seiga - Summary of best rock-chip results
Profile From - To (m) Interval (m) Gold grade (g/t)
------------ ---------------- -------------- ---------------
CP10 10 - 25 15 1.59
CP11 60 - 70 10 1.64
CP12 5 - 75 70 0.51
Including 15 - 30 15 0.50
And 40 - 75 35 1.99
CP15 115 - 120 5 4.34
CP16 30 - 45 5 0.80
------------ ---------------- -------------- ---------------
JORC RESOURCE ESTIMATION
A preliminary resource estimation was completed by the Company's geologists for
a 525m strike length of the Seiga main zone incorporating the results of 25 RC
drill holes.
The inferred resources total 1.1Mt at 2.3g/t (uncut) and 2.0g/t (10g/t cut) to a
maximum depth of 150m and a global SG of 2.5 at a 0.7g/t cut-off. The estimation
method was by ore block modelling constrained within a wireframe model
interpreted from drilling along ten sections.
Table 3: Seiga Main Zone - Inferred Resources ((A))
Cut-off (g/t) Tonnes (Mt) Au-uncut (g/t) Au-10g/t cut (g/t) Au (oz)
----------- ----------- ------------ ------------- ---------
1.0 0.8 3.0 2.5 76,000
0.7 1.1 2.3 2.0 85,000
0.5 1.5 1.7 1.6 93,000
0.4 1.9 1.6 1.4 98,000
----------- ----------- ------------ ------------- ---------
Figures in table may not tally due to rounding
The Company's Wadi Allaqi tenements, of which Seiga is a part, are the subject
of a 50:50 joint venture with the Egyptian Mineral Resources Authority.
The area included in the resource estimation comprises only a small part of the
mineralised shear system. As drilling progresses, additional resources are
expected to be defined below the current resources and also in close proximity
to the Seiga main zone, along the Seiga south zone and in the two eastern zones.
Drilling within the Seiga south zone mineralisation located to the southeast
which is at least 800m long and contains some previously reported intersections
that include 28m at 1.14g/t Au in CRC040, 22m at 1.74g/t Au in CRC041 and 12m at
1.18g/t Au in CRC069.
A further two mineralised zones have been identified by rock-chip sampling and
limited drilling located to the east.
The Director's are encouraged by the results of the resource estimation as they
show that the prospect has the potential for significant tonnages at mineable
grades.
Drilling is proposed to test the Seiga main zone at depth as this has the
potential to significantly increase the resources.
SHASHOBA
Seventeen RC drill holes were completed at the Shashoba prospect totalling 738m.
The drilling followed-up some previous drilling around historical workings, a
new area of minor workings in the north and a geochemical anomaly in the south.
The assay results are still outstanding.
GARAYAT
A programme of RC drilling to test the historical workings at the Garayat gold
mine was commenced during the quarter. A total of eight holes totalling 576m
were completed prior to the Christmas break with a further 15 holes to be
completed during January.
INTERNATIONAL EXPOSURE & INTEREST
During January 2007 the Company made a presentation regarding both Abu Dabbab
and Wadi Allaqi at the MineSite www.minesite.com conference in London which
generated considerable interest in the Company.
The Company will make a similar presentation at the INDABA conference being held
in Cape Town South Africa 6 - 8 February 2007. Gippsland will occupy display
booth no. 910.0 at Indaba www.iiconf.com.
Because of the high level of European interest in the Abu Dabbab project,
investor meetings and presentations will be held in Paris on 21 February, in
Geneva on 22 February and in Paris on 23 February 2007.
NEW HEAD OFFICE LOCATION
To cater for Gippsland's expanding operations, the Company has relocated its
Australian head office as follows:
Head Office:
207 Stirling Highway
Claremont WA 6010
Australia.
Postal Address:
PO Box 352
Nedlands WA 6909
Australia
T: +61 (0)8 9340 6000
F: +61 (0)8 9340 6060
E: info@gippslandltd.com
W: www.gippslandltd.com
RJ (Jack) Telford
Executive Chairman
For further information please contact:
Jack Telford
Gippsland Limited
www.gippslandltd.com
Tel: +61 (0)8 9340 6000
jtelford@gippslandltd.com
Laurence Read / Ed Portman
Conduit PR
Tel: +44 (0)20 7429 6605 / 6607
laurence@conduitpr.com
ed@conduitpr.com
Les Polden / Luke Cairns
Hoodless Brennan Plc
Tel: +44 (0)20 7538 1166
L.Polden@HBcorporate.com
L.Cairns@HBcorporate.com
Fiona Owen
Grant Thornton Corporate Finance
Tel: +44 (0)20 7383 5100
Note: In accordance with Listing Rule 5.6 of the Australian Stock Exchange
Limited and Part 2 of the AIM Guidance Notes for Mining, Oil and Gas Companies,
the geological information in this report that relates to Exploration Results,
Mineral Resources and Ore Reserves is based on data compiled by Dr John
Chisholm, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr
Chisholm who is an Executive Director of Gippsland Limited with over 25 years
experience in the mineral industry including the evaluation of exploration data,
mineral resources and ore reserves, has consented to the issue of the
information in this report in the form and context in which it appears.
APPENDIX 1
Hole Prospect Easting Northing RL Az Dip Depth (m)
-------- --------- -------- -------- -------- ------- ------ ---------
CRC046 Seiga 616166 2493837 500 60 -56 60
CRC047 Seiga 616246 2493860 500 60 -54 30
CRC048 Seiga 616262 2493869 500 60 -55 30
CRC049 Seiga 616280 2493872 500 60 -60 30
CRC050 Seiga 616287 2493881 500 60 -57 30
CRC051 Seiga 616310 2493888 500 60 -60 30
CRC052 Seiga 616328 2493892 500 60 -60 30
CRC053 Seiga 616336 2493900 500 60 -58 30
CRC054 Seiga 616352 2493903 500 65 -59 30
CRC055 Seiga 616373 2493897 500 60 -58 30
CRC056 Seiga 616075 2494146 500 255 -55 99
CRC057 Seiga 615982 2494223 500 235 -55 57
CRC058 Seiga 615946 2494185 500 60 -57 99
CRC059 Seiga 615929 2494269 500 240 -62 42
CRC060 Seiga 615923 2494235 500 60 -61 60
CRC061 Seiga 615789 2494430 500 60 -60 30
CRC062 Seiga 615801 2494438 500 60 -60 30
CRC063 Seiga 615826 2494447 500 60 -60 30
CRC064 Seiga 615824 2494424 500 60 -60 30
CRC065 Seiga 616115 2493964 500 60 -60 60
CRC066 Seiga 616093 2493946 500 60 -60 60
CRC067 Seiga 616139 2493880 500 60 -60 60
CRC068 Seiga 616222 2493859 500 60 -60 60
CRC069 Seiga 616330 2493639 500 60 -60 60
CRC070 Seiga 616415 2493593 500 240 -61 51
CRC071 Seiga 616500 2493464 500 60 -60 30
CRC072 Seiga 616427 2493424 500 65 -60 30
CRC073 Seiga 616450 2493434 500 65 -60 30
CRC074 Seiga 616466 2493442 500 65 -60 30
CRC075 Seiga 616483 2493451 500 65 -60 30
CRC076 Seiga 616553 2493235 500 60 -60 30
CRC077 Seiga 616573 2493244 500 60 -60 30
CRC078 Seiga 616588 2493251 500 60 -60 30
CRC079 Seiga 616611 2493259 500 60 -60 30
CRC080 Seiga 616623 2493268 500 60 -60 30
CRC081 Seiga 616640 2493273 500 60 -60 21
CRC082 Seiga 616956 2492846 500 60 -60 21
CRC083 Seiga 616974 2492853 500 60 -60 21
CRC084 Seiga 616993 2492863 500 60 -60 21
CRC085 Seiga 617010 2492871 500 60 -60 21
CRC086 Seiga 617025 2492878 500 60 -60 21
CRC087 Seiga 617046 2492887 500 60 -60 21
CRC088 Seiga 617063 2492897 500 60 -60 21
CRC089 Seiga 615576 2494739 500 60 -60 21
CRC090 Seiga 615563 2494732 500 60 -60 30
CRC091 Seiga 615629 2494650 500 60 -60 30
CRC092 Seiga 615659 2494667 500 60 -60 18
CRC093 Seiga 615684 2494676 500 60 -60 15
CRC094 Seiga 615708 2494639 500 60 -60 15
CRC095 Seiga 615737 2494509 500 65 -60 21
CRC096 Seiga 615773 2494527 500 60 -60 21
CRC097 Seiga 615809 2494548 500 60 -60 21
CRC098 Seiga 615842 2494573 500 60 -60 15
CRC099 Seiga 615829 2494347 500 60 -60 39
CRC100 Seiga 615853 2494359 500 65 -60 39
CRC101 Seiga 615868 2494366 500 60 -60 39
CRC102 Seiga 615871 2494310 500 60 -60 90
CRC103 Seiga 615944 2494259 500 60 -60 60
GRC013 Garayat 538586 2496524 500 90 -60 90
GRC014 Garayat 538606 2496404 500 80 -60 81
GRC015 Garayat 538648 2496333 500 80 -60 90
GRC016 Garayat 538661 2496243 500 75 -60 66
GRC017 Garayat 538613 2496524 500 90 -60 60
GRC018 Garayat 538558 2496522 500 90 -60 60
GRC019 Garayat 538657 2496105 500 80 -60 69
GRC020 Garayat 538728 2496059 500 235 -60 60
SRC041 Shashoba 621990 2491338 500 245 -60 30
SRC042 Shashoba 621888 2491304 500 240 -60 39
SRC043 Shashoba 621873 2491294 500 240 -60 39
SRC044 Shashoba 621942 2491131 500 235 -60 39
SRC045 Shashoba 621928 2491122 500 235 -60 39
SRC046 Shashoba 621910 2491105 500 235 -60 39
SRC047 Shashoba 621899 2491092 500 230 -60 39
SRC048 Shashoba 621849 2491401 500 55 -60 60
SRC049 Shashoba 621874 2491427 500 55 -60 60
SRC050 Shashoba 621869 2491471 500 80 -60 81
SRC051 Shashoba 621635 2491507 500 260 -60 39
SRC052 Shashoba 621608 2491510 500 265 -60 39
SRC053 Shashoba 621590 2491506 500 265 -60 39
SRC054 Shashoba 621617 2491619 500 265 -60 39
SRC055 Shashoba 621599 2491616 500 265 -60 39
SRC056 Shashoba 621582 2491610 500 265 -60 39
SRC057 Shashoba 621560 2491610 500 265 -60 39
--------------------------
(A) Resource estimation methodology and classification is consistent, unless
specifically stated to the contrary, with the Australasian Code for Reporting of
Exploration Results, Identified Mineral Resources and Ore Reserves and included
Guidelines to the Reporting of Identified Mineral Resources and Ore Reserves
(Code) as per the Joint Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and the Australian Mining
Industry Council (JORC) and dated December, 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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