Quarterly Activities Report
October 31 2007 - 8:50AM
UK Regulatory
RNS Number:7202G
Gippsland Limited
31 October 2007
31 October 2007
Gippsland Limited ("Gippsland" or the "Company")
QUARTERLY ACTIVITIES REPORT
Period: July - September 2007
Release date: 31 October 2007
To view geological graphics associated with this announcement, go to
the Announcements link at www.gippslandltd.com
HIGHLIGHTS
* ABU DABBAB TANTALUM-TIN PROJECT
- Significant progress in project finance negotiations
- Construction of site access to initial mining benches
- Reserves upgrade drilling programme
Acquisition of satellite data for mine grid survey
* WADI ALLAQI EXPLORATION - COPPER-NICKEL
- Completion of TEM survey
- Abu Swayel initial drilling programme completed
- Copper and Nickel mineralisation intersected
+ Commencement of share trading on UK PLUS Markets
ABU DABBAB
Project Finance
During the quarter Gippsland has made sound commercial progress toward securing
project finance for the Abu Dabbab project. The Company has received strong
interest from both German and United Kingdom based banks.
Minesite access
During the quarter, work was undertaken to widen dirt access roads leading
directly to the Abu Dabbab mining benches, utilising in part existing tracks
constructed during the Soviet exploration period. The Soviet tracks were
cleared, refurbished and continued around to the adits on the south side of the
deposit. This work is preliminary to the preparation of the initial mining
benches at the 455 level.
Tantalum Reserve Up-grade Drilling
The Company determined that the Abu Dabbab reserves could be increased
significantly by undertaking a relatively small drilling programme.
Accordingly, during the quarter, site preparation was completed for a 2,190m
nine hole combined RC and diamond drilling programme. The drilling campaign
will test the areas between the existing holes giving a greater density of drill
intersections. Large drill pads were constructed so that multiple holes could
be drilled from the same location as the rugged topography precluded the
construction of the drill pads on a regular spacing along the section lines.
The cost effective RC-diamond drilling combination has been designed to upgrade
existing inferred resources to the indicated category, with the potential for an
additional 5.4Mt to be converted to reserve status. Given that the distribution
of the mineralisation is reasonably homogenous and that the inferred resources
were included in the pit design study, it is anticipated that Gippsland will be
able to increase the Abu Dabbab reserves to in excess of 20Mt. This will
provide a further boost for project financiers with increased confidence in the
project.
Drilling commenced on the 15 October and is expected to be completed during
November. The holes will be drilled by RC to the limit of the drilling rig
which is approximately 180m, and will then be finished with diamond tails to the
programmed depth.
Table SEQ Table /* ARABIC 1: Summary of proposed Abu Dabbab drill holes
----------------------------------------------------------------------------------------------------------------
Hole RL E-local N-local E-WGS N-WGS Az Dip Depth RC Diam
----------------------------------------------------------------------------------------------------------------
Prop01 411 1020 1358 655429 2804133 188 -75 240 180 60
Prop01b 411 1020 1358 655429 2804133 188 -65 250 180 70
Prop01c 411 1020 1358 655429 2804133 188 -60 250 180 70
Prop02 426 835 1197 655277 2803954 30 -75 270 180 90
Prop02b 426 835 1197 655277 2803954 20 -55 300 180 120
Prop03 401 1067 1266 655340 2804177 200 -75 250 180 70
Prop03b 401 1067 1266 655340 2804177 200 -60 250 180 70
Prop04 355 970 1079 655162 2804082 65 -65 180 180 0
Prop04b 355 970 1079 655162 2804082 30 -60 200 180 20
----------------------------------------------------------------------------------------------------------------
Totals (m) 2190 1620 570
----------------------------------------------------------------------------------------------------------------
A plan of the proposed holes is presented as figure 4 on which the RC part of
the hole is shown in green and the diamond tail in red.
Mine Survey Grid
Gippsland has purchased Quickbird pan-chromatic and multi-spectral satellite
imagery over the immediate mine lease area to provide ground control for the
mine survey grid. Twenty-three points were identified from the Quickbird image
and located on the ground where surveyors will establish permanent survey
control points.
Ikonos satellite imagery has been ordered to cover a 125km2 belt from the Abu
Dabbab mine license to the Red Sea coast. The Ikonos satellite will be
specifically manoeuvred to the location as dual scanners have to be used to
obtain the stereo data necessary for the generation of the 3D contours.
Topographic contours to an accuracy of 2m can be generated from the
stereoscopically acquired data. This will be able to be used for the mine and
plant construction.
WADI ALLAQI
Access and Site Preparation
During the quarter drilling operations were largely restricted due to the
failure of a drill rig compressor. Gippsland used the down time to continue
work on road construction to the Seiga and Shashoba prospects via Wadi Haimur.
The completed road significantly reduces the time taken to get from the sealed
road at Wadi Haimur to Seiga from 5-6 hours to 1.5 hours. The new road is also
suitable for the transportation of heavy exploration vehicles and equipment.
Drill pads have also been prepared at Seiga and Shashoba in readiness for the
next drilling campaign.
Seiga - Regional Exploration
Regional geological mapping in the Seiga and Shashoba regions has located
extensions to the shear zones that host the Seiga and Shashoba gold
mineralisation. Field work during the quarter also located previously unknown
gold occurrences.
Abu Swayel - Copper, Nickel
During the quarter a programme of thirteen holes totalling 776m of RC drilling
was completed at the Abu Swayel copper-nickel prospect. The drilling targeted a
transient electromagnetic (TEM) conductor which was delineated by a TEM survey
completed during August. The relatively low amplitude conductor was modelled as
having a westerly dip, which was contrary to the easterly dip of the
mineralisation in the ancient workings located 100m to the southeast. Thick
wadi sands and conglomeratic sands made collaring the holes very difficult, thus
requiring excavations to sufficient depths where more consolidated sediments
were encountered. Two holes were drilled through the projected position of the
conductor with only minor sulphides (2-3% pyrite) noted in the drill chips.
Table 2: Abu Swayel drill hole locations
-----------------------------------------------------------------------------------------------------------
Hole E-WGS84 N-WGS84 Depth (m) Azimuth Dip
-----------------------------------------------------------------------------------------------------------
ASRC001 565653.000 2519068.000 60.00 220.0 -60.0
ASRC002 565604.000 2519135.000 74.00 220.0 -60.0
ASRC003 565408.000 2519182.000 84.00 40.0 -60.0
ASRC004 565548.000 2519130.000 54.00 220.0 -60.0
ASRC005 565578.000 2519111.000 51.00 220.0 -60.0
ASRC006 565511.000 2519148.000 51.00 220.0 -60.0
ASRC007 565530.000 2519171.000 60.00 220.0 -60.0
ASRC008 565575.000 2519168.000 72.00 220.0 -60.0
ASRC009 565525.000 2519122.000 57.00 200.0 -60.0
ASRC010 565488.000 2519153.000 81.00 0.0 -60.0
ASRC011 565487.000 2519159.000 45.00 220.0 -60.0
ASRC012 565475.000 2519147.000 36.00 220.0 -60.0
ASRC013 565608.000 2519064.000 51.00 200.0 -60.0
-----------------------------------------------------------------------------------------------------------
More encouraging results were obtained from the drilling closer to and beneath
the ancient workings. Four metres of massive sulphide containing visible
chalcopyrite (copper sulphide) were intersected in hole ASRC004. Ten metres of
copper mineralisation comprising oxide and sulphide minerals was intersected
beneath the old workings in hole AS009. Copper mineralisation was also
intersected in holes ASRC011 and 013.
The samples are currently being assayed by Genalysis Laboratory in Perth.
SHARE TRADING ON UK PLUS MARKETS
On 4 September 2007, Gippsland shares commenced trading on the United Kingdom
Plus Markets, trading under the symbol "GIP". Plus Markets is an independent
London-based equity market service, provided by Plus Markets Group PLC, which
was recently approved as a Recognised Investment Exchange.
Plus Markets is based on a quote-driven trading system and currently trades more
than 1,000 small and mid-cap company shares, representing a combined market
capitalisation of approximately UK #200 billion (A$490 billion).
The Directors considered that trading on Plus Markets would benefit all
Gippsland shareholders, through enhancing investor choice, improving liquidity
and providing greater access to the investment market. Gippsland's projects and
markets are well understood by European investors, and the admission to Plus
Markets provides another avenue for these investors to share in the Company's
development.
Gippsland ordinary shares will continue to be quoted and traded on the
Australian Stock Exchange and the London Stock Exchange AIM under the symbol
"GIP".
ELECTRONIC ANNUAL REPORTS
During the quarter shareholders were provided with the option of receiving
either electronic or hard copies of the Company's Annual Reports. As a result
of the survey the vast majority of shareholders elected to receive electronic
copies of this document. This will have a most favourable effect on the cost of
printing and mailing the Annual Reports which are posted on the Company's
website.
RJ (Jack) Telford
Executive Chairman
For further information please contact:
Jack Telford Gippsland Limited T: +61 (0)8 9340 6000
Luke Cairns Hoodless Brennan Plc T: +44 (0)20 7538 1166
Les Polden Hoodless Brennan Plc T: +44 (0)20 7538 1166
Fiona Owen Grant Thornton Corporate Finance T: +44 (0)20 7383 5100
Jane Stacey Conduit PR T: +44 (0)20 7429 6606
Ed Portman Conduit PR M: +44 (0)20 7429 6607
Warrick Hazeldine Purple Communications T: +61 (0)8 9485 1254
M: +61 (0)417 944 616
About Gippsland Limited
Gippsland Limited is an Australian-based international resource company. It is
listed on the Australian Stock Exchange (ASX) and the London Stock Exchange's
Alternative Investment Market (AIM).
The Company's prime assets are tantalum-tin projects in the Central Eastern
Desert of Egypt adjacent to the western shore of the Red Sea. These projects
include the 40 million tonne Abu Dabbab and the 98 million tonne Nuweibi.
Gippsland focuses on world-scale projects which have undergone detailed
exploration and which have the potential to be brought into production quickly.
Gippsland's success in this area is due in part to the Company's philosophy of
entering into equitable joint ventures.
About Tantalum
Tantalum is a refractory metal that is resistant to chemical attack, with a high
melting point, ductility and malleability. Because of the metal's resistance to
corrosion it is used in chemical plant and equipment. Its high melting point and
low thermal coefficient of expansion make it a crucial component of jet engine
turbine blades. As tantalum carbide, one of the hardest substances known to man,
it is also used for cutting tools.
The global tantalum Ta2O5 market is estimated to be in the order of 4.7 - 5.1
million pounds (approx. 2,200 tonnes) per annum for the years 2005 - 2006.
Industry commentators suggest that the market is growing at a rate of about 7%
per annum.
For further information visit: www.gippslandltd.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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