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29 September 2008
FRIEDA RIVER COPPER EXPLORATION BUDGET INCREASED
Frieda River JV partners have increased the 2008 Drilling Program Budget from US$25m to US$30.9m
Highlands Pacific (ASX: HIG) is pleased to announce that Xstrata Frieda River Limited, a wholly owned subsidiary of Xstrata Copper and the manager of the Frieda River project in PNG, has increased the 2008 Program budget from US$25m to US$30.9m.
The increased budget will allow the current extended scoping study to be completed by December 2008 and a decision made on progressing to pre-feasibility in 2009.
The principle activities in the extended scoping study include:
• resource in-fill drilling, with seven diamond drills operating before year end;
• metallurgical test work;
• environmental base line studies; and
• infrastructure studies.
Highlands is additionally reporting today further excellent results from recent drilling in the Horse/Ivaal/Trukai resource with significant intersections at a 0.2% Cu lower cutoff including:
264 metres @ 0.67% Cu and 0.67 g/t gold from 4m below the surface
108 metres @ 0.64% Cu and 0.44 g/t gold from 12 metres below the surface
281 metres @ 0.63% Cu and 0.31 g/t gold from 36 metres below the surface
“This is very encouraging for the project, and combined with these further positive drill hole results, it can only increase the confidence in the project for all the stakeholders” said John Gooding, Managing Director of Highlands Pacific Limited. “With the copper prices buoyant and expected to remain so, we are very confident that the project will progress forward in 2009 and that the level of activity at the project will be significantly increased on the 2008 Program” stated Mr Gooding.
“The Frieda River Copper Gold project is one of the largest undeveloped copper and gold porphyry systems in the world” said Mr Gooding, “and Highlands is fortunate to have a free carried interest to feasibility study completion in partnership with Xstrata Copper and OMRD.”
The results from the latest round of holes from the diamond drilling program are a continuation of the announcement on 5 August and are part of an infill drilling program at the Horse/Ivaal/Trukai copper gold porphyry deposit. The aim of the current program is to lift the resource estimation confidence so that the bulk of the resource is in the JORC Indicated category or better by late 2009.
These holes are all within the known extent of the Horse/Ivaal/Trukai deposit and the results continue to demonstrate the world-class nature of this copper gold porphyry system.
The tabulated results below show intercepts at a 0.2% Cu cut-off and higher grade portions at 0.5% cut-off. Maximum internal dilution in the zones quoted below is 6m.
Drilling production to the end of August totalled 9,498m with 20,000m planned in 2008.
The Frieda River project is a joint venture between Highlands Pacific, Xstrata Copper (operating partner) and OMRD. Highlands Pacific has a 16.6% stake in the joint venture with a free carried interest to the completion of the bankable feasibility study due in January 2012.