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8 December 2004
Manager Company Announcements
Company Announcements Office
Australian Stock Exchange Limited
Level 10, 20 Bond Street
SYDNEY NSW 2000
ABN 42 082 593 235
Electronic delivery
No of pages: 5
Dear Sir,
ANNOUNCEMENT
Primary Sulphide Copper
Mineralisation Extended
at Mt Watson
Matrix Metals Limited is pleased to announce results from the seven hole primary
sulphide drilling program at the Mt Watson Prospect. The 3,000 metre diamond drilling
program was designed to provide a more detailed assessment of the primary sulphide
potential of the Prospect following the initial highly encouraging high grade drill
intercepts and the success of the MIMDAS geophysical survey.
Highlights
The program significantly extended the zone of primary sulphide mineralisation. The
zone now extends some 500 metres along strike and to a depth of 300 metres.
Intersections of significance reported include:
MWRCD03
196 m @ 0.32% Cu from 187m
incl 3.0m @ 1.00% Cu from 187m
and 28.2m @ 0.75% Cu from 197m
and 1.0m @ 8.52% Cu from 254m
and 4.3m @ 0.71% Cu from 295m
MWRCD06
144m @ 0.42% Cu from 256m
incl 7.0m @ 1.02% Cu from 256m
and 3.0m @ 1.64% Cu from 268m
and 2.0m @ 1.45% Cu from 296m
and 9.8m @ 1.19% Cu from 303m
and 11.0m @ 1.42% Cu from 325m
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MWRCD07
3.0m @ 0.91% Cu from 198m
5.0m @ 0.76% Cu from 217m
1.3m @ 1.61% Cu from 292.3m
MWRCD10 (Diamond tail on MWRC162 renamed MWRCD10)
18.0m @ 0.90% Cu from 162m (RC)
10.7m @ 0.68% Cu from 183.3m (Diamond)
8.0m @ 0.62% Cu from 197.0m (Diamond)
Previous primary sulphide intercepts reported at Mt Watson prior to this specifically
targeted program include:
MWRC 130
37.3m @ 2.18% Cu from 163.0m
incl 20.0m @ 3.03% Cu from 163.0m,
incl 8.0m @ 4.89% Cu from 175.0m.
MWRCD 01
15.4m @ 0.96% Cu from 198.7m
incl 5.1m @ 1.45% Cu from 199.4m,
4.5m @ 1.05% Cu from 220.5m,
1.0m @ 0.79 % Cu from 235.0m,
1.2m @ 2.38 % Cu from 239.2m,
and 0.6m @ 2.49 % Cu from 252.5m.
MWRC 165
29.0m @ 1.39% Cu from 152.0m
incl 9.0m @ 2.31% Cu from 168.0m,
incl 3.0m @ 3.88% Cu from 170.0m.
MWRC 162
18.0m @ 0.90% Cu from 162.0m.
Interpretation of the Drilling Results
The drilling targeted a strong conductor defined by the MIMDAS geophysical survey in
the vicinity of the previous primary sulphide intersections. The conductor is hosted by
the lower Prd member of the Surprise Creek Formation. The drilling also tested a
separate anomaly in the upper Prb member of the same Surprise Creek Formation.
Significant sulphide copper mineralisation was intersected in both members of the
Formation, as well as in the intervening Prc member.
Significantly, as well as the higher grade intervals, widespread lower grade
mineralisation was reported in a number drill holes. Drill hole, MWRCD03, reported
visible chalcopyrite copper mineralisation, assaying at 196m @ 0.32% Cu
(approximate true width of 180m), commencing at 187m down hole, with the
mineralisation continuing as intermittent veins and disseminations to a down hole
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depth of 383m. Drill hole MWRCD06 reported a similar wide mineralised intersection
of 144m @ 0.42% Cu from 256m (approximate true width of 137m).
Based on these new results, the Company is now further encouraged by the wide and
consistently mineralised intercepts, albeit low grade, in regard to the potential for the
discovery of a major primary sulphide copper resource at Mt Watson.
Details of the Geology
The oxide and primary sulphide copper mineralisation at Mt Watson is present in three
units of the Surprise Creek Formation, namely the Prd siltstone, which hosts most of the
oxide and sulphide mineralisation reported to date, the underlying Prc sandstone and
underlying that the Prb siltstone. The mineralisation in the Prb is of interest as it is far
more widespread (as disseminated chalcopyrite) than the previously known
mineralisation from this unit, previously reported as the Southern Zone mineralisation.
This mineralisation has no representation at surface, nor is it evident in the shallower
RC drill holes that penetrated into the Prb siltstone beyond the Southern area
mineralisation.
These results continue to suggest that a significant mineralised copper system may be
found at depth under the Mt Watson oxide resource. To date only 500m of strike length
out of the oxide resource strike length of 1.5Km has been drill tested and at this stage
only to a vertical depth of approximately 300m below surface.
Full intersection details for the drill holes are presented in Table 1, with the drill-hole
location detailed in Table 2.
Follow-up Drill Program Following Wet Season
Based on the initial high grade drill intercepts, now supported by the success of this
deep diamond drilling program, a full interpretative review of the results, incorporating
the recently completed detailed surface mapping program over the entire Mt Watson
mineralised zone, will be completed over the wet season.
Following from the interpretive review, it is expected a follow up diamond drilling
program to further assess and potentially commence quantification of the Mt Watson
primary sulphide mineralised zone, will occur.
Yours Faithfully
Andrew Chapman
Chief Executive Officer
The information in this report that relates to Mineral Resources and Ore Reserves is based on
information compiled by Mr Bob Dennis. Mr Bob Dennis is a Member of the Australasian Institute of
Mining and Metallurgy and a full-time employee of the Company. Mr Dennis has sufficient experience
which is relevant to the style of mineralisation and the type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 1999 edition of the
“Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Dennis, consents to the
inclusion in the report of the matters based on information in the form and context in which it appears.