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Ord River Resources to commence drilling at Suplejack Gold Project in July


Ord River Resources (ASX: ORD) will commence a drilling program at its 100% owned Suplejack Gold Project in the Northern Territory targeting a significant increase in its gold resource from the current 55,000 ounces.

Drilling will kick off in July 2011 and continue throughout 2011 in the existing resource area which contains new priority targets. The company?s geological team will depart for Suplejack on 10 May.

The existing JORC Resource is located in a well established major gold region. Tanami Gold (ASX: TAM) has produced in excess of 85 tonnes of gold and has an in-situ gold resource inventory exceeding 166 tonnes.

Suplejack is located 30 km north of Tanami?s operating Groundrush Gold Mine and 10km North of ABM Resources? (ASX: ABU) Hyperion Gold Project.

A detailed airborne magnetic survey in late 2010 provided encouraging analysis and highlighted additional gold prospective zones.

Importantly, there is easy access to essential infrastructure and proximity to gold processing facilities.

Ongoing work at Suplejack will proceed in four stages.

Stage one will consist of a final geological mapping study and the location of drill holes in May-June.

Ord?s geological team will cover the existing resource area in Tregony (55,000 ounces) and priority targets in the western half of the tenement encompassing PhD North, PhD and Five Mile.

The linear belt, which is in excess of 8 kilometres and encompasses the Five Mile Bore, PhD, and PhD North prospects, has significant potential to host gold resources.

In stage two rotary air blast (RAB) and aircore drilling in the priority target zones is planned for July. The company expects to cover roughly 20% of the western half of the tenement.

The drilling will provide an understanding of gold occurrences in the target zones and enable the company to identify with precision locations for follow-on resource expansion focused drilling.

In stage three the Resource expansion drilling will follow. The Tregony Prospect will be targeted with deeper RC drilling for depth extensions of the known gold mineralization. This will be used to expand the Resource.

Additionally a short program of ?step-out? RC drilling will be conducted in an area adjacent to the known mineralisation where barren alluvial cover may have obscured gold bearing structures.

The area towards the west of Tregony has significant potential to host further resources.

Following Tregony, the company will move the drilling team to the western half of the tenement to conduct RC drilling in the priority target zones. By then RAB/Aircore drilling will have been completed and analysed.

In stage four the company intends to conduct further drilling and will spend most of the entire second half of 2011 doing drilling and resource expansion work.

Ord aims to maximise drilling efforts in 2011?s dry season. The proposed 3 stages will cover only a portion of the tenement. Additional drilling in other parts of the tenement should provide potential for further resource expansion.

Ord said it is now in the final stages of negotiations with drilling companies.

On May 3 Ord River and China Non-Ferrous Metal Industry?s Foreign Engineering & Construction Co. Ltd (NFC) announced that they are looking to IPO their Lao Bauxite/Alumina Project, which could rank it second to Alumina Ltd (ASX: AWC) in size in Australia.

The potential equity raising involved could be as high as $180-200 million via an initial public offering on the ASX timed for the end of 2011 to early 2012.

The news caused Ord?s share price to jump 81% to $0.105. Ord River is currently trading at 0.079 per share.