korab ipo to list 23rd august n.t. u and gold

korab ipo to list 23rd august n.t. u and gold ready for production
says Ready to drill u targets identified at Batchelor (NT),
advanced u tenament in n.t. rum jungle
read below code:kor

INVESTMENT HIGHLIGHTS


Early focus on uranium and gold anomalies at Batchelor and Melrose.
Established gold resource at Melrose - 306,000 ounce resource in Western Australia. The resource is open at depth and includes higher grade near-surface supergene resource
Early development potential for Melrose gold resource with close proximity of resource to existing processing infrastructure at Bronzewing (40 km) and Darlot (60 km)
Portfolio of advanced exploration projects in Western Australia and the Northern Territory with potential for polymetallic mineralisation including gold, copper, uranium, zinc and magnesium (established resource of 16 million tones magnesium oxide).
Ready to drill targets identified at Batchelor (NT), Melrose (WA) and Mt. Elephant (WA) projects.
Management experienced in sourcing, evaluation and development of resources projects.




COMPANY PROFILE

Korab Resources was formed in 1998 to explore tenements near Darlot mine (between Leinster and Leonora). The company presently has 5 projects in various stages of development in WA and the NT. Projects cover an area of over 1000 square kilometres.

The most advanced project - from the development perspective - is the Melrose gold project, containing 300,000 oz gold resource and provides the Company with potential opportunity to become a gold producer in the short term. The resource is open at depth and includes a near surface supergene zone which could be developed by open cut and processed at Bronzewing (40 km distance by road) or Darlot (60 km distance by road) with substantial savings on infrastructure costs. This supergene zone is currently the main focus of Korab’s operations at Melrose where the Company plans to evaluate various development options for either the whole of the deposit or for the area extending from the surface down to around 70 m. The most recent drilling program, conducted during 2004/2005, included 56m at 3.6 g/tone gold from 49 meters. Within the greater Melrose project area, a number of attractive structural and geochemical anomalies have already been delineated and it is planned to drill test these as well, over the coming year. Furthermore, Melrose has a wide extent of surficial gold anomalism over a 25 km strike.

Parallel with reviewing various development options for Melrose, Korab will focus on the uranium, gold, and base metals project at Batchelor in the Northern Territory. Batchelor is located next to the no longer operating Rum Jungle uranium mine. The mine was operating from 1954 to 1971 and produced 3530 tones of uranium oxide from 863,000 tones of ore grading 0.27-0.43% U3O8. The Batchelor project area also includes the Sundance Gold Mine, a relatively recent small but high grade (mined grade of 10.7 g/t) open-cut operation.

At Batchelor there is an established resource of 16 million tones of magnesium oxide, which has been moved to feasibility study stage. The project also has several advanced uranium, gold, coper, zinc and cobalt targets. The Batchelor tenements also host some 8 kilometres of under-explored contact zone that is a preferred host for mineralisation in the area. The immediate focus of Korab’s operations at Batchelor will be the drill testing of a number of uranium and gold targets.

Also in the Korab portfolio are the Mt. Elephant copper/gold project near Paraburdoo and a gold/base metals project at Throssell (north of Kalgoorlie). The Mt. Elephant is in earlier stages of exploration than either Melrose or Bachelor but the Directors are encouraged by the success of early drilling and rock-chip sampling which has produced results up to 29g/tone gold and 10.1% copper.

Korab’s early focus will be to evaluate development options for the Melrose gold deposit and to drill test the uranium and gold targets at Batchelor. The Company will have a full calendar for the next 3 years with 5 projects in the pipeline and a busy exploration program.

By having projects such as Melrose, Darlot East, Batchelor and Mt. Elephant with advanced targets ready for drill testing, Korab is well positioned to enhance shareholder wealth in the short to medium term.