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Sydney - Tuesday - October 10: (RWE Aust Business News)
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OVERVIEW
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Investors who were lucky enough to pick up a parcel of Shannon
Resources Ltd (ASX:SHA) must have picked up a four leaf clover as well.
The company listed in July after a heavily oversubscribed IPO
and
issued shares at 20c each, which yesterday peaked at 92c.
What has it got that other gold explorers have not.
The answer came yesterday when the company announced "more
exceptional results at the Brilliant prospect including 44m at 2.24g/t
gold".
It reported that at the Brilliant Prospect, two north-south
trending sub vertical dolerite units have been identified with thick
zones of gold mineralisation in the supergene and primary zones and are
also host to a significant enrichment of nickel and cobalt.
Pretty hot stuff, eh.
The contiguous drill holes previously reported on the Eastern
Line from north to south were SRRC29 - SRRC32 suggesting that the
exceptional gold mineralised thicknesses continues.
SRRC29 54 metres @ 2.88g/t including 6 metres @ 9.85g/t
SRRC30 52 metres @ 5.44g/t including 7 metres @ 25.14g/t
SRRC31 29 metres @ 5.28g/t including 3 metres @ 30.63g/t.
Further RC drilling along the eastern zone of a north-south
trending sub-vertical dolerite rock unit within basalt ultramafic rock
sequence hosts the gold in shallow dipping quartz sulphide shoots.
Plunging to the north, the structure is open to the north and
south with oxidisation occurring to a depth of approximately 50 metres.
High nickel and cobalt values have been seen in four-metre
composite samples and one metre intersections are being tested by a
four-acid digest.

SHARE PRICE MOVEMENTS
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Shares of Shannon yesterday settled 7c higher at 82c. Rolling
high for the year has been 92c and low 30c. The company has 13 million
shares issued at 20c each with a market cap worth $10.6 million.
In September Shannon started drilling at the Brilliant Prospect,
located on the interpreted Town Dam shear system 500 metres west of the
Scottish Lass mine workings.
Drilling angled holes to the south on a 20 metre-north-south
grid has produced exceptional gold intersections likely to develop
quickly into a producing gold mine.
Two north-south trending sub-vertical dolerite rock units within
a basalt ultramafic rock sequence hosts the gold in shallow dipping
quartz-sulphide shoots plunging to the north.
Thick zones of gold mineralisation of up to 50 metres have been
identified on an eastern line with similar geology and grades occurring
on a western line.
The two lines of the gold mineralisation are approximately 120
metres apart and the structures are still open to the north and south.
The rock sequence is deeply weathered and evidence of oxidation
occurs to a depth of 80 metres in places above a highly gold mineralised
primary zone.
Strong gold intersections in the oxidised zones occur on both
the eastern and western line.

BACKGROUND
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Shannon Resources is a mining and exploration company operating
in the eastern goldfields of Western Australia.
Its shares began trading on July 17, and on the same day the
company completed the acquisition of tenements from Western Resources
Pty
Ltd and allotted 1.5 million fully paid ordinary shares and 750,000
options exercisable at 20c on or before December 31, 2008 to Western
Resources.
In addition, on July 13, the company completed the acquisition
of
tenements from Noble Pacific Ltd and allotted 400,000 fully paid
ordinary shares and 200,000 options exercisable at 20c on or before
December 31, 2008 to Noble Pacific.
The company also completed the acquisition of tenements from
Adelaide Prospecting Pty Ltd and Bushwin Pty Ltd and allotted 100,000
fully paid ordinary shares and 50,000 options exercisable at 20c on or
before December 31, 2008 to Adelaide Prospecting and Bushwin.
The company has a adopted a number of encouraging names.
Apart from Brilliant it has Discovery Hill, 14 holes gave
intercepts greater than 0.5g/t Au with best being 4m at 3.48g/t and 2m
at 4.12g/t Au; the Success North target, six drill holes with results of
intercepts greater than 0.5 g/t Au, best being 16m at 1 g/t Au. South at
the Success target, three holes returned best at 1m at 27.5 g/t Au.
At the Zandor target, best intercept was 4m at 5.58 g/t Au with
four holes greater than 0.5g/t intercepts; Six Mile target has six holes
with best result being 5m at 3.31g/t Au.
South at Five Mile target, best result was 4m @10.8g/t Au from
27
holes returned greater than 0.5g/t intercepts; Halfway Hill target to
the
south has 12 holes with greater than 0.5g/t Au with best result being
2.25 g/t Au; At Scottish Lass, target to the east has seven ho