Compass drilling confirms west NSW exploration concept 15:06, Wednesday, 1 November 2006
Sydney - Wednesday - Nov 1: (RWE Australian Business News) - Compass Resources NL (ASX code: CMR) says the Cuttaburra and Yancannia exploration licences (Compass 80%, Bohuon Resources Pty Ltd 20%) were acquired to test a concept that a new base or precious metal mineral district may exist in this remote part of western NSW. The conceptual model applied by Compass interprets airborne magnetic trends, identified from regional geophysical data, as basement features related to strata-bound sulphide horizons, possibly with elevated base metals, and occurring at a shallow enough depth to allow effective exploration. As in other parts of the world, including the Cobar Basin, large base and precious metal deposits may be present along these trends associated with discrete magnetic anomalies. Following geophysical modelling, nine discrete airborne anomalies were selected for initial follow-up work, and were located in the field by geophysical surveys. A single wildcat hole was drilled into each of two widely separated anomalies. Both holes confirmed the company's exploration concept that the magnetic data reflected basement features within effective exploration range. The holes intersected a stratigraphic sequence similar to the Cobar Basin sequence at a depth of 75 metres beneath the cover rocks. Encouragingly, both holes intersected pyrite and or pyrrhotite mineralisation, the latter being the source of the magnetic anomaly tested in the Cuttaburra exploration licences. Assay results are now available for the Cuttaburra hole CBRCD01 and include significant and strongly anomalous values for a wildcat hole with up to 0.11% copper, 0.18% zinc, 0.41% tungsten and 40g/t silver. Silver in particular was anomalous over wide intervals. Assays are not currently available from the Yancannia wildcat hole but from visual inspection it appears to be less well mineralised. However, Compass says it is encouraged from a model viewpoint that this hole intersected bedded pyrite mineralisation.
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held