New resource estimate and major new drilling to commence next week.
Range River Gold Ltd
ABN 64 065 480 453
Ground Floor, 15 Queen Street Melbourne VIC 3000
telephone +61 3 8614 1500 facsimile +61 3 8614 1555
email [email protected] website www.rangeriver.com.au
24 February 2004
AUSTRALIAN STOCK EXCHANGE AND MEDIA RELEASE
NEW RESOURCE ESTIMATE AT INDEE, WA
The Company is pleased to announce a new resource estimate for its two most advanced gold
prospects, Withnell and Camel 1 following completion of 12,806 metres of resource infill
drilling at the Indee Joint Venture (Company 70%).
• The JORC-compliant resource of
3,201,000 tonnes at 2.7 g/t gold for 281,000 ounces
is comprised of
Measured category - 1,430,000 tonnes at 2.9 g/t gold for 132,000 ounces
Indicated category - 327,000 tonnes at 3.2 g/t gold for 33,000 ounces
Inferred category - 1,444,000 tonnes at 2.5 g/t gold for 116,000 ounces
• Withnell and Camel 1 represent two of the seven major prospects currently identified
along an 8 kilometre mineralised section of the Mallina Shear Zone (Figure 1).
• The latest results significantly advance the project towards the initial objective of a
mining operation containing a minimum gold reserve of 250,000 ounces.
• Importantly, the gold resource includes ounces in the measured category for the first
time and the estimated overall grade in oxide/transition material has improved to an
average 2.7 g/t Au at Withnell and 3.8 g/t Au at Camel 1.
• A major program consisting of 25,000 metres of RC drilling will commence in early
March 2004 to further evaluate the Withnell-Camel 1 resource and continue
exploration of the other resource areas within the key 8 km mineralised zone.
• Recent detailed metallurgical tests have been positive. Testing of a composite oxide
sample from 40 drill holes returned total gold extraction of 93%. Results from
sulphide samples were also encouraging with recoveries to 84%. Test work will
continue to optimise the proposed metallurgical plant design.
As reported in the December Quarter, the initial phase of resource development drilling at
Withnell and Camel 1 was completed in early November 2003.
Table 1 summarises the resource estimate prepared by the Company for the Withnell and
Camel 1 prospects after results of the infill RC drilling program and previous drilling were
compiled and interpreted.
The resource is based on a wireframe-constrained block model reported above a 0.8 g/t Au
lower cut off. A top cut of 30.0 g/t Au, based on statistical analysis was applied to samples
prior to estimation. Specific gravities used to calculate tonnage were based on gamma-gamma
downhole surveys and whole core samples. Values were determined for oxide material at 2.1,
transitional at 2.6 and fresh at 2.8 tonnes per cubic metre.
Figure 2 shows the distribution of modelled gold lodes for the Withnell deposit and resource
categories derived from the block model. Drilling has not yet adequately closed off the
mineralisation at both Withnell and Camel 1. A longitudinal section from two of the main
lodes within the Withnell deposit (Figure 3) indicates the resource remains open at depth and
along strike.
A further infill and exploration RC drilling program of 25,000 metres targeting all previously
calculated resources, including Roe, Hester, and Camel 2 (Figure 4), plus extension drilling of
the Withnell ore body is planned to begin in early March 2004. Exploration drilling is planned
at the Calvert and Toweranna prospects and also 16 kilometres west of Withnell at Mallina
where an encouraging drill intersection of 17 metres @ 3.29 g/t Au was achieved during the
previous program.
The overall aim of the next drilling program, when combined with the resources listed above,
is to achieve a minimum of 250,000 ounces of economically mineable gold reserves, together
with additional resource ounces, which will allow finalisation of a Bankable Feasibility Study
leading to a mining project at Indee. The planned major drilling program will be completed
during May. It is anticipated that all significant drilling results will be available to the market
before the end of May and a new global resource estimate will be completed during June and
July.
The information in this report that relates to Mineral Resources is based on information compiled by
Gus Bravo, a full-time employee of Range River Gold Limited and a Fellow of The Australasian
Institute of Mining and Metallurgy. The report is based on the resource model completed by Denise
Riddington, Consultant Resource Geologist who is also a Member of The Australasian Institute of
Mining and Metallurgy. Gus Bravo and Denise Riddington have sufficient experience which is relevant
to the style of mineralisation and type of deposit under consideration and to the activity undertaken to
qualify as a Competent Person as defined in the 1999 Edition of the “Australasian Code for Reporting
of Mineral Resources and Ore Reserves”. Both consent to the inclusion in the report of the matters
based on their information in the form and context in which it appears.
M R Beer
Managing Director
TABLE 1
MEASURED INDICATED INFERRED TOTAL
Material Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
Type t g/t oz t g/t oz t g/t oz t g/t oz
WITHNELL
Oxide / 827,000 2.8 74,000 136,000 3.0 13,000 160,000 2.2 11,000 1,123,000 2.7 98,000
Transition
Fresh 427,000 2.7 37,000 71,000 2.0 4,000 1,213,000 2.5 99,000 1,711,000 2.6 140,000
CAMEL 1
Oxide / 176,000 3.8 21,000 120,000 4.2 16,000 33,000 2.8 3,000 329,000 3.8 40,000
Transition
Fresh 0 0.0 0 0 0.0 0 38,000 2.1 3,000 38,000 2.1 3,000
TOTAL
Oxide / 1,003,000 3.0 95,000 256,000 3.6 29,000 193,000 2.3 14,000 1,452,000 3.0 138,000
Transition
Fresh 427,000 2.7 37,000 71,000 2.0 4,000 1,251,000 2.5 102,000 1,749,000 2.6 143,000
TOTAL 1,430,000 2.9 132,000 327,000 3.2 33,000 1,444,000 2.5 116,000 3,201,000 2.7 281,000
INDEE JOINT VENTURE
WITHNELL AND CAMEL 1 RESOURCE FEBRUARY 2004
RESOURCE CATEGORY
INDEE PROJECT
Feb 2004
LOCATION OF CURRENT INDEE GOLD RESOURCES
Figure 1
Sherlock
Quamby
Evelyn
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10Km
AMG Zone 50 (GDA94)
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Ma
llina Shear
Wohler
Shear
S
holl Shear
660000mE 640000mE 620000mE 600000mE 580000mE 560000mE 540000mE
7740000mN
7720000mN
7700000mN
7680000mN
Mafic Dyke
WHIM
CREEK
GROUP
LEGEND
Portree Granite
Peawah Granodiorite
Millindinna Intrusives
Mallina Formation
Constantine Sandstone
Cleaverville Formation
Granite and Gneiss
Fortesque Group
Opaline Well Granite
Calvert
Hester Camel 1
0.37Mt @ 3.6g/t Au
43,000oz
Camel 2
Withnell
2.8Mt @ 2.6g/t Au
238,000oz
Roe
Toweranna
New Resource Estimate / Infill RC drilling scheduled early March 2004
Resource Area - RC drilling to commence late March 2004
INDEE PROJECT
Feb 2004
WITHNELL RESOURCE
BLOCK MODEL
Figure 2
Inferred
Indicated
Measured
Resource Category (JORC)
Looking South
Other
Lode B
Lode A
Gold Mineralisation
RL
RL
INDEE PROJECT
Feb 2004
WITHNELL RESOURCE - LONGITUDINAL SECTION
LODE B
LODE A
Figure 3
624200mE
50
0
-50
-100
624000mE 623800mE 623600mE West
West
East
East
No Resource
Drilling
RL(m)
RL(m)
624400mE 624600mE 624200mE
50
0
-50
-100
624000mE
< 1.0 g/t Au
Contoured Block Grade
1.0 - 3.0 g/t Au Pierce Point of RC / DDH Drillhole
Limit of Current Resource Block Model
Base of Oxidation
Mineralisation open at depth or along strike
3.0 - 5.0 g/t Au
5.0 - 10.0 g/t Au
> 10.0 g/t Au
INDEE PROJECT
Feb 2004
MALLINA SHEAR ZONE
Resource Location and Exploration Potential
Figure 4
WEST 8
EAST kilometres
619000E
7688500N
620000E 621000E 622000E
623000E 624000E 625000E 626000E
Camel 2
Hester
Roe Camel 1
0.2- 1.0g/t
>1.0g/t
New resource estimate
RAB/Aircore drilling
RC/DD drilling
Modelled lodes
7688500N
(
(
Withnell
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Lode A
Lode B
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nice announcement this morning
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