A good day today for MOD on the market, and Sam's Creek results should build on this strength. An article from Mineweb:
http://www.mineweb.com/mineweb/view/mineweb/en/page103118?oid=144467&sn=Detail&pid=103118
MOD awaits assays from first Sams Creek drill holes
MOD Resources detailed the active search programme it is carrying out on New Zealand's largest undeveloped gold prospect - Sams Creek - in its latest quarterly report, released yesterday.
Author: Ross Louthean
Posted: Tuesday , 31 Jan 2012
PERTH -
The quarterly report released yesterday by MOD Resources Ltd (ASX: MOD) illustrates the active search programme it is carrying out on New Zealand's largest undeveloped gold prospect - Sams Creek - in the North West Nelson region of the South Island.
The company also detailed positive drill results from its 100% owned copper-silver project in the Botswana sector of the Kalahari Copper Belt.
A 2,000 metre diamond drilling programme to verify mineralisation picked up at Sams Creek by OceanaGold Corporation (ASX, NZX & TSX: OGC) a decade ago is now half complete and assay results from the first four holes are pending. The last drilling at Sams Creek took place in 2004.
MOD is earning up to 80% in Sams Creek Gold Project from OceanaGold by sole-funding exploration.
Sams Creek has an existing JORC compliant resource of 770,000 ounces based on 13.5 million tonnes grading 1.78 grams/tonne gold, using an 0.7 g/t cut-off.
The known gold resource at Sams Creek is contained within the Main Zone prospect, which covers less than 10% of the known 6 kilometres strike length. It remains open along strike and at depth.
Sams Creek has been described as an intrusion-related gold deposit (IRGD). Large IRGD deposits of around 4 million oz gold include Kidston in Queensland, Vasilkovskoe in Kazakhstan, and the Fort Knox and Pogo mines in Alaska.
Sams Creek is a single permit (EP 40 338) covering 30.6 km.
Discovered by Rio Tinto's CRA Exploration in 1974, Sams Creek is divided into a number of exploration prospects including Riordans, Western Outcrops, Doyles, South Eastern Traverse, Main Zone and Anvil.
The known mineralisation is within a porphyritic felsic dyke.
In the 1980s, CRA drilled 46 diamond holes but sold Sams Creek and all the Reefton goldfield leases in 1991 to Macraes Mining Ltd, forerunner of OceanaGold, which drilled a further 12 diamond holes.
MOD's exploration programme is being managed by Paul Angus who has over 25 years' experience in exploration and development projects in New Zealand, and he previously held senior positions with OceanaGold in relation to exploration and development at Macraes, Reefton and Sams Creek.
MOD said the first of its diamond holes was drilled near the western margin of the Main Zone to better define the western limit of mineralisation. It was drilled to 174m with the dyke intersected from 78m to 152m, indicating a true thickness of ahout 18m. The next three holes were drilled from the same location on the eastern margin of Main Zone.
Last November MOD had an aeromagnetic and radiometric survey flown by Thompson Aviation.
MOD said yesterday it would complete a soil sample survey that covers the area of dyke not sampled by CRA from the Main Zone to the eastern boundary of the exploration permit. A total of 800 samples are planned.
The quarterly report also detailed positive drilling results from the Corner K copper-silver discovery held by the company in the Kalahari Copper Belt in Botswana.
Assays return copper grades of up to 2.54% and silver grades of up to of 75.4 g/t and 72 out of 76 holes drilled at Corner K intersected copper-silver mineralisation which remains open at depth
New drilling will be carried out in the March quarter and MOD chairman Miles Kennedy said Corner K was looking geologically similar to neighbor discoveries held by Discovery Metals Ltd and Hana Mining Ltd.
Discovery Metals is preparing to commission Boseto in the first half of this years at the initial rate of 36,000 tonnes of contained copper and about 1 M oz silver. Boseto has a resource of 111.5 Mt @ 1.4% Cu and 17.6g/t Ag.
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