First Quarter Activities
30-04 1618
HIGHLIGHTS
Highlights of the March quarter were:
- encouraging results from a shallow drilling program into the
Burbank nickel prospect
- commencement of drilling at the Melba Flats nickel-copper-platinum
group metals-gold project
- completion of detailed planning and permitting of a resource
definition drilling program to commence at Avebury in the June
quarter
- acquisition of additional tenements in western Tasmania which are
considered prospective for Avebury style nickel sulphide deposits
- $750,000 raised to much accelerate the resource and exploration
drilling at Avebury, Melba Flats, East Avebury and Burbank
COMMENTS
Over the quarter, sentiment continued to improve with nickel now
trading above US$7,000, some 55% above the September 2001 low. The
prognosis for the future is bright with shortages in sulphide nickel
seen for at least the next five years.
In late March to mid April, Allegiance placed 16,656,555 shares and
366,667 December 2003 options to raise $749,544.96. This will enable
a much accelerated resource drilling and exploration programme at
Avebury, Melba Flats and our other promising projects at East Avebury
and Burbank. This programme has commenced and will continue through
the current quarter.
BURBANK - EL 22/97 and EL 28/88:
(Allegiance 100%, Rio Tinto 2% net smelter royalty)
In February, the Company announced the detailed results of a shallow
core drilling program on the Burbank prospect, four kilometres west
of Avebury.
Six short holes totaling 130 metres were completed into a substantial
nickel anomaly located by previous mapping and geochemical programs.
Results of the drilling were most encouraging with all six holes
intersecting significant nickel mineralisation.
All cores sampled (41 discontinuous samples totaling 92m) were
strongly nickel anomalous, generally in the range 1.1-1.5% Ni with a
highest value of 1.78% Ni and a lowest value of 0.5% Ni.
Zinc values were also anomalous in the range 0.2-0.4% Zn, which is
closely analogous to surface sampling over the Avebury and East
Avebury deposits.
Petrological studies suggest the nickel and zinc are present in clays
and iron oxides possibly developed from oxidised sulphides within an
altered ultramafic host.
Encouraged by these early results, Allegiance plans to further drill
test the Burbank prospect at greater depths with a larger helicopter
supported rig in the 2002-03 summer period.
A table of the drilling results follows:
HOLE COLLAR DRILL WIDTH % NI
DETAILS INTERSECTION
B1 350949E 2.5 15.0 12.5 1.06
5355237N
2045 RL
34deg AMG brg
-45deg dip
15m length
B2 350976E 2.0 9.6 7.6 1.00
5355247N 13.0 20.6 7.6 0.98
2055 RL
37deg AMG brg
-55deg dip
25.1m length
B3 350975E 3.5 10.5 7.0 1.14
5355247N 13.2 14.0 0.8 1.18
2055 RL 15.8 19.1 3.3 1.04
217deg AMG brg 21.1 22.6 1.5 1.12
-55deg dip
22.6m length
B4 350948E 1.0 8.6 7.6 1.10
5355252N 9.3 16.9 7.6 0.70
2050 RL 17.3 18.4 1.1 1.00
35deg AMG brg
-60deg dip
18.4 m length
B5 350948E 8.6 17.6 9.0 0.85
5355252N
2050 RL
222deg AMG brg
-55deg dip
17.6m length
B6 350974E 3.0 20.3 17.3 1.06
5355234N 23.0 27.7 4.7 1.20
2050 RL
57deg AMG brg
-55deg dip
30.7m length
AVEBURY EL 28/88:
(Allegiance 100%, Rio Tinto 2% net smelter royalty)
Detailed planning and permitting of a 3,500 metre core drilling
program at Avebury were completed. Drilling is due to commence in
late May and be completed by mid-September 2002.
The program is designed to firstly improve the definition of the
South Avebury resource and secondly test for shallow extensions of
Central Avebury and North Avebury.
Results of the program will lead to a re-estimation of the identified
Avebury resources ahead of the design of an underground decline
development which is seen as the next logical step in the detailed
evaluation of Avebury.
MELBA - EL 43/92:
(Allegiance 100%, Rio Tinto 2% net smelter royalty)
In late March 2002, Allegiance announced that it had recommenced
drilling at Melba Flats. A program of five cored holes totaling 600
metres is planned to further test the Nickel Reward sulphide deposit
where previous drilling and trenching intersected high grade
nickel-copper-gold-platinum group metal mineralisation in a series
of gabbro dikes.
It is anticipated that the drilling will be completed in early May
and results will be available by late May 2002.
NEW TENEMENTS:
(Allegiance 100%)
In the previous quarter, Allegiance announced that it had acquired EL
14/2001 in the Heazlewood area. In the current quarter, a further two
tenements were applied for in the Renison-Rosebery area, east of
Melba Flats.
One of these, EL 5/2002, has subsequently been granted and the other,
ELA14/2002, is still in the application stage.
All three tenements are considered prospective for nickel sulfide
deposits of the Avebury-Melba styles, and their acquisition reflects
the Company's belief firstly in the future strength of the nickel
market, and secondly in the prospectivity potential of this area of
western Tasmania.
All three areas have recently been covered by airborne magnetic,
electromagnetic and radiometric surveys flown by Mineral Resources
Tasmania. The direction of future work by Allegiance will be strongly
influenced by the results of these surveys.
A Howland-Rose
MSc, DIC, FGS, FIMM, FAusIMM, FAIG, CEng
CHAIRMAN
The information contained in this report is based on information
compiled by Lindsay Newnham and Anthony W Howland-Rose who are
corporate members of the Australasian Institute of Mining and
Metallurgy and/or Australian Institute of Geoscientists and who have
individually more than five years experience in the field of activity
being reported on. This report accurately reflects the information
compiled by these members.
ends - AAP
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