KEY POINTSAssays confirm strike potential of thick nickel...

KEY POINTS

Assays confirm strike potential of thick nickel zone.
Further results pending from sulphide intersections over a strike length
of 900m.
Potential for large-tonnage Ni-Cu deposit.
An eight hole 1,089m reverse circulation (RC) drilling program has been completed at the
Green Dam prospect in the Roe project, 120km east of Kalgoorlie (Figures 1 and 2). The
program was designed to follow up results of previous reconnaissance drilling which
confirmed a nickel-copper sulphide zone over a strike length of 700m near the basal contact
of the Green Dam mafic-ultramafic complex (Figure 2).
Assays from the third drill hole in this program, YRC014, have been received and indicate an
intersection of 24m at 0.42% Ni & 0.13% Cu from 115m, including 14m @ 0.55% Ni &
0.16% Cu. The 14m interval contained three separate 1m intercepts of 1.5% Ni & 0.42%
Cu, 1.34% Ni & 0.30% Cu and 1.08% Ni & 0.31% Cu (Table 1).
This hole was drilled approximately 40m along strike to the south-east of drill-holes YRC009
and the deeper YRC013 (Figure 2), which intersected 16m @ 0.74% Ni & 0.37% Cu from
145m and 45m @ 0.60% Ni & 0.23% Cu from 162m, respectively (Table 1). These
intercepts indicate that mineralisation appears to be thickening with depth in this area.
An intersection of 8m @ 0.62% Ni & 0.36% Cu from 146m was recorded in the historic drillhole
YRC005 approximately 40m along strike to the southeast of drill-hole YRC014.
These drilling results confirm the continuity of a thick zone of Ni-Cu mineralisation over at
least 80m of strike. Other thick drill intercepts of Ni-Cu mineralisation recorded elsewhere at
the prospect (Figure 2), together with those reported here, indicate potential for a hightonnage
Ni-Cu deposit at Green Dam.
Several zones of disseminated and massive sulphides have been logged in the other drillholes
in the recently completed program in the south-eastern and north-western parts of the
prospect. These extend the zone of sulphide mineralisation to approximately 900m in strike
length. The remaining assay results should be available within the next two weeks.
1
Table 1. Green Dam Prospect – RC Drill Intersections
(Results for intercepts are reported at the cut-off grades shown in right-hand column; these may include some 1m
intervals at less than the cut-off grade shown)
Drill
Hole
Easting
(m)
Northing
(m)
Azimuth
(Degs)
Dip
(Degs)
Depth
(m)
From
(m)
To
(m)
Intercept
(m)
Ni
(%)
Cu
(%)
Ni %
Cutoff
YRC014 472861 6620973 20 -60 162 115 139 24 0.42 0.13 0.2
including 117 131 14 0.55 0.16 0.3
and 117 118 1 1.50 0.42 1.0
and 127 128 1 1.34 0.30 1.0
and 130 131 1 1.08 0.31 1.0
Previously announced drill intersections:
YRC009 472823 6620986 20 -60 172 145 161 16 0.74 0.37 0.3
including 145 147 2 2.20 1.41 1.0
YRC013 472814 6620954 20 -60 225 162 207 45 0.60 0.23 0.2
including 163 184 21 0.81 0.29 0.3
including 167 169 2 2.04 0.20 1.0
and 197 198 1 2.61 0.68 1.0
and 203 204 1 1.08 0.37 1.0
Historic drill intersection:
YRC005 472887 6620967 35 -60 162 146 154 8 0.62 0.36 0.3
A substantial drilling program is planned at the prospect to determine the potential for a
large-tonnage deposit.
Magma Metals Limited holds a 100% interest in the tenement over the Green Dam prospect.