+++++++++++++++++++++++++ Ellendale Resources NL has a 50% interest in the Mt Sarah and Welbourn Hill gold/base metal projects in northern South Australia. The projects consist of two exploration licences covering 402 square kilometres of ground. The remaining 50% is held by Canadian listed Caldera Resources Inc, who are also managerof the project.
In relation to these projects, Caldera have advised as follows:
"Caldera Resources Inc is pleased to advise that two ground gravity surveys have been completed at the Mt Sarah and Welbourn Hill gold/base metal projects in northern South Australia.
The Mt Sarah and Welbourn Hill anomalies are discrete intense magnetic anomalies considered as potential iron oxide copper-gold (Fe-oxide Cu Au) style deposits. Gravity survey's at both anomalies indicate relatively shallow gravity anomalies associated with a deeper magnetic anomaly. The interpreted apparent susceptibilities of the magnetic anomalies suggest a significant iron content.
The Mt Sarah gravity survey identified two separate and well defined gravity anomalies associated with the magnetic anomaly. Modelling of this data has shown that one gravity anomaly is significantly shallower than the other and may only be some tens of metres from the surface. This makes the target an attractive exploration proposition for the joint venture from a cost perspective.
Initial surface geo-chemical results obtained from one traverse at Mt Sarah show anomalous barium, phosphorous and rare earth elements, which is a characteristic of Fe-oxide copper/gold deposits. The geo-chemical anomaly appears to be related to the more shallow of the two detected gravity anomalies at this project area. The joint venture considers these geo-chemical results to be of high interest as some of the rate earth elements are a leading pathfinder in the search for this type of ore deposit.
This magnetic/gravity anomaly association is a characteristic of the world class Olympic Dam copper/gold deposit and is also a feature of the Company's Mt Carulina Project which is under an option agreement with Inco Ltd. The gravity anomaly at Olympic Dam is caused by a haematite breccia, which hosts significant copper/gold mineralisation.
The positions of the twoExploration Licences relative to the Mt Carulina Exploration Licence, Olympic Dam and the recent discovery at Prominent Hill by Minotaur Resources Ltd is tile reason. Caldera regards the Mt Sarah and Welbourn Hill anomalies as high priority exploration targets."
Martin E Jackson MAusIMM, is the qualified person responsible for the technical information contained in this release.
D McArthur DIRECTOR
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