AUZ ASX - Duplex Hill South Purchase Option 1E26/ 64 DUPLEX HILL...

AUZ ASX - Duplex Hill South Purchase Option 1
E26/ 64 DUPLEX HILL SOUTH - PURCHASE OPTION RIGHTS
Australian Mines Limited (ASX:AUZ) is pleased to advise that the company has
purchased, the option rights to acquire Exploration Licence 26/64, Prospecting Licence
Applications 26/2899, 26/2900 and 26/2901 from Niagara Mining Limited (Niagara).
The Company will issue to Niagara 250,000 vendor shares at 15 cents each to acquire the
option rights. The shares will be restricted from trading for 12 months.
The Option Agreement is valid until May 22, 2006. In order to exercise AUZ will pay
$80,000 to Connaught Mining Limited (the tenement owners) with a residual production
royalty of $5.00 per ounce capped at $100,000.
Strategic Value
The Duplex South land holdings are strategically located to the south of the Blair Leases
where they are contiguous with Mining Lease 26/289. AUZ has identified this corridor as a
structural link zone between the Mt Monger Shear to the east and the Boorara Shear zone
to the west. Evidence of the potential for the area has already been noted with zones of
anomalous gold in soil results already reported at Goldstar, Flying Squirrel and Saturno
Prospects on the Blair Leases.
Duplex Hill South Project
The project is located approximately 40 kilometres southeast of Kalgoorlie in the Eastern
Goldfields of Western Australia and comprises 9.15km² of leasing area (Figure1).
The schedule of tenements includes:
1. E26/64 (granted)
2. M26/782 (pending) currently an application over E26/64
3. P26/2899 (pending)
4. P26/2900 (pending)
5. P26/2901 (pending)
Previous exploration has been undertaken by Connaught Mining NL and Anglogold
Australasia Limited which included aeromagnetic surveys, MMI surfacing sampling, auger
soil sampling, ground gravity, GPS surveying, RAB and RC drilling.
The best results came from RC drilling completed in 1997 which intersected 18m @ 3.19
g/t Au from 52m and 2m @ 12.33 g/t Au from 31m depth from holes DHSC007 and
DHSC009 respectively. In 2003 Niagara completed a follow-up RAB program in which
DHSB093, located to the south of the RC drilling intersected 12m @ 3.12 g/t Au from 44m
In addition a scissor hole (DHSB093) to DHSC007 was drilled which intersected 4m @
4.58 g/t Au from 44m depth (Figures 2 & 3).
AUZ believes the drilling to date has not been sufficient enough to test for a limited strike
but high grade gold bearing system. As such further RAB/RC holes infilling existing drilling
is proposed.
Hole Id
Northing
(AGD
grid)
Easting
(AGD
grid)
RL Azimuth
(mag) Dip Hole
Depth
From
(m)
To
(m)
Interval
(m)
Au
(g/t)
DHSC007* 6569005 384145 400 271 -55 180 52 70 18 3.19
Including 61 62 1 7.30
155 156 1 3.76
DHSC009* 6569005 384120 400 270 -55 149 12 19 7 2.65
Including 13 16 3 5.22
31 33 2 12.33
Including 32 33 1 19.00
51 52 1 2.96
DHSB090** 6569001 384066 400 90 -60 77 44 48 4 4.58
DHSB093** 6568961 384101 400 270 -60 63 44 56 12 3.12
* Denotes a fire assay on 1m splits from RC drilling
** Denotes an aqua regia digest on 4m composites from RAB drilling
This opportunity is another acquisition the Company has made since establishing itself in
the Eastern Goldfields as a nickel producer and mineral explorer. The Company is
continuing to investigate other commercial opportunities in the goldfields