assay results imminent on initial saudi arabian dr

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N E W S
• R E L E A S E •
FOR IMMEDIATE RELEASE
8th November 2006
ASSAY RESULTS IMMINENT ON INITIAL
SAUDI ARABIAN DRILLING – ADV GROUP
First assay results are imminent from a detailed initial drilling program on the Saudi Arabian minerals project announced last week by Sydney-based ADV Group.
ASX-listed ADV - which last week announced it was undertaking due diligence to take a key stake in the Jabal Sayid minerals project on the Arabian Shield in Saudi Arabia – today provided an update on a current 5000 metres drilling program.
“With assay results now pending from the Jabal Sayid copper-gold project, ADV believes it is timely to provide a more detailed description of both the project and the drilling program which is part of the current Pre-Feasibility Study,” ADV’s Chairman, Mr Fletcher Quinn, said today.
“Samples have already been submitted from several completed drill holes and we expect the first assay results to be announced in the next week or two,” Mr Quinn said.
As announced on 30 October 2006, ADV Group is currently conducting due diligence on, and has the option to secure rights to, an exciting portfolio of copper, gold and other base and precious metals projects on the Arabian Shield in Saudi Arabia.
The due diligence is on Vertex Group (Middle East) WLL (“Vertex”) – an explorer and mining services company which holds a 70% interest in a Saudi Arabian operating subsidiary, Bariq Mining Ltd (“Bariq”).
ADV has agreed to provide a $1.5 million loan to Vertex which ADV may, at its option, convert the loan into a 25% interest in Vertex. In return for providing the initial convertible loan funds to Vertex, ADV currently has the first, and last, right of refusal to acquire Vertex, and Vertex has entered into a period of exclusive dealing with ADV until 30 March 2007
If the loan is not converted, it will be repayable by Vertex on or before June 30 2007.
Today’s announcement outlines the proposed Jabal Sayid drill program and its current status, including the drill holes from which assay results are pending.
ADV today said that the main focus of the drill program includes verification of the known copper/gold sulphide mineralisation which will be part of a detailed evaluation program that will lead to JORC Code compliant resources being estimated by an Independent Expert.
issued through
FIELD PUBLIC RELATIONS PTY LTD ABN 74 008 222 311
231 South Road, MILE END SA 5031
Ph: 08 8234 9555 Fax: 08 8234 9566
[email protected]
Mr Quinn said ADV’s investment option in Vertex was “a world class opportunity” for ADV in a country in which the interest of the resources industry had traditionally focussed on the kingdom’s renowned petroleum reserves.
“This is a world class opportunity for ADV which could not be ignored. Vertex has a number of projects which are all potential company makers and, with drilling underway at Jabal Sayid, this strategic investment is a timely,” Mr Quinn said.
Background on project:
Jabal Sayid
The Jabal Sayid project is a potentially world class copper deposit (Bariq earn in to 50%) where previous work, predominantly in the 1970’s and 1980’s, focused on a high grade underground development scenario. Work undertaken included approximately 50,000 metres of drilling, 5.5km of surface trenching, and 3.9km of underground development. Tonnage and grade estimates were made using geostatisical modelling techniques based on the drilling and underground work by the BRGM for the Saudi Arabian Government but are not in compliance with the current JORC Code and cannot be stated. Estimates were conducted using a 1.5% Cu cut-off grade for a pre-feasibility study on a 1 M tpa underground mine scenario undertaken in 1985 (when the copper price was US$0.85 lb compared to the current price in excess of US$3.30 lb). A subsequent scoping study in the 1990’s indicated that the likely exploration target at Jabal Sayid is a 100-150Mt open cut orebody at 1-1.5% Cu with significant Au, Ag and Zn credits that could potentially be open cut mined. A 5,000 metre drilling program as part of due diligence and pre-feasibility studies has been commenced with first results anticipated shortly. It is anticipated that JORC compliant resource estimates will be prepared as part of this work.
Media contacts:
Fletcher Quinn
ADV Group Chairman
Tel: (07) 3303 0625
Mob: 0417 612 627
Peter Gill
Field Public Relations
Tel: (08) 8234 9555
Mob: 0417 784 059