re: impressive results announced Here is the announcement. What...

re: impressive results announced Here is the announcement. What a ripper!

2 May 2006
Copper Hill Resource Estimate
A Resource Estimate has been completed by Hellman & Schofield Pty Ltd for
GCR’s 100%-owned Copper Hill porphyry copper-gold project near Molong, NSW.
The estimate, using historical drill results and drill results received prior to hole
GCHR087 in the current drilling program, is tabulated below at several cut-off
grades.
At a 0.20% copper cut-off grade, the Resource Estimate is:
105Mt at 0.33% copper and 0.33 g/t gold, containing, in-ground,
344,000t of copper and 1.12 Moz of gold.
Copper Hill Resource Estimate – Indicated and Inferred – May 2006
Copper
Cut-off
(%)
Tonnes
(Mt)
Copper
(%)
Gold
(g/t)
Contained
Copper
(Kt)
Contained
Gold
(M oz)
0.10 238 0.23 0.24 538 1.81
0.20 105 0.33 0.33 344 1.12
0.30 44 0.44 0.45 196 0.64
Potential exists at Copper Hill for the additional discovery and extension of
mineralisation, both within the current resource envelope and beyond. This
resource estimate is preliminary, with outstanding assay results from 20 drill holes
yet to be included, and the resource delineation drilling program, presently using
two rigs, approximately 60% completed. Further results will feed into a revised
resource estimate to be issued in coming months.
At a 0.20% copper cut-off grade, approximately 25% of the Resource Estimate is
Indicated, and 75% Inferred. Primary mineralisation comprises 92% of the
resource (tonnage) with 2% supergene and 6% oxide copper. The resource
outcrops at surface and preliminary pit optimisation studies indicate low strip ratios.
Mining consultant AMDAD has been commissioned to run a Whittle 4D
optimisation and design a first-pass pit to determine volumes, tonnages, grades
and waste.
The resource estimate will form the basis for a Scoping Study to immediately
investigate various technical options for the project. GCR’s minimum aim, subject
to further discoveries, is for Copper Hill to become a 10Mtpa operation producing,
on average, around 30,000 tonnes of copper and 95,000 ounces of gold each year
over a minimum of ten years, assuming recoveries of 85% for copper and gold.
GCR’s preliminary in-house economic modelling indicates that an operation of this
size will produce a robust cash flow, assuming prices of US$1.40/lb for copper,
US$450/oz for gold and conservative capital and operating costs.
GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
2
Notes
The Resource Estimate was calculated by Arnold van der Heyden, a full-time employee of
Hellman & Schofield Pty Ltd (“H&S”), specialists in resource estimation. Mr van der
Heyden, MAusIMM, has more than five years experience in the field of activity in which he
is reporting and consents to his report being incorporated into this announcement in the
context in which it appears above. He is a Competent Person under the meaning of the
JORC (2004) Code.
Model densities are the average for each zone from drill hole statistics: Primary – 2.68,
Supergene – 2.44, Oxide – 2.27, Barren Dyke – 2.61.
Indicated Resources are:
Copper
Cut-off
(%)
Tonnes
(Mt)
Copper
(%)
Gold
(g/t)
Contained
Copper
(Kt)
Contained
Gold
(M oz)
0.10 45 0.28 0.32 126 0.46
0.20 26 0.38 0.42 99 0.35
0.30 14 0.49 0.55 70 0.25
Inferred Resources are
Copper
Cut-off
(%)
Tonnes
(Mt)
Copper
(%)
Gold
(g/t)
Contained
Copper
(Kt)
Contained
Gold
(M oz)
0.10 193 0.21 0.22 411 1.36
0.20 79 0.31 0.30 245 0.77
0.30 30 0.42 0.41 126 0.39
Significant uncertainties relating to the resource estimate include: the possible
understatement of Cu grades due to loss of friable chalcocite during drilling, possible bias
(low) of Cu and Au grades as suggested by performance of anonymous standards
submitted with samples from the 2006 drilling program. The assay and geological
database has been constructed by Golden Cross personnel and provided to H&S. Golden
Cross takes responsibility for the data provided to H&S.
This report was prepared overall by Kim Stanton-Cook, Managing Director and full time
employee of Golden Cross Resources Ltd, who is a Member of the AIG and has more than
five years’ experience in the field of activity in which he is reporting. He is a Competent
Person under the meaning of the JORC (2004) Code.
* * * * * *