gir (exploration update ann)
ASX ANNOUNCEMENT EXPLORATION UPDATE Snake Well Gold Project – resource estimation nearly complete – drilling to recommence next week Daltons Joint Venture – drilling and down-hole EM results Snake Well Gold Project (Giralia 100%) Following receipt of all final assay results from April-May resource level RC and diamond drilling at the Snake Well gold project, and completion of data validation and screen fire assay checks, resource estimation and metallurgical work is nearing completion. A revised total project gold inventory is being estimated, including initial resource estimates for the new Mixy, Calisi 1 and Calisi 2 lodes, and the Asp and 1080 laterite zones, along with updated estimates for the A-zone deposit (currently 460,000t @ 3.1 g/t Au Inferred) and the Lop, Buckshot and Warren laterite zones (currently 620,000t @ 1.1 g/t Au Inferred). It is the Company's intention to continue to grow this resource with further exploration drilling at and along strike from the existing deposits, and RC and diamond drilling will recommence next week, testing for extensions to the east and down plunge from the Mixy lode. Five new regional targets will also be tested with aircore drilling. Screen fire assay checks, and re-sampling and assaying of selected intervals for metallurgical head grades, has resulted in some significant upgrades to several Mixy intersections: Hole No Intersection from Initial Assays Intersection from Screen Fire Assay Intersection from Metallurgical Head RDRW103 3.6m @ 29.8 g/t 3.6m @ 67.5 g/t RDRW099 5.65m @ 18.9 g/t 5.65m @ 74.8 g/t RCRW065 6m @ 7.65 g/t 6m @ 30.8 g/t Preliminary metallurgical testwork on drill hole composites from the Mixy lode indicates good recoveries, with a high proportion of gravity recoverable gold. Hole No Assay Head Grade Total Au Recovery Gravity Recovery Vertical Depth RCRW061 9.22 g/t 99.2% 79.9% 35m Oxide RCRW065 30.8 g/t 99.7% 82.9% 80m Transition RCRW100 7.64 g/t 81.5% 68.5% 110m Primary RDRW103/108 25.9 g/t 98.3% 47.8% 120-150m Primary Average: 94.7% 69.8% PO Box 1665, West Perth WA 6872 Level 2, 33 Ord Street, West Perth WA 6005 Tel: (08) 9481 4440 Fax: (08) 9321 0070 Email: [email protected] Web: www.giralia.com.au - 2 - Several important intersections were returned from April-May RC drilling targeted at strike extensions to the Mixy and Calisi lodes. Of particular significance are hole RCRW113 (7 metres @ 3.93 g/t Au), located 100 metres east of the Mixy deposit, and hole RCRW132, located mid-way between the Mixy and Calisi 1 deposits beneath the 'Lop' laterite zone. Significant Results April-May Drilling – Snake Well Prospect Hole No East North Incl/Az Depth (m) From (m) To (m) Intersection Mixy RCRW109 9760 9610 -60º/330º 124 94 107 102 13m @ 9.99 4m @ 30.3 Mixy RCRW111 9900 9580 -60º/330º 112 70incl 70 79 74 9m @ 1.94 4m @ 3.70 Mixy RCRW112 9820 9695 -60º/150º 100 64incl 64 87 70 23m @ 1.57 6m @ 3.49 Mixy RCRW113 10000 9550 -60º/330º 106 91incl 91and 96 98 92 98 7m @ 3.93* 1m @ 8.82 2m @ 9.3 Mixy RCRW114 9540 9700 -60º/330º 140 19 26 7m @ 1.08 Mixy RCRW115 9790 9600 -60º/340º 106 96incl 97 106 EOH 101 10m @ 1.72 4m @ 3.45 Calisi 1 RCRW123 8700 10030-60º/150º 75 53 incl 53 57 54 4m @ 4.79 1m @ 14.0 Calisi 2 RCRW118 8575 9735 -60º/330º106 248095 28 81 96 4m @ 2.23 1m @ 3.58 1m @ 5.56 Other RCRW132 9100 9900-60º/330º 94 76incl 76 87 81 11m @ 1.02 5m @ 1.45 Analyses of 1 metre riffle split samples by 50g fire assay * includes a 4 metre composite sample Daltons Joint Venture (Giralia earning 75% interest from Haoma Mining) First pass RC and diamond drilling (7 holes/1339 metres) was completed at Daltons in late May, targeting a 300 metre long section of the basal contact of the Daltons ultramafic in the Kingsway-Wadi zone, where 1970s drill holes reportedly intersected high grade nickel-copper sulphides. The program was designed to provide a platform for down-hole geophysical exploration below the depth limits of surface electromagnetic ("EM") surveys, which were unable to detect the previously intersected massive sulphide zone. - 3 - An encouraging disseminated sulphide intersection was returned from hole RDDN019, including 0.66 metres @ 0.54% Ni, 0.12% Cu and 0.2 g/t PGE, however indications from drill hole geology and down-hole EM surveys suggest that the recent drilling may not have been deep enough to intersect the massive sulphides. Down-hole EM has been read for 5 of the 7 holes, and preliminary interpretation by consultants Newexco suggests the presence of a conductor of interest below RDDN019. An off-hole conductor was also detected below hole RDDN021. Daltons Joint Venture - May RC/Diamond Drilling Hole No East North Incl/Az Depth (m)From To Intersection RDDN016 724088 7621158 -55º/295º161.35 84 96 12m @ 0.46% Zn RDDN017 724140 7621138 -60º/138º100.0 95 98 3m @ 1.02% Zn, 0.36% Ni RDDN019 724148 7621395 -60º/187º259.78 254.94255.60.66m @ 0.54% Ni, 0.17% Cu, 0.2 g/t PGE RDDN020 724132 7621421 -72º/128º269.60 267.05267.320.27m @ 0.64% Cu RDDN021 724230 7621469 -65º/185º272.10 52 64 12m @ 0.15% Cu Further drill testing of down-hole EM targets, particularly beneath RDDN019, is planned following completion of gyroscopic down-hole surveys and receipt of final geophysical interpretation. R M Joyce 8 July 2004 Director Perth, WA The information in the above announcement was compiled by R M Joyce, who is a Member of the Aus.I.M.M., with not less than 5 years experience in the relevant fields, and who consents to the report appearing in the form and context in which it appears.
