Anything over 12 mt @ 2% copper is considered a world class...

Anything over 12 mt @ 2% copper is considered a world class deposit.

Wait for the ann to sink in.

ADV Group Limited ABN: 92 009 727 959
Level 15, 115 Pitt St, Sydney, 2000
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GPO Box 4492, Sydney, NSW 2001
Tel: +61 2 9299 9580
Email: [email protected]
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254 METRES AT 2.65% COPPER FROM FIRST DRILLHOLE INTO
ZONE 4 AT JABAL SAYID PROJECT, SAUDI ARABIA
June 18, 2007
Highlights:
• Outstanding intersection of 254 metres of 2.65% Cu, 0.39 g/t Au, 8.2 g/t Ag and 0.15% Zn from first diamond drill hole at Zone 4, Jabal Sayid Project.
• Intercept includes 54 metres of 8.22% Cu, 1.12 g/t Au, 14.1 g/t Ag and 0.19% Zn – the thickest, highest grade zone ever drilled in Zone 4.
• The upper limit of the mineralised zone has been intercepted 50 metres closer to surface and the grade is substantially better than predicted.
• The hole ended in mineralisation, with the bottom of Zone 4 yet to be identified.
ADV Group (ASX : ADS) is pleased to report that it has received assay results for the first diamond drillhole, BDH4001, into Zone 4 at the Jabal Sayid Copper-Gold Project in Saudi Arabia. The hole intersected 254m at 2.65% Cu, 0.39 g/t Au, 8.2 g/t Ag and 0.15% Zn including 54 metres at 8.22% Cu, 1.12 g/t Au, 14.1 g/t Ag and 0.19% Zn. The drillhole terminated in mineralisation.
Jabal Sayid is a large VMS system extending over 1.5km of strike, with the bulk of mineralisation hosted in three zones. Zone 4 is interpreted as a blind deposit, occurring 200m below surface and striking roughly east-west, dipping steeply to the south and remaining open to the east and at depth. The bulk of the mineralisation in Zone 4 is hosted in a stringer/stockwork system that leads up into a massive sulphide deposit on the western margin at depth.
Zone 4 is the largest of the known zones at Jabal Sayid and only minor gold and silver assaying was conducted in the historical drilling. The latest result highlights the potential of the project to host a very substantial inventory of copper, gold resources in world terms with significant silver and base metal credits.
Drillhole BDH4001.
Hole BDH4001 was drilled at dip of 83 degrees towards 315deg through the less well defined eastern portion of Zone 4. The two primary purposes of the hole were to provide fresh assay information, including gold and silver credits, and to test for the presence of shallower mineralisation.
The hole was completed at 468m downhole, the limit of the available drilling equipment. The hole intersected disseminated pyrite at a depth of 203 metres downhole, marking the start of a major stringer mineralized zone dominated by pyrite with lesser chalcopyrite that extended down to the main mineralised zone at 326 metres depth.
This upper section encountered 123m at 1.08% Cu, 0.25 g/t Au, 9.7 g/t Ag and 0.19% Zn. Earlier visual inspection of the mineralisation in this upper section suggested that the grades might not exceed 0.5% Cu. The actual results were substantially better than predicted and, encouragingly, the assays confirm the presence of ore grade mineralisation up to 50 metres closer to surface than previously interpreted.
The main sulphide system was encountered at 326m and extended to the end of the hole at 468 metres. This zone was dominated by chalcopyrite which notably includes intervals of massive and semi massive sulphides.
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The massive (stockwork) sulphide zone that starts at 326m intersected 54 metres of 8.22% Cu, 1.12 g/t Au, 14.1 g/t Ag and 0.19% Zn – representing the thickest, highest grade zone ever drilled in Zone 4 at Jabal Sayid. This is followed by 55 metres at 1.46% Cu (0.11 g/t Au, 1.9 g/t Ag, 0.06% Zn) and a small low grade zone of 10m at 0.06% Cu (0.04 g/t Au, 0.5 g/t Ag, 0.06% Zn) with the hole ending in 12m at 1.22% Cu (0.09 g/t Au, 2.0 g/t Ag, 0.06% Zn).
The hole confirmed that, like Zone 1 and Zone 2, there are significant precious metal credits in the stringer/stockwork zone The drillhole averaged 0.4 g/t gold and 8.2 g/t silver over the entire 254m intersection including 54 metres at 1.12 g/t gold and 14.1 g/t silver coinciding with the high grade copper zone.
In commenting on the assay results for first diamond drillhole into Zone 4 at Jabal Sayid, Ms Inés Scotland, CEO of Vertex / Bariq said:
“This is an outstanding result from a deposit that continues to pleasantly surprise us. After producing exceptional drill results from Zone 1 and 2, our technical team positioned this hole to fill some of the data gaps in our knowledge in Zone 4.
“The 54m at plus 8% copper came out of left field and has the potential to improve the already attractive economics of the project. Further the 123 metres at 1.1% copper, from what we were testing as the lower grade halo at the top of this zone, was a great result.
“This result is world class by any comparison; we aim to rapidly advance this Project.”
BDH 4001 Assay Summary
From
To
Intercept
Au
Ag
Cu
Zn
Fe
S
m
m
m
ppm
ppm
%
%
%
%
203
456.95
253.95
0.39
8.2
2.65
0.15
12.31
7.33
203
326
123
0.25
9.7
1.08
0.19
11.29
5.19
326
380
54
1.12
14.1
8.22
0.19
17.90
14.59
380
435.00
55.00
0.11
1.9
1.46
0.06
10.17
6.58
435
445
10.00
0.04
0.7
0.06
0.05
8.35
0.42
445
456.95
11.95
0.09
2.0
1.22
0.06
10.82
5.90
Note 1: The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Ralph Stagg, who is a Member of the Institution of Materials, Mining and Metallurgy, a Chartered Engineer and a Fellow of the Australasian Institute of Mining and Metallurgy, and is the technical director of Bariq Mining. Ralph has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ralph consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
For further information please contact:
ADV Group Limited
Fletcher Quinn (Director) or Kris Knauer (Director)
(07) 3303 0625 (02) 9375 0108
0417 612627 0411 885979
Email – [email protected] [email protected]
Investor Relations
Andrew Mortimer
0433 894923
Email - [email protected]
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BACKGROUND ON ADV GROUP AND VERTEX
ADV has previously announced that it is acquiring 100% of Vertex and it anticipates that the notice of meeting to approve this acquisition will be sent to shareholders within one month. Vertex has an exciting portfolio of Copper, Gold, and other Base and precious metal projects on the Arabian Shield in Saudi Arabia. The projects are held by Vertex’s 70% owned Saudi Arabian operating subsidiary Bariq Mining Ltd (“Bariq”). Bariq is currently earning a 50% interest in the Jabal Sayid project and holds a 100% interest in other projects including:
Jabal Shayban: gold/copper project is located on the Shayban Mineral belt, the south-eastern extension of the Mahd Adh Dhahab/Jabal Sayid mineral belt. A JORC compliant Measured and Indicated #1 resource of 1.8Mt at 2.7 g/t Au, 23.1 g/t Ag and 0.47% Cu (253,000 oz Au Equiv#3.) was reported by the previous operator in 1999.
Jabal Baydan: zinc/gold project is located 10km from Jabal Shayban. An exploration target size for the mineralisation of 0.5-0.7 Mt at 15-18% Zn (100,000 t Zn) and 1-3 g/t Au (~40,000 oz Au) was estimated by a previous operator based on 24 drillholes.
Lahuf: is located 6 km from Mahd Adh Dhahab gold mine, a World-class epithermal gold project where historically more than 6 M oz of gold production has taken place. Lahuf has a JORC compliant Measured and Indicated #2 resource of 1.2 Mt at 2.83 g/t Au (113,000 oz Au) and an Inferred resource of 0.4 Mt at 2.0 g/t Au (23,000 oz) in shallow, mainly oxide breccia veins reported by the previous operator in 1999.
Bari: project consists of lightly explored ancient gold workings covering a strike extent of some 1.4 km. Previous drill results included 39m at 7.32 g/t Au, 12.86 g/t Ag and 1.2% Zn and 84m at 6.75 g/t Au and 5.1 g/t Ag.
Wadi Kamal: project is a virtually unexplored layered ultramafic complex where the only recorded drill hole intersected 17m 0.53% Ni and 0.23% Cu with PGE’s up to 1.2 g/t.
Muraijib-Bil’iwy: project where limited (3) trenching of a major alteration system which covers an area of 6km x 2km intersected 32m at 1.75 g/t Au and 12m at 1.8 g/t Au.
#1 – Table Showing classification of Jabal Sayban JORC Resources
Oxide Zone
Sulphide Zone
Tonnes
Weighted
Average
Grade
Tonnes
Weighted
Average
Grade
Ore
Category
g/t Au
g/t Ag
% Cu
g/t Au
g/t Ag
% Cu
Measured
266,296
2.56
31.09
0.43
738,906
2.78
20.46
0.52
Indicated
156,094
3.79
30.35
0.30
648,548
2.58
21.14
0.42
Sub-Total
422,390
3.01
30.81
0.41
1,387,454
2.68
20.77
0.47
Combined total oxide + sulphide
1,809,844
2.76
23.11
0.46
#2 - Table Showing classification of Lahuf JORC Resources
Tonnes
Weighted Average Grade
Contained gold (ounces)
Resource
Category
g/t Au
Measured
113,680
2.82
10,300
Indicated
1,113,620
2.83
101,400
Inferred
360,280
1.96
22,700
Total
1,587,580
2.63
134,400
#3 Au Equivalent (Jabal Shayban) - . Au Equivalent has been estimated using the latest end of day Nymex prices for Au and Ag and London Metals Exchange end of day cash buyer prices for, Copper. Process recoveries for the gold and silver in the oxide zone are assumed to be 90%. Process recovery for copper is assumed to be 80%. No metallurgical testwork has yet to be undertaken on the oxide zone of Jabal Shayban. The assumed recoveries are based on the metallurgical recoveries for typical mineralised systems of this type including knowledge of oxide ore processing operations in Saudi Arabia (Ma’aden).
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BACKGROUND ON JABAL SAYID PROJECT
The Jabal Sayid project is potentially a world class copper deposit 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 geostatistical 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 made 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.
A subsequent scoping study in the 1990’s indicated that the likely exploration target at Jabal Sayid is a 100-150Mt of mineralisation at 1-1.5% Cu with significant Au, Ag and Zn credits that could potentially be mined by open cut. Jabal Sayid consists of four known zones of mineralisation:
‘Zone’ 1 Zone 1 is the most southerly of the zones of mineralisation, with a gossanous surface expression that consists of a prominent east-west trending 30m high, 250m long and 50m wide outcrop of gossan. At depth, massive sulphides dip steeply to the southeast. The underground mineralisation is described by the BRGM as a 40m wide lens, that extends vertically for 150m, thereafter dipping steeply to the southeast, to a depth of at least 550m. Diamond core drilling by Vertex has returned results including 115m at 1.77% Cu, 1.54% Zn, 0.45g/t Au and 26.9g/t Ag and 97 m at 3.28% Cu 1.55% Zn, 0.71g/t Au, 41.6g/t Ag, The Saudi Geological Survey has anecdotally reported gold results, from a sampling program over the gossan however assay results cannot be located. This has subsequently been investigate by Vertex in a recent RC percussion drilling program which confirmed the presence of a significant oxide gold/silver and separate oxide copper/silver cap from surface which is located up dip of – and itself transitions into – the primary sulphide mineralisation. Results from this program included 49m at 3.75 g/t Au and 10.8 g/t Ag and 61m at 1.52 g/t Au and 18.7 g/t Ag. The BRGM did not include mineralisation from Zone 1, in the pre-feasibility study on a possible 1 Mtpa underground operation. As the majority of the previous drilling targeted massive sulphides below the surficial oxide zones, the Zone 1 gossan and oxide copper zones have not been extensively drilled and are targets of the current Vertex programs. Mineralisation also remains open at depth with the copper-rich massive sulphides become more zinc-rich. The BRGM have reported tonnes and grade of zinc-rich mineralisation in excess of the near surface copper-rich zones.
Zone 2 Was discovered in 1970 and is capped by a less prominent gossan than Zone 1. It is separated from Zone 1 by the East Valley fault which is interpreted to have a 300m horizontal displacement. Zone 2 forms a steep dipping northwest-southeast aligned tabular body with a bulge on the eastern side. Mineralisation at Zone 2 is also open at depth and gold and silver were not routinely assayed. Vertex’s firs two diamond core holes on Zone 2 returned 164.3m at 2.79%Cu, 0.44.g/t Au 23.2g/t Ag and 0.23% Zn and 122m at 2.74%Cu, 0.22g/t Au, 5g/t Ag and 0.08% Zn. Like Zone 1 the zone immediately below the gossan was not specifically targeted by drilling until Vertex’s recent RC percussion drilling program which confirmed the presence of a significant oxide gold/silver cap from near surface. Results from this program included 41m at 3.0 g/t Au and 100.1 g/t Ag and 41m at 1.52 g/t Au and 108.3 g/t Ag.
Zone 3 The most northerly of the zones of mineralisation does not outcrop at surface but some chlorite-sericite hydrothermal alteration with some minor sulphide mineralisation led to its discovery in 1972 at a depth of 200m below surface. Mineralisation is known to extend some 700 metres below surface. Zone 3 is poorly defined, structurally complex and the detailed geology of Zone 3 is yet to be resolved.
Zone 4 The most northerly of the zones of mineralisation Zone 4 was previously interpreted as blind, occurring 200m below surface and contains the majority of the historically identified underground mineralisation. Zone 4 is described as mushroom-shaped with a ‘stem’, aligned northwest-southeast, dipping to the east. Mineralisation is known to extend to at least 700m below surface and only minor gold and silver assaying was conducted. Vertex plans to test the near surface zone and drill into the top of the Zone 4 mineralisation with 4-5 near vertical core drillholes to 450-500m.
Mineralisation is also open at depth, with the deepest reported holes terminating in +3% Cu mineralisation. The BRGM modelled an Exploration Target (which was not included in the previous open cut Exploration Target) of 100,000t at >3% Cu per vertical metre, likely extending at least 200 metres below the existing resource. Should this zone extend for the minimum 200m, anticipated by the BRGM, this suggests an additional Exploration Target of 20Mt at > 3% Cu.