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Magma Metals Limited
Level 3, 18 Richardson Street, West Perth WA 6005 Australia
PO Box 1221, West Perth WA 6872 Australia
Tel +61 (0)8 9324 1500 Fax +61 (0)8 9324 1700
Email: [email protected]
Web: www.magmametals.com.au
24th October 2007 ASX Announcement ASX: MMB
FURTHER DRILLING RESULTS CONFIRM THICK PGE ZONE
AT THUNDER BAY NORTH
KEY POINTS
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Assay results have been received for two more holes drilled adjacent to hole TBND027 in the northern part of the Current Lake magnetic anomaly. Results included: 54.7m @ 1.56g/t Pt+Pd+Au, 0.19% Cu & 0.19% Ni, including 10.9m @ 2.72g/t Pt+Pd+Au, 0.29% Cu & 0.22% Ni in drill-hole TBND028 and 38.4m @ 1.11g/t Pt+Pd+Au, 0.13% Cu & 0.16% Ni, including 14.95m @ 1.96g/t Pt+Pd+Au, 0.23% Cu & 0.20% Ni in drill-hole TBND029.
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Some high grade intercepts were associated with massive-sulphide veins including: 0.45m @ 15.85g/t Pt+Pd+Au, 2.86% Cu & 1.16% Ni in drill-hole TBND028.
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Intercepts for TBND027 have been upgraded following receipt of additional assay results to 43.05m @ 2.02g/t Pt+Pd+Au, 0.22% Cu & 0.20% Ni, including 14.60m @ 5.03g/t Pt+Pd+Au, 0.52% Cu & 0.35% Ni and 4.90m @ 8.22g/t Pt+Pd+Au, 0.78% Cu & 0.54% Ni.
Six diamond drill-holes were recently completed in the northern part of the Current Lake magnetic anomaly within the Thunder Bay North project in Ontario (Figures 1 and 2). Final assay results have now been received for three of these holes, TBND027 (preliminary assays announced previously) and TBND028 and TBND029. All six holes were drilled from the same pad approximately 55m west of TBND001 (which returned 10.5m @ 2.80g/t Pt+Pd+Au, 0.45% Cu & 0.34% Ni) and drilled in a fan array at various dips and azimuths to test the central part of the peridotite at this location (Figures 2 and 3). The holes intersected varying thicknesses of peridotite, between 45m and 61m, containing 2-15% disseminated sulphides and several 1cm-wide massive-sulphide veins.
Each of the three holes for which assays are available intersected thick zones of mineralised peridotite. The more significant results are listed below. Drill-hole location and assay data at various cut-offs are shown in Tables 1 and 2. Assay results for drill-hole TBND027 have been re-
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calculated and upgraded following receipt of assay results for four samples which were previously unavailable.
Drill-hole TBND027: 43.05m @ 2.02g/t Pt+Pd+Au, 0.22% Cu & 0.20% Ni from 2.45m
including: 28.55m @ 2.88g/t Pt+Pd+Au, 0.31% Cu & 0.25% Ni from 5.30m
including: 14.60m @ 5.03g/t Pt+Pd+Au, 0.52% Cu & 0.35% Ni from 6.30m
including: 3.20m @ 7.03 g/t Pt+Pd+Au, 0.81% Cu & 0.41% Ni from 6.30m
and: 4.90m @ 8.22g/t Pt+Pd+Au, 0.78% Cu & 0.54% Ni from 12.25m
Drill-hole TBND028: 54.70m @ 1.56g/t Pt+Pd+Au, 0.19% Cu & 0.19% Ni from 2.40m
including: 10.90m @ 2.72g/t Pt+Pd+Au, 0.29% Cu & 0.22% Ni from 4.00m
including: 5.50m @ 4.49g/t Pt+Pd+Au, 0.47% Cu & 0.30% Ni from 5.10m
and: 3.85m @ 3.87g/t Pt+Pd+Au, 0.57% Cu & 0.31% Ni from 28.75m
and: 3.65m @ 2.78g/t Pt+Pd+Au, 0.33% Cu & 0.27% Ni from 45.10m
Drill-hole TBND029: 38.40m @ 1.11g/t Pt+Pd+Au, 0.13% Cu & 0.16% Ni from 2.60m
including: 14.95m @ 1.96g/t Pt+Pd+Au, 0.23% Cu & 0.20% Ni from 7.05m
including: 5.10m @ 2.82g/t Pt+Pd+Au, 0.33% Cu & 0.28% Ni from 12.50m
Hole TBND028 was drilled beneath hole TBND027 (Figure 3) and hole TBND029 intersected mineralisation up to approximately 15m along strike to the north of hole TBND027.
High-grade intervals associated with 1cm-wide massive sulphide veins included:
Drill-hole TBND027: 1.05m @ 19.85g/t Pt+Pd+Au, 1.61% Cu & 1.09% Ni from 15.75m
Drill-hole TBND028: 0.30m @ 12.46g/t Pt+Pd+Au, 1.42% Cu & 0.64% Ni from 24.05m
0.45m @ 15.85g/t Pt+Pd+Au, 2.86% Cu & 1.16% Ni from 29.20m
0.40m @ 9.16g/t Pt+Pd+Au, 1.49% Cu & 0.68% Ni from 39.80m
The presence of massive-sulphide veins is significant as they indicate potential for a massive-sulphide body of high-grade mineralisation within the peridotite intrusion.
These results further validate the exploration model for the Current Lake peridotite wherein better mineralisation was anticipated in the central part of the shallow peridotite intrusion to the west of the previous drilling (Figure 3). Magnetic modelling of a recent detailed surface magnetic survey indicates the general disposition of the peridotite illustrated in Figure 3 may extend the entire length of the magnetic anomaly at Current Lake – a strike extent of some 1.5km (Figure 2). The width and depth of the peridotite intrusion is likely to vary along strike. This magnetic anomaly will be tested by drilling from the frozen surface of the lake in the Canadian winter; this drilling program is currently scheduled to commence in January 2008.
Assay results from the remaining three holes are anticipated within the next few weeks along with those from the hole drilled at Beaver Lake (Figure 2).
Two diamond drill-holes have just been completed from the same pad in the southern part of the Current Lake magnetic anomaly (Figure 2) approximately 830m south of the holes described above. The first hole drilled at an inclination of 45 degrees to the west intersected a 41m-thick zone of peridotite from 32m with 2-5% disseminated sulphides. The second hole drilled at an inclination of 75 degrees to the west intersected a 10m thick peridotite unit from 80m depth, to the east of the first intersection. Assay results for these holes are anticipated in 4-5 weeks. These intersections indicate a similar geometry for the peridotite as that seen in the north (Figure 3). These were the last holes in the current program and the drill-rig is currently being de-mobilised from site. As previously announced, the next drilling program is planned to commence in mid-November.
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Exploration in Canada is being undertaken by a wholly owned subsidiary of Magma Metals Limited, Magma Metals (Canada) Limited (“Magma Canada”). Magma Canada is earning a 100% interest in the Thunder Bay North and Beaver Lake projects, subject to a 3% net smelter royalty (NSR). Magma Canada has the right to acquire 1% of the NSR.
Keith Watkins
Managing Director
Magma Metals Limited