copper discovery for krucible

l know not many are into Krucible.....but for any holdersd and newbies, a summary of last weeks announcements made available by a friend of mine.

Krucible Metals Limited (KRB) announces copper discovery and also a phosphate update.

Last week Krucible metals (KRB) announced an update summary which mentioned their new copper discovery on the edge of the Simpson Desert.

The details released so far are limited, with 8 holes having been drilled before the drill rig’s motor blew up! This turned out to be a blessing in disguise as since then KRB have conducted soil and lag sampling programs which have given them a very good handle on where to drill next.

The initial holes were guided (when not influenced by sand dunes) by the surface mineralization, and results so far show that one of the first holes hit 27meters of copper mineralization grading 0.4% copper from the 9m level, with a 3m high grade zone running 2.4% copper from the 12m level.

These results are a significant exploration success as Tony Alston has been wandering around that part of the world for 10 years and has never come close to finding grades this high before! Surface sampling has found gold in the same area so now that the drill is about to start drilling again hopefully we will get some more exciting results! The nearest copper/gold mineralization to this discovery is over 200 kilometers away so it is what we call “Elephant country” in the industry, that is to say, giant ore-bodies could be found out there where few explorers have been before.

KRB have also released a presentation concerning their high grade phosphate deposit where further drilling south of the previous drilling programs has confirmed more good phosphate grades (but shallower), just south of the Phosphate Hill mine belonging to Incitec Pivot Limited (IPL). So now KRB has an inferred resource of 8.3Mt at 27.3% P2O5 with a cut off of 20%. 5Mt of this material grades over 30% P2O5 which is very high grade phosphate! KRB are working on a Pre-feasibility study which will tell them exactly how much it will cost to start mining and also what the mining costs and potential profits will be with an anticipated start in 2011. Australia still imports some phosphate from Morocco so you would have thought putting this phosphate deposit into production would be profitable. If I were IPL I would be keen to buy a company who had found a significant deposit over the boundary from my mine and were threatening to go into production/competition!