copper hill resource increased to 136 million tonn

GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
22 Edgeworth David Ave
Hornsby NSW 2077
Phone (02) 9482 8833
Fax (02) 9482 8488
8 August 2006
Copper Hill Resource Increased to 136 million tonnes
Drilling at Copper Hill over the past three months has resulted in an increase in the
resource estimate by 31 million tonnes.
Hellman & Schofield Pty Ltd has estimated a new Indicated and Inferred Resource at
GCR's 100%-owned Copper Hill project. The new resource estimate is shown below. The
May 2006 estimate is also shown, for comparison.
Copper Hill Resource – August 2006 and May 2006 - 0.2% copper cut-off
Parameter August 2006 May 2006
Resource 136 million tonnes 105 million tonnes
Grade 0.33% Cu and 0.32 g/t Au 0.33% Cu and 0.33 g/t Au
Gold equivalent grade 1.09 g/t gold* 1.08 g/t gold*
Contained copper 455,000 tonnes 344,000 tonnes
Contained gold 1.4 million ounces 1.1 million ounces
Contained gold equivalent* 4.7 million ounces 3.6 million ounces
New assay results from 101 holes, comprising 10,400 metres of assayed intervals, were
added to the database, increasing the previous estimate of 105 million tonnes to 136
million tonnes. The cut-off grade of 0.2% copper remains the preferred basis for reporting
the resource estimate and reflects Copper Hill’s positive infrastructure, metallurgical and
mining attributes.
New zones of chalcopyrite mineralisation, currently being drilled at Copper Hill North, have
not been included in this resource estimate and assays are awaited. The current 15,000m
drilling program continues.
Details of the resource estimates are tabulated below, at a 0.2% copper cut-off.
Copper Hill Resource Estimates – August and May 2006 - 0.2% copper cut-off
August 2006 Estimate May 2006 Estimate
Parameter Indicated Inferred Total Indicated Inferred Total
Tonnes (Mt) 79.9 56.1 136.0 26 79 105
Copper (%) 0.36 0.30 0.33 0.38 0.31 0.33
Gold (g/t) 0.35 0.27 0.32 0.42 0.30 0.33
Gold Equiv. (g/t) * 1.18 0.96 1.09 1.29 1.01 1.08
% of total tonnes 58.8% 41.2% 100% 25% 75% 100%
The new resource model is currently being used by AMDAD Pty Ltd for pit optimisation
studies. Results are anticipated in mid-August.
GCR Managing Director, Mr Kim Stanton-Cook, said today
“The Copper Hill resource continues to grow as our systematic drilling progresses,
and further additions will be made as a result of the current program. AMDAD’s pit
optimisations will allow us to model new copper and gold production rates but it is
already clear that in the first few years over 25,000 tonnes of copper and 80,000
ounces of gold could be produced annually.”
GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
2
Enquiries: Kim Stanton-Cook, Managing Director on [email protected]
* * * * * *
Golden Cross is a gold and base metals explorer holding tenements in the Lachlan Fold
Belt and Curnamona Province of New South Wales. GCR is applying maximum effort to
take the Copper Hill project forward.
Notes
The Resource Estimate was calculated by Dr Phillip Hellman, FAIG, a director of Hellman & Schofield Pty Ltd
(“H&S”), specialists in resource estimation. Dr Hellman 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.
H&S has accepted the data provided by GCR in good faith. GCR takes responsibility for Table 1 issues (JORC
Code 2004).
Subject to the above paragraph, the information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Kim Stanton-Cook, who is a member of the
Australian Institute of Geoscientists, is a full-time employee of GCR, and 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”. Kim consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
Approximately 70% of the resource reports to an open pit based on preliminary pit optimisation studies
which result in a lower economic cut-off Cu grade of slightly less than 0.2%. These studies are based on
metal price assumptions of $450/oz for gold (US$0.70 = A$1) and US$1.80/lb for copper and a 10mtpa
throughput. The resource includes approximately 6mt of oxide and 2mt supergene copper mineralisation.
Assays of samples from open hole percussion drill holes have not been used for resource estimation. It is
assumed that barren dykes of interpreted horizontal widths exceeding five to ten metres will not act as
diluents during a mining operation. 206 density determinations were used for conversion of volumes to
tonnages. Assays from Golden Cross holes GHCR001-107, 109-182, 184-188, 191 & 210 were available for
the estimate reported here.
*Gold Equivalent: Gold grade g/t + (copper % grade x 2.3), using a gold price of US$400 and
copper price of US$3000/tonne) with no allowance for differential metal recoveries. Quoted
significant figures should not be interpreted to denote precision.