ASX ANNOUNCEMENT26 May 2008Copper intercepts at White Lead...

ASX ANNOUNCEMENT
26 May 2008

Copper intercepts at White Lead Prospect

Syrah Resources (ASX:SYR) announced today that shallow intercepts up to 1.69% Cu over 8m have been recorded at the White Lead Prospect, 25km east of Lyndhurst, in northern South Australia.

A seven hole program at 50m line spacing tested for copper mineralisation along the strike of the White Lead lode. Two step-back holes were drilled to assess potential deeper mineralisation. The drill holes were collared 20m to 50m south of the mineralised lode and angled at 600 to the north.

Best results were recorded in the central part of the target area, including drill holes WLDH002, WLDH003 and WLDH006.

WLDH002: 26m @ 0.87% Cu, including 8m @ 1.69% Cu
WLDH003: 18m @ 0.91% Cu, including 10m @ 1.29% Cu
WLDH006: 30m @ 0.80% Cu, including 12m @ 1.61% Cu

The drill results showed that high grade copper is not restricted to the shale/siltstone horizon that hosts the White Lead lode. The highest copper grades in drill holes WLDH002, WLDH003 and WLDH006 were found to be present in the overlying siltstone unit.

The copper occurs as secondary mineralisation in quartz veins, joints and fractures within the host rocks. Copper minerals included malachite (oxide) and chalcocite (sulphide), which are typical of near-surface supergene enrichment.

The mineralisation is within 40m of surface and is open along strike and in places, to the south. Deeper drilling failed to intersect significant copper in the Lyndhurst Diapir which is located to the north of the lode. Wide spaced historic drilling to the west of this area reported anomalous copper in the diapir rocks, close to the contact with the lode.

The prospective White Lead stratigraphy has a large number of historical workings and anomalous copper over a strike length of several kilometres, which shows that there is significant scope for extensions to the oxide mineralisation at White Lead. Additional drilling is planned.