drilling imminent at the cabbage tree creek

26 September 2007
The Manager
Company Announcements Office
Australian Securities Exchange (ASX)
Electronic Transmission
5 Pages
Dear Sir/Madam
DRILLING IMMINENT AT THE CABBAGE TREE CREEK HIGH-GRADE
COPPER-GOLD PROSPECT
TIMING OF ROSEBY COPPER PROJECT STUDY RESULTS
HIGHLIGHTS
Cabbage Tree Creek
Xstrata Copper has advised that, as part of the Roseby SEEP joint venture operations, a threehole
diamond drilling programme totalling 1650 metres is scheduled to commence this week
at the Cabbage Tree Creek Prospect located three kilometres north north-west of the Little
Eva deposit (Figure 1). The program is targeting high grade copper-gold mineralisation and
will test 750 metres of a possible 1000 metre strike length. It is designed to identify zones of
thicker, high grade mineralisation as well as demonstrate continuity of the mineralisation
along strike.
Better results from the 2006 drilling included:
•
14m at 2.00% copper and 0.46g/t gold from 393m
including, 6m at 3.19% copper and 0.81g/t gold from 393m, and
• 14m at 1.30% copper and 0.29g/t gold from 451m
Roseby
Results of the revised, 4Mtpa, Roseby Development Study are expected to be available for
release to ASX by the end of October 2007.
HEAD OFFICE
Level 2,
91 Havelock Street, West Perth
Western Australia 6005
POSTAL ADDRESS
P O Box 1466, West Perth
Western Australia 6872
Phone: +61 (0)8 9486 8400
Facsimile: +61 (0)8 9486 8700
Email: [email protected]
Website: www.universalresources.com.au
ASX Announcement 26 September 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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DETAILED REPORT
Figure 1: Location Plan showing Cabbage Tree Creek and Little Eva Prospects
(superimposed on TMI aeromagnetic image)
The Cabbage Tree Creek prospect was discovered in 2006 by Xstrata Copper after the second
of three drill holes intersected high-grade copper-gold mineralisation. The drilling, which
was part of the Roseby Project SEEP program, was targeting an induced polarisation (IP)
anomaly on the flank of a magnetic anomaly. The anomaly source is in Proterozoic bedrock
beneath approximately 250 metres of Phanerozoic sedimentary cover.
Two 14 metre wide (down-hole thickness) zones of copper-gold mineralisation were
intersected in the discovery hole, CTD03 (Figure 2). Mineralisation consists of chalcopyrite
dominant sulphides present as veins, fracture fill, blebs and breccia matrix, hosted within
quartz-dolomite altered calc-silicate and pelite. The best intersections are listed in Table 1.
Table 1: Best Drill Intercepts: Cabbage Tree Creek Prospect
INTERSECTION HOLE No FromI NTERSETCoT ION (mL) ength Copper (%A)S* SAYSG old (g/t)
CTD03 393 407 14 2.00 0.46
Incl 393 399 6 3.19 0.81
CTD03 424 428 4 0.66 0.15
CTD03 451 465 14 1.30 0.29
*Calculated at a 0.4 % copper cut-off. The above results include some internal waste within the mineralised zones. Where mineralised drill
intersections are quoted, the quoted copper and gold assays are the weighted average of the copper and gold assays over the relevant
interval. Each assay is weighted by the length of the sample. Intervals referred to are down-hole intercept lengths, not true widths. No
upper copper cut-offs are applied.
ASX Announcement 26 September 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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Figure 2: Summary section of Discovery hole CTD03, superimposed on Induced Polarisation
conductivity image and interpreted downhole electromagnetic conductors
ASX Announcement 26 September 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
4
Copper sulphide mineralisation in drill hole CTD02 was limited to trace amounts of
chalcopyrite and bornite, with the best interval returning 2m at 0.35% copper from 343m.
Modelling of the geophysical data indicates CTD02 may have drilled over the top of the
target horizon.
A down-hole IP survey confirmed the copper-gold mineralisation in drilling as the source of
the surface IP anomaly Modelling of down-hole electromagnetic (EM) data indicates
mineralisation within CTD03 is present as a sheet dipping 55º ENE from the base of the cover
sediments. The mineralisation remains open at depth as well as along strike.
An additional surface IP survey was completed in June 2007, designed to increase resolution
of the anomaly at depth. This survey has demonstrated the IP anomaly associated with
mineralisation in CTD03 extends at least 500 metres north and south of the discovery hole.
Peter Ingram
Chairman and Managing Director
The information contained in this report that relates to exploration results has been compiled by Maurice Hoyle and John Bartlett,
employees of Universal Resources Limited. Maurice Hoyle is a Fellow of the Australasian Institute of Mining and Metallurgy and John
Bartlett is a Member of the Australasian Institute of Mining and Metallurgy. Maurice Hoyle and John Bartlett have sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and the activity which they are undertaking as a
Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Maurice Hoyle and John Bartlett consent to the inclusion in the report of the matters based on their information in the form
and context in which it appears.
About the SEEP Agreement
In June, Mount Isa Mines Ltd, a wholly owned subsidiary of Xstrata Queensland Limited
(Xstrata Copper), notified Universal of their decision to exercise the SEEP Option pursuant
to the Heads of Agreement – Roseby Project dated 11th March 2005.
The mineralisation which falls within the SEEP comprises primarily deeper sulphides below
Universal’s existing deposits at Roseby. The total footprint of the area enclosed by SEEP is
approximately 174sq km of the 1,773sq km of tenements in the Roseby tenement package
(Figure 3). The location of the lease package is in the Mt Isa Eastern Fold Belt of North West
Queensland. The SEEP area surrounds but excludes copper and copper-gold resources,
developed by Universal as part of the Roseby Copper Project, to specified depths within the
SEEP area.
Xstrata Copper may earn a 51% interest in SEEP on the earlier of funding $15 Million of
exploration and related work on SEEP or by sole funding a minimum of $10 Million of
exploration work and completing a detailed feasibility study into a mining and processing
operation on SEEP. This work will be managed by Xstrata Copper and completed as
expeditiously as possible but in any event not later than 30th June 2012.
If Xstrata Copper earns a 51% interest in SEEP, it must then also purchase a 51% interest in
the balance of the Roseby Copper Project at a price to be negotiated at the time of purchase.
Should agreement not be reached, the price is to be determined by an independent valuer.
ASX Announcement 26 September 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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Figure 3: Location of SEEP area within Roseby Project tenements