drilling results high copper grades

A new structural interpretation of the Nil Desperandum copper deposits has been developed,
based upon geological mapping of old mine workings and previous drilling results. Recent
drill testing of the deposits intersected high-grade copper-gold mineralisation, confirming the
new interpretation, and demonstrating that further drilling could significantly up-grade the
status of this project.
High-grade mineralisation on the main northeast trending fault structure is present in lenses
from 2 to 30m thick and averaging about 10m. These high-grade zones occur within a 40
metre thick zone of mineralisation with a strike length of up to 400 metres.
High-grade mineralisation was also intersected beneath the Lady Maria open-pit on a
northwest-trending shear zone. Although no production records are available, it appears that
substantial tonnages of copper ore were mined from the deposit.
Notable new drilling intersections include:
• NDR017 112 – 131metres; 19 metres @ 2.32% copper, 0.56 g/t gold
Incl. 113 -123 metres; 10 metres @ 3.53% copper, 0.86 g/t gold
• NDR021 21 – 27 metres; 6 metres @ 5.22% copper, 0.84 g.t gold
• NDR020 88 – 91 metres; 3 metres @ 1.21% copper, 0.09 g/t gold
Further drilling is planned.
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: Nil Desperandum Drilling, 4 October 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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DETAILED REPORT
Wholly owned tenements of the Company constituting the Mt Isa Regional and Roseby
Projects are shown in Figures 1 and 2. These tenements secure a total area of approximately
2,790 square kilometres of ground within an approximately 75 kilometre radius of Mt Isa or
Cloncurry, both of which are in the Mt Isa Inlier mineral province in North West Queensland.
Figure 1. Universal Project Locations
The Mt Isa Inlier is host to a variety of major metal deposits including copper, copper-gold,
zinc and silver, notably including very significant iron oxide-copper-gold deposits at Ernest
Henry, Osborne and Selwyn within the Eastern Fold Belt of the Proterozoic Mt Isa Inlier.
ASX Announcement: Nil Desperandum Drilling, 4 October 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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Figure 2. Universal’s Tenements in the Mt Isa Inlier
EPM 14366 – Bushy Park
The location of the Bushy Park tenement is shown in Figure 2. The Nil Desperandum
prospect is located approximately 68 kilometres southeast from Mt Isa and lies close to the
road and railway line from Duchess to Mt Isa.
Regional Geology
The host sequence comprises strongly folded and regionally metamorphosed acidintermediate
and basic volcanics of the Proterozoic Argylla Formation which are intruded by
a variety of oxidized granites. The prospect lies within a strongly developed set of subparallel
northeast-trending major faults cross-cutting the regional fold system.
Prospect Geology and Mineralisation
The interpreted solid geology, derived from recent detailed mapping of the Nil Desperandum
prospect, is shown in Figure 3.
ASX Announcement: Nil Desperandum Drilling, 4 October 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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Figure 3. Interpreted Geology
Previous Work
Previous surface workings are centred upon three areas of sub-outcropping mineralisation:
• The Western workings;
• The Central Workings; and
• The Lady Maria pit.
These workings are located on two well-developed shear zones which are components of a
conjugate NE and NW trending fault-set.
Historical drilling (16 RC holes for 2054 metres) primarily targeted mineralisation associated
with the Western Workings.
Two drill-holes, testing the Central Workings, are unlikely to have intersected the main
mineralised lode beneath the pits.
Geology and Mineralisation
Tightly folded felspar porphyritic meta-volcanics and variously altered hornblende-biotite
schists, with associated minor quartzites, dominate the sequence at Nil Desperandum (Figure
3).
Mineralisation lies within hornblende-biotite schists located in or near the north-easterly and
north-westerly-trending fault zones. Mapping suggests mineralisation has preferentially
formed where the schists have a strong structural imprint. Mineralisation is interpreted to
occur as sub-parallel pitching shoots or pipe-like deposits, confined within the steeply dipping
faults. The host structures pinch and swell along strike and at depth.
Chalcopyrite, the main ore-forming mineral, and pyrite, are present as disseminations and
veinlets within the hornblende-biotite schist host and are occasionally associated with
discontinuous quartz veining. Magnetite alteration occurs as disseminations in the
hornblende-biotite schist and mineralisation is considered to be of the IOCG type.
ASX Announcement: Nil Desperandum Drilling, 4 October 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
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Drilling Programme
A 7-hole RC drilling program for 1033 metres was completed in July 2007. Drillhole collar
and location details are provided in Table 1 below.
Four holes tested the Western Structure, one hole the Central Workings and two holes tested
beneath the Lady Maria open-cut workings which are of substantial size, extending up to
200m in length and to 30m depth. Access close to the pit was constrained by the workings,
making the testing of shallow mineralisation difficult.
Drillhole details are listed in Table 1.
Table 1: Nil Desperandum Prospect – Drillhole Collar Details
Hole Co-ordinates Azimuth DIP DEPTH
No.
Prospect
AMG_N AMG_E (AMG) (Degrees) (metres)
NDR017 NIL DESPERANDUM 7645964 372831 306 -60 181
NDR018 NIL DESPERANDUM 7645951 372849 306 -60 199
NDR019 NIL DESPERANDUM 7646007 372873 306 -60 169
NDR020 NIL DESPERANDUM 7646046 372890 306 -60 151
NDR021 LADY MARIA 7645980 373263 36 -60 67
NDR022 LADY MARIA 7645795 373500 36 -60 109
NDR023 LADY MARIA 7645800 373625 216 -55 157
Drilling Results
Drilling in the NE trending structure has confirmed the presence of shoots or pipes of highgrade
mineralisation located within a 40 metre thick envelope of low-grade mineralisation:
• NDR017 112 – 131 metres; 19 metres @ 2.32% copper, 0.56 g/t gold
incl. 113 -123 metres; 10 metres @ 3.53% copper, 0.86 g/t gold
• NDR020 88 – 91 metres; 3 metres @ 1.21% copper, 0.09 g/t gold
Drilling on the northwest-trending shear intersected 6 metres of very high-grade
mineralisation below the Lady Maria open-cut:
• NDR021 21 – 27 metres; 6 metres @ 5.22% copper, 0.84 g.t gold
The drilling of hole NDR 021 intersected mineralisation at a shallower depth than anticipated
from structural mapping, suggesting a 45 degree south-westerly dip to the mineralistion rather
than the 75 degrees measured in the pits.
Assay data for all holes is provided in Appendix 1.
ASX Announcement: Nil Desperandum Drilling, 4 October 2007 UNIVERSAL RESOURCES LIMITED
ACN 090 468 018
6
Future Drilling Programs
Further drilling will be undertaken during the next quarter and will test both mineralised
structures for shallow high-grade copper-gold deposits. Targetting of mineralisation will be
augmented by down-hole electromagnetic surveys to locate zones of higher sulphide content.
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.
APPENDIX 1
Drilling Results: Nil Desperandum Prospect
Hole
ID From To Interval
Metres Cu (%) Au_gpt Total
Depth (m)
NDR017 112 131 19 2.32 0.56 181
incl. 113 123 10 3.53 0.86
NDR017 138