drilling update

This looks like a very good announcement.... this stock has been flogged to death - can it rise from the ashes
16 October 2008
Company Announcements Office
Australian Stock Exchange Ltd
STEIGLITZ DRILLING UPDATE
DRILLING INTERSECTS LARGE GOLD MINERALIZED STRUCTURE
• Gold mineralized intercepts of 8 to 19 metres in three RC holes
• Gold in range 0.100 to 1.055 ppm
• Strong gold-arsenic-antimony association
• Bulk tonnage disseminated gold mineralization model supported
• Further drilling planned
A large gold mineralised structure was intersected by the first three reconnaissance reverse
circulation drill holes at Oroya’s Steiglitz Gold Project in Victoria.
All three holes successfully intersected gold mineralisation over true widths ranging from 8
to 19 metres in the targeted Hanover Fault shear structure. Analytical results confirm a
strong gold-arsenic-antimony association (Figure 2).
Gold occurs consistently within the mineralised shear zone at levels in the range 0.100 to
1.055ppm (g/t) gold.
Elevated arsenic occurs in the range 75 to 1745 ppm, in direct relationship with the gold
mineralization.
Elevated antimony occurs in the range 23 to 53 ppm in the shear, in close association with
gold and arsenic and also in low but broadly elevated levels in the wall rocks.
The three RC holes, ORC001-003 inclusive, form a single fence of holes spaced 30 to 40
metres apart. These were drilled at 60° inclination to the south to intersect the northdipping
Hanover Fault between 13 and 74 metres below surface level. Samples were
collected over 1 metre intervals, for a total of 250 samples.
This is the first exploration drilling ever undertaken in this historic goldfield which has
recorded gold production of over 127,000 ounces, mainly from underground mining of
quartz vein-hosted gold deposits. Oroya’s target is bulk tonnage disseminated gold
mineralisation hosted by the Hanover Fault, a major northeast-southwest trending shear
structure (Figure 1).
The geochemical patterns observed in the drill holes are consistent with those obtained in
geochemical soil sampling along the surface trace of the Hanover Fault, where gold reported
in the range 2-30ppb, arsenic 10-50ppm and antimony 3-40ppm, over a strike length of
about 4 kilometres.
Oroya
Rock types intersected in the drilling are intensely sheared Ordovician slate and minor
sandstones, black shales and fault-plane gouge, with brecciated and boudinaged quartz
veining. Base of oxidation is approximately 19 metres below natural surface level.
The broad zones of fault plane gouge are the result of intense shearing movement within
the fault structure, which has been mapped at widths up to 50 metres at surface. The
gouge caused some drill penetration problems and the program was, as previously
announced (ASX, 12 September 2008), suspended to source drilling equipment better able
to handle these drilling conditions.
Gold is associated with very fine grained disseminated sulphides and brecciated and
boudinaged quartz veinlets. Oroya plans to undertake mineralogical studies to determine
the actual mode of occurrence of the gold.
The planned program was for three more fences totalling 8 to 10 reverse circulation holes to
be drilled along strike to the southwest, closer to the historic gold producing Hanover and
New Mariners gold mines. Oroya is now considering diamond drilling as the next step, to
allow the collection of structural geology data which may assist in determining more precise
controls on mineralization, before committing to further reverse circulation drilling.
Oroya is very encouraged by these drilling results, which confirm the presence of a large
gold mineralised structure and provide valuable information to assist design of future
drilling.