erayinia project – drilling update

24 Mumford Place, Balcatta, WA, 6021 ph: +61 8 6241 1888 fax: +61 8 6241 1811
Website: www.tantalumaustralia.com Email: [email protected]
ACN 009 127 020 ABN 58 009 127 020
T A N T A L U M
A U S T R A L I A N L
17 March 2006
The Announcements Office
Australian Stock Exchange Ltd
Level 3, 20 Bridge Street
SYDNEY NSW 2000
By ASX Online Transmission
Dear Sir,
Please find attached ASX/Media release regarding Erayinia Project – Drilling update
assay results.
Yours faithfully
Timothy King
Company Secretary
24 Mumford Place, Balcatta, WA, 6021 ph: +61 8 6241 1888 fax: +61 8 6241 1811
Website: www.tantalumaustralia.com Email: [email protected]
ACN 009 127 020 ABN 58 009 127 020
T A N T A L U M
A U S T R A L I A N L
17 March 2006 ASX Code: TAA
ASX ANNOUNCEMENT/MEDIA RELEASE
REVERSE CIRCULATION DRILLING INTERCEPTS SIGNIFICANT ASSAYS IN
SULPHIDE MINERALIZATION – ERAYINIA PROJECT (TAA EARNING 80%)
HIGHLIGHTS
• All seven holes drilled have intersected massive sulphide mineralisation
• All holes have returned significant zinc and related base metal assays
• The best intercepts are as follows:
EC25 10 metres at 3.49% Zn, 0.36% Pb, 311ppm Cu, 44ppm Ag and 0.10ppm Au
Incl. 2 metres at 9.71% Zn, 1.33% Pb, 502ppm Cu, 156ppm Ag and 0.10ppm Au
EC30 5 metres at 3.73% Zn, 0.24% Pb, 300ppm Cu, 23ppm Ag and 0.24ppm Au
Incl. 2 metres at 7.07% Zn 0.49% Pb, 470ppm Cu, 47ppm Ag and 0.25ppm Au
• The sulphide horizon appears to be thickening with depth and the metal
grade is increasing.
Tantalum Australia NL (TAA) is pleased to announce the results of assays of samples
collected from the recently completed program of RC drilling. Previously it was
announced (see release dated 24 February and 3 March 2006) that the program
comprising seven inclined holes, for an advance of 826 metres, intersected massive
sulphide mineralization in every hole.
Erayinia Project is a joint venture with Great Gold Mines NL located about 130
kilometres south east of Kalgoorlie covering an area of about 275km2 and is near the
south eastern margin of the Archaean Yilgarn Craton adjacent to the Albany-Fraser
tectonic zone. In September 2005 it was announced that the JV was renewing
exploration for base metals in the region; the recently completed drilling program was
a direct continuation of the 2005 exploration program.
3
The exploration concept being tested is that the Erayinia mineralization represents an
Archaean Volcanic-hosted Massive Sulphide (VMS) deposit. Previous detailed
magnetometry identified a series of “thumb-print” anomalies in a constant stratigraphic
position. Most of the area of these anomalies has Tertiary limestone and younger sand
dune cover between 20 and 50 metres deep. However, the E1 anomaly has only thin
soil and sand cover and consequently was selected for a ground, electromagnetic
survey. A weak conductor was detected at about 100 metres depth; subsequent
drilling revealed the presence of zinc and minor lead-copper-silver anomalism in a 2 to
4 metre wide massive sulphide (pyrrhotite-pyrite) lens.
The September 2005 and recent drilling programs have made progressive step-outs at
about 50 metre intervals, both along-strike and down-dip, from the initial intersection in
ERC 8. Currently, the massive sulphide unit is traced on five, nominally 50 metre
spaced sections and up to 200 metres down dip (approx 170 metres vertical depth).
The recent drilling results are tabulated:
Hole ID MGA
North
MGA East Dec. Final
Depth
Down Hole
Intercept
Interval Zn
%
Pb
%
Cu
(ppm)
Ag
(ppm)
Au
(ppm)
EC24 6538738 484580 60° 116m 106-113 7m 1.92 0.08 208 3 0.09
EC25 6538644 484580 75° 189m 173-183 10m 3.49 0.36 311 44 0.10
Inc. 181-183 2m 9.71 1.33 502 156 0.10
EC26 6538702 484527 60° 69m 62-65 3m 2.61 0.21 162 29 0.13
EC27 6538699 484544 75° 109m 92-104 12m 2.33 0.25 209 23 0.10
EC28 6538790 484543 60° 61m 47-49 2m 0.94 0.28 127 18 0.07
EC29 6538788 484563 60° 72m 68-71 3m 2.54 0.16 217 12 0.07
EC30 6538601 484616 60° 210m 201-206 5m 3.73 0.24 300 23 0.24
Inc. 203-205 2m 7.07 0.49 470 47 0.25
Based on 0.5% Zn cut.
All holes have an azimuth of 270°.
Intercept widths are approximately equal to true widths except in holes declined at 75o where intercept
widths are 50% of true width.
The geometry of the sulphide unit is reasonably predictable given the success rate of
drill testing to date; within 50m of the surface it appears to dip at about 50° to the east
but below that level it steepens.. South of section 6538600N the unit has not been
intersected; which may be because the unit plunges to the south away from the
surface in excess of 40° and further drilling is required. Northwards, the unit continues
however, it appears to be thinning and is lower grade (EC 28 & 29).
Significantly, as shown by holes EC25 (1 metre at 12.6% Zn, 1.93% Pb and 210ppm
Ag) and EC30, the sulphide unit appears to be thickening with depth and the grade is
increasing.
The sulphide unit contains up to 80% pyrrhotite. Zinc sulphide and graphite are
present. The dearth of copper is attributed to the zoning-effect usually displayed in
VMS deposits. (Copper has been detected, in earlier geochemical drilling, about 100-
200 metres east of the current prospect).
4
The lens of massive sulphide is hosted by a 20 to 30 metre wide laminated chert unit
located on the contact between a felsic volcanic sequence stratigraphically overlain by
an intermediate/mafic volcanic sequence. The felsic volcanics are highly siliceous
(quartz (chert), sericite schists) which may be the products of massive hydrothermal
alteration or are the relics of felsic volcanic members. Intercalated with these white
rocks are green, chlorite schists and weakly foliated amphibolites. These latter rocks
are quite felsic and possibly represent progenitors more felsic than tholeiitic basalts.
They also contain manganese garnets and disseminated iron sulphides and magnetite.
The whole sequence appears to be overturned.
Interpretation of the previous and recent drilling data is underway. Based on a
preliminary view the objectives of the next stage of exploration are likely to be:
• The exploration and research at E1 – anomaly will continue; a precollar for a
core hole has been prepared on the same section as EC14 – EC25. This will
provide material for detailed petrography and geochemistry.
• Six other “thumb-print” magnetic anomalies will be investigated by ground EM
means.
• The strike extents, north and south of the “thumb-print” anomalies will have
detailed magnetometry flown as a precursor to EM and possible drilling.
• Drilling to confirm the conceptual model of a potentially copper rich feeder zone
existing 100-200 metres to the east of E1.
A further more detailed announcement of the next stage program of exploration will be
made in due course.
For more information contact:
Imants Kins
Managing Director
Tantalum Australia NL
Tel: 61 8 6241 1806
Mobile: 0438 359 705
The information in this Report that relates to Exploration results is based on information compiled by Michael
Fotios who is a member of the Australasian Institute of Mining and Metallurgy. Michael Fotios is a
Consultant Geologist and prior to this was an employee of the Company for over 11 years. Michael Fotios
has 15 years of experience as a geologist.
Michael Fotios has sufficient experience, which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity for which 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. Michael Fotios consents to the inclusion in the report of the matters based on his
information in the form and context in which it is used.