Page 1 of 618 August 2008Further High-Grade Copper and Silver...

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18 August 2008
Further High-Grade Copper and Silver intercepts at Mount Oxide
Perilya Limited (ASX: PEM) is pleased to announce continued exploration success from drilling at the Mount Oxide
copper and cobalt project in the Mt Isa region in Queensland.
Perilya’s latest round of drilling has confirmed further highly encouraging high grade copper and silver intercepts that
extend at depth and below the current resource.
The high grade intercepts returned from deeper drilling in drill hole MOXD104 (Figure 1) included:
• 17m at 4.2 % copper from 248m,
• 32m at 4.5 % copper (uncut) from 287m,
• 12m at 15.3 % copper (uncut) and 161 g/t of silver from 345m.
MOXD104 was drilled approximately 30 metres south of drill hole MOXD089, which previously reported (5th June 2008) drill
intercepts including 31m at 6.2% copper from 346m and 23m at 8.9% copper from 395m.
Perilya’s Executive Chairman, Patrick O’Connor, said our new drilling results, which included 12m at 15.3% copper from
345m, were primarily below the current resource. They also further demonstrate the continuity of mineralisation along
replaced sedimentary horizons and the excellent potential at depth.
“A further hole MOXD105 has also intercepted good visual mineralisation 90m south of the initial intercept and results
are pending.”
“All these results bode well for the commercialisation and development process, which has commenced, with a number
of overseas and Australian parties formerly expressing interest in participating in the further development of the Mount
Oxide copper and cobalt project either in partnership with Perilya by way of joint venture, or through outright purchase of
the project.”
“The continuation of the high grade zones at depth and outside the current resource adds to the project and further
demonstrates its potential,” he added.
For further information:
Investors: Patrick O’Connor Media: Darryl Edwards
Executive Chairman Company Secretary
Phone: +61 8 6210 2000
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Mount Oxide Copper and Cobalt Project - Drill Program and Results
In April, a program of diamond drilling commenced with two rigs targeting extensional mineralisation to the north and at
depth of the current Mount Oxide resource.
Drill hole MOXD104 was targeted to investigate potential at depth around the recently released high grade intercepts
from MOXD089 and to understand the geology and plunge of mineralisation. Hole MOXD104 was drilled immediately
south of the MOXD089 intercepts within approximately 30m and at a slightly higher elevation and has intersected
replaced sedimentary horizons with strong hematite alteration associated with a structurally complex zone.
Mineralisation is hosted in brecciated sediments and consists of coarse veins of bornite and chalcocite. The high grade
zone is interpreted to be a structural intersection at depth off cross cutting structures and a parallel structure to the main
mineralised fault. Lower grade zones between contain strong haematite alteration. The high silver grades are also of
significant interest in this deeper zone. The intercepts are interpreted to be oblique to the mineralisation and interpreted
to be at least 60% of true thickness.
The significant intercepts from MOXD104 include:
• 17m at 4.2 % copper from 248m,
• 32m at 4.5 % copper (uncut) from 287m,
o which includes 1m @ 21.3 % copper from 306m, and 2m at 24.3 % copper from 312m,
• 12m at 15.3 % copper (uncut) and 161 g/t of silver from 345m
o which includes 5m at 33.0 % copper from 345m
Previously reported (5th June 2008) significant intercepts from drill hole MDOX089, include:
• 22m at 6.3 % copper and 0.3 % cobalt from 258m
• 19m at 3.7 % copper from 315m
• 31m at 6.2 % copper from 346m
• 23m at 8.9 % copper from 395m
Further follow up drilling at depth is also providing significant encouragement with recent hole MOXD105 intersecting
good visual mineralisation approximately 90m south of the MOXD89 intercept in a similar geological setting again
demonstrating a plunge direction and continuity at depth, the results are still pending.
Results are also reported from holes drilled north and above the MOXD89 intercept that contained only altered zones
demonstrating the geological complexity in the zone.
These mineralised copper zones at depth are outside of the current resource, which is very encouraging for the addition
of significant high grade resources at depth.
A track mounted rig has recently arrived on site and is testing some of the steep topographic zones north of the planned
open pit to test at shallow depth below outcropping copper mineralisation. Good visual mineralisation has been noted
during logging with the results still pending from this drilling.
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Figure 1. Mt Oxide Resource Drill Section 70800Mn, looking north with resource model and MOXD089 and
MOXD104 drill holes.
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Figure 2. Location Plan of drill holes at Mount Oxide deposit with new holes reported.
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Table 1. Mount Oxide Drill Results 0.5 % Cu cut off, Maximum Internal Dilution 2m, >3 m%. No cut
Hole ID Northing Easting Azi Dip From To Interval Cu Ag Co
(m) (m) (m) (%) (ppm) (ppm)
MOXD098 7845495 331170 270 -75 54 60 6 1.2 5 132
119 125 6 2.0 9 178
146.8 150 3.2 2.0 8 435
MOXD099 7845742 331041 297 -61 33 37 4 1.0 1 963
48 53 5 0.8 1 207
75 83 8 1.4 3 415
86 96 10 0.8 3 782
104 110 6 0.7 4 925
MOXD100 7845742 331041 268 -73 80 87.9 7.9 0.8 6 3014
MOXD101 7845248 330943 267 -70 177.5 178.8 1.3 4.3 22 162
183.9 188 4.1 1.8 9 143
MOXD102 7845304 331022 269 -56 220 223 3 1.7 15 210
240.4 244 3.6 2.3 21 238
308 309 1 3.1 19 120
319 322 3 2.6 23 33
MOXD103 7845515 331128 260 -57 87 95 8 0.7 2 138
259.7 262 2.3 10.3 88 73
MOXD104 7845456 331102 265 -55 156.8 160 3.2 2.2 12 96
171 175.9 4.9 1.4 15 572
248 265 17 4.2 49 469
287 319 32 4.5 44 174
incl 306 307 1 21.3 183 90
incl 312 314 2 24.2 205 65
345 357 12 15.3 161 166
incl 345 350 5 33.0 334 96
incl 346 347 1 58.1 531 280
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Background to the Mount Oxide Project
(100% owned)
The Mount Oxide project is located in the
Mount Isa region Western Succession that
includes several major sediment hosted
breccia copper deposits. The deposit was
intermittently mined between 1920 and 1971
by way of a small open pit and underground
operation. The project lies 25 kilometres north
of the existing Mount Gordon mine operated
by Aditya Birla Minerals Limited.
The deposit is a chalcocite dominated system
associated with strong silica-hematite
alteration and copper mineralisation
developed on the margins of the hematite
core. The mineralisation is hosted in a
sedimentary package associated with a
strong structural control along the northeast
trending Mount Oxide fault and associated
cross cutting faults.
Competent Person Statement
The information in this report that relates to Exploration Results and Mineral Resources is based on information
compiled by Mr. Bruce G.D. Hooper who is a full-time employee of the company and is a member of the Australian
Institute of Geoscientists. Bruce Hooper has sufficient experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity 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’. Bruce Hooper consents to the inclusion in the report of the matters based on his information in the form and
context in which it appears.
Background to Perilya
Perilya Limited is an ASX 200 Australian base metals mining and exploration company. Perilya is investing in the
development of its three major projects located in the Broken Hill, Mt Isa and Flinders regions as well as exploration in
the surrounding tenements.
For more details, visit www.perilya.com.au