Greater Pacific Gold Ltd's ActionGPN are vigorously...

Greater Pacific Gold Ltd's Action

GPN are vigorously investigating the extent of identified mineralisation and recent work has discovered 19 anomalous gold areas within their tenements. Of these, 10 are considered high priority targets and could host significant gold deposits.

On-going exploration programs will show GPN have an extremely high probability of yielding a resource in the 250,000 ozs category and a high probability of discovering even larger deposits

Tenements and Exploration Program

Yellow Rock Resources Ltd hold tenements at Gabanintha, near Meekatharra in Western Australia and in the Money Shoal Basin area in the Northern Territory.

The Money Shoal Basin holding covers 1000 km2 and is a promising prospective uranium area.

The Gabanintha tenement is one of great interest for uranium exploration with several anomalies already identified. It is situated close to the large Yeelirrie deposit and shares the same geological structure.

GPN has recently appointed UTS Geophysics to conduct an Airborne Geophysical Survey for the Gabanintha area.

Yellow Rock Resources Ltd is preparing a substantial exploration program for the Northern Territory holdings

Vanadium



Yellow Rock Resources Ltd is a wholly owned subsidiary of Greater Pacific Gold Ltd (GPN) and has been established to control the vanadium project at Gabanintha. The tenements are located 43 km south-east of Meekatharra and the site is easily accessible from the Great Northern Highway or the Sandstone Road.

History

In the early 1960s Mangore (Australia) Pty Ltd carried out aeromagnetic surveys, channel sampling and drilled some outcrops to check for vanadium mineralisation on the tenements. Consistent grades were returned over the chosen areas. There was no follow-up work.

In 1998 Intermin Resources NL started a percussion-drilling program and the results correlated well with the Mangore diamond drill holes.

At this stage the low price of vanadium (US$ 1.40 per pound) made further work uneconomic.

New Approach

Greater Pacific Gold Ltd acquired the tenements and in November 2000 commenced a substantial exploration and drilling program, which included 31 percussion holes.

This drilling confirmed the continuity of the vanadiferous magnetite and allowed the company to define a JORC Code Indicated Mineral Resource of 38,000,000 tonnes over the 8 km of the 9.5km strike length.

The value, using the lower cut-off grades of the resource, is:

Oxidized 20,638,000 tonnes at 0.49% V205
Unoxidized 17,021,000 tonnes at 1.05% V205
TOTAL 37,659,000 tonnes at 0.75% V205.


(Greater Pacific Gold Ltd Annual Report. Gabanintha Project 2005)

Gabanintha Vanadium Project
Outcropping vanadiferous magnetite


Gabanintha Tenement Map

Click to view (696 KB)

Exploration Potential of Ore Reserves

An initial feasibility study has been undertaken to estimate the level of ore reserves. The areas identified will be the subject of a further drilling program to prove them to a JORC compliant standard.

The early estimates have indicated possible ore reserves of more than 26,000,000 tonnes.

Mine Potential

Using the Indicated Mineral Resource of 38,000,000 tonnes and the possible ore reserves of 26,000,000 tonnes a mining operation would have an estimated life of more than 50 years.

The area is suited to open-cut mining as the mineral deposit has minimal overburden. It is expected that 1 to 1.5 million tonnes of ore would be treated annually.
Vanadium Future


Since 2000 the price of vanadium has soared from US$ 1.40 per pound to US$ 25.00 per pound in early 2005.

The need for vanadium, a steel-hardening agent, has grown through the unprecedented boom in high-grade steel production. The continuing economic expansion in China, India and South-East Asia shows no sign of stopping and the demand for vanadium will rise.