Results provide more firm evidence that areas surrounding known deposits contain significant additional high-grade mineralisation
Visible gold in the drill core
Current holes designed to complete electromagnetic (DHEM) surveys to the south and north of Perseverance
Diamond drilling will continue to test strike and depth extensions of known deposits at the Tindal's Mining Centre
Gold producer Focus Minerals (ASX: FML) is pleased to announce further significant high-grade gold intersections from the current round of drilling at the Tindal's Mining Centre, Coolgardie.
The results from two holes, which included high-grade down-hole intercepts of 0.95m at 170.94g/t, 3.14m at 12.1g/t, 0.95m at 21.33g/t and 5.76m at 3.61g/t (see Table 1), point to the prospect of further extensions in the Perseverance orebody, paving the way for increases in the current Resource and Reserve estimates.
Importantly, these high-grade intersections - including sections of visible gold - are outside of the current resource base and are over 100 metres below the current Perseverance workings. This reinforces the Company's belief that areas surrounding the known deposits have the potential to house additional high-grade mineralisation.
Planning is now underway to follow up these intersections and target further extensions to the south and at depth of the existing Perseverance Resource.
Focus has Resources of 1.9 million ounces including 93,000 ounces in Reserves. After already paying $16.8 million for the mill refurbishment, the Company has presently available cash and bullion totalling $19.4 million which allows the company to aggressively ramp up drilling programmes.
The Company posted a $3.15 million underlying operating profit for the past financial year after producing 41,400 ounces. Production is expected to climb to 80,000 ounces in 2010 and to more than 100,000 ounces in 2011.
Focus Chief Executive Officer, Mr Campbell Baird, said the results were immensely exciting and provided strong evidence that the Company's extensive geological modelling of the Tindal's area was accurate.
"We've undertaken a mountain of modelling and optimisation work over the past 9 months and it's very exciting and a credit to our exploration team that we are now seeing the rewards for this work," he said.
"The opportunity for multiple repeats of the Perseverance deposit are more than possible as we have only been drilling in this area for 12 weeks now - this further demonstrates the strong potential for growth in our Resource and Reserve base at Coolgardie," he added.
With continuing excellent results coming out of its exploration programme, Focus is planning on mobilising a second (surface) drill rig to site in early November and potentially a third drill rig in January next year.
"This is particularly exciting time for Focus Minerals, with more drilling planned and the imminent commissioning of the Three Mile Hill Gold Plant later this year, we are in for a very busy end to 2009 and a great beginning for 2010!" said Mr Baird.
Ends.
Cheers, Pie (:
FML Price at posting:
5.3¢ Sentiment: None Disclosure: Held
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