27 August 2004
19.82 g/t Gold Intercept Over 4 metre
interval at Paro Prospect
Second Eluvial Gold Zone Identified at
Nakoi Prospect
Paro Prospect
RC Drilling at the Paro Prospect has returned an intercept of 4m @ 19.82 g/t Au from 51 metres in Hole PARC006.
Paro is located 650 metres north of the planned Mineral Hill open pit. The
intercept is directly and vertically below initial intercepts reported on 16 August 2004 from RC Holes PARC004 and 007. Drilling has defined a subvertical siliceous breccia zone of 7 metres true width within a 15 metre wide clay-altered
zone containing anomalous gold values (refer Figure 1). Hole PARC006 also returned anomalous gold values from several zones in the foot wall unit, terminating in
mineralisation, and all zones are open at depth. This hole is only the third of eleven planned holes to be drilled at Paro in the current programme. The Company believes the prospect now warrants deeper drilling than previously planned to better assess the distribution of the high grade mineralisation. Additional holes are planned at Paro within a week, following first pass drilling now underway at the untested 6000 North Prospect (refer Figure 2).
Nakoi Prospect
Initial drill results received from RC drilling at the Nakoi Prospect identify a second eluvial zone 900m south of Mineral Hill. Drill result details are contained in the attached
table. (See announcement)
The highlight from first pass drilling is an intercept of 2m @ 4.39 g/t Au from surface, in Hole NERC003. This confirms the presence of a second shallow, easily mineable zone of gold mineralisation south of Mineral Hill and follows the identification of the Mbete eluvial area reported on 16 August 2004 (refer Figure 2). Surface anomalies in this area were initially outlined by the Company’s regional augering campaign (completed in 2002) on a 200m x 40m grid, which returned several values in excess of 1.00g/t in the Nakoi locality, with a maximum value of 3.95g/t Au approximately 50m west of holes NERC001 – 003. Initial estimates of strike for the zone suggest it
may be in the order of 200m in length. RC Drilling intersected a sub-horizontal eluvial deposit of variably siliceous breccia and clay altered material, with a maximum thickness of around 6m in the area drilled to date, overlaying a variably oxidised basaltic basement. Weakly anomalous gold values were returned from the oxidation front at depth above the basalt unit. The potentially higher grade nature of the eluvial material warrants further assessment, and planned auger drilling of remaining and recently discovered shallow eluvial zones surrounding the main deposit at Mineral Hill will now be brought forward, subject to the availability of suitable equipment.
Drilling of the proximal prospects to the north and south of Mineral Hill has been carefully executed in accordance with the proposed programme outlined in the Company’s 2003 Annual Report (at page 13), to take advantage of a short dry season window to target logistically difficult prospects, as opposed to the more accessible Mineral Hill deposit. Drilling will resume at Mineral Hill to continue dip-extension and reserve definition drilling at the completion of drilling at the 6000 North and Paro Prospects.
Yours faithfully
Burdekin Pacific Limited
Jerome G Vitale
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