HIGH GRADE MOLYBDENITE VEINING INTERSECTED IN DRILLHOLE M38„h As...

HIGH GRADE MOLYBDENITE VEINING INTERSECTED IN DRILLHOLE M38
„h As at 0900am on 12 October, 2008, Drillhole M38 was at a depth of 328 metres and drilling towards a target depth of 400 metres.

„h The hole drilled out of the thick zone of SAFI (silica altered fractured intrusive) at approximately 225 metres has continued to intersect an alternating sequence of silicified and potassic altered quartz monzonite, high grade molybdenite veining at high angles to core axis and clay-carbonate altered quartz monzonite with stockwork molybdenite mineralisation.

„h The high grade molybdenite veining occurs in zones several metres thick with an estimated average grade in excess of several percent MoS2. These high grade zones occur at regular intervals of 5-10 metres from 225 metres until the current depth. Examples of this high grade molybdenite mineralisation are shown on the accompanying Plates 1-5.

„h The company is still awaiting the assay results for the interval 197-404.85 metres in Drillhole M37.

„h A smaller, man portable drilling rig capable of drilling to depths of 250 metres in HQ core size was mobilized from Balikpapan this morning and is expected to be lifted into the site by week¡¦s end.

„h This second rig will be used to drill a series of holes at the top of the main ridge (Plate 11), at an elevation of approximately 500 metres vertically above the collar of the current hole at Nancy Camp (Plate 12) , before moving 100 metres vertically down the ridge to test the zones of high grade mineralisation previously intersected in Drillholes M19 (18 m @ 0.68% MoS2); M21 (9m @ 1.43% MoS2) and M24 (12m @ 1.68% MoS2).