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Email: [email protected] Internet: www.unionresources.com.au
Union Resources Limited
A.B.N. 40 002 118 872
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Tel: +61 7 3833-3833 Level 6, 200 Creek Street, Brisbane Postal Address:
Fax: +61 7 3833-3888 PO Box 728
Spring Hill Q
Australia 4004
14 September 2005
Company Announcements Office
Australian Stock Exchange Limited
20 Bridge Street
SYDNEY NSW 2000
Dear Sir
Re: High grade zinc intersection at Mehdiabad
Union Resources Limited (UCL) has pleasure in announcing the results of a further
five drill holes completed recently at the Mehdiabad Zinc Project in Iran.
Significant results were obtained in four of the holes:
(a) Hole 8415
(i) A very high grade intersection of 27 metres at 20.8% Zn, 3.88% Pb and
15 g/t Ag has been encountered. The section includes 7 metres at 30.7%
Zn, 5.1% Pb and 27 g/t Ag.
(ii) An addition intersection of 18 metres at 11.57% Zn, 2.1% Pb and 39 g/t
Ag occurs higher up the same drill hole.
Furthermore the two intersections are separated by only 4 metres of waste, making
this area of the resource highly attractive for consideration for early mining. The hole
is located towards the southern end of the resource.
(b) Hole 8405
(i) There are eight separate intersections within the lead resource. The best
intersection was 4 metres at 5.4 % Pb, 1.7% Zn and 112 g/t Ag.
(ii) There are ten separate intersections within the deeper zinc resource
including 63 metres at 8.2 % Zn, 4.4 % Pb and 203 g/t Ag and 41 metres
at 7.9% Zn, 6.15% Pb and 133 g/t Ag.
This hole was drilled along the western side of the resource, where a high level lead
resource overlies the zinc resource.
ASX Announcement – High Grade Zinc Intersection at Mehdiabad 14 September 2005
_______________________________________________________________________________________________________
Email: [email protected] Internet: www.unionresources.com.au
(c) Hole 8406
There are two intersections each of 19 metres in thickness and with grades of
6.9% Zn and 6.2% Zn respectively. This hole was drilled at the southern end of
the resource.
(d) Hole 8409
There are three separate intersections the best being 5 metres at 10.51% Zn,
2.7 % Pb and 68 g/t Ag.
The significant results were as follows (at a cut-off of 4.0% Zn or 4% Pb and a
maximum of 3.0m of internal waste):
HOLE 8415 – (11,360E / 8,315N)
Zinc Resource
18.0m (201.0m – 219.0m) at 11.57% Zn, 2.10% Pb and 39 g/t Ag
including 6.0m (204.0m – 210.0m) at 18.10% Zn, 3.00% Pb and 54 g/t Ag
27.0m (223.0m – 250.0m) at 20.80% Zn, 3.88% Pb and 15 g/t Ag
including 7.0m (224.0m – 231.0m) at 30.68% Zn, 5.10% Pb and 27 g/t Ag
HOLE 8405 – (10,725E / 8,950N)
Lead Resource
3.0m (60.0m – 63.0m) at 4.94% Pb, 0.80% Pb and 95 g/t Ag
1.0m (185.0m – 186.0m) at 4.35% Pb, 1.40% Zn and 52 g/t Ag
1.0m (223.0m – 224.0m) at 4.36% Pb, 0.89% Zn and 51 g/t Ag
2.0m (259.0m – 262.0m) at 5.12% Pb, 0.85% Zn and 117 g/t Ag
4.0m (281.0m – 285.0m) at 5.38% Pb, 1.73% Zn and 112 g/t Ag
2.0m (287.0m – 289.0m) at 4.20% Pb, 2.07% Zn and 105 g/t Ag
1.0m (308.0m – 309.0m) at 4.45% Pb, 1.77% Zn and 83 g/t Ag
0.5m (310.0m – 310.5m) at 5.11% Pb, 1.43% Zn and 242 g/t Ag
Zinc Resource
1.0m (49.0m – 50.0m) at 5.29% Zn, 2.17% Pb and 27 g/t Ag
2.0m (56.0m – 58.0m) at 4.57% Zn, 2.70% Pb and 90 g/t Ag
2.0m (154.0m – 155.0m) at 4.27% Zn, 1.78% Pb and 30 g/t Ag
63.0m (314.0m – 377.0m) at 8.2% Zn, 4.4 % Pb and 203 g/t Ag*
including 3.0m (333.0m – 336.0m) at 17.67% Zn, 2.70% Pb and 122 g/t Ag
2.0m (407.0m – 409.0m) at 5.42% Zn, 4.59% Pb and 111 g/t Ag
1.0m (414.0m – 415.0m) at 5.64% Zn, 3.87% Pb and 138 g/t Ag
9.0m (420.0m – 429.0m) at 4.10% Zn, 1.33% Pb and 44 g/t Ag
1.0m (433.0m – 434.0m) at 5.61% Zn, 2.62% Pb and 25 g/t Ag
41.0m (445.0m – 486.0m) at 7.92% Zn, 2.33% Pb and 77 g/t Ag**
including 3.0m (447.0m – 450.0m) at 21.83% Zn, 6.15% Pb and 133 g/t Ag
* This intersection is determined from total core of only 43.8 m over the 63.0m interval (an
overall core recovery of only 69%).
** This intersection is determined from total core of only 21.5 m of a 41.0m interval (an
overall core recovery of only 52% ).
The core loss is thought to be due to cavities in the resource. The geotechnical
consultants are addressing the extent and impact of the cavities on the mine plan.
ASX Announcement – High Grade Zinc Intersection at Mehdiabad 14 September 2005
_______________________________________________________________________________________________________
Email: [email protected] Internet: www.unionresources.com.au
HOLE 8406 – (11,350E / 8,225N)
Zinc Resource
19.0m (157.0m – 176.0m) at 6.205 Zn, 2.36% Pb and 12 g/t Ag
19.0m (176.0m – 195.0m) at 6.91% Zn, 1.74% Pb and 23 g/t Ag
including 3.0m (190.0m – 193.0m) at 13.05% Zn, 3.79% Pb and 39 g/t Ag
2.0m (199.0m – 201.0m) at 7.38% Zn, 2.75% Pb and 51 g/t Ag
HOLE 8409 – (11,470E / 8,700N)
Zinc Resource
5.0m (87.0m – 92.0m) at 5.00% Zn, 1.44% Pb and 13 g/t Ag
2.0m (94.0m – 96.0m) at 4.41% Zn, 2.02% Pb and 28 g/t Ag
5.0m (99.0m – 104.0m) at 10.51% Zn, 2.69% Pb and 68 g/t Ag
HOLE 8321 – (11,470E / 8025N)
Zinc Resource
2.0m (164.0m – 166.0m) at 7.58% Zn, 0.61% Pb and 12 g/t Ag
The mineral resources information in this Report is based on, and accurately reflects, information compiled by Mr Ken
Chapple who is a Corporate Member of the Australasian Institute of Mining and Metallurgy. Mr Chapple has the
relevant experience in relation to the mineralisation being reported upon to qualify as a Competent Person as defined
in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
Yours faithfully
Union Resources Limited
Rob Murdoch
Managing Director