Let's put it this way, the copper mineralisation is very...

Let's put it this way, the copper mineralisation is very visible:

ADV hits high grade in Saudi Arabia

Wednesday, 15 November 2006

SYDNEY-based exploration company ADV Group says the first diamond drill hole at the Jabal Sayid project in Saudi Arabia has returned a stunning intersect of 122m at 2.74% copper, and is flagging the project as an emerging world-class ore body.

Chairman Fletcher Quinn said the grades throughout the hole were more than double what was expected. Within the above intersect was a number of higher grade zones including 29m at 3.2% copper from 115m, 5m at 6.69% copper and 33m at 3.42% copper.

"The drilling has confirmed the existence of extensive opencut ore grade mineralisation around and between the previously defined higher grade mineralisation," he said.

"It confirms our view that Jabal Sayid is likely to rapidly emerge as a world-class ore body."

ADV is currently undertaking due diligence on a portfolio of assets in Saudi Arabia owned by Bahrain-based company Vertex.

Vertex is undertaking a pre-feasibility study at Jabal Sayid, with the above results taken from the first drill program at the project totalling 5000m. An initial JORC-compliant resource is expected to be produced at the completion of the program.

Jabal Sayid is located 280km north of Jeddah on a sealed road. The surface project was discovered in 1965 by the French Government's Geoscience Institute whilst it was working for the Saudi Government.

ADV recently announced plans to raise $A3.25 million from an equity placement with an additional $1.5 million line of credit facility.

ADV has provided a $1.5 million loan to Vertex to fund the exploration program at Jabal Sayid and the loan can be converted into a 25% stake in Vertex.

If the loan is not converted, it will be repayable by Vertex on or before the end of June next year. ADV has also been granted the first, and last, right of refusal to engage in negotiations to acquire a greater interest in Vertex with both parties agreeing to a period of exclusive dealing up until the end of March 2007.

Shares in the company have surged on the ASX over the past two days with the stock up 5c (30%) to 21.5c in early afternoon trade today.

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