Level 15, 115 Pitt St, Sydney, NSW 2000All Mail to: GPO Box...

Level 15, 115 Pitt St, Sydney, NSW 2000
All Mail to: GPO Box 4492, Sydney, NSW 2001
Tel: +61 2 9223 3171 Fax: +61 2 9221 3018
Email: [email protected]
1
Jabal Sayid project - Exploration timetable and additional information
As outlined previously, Vertex has been progressing an extensive exploration program on its Arabian Shield projects. ADV is currently conducting due diligence on Vertex. With assay results from the Jabal Sayid copper/gold project now pending, ADV believes it is timely to provide a more detailed description of both the Jabal Sayid project and the current drilling program which is part of the Pre-Feasibility Study being undertaken by Vertex.
Current Exploration Program
Vertex’s initial drilling program on the Jabal Sayid project comprises 5,000m of drilling. This will be followed by 3,000m at Jabal Shayban or Lahuf. The final 2,000m budgeted is as yet unallocated. Additionally a 3-D Induced Polarization (IP) geophysical program is scheduled to commence at Jabal Sayid, as soon as logistics planning arrangements are completed. This program will better define mineralisation and may generate new targets. No modern geophysics has been undertaken at Jabal Sayid since the 1970s, but IP surveys were generally successful at that time.
The 5,000m Jabal Sayid drilling program will have a multi focus on:
• verification of the known sulphide mineralisation. This will be part of a detailed evaluation program that will lead to JORC Code compliant resources being estimated by an Independent Expert.
• examining the distribution of potential open-cut ore grade copper mineralisation around the existing sulphide mineralisation which was defined using a 1.5% Cu cut off.
• examining of the gold, silver and zinc mineralisation. While the previous work reported some gold and silver mineralisation these credits have never been systematically examined. Many volcanic hosted massive sulphide deposits (VHMS) around the world have significant gold, silver and other base metal credits.
• exploring the zone between the surface gossans and the known sulphide mineralisation. Despite the presence of surface gossans as well as visible copper oxide mineralisation (see photo on Page 6), the early drilling mainly targeted geophysical anomalies some 150-200m below the gossans and the majority of the later drilling was conducted from underground. Thus, the zone between the surface gossans and the known sulphide mineralisation is significantly under-explored.
The table below outlines the proposed drilling program at Jabal Sayid and its current status:
Drillhole
Length
Target
Status
Sampling & Assaying
BDH-2004
250.75m
Drill vertically through Zone 2 mineralisation
Completed to target
Sampled – Assays pending
BDH-2005
283.3 m
Drill across entire Zone 2 mineralisation
Completed to target
Sampled – Assays being evaluated
BDH-2001
91.45m
Drill Zone 2 gossan
Poor Recovery
Sampled – Assays pending
BDH-2002
66.85m
Drill Zone 2 gossan
Poor Recovery
Sampled – Assays pending
BDH-2003
90.0m
Drill Zone 2 gossan
Poor Recovery
Sampled – Assays pending
BDH-1011A
119.0m
Drill Zone 1 gossan and Oxide Cu
Abandoned & redrilled
Awaiting sampling
BDH-1012
83.2m
Drill Zone 1 gossan and Oxide Cu
Completed to target
Awaiting sampling
BDH-1013-15
~ 230m
Drill across Zone 1 Cu mineralisation
Completed to target
Sampled – Assays pending
BDH-1016
249.85m
As above along strike
Completed to target
Awaiting sampling
BDH-1001-8
~ 100m
Drill Zone 1 gossan and Oxide Cu
Re-allocated to RC
BDH-1009
105.2m
As above
Good Recovery
Awaiting sampling
BDH 4001-5
4-500m
Drill Zone 4 mineralisation
Commence in Dec
Setting up Drill Rig on BDH-2004
BDH-2004 Core - showing copper mineralisation
Jabal Sayid Copper/Gold Project Description (Bariq earning 50%)
The Jabal Sayid project is located 280 km north of Jeddah on a sealed road. The surface Gossan was discovered in 1965 by the Bureau de Recherches Géologiques et Minières (BRGM), (the French Government’s Geoscience Institute), whilst working for the Saudi Government. The discovery hole drilled in 1966 following an IP survey which identified a conductive body some 150m below the Zone 1 gossan. The exploration history of the project is outlined in the table below. The majority of exploration work was conducted in the 1970s and 1980s by the BRGM. This included nearly 50,000 metres of core drilling which was conducted from surface and underground, some 5.5km of surface trenching and 3.9km of underground development. In 2001, Ma’aden undertook some core and RC percussion drilling but metal prices were not favourable.
Date
Company
Work Undertaken
1966-1974
BRGM
Extensive geophysical surveys, mapping and surface diamond drilling on Zone 1, Zone 2 and Zone 3 (orebodies) discovered in 1970. Zone 4 discovered in 1972.
1974-1979
SEREM/US Steel
Surface drilling, mapping & geophysical surveys.
1977-1979
Riofinex
Review of Jabal Sayid district – mapping & data compilations.
1980-1984
DGMR/BRGM
Two phased underground exploration program culminating in pre-feasibility study.
1989
Teck Corporation
Data review recommended reverting to pre-feasibility with updated economic parameters before any major expenditure.
1997
Behre Dohlbear
Agree with Teck findings.
2001
Ma’aden
Applied for Exploration License. Core and RC drilling undertaken.
2005
CMC
Applied for Exploration License. Agreement executed with Bariq at license grant in 2006.
2
Jabal Sayid Mineralisation
Mineralisation at Jabal Sayid occurs as lenses of massive sulphide, capped by chert and jasper and as stockworks of sulphide-bearing veinlets in deformed upper Proterozoic rocks that form a typical “greenstone belt assemblage. To date four Zones have been discovered (described as “orebodies” by the previous operators), however only three have been explored in any detail.
Jabal Sayid Deposit Geometry
‘Zone’ 1 Zone 1 is the most southerly of the zones of mineralisation, with a gossanous surface expression that consists of a prominent east-west trending 30m high, 250m long and 50m wide outcrop of gossan. At depth, massive sulphides dip steeply to the southeast. The underground mineralisation is described by the BRGM as a 40m wide lens, that extends vertically for 150m, thereafter dipping steeply to the southeast, to a depth of at least 550m. The Saudi Geological Survey has anecdotally reported gold results, from a sampling program over the gossan however assay results cannot be currently located. This was planned to be investigated in the current program by holes BDH-1001 to BDH-1012, but owing to core poor recoveries, this program is being re-planned using an RC percussion drill when one becomes available.
3
The BRGM did not include mineralisation from Zone 1, in the pre-feasibility study on a possible 1 Mtpa underground operation. As the majority of the previous drilling targeted massive sulphides below the surficial oxide zones, the Zone 1 gossan and oxide copper zones have not been extensively drilled and are targets of the current Vertex programs. Mineralisation also remains open at depth with the copper-rich massive sulphides become more zinc-rich. The BRGM have reported tonnes and grade of zinc-rich mineralisation in excess of the near surface copper-rich zones.
Zone 2 Was discovered in 1970 and is capped by a less prominent gossan than Zone 1. It is separated from Zone 1 by the East Valley fault which is interpreted to have a 300m horizontal displacement. Zone 2 forms a steep dipping northwest-southeast aligned tabular body with a bulge on the eastern side. Like Zone 1 the zone immediately below the gossan has never been specifically targeted by drilling. Mineralisation at Zone 2 is also open at depth and gold and silver were not routinely assayed.
Zone 3 The most northerly of the zones of mineralisation does not outcrop at surface but some chlorite-sericite hydrothermal alteration with some minor sulphide mineralisation led to its discovery in 1972 at a depth of 200m below surface. Mineralisation is known to extend some 700 metres below surface. Zone 3 is poorly defined, structurally complex and the detailed geology of Zone 3 is yet to be resolved.
Zone 4 The most northerly of the zones of mineralisation Zone 4 is blind, occurring 200m below surface and contains around 80% of the historically identified underground mineralisation. Zone 4 is described as mushroom-shaped with a ‘stem’, aligned northwest-southeast, dipping to the east. Mineralisation is known to extend to at least 700m below surface and only minor gold and silver assaying was conducted.
Vertex plans to test the near surface zone and drill into the top of the Zone 4 mineralisation with 4-5 near vertical core drillholes to 450-500m.
Mineralisation is also open at depth, with the deepest reported holes terminating in +3% Cu mineralisation. The BRGM modelled an Exploration Target (which was not included in the previous open cut Exploration Target) of 100,000t at >3% Cu per vertical metre, likely extending at least 200 metres below the existing resource. Should this zone extend for the minimum 200m, anticipated by the BRGM, this suggests an additional Exploration Target of 20Mt at >3% Cu containing in excess of 600,000 t of Copper.
In the information provided above, concerning the Jabal Sayid project, any statement or mineralisation target referring to potential quantity or grade is conceptual in nature as there has been insufficient exploration to define a Mineral Resource (as that term is defined in the JORC Code) and it is uncertain if further exploration will result in the determination of a Mineral Resource (as defined in the JORC Code).
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Ralph Stagg, who is a Member of the Institution of Materials, Mining and Metallurgy, a Chartered Engineer and a Fellow of the Australasian Institute of Mining and Metallurgy, a Chartered Professional, and is the technical director of Bariq Mining. Ralph has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ralph consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Background on Vertex and ADV
ADV Group (ADV) in accordance with its previously announced strategy of assessing and reviewing opportunities for growth, is conducting due diligence on, and has the option to secure rights to, Vertex’s exciting portfolio of Copper, Gold, and other Base and precious metal projects on the Arabian Shield in Saudi Arabia. The projects are owned by Vertex Group (Middle East) WLL (“Vertex”), a company incorporated in Bahrain which holds a 70% interest in a Saudi Arabian operating subsidiary Bariq Mining Ltd (“Bariq”).
ADV has agreed to provide a A$1.5 million loan to Vertex which will be used to assist in the funding of an exploration program on the Bariq tenements. This program has already commenced and will include 10,000m of drilling, re-assaying of existing core, and detailed geophysical surveys over Jabal Sayid and Shayban.
ADV may, at its option, convert the loan into a 25% interest in Vertex. If the loan is not converted it will be repayable by Vertex on or before June 30 2007. In return for providing the loan funds to Vertex, ADV has also been granted the first, and last, right of refusal to engage in negotiations to acquire a greater interest in Vertex. The parties have agreed to a period of exclusive dealing up until 30 March 2007.
4
Photographs from recent Site Visit
Jabal Sayid – Underground Decline Portal (5.0m x 5.5 m)
Jabal Sayid – Zone 2 Gossan
Jabal Sayid – View inside Underground Portal
Jabal Sayid – Zone #4 BRGM core (copper stockwork)
5
Jabal Sayid – BRGM Core (drilled 1970-80)
Copper Oxide in BDH-1009
Copper Oxide – Exposed in road Zone 1 Gossan
Chalcopyrite in BDH-2005
For further information please contact:
Fletcher Quinn (Director) or Kris Knauer (Director)
(07) 3303 0625 (02) 9375 0108 6