they must be on drugs to hey low Kalgoorlie-Boulder Resources...

they must be on drugs to hey low Kalgoorlie-Boulder Resources Ltd KAL Wednesday, 19 December 2007
Selene gold deposit has impressive thickness and continuity
Recommendation Speculative Buy
Overview
KAL has increased its resource estimate for the Selene deposit at its Norseman gold
project by 53%. The indicated and inferred resource is now 14.3 million tonnes averaging
1.6 g/t gold and containing 720,000 ounces of gold. Including resources at Mt Henry, North
Scotia and Abbottshall the global Norseman gold project resource now totals 25.8 million
tonnes averaging 1.7 g/t gold and containing 1.4 million ounces of gold.
The Selene deposit is hosted in banded iron formation and dips gently at 20 degrees
towards the west. With down hole intersections in excess of 40 metres in length, the low
strip ratio and bulk nature of the ore body is expected to lend itself to very low cost open pit
mining methods. The resource increase is the result of the completion of 1,633 metres of
RC drilling in October 2007.
KAL is currently updating its Mt Henry resource to incorporate recent drilling, and is well
advanced towards the completion of a scoping study for the project in the first quarter of
2008. Process test work is scheduled for the early part of 2008.
The Norseman gold project covers 124 sq km of the Norseman-Wiluna greenstone belt of
the Eastern Goldfields of Western Australia. Norseman is the most southern gold mining
centre of the belt and the region has been a major gold producer with production in excess
of 6.1 million ounces of gold from 1935.
The company acquired the project in early 2007. Previous owners included Canadian gold
mining company, Kinross Gold Corporation.
The company is also advancing the Clinker Hill nickel sulphide project in the Kambalda
nickel province. The project is in a favourable geological setting on the western margin of
the Bulong ultramafic complex. The historic gold mining centre of Bulong is to the north of
the project, the Blair nickel mine is located 10 km to the west and the Carnilya Hill nickel
mine is located 20 km to the south.
Previous mapping has shown that there is a 7 km strike length of relatively under explored
basal contact zone between the west facing Bulong ultramafic complex and a fractionated
ultramafic/gabbro sill. A soil sampling program has identified a significant 700 ppm nickel
anomaly that measures 900 metres by 100 metres in a possibly favourable embayment in
the basal contact.
The program also identified a 400 ppm nickel anomaly that extends 5 km along the basal
contact. Both anomalies are coincident with copper, platinum group elements and cobalt.
The company intends to conduct ground based EM surveys to assist with the identification
of drill targets.
Impact
Both of KAL’s Selene and Mt Henry mineral resources display continuous and thick
mineralised zones which will be readily amenable to open pit mining. In particular the
Selene deposit has a gentle dip which will enhance the economics of a mining operation.
In addition the company has an impressive nickel sulphide project that with limited further
work should provide exciting drill targets. These are excellent projects that don’t come
along everyday!
Snapshot
Last Price $0.17
Market Cap (m) $21.2
52 Week High $0.26
52 Week Low $0.054
Sector Metals & Mining
Investment Fundamentals
Cash reserves $1.2 million
Shares on issue 124.8 million
Options on issue 51.4m listed 20 cent July’08
17.1m unlisted options
Directors Michael Atkins (Chairman)
Trevor Matthews (Managing)
David Prentice (Non exec)
Stanley Lewis (Non exec)
Richard Alter (Non-exec)
Major shareholders RASL AU LLC 31.1%
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Business Description
KAL is a mineral exploration company with gold and nickel
projects within the Norseman-Wiluna greenstone belt of
Western Australia.
Analyst: Paul Gooday