new copper oxide zone identified at mt kelly

28 August 2006
Manager Company Announcements
Company Announcements Office
Australian Stock Exchange Limited
Level 4, 20 Bridge Street
Sydney NSW 2000 (By electronic lodgement – 11 pages) Dear Sir
NEW COPPER OXIDE ZONE IDENTIFIED AT MOUNT KELLY – FLYING HORSE EXTENDED
• A new discovery of oxide copper mineralisation delineated to the northwest of Flying
Horse to be known as Flying Horse Extended.
• Best results from UFlying Horse ExtendedU include;
�� 31 metres at 2.00% Cu from 47 metres, and
�� 25 metres at 1.48% Cu from 59 metres.
• Drilling has now confirmed that the mineralisation extends 200 metres northwest of the Flying Horse ore body and is up to 100 metres wide. Mineralisation is open to the west.
• Further infill results confirm continuity along the UMount Clarke ExtendedU zone. Best
results include:
�� 37 metres at 1.52% Cu from 20 metres, including 17 metres at 2.56% Cu
from 20 metres, and
�� 11 metres at 1.40% Cu from 45 metres.
• Infill drilling will continue along newly recognised extensions with metallurgical
drilling due to commence in September. Revised Mineral Resource estimates are
anticipated in October.
• High tenor copper-in-soil anomaly identified at Dividend, 2 kms to the east of Mount
Kelly.
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1. Flying Horse and Mount Clarke Extended Drill Results
The Company is pleased to announce a new oxide copper discovery to the northwest of the Flying Horse ore body, along strike of the structures that are the main controls to mineralisation within the
Mount Kelly area (Figure 1). This is a second zone, the first being defined immediately to the northwest of Mount Clarke.
Oxide copper mineralisation has been defined along 200 metres of strike from the northwestern edge of Flying Horse and is up to 100 metres wide. Mineralisation is open to the west. A second programme of RC drilling has been approved for Flying Horse Extended to develop a potential
Mineral Resource at a drill density of 25 metres by 25 metres.
The Company is confident that the Flying Horse Extended (Figure 3) and Mount Clarke Extended (Figure 2) oxide copper discoveries will significantly add to the resource inventory at Mount Kelly.
The Continuing exploration success brings forward the Company’s timetable for increasing the production capacity of the Mount Kelly plant from a nameplate 19,000 tonnes per annum. An extended 15,000 metre drill programme is in progress with a total of 11,000 metres in 161 RC holes having been completed.
A 1,500 metre metallurgical diamond drilling programme is due to commence in September. This
programme will principally assess the leach characteristics of the mineralisation in addition to providing bulk density and structural measurements. Given the malachite distribution within the host dolomitic siltstone and sandstone units, the Company expects that the leach kinetics will be
similar to those of Flying Horse and Mount Clarke.
Assay results have been received from a further 61 RC holes (Table 1). Best intersections (downhole) are given as follows:
Best results from UFlying Horse ExtendedU include;
• 31 metres at 2.00% Cu from 47 metres, and
• 25 metres at 1.48% Cu from 59 metres.
Best results from UMount Clarke ExtendedU include;
• 37 metres at 1.52% Cu from 20 metres, including 17 metres at 2.56% Cu from 20 metres, and
• 11 metres at 1.40% Cu from 45 metres.
Assay results are still pending for a further 40 RC holes recently completed with the Mount Clarke and Flying Horse Extended zones. Turn around time is still slow with assay results taking 5 weeks
from receipt of samples.
2. Dividend Copper Geochemical Anomaly The Dividend area is located approximately 2 kms to the east of Mount Kelly within EPM 7487 (Figure 4). Recent soil geochemistry has defined an anomalous copper zone up to 1,000 metres
east-west and up to 500 metres wide within dolomitic siltstones. Detailed mapping indicates the presence of strong east-west structures that coincide with a continuous +1,000 ppm Cu contour.
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Previous historical drilling within the Dividend area has targeted a low tenor gold anomaly with subordinate copper. Drilling was confined to the western portion of the EPM and has missed the
highest portion of the copper anomaly.
Best results from historical RC drilling include;
• 18 metres at 0.83% Cu from 24 metres in MK 512,
• 24 metres at 0.83% Cu from 22 metres in MK 508, and
• 8 metres at 0.37% Cu from 30 metres in MK 427.
Given the tenor and location of these historical results, the Company believes that the Dividend area has considerable potential to host further oxide copper mineralisation. Drilling is expected to commence in September on arrival of a second RC drill rig.
Yours faithfully
Brian Rear
Managing Director
Mr SJ Pooley (MAusIMM, MAIG), a geologist employed by CopperCo Limited, compiled the technical aspects of this report. Mr Pooley
is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as
defined in the 1999 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Pooley consents to the
inclusion in the report of the matters in the form and context in which it appears.
For further information please contact:
• Brian Rear Managing Director (08) 9421 1999
Figure 1: Flying Horse Extended and Mount Clarke Extended Drill Hole Location Plan
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Figure 2: Mount Clarke Extended Drill Hole Location Plan
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Figure 3: Flying Horse Extended Drill Hole Location Plan
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Figure 4: Dividend Soil Geochemistry – Copper Contours
Table 1: Significant Drill Hole Intercepts
HoleEastingNorthingAzimuthDipLengthRLFromToIntervalGradeNumber(mE)(mN)(Degrees)(Degrees)(m)(m)(m)(m)(%)MK92030495077997270406084346.273872341.73MK92130495677997350406078345.42394340.51515760.56MK92230491777997710406078339.30NSMMK9330485177999270406054323.54NSMMK92430474477999490406048323.40353610.45MK92530471978000010406042322.60162480.30MK9263046977799960406048323.23333520.32MK92730466478000120406042322.93NSMMK92830481977996500406054327.95364040.31MK92930499477995470406066340.79SMMK93030488477993760406066362.664354110.36MK93130487477992870406096362.325984251.48MK93230493877993690406084363.30NSMMK9333049677993570406066363.79NSMMK93430496577993190406072363.015264120.64MK93530493177992800406084361.864778312.00MK9363049847799259040058356.11485240.30MK93730463377992480406088360.09374140.31697340.31MK93830513777991220406058335.44373920.404556110.51MK9393047177993630406060335.01474920.39MK94030466477994570406054331.06NSMMK94130463877994310406060332.60NSMMK94230459777993910406060337.9NSMMK94330442277995980906054334.53NSMMK94430440377995960906054332.90NSMMK94530446677995980906060333.60NSMNotes15NSM denotes No Significant Mineralisation26Intercepts quoted are down-hole37Collars surveyed using differential GPS48All Azimuths are true bearingsMount Kelly Project Flying Horse/Mount Clarke Extended RC DrillingSignificant InterceptsIncludes up to 2 metres internal dilutionAll holes inclined -60 Assay method used 3 acid digest, AAS finish0.30% Cu Lower cut off Page 8
Table 1: Significant Drill Hole Intercepts (Continued)
HoleEastingNorthingAzimuthDipLengthRLFromToIntervalGradeNumber(mE)(mN)(Degrees)(Degrees)(m)(m)(m)(m)(m)(%)MK9463045007799600090-6058333.75303660.85MK9473044997799649090-6054330.89NSMMK9483044477799648090-6066331.80NSMMK9493044477799693090-6078331.060440.32525420.38MK9503043997799696090-6066330.35NSMMK9513044057799651090-6054331.10NSMMK9523043657799599090-6060339.88NSMMK9533043857799548090-6066341.21NSMMK9543047467799327040-6066337.87NSMMK9553046717799320040-6066337.70NSMMK9563047617799576040-6048333.79NSMMK9573047947799612040-6042328.76182460.44MK9583048897799733040-6054342.11323310.68MK9593048567799696040-6054336.88313320.51MK9603048617799775040-6054330.56NSMMK9613048367799744040-6060330.492048280.43MK9623049507799807040-6060340.19NSMMK9633048117799883040-6078339.85525420.76MK9643047957799856040-6078340.25394010.68MK9653048617799855040-6072328.545063130.31MK9663049837799848040-6066328.17NSMMK9673051257799584040-6066340.17475250.35MK9683050047799614040-6078345.062057371.52incl2037172.56MK9693049967799592040-6078345.101842240.63556160.33MK9703049777799569040-6090340.98273470.305674180.50MK9713049417799600040-6060348.79394450.31MK9723049207799731220-6072346.473154230.33Notes15NSM denotes No Significant Mineralisation26Intercepts quoted are down-hole37Collars surveyed using differential GPS48All Azimuths are true bearingsMount Kelly Project Flying Horse/Mount Clarke Extended RC DrillingSignificant Intercepts0.30% Cu Lower cut offIncludes up to 2 metres internal dilutionAll holes inclined -60 Assay method used 3 acid digest, AAS finish
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Table 1: Significant Drill Hole Intercepts (Continued)
HoleEastingNorthingAzimuthDipLengthRLFromToIntervalGradeNumber(mE)(mN)(Degrees(Degrees)(m)(m)(m)(m)(m)(%)MK9733049337799749220-6084343.63242840.374556111.406280180.65MK9743049677799714220-6084345.253565301.27MK9753051007799556040-6066334.66384020.95MK9763050837799536040-6078341.44NSMMK9773049907799647220-6072348.81Results PendingMK9783050057799668220-6090342.90Results PendingMK9793050017799712220-6060334.53Results PendingMK9803050157799699220-6042334.06Results PendingMK9813050847799664220-6090340.58Results PendingMK9823050937799676040-6072340.32NSMMK9833050627799663220-6078339.392759320.60MK9843048767799639040-6066342.52253270.36MK9853048577799663040-6066338.14NSMMK9863047537799804040-6048325.83MSMMK9873047307799772040-6072331.05Results PendingMK9883046597799929040-6054324.17Results PendingMK9893046227799883040-6060328.20Results PendingMK9903050687799264040-6048335.95Results PendingMK9913048807799241040-6096361.80Results PendingMK9923048597799270040-60100362.51Results PendingMK9933048437799279040-6054362.46Results PendingMK9943048717799324040-6090361.77Results PendingMK9953049317799240040-6084353.46Results PendingMK9963048967799192040-6072351.88Results PendingMK9973048847799175040-6072352.76Results PendingMK9983049527799221040-6090353.15Results PendingMK9993051377799680220-6084345.49Results PendingNotes15NSM denotes No Significant Mineralisation26Intercepts quoted are down-hole37Collars surveyed using differential GPS48All Azimuths are true bearingsAll holes inclined -60 Assay method used 3 acid digest, AAS finish Flying Horse/Mount Clarke Extended RC DrillingSignificant Intercepts0.30% Cu Lower cut offIncludes up to 2 metres internal dilutionMount Kelly Project
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Table 1: Significant Drill Hole Intercepts (Continued)
HoleEastingNorthingAzimuthDipLengthRlFromToIntervalGradeNumber(mE)(mN)(Degrees(Degrees)(m)(m)(m)(m)(m)(%)MK10003050707799710220-6072335.30Results PendingMK10013050787799696220-6084336.05Results PendingMK10023049987799728220-6084334.93Results PendingMK10033049877799749220-6084337.85Results PendingMK10043049627799748220-6096343.12Results PendingMK10053049467799763220-6072342.14Results PendingMK10063049057799748040-6060342.30Results PendingMK10073048787799720040-6084341.36Results PendingMK10083048047799719040-6054327.64Results PendingMK10093051677799554090-6078326.13Results PendingMK10103051347799547040-6066326.93Results PendingMK10113050187799573040-6072340.12Results PendingMK10123051807799607040-6066329.82Results PendingMK10133051737799635040-6078337.06Results PendingMK10143051637799622040-6066337.43Results PendingMK10153051477799600040-6066339.05Results PendingMK10163047007799218040-6060351.17Results PendingMK10173045607799336040-6084355.00Results PendingMK10183050227799390040-6084364.06Results PendingNotes15NSM denotes No Significant Mineralisation26Intercepts quoted are down-hole37Collars surveyed using differential GPS48All Azimuths are true bearingsAssay method used 3 acid digest, AAS finishSignificant Intercepts0.30% Cu Lower cut offIncludes up to 2 metres internal dilutionAll holes inclined -60 Mount Kelly Project Flying Horse/Mount Clarke Extended RC Drilling
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