new shayban drilling results

Looks like a second winning project

DRILLING CONTINUES TO EXPAND THE SHAYBAN PROJECT

LATEST DRILLING INTERSECTS BROAD ZONES OF GOLD MINERALISATION AND ASSAYS CONFIRM SIGNIFICANT SILVER, ZINC, AND COPPER CREDITS

Highlights:
• Additional drilling intersects extensive zones of gold and silver mineralisation from surface, or near surface, over the entire strike length drilled (+550m).
• Assays confirm significant silver and base metal credits in the previously reported gold zones and highlight the polymetallic nature of the mineralisation.
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Notable results include:
SH020 - 50m at 1.6 g/t Au, 13.1 g/t Ag, 0.84% Zn (EOH) New data (eoh)
SH027 - 44m at 1.6 g/t Au, 4.3 g/t Ag, 0.5% Cu New drillhole
SH028 - 28m at 1.6 g/t Au, 6.4 g/t Ag, 0.9% Cu New drillhole
SH029 - 55m at 1.4 g/t Au, 34.2 g/t Ag, 0.5% Cu, 1.4% Zn
inc 17m at 2.4g/t Au, 63.8g/t Ag, 1.1% Cu, 3.5% Zn New drillhole
SH039 - 33m at 0.9 g/t Au, 17.7 g/t Ag, 1.5% Zn New drillhole
SH023 - 72m at 2.5 g/t Au, 21.8 g/t Ag, 0.9% Cu, 2.3% Zn
- 13m at 3.0 g/t Au, 58.0 g/t Ag Au previously reported
SH031 - 39m at 37.8 g/t Au, 15.3 g/t Ag, 2.3% Cu Au previously reported
SH020 - 36m at 1.8 g/t Au, 40.4 g/t Ag, 1.0% Cu, 4.6% Zn Au previously reported

• Stacked zones of mineralisation with many drillholes intersecting +50 meters of mineralisation. Several holes ended in mineralisation.
• The mineralisation remains open along strike, down-dip, and down plunge.


Citadel Resource Group Limited (ASX: CGG – “Citadel” or “the Company”) is pleased to announce that it has received further results from the maiden drilling program at its 100%-owned Shayban Gold Project in Saudi Arabia. Gold, silver, and base metal assay results have been received for an additional 15 reverse circulation (“RC”) drillholes (SH024-SH040). Silver and base metal results have been received for an additional 11 drillholes where gold results only had previously been reported.

The drilling has continued to intersect broad zones of gold and silver mineralization from surface, or near surface, with many holes containing stacked zones of mineralisation and ending in mineralisation. New gold results include 55m at 1.4 g/t Au, 34.2 g/t Ag, 0.5% Cu, 1.4% Zn from 13m to 55m (SH029) incl 17m at 2.4g/t Au, 63.8g/t Ag, 1.1% Cu, 3.5% Zn, from 21m to 38m, 44m at 1.6 g/t Au, 4.3 g/t Ag, 0.5% Cu from surface plus 15m at 1.2 g/t Au, 7.8 g/t Ag from 51m to 66m (SH027) and 50m at 1.62 g/t Au, 13.1 Ag, 0.8% Zn from 76m to 126m (end of hole) (SH020).
Assaying has also confirmed the presence of significant silver, copper and zinc credits associated with both the newly drilled and previously reported gold mineralisation. Citadel previously reported intercepts of 72m at 2.50 g/t Au and 13m at 2.97 g/t Au in drillhole SH023. Coincident silver and base metal intercepts in this drillhole were 72m at 21.8 g/t Ag, 0.88% Cu, 2.3% Zn and 13m at 58.0 g/t Ag. In drillhole SH020 where Citadel previously reported gold intercepts of 9m at 2.19 g/t Au and 36m at 1.84 g/t Au coincident silver and base metal results are 9m at 15.9 g/t Ag and 36m at 40.4 g/t Ag, 1.0% Cu, 4.61% Zn. In Drillhole SH017 where 19m at 2.9 g/t Au was previously reported, coincident silver and base metal results returned 19m at 66.9 g/t Ag, 2.4% Cu, 2.4 % Zn over the same interval. A complete list of all assay results is given in Table 1.

Citadel’s maiden RC program at Shayban has significantly enhanced the Shayban Project, and has shown its potential to host a significant mineral resource. Mineralisation has now been delineated over a 550m strike and is currently open in all directions. Future work will focus on further defining and extending the current resource area and to complete a new resource estimate by the end of the 3rd quarter 2008. The immediate focus of the next phase of drilling will be to further delineate the “bonanza” zone intersected in SH031 announced previously (37m @ 37.8g/t Au) and also to test the primary zones along strike, down dip and down plunge.


Commenting on these early results Inés Scotland CEO of Citadel

“These results significantly enhance the potential of the Shayban project. Broad zones of gold, silver, and base metal mineralisation have been intersected along the entire strike length drilled. The mineralisation appears to be thicker than previously interpreted, and extends beyond the limits of the current resource, and remains open in all directions.

We are currently waiting for the RC rig to return from repairs at which time the immediate focus will be on better defining the bonanza gold zone of which was intersected 39m at 37.8 g/t Au in drillhole SH031.”


Figure 1 – Shayban Cross Section 5200 N Looking North