New resource estimate and major new drilling to commence next week.
Range River Gold Ltd ABN 64 065 480 453 Ground Floor, 15 Queen Street Melbourne VIC 3000 telephone +61 3 8614 1500 facsimile +61 3 8614 1555 email [email protected] website www.rangeriver.com.au 24 February 2004 AUSTRALIAN STOCK EXCHANGE AND MEDIA RELEASE NEW RESOURCE ESTIMATE AT INDEE, WA The Company is pleased to announce a new resource estimate for its two most advanced gold prospects, Withnell and Camel 1 following completion of 12,806 metres of resource infill drilling at the Indee Joint Venture (Company 70%). • The JORC-compliant resource of 3,201,000 tonnes at 2.7 g/t gold for 281,000 ounces is comprised of Measured category - 1,430,000 tonnes at 2.9 g/t gold for 132,000 ounces Indicated category - 327,000 tonnes at 3.2 g/t gold for 33,000 ounces Inferred category - 1,444,000 tonnes at 2.5 g/t gold for 116,000 ounces • Withnell and Camel 1 represent two of the seven major prospects currently identified along an 8 kilometre mineralised section of the Mallina Shear Zone (Figure 1). • The latest results significantly advance the project towards the initial objective of a mining operation containing a minimum gold reserve of 250,000 ounces. • Importantly, the gold resource includes ounces in the measured category for the first time and the estimated overall grade in oxide/transition material has improved to an average 2.7 g/t Au at Withnell and 3.8 g/t Au at Camel 1. • A major program consisting of 25,000 metres of RC drilling will commence in early March 2004 to further evaluate the Withnell-Camel 1 resource and continue exploration of the other resource areas within the key 8 km mineralised zone. • Recent detailed metallurgical tests have been positive. Testing of a composite oxide sample from 40 drill holes returned total gold extraction of 93%. Results from sulphide samples were also encouraging with recoveries to 84%. Test work will continue to optimise the proposed metallurgical plant design. As reported in the December Quarter, the initial phase of resource development drilling at Withnell and Camel 1 was completed in early November 2003. Table 1 summarises the resource estimate prepared by the Company for the Withnell and Camel 1 prospects after results of the infill RC drilling program and previous drilling were compiled and interpreted. The resource is based on a wireframe-constrained block model reported above a 0.8 g/t Au lower cut off. A top cut of 30.0 g/t Au, based on statistical analysis was applied to samples prior to estimation. Specific gravities used to calculate tonnage were based on gamma-gamma downhole surveys and whole core samples. Values were determined for oxide material at 2.1, transitional at 2.6 and fresh at 2.8 tonnes per cubic metre. Figure 2 shows the distribution of modelled gold lodes for the Withnell deposit and resource categories derived from the block model. Drilling has not yet adequately closed off the mineralisation at both Withnell and Camel 1. A longitudinal section from two of the main lodes within the Withnell deposit (Figure 3) indicates the resource remains open at depth and along strike. A further infill and exploration RC drilling program of 25,000 metres targeting all previously calculated resources, including Roe, Hester, and Camel 2 (Figure 4), plus extension drilling of the Withnell ore body is planned to begin in early March 2004. Exploration drilling is planned at the Calvert and Toweranna prospects and also 16 kilometres west of Withnell at Mallina where an encouraging drill intersection of 17 metres @ 3.29 g/t Au was achieved during the previous program. The overall aim of the next drilling program, when combined with the resources listed above, is to achieve a minimum of 250,000 ounces of economically mineable gold reserves, together with additional resource ounces, which will allow finalisation of a Bankable Feasibility Study leading to a mining project at Indee. The planned major drilling program will be completed during May. It is anticipated that all significant drilling results will be available to the market before the end of May and a new global resource estimate will be completed during June and July. The information in this report that relates to Mineral Resources is based on information compiled by Gus Bravo, a full-time employee of Range River Gold Limited and a Fellow of The Australasian Institute of Mining and Metallurgy. The report is based on the resource model completed by Denise Riddington, Consultant Resource Geologist who is also a Member of The Australasian Institute of Mining and Metallurgy. Gus Bravo and Denise Riddington have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a Competent Person as defined in the 1999 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Both consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. M R Beer Managing Director TABLE 1 MEASURED INDICATED INFERRED TOTAL Material Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Type t g/t oz t g/t oz t g/t oz t g/t oz WITHNELL Oxide / 827,000 2.8 74,000 136,000 3.0 13,000 160,000 2.2 11,000 1,123,000 2.7 98,000 Transition Fresh 427,000 2.7 37,000 71,000 2.0 4,000 1,213,000 2.5 99,000 1,711,000 2.6 140,000 CAMEL 1 Oxide / 176,000 3.8 21,000 120,000 4.2 16,000 33,000 2.8 3,000 329,000 3.8 40,000 Transition Fresh 0 0.0 0 0 0.0 0 38,000 2.1 3,000 38,000 2.1 3,000 TOTAL Oxide / 1,003,000 3.0 95,000 256,000 3.6 29,000 193,000 2.3 14,000 1,452,000 3.0 138,000 Transition Fresh 427,000 2.7 37,000 71,000 2.0 4,000 1,251,000 2.5 102,000 1,749,000 2.6 143,000 TOTAL 1,430,000 2.9 132,000 327,000 3.2 33,000 1,444,000 2.5 116,000 3,201,000 2.7 281,000 INDEE JOINT VENTURE WITHNELL AND CAMEL 1 RESOURCE FEBRUARY 2004 RESOURCE CATEGORY INDEE PROJECT Feb 2004 LOCATION OF CURRENT INDEE GOLD RESOURCES Figure 1
Sherlock Quamby Evelyn ? ? ? ? ? ? ? 10Km AMG Zone 50 (GDA94) ~~~~ ~ ~ ~ ~~ ~~~~~~~~~~~ ~~ ~ ~~~~~ ~~~ ~~~~~~~~ ~~~~~~~~ ~ ~~ ~~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~ ~~ ~ ~ ~~ ~ ~~ ~~~~ ~ ~ ~~~ ~ ~ ~~ ~~~~~~~~ ~ ~~~ ~~~~~~~ Ma llina Shear Wohler Shear S holl Shear 660000mE 640000mE 620000mE 600000mE 580000mE 560000mE 540000mE 7740000mN 7720000mN 7700000mN 7680000mN Mafic Dyke WHIM CREEK GROUP LEGEND Portree Granite Peawah Granodiorite Millindinna Intrusives Mallina Formation Constantine Sandstone Cleaverville Formation Granite and Gneiss Fortesque Group Opaline Well Granite Calvert Hester Camel 1 0.37Mt @ 3.6g/t Au 43,000oz Camel 2 Withnell 2.8Mt @ 2.6g/t Au 238,000oz Roe Toweranna New Resource Estimate / Infill RC drilling scheduled early March 2004 Resource Area - RC drilling to commence late March 2004 INDEE PROJECT Feb 2004 WITHNELL RESOURCE BLOCK MODEL Figure 2 Inferred Indicated Measured Resource Category (JORC) Looking South Other Lode B Lode A Gold Mineralisation RL RL INDEE PROJECT Feb 2004 WITHNELL RESOURCE - LONGITUDINAL SECTION LODE B LODE A Figure 3 624200mE 50 0 -50 -100 624000mE 623800mE 623600mE West West East East No Resource Drilling RL(m) RL(m) 624400mE 624600mE 624200mE 50 0 -50 -100 624000mE < 1.0 g/t Au Contoured Block Grade 1.0 - 3.0 g/t Au Pierce Point of RC / DDH Drillhole Limit of Current Resource Block Model Base of Oxidation Mineralisation open at depth or along strike 3.0 - 5.0 g/t Au 5.0 - 10.0 g/t Au > 10.0 g/t Au INDEE PROJECT Feb 2004 MALLINA SHEAR ZONE Resource Location and Exploration Potential Figure 4 WEST 8 EAST kilometres 619000E 7688500N 620000E 621000E 622000E 623000E 624000E 625000E 626000E Camel 2 Hester Roe Camel 1 0.2- 1.0g/t >1.0g/t New resource estimate RAB/Aircore drilling RC/DD drilling Modelled lodes 7688500N ( ( Withnell [email protected]/t [email protected]/t [email protected]/t [email protected]/t
