re: RBK and ADU- the next KCN?
ADU – one to watch 27 million shares 13 million options No debt 2 million cash
Quarterly report ending September 2002 Highlights
All shareholder meeting resolutions passed unanimously completing the acquisition of the highly prospective Salman Gold Project located in Ghana, West Africa. Commencement of a comprehensive exploration program at Salman aimed at assessing the initial resource potential of the project. Previous exploration identified gold mineralization up to 350 metres in width and extending over 4,000 metres along strike, with follow up RC drilling completed by BHP intersecting substantial zones of gold mineralization including:
73m @ 2.8g/t gold from surface (Including 21m @ 8g/t gold) 42m @ 3.2g/t gold from surface 85m @ 2.2g/t gold from 20m
Striker Resources completes bulk sampling and announces high grade diamond results from its Seppelt 2 kimberlite located less than 400 metres along strike from the Bollinger kimberlite. Final target generation completed for the Nabberu diamond project with drilling due to commence in November 2002. INTRODUCTION Activity within the September Quarter centered on formalizing the acquisition of the Salman Gold Project and preparing for the up and coming RC drill program. The Company’s General Meeting held on the 13 of August saw shareholders unanimously pass all resolutions, resulting in Adamus acquiring 90% of the Salman Gold Project. The September quarter also saw drill targets finalized at the Nabberu diamond project and the commencement of a full assessment of the impact on the Company’s Bollinger project, following Striker Resources announcement o f a high grade discovery at its Seppelt 2 kimberlite pipe. The Company’s technical team commenced exploration at Salman in mid September with regional soil sampling, infill Mobile Metal Ion sampling and geological mapping. Logistical preparations are currently being completed for the RC drilling program which is anticipated to commence in the fourth quartet of 2002. The focus for exploration will be to unlock the initial resource potential of the project through infill drilling of the existing zones of mineralization.
ADAMUS RESOURCES LIMITED Quarterly Report-September 2002 The recent announcement by Striker Resources regarding the results of their bulk sampling program at Seppelt 2 has had a major impact on our neighboring Bollinger project (fig 1). Striker Resources announcement detailed a diamond grade of 2.25 carats per tonne taken from a bulk sample o f the Seppelt 2 pipe, which is located less than 400m along strike from the kimberlitic zone Adamus recently identified at Bollinger. Strikers result has highlighted the potential for kimberlitic bodies in the immediate Bollinger area to carry world class diamond grades. The September quarter also saw Adamus launch a new and comprehensive website that details all aspects of the Company’s projects as well as investor and corporate information. The Company invites all shareholders and interested parties to monitor the Company’s activities at www.adamusresources.com.au. The website also contains an enquiry section inviting interested parties to forward their e-mail addresses, allowing future announcements to be communicated efficiently. PROJECT REVIEW Salman Gold Project The Salman Project is located in southern Ghana, West Africa , approximately 300km west of Ghana’s capital city of Accra. The project consists of a number of tenements covering a total area of 84 square kilometres accessible via 50km of all weather roads from the port city of Takoradi. Adamus owns 90% of the Salman Project with the remaining 10% controlled by the Ghanaian government. The Salman Project is situated on the southern extension of the Ashanti Gold Belt, which is host to over of 60 M a of gold. The tenements themselves lie just 40km south of the world class deposits of Bogosu (3.3Moz) and Prestea (10.7Moz). Previous exploration at Salman involving a number of surface geochemical sampling programs identified a zone of robust gold mineralization up to 350 metres in width and extending over 4,000 metres along strike. Follow up trenching within the anomaly produced substantial intersections including lOOm @ 6.lg/t gold. Subsequent RC drilling by BHP on broad spaced lines (300-500 metres apart) intersected substantial zones of gold mineralization including: SRC 17 73m @ 2.8g/t gold from surface( Including 21m @ 8g/t gold) SRC 18 42m @ 3.2gIt gold from surface SRC 82 85m @ 2.2g/t gold h m 20m The width and grade of mineralization and its positioning close to surface suggests that the project possesses the necessary criteria for hosting a significant and potentially economic gold resource. The September quarter saw the Company formally acquire the Salman project and commence a series of exploration programs including logistical preparation for the up and coming RC drilling program Exploration initially involved infill MM1 sampling over the central and southern zones designed to further delineate RC drill targets. A program of regional soil sampling targeting parallel structures to the east of the main zone as well as extensions to the north of the main zone was also initiated within the quarter. Results Boom both geochemical programs are expected early in the fourth quarter. Detailed geological mapping over the main trend of mineralization has also been completed.
31:10/2002 10:03 FAX oe93225907 ADAMUS-RESOURCES 0 4 ADAMUS RESOURCES LIMITED Quarterly Report - September 2002 The RC program consists O f 4000 metres of drilling designed to infill the existing drill lines which at present are spaced up to 500 metres apart. The drilling will focus on delineating mineralization in the Lop 60 metres, as this broadly represents the oxide zone, The program has been scheduled for the middle of the fourth quarter with initial results expected at the end of the quarter. Bollinger Project The Bollinger Project is located 200km north-west of Kununma in the Kimberley region of Western Australia. The tenements consist of granted prospecting licences covering an area of approximately 20 square kilometres and are 100% controlled by Adamus. The Bollinger Project is situated, on the southern extension of the Seppelt Fracture Zone, a 10 kilometre long lineament that hosts a number o f diamondiferous kimberlites, and drill testing by Adamus of the Seppelt Fracture Zone within the northern part o f P80/1360 numerous untested indicator mineral and geophysical anomalies. Previous reconnaissance and P80/1361 led to the identification of a kimberlitic fissure zone >500rn long, referred to BS Bollinger 1. Although a bulk sample has never been taken from Bollinger 1 the presence of diamonds in soil samples and indicator mineral (chromite) chemistry indicates that it is highly prospective for diamonds. Recently Striker Resources announced a grade of 2.25 carats per tonne obtained from the bulk sampling of the Seppelt 2 h b e r l i t e pipe, This result has highlighted the high grade potential of kimberlite pipes within the Seppelt Fracture Zone. As the high grade discovery is located only a few hundred metres along strike from Bollinger (fig 1) the result has a substantial impact on the prospectively of Bollinger kimberlite. Should Striker Resources ultimately define an economic resource at Seppelt 2 the potential impact on the Bollinger project is extremely significant. Nabberu Project The Nabbem Project is located in the Eastern Nabbem Basin of Western Australia approximately 920 kilorne@es north-east o f Perth. Thc combined tenement area covers approximately 1,440 square kilometres. Exploration completed by previous companies identified B number of diamondiferous lamprophyres. Bulk sampling of these bodies produced commercial size, gem quality diamonds, but to date a commercial grade has not bccn achieved. The exploration gound surrounding the existing diamondiferous lamprophyes remains largely unexplorcd with a number of priority targets still to be tested.
31:10/2002 10:03 FAX oe93225907 ADAMUS-RESOURCES 05 ADAMWS RESOURCES LIMITED Quarterly Report - September 2002 Following the identification of a number of magnetic anomalies considered prospective for diamondiferous lamprophyres the Company selected several priority targets for follow up exploration. The targets are generally in close proximity to, or structurally associated with, the existing diamondiferous Jewill pipes. An aircore drilling program has been designed to test these targets for the presence of diamondiferous lamprophyes. The Company anticipates commencing the drill program in the fourth quarter with results made available at the earliest opportunity.
