Highlights: • Re-entry confirms the production sized (5.5 x...

  1. 2,273 Posts.
    Highlights:
    • Re-entry confirms the production sized (5.5 x 5m) decline is in excellent condition.
    • Rehabilitation cost is anticipated to be at the low end of a $0.3-$0.5 million range for
    drilling access.
    • Will enable drilling from underground to test the Lode 4 deeps sooner than anticipated.
    • Significantly enhances the development options as the high grade zone (54m at 8.22% Cu,
    1.12 g/t Au in BDH-4001) is located immediately adjacent to the Lode 4 crosscut

    ADV Group (ASX : ADS) is pleased to report that there was a successful re-entry of the decline at Jabal Sayid down to
    the standing water table. The production sized (5 x 5.5m) decline was developed by the BRGM in the 1980s to provide
    access to Lodes 1, 2 and 4 for geological information, sampling and drill platforms. This decline and associated
    underground workings is a considerable asset of the company totalling about 3.9 km of excavations which could cost up to
    $20M to replicate if they were undertaken today.

    The ADV team (including its mining and geotechnical consultants) inspected the top 300m of the decline and reached the
    900m RL level. This top 300m of the decline is in excellent condition, with a stable roof and walls, and no ground support
    required. At this point the ground water table was encountered, which is at a level consistent with where it has been
    measured in the two vent raises at Lodes 1 and 4. This suggests that the ground conditions below this level should also be
    stable.

    Detailed costing of the de-watering and rehabilitation of the decline is currently being completed but based on the work
    to date and the inspection the cost is anticipated to be at the low end of a $0.3-$0.5 million range. The current program is
    to begin the dewatering after consultation with the Saudi Arabia DMMR It is anticipated that the decline will be fully
    rehabilitated and ready for underground drilling before the end of Q1 2008.

    Commenting on the re-entry of the decline Ines Scotland CEO of Vertex/Bariq said:

    “This is an excellent result for our ongoing plans at Jabal Sayid. It is significant asset provides us with two key
    advantages;
    Firstly the ability to access drilling platforms up to 300m below ground surface, accelerating our investigations
    into the higher grade mineralisation of the Lode 4 deeps. The deeper holes in Lode 4 ended in plus 3% copper
    mineralisation and this BRGM deep drilling indicated that Lode 4 extends at least 200 metres below the limits of
    our Interim JORC Compliant resource with no sign of being closed off at depth.
    Secondly, it provides a real option of accelerating the development and reducing costs to access the higher grade
    mineralisation during the early stages of the mining operation. The high grade section in ADV Lode 4 drillhole
    BDH-4001 that intersected 54m @ 8.8% Cu, 1.1 g/t Au is located immediately adjacent to the crosscut from the
    decline into Lode 4 which throws up a number of exciting early cashflow options�

    The excellent condition of the underground development observed will now be taken into account in the scoping of the
    Bankable Feasibility Study for the Jabal Sayid project, due to commence in the first quarter of 2008. The first action
    between now and February is to organise a team to commence de-watering and to rehabilitate the decline. Given the
    excellent condition this is expected to take less than two months giving ADV a fully operable 3.9km production decline.

 
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