report

Copper Strike Limited
Electromagnetic interpretation at Einasleigh highlights size potential
21 March 2005
ASX
RELEASE
Corporate Details
ASX Code: CSE
Issued Capital:
51.7m shares
2.9 m unlisted options
Key Shareholders:
Teck Cominco Australia 16.7%
GeoDiscovery Group 9.5%
Registered Office:
Level 9 – 356 Collins Street
Melbourne, Victoria
Australia 3000
Directors:
Mr Tom Eadie
Executive Chairman
Mr Peter Topham
Non Executive Director
Mr Neil McLean
Non Executive Director
Website:
www.copperstrike.com.au
For further information please contact:
Tom Eadie
Executive Chairman
Phone: 03 96400955
Mobile: 0419 880333
Fax: 03 96420698
[email protected]
ABN 16 108 398 983
Highlights
Einasleigh Copper Mine
A downhole electromagnetic (DHEM) survey has now been completed on 4 holes at the Einasleigh Copper Mine prospect. Detailed interpretation indicates that the conductive mineralisation (the conductor) identified by the DHEM, trends in a south southwest direction and dips steeply. A gentle plunge to the SSW is evident from this data. The conductor appears to be at a depth of approximately 200 metres and continues to a depth of approximately 400 metres in the area of the surveyed drillholes. The strike length of the conductor is interpreted to be at least 300 metres and is open to the south. The thickness of the conductor is difficult to determine from the DHEM data. A surface electromagnetic survey is now in progress to determine the southern extent of the conductor.
The next drilling programme is due to start at Einasleigh immediately after Easter to follow up these extremely interesting results from the DHEM survey.
Kaiser Bill
Assay results have been received from the first 4 Reverse Circulation (RC) holes at Kaiser Bill which is located approximately 8 kilometres from Einasleigh. The target at Kaiser Bill is a bulk tonnage, open-cuttable mineralisation of moderate grade. Best results include:
30m @ 0.78% Cu from 6m in KBRC 01
(including 6m @ 1.30% Cu & 7m @ 1.66% Cu)
6m @ 1.07% Cu from 42m in KBRC 02
17m @ 0.46% Cu from 61m in KBRC 03
22m @ 0.63% Cu from 57m in KBRC 04
(including 8m at 1.02% Cu).
All of the better assays, including associated gold and silver, are shown in Table 2. These are excellent initial results from one line of drilling within a target zone that has a surface exposure greater than 1.2 kilometres long.
1
Introduction
The Einasleigh Project (393 square km – 100% Copper Strike), located approximately 70 km southeast of Georgetown in north Queensland, contains many of the more advanced copper prospects in the Copper Strike portfolio. The Einsleigh Copper Mine, Kaiser Bill, Bloodwood Knoll, Railway Trend and Teasdale are of particular interest, and all have been targeted for drilling in the next 6 months. Einasleigh Copper Mine (high grade underground) and Kaiser Bill (moderate grade open cut) are the initial targets to advance Copper Strike’s strategy of moving to production as quickly as possible.
Six diamond drill holes in the last 3 months have discovered a zone of previously unknown mineralisation down plunge from the early 1900’s Einasleigh Copper Mine where production was approximately 136,000 tonnes of 6.0% Cu, 0.5 g/t Au and 31 g/t Ag. The best intersection in the recent drilling was 50m @ 6.65% Cu in END 06.
In addition an 8 hole drill programme is currently underway at the nearby Kaiser Bill prospect. Assays are presented in Table 2 for the first 4 holes of this programme.
Einasleigh Copper Mine DHEM Survey
A DHEM survey has now been completed on 4 holes at the Einasleigh Copper Mine prospect. Detailed interpretation indicates that the conductive mineralisation (the conductor) identified by the DHEM, trends in a south southwest direction and dips steeply. The location of the interpreted conductor is shown in plan view in Figure 1.
Figure 1: Plan view of drill area with interpreted conductor
2
Figure 2: North – South longitudinal section showing interpreted conductor
Figure 2 illustrates the orientation of the interpreted conductor in 3 dimensions. There is a plunge to the SSW and the depth from surface is approximately 200 metres in the area of the surveyed drillholes. The conductor appears to continue in a down dip direction for about 200 metres.
The strike length of the conductor is interpreted to be greater than 300 metres. This a minimum strike extent and is poorly resolved by the DHEM data. A surface electromagnetic survey that is now in progress will determine how far the conductor continues to the south.
No interpretation of the average thickness of the conductor is possible from the DHEM data. Further drilling will be required in this regard. The next drilling programme is due to start at Einasleigh immediately after Easter.
As in all electromagnetic modelling of this sort, Figures 1 and 2 are simplified views of a more complex situation. These figures illustrate a conductive envelope in which there are multiple lenses of mineralisation that may not all be continuous over the total extent of the interpreted conductor.
3
Kaiser Bill Assay Results
Analytical results have been received from all four Reverse Circulation (RC) drill holes completed at the Kaiser Bill prospect, where the target is a bulk tonnage, open-cuttable deposit of moderate grade. Visual examination of the drill cuttings indicate that almost all of the copper mineralisation is contained in the copper sulphide mineral chalcopyrite. Very little oxide mineralisation is evident.
These holes are a test of a very small and shallow portion of the prospect that has a surface exposure greater than 1.2 kilometres long and represent a strong start to Copper Strike’s goal of better understanding the mineralisation in the area before attempting to outline a resource.
Figure 3: Kaiser Bill Prospect – image of ground magnetics and outcrop geology showing location of previous drillholes including Teck Cominco hole KBD01. New Copper Strike drilling, KBRC 01 – 04, is highlighted.
Diamond drilling is now in progress and a program of four additional holes will be completed by Easter. The target of these holes lies between KBRC 01 – 04 and the Teck Cominco hole KBD01 which returned 58 metres containing 0.86% Cu, 0.21 ppm Au and 11 ppm Ag.
Table 1: Location, azimuth and dip of Kaiser Bill holes
Hole No
Easting
AGD 84 Zone 55
Northing
AGD 84 Zone 55
Azimuth (magnetic)
Dip
KBRC 01
186945
7948748
3400
700
KBRC 02
186947
7948724
3400
700
KBRC 03
186953
7948704
3400
700
KBRC 04
186961
7948667
3400
700
4
Table 2: Significant assay results (>0.40% Cu) from RC drilling at Kaiser Bill
Hole No.
Cut-off %
From m
To m
Interval
Cu %
Ag ppm
Au ppm
KBRC 01
0.1
6
36
30
0.78
4.3
0.23
Includes
0.5
18
24
6
1.30
2.8
0.18
and
0.5
26
33
7
1.66
8.5
0.27
KBRC 02
0.1
21
35
14
0.48
4.4
Includes
0.5
22
25
3
0.71
10.4
and
0.5
30
33
3
0.69
2.3
0.11
0.1
42
48
6
1.07
9.9
0.23
Includes
0.5
42
47
5
1.18
11.5
0.26
KBRC 03
0.1
27
38
11
0.57
1.7
Includes
0.5
30
38
8
0.69
1.8
0.1
40
58
18
0.35
2.4
Includes
0.5
41
43
2
0.69
2.1
and
0.5
45
46
1
0.54
1.5
and
0.5
56
57
1
0.86
16.0
0.1
61
78
17
0.46
18.9
Includes
0.5
62
63
1
0.55
7.9
and
0.5
68
73
5
0.66
27.7
and
0.5
75
76
1
1.10
31.2
KBRC 04
0.1
47
54
7
0.84
2.2
Includes
0.5
48
53
5
1.09
2.1
0.1
57
79
22
0.63
1.4
0.17
Includes
0.5
57
65
8
1.02
2.2
0.28
and
0.5
72
73
1
1.60
4.1
0.38
and
0.5
76
77
1
0.58
1.4
0.1
81
83
2
0.57
4.5
Hole ends
Includes
0.5
81
82
1
0.78
6.1
in
0.1
118
120
2
1.63
38.3
mineral-
Includes
0.5
118
119
1
2.89
52.7
isation
Tom Eadie
Managing Director
The information in this report as it relates to geology, geochemical and exploration results was compiled by Mr. Neil McLean, MAusIMM, who is a Competent Person and has 20 years experience in the minerals industry and the activities being reported on. Mr. McLean consents to the inclusion of this information in the form and context in which it appears in this report.
The information in this report as it relates to geophysics was compiled by Mr. Graeme Mackee, MAIG, who is a Competent Person and has 20 years experience in the minerals industry and the activities being reported on. Mr. Mackee consents to the inclusion of this information in the form and context in which it appears in this report.
For further information, please contact:
Tom Eadie, Managing Director Peter Topham, Director
Phone: 03 96400955 or 0419 880333 Phone: 03 96023626 or 0412 220634
Email: [email protected] Email: [email protected]
5