500% increase in cu
Well we did got more shares issued which relates to a bit more dilution , But this recent report does help balance out the valuation a little _________________________ _ 21 March 2006 _
ASX ANNOUNCEMENT OUTSTANDING NEW HIGH GRADE COPPER INTERSECTIONS AT CINABRIO MINE IN CHILE SMC Gold today announced new broad, high grade copper intersections at its Cinabrio copper-gold mine in Chile, two weeks after announcing the discovery of a new high grade zone beneath the mine. “These latest results are beyond our expectations,” SMC Gold Managing Director, Mr Rob Kidd said today, “and highlight the high quality of the Cinabrio orebody on which we are basing our current expansion.” Drill hole CN-12A intersected two, broad, high grade zones approximately 30 metres and 60 metres below the footwall of the main orebody: _ 19 metres @ 4.37% copper from 280 metres o including 2 metres @ 13.91% copper and 51 g/t silver _ 7 metres @ 2.18% copper from 311 metres The lower intersection is incomplete with the hole ending in 2% copper mineralisation due to the depth limitation of the drill rig. The hole will be extended using a diamond drill rig. The latest intersection follows the announcement earlier this month of footwall mineralisation intersections in two drill holes, CN-11 and CN-12. Intersections for these holes ranged from 3 metres at 2.59% copper to 7 metres at 3.69% copper. This latest intersection is approximately 65 metres down dip of drill hole CN-12. _ _ ___________________________ _ Mr Kidd said: “We have been very successful in extending the resource at Cinabrio which has been increased by nearly 500% in 2005 to 10,770,000 tonnes at 1.43% copper. “This new high grade copper zone offers further opportunities to significantly extend the resource and points to an exciting future for the company in Chile. “The copper mineralisation is largely bornite and is contained within an andesite host rock. This differs from the chalcopyrite/bornite mineralisation of the main Cinabrio orebody which occurs in a calcareous siltstone (lutite). Further work is required to determine the relationship between the two zones of mineralisation. “The thickness and high grade of the latest intersections are extremely encouraging and we are planning a follow up hole to intersect the footwall mineralisation approximately 50 metres down dip of CN-12A to confirm ore continuity at depth,” he said. The current drilling programme, which is expected to be completed within two weeks, is aimed at upgrading resource categories, as well as providing information for detailed mine planning and confirming grade and continuation of mineralisation along strike and at depth. An announcement will be made shortly with a further update on the infill drilling programme. Details of drill hole intersection: Collar coordinates Hole Length metres North East Elevation (m) Azimuth Incl. CN-12A 318 6,599,594 288,763 375.11 250 -90 _ _ ___________________________ _ Drill Hole CN-12A From metres To metres Length metres Copper (%) Silver (ppm) Main orebody 227 252 25 1.58 8 footwall mineralisation: upper lens 280 299 19 4.37 19 lower lens 311 318 7 2.18 9 _ Assays are from SMC’s on-site laboratory (10% of samples have been sent to an independent laboratory for check assays) _ All holes were drilled using reverse circulation techniques A full colour version of the announcement can be found on the company’s website at www.smcgold.com.au/news.php Peter Evans Chairman For further information contact: Simon Brodie Chief Financial Officer Tel: (07) 3839 4166, Mob 0411 558 544 Email: [email protected] www.smcgold.com.au _ The information in this report that relates to Cinabrio exploration drilling results is based on information compiled by Mr Robert Kidd who is the Managing Director of SMC Gold Limited and a Member of The Australasian Institute of Mining and Metallurgy. Mr Kidd has sufficient experience which is relevant to the style and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kidd consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. _
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SMO Price at posting:
0.0¢ Sentiment: None Disclosure: Held
