A C N 0 0 8 9 8 2 4 7 41st Floor, 8 Parliament Place West...

A C N 0 0 8 9 8 2 4 7 4
1st Floor, 8 Parliament Place West Perth
WA 6005
PO Box 1618 West Perth WA 6872
Tel: (08) 9481-7833
Fax: (08) 9481-7835
Email: [email protected]
Website: www.austunitedgold.com
20 November 2006
The Manager - Companies
Australian Stock Exchange Limited
Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
Dear Sirs,
STRONG POTENTIAL FOR LARGER RESOURCE
AT THE MANINDI ZINC PROJECT
HIGHLIGHTS
• Down Hole Electromagnetics (DHEM) & Grade Modelling at both Warabi (Zone
A) & Mulgara (Zone B) strongly indicates the presence of further mineralisation
at depth.
• Modelling shows that the resource positions at Warabi & Mulgara have been
extended by recent drilling and have strong potential of continuing at depth.
• The target areas generated from this modelling will be tested in the upcoming
diamond drilling program.
Metals Australia Ltd is pleased to announce the modelling of the Down Hole Electromagnetic
(DHEM) program recently completed at Warabi (Zone A) & Mulgara (Zone B).
Diamond drill holes were emplaced at the northern end of both Warabi & Mulgara to facilitate
the DHEM program in September. The results of the DHEM and ‘grade’ modelling is as
follows:
1
1. WARABI (ZONE A)
The current JORC compliant resource at Warabi, utilising a 1% Zinc cut-off grade, is:
119,350 t @ 8.42% Zn
A single drill hole was emplaced to the west and adjacent to the northern extensions of
Warabi main lode. This hole was then used to facilitate the DHEM survey. This survey
successfully located a dipping conductor to the east of the drill hole in the target position
shown on the attached diagram.
A geological study of the ore system, which included long & cross sectional analysis,
confirms this target area, which will be further tested by the upcoming drilling program.
It should be noted, that despite the resource for this area having yet to be recalculated,
recent drilling in this area has increased the physical size of this deposit, both to the
north and at depth.
Recent drilling by Metals Australia has included the following results:
MNRC 008 664246E 6818038N 44-49 m 5m @ 11.8% Zn
MNRC 014 664314E 6817997N 43-61 m 18m @ 14.96% Zn
2. MULGARA (ZONE B)
The current JORC compliant resource at Mulgara, utilising a 1% Zinc cut-off grade, is:
218,240 t @ 7.77% Zn
A single drill hole was emplaced to the east and adjacent to the northern extensions of
Mulgara main lode. This hole was then used to facilitate the DHEM survey. This survey
successfully located a dipping conductor to the east of the drill hole in the target position
shown on the attached diagram.
A geological study of the ore system, which included long & cross sectional analysis,
confirms this target area, which will be further tested by the upcoming drilling program.
It should be noted, that recent drilling in this area combined with the DHEM & grade
modelling indicate that the ore system has a northerly plunge component and remains
untested along strike, at depth.
Recent drilling by Metals Australia has included the following results:
MNRC 012 664174E 6818174N 23-39 m 16m @ 7.40% Zn
MNRC 013 664211E 6818144N 82-92 m 3m @ 16.90% Zn
2
The grade modelling shown on the accompanying diagram shows the grades and drill hole
‘pierce-points’ on the main lode of each ore body, which contains the majority of the
resource tonnage. The diagram is a slice along the long axis of the deposits, with north on
the right hand side of the page.
Warabi & Mulgara also contain a number of smaller/ discontinuous ‘footwall’ and ‘hanging
wall’ lodes that add incremental tonnage to a mining scenario; these smaller lodes are not
represented on the attached diagram.
A program of diamond drilling is currently being planned to test the target zones delineated
at Warabi & Mulgara, and should commence in either December 2006 or January 2007,
subject to drill rig availability.
KULTARR & KOWARI (ZONE D)
The current JORC compliant resources at both Kultarr & Kowari , utilising a 1% Zinc cut-off
grade, are: 715,060 t @ 7.46% Zn
The interpretation and modelling of Kultarr & Kowari (Zone D) is currently being finalised and
will be announced in the near future.
Yours faithfully
Metals Australia Limited
Norman Grafton
Company Secretary
Competent Person Declaration
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Timothy Putt of Exploration and Mining Information Systems, who is a member of The
Australasian Institute of Geoscientists. Mr. Putt has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resource and Ore Reserves”. Timothy Putt consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears.
3
GRADE MODELLING
& EM TARGET ZONE
6818200 mN
300 mN
6818050 mN
6818100 mN
6818150 mN
6818250 mN
6818200 mN
6818050 mN
6818100 mN
6818150 mN
6818250 mN
550 RL
350 RL
400 RL 400 RL
450 RL 450 RL
500 RL 500 RL
6817900 mN
6817950 mN
6818000 mN
550 RL
300 mN
6817900 mN
6817950 mN
6818000 mN
350 RL
MULGARA (ZONE B) INFERRED
WARABI (ZONE A) FAULT
APPROX SURFACE
GRADE MODELLING
& EM TARGET ZONE
(AT PRESENT)
119.794
0.17832
50.7
7.8633
MNRC013
FRC037
MNRC007
0.892
2.23
0.0134
60.77
0.0286
0.0289
108.867
186.7
-0.0198
38
0.018
269.28 59
0.14
3.77 1.78
0.723
94.373
11.32 5.95
2
0.0276
63.3732
7.524
181.455
51
90.92
180.64
96.8
5.59
118.4
FRC008
FWD004
FRC030
FWD002
FWP001
FRC028
FRC007
FWD005
FWD007
FWD001
FRC027
MNRC014 MNRC008
FRC063 FRC012
PH003
FRC011
FRC032 FRC035 FWD009
FRC032
FRC013
FRC031
FRC033
FWD010
FRC034
FRC012
FRC062
FRC044
FRC011
FRC035
MNRC012
Author: TSP
Office: Perth
Drawing: EMIS
Date:16/11/2006
Scale: 1:1000 Projection: Non-Earth (meters)
40
METALS AUSTRALIIA LTD
MANINDI ZINC PROJECT
WARABI & MULGARA RSC
MAIN LODE
CONTOURED LONG SECTION
(ZINC% METRES)
0 10 20
metres
MLS Manindi LS (Zn% Metres)
250 to 1,000 (1)
100 to 250 (6)
50 to 100 (8)
25 to 50 (1)
10 to 25 (1)
5 to 10 (4)
2.5 to 5 (1)
0.5 to 2.5 (5)
0 to 0.5 (7)
-999 to 0 (1)
6819000 mN
6818500 mN
6818000 mN
666000 mE
665000 mE
666000 mE
665500 mE
665000 mE
665500 mE
664500 mE 664500 mE
6819000 mN
6818500 mN
6817500 mN
664000 mE
663000 mE
663500 mE 663500 mE
664000 mE
6817500 mN
663000 mE
6818000 mN
FRC 018 81-94m 13m @ 0.27% Zn
NUMBAT
FWD 012 41.97-44.5m 2.53m @ 2.35% Zn
NINGAUI
FRC 018 81-94m 13m @ 0.27% Zn
MNRC 015 71-74m 3m @ 1.00% Zn
BANDICOOT
Surface Sampling up to 444 ppm Zn
MNRC 002 82-86m 4m @ 1.58% Zn
603,130 t @ 7.66% Zn
111,930 t @ 6.43% Zn
KULTARR (Zone D Nth)
KOWARI (Zone D Sth)
MULGARA (Zone B)
218,240 t @ 7.77% Zn
QUOLL
WARABI (Zone A)
119,350 t @ 8.42% Zn
Surface Sampling up to 620 ppm Zn
MNRC 005 15-18m 3m @ 0.62% Zn
M 57/227
M 57/240 P 57/934
P 57/935
Author: EMIS
Office: Perth
Drawing: TSP
Date:17/11/2006
Scale: 1:8000 Projection: MGA Zone 50 (GDA 94)
300
MANINDI ZINC PROJECT
CONTOURED SURFACE
GEOCHEM WITH BOTH
PROSPECT & RESOURCE
LOCATIONS
METALS AUSTRALIIA LTD
0 75 150
metres
Manindi Geochem (Zn ppm)
5,000 to 10,000 (4)
1,000 to 5,000 (61)
500 to 1,000 (94)
250 to 500 (132)
100 to 250 (230)
50 to 100 (325)
25 to 50 (587)
0 to 25 (262)