drilling update and ann just in ABN: 31 008 402 391 Level 7...

drilling update and ann just in ABN: 31 008 402 391 Level 7 Simpson House 249 Pitt Street Sydney NSW 2000
7 July 2004
ASX Announcement
DRILLING RESULTS
GIDGEE PROJECT, WA
Summary
Gateway Mining NL (ASX: GML) announces results of a reverse circulation drilling program
completed at its Gidgee Gold Project in Western Australia. Most of the drilling focused on the
Airport mining leases.
Highlights of the drilling include:
· The Rosie North trend has been extended a further 50 metres to the north. High-grade
gold mineralisation associated with a quartz reef has been intersected on the most
northern line returning 1 metre @ 24.59 g/t from 119 metres depth down hole. The gold
trend is now 300 metres in length and remains open.
· Holes drilled below the oxide zone intersected 1 metre @ 9.64g/t and 1 metre @ 12.22g/t
gold.
· Drilling at S Bend returned best results of 8 metres @ 3.44 g/t gold that included 2 metres
@ 11.49 g/t gold and an intersection of 7 metres @ 2.40 g/t gold.
· Drilling below the mined NE pit returned 2 metres @ 2.87 g/t gold.
Infill drilling at Rosie North will begin in the last week of July to test for further high-grade
oxide gold mineralisation and test the newly discovered quartz reef up dip and along strike.
Programs of ground gravity and ground magnetics will also begin shortly within the
company’s 380 square kilometre ground holding at Gidgee.
Details
The company has received results of a recent 41 hole RC drilling program totaling 4,097 metres.
Drilling tested targets within the Airport trend including, the Rosie North and S Bend prospects. Holes
also tested for depth extensions below the Rosie Castle, NE and Montague Boulder mined open pits.
At Barrelmaker one hole tested an EM target for nickel sulphide potential.
Results for each area are summarised below.
Airport Gateway 85%, Herald Resources Limited 15%
Rosie North
Fifteen holes for 1,415 metres were drilled to further test the gold mineralised trend discovered by
Gateway extending north of the Rosie Castle open pit. Ten of the holes tested below the oxide zone
for primary gold mineralisation.
Drilling targeting primary mineralisation below the oxide zone returned 1 metre @ 24.59 g/t gold from
119 metres, 5 metres @ 1.15 g/t gold from 100 metres, 1 metre @ 9.64 g/t from 67 metres, 3 metres
@ 2.60 g/t from 94 metres, 2 metres @ 4.40 g/t from 106 metres and 1 metre @ 12.22 g/t gold from
87 metres. Further shallow oxide mineralisation (<50 metres depth) was intersected and included 4
metres @ 1.40 g/t gold from surface and 2 metres @ 2.38 g/t gold.
ASX Announcement 7 July 2004
Gidgee Gold Project, WA
ABN: 31 008 402 391 Level 7 Simpson House 249 Pitt Street Sydney NSW 2000
Drilling results have extended gold mineralisation a further 50 metres to the north and mineralisation
remains open with a total strike length of 300 metres. The drilling is still at a 50 metre section
spacing. Numerous narrow higher grade zones have been intersected within a lower grade halo.
The company believes the quartz reef intersected on the northern line may be a north-east trending
cross structure and will chase its strike extent and up dip potential with RAB drilling. RAB drilling will
infill RC sections at 25 metre spacing targeting high-grade oxide gold mineralisation results, which if
successful, will enable a preliminary resource to be calculated.
The company has also received results of one metre split samples collected from the previous RC
drilling program over intervals originally submitted as 5 metre composite samples. Results of all new
1 metre splits received recently are reported in the table attached. The 1 metre splits and 5 metre
composite sampling results correlate well. Most samples are from the oxide zone and include 7
metres @ 2.68 g/t, 2 metres @ 10.95 g/t gold, 4 metres @ 3.07 g/t, 5 metres @ 4.08 g/t, 2 metres
@7.20 g/t and 2 metres @ 13.66 g/t gold.
S Bend
Seven holes for 634 metres were drilled at S Bend with holes testing an anomalous gold zone
intersected in earlier shallow RAB drilling. Holes intersected steeply dipping gossanous quartz veining
within sheared mafic rocks. Results included 8 metres @ 3.44 g/t gold that included 2 metres @
11.49 g/t gold and an intersection of 7 metres @ 2.40 g/t gold. Greater than 1 g/t gold has been
intersected over a 100 metre strike length and needs to be further investigated.
Rosie Castle, NE and Montague Boulder pits
Fourteen holes tested various structural targets below the shallow open pits. A new zone of gold
mineralisation was intersected below the North East pit, drillhole GRC 150 returned 2 metres @ 2.87
g/t gold from 55 metres. Drilling below Rosie Castle pit intersected a quartz-arsenopyrite vein that
returned 2 metres @ 2.96 g/t gold that included 1 metre @ 4.96 g/t gold.
Barrelmaker Nickel Gateway earning 80%, Gateway100%
Barrelmaker is located on the western side of the Gum Creek Greenstone Belt 15 kilometres west of
Airport. Previous RAB drilling by Gateway exploring for gold mineralisation has delineated ultramafics
over a 3.5 kilometre length hidden below transported lateritised cover. The shallow drilling discovered
elevated nickel (>0.3%), copper (>900ppm) and platinum (up to 47ppb).
A ground electromagnetic (EM) survey was completed over a portion (900-metre strike) of the hidden
ultramafic belt delineating an EM anomaly at the southern end of the survey
One hole tested the EM anomaly. No sulphides were encountered in the drilling with a best result of 5
metres @ 0.33% nickel intersected above the EM anomaly.
Significant RC drilling results are listed in the table below.
Hole No. AMGN AMGE Dip/
Azimuth
From
(m)
To
(m)
Width
(m)
Gold
G/t
ROSIE NORTH
GRC123 6965000 751275 -60/270 31 32 1 2.28
39 44 5* 0.99
GRC124 6965050 751215 -60/270 27 28 1 2.14
ASX Announcement 7 July 2004
Gidgee Gold Project, WA
ABN: 31 008 402 391 Level 7 Simpson House 249 Pitt Street Sydney NSW 2000
Significant RC drilling results are listed in the table below.
Hole No. AMGN AMGE Dip/
Azimuth
From
(m)
To
(m)
Width
(m)
Gold
G/t
ROSIE NORTH
GRC124 continued 33 34 1 1.11
62 64 2 2.57
GRC125 6965050 751260 -60/270 21 46 25* 0.46
GRC126 6965100 751250 -60/270 89 90 1 5.34
GRC127 6965100 751350 -60/270 27 29 2 1.76
30 31 1 1.00
100 105 5 1.58
119 120 1 24.59
GRC129 6964950 751255 -60/270 26 28 2 1.13
37 47 10* 0.55
GRC130 6964950 751300 -60/270 67 68 1 9.64
95 98 3 2.60
106 108 2 4.40
includes 106 107 1 8.15
GRC131 6964900 751275 -60/270 23 24 1 2.60
32 33 1 1.20
49 51 2 2.38
GRC132 6964900 751300 -60/270 0 4 4 1.40
87 88 1 12.22
GRC134 6964875 751340 -60/270 31 33 2 0.99
86 88 2 1.41
S BEND
GRC141 6965100 751125 -60/270 96 100 4* 1.33+
GRC142 6965125 751090 -60/270 17 24 7 2.40
GRC143 6965125 751120 -60/270 59 67 8 3.44
includes 60 62 2 11.49
97 100 3* 1.22+
GRC144 6965150 751125 -60/270 60 62 2 2.23
GRC145 6965175 751120 -60/270 62 63 1 1.21
GRC146 6965200 751095 -60/270 23 25 2 1.00
ROSIE CASTLE PIT
GRC121 6964745 751385 -60/270 64 66 2 2.96
includes 64 65 1 4.96
NE PIT
GRC150 6965630 751000 -60/090 55 57 2 2.87
GRC151 6965670 750985 -60/090 27 28 1 1.33
GRC152 6965630 750950 -60/090 25 27 2 1.04
ASX Announcement 7 July 2004
Gidgee Gold Project, WA
ABN: 31 008 402 391 Level 7 Simpson House 249 Pitt Street Sydney NSW 2000
BARRELMAKER NICKEL Nickel %
GRC119 6972500 735600 -60/360° 40 45 5 0.33
* Denotes composite sample. 1 meter splits to be sent for assay
+ Denotes bottom of hole.
Significant 1 Metre Splits from Previous Drilling at Rosie North
Hole No. AMGN AMGE Dip/
Azimuth
From
(m)
To
(m)
Width
(m)
Gold
G/t
GRC103 6964795 751235 -55/090 25 26 1 4.69
GRC104 6964825 751214 -55/090 60 61 1 2.69
GRC105 6964855 751268 -60/270 20 21 1 5.33
GRC107 6964875 751260 -60/270 29 36 7 2.68
GRC108 6964875 751275 -60/270 45 47 2 10.95
GRC109 6964875 751290 -60/270 27 28 1 1.52
GRC110 6964900 751240 -60/270 23 25 2 1.92
“ “ “ 37 38 1 1.09
GRC111 6964900 751260 -60/270 22 26 4 3.07
38 39 1 2.33
48 49 1 2.00
GRC112 6964950 751210 -60/270 18 19 1 4.06
22 23 1 3.51
GRC114 6964950 751240 -60/270 17 22 5 4.08
Includes 17 18 1 17.63
26 27 1 4.11
GRC115 6965000 751215 -60/270 24 25 1 2.27
GRC116 6965000 751230 -60/270 20 22 2 7.20
25 26 1 1.03
GRC117 6965000 751245 -60/270 52 53 1 15.75
GRC118 6965050 751235 -60/270 45 46 1 3.30
55 57 2 13.66
For more information:
Visit the company website www.gatewaymining.com.au
Or contact Simon Taylor, Exploration Manager
Tel: 61 2 9283 5711 Fax: 61 2 9283 5766
Email: [email protected]
ASX Announcement 7 July 2004
Gidgee Gold Project, WA
ABN: 31 008 402 391 Level 7 Simpson House 249 Pitt Street Sydney NSW 2000
This review accurately reflects information compiled by a full time officer of the company. Insofar as it relates to ore reserves and mineral
resources, it is based on information compiled by Mr SJR Taylor who is a corporate member of the Australian Institute of Geologists and
who has more than five (5) years’ experience in the field being reported.