People, Ya gotta get into this one. You thought Redback was a cert, well this is better. Check out the grades and the width of the intersections. Remember that there are only 20 million shares. If this pans out to a million oz resource which seems easily on the cards we're looking at $1.20/share minimum. Don't forget that they have ground in Oz as well, right next to minotaur. Plus they have $2.5 million in the bank. How can you lose on this one? Greenrisian
ADAMUS RESOURCES LIMITED 2002-07-01 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ The Directors of Adamus Resources are pleased to announce that the Company has executed agreements whereby Adamus Resources will acquire 90% of the Salman Gold Project, an advanced and highly prospective exploration gold project located in Ghana, West Africa.
The project contains substantial mineralization and excellent exploration potential as well as a number of other important attributes including:
* Located in Ghana, West Africa, the World's 10th largest and Africa's 2nd largest gold producer by country (2.5M oz/year)
* Situated on the Ashanti Shear Zone - host to over 60 million ounces of gold.
* Well-defined, high order of magnitude soil anomaly (+200ppb) that extends for over 4,000 metres along-strike.
* Preliminary trench sampling results have identified a number of substantial zones of near surface mineralization including: l00m @ 6.lg/t gold.
* Initial Reverse Circulation drilling results include (see table and sections for details):
SRC 17, 73m @ 2.8g/t gold from surface Inc, 21m @ 8g/t gold SRC 18, 42m @ 3.2g/t gold from surface SRC 82, 85m @ 2.2g/t gold from 20m
* Both the style of mineralization and geological setting are comparable to the Bogosu gold mine (40km along-strike to the north) which has successfully mined oxide ore for over 10 years.
* Excellent proximity to infrastructure with the project located less than 50km by road from the port city of Takoradi and less than 15km from the town of Axim.
Independent experts, Resource Services Group conclude "Highly likely a significant oxide and primary resource will be identified at Salman".
Proposed transactions under the agreements are summarised as follows:
Adamus is to acquire 100% of both the Afrowest Gold Limited and Hightime Investments Enterprises Pty Ltd interests together comprising the Salman Gold Project, in consideration for the issue of a total of approximately 10.1 million ordinary shares in Adamus.
* Adamus will also acquire in-country exploration equipment and will have direct access to existing expertise.
* Following the acquisition Adamus will own 90% of the Salman Project with the remaining 10% controlled by the Ghanaian government.
* The acquisition is subject to Adamus shareholder approval.
PROJECT LOCATION AND PREVIOUS EXPLORATION
The Salman Gold Project is located in southern Ghana, West Africa, situated on the southern extension of the Ashanti Shear Zone. The project consists of a number of tenements covering a total area of 84 square kilometres, with access gained via 50km of good quality roads from the port city of Takoradi, some 300 km of sealed roads from capital city, Accra.
The majority of exploration completed within the project area was conducted by BHP in the mid 1990's. In total BHP completed 71 Reverse Circulation drill holes for a total of 6,961 metres and four Diamond holes for a total of 571 metres. Results from the drilling confirmed mineralization extended over a strike length of 4,000 metres. As the drilling was completed on very broad spaced lines (300-500 metres apart), a meaningful resource was never calculated.
Subsequent exploration has focused on further delineating mineralisation within the main identified zone and on delineating new targets through closer-spaced, surface sampling techniques.
GEOLOGICAL SETTING AND EXPLORATION POTENTIAL
Geology within the tenements is dominated by a sequence of NNE trending, sheared and folded interbedded greywackes and carbonaceous phyllites. Regionally these Proterozoic rocks are part of the Upper Birimian unit, which typically hosts significant mineralisation as it comes into contact with the Ashanti Shear Zone. Mineralization within the Stillman Project is no exception, with gold occurring in sulphides within quartz/carbonate veining hosted in fractured and brecciated tuffaceous greywackes.
Exploration completed within the Salman Project to date has identified several zones of substantial mineralisation located over several kilometres of strike. The Company believes there is potential to identify a significant resource within the existing zone of mineralisation and there is also potential for further mineralisation associated with parallel structures.
TABLE 1: SUMMARY OF BHP DRILL INTERSECTIONS WHICH CONTAINED GOLD INTERSECTIONS GREATER THAN 10 GRAM METRES.
HOLE AZIMUTH DIP BOH FROM TO INTERVAL AU METRE/GRAMS M M M M G/T
* All Samples were taken in 1m intervals and fire assayed * Intersections are down-hole width and may not present the true width of mineralisation
COMPANY FOCUS
Following shareholder approval relating to the acquisition of the Salman Gold Project the Company intends initiating an exploration program designed to both determine the precise geometry and nature of the mineralisation as well as provide data for a future resource calculation.
Adamus will continue to advance its existing Australian projects with its available cash resources.
The Company is currently completing a Notice Of Meeting ("NOM") which will detail the various resolutions proposed by the Company relating to the acquisition of the Salman Project. Included in the NOM will be an Independent Geological Report and a Valuation of the Salman Gold Project. These documents will be included in the NOM to provide shareholders with independent and detailed geological information relating to all aspects of the Salman Gold Project.
Following careful consideration and due diligence, the Directors of Adamus believe that the acquisition and exploration of the Salman Gold Project will provide shareholders with valuable exposure to a quality project in a rising gold market.
H Halliday MANAGING DIRECTOR
ADU Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held