Chacarilla Project – Bolivia Negotiations on the Chacarilla project continued during the period. In early October 2005, Sundance directors held face to face discussions with the Chacarilla Joint Venture Partner in both La Paz Bolivia and also on site at Chacarilla. The directors remain hopeful that the Joint Venture Partners will resolve progress on this project. Sundance Resources Ltd is pleased to announce that it has purchased the royalty over the Chacarilla Copper Project in Bolivia. Sundance currently owns 50% of Chacarilla and is pursuing 100% ownership. The royalty is a 3% gross royalty over the project Sundance Board acquired the royalty in order to consolidate its holding on the project.
7 February 2005 MANTOS GRANDES COPPER-GOLD PROJECT (CHILE) GEOCHEMICAL SAMPLING PROGRAM Sundance is pleased to announce that results from an initial geochemical sampling program recently conducted at the Mantos Grandes prospect in Chile, have confirmed the existence of copper-gold-silver-molybdenum geochemical anomalies in areas adjacent to the old underground workings. A total of 22 soil samples were collected from geological target areas in order to assess the prospectivity of areas outside the known skarn deposit. Anomalous Cu values were found in each of the soil samples, and ranged from 550 to 59,700 ppb (low detection limit 10 ppb). Silver values ranged from 2.3 to 235ppb (low detection limit 0.1 ppb). The program successfully defined strong coincident Cu, Ag, Mo, Au, Zn, Cd and W responses over the copper target zones. Granitic zones also returned elevated Cu, Ag, Au, Zn and Pb values, whilst the main fault zone returned elevated Ag, Co, Zn and Pb. A mineralized breccia showed characteristically elevated Cu, Ag, Co, Zn and Pb. All field work and geochemical sampling were conducted under the supervision of Perth based consultants MMI Technology. Sample preparation and assaying was conducted by ALS Chemex laboratories in Australia. Based on the above results, Sundance intends to proceed immediately with a step-out geochemical program to further assess the extent of the new anomalies. This will most likely be followed with a stage I drilling campaign (some 1,500m) aimed at delineating resources around the existing underground workings, as well as testing the main geochemical and geophysical anomalies identified to date. Past copper mining activities at Mantos Grandes concentrated in a skarn deposit located in the central area of the leases. Ian Sandover Director
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