300 metres diamond drilling to test dipping extension of copper and silver mineralisation defined by trenches and adits
Results likely end February 2012
Sediment hosted copper and silver mineralisation
Chinalco Yunnan Copper Resources Ltd (CYU) and Yunnan Copper Industry (Group) Co. Ltd (YCI) confirm that drilling commenced at the Xinzhai project on 31 January 2012. Xinzhai project is one of the four projects in northern Laos that are 100% held by Yunnan Copper Sanmu Mining Industry Co Ltd (a joint venture in which CYU has an agreement to earn a 51% interest within one year).
Figure 1. Locations of Jiuzhai, Xinzhai, Nadao and Modeng projects held by Sanmu in northern Laos
The first hole will test Prospect 1 at the Xinzhai tenement, which covers 140 km2 in Phongsaly Province, northern Laos. The hole (XZPH-001) is being drilled along a section line focusing on the previous mineral results obtained from trench TC14 of 1.70m@ 0.73% copper and from adit PD13 of 19.94m@1.17% copper.
The mineralisation is controlled by a north-east fault and is located at the centre of a soil sampling anomaly. The results from the trench and adit indicates that the mineralisation becomes thicker and higher grade when it dips to the north-west.
Figure 2. Hole XZPH001 is to test the dipping extension of known mineralisation defined by trenches and adits
Figure 3. Section map along Hole XZPH001, trench TC14 and adit PD13
Further holes will be designed and drilled to test the minerals at Prospect 1 after reviewing the results of XZPH001. In addition a drilling program will be designed for Prospects 3 and 5 as defined by previous exploration within the Xinzhai project.
The current drilling program at Jiuzhai project, Oudomxay Province in northern Laos is still on-going. Sanmu now have two rigs at the site and aim to finish the 600m diamond program by the end of February 2012.
About Chinalco Yunnan Copper Resources Chinalco Yunnan Copper Resources Limited (CYU) explores and develops minerals in Australia, Chile and Laos. CYU is supported by cornerstone shareholder Yunnan Copper Industry (Group) Co Ltd (YCI); China's third largest copper producer. CYU acts as YCI's international investment arm and mining house.
Australia CYU is currently undertaking a resource estimation on the Elaine Copper REE Cobalt Gold discovery within Mary Kathleen JV tenements near Mount Isa that cover over 1,000km2 in a pedigree mining area. CYU has earned 70% in the Mary Kathleen project working with joint venture partner Goldsearch Limited (GSE).
Chile CYU is currently drilling at the Candelabro project with drilling preparations underway also at the Caramasa and Palmani porphyry properties, all three in joint venture with Rio Tinto in Northern Chile. Another CYU Chile project is the Humitos Copper Porphyry in the Copiapo District of north Chile with tenure here in JV with Xstrata subsidiary Xstrata Copper Norte. Humitos comprises undrilled targets including an untested supergene horizon in the most prolific copper belt in the world, the Chilean Cordillera.
Laos CYU is undertaking drilling in Northern Laos through its agreement to acquire 51% ownership of China-based company Sanmu Mining. Sanmu holds 100% of four properties in northern Laos. The corporate target is 100 million tonnes at a grade of 1% copper and 150 g/t silver. Short term processing of copper silver orebodies is also a project objective in Laos, subsequent to resource drilling.
Argonaut Resources annoucnes new gold drill targets identified at Xekong in Laos
Five new gold drill targets peripheral to the Ban Klong gold discovery identified
Drilling planned to confirm potential additional, near surface gold mineralisation in adjacent areas.
Previous results included: 6m at 26.2g/t gold from 22m.
Rock chip sampling south of Ban Klong support potential of new drill targets - up to 10.95g/t gold revealed.
Ban Bak South West
Possible skarn style, polymetallic (gold, silver, lead and zinc) mineralisation identified in calcareous sediments adjacent to a major porphyry intrusion.
Exploration planned for November/December 2011 to define RC drill targets.
Argonaut Resources NL (ASX: ARE) is pleased to announce that five additional drill target zones peripheral to the gold discovery at Ban Klong (Figure 1) and a possible polymetallic skarn (Figure 2) have been identified in the Ban Bak area on Argonaut's 65% held Xekong concession in southern Laos.
Ban Klong Extensions
The initial RC drilling program at Ban Klong returned drill intercepts including 6m at 26.2g/t gold from 22m in drill hole BBRC31; 12m at 3.48g/t gold from 10m in drill hole BBRC24; and 8m at 4.45g/t gold from 0m in drill hole BBRC22. These results were announced on 15 July 2011.
Following receipt of these results, Argonaut commenced a program of sampling aimed at identifying extensions to the magnitude of the Ban Klong anomaly as well as additional mineralised zones peripheral to the Ban Klong and Ban Bak Central anomalies. The program succeeded in delineating five new target zones for drill testing in the upcoming Laotian dry season.
Of the five new target zones, three that are located south of the Ban Klong discovery are supported by rock chip sampling with gold up to 10.95g/t in recently acquired rock chip samples.
Four of the five target zones are supported by high order (>0.5g/t gold) soil samples.
Drill intercepts cited in Figure 1 and the text of the report may not represent true widths of mineralised bodies. Additional drill hole data is required to properly determine the geometry and dimensions of any potentially economic mineralisation.
Ban Bak South West
Argonaut previously identified a low priority gold/base metal target in the southwestern corner of the broader Ban Bak area. Recent sampling has substantially elevated the ranking of this target.
The target sits on the margin of a confirmed porphyry intrusion, which is interpreted by Argonaut geologists to be the intrusive centre of the various porphyry elements found across the Ban Bak area. The company is also conscious that many surrounding sedimentary units are calcareous, thus creating the ideal geological setting for formation of skarn style mineral deposits.
Recent work has identified possible skarn style mineralisation at Ban Bak South West as well as polymetallic veining with rock chip sampling returning gold, silver, lead and zinc (+/- copper) grades of up to 1,100g/t silver and 24% lead
The company will follow up on these encouraging results in November on December 2011 with a program of exploration work designed to better define targets for RC drilling.
