Zambezi Resources Limited (ASX: ZRL)
Copper Gold Projects Update
? Eight drilling rigs active on Kangaluwi, Cheowa and Mulofwe projects
? Computer modelling completed on Kangaluwi VTEM anomaly
Zambezi Resources Limited (?Zambezi?) (AIM: ZRL; ASX: ZRL) today announces progress on its priority copper gold projects in Southern Zambia.
Mobilisation of drill rigs for the 2008 field season commenced in early May. Eight drilling rigs are currently active, with five drilling at the Kangaluwi Copper Project, two drilling at the Cheowa Copper Gold Project, and one drilling at the Mulofwe Copper Gold Project.
At Kangaluwi, 33 holes were completed to 31 May, for a total of 6,088 metres. The 2008 RC and Diamond drilling program is designed to test the strike and down dip extensions of copper mineralisation at the Kangaluwi prospect, and to follow up encouraging preliminary results from Kalulu and Chisawa. In addition, computer modelling has now been completed on the recently announced strong and persistent VTEM electrical conductor discovered at the Kangaluwi Prospect. The position of these discrete conductors suggests that they represents a down-dip extension of the copper-mineralised stratigraphy previously defined by soil sampling. This stratigraphy has been drilled to the north and west of the VTEM anomaly and yielded significant copper mineralisation over substantial widths in multiple zones. Significantly, the core of the newly defined conductors has not yet been tested by drilling. Modelling suggests that there are two conductors, the main conductor extending from near surface to a considerable depth below surface, plunging at 10 degrees. Drilling to test the conductors will commence before the end of this month.
At Cheowa, deep Diamond drilling targeting the 200m-400m panel at CC2 is continuing, with in excess of 15,000m of drilling achieved since January. This drilling includes a suite of holes to provide samples for further metallurgical testwork. Assays are awaited, but visible mineralisation intersected to date is consistent with that previously reported throughout this panel.
At Mulofwe, Diamond drilling commenced on 9 June, targeting the recently announced VTEM electrical conductor. Computer modelling suggested that the VTEM response was consistent with the presence of a conductor or conductors dipping shallowly to the south and east at between 5 and 25 degrees. The drilling program was designed to test the targets with a total of five holes to vertical depths of between 100 and 200 metres. The first Diamond drillhole (MDGDD0001 8312456N 710290E) was drilled at an inclination of -80 degrees towards an azimuth of 336 degrees, and reached a total depth of 129 metres. The hole intersected pyritic graphitic shale from 68-81m downhole. No significant copper mineralisation was observed. Sampling is underway and assays are awaited. The pyritic graphitic shale is thought likely to explain the presence of the VTEM conductor, but given the highly anomalous copper, gold and uranium geochemistry within the Mulofwe project area, drilling is continuing on other areas of the regionally extensive conductor.
For more information contact:
Julian Ford, Managing Director Jeremy Wrathall, Non-Executive Director
Zambezi Resources (Australia) Zambezi Resources (London)
+61 (08) 9216 9000 Mob: +44 7712 776 100
+61 (0) 418 949 580
Fiona Owen Laurence Read / Graham Herring
Grant Thornton Corporate Finance Threadneedle Communications
+44 20 7383 5100 +44 20 7936 9600
Nicholas Read / Kate Bell
Read Corporate
+61 (08) 9388 1474
+61 (0) 419 929 046
ADDITIONAL INFORMATION
Zambezi is listed on London?s AIM market and the Australian Securities Exchange (ASX & AIM Ticker: ZRL) and currently has two main projects, Cheowa and Kangaluwi. Zambezi is one of Africa?s most active exploration companies with a large, in-house, exploration execution capacity consisting of over 25 geologists and at least eight contracted drill rigs. The company is focused on discovering and developing large Copper-Gold projects in southern Zambia. The company has entered into two Copper Joint Ventures with Glencore International AG (?Glencore?) at Cheowa and the Chongwe Copper Belt. At Cheowa, Glencore is earning a 51% interest by spending US$10 million and is expected to earn their 51% by 2Q 2008. At Kangaluwi, which is 100% owned, Zambezi is conducting extensive exploration drilling, as the company believes that the Kangaluwi project has the potential to be a world class open pit copper deposit. Zambezi plans a major resource drill out campaign in 2008 and 2009. The company also has entered into two Uranium Joint Ventures on approximately 50% of its tenement area, one with Rio Tinto and the other with Lithic Metals and Energy. The Rio Tinto Uranium joint venture lies just to the north of the Mulofwe Dome target.
The information in this report that relates to Exploration Results is based on information compiled by Exploration Director Geoffrey Johnson BSc (Hons), PhD, Grad Dip Env Sc. Dr Johnson is a full-time employee of Zambezi Resources, and a Fellow of the Australian Institute of Geoscientists. Dr Johnson is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. The information in this report that relates to the interpretation of geophysical survey data is based on information compiled by Mr Bill Peters BSc (Hons), who is a Director and Senior Consulting Geophysicist of Southern Geoscience Consultants. Mr Peters is a Member of the Australian Institute of Geoscientists, and a Fellow of the Australasian Institute of Mining and Metallurgy, and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Peters consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
READ CORPORATE
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T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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