ANNOUNCEMENT TO THE AUSTRALIAN SECURITIES EXCHANGE
Significant Gold Drill Intercepts from Bululu Prospect, Nyanzaga Project, Tanzania
OreCorp Limited (OreCorp or the Company) is pleased to announce the results from the reconnaissance aircore and reverse circulation drilling program completed at Bululu Prospect within the Nyanzaga Project (Nyanzaga or Project) in northwest Tanzania. Bululu is a regional prospect located six kilometres from the Nyanzaga Deposit which hosts a JORC 2012 compliant Mineral Resource Estimate (MRE) of 3.3Mozs of gold at 3.5g/t gold (refer ASX release 10 August 2016). Significant gold mineralisation has been intersected at shallow depths over broad widths. The drilling was designed to test the down-dip and along strike extensions of mineralisation identified in historical Diamond drilling.
Highlights
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Gold mineralisation identified from surface and at shallow depths
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Drill intercepts up to 16m down hole width, with a peak gold value of 5.35g/t gold
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Mineralisation confirmed over a 250m strike length within a shallowly dipping shear zone, and open to the south-west on section
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Better drill intercepts include:
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BULRC001 - 16m @ 2.84g/t gold from 48m, including 8m @ 4.01 g/t gold from 56m
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BULAC026 - 8m @ 1.51g/t gold from 24m
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BULAC061 - 4m @ 0.75 g/t gold from 16m and 9m @ 0.88 g/t gold from 28m to the end of hole
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BULAC024 - 4m @ 1.10 g/t gold from surface
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BULAC023 - 8m @ 0.79g/t gold from 4m
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Extends mineralisation 80m down-dip of historical Diamond drilling intercepts in BULDD006 and is still open
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Supports the Company strategy of targeting shallow high grade mineralisation proximal to Nyanzaga
These exciting new results are a very encouraging start to testing a suite of exploration targets that have been enhanced and refined by OreCorp since the commencement of the joint venture (JV) with Acacia Mining Plc (Acacia). OreCorp has always recognised the wider potential of the Nyanzaga Project. The results confirm there is potential at the Bululu Prospect, and will be followed up with a further program in 2017. In addition, the Company is currently awaiting the results of a regional soil sampling program, which will be integrated with the aeromagnetics to delineate further targets for drill testing within the Project area.
For further information please contact:
Matthew Yates
CEO & Managing Director Telephone: + 61 417 953 315
ASX RELEASE:
16 December 2016
ASX CODE:
Shares: ORR
BOARD:
Craig Williams
Non-Executive Chairman
Matthew Yates
CEO & Managing Director
Alastair Morrison
Non-Executive Director
Michael Klessens
Non-Executive Director
Robert Rigo
Non-Executive Director
Luke Watson
CFO & Company Secretary
ISSUED CAPITAL:
Shares: 173.4 million Unlisted Options: 9.8 million
ABOUT ORECORP:
OreCorp Limited is a Western Australian based company focused on the
development of the Nyanzaga Gold Project in Tanzania & the Akjoujt South Nickel - Copper Project in Mauritania.
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Introduction
The Project is the subject of a JV with Acacia and under terms of the JV, OreCorp may earn up to a 51% interest. OreCorp is the operator of the Nyanzaga Project and is currently completing a Pre-Feasibility Study on the Nyanzaga Deposit, located six kilometres to the north of Bululu.
Nyanzaga is situated in the Archean Sukumaland Greenstone Belt, part of the Lake Victoria Goldfields (LVG) of the Tanzanian Craton. The greenstone belts of the LVG host a suite of large gold mines (Figure 1). The Geita Gold Mine lies approximately 60km to the west of the Project, along the strike of the greenstone belt and the Bulyanhulu Gold Mine is located 36km to the southwest. The Bululu Prospect lies within granted licence PL9662/2014 covering 13.15km2 (Figure 2).
Figure 1: Lake Victoria Goldfields, Tanzania - Existing Resources
Figure 2: Bululu Prospect Location Plan over Greyscale Magnetics
Previous exploration at Bululu by Acacia had identified a gold-in-soil anomaly with rock chip assays up to 13.1g/t gold. Acacia tested Bululu with six Diamond drill holes in 2014. The drilling confirmed sulphide mineralisation hosted in a sheared and folded sequence of magnetic mudstone-siltstone-sandstones with two contrasting vein styles: an early ptygmatic quartz vein and a late cross-cutting quartz-carbonate-sulphide vein set. The previous drilling recorded best intersections of 5.7m @ 2.19g/t gold from 21.3m (BULDD001) and 3m @ 9.08g/t gold from 27m (BULDD006).
OreCorp's 2016 program comprised a detailed review of the regional magnetic data, historical soil geochemistry and drilling which led to an updated geological interpretation indicating a series of northwest-southeast trending shears. This was followed up by a soil sampling and mapping program, and subsequently an aircore and reverse circulation drilling program.
Drill Program
A total of sixty-one angled aircore holes and one reverse circulation hole were drilled on four northeast-southwest orientated sections covering 600m of strike and up to 120m down-dip (total program 3,026 metres). Two holes, BULAC061 and BULRC001 were drilled on the section of the historical Diamond holes BULDD004 and BULDD006. Holes BULAC001-060 were drilled on three section lines to test both across and along the corridor (Figure 3). Refer to Appendix A for further information.
Figure 3: Bululu Prospect - Soil Geochemistry and Drilling Completed (Current Program Holes in blue)
Significant gold mineralisation (>0.5g/t gold cut-off) was intersected at shallow depths over broad widths in seven of the sixty-two holes drilled. A total of twelve holes intersected anomalous gold mineralisation (>0.1g/t gold cut- off). Due to logistical constraints, the southern drill line could not be extended any further northeast to intersect the predicted trend of the mineralised zone. Following the encouragement from these results, it is intended to examine various options to extend this drill line to the north east to intersect the predicted trend of the mineralisation. The significant intercepts are presented in Appendix B.
Testing of Down-Dip Extensions to Previously Identified Mineralisation
BULAC061 and BULRC001 were drilled in the southern area of the gold-in-soil anomalism on cross-section 9,667,025mN (Figure 3) and intersected mineralisation down-dip of Acacia Diamond drill holes BULDD006 and BULDD004 (Figure 4). BULAC061 intercepted two zones of mineralisation; 4m @ 0.75g/t gold from 16m and 9m at 0.88g/t gold from 28m to the end of hole and ended in mineralisation (with the hole lost due to ground conditions). BULRC001 intercepted a wide intersection of 16m at 2.84g/t gold from 48m, which includes 8m @ 4.01g/t gold from 56m.
The mineralisation is hosted in a magnetic sandstone-siltstone-mudstone sedimentary sequence with carbonate- pyrite alteration. Pyrite in fresh rock was encountered in BULRC001 at 53m down hole. Gold mineralisation is interpreted on section to be dipping shallowly to the southwest, and remains open down dip. To date gold mineralisation has been confirmed in all four holes on section 9,667,025mN, and over 120m down-dip (Figure 4).