19 August 2008
Excellent New
Copper and Cobalt Intercepts and Metallurgical Testwork Results at Mount Oxide
Perilya Limited (ASX:
PEM) is pleased to announce continued exploration success from drilling at the
Mount Oxide copper and cobalt project in the Mt Isa region in Queensland.
Following the company?s
ASX release yesterday, a further follow-up hole at depth has also intersected
additional high grade zones and continues to confirm the geological model for
the deeper mineralisation. The results from this latest drill hole
MOXD105 include:
?
8m at 0.9 % copper and
0.12 % cobalt from 256m,
?
13m at 3.2
% copper from 280m,
?
13m at 3.8
% copper from 297m,
?
16m at 5.4
% copper and 49 g/t of silver from 329m.
MOXD105 was drilled approximately
90 metres south of drill hole MOXD089 and 50 metres south of MOXD104,
which previously announced included, 23m at
8.9% copper from 395m and 12m at 15.3% copper respectively.
Initial metallurgical testwork shows excellent preliminary flotation
recoveries for a range of economic grade samples tested of :
?
Copper
90 %
?
Cobalt
50-60%
?
Silver
75%
Perilya?s Executive Chairman, Patrick O?Connor, said these additional
results of 16m at 5.4% copper from 329m, were further confirmation of the
continuity and the higher grades of copper and silver being reported at depth.
In addition, significant cobalt intercepts have been reported in this
years drilling which do not correlate directly with the copper zones.
Using a 0.1% cobalt cut-off intercepts have included up to 48m at 0.36% cobalt
from 149m and 20m at 0.34% cobalt from 259m, which are considered to add
significant value to the project.
?The recent results especially with the excellent flotation recoveries
reported, provide Perilya with a growing level of confidence on the potential
of the Mount Oxide
copper and cobalt project and are important for the commercialisation of a
stand-alone operation,? he added.
A program of diamond drilling is continuing to target extensional mineralisation
to the north and at depth of the current Mount
Oxide resource. In
conjunction with this a commercialisation process is underway with a number of
interested parties who have expressed an interest in the further development of
the project.
For further information:
Investors:
Patrick O?Connor Media: Darryl Edwards
Executive
Chairman
Company Secretary
Phone:
+61 8 6210 2000
Mount Oxide
Copper and Cobalt Project - Drill Program and Results
Drill hole MOXD105 was
targeted to investigate continuity around recently released high grade
intercepts from MOXD089 (which included 23m at 8.9% copper from 395m) and to
understand the geology and plunge of mineralisation. The hole was drilled
immediately south of the MOXD089 intercepts within approximately 90m and has
intersected a long interval with a number of high grade copper zones (Figures 1
and 2).
The mineralised sediments
with coarse chalcocite and bornite mineralisation correlate well with the other
intercepts in the area Higher grade silver is also noted in these deeper
zone. The intercepts are interpreted to be oblique to the mineralisation and
interpreted to be at least 60% of true thickness.
The significant intercepts
from MOXD105 include (Table 1):
?
8m at 0.9 % copper and 0.12 %
cobalt from 256m,
?
13m at 3.2 % copper from 280m,
?
13m at 3.8 % copper from 297m,
?
16m at 5.4 % copper and 49 g/t of silver from
329m.
These results from MOXD
105 follow the recent release of results from MOXD104 (on 18 August 2008),
which included 12m at 15.3 % copper and are further confirmation of the
continuity and the higher grades of silver being reported at depth.
Details on the results of
MODX89 were announced to the ASX on 5
June 2008 and details of MODX104 were announced to the ASX on 18
August 2008.
A number of significant
zones of cobalt mineralisation are noted which do not directly correlate with
the high grade copper zones. The distribution of the cobalt is spatially
associated but distinct to the higher grade copper. A number of long
intervals of very significant cobalt have been reported. Intersections
based on a 0.1 % cobalt cut-off have included (Table 2):
?
MOXD
87
17m at 0.37 % cobalt and 0.1 % cooper from 152m,
?
MOXD
88
36m at 0.23 % cobalt and 1.0 % cooper from 187m,
?
MOXD
89
20m at 0.34 % cobalt and 6.4 % cooper from 259m,
?
MOXD
91
48m at 0.36 % cobalt and 1.0 % cooper from 149m,
?
MOXD
93
22m at 0.26 % cobalt and 1.0 % cooper from 79m,
Detailed assessment of
these cobalt rich zones is underway and will be incorporated into a new
resource calculation when the current drilling program has been
completed. These values are considered especially important for the
commercialisation of a stand-alone operation.
Mount Oxide
Copper and Cobalt Project ? Preliminary Metallurgical Testwork
Initial metallurgical testwork conducted by AMMTEC indicates favourable
recoveries of
?
Copper
90 %
?
Cobalt
50-60%
?
Silver
75%
for a range of economic grade samples tested:
Figure 1. Mt Oxide Resource Drill Section
70700Mn, looking north with resource model and MOXD105 drill
holes.
Figure 2. Location Plan of drill holes at Mount
Oxide deposit with new holes
reported.
Table 1. Mount
Oxide Drill Results, 0.5 %
Copper (?Cu?) cut off, Maximum Internal Dilution 2m, >3 m%
Table 2. Mount Oxide Drill Results, 0.1 % Cobalt (?Co?) cut off,
Maximum Internal Dilution 2m,
Background to the Mount
Oxide Project
(100%
owned)
The
Mount Oxide
project is located in the Mount
Isa region Western
Succession that includes several major sediment hosted breccia copper deposits.
The deposit was intermittently mined between 1920 and 1971 by way of a small
open pit and underground operation. The project lies 25 kilometres north of the
existing Mount Gordon mine operated by Aditya Birla Minerals Limited.
The
deposit is a chalcocite dominated system associated with strong silica-hematite
alteration and copper mineralisation developed on the margins of the hematite
core. The mineralisation is hosted in a sedimentary package associated with
a strong structural control along the northeast trending Mount
Oxide fault and associated
cross cutting faults.
Competent Person Statement
The
information in this report that relates to Exploration Results and Mineral
Resources is based on information compiled by Mr. Bruce G.D. Hooper who is a
full-time employee of the company and is a member of the Australian Institute
of Geoscientists. Bruce Hooper has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the ?Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves?. Bruce Hooper consents to the
inclusion in the report of the matters based on his information in the form and
context in which it appears.
Background to Perilya
Perilya
Limited is an ASX 200 Australian
base metals mining and exploration company. Perilya is investing in the
development of its three major projects located in the Broken Hill, Mt Isa and
Flinders regions as well as exploration in the surrounding tenements.
For
more details, visit www.perilya.com.au
______________________________________________________________________________________________________________________________________________________
ASX and Media Release
18
August 2008
Further
High-Grade Copper and Silver intercepts at Mount Oxide
Perilya Limited (ASX:
PEM) is pleased to announce continued exploration success from drilling at the
Mount Oxide copper and cobalt project in the Mt Isa region in Queensland.
Perilya?s latest round of
drilling has confirmed further highly encouraging high grade copper and silver
intercepts that extend at depth and below the current resource.
The high grade intercepts
returned from deeper drilling in drill hole MOXD104 (Figure 1) included:
?
17m at 4.2 % copper from 248m,
?
32m at 4.5 % copper (uncut) from 287m,
?
12m at 15.3 % copper (uncut) and 161 g/t of
silver from 345m.
MOXD104 was drilled approximately
30 metres south of drill hole MOXD089, which previously reported (5th June 2008) drill intercepts including 31m at 6.2%
copper from 346m and 23m at 8.9% copper from 395m.
Perilya?s Executive Chairman, Patrick O?Connor, said our new drilling
results, which included 12m at 15.3% copper from 345m, were primarily below the
current resource. They also further demonstrate the continuity of
mineralisation along replaced sedimentary horizons and the excellent potential
at depth.
?A further hole MOXD105 has also intercepted good visual mineralisation
90m south of the initial intercept and results are pending.?
?All these results bode well for the commercialisation and development
process, which has commenced, with a number of overseas and Australian parties
formally expressing interest in participating in the further development of the
Mount Oxide copper and cobalt project either in partnership with Perilya by way
of joint venture, or through outright purchase of the project.?
?The continuation of the high grade zones at depth and outside the
current resource adds to the project and further demonstrates its potential,?
he added..
Mount Oxide
Copper and Cobalt Project - Drill Program and Results
In April, a program of
diamond drilling commenced with two rigs targeting extensional mineralisation
to the north and at depth of the current Mount
Oxide resource.
Drill hole MOXD104 was
targeted to investigate potential at depth around the recently released high
grade intercepts from MOXD089 and to understand the geology and plunge of
mineralisation. Hole MOXD104 was drilled immediately south of the MOXD089
intercepts within approximately 30m and at a slightly higher elevation and has
intersected replaced sedimentary horizons with strong hematite alteration
associated with a structurally complex zone.
Mineralisation is hosted
in brecciated sediments and consists of coarse veins of bornite and
chalcocite. The high grade zone is interpreted to be a structural
intersection at depth off cross cutting structures and a parallel structure to
the main mineralised fault. Lower grade zones between contain strong
haematite alteration. The high silver grades are also of significant
interest in this deeper zone. The intercepts are interpreted to be oblique to
the mineralisation and interpreted to be at least 60% of true thickness.
The significant intercepts
from MOXD104 include:
?
17m at 4.2 % copper from 248m,
?
32m at 4.5 % copper (uncut) from 287m,
o which includes 1m @ 21.3 % copper from 306m, and 2m at 24.3
% copper from 312m,
?
12m at 15.3 % copper (uncut) and 161 g/t of
silver from 345m
o which includes 5m at 33.0 % copper from 345m
Previously reported (5th June 2008) significant intercepts
from drill hole MDOX089, include:
?
22m at 6.3 % copper and
0.3 % cobalt from 258m
?
19m at 3.7 % copper
from 315m
?
31m at 6.2 % copper
from 346m
?
23m at 8.9 % copper
from 395m
Further follow up drilling
at depth is also providing significant encouragement with recent hole MOXD105
intersecting good visual mineralisation approximately 90m south of the MOXD89
intercept in a similar geological setting again demonstrating a plunge direction
and continuity at depth, the results are still pending.
Results are also reported
from holes drilled north and above the MOXD89 intercept that contained only
altered zones demonstrating the geological complexity in the zone.
These mineralised copper
zones at depth are outside of the current resource, which is very encouraging
for the addition of significant high grade resources at depth.
A track mounted rig has
recently arrived on site and is testing some of the steep topographic zones
north of the planned open pit to test at shallow depth below outcropping copper
mineralisation. Good visual mineralisation has been noted during logging
with the results still pending from this drilling.
Figure 1. Mt Oxide Resource Drill Section 70800Mn, looking north
with resource model and MOXD089 and MOXD104 drill holes.
Figure 2. Location Plan of drill holes at Mount
Oxide deposit with new holes
reported.
Table 1. Mount
Oxide Drill Results 0.5 % Cu
cut off, Maximum Internal Dilution 2m, >3 m%. No cut
***
Issued
by
Purple Communications
Level 3,
28 Kings Park Road, WEST
PERTH WA 6005
Ph: 08
9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au
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