Kagara Limited (ASX: KZL)
EXPLORATION UPDATE
LOUNGE LIZARD
Kagara is
pleased to inform the market that final analytical results have now been
received for underground diamond drill hole FUG471
drilled by Western Areas NL and reported on the 24 June 2009.
The
intersection, located four metres inside Kagara’s tenement boundary
returned 12.26 metres
at 8.7% nickel. A
further hole, FUG466, drilled 100 metres vertically
above FUG471, intersected nickel mineralisation five metres within Kagara’s
tenement and returned an intersection of 12.0
metres at 4.6% nickel. Hole FUG466 sits outside of the high grade
indicated resource of 1.15 million tonnes at 4.6%
nickel already outlined at Lounge Lizard.
CHILLAGOE Annie gold
anomaly
The
recent geological compilation work completed as part of the preparations for
the Mungana Goldmines Ltd IPO has outlined a
significant new coincident gold and basemetal
anomaly located approximately one kilometre
to the north of the operating Mungana basemetal mine. This anomaly is
situated in a similar geological setting to Mungana
and has a similar gold geochemical response (see attached plan).
The
anomaly is approximately 300 metres across and has
gold values of up to 0.47 grams per tonne
gold in soils and bedrock sampling, as well as anomalous arsenic, copper, lead
and zinc. As part of the regional exploration program conducted in the early
1990’s one reverse circulation hole, which was drilled on the eastern
edge of the anomaly, intersected brecciated
siltstones and sandstones similar to that seen at Mungana
and returned 28 metres from surface grading 0.09
grams per tonne gold, 0.3%
copper and 18 grams per tonne
silver including 4 metres at 0.23 grams per tonne gold from 14 metres and 2 metres at 1.2%
copper from 22 metres. This hole is highly anomalous
in that, although it was drilled at the edge of the Annie anomaly, it displays
a similar geochemical and geological signature to the gold and basemetal mineralisation
known at Mungana.
A 1,500 metre reverse circulation
drilling program is planned to follow on from the metallurgical drilling outlined
below.
MUNGANA - Gold Development
A twelve hole metallurgical drilling program will commence next week
to obtain samples for further metallurgical test work from the open pit gold
copper probable reserve of 3.2 million tonnes grading
1.58 grams per tonne gold,
0.48% copper and 54 grams per tonne
silver at Mungana. This program will help refine the
metallurgical flow sheet for the proposed gold plant at Mungana
and will be undertaken prior to the testing of the Annie anomaly. As announced
previously the gold assets in the Chillagoe
region, including the gold reserves at Mungana, will
be included in the new listing of Mungana Goldmines
Ltd. This listing is expected to be concluded, subject to ASX approval, by
September 2009.
JOE TREACY
Executive Director
This report, so far as it pertains to ore and mineralisation, is based on information compiled by and as
reported upon by Mr Joe Treacy,
an employee of Kagara Ltd, and who is a member of the
Australian Institute of Geoscientists or the Australasian Institute of Mining
and Metallurgy and has over five years 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?. Mr Treacy
consents to the inclusion in the report of the matters based on his information
in the form and context in which it appears.