Kagara Ltd

Published : July 02nd, 2009

Exploration Update

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Keywords :   Gold Reserves | Nickel |

Kagara Limited (ASX: KZL)

 

            ASX RELEASE                                                                                                  2 July 2009

 

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.

 

Kagara Ltd

DEVELOPMENT STAGE
CODE : KZL.AX
ISIN : AU000000KZL6
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Kagara is a nickel and zinc producing company based in Australia.

Kagara produces nickel, zinc, copper, gold, lead and silver in Australia, develops copper, gold, lead, silver and zinc in Australia, and holds various exploration projects in Australia.

Its main asset in production is MT GARNET in Australia, its main assets in development are MUNGANA and BALCOOMA in Australia and its main exploration properties are RED DOME PROJECT, LOUNGE LIZARD, VICTORIA PROSPECT, GHCS (GRIFFITH HILL COPPER ZONE), ADMIRAL BAY, KING VOL and WEST 45 in Australia.

Kagara is listed in Australia and in Germany. Its market capitalisation is AU$ 95.9 millions as of today (US$ 89.1 millions, € 66.7 millions).

Its stock quote reached its highest recent level on November 03, 2006 at AU$ 7.81, and its lowest recent point on April 20, 2012 at AU$ 0.10.

Kagara has 798 950 016 shares outstanding.

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Corporate Presentations of Kagara Ltd
10/10/2007Quarterly Report - 30 September 2007
Nominations of Kagara Ltd
8/8/2011Appoints Experienced Mining Professional as COO
Project news of Kagara Ltd
8/18/2011Independent Review of Forreatania Project Nickel Potential
5/23/2011(Ghcs (griffith Hill Copper Zone))Maiden 32,000 t Cu Resource for Griffiths Hill
5/12/2011To Mine Baal Gammon Copper Deposit Under Strategic Alliance ...
3/23/2011Extends high-grade copper discovery
3/13/2011(Red Dome Project)Red Dome : agreement with Mungana Goldminies
1/21/2011(West 45)West 45 Drilling Update
1/6/2010(Lounge Lizard)First Ore Production From Lounge Lizard Nickel Project
9/10/2009(Mungana)New Gold/Copper Intersections at Mungana
6/24/2009(Lounge Lizard)Lounge Lizard Mine Development
2/10/2009(Lounge Lizard)Lounge Lizard High Grade Resource increased by 215% to 1.149...
12/3/2008(Lounge Lizard)62m at 3.2% nickel extends Lounge Lizard
9/5/2008(Lounge Lizard)Announces Record 76.5m Nickel Sulphide Intersection at Loung...
9/5/2008(Lounge Lizard)Record 33.46 metres grading 5.30% nickel intersected at Loun...
8/22/2008(Admiral Bay)Unveils World-Class 72 Million Tonne Base Metal Resource for...
7/9/2008(Lounge Lizard)Initial resource of 61,000 tonnes of nickel for Lounge Lizar...
7/8/2008(Lounge Lizard)Initial Resource of 61,600 Tonnes of Nickel for Lounge Lizar...
6/26/2008(Victoria Prospect)Initial Resource of 3.44 million tonnes defined at Victoria
6/26/2008(Lounge Lizard)Further Intersection at Lounge Lizard
6/26/2008(Red Dome Project)Red Dome Drilling Intersects 63.45 Metres @ 3.14 g/t Gold
6/25/2008(Lounge Lizard)Further Nickel Intersections at Lounge Lizard
6/5/2008(Lounge Lizard)41.14 Metres at 2.1% nickel intersected at Lounge Lizard
3/4/2008(Lounge Lizard)46.1 metres of Massive Sulphides Intersected at Lounge Lizar...
2/25/2008(Victoria Prospect)Drilling Update - Victoria Project near Chillagoe
2/19/2008(Lounge Lizard)Lounge Lizard Exploration Update
2/13/2008(Waterloo)Resource Increase at Waterloo
1/21/2008(Victoria Prospect)New High Grade Zinc Intersected at Victoria
1/9/2008(Mt Garnet)Mt Garnet Update
Corporate news of Kagara Ltd
5/9/2012Voluntary Administration of Kagara Limited
3/15/2012Completes Sale of its Nickel Assets
8/22/2011Retirement of Mark Ashley from the Kagara Board
7/13/2011Quarterly Activity Report for the period ending 30 June 2011
4/11/2011Quarterly Activity Report for the period ending 31 March 201...
3/23/2011Managing Director's Letter to Shareholders
3/1/2011the largest shareholder in Copper Strike Ltd
2/24/2011Interim Financial Report 2010
2/21/2011Copper Strike Takeover Offer to Close on 28 February 2011
7/26/2010June 2010 Quarterly Activities Report
7/6/2010Commencement of Exploration at Forrestania
6/4/2010To Mine Vomacka Polymetallic Deposit
5/18/2010Mungana Goldmines IPO - Retail Offer Closing Date Extended
2/24/2010Half Year Report - 31 December 2009
1/29/2010Quarterly Activity Report for the period ending 31 December ...
7/17/2009Debt Reduction and Lounge Lizard Payment
7/9/2009FIRB Approves GFTG Investment
7/8/2009Entitlement Offer Completion and Notification of Shortfall
7/7/2009Rights Issue Update
7/2/2009Exploration Update
6/10/2009Announces Underwritten Equity Raising and Strategic Alliance
3/4/2009Results of Share Purchase Plan and Appendix 3B
2/23/2009Media Advisory - Maturity Date of $50M Westpac Corporate Fac...
2/19/2009Share Purchase Plan Closing Date Extended to 25 February 200...
2/18/2009Listing of Gold Assets
2/18/2009North Queensland Update
2/3/2009Capital Raising - Share Placement
1/29/2009December 2008 Quarterly Activities Report
12/5/2008Lound Lizard - Clarification of Niton Methodology
11/7/2008Chairman's AGM Address
9/22/2008Acquires the Maitland Deposit
9/19/2008New Nickel Intersection Expands Potential at Lounge Lizard
8/20/2008Targets Further Copper Growth Following Robust $65.0M Net An...
7/17/2008Quarterly Activity Report
6/10/2008Purchases Maitland Copper Deposit
5/30/2008Admiral Bay Progress
5/22/2008Mungana Plant Commences Construction
5/13/2008- Victoria - Market Update
4/28/2008Quarterly Activity Report for Period Ending 31 March 2008
4/14/2008Response to Media Reports
3/11/2008Operations Update
2/20/2008ANNOUNCES A$35.9M FIRST HALF PROFIT
2/20/2008Interim FInancial Report 2007
2/14/2008Open BriefingR. December Quarter Discussion & Outlook
1/23/2008Quarterly Activity Report for the period ending 31 December ...
1/15/2008Waterloo Update
12/20/2007Waterloo Update
12/19/2007Lounge Lizard Exploration Update
11/30/2007Waterloo Exploration Update
11/19/2007Admiral Bay Update
11/16/2007Environmental Approval Received for Mungana Development
10/29/2007Opening Briefing
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AUSTRALIA (KZL.AX)FRANKFURT (FWM.F)
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