Kagara Ltd (ASX: KZL)
ASX RELEASE 5 DECEMBER 08
Lounge Lizard ? Clarification of Niton Methodology
Kagara announced on 3 December 2008 an intersection of 62.00 metres averaging 3.2% nickel in hole LFPD18W3W3W1, including three higher grade zones of 10.00 metres at 7.5% nickel, 12.30 metres at 4.2% nickel and 4.48 metres at 9.2% nickel. A hand held Niton XRF estimate of nickel grade was based on spot sampling of the core on approximately 20 centimetre spacing along the orientation line of the Diamond drill core.
Kagara has routinely used hand held Niton XRF units to analyse for base metal mineralisation and found the results to be a reliable but conservative estimate of grade. It is however not a substitute for conventional analytical assays and hole LFPD18W3W3W1 is being prepared for assay and results are expected within four weeks. Previous Niton XRF surveys by Kagara have shown the Niton method to underestimate the nickel grade compared to analytical results (see release 25 September 2008 ?Final Assays for LFPD18W2W1 increase grade by 25% to 6.6% nickel?).
The intersection reported from hole LFPD18W2W1 of 129.35 metres at 1.3% nickel including 12.55 metres at 5.7% nickel was not a Niton assay but a conventional analytical assay.
The resource referred to at Lounge Lizard containing 61,600 tonnes of nickel is an indicated resource of 5.7 million tonnes at 1.08% nickel and includes an indicated high grade resource of 263,000 tonnes at 6.42% nickel. This resource was the subject of a special release on the 8 July 2008.
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 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.
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