Kagara Ltd (ASX: KZL)
ASX RELEASE 10 September 2009
NEW GOLD-COPPER INTERSECTIONS AT MUNGANA
Kagara Ltd is pleased to inform the market of the latest underground Diamond drilling results being undertaken as part of the development and mining of the Mungana base metal deposit. These include 222 metres at 0.70 grams per tonne gold, 0.10% copper and 146 metres at 1.10 grams per tonne gold, 0.07% copper. The accompanying level plan at 1,850 RL, approximately 450 metres vertically below surface, highlights the size potential of the Mungana Gold deposit.
In April of this year an inferred resource estimate of 45.9 million tonnes at 0.76 grams per tonne gold, 10 grams per tonne silver and 0.22% copper was completed for Mungana but this estimate did not include holes MUD 95, 102 and 104. Holes MUD 43, 82, 83, 84, 86 and 87 were included in the estimate but either ended in mineralisation or the original assaying was incomplete. In addition a further 22 holes including MUD 92 remain to be assayed and extension assaying is also being undertaken on holes which either finished in mineralisation or on which the original assaying was incomplete.
The remaining 22 holes predominantly cover depth extensions to the deposit and potentially will have a major impact on the resource size. As assays are received the market will be kept informed. The true width of the intersections are approximately 80% of the drilled width. Some of the larger intersections include:
Hole |
Metres |
Au g/t |
Cu % |
MUD102 ** |
222 |
0.70 |
0.10 |
MUD104 ** |
146 |
1.10 |
0.07 |
MUD84 * |
42 |
0.82 |
0.22 |
and * |
58 |
1.06 |
0.28 |
MUD86 * |
93 |
1.40 |
0.09 |
* Assays incomplete
** Assays ended in mineralisation
In order to facilitate the rapid development of Kagara?s substantial gold assets, the Company incorporated Mungana Goldmines Ltd to acquire the rights to gold within Kagara?s north Queensland tenements and subject to compliance with ASX requirements, apply for listing on the ASX.
The recently completed rights issue has resulted in the timing of the float being delayed and Kagara now expects the IPO to come to market in November 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.
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