Focus Minerals
Limited (ASX: FML)
ASX
RELEASE
26 March 2008
SUBSTANTIAL
RESOURCE UPGRADE FOR COUNTESS GOLD DEPOSIT, COOLGARDIE
KEY
POINTS
- 70% Increase in overall Countess
Resource to 452,900t @ 4.0g/t for 57,700oz.
- Countess Indicated Resource of
256,200t @ 4.4g/t for 36,000oz.
- Indicated Resource for combined
Tindals Mining Centre increases to 348,900oz.
- Countess deposit remains open down
plunge, to the south and along strike
- Maiden gold production due to
commence at Perseverance in April 2008.
Australian-based
gold and nickel company Focus Minerals Ltd (ASX: FML) is pleased to announce a substantial
increase in Inferred and Indicated Resources at the Company�s Countess Gold Project; located within the
Tindals Mining Centre at Focus soon to be 100%-owned Coolgardie Gold Project,
Western Australia.
The Resource upgrade
at Countess is an increase from
the project�s initial
JORC-compliant Inferred Resource of 246,000t @ 4.3g/t, for approximately 33,700
contained ounces to a revised Indicated
Resource of 256,200t @
4.4g/t, for an estimated 36,000
ounces and an Inferred
Resource of 196,700t @
3.4g/t, for approximately 21,700
ounces. This equates to a 70% increase in the total Countess Resource
to 452,900t @ 4.0g/t for
approximately 57,700 contained
ounces.
The revised Countess
Resource will be the subject of a new Feasibility Study, which will ascertain the
viability of the new resource and the synergies of potentially mining Countess
in conjunction with Perseverance. This represents another significant step
towards achieving the Company�s objective of becoming a 100,000 ounce per annum producer at Coolgardie within
the next three years.
The positive results
at Countess further reinforce the potential of the nearby Perseverance Project,
where Focus recently announced a 28% upgrade in Indicated Resources to 118,500
ounces. The Company is preparing to commence initial gold production at
Perseverance in April after completing a positive Feasibility Study in December
2007.
The updated Countess
Resource model (see Table 1) is based on 7,940m of drilling in 35 Diamond Core
drill holes. The Resource comprises three distinct zones � the West Lode, East
Lode and Tindals Deep Lode.
The Countess
Resource upgrade has increased the current combined Tindals Mining Centre resource inventory -
which now stands at more than 0.55 million ounces (Table 2) - to an
Indicated Resource of 3.8 million tonnes at 2.9g/t Au for 348,900
ounces and an Inferred
Resource of 2.2 million tonnes at
2.9g/t Au for 208,100
ounces. Historically the deposits
comprising this centre have produced a total of 500,000 ounces from both open
pit and underground operations.
The latest round of
exploration drilling - carried out in late 2007 - combined with ongoing
validation of historical data, has had a positive impact on the new geological
model. The understanding of the West Lode has been significantly improved, with
the new information enhancing the geological model.
The deposit remains
open down plunge, to the south and along strike, and the Company is currently
making plans to conduct further step-out drilling to further increase the
resource.
Commenting on the
new resource figures, Focus Minerals� Managing Director, Mr Peter
Williams, said: �This is an excellent upgrade to our resource
base and comes at an opportune time for Focus as we gear up for our maiden gold
production in April this year, initially with ore sourced from the Perseverance
deposit."
�Given the zones are
open along strike, and down plunge to the south, there is still plenty of
potential for further upgrades and we will continue with our program of
exploration drilling at both Countess itself and the Tindals Mining Centre as a
whole,� he added.
ENDS
Released
by: |
On behalf
of: |
Nicholas
Read/Jason
Cunningham |
Don Taig,
Chairman
Peter Williams, Managing
Director |
Read
Corporate |
Focus Minerals
Ltd |
Telephone: (+61-8)
9388-1474 |
Telephone: (+61-8)
9215-7888 |
www.readcorporate.com.au |
Web: www.focusminerals.com.au |
COMPETENT PERSON�S
STATEMENT
The information in this report
relating to Resources and Reserves are based on work supervised by Mr
Chuck McCormick who is a Fellow of
the Australasian Institute of Mining and Metallurgy (AusIMM). Mr McCormick has
the relevant experience as a �Competent Person� as defined in the 2004 edition
of the Australasian Code for Reporting of Mineral Resources and Ore Reserves in relation
to the mineralisation reported on. Mr McCormick is Exploration Manager of Focus
Minerals Ltd and consents to the inclusion of the material in the form and
content in which it appears.
BACKGROUND INFORMATION � FOCUS
MINERALS LTD
Focus Minerals Ltd
(ASX: FML) is an Australian-based
exploration and development group whose focus is to become a significant gold
and nickel producer in the Coolgardie-Kalgoorlie-Widgiemooltha region of
Western
Australia.
Focus Minerals is
the largest landholder in the Coolgardie Gold Belt located in Western Australia,
560km east of Perth and 35km west of the �Super Pit� in Kalgoorlie-Boulder. More
than 2.6 million ounces of gold has been produced from the Coolgardie gold belt
alone since 1892. Focus holds the mineral rights to more than 210sq km of
tenements including Measured, Indicated and Inferred Resources exceeding 1.65
million ounces of gold as well as the 1.2mtpa Three Mile Hill processing
plant.
Focus Minerals is
also fast tracking development of its wholly-owned Nepean Nickel Project
(current estimated resource totalling 591,300t @ 2.2% Ni) located 25km south of
Coolgardie. Focus has a view of recommencing mining operations from the historic
production centre in 2008.
Table
1 - Countess
Resource
Zone |
Category |
Tonnes |
Au
g/t |
Ounces |
West Lode |
Indicated |
210,800 |
4.5 |
30,600 |
|
Inferred |
24,300 |
3.8 |
2,900 |
East Lode |
Indicated |
45,400 |
3.7 |
5,400 |
|
Inferred |
74,700 |
2.8 |
6,600 |
Tindals Deep Lode |
Inferred |
97,800 |
3.9 |
12,200 |
Total
Indicated |
|
256,200 |
4.4 |
36,000 |
Total
Inferred |
|
196,700 |
3.4 |
21,700 |
Resource reported at
2g/t lower cut-off grade
Upper cut of 18g/t used
for West Lode, Upper cut of 12g/t used for East Lode, and a Upper cut of 10g/t
used for Tindals Deep Lode.
Table 2 - Tindals Mining
Centre Resources
Indicated |
|
|
|
Prospect |
Tonnes |
Grade
(g/t) |
Ounces |
Dreadnought |
3,024,000 |
2.0 |
194,400 |
Perseverance Quartz-Sulphide
East |
265,000 |
9.9 |
84,600 |
Perseverance Quartz-Sulphide
West |
103,600 |
5.9 |
19,500 |
Perseverance Footwall
West |
96,000 |
4.2 |
13,000 |
Perseverance Upper
Diorite |
26,200 |
1.6 |
1,400 |
Countess -
Underground |
256,200 |
4.4 |
36,000 |
Total
Indicated |
3,771,000 |
2.9 |
348,900 |
|
|
|
|
Inferred |
|
|
|
Dreadnought |
434,500 |
1.8 |
24,600 |
Perseverance Quartz-Sulphide
East |
92,700 |
3.0 |
8,900 |
Perseverance Quartz-Sulphide
West |
20,700 |
3.6 |
2,400 |
Perseverance Footwall
West |
51,700 |
3.7 |
6,200 |
Perseverance Upper
Diorite |
13,300 |
2.6 |
1,100 |
Perseverance Lower
Diorite |
17,400 |
4.3 |
2,400 |
Cyanide -
Underground |
367,000 |
5.5 |
65,400 |
Empress -
Underground |
129,500 |
4.7 |
19,500 |
Countess
Underground |
196,700 |
3.4 |
21,700 |
Big Blow Surface |
180,000 |
1.6 |
9,300 |
Big Blow UG |
88,000 |
5.0 |
14,100 |
Empress/Alicia |
550,000 |
1.5 |
27,300 |
Happy Jack |
107,000 |
1.5 |
5,200 |
Total
Inferred |
2,248,500 |
2.9 |
208,100 |
READ CORPORATE
Public
Relations Corporate Communications
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9388-1474
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9388-1472
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