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BRIGHTSTAR RESOURCES LIMITED Capital/Financing Update 2006
64581_rns_2006-04-11_3308497d-e85f-4cd9-90cb-6729b15facdc.pdf
Capital/Financing Update
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ASX/MEDIA RELEASE
WEDNESDAY 12 APRIL 2006
SILVER LINING FOR BRIGHTSTAR
ADDITIONAL PROFITABILITY INDICATED FROM SIGNIFICANT SILVER ASSAYS
Profitability of A1 Minerals Limited (ASX: AAM) flagship project. BrightStar, has been potentially boosted by accounting for contained silver within the ore body. Additonally, at the current gold price of A\$800/oz, a further A\$5M could be added to the overall profitability of the BrightStar as it stands today.
Based on \$750/oz gold price, the recent BrightStar Pre-feasibility Study showed potential for a pre tax profit of A\$12M to A\$25M in one year of production, depending on toll treatment options. The silver credits were not taken into account in the Study.
A1 will assay for silver in all significant gold intercepts from the BrightStar, as well as routinely assay for silver in future drilling. These results and a review of the significance of the silver credits will be incorporated into the current Feasibility Study.
The following table shows gold grades and corresponding silver grades in historic drilling. In most cases silver grades are at least 50% of gold grade for the same interval, with some well exceeding gold grade.
TABLE 1: PRELIMINARY ANALYSIS OF SIGNIFICANT SILVER RESULTS FROM HISTORIC DRILLING
| Drillhole | Depth | Depth | Interval | Grade Gold | Grade Silver |
|---|---|---|---|---|---|
| Number | (from) | (10) | (metres) | (g/t) | (g/t) |
| MGM002 | 165.98 | 166.21 | 0.23 | 38.03 | 17.00 |
| MGM003 | 52.00 | 52.15 | 0.15 | 100.3 | 45.00 |
| 54.30 | 55.11 | 0.81 | 67.03 | 23.00 | |
| MGM004 | 115.90 | 116.90 | 1.00 | 67.13 | 145.00 |
| MGM018 | 20.00 | 21.00 | 1.00 | 0.30 | 24.50 |
| 13.00 | 14.00 | 1.00 1 | 0.78 | 19.00 |
John Williams B.Sc. MAusIMM Managing Director
The information in this report that relates to exploration results is based on information compiled by Mr John Williams, who is a member of the Australasian Institute of Mining and Metallurgy, Mr Williams is a full time employee of A1 Minerals Limited and has sufficient experience 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 "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Williams consents to the inclusion in the report of the matters based on his information in the form of context in which it appears.
Suite 34 : 25 Walters Drive : Osborne Park : Western Australia : 6017 Telephone (618) 9244 1400 : Facsimile (618) 9244 1600 : ASX Code AAM Email [email protected] website www.a1minerals.com.au ABN 44 100 727 491 : ASX Code AAM