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IODM LIMITED — Capital/Financing Update 2009
Sep 13, 2009
65131_rns_2009-09-13_cd2ba04e-8829-4668-b4df-a228fa397338.pdf
Capital/Financing Update
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Suite 202, 122 Walker St, North Sydney NSW 2060 Australia
Ph: 02 9955‐7130 Fax: 02 8920‐3576
Email: [email protected]
14 September 2009
ASX / Media Announcement
Iron‐rich alteration in 1st Blue Bush drill hole
Drill hole BBD001 summary
Paradigm Metals is pleased to announce that it has completed its first drill hole at the Blue Bush project 140km north of Cloncurry. BBD001 was stopped at 337m depth after intersecting pervasive chlorite ‐ carbonate breccia alteration in Proterozoic metasediments and a semi‐massive magnetite lens from 210 to 240m. This iron‐rich alteration is believed to be similar to alteration observed around large copper‐gold and silver‐lead deposits of the Cloncurry belt.
While there is no significant base metal sulphide mineralisation in the drill samples so far, the rocks in BBD001 are strongly weathered and therefore any sulphides present were likely to have been leached out. The magnetite zone and other selective sections of the drill core will be cut and sent for assay.
BBD001 was targeted to intersect a ground EM anomaly immediately northeast of a bullseye magnetic anomaly (see Figure). BBD001 was drilled with a dip of 67 degrees to the northeast and intersected 120m of soft sedimentary cover at the top of the hole. The magnetite lens intersected in BBD001 occurs on the edge of the magnetic ‘bullseye’ so does not account for it. The large magnetic bullseye anomaly will be tested by BBD002, now in progress (see Figure).
Background
The Blue Bush project is an iron oxide ‐ base metal target lying beneath 100m of soft sedimentary cover. The magnetic bullseye anomaly was partially tested at its north‐ western end by hole DDH83KM2 drilled in 1983, with minor copper sulphide mineralisation intersected with Fe sulphide.
The current two‐hole diamond drill programme to test the centre of the magnetic bullseye is being funded by Northwest Discovery Ltd (NWD) who is earning a 25% interest in the Blue Bush project EPM 15324. NWD has the right to earn up to 50% of the project by funding all drilling costs to $725,000. At that stage a 50:50 PDM: NWD joint venture will be entered into. Paradigm will continue to be manager whilst it holds at least a 50% ownership in the project. In addition, Paradigm will receive a drilling grant of $50,000 from the Queensland Department of Mines and Energy under Round 3 of the Collaborative Drilling Initiative.
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Please send enquiries to: Dr Graham Carman, Managing Director, MAUSIMM: Ph 02 99557130; email: [email protected]
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Graham Carman who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Carman is a full-time employee of the Company, and has sufficient 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”. Dr Carman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
PDM is a gold and gold‐copper explorer and developer with its key projects located in the Lachlan Fold Belt of New South Wales and the Cloncurry region of Queensland.
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