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PRODIGY GOLD NL Capital/Financing Update 2004
65615_rns_2004-06-27_31daa537-e5f6-4aa0-b315-89da6dfd1332.pdf
Capital/Financing Update
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AUSTRALIA $N1$
28 June 2004
The Announcements Office Australian Stock Exchange Ltd Level 3, 20 Bridge Street SYDNEY NSW 2000
Dear Sir
DRILLING UPDATE - NORSEMAN GOLD PROJECT
Tantalum Australia NL is pleased to announce further assay results from samples from recent Reverse Circulation (RC) drilling that was completed at its fron Duke and Surprise prospects within the Norseman Project in Western Australia.
In this program deeper inclined holes at Iron Duke were planned to intersect the mineralised structure beneath the previously planned pit depth (30metres) and to test the northerly extensions of the known mineralisation. This work confirmed earlier interpretations; the gold mineralisation occurs in a 50metre wide "envelope" of moderately (west) dipping shears at grades up to 2.5g/t. However, within this zone there occur sub-vertical, discontinuous lenses of high grade (5-80g/t) material. Results of the recent drilling have extended the strike of the mineralised zone to approximately 340 metres. Mineralisation is open to the north and south along strike.
Separate from the Iron Duke lode mineralisation described above, and overlying a parallel shear 80 metres to the east, is a zone of mineralised laterite up to 100 metres x 60 metres in area and extending from the surface to 7 metres depth.
The drilling at Surprise prospect (800 metres north of Iron Duke and on the same structure) was, primarily, to test another surficial deposit. In this case the "laterite" is ferruginous eluvium with calcareous cement and forms a cap up to 4 metres thick overlying the bedrock mineralisation.
Gold assays of 1 metre samples from the program have been returned and are listed below.
The better intercepts from the latest round of results include:
| 5 metres | Ф. | 3.32 g/t Au |
|---|---|---|
| 7 metres | Ф. | 3.51 g/t Au |
| 6 metres | Ф. | 4.03 g/t Au |
| 2 metres | Ö. | 12.39 g/t Au |
| 7 metres | @ | 4.42 g/t Au |
Follow up Drilling
An RC drilling program as follow up to the above drilling commenced during June and was suspended on June 12 due to a rig breakdown with 21 holes being completed for a total of 1400 metres. Composite (5 metre) samples have been dispatched for analysis. The RC program will recommence during the next week with the aim of extending mineralisation north and south and below 30 metres depth where additional information is required to update the resource model. Drilling will continue at least until the end of July as part of the ongoing feasibility study until the strike extent of the Iron Duke deposit is closed off and the drilling density between 30 and 80 metres depth is sufficient for resource estimation.
Yours faithfully
Peter Farrah Company Secretary
Significant Intercepts
| Hole ID | MGA North |
MGA East |
Total Depth |
Down hole Interval |
Width | Aц |
|---|---|---|---|---|---|---|
| (m) | (m) | (g/t) | ||||
| Iron Duke | $Az - 090^\circ$ | $Dip \cdot 60^\circ$ | ||||
| NDC 194 | 6429840 | 387530 | 50 | 19-25 | 5 | 3.32 |
| $32 - 34$ | $\mathbf 2$ | 1.73 | ||||
| NDC 195 | 6429855 | 387515 | 50 | $13 - 20$ | 7 | 3.51 |
| NDC 197 | 6429710 | 387470 | 90 | $50 - 51$ | Ĩ | 1,38 |
| 60-66 | 6 | 4.03 | ||||
| NDC 199 | 6429900 | 387515 | 50 | $0 - 1$ | 1 | 1.92 |
| $11 - 13$ | 2 | 3.58 | ||||
| NDC 200 | 6429675 | 387510 | 90 | 37-39 | $\overline{c}$ | 1.52 |
| 49-50 | Ĩ | 5.41 | ||||
| 57-58 | 1 | 2.28 | ||||
| Iron Duke - Laterite (Vertical holes) | ||||||
| NDC 206 | 6430000 | 387670 | 10 | $0 - 4$ | $\overline{4}$ | 1.06 |
| NDC 207 | 6430000 | 387660 | 10 | $0 - 5$ | 5 | 1.40 |
| NDC 208 | 6430000 | 387650 | 10 | $0 - 5$ | 5 | 1.57 |
| NDC $210$ | 6430020 | 387670 | 10 | $0 - 2$ | $\overline{2}$ | 1.12 |
| NDC 211 | 6430020 | 387660 | 10 | $0 - 5$ | $\mathfrak s$ | 1.88 |
| NDC 213 | 6430020 | 387640 | 10 | $0 - 5$ | 5 | 1.05 |
| Hole ID | MGA | MGA | Total | Down hole | Width | Au |
| North | East | Depth | Interval (m) |
(m) | (g/t) | |
| Surprise | Az - 090° | $Dip \cdot 60^\circ$ | (*Vertical holes) | |||
| NDC 163 * | 6430870 | 387561 | 15 | $7 - 14$ | $\overline{7}$ | 2.36 |
| NDC 147 | 6430825 | 387568 | 15 | $8 - 12$ | $\overline{4}$ | 3.83 |
| NDC 173 * | 6430820 | 387552 | 45 | $12 - 14$ | $\overline{2}$ | 12.39 |
| incl. | $12 - 13$ | Ĩ | 22.89 | |||
| NDC 166 * | 6430895 | 387509 | 10 | $9 - 10$ | Ĩ | 3.39 |
| Surprise - Laterite | ||||||
| NDC 160 | 6430910 | 387565 | 5 | $0 - 1$ | Ĩ | 3.27 |
| NDC 142 | 6430890 | 387563 | 20 | $1 - 4$ | 3 | 1.48 |
| NDC 143 | 6430835 | 387589 | 15 | $0 - 4$ | $\overline{4}$ | 1.69 |
| NDC 144 | 6430835 | 387579 | 15 | $0 - 1$ | I | 1.13 |
| $2 - 6$ | $\ensuremath{\mathsf{4}}$ | 1.09 | ||||
| NDC 145 | 6430835 | 387569 | 15 | $4 - 6$ | $\bar{z}$ | 1.43 |
| NDC 146 | 6430825 | 387578 | 15 | $0 - 7$ | 7 | 4.42 |
| NDC 149 | 6430790 | 387588 | 49 | $0 - 4$ | $\boldsymbol{4}$ | 1.41 |
| NDC 152 | 6430780 | 387589 | 9 | $0 - 7$ | 7 | 1.05 |
| NDC 153 | 6430780 | 387579 | 9 | $0 - 2$ | $\mathbf 2$ | 1.20 |
| NDC 168 NDC 165 |
6430895 6430870 |
387578 387541 |
10 15 |
$0 - 4$ $0 - 2$ |
$\overline{4}$ 2 |
1.37 1.09 |