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RAREX LIMITED — Capital/Financing Update 2008
Nov 26, 2008
65681_rns_2008-11-26_e8545fb6-bab3-4790-b3b4-fd6f669bb158.pdf
Capital/Financing Update
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ASX/ Media Announcement 27 November 2008
CLANCY ATTRACTS ADDITIONAL $3.0M JV FUNDING FROM GOLD FIELDS
Clancy Exploration Limited (ASX: CLY) is pleased to announce that it has entered into a joint venture agreement with Gold Fields Australasia Pty Ltd (“Gold Fields”) on its exciting Myall copper-gold project in NSW.
Under the agreement, Gold Fields has the initial right to earn 51% of the project by funding A$3 million over three years with a A$500,000 minimum commitment in the first year. Clancy will continue to manage the joint venture. Gold Fields may earn up to a total of 75% of the project by completing a feasibility study or incurring feasibility expenditure of at least A$15M but with the on-going obligation to deliver a feasibility study within a reasonable time frame thereafter.
Clancy’s Managing Director, Mr Mark Stewart, said that the expansion of the relationship with Gold Fields was a further strong affirmation that Gold Fields are highly supportive of Clancy’s targeting approach and the way Clancy is going about exploration in the Lachlan Fold Belt.
“We are very pleased to be able to announce a fourth joint venture with Gold Fields as this provides even greater financial strength to Clancy at a difficult time in the market for junior explorers. We look forward to continuing our relationship with Gold Fields,” said Mr Stewart.
Myall (EL6913) is located 25km southwest of Narromine at the northern end of the JuneeNarromine Volcanic Belt of the Macquarie Arc (Figure 1). The Junee-Narromine Volcanic Belt hosts the Northparkes copper-gold mine. At Northparkes, the geophysical anomaly is a coincident regional gravity low and magnetic high and the geochemical anomaly is a broad zone of anomalous copper (>500ppm) over >7km[2] . The scale of the Myall geophysical and geochemical anomalies are similar.
Previous drilling at Myall defined a zone of anomalous copper (>500ppm) over a strike length of 13.5km with a maximum width of 3km. Large areas within this zone are >1000ppm copper, typified by the Kingswood prospect where the +1000ppm copper zone extends over 2.5 x 1.5km.
Highlights from the previous drilling at the Kingswood prospect include a 37.5m drilled width of sheeted quartz-magnetite veining with associated chalcopyrite and bornite with peak values of 1.7g/t gold, 0.5% copper. Follow-up drilling of this zone and nearby magnetic highs intersected porphyry related quartz-magnetite-chalcopyrite-bornite veins, quartz-pyrite veins and intense silica-sericite-pyrite alteration. Large widths of copper-gold mineralisation were also intersected in the previous drilling; e.g. 107m @ 0.11g/t gold and 0.43% copper, including 18m @ 0.29g/t gold and 0.93% copper.
The drill intercepts combined with the presence of extensive porphyry-style alteration and veining, the bornite and chalcopyrite abundance and the large geochemical dispersion halos, suggests that Myall remains highly prospective for a substantial porphyry system.
Clancy will commence aircore drilling at Myall within a week and a ground gravity survey is scheduled for early December.
-ENDS-
Clancy Exploration Limited Level 3 1060 Hay Street, West Perth WA 6005 Telephone: (08) 9481 8241 Facsimile: (08) 9321 0320 www.clancyexploration.com [email protected]
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Figure 1 – Map showing the location of Clancy projects in the JuneeNarromine and Molong Volcanic Belts of the Macquarie Arc with the Myall project highlighted (black box). Also showing the recently acquired tenements from Centaurus Resources (CUR) in red. Inset – the location of the map within NSW.
Clancy Exploration Limited Level 3 1060 Hay Street, West Perth WA 6005 Telephone: (08) 9481 8241 Facsimile: (08) 9321 0320 www.clancyexploration.com [email protected]
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Figure 2 – Myall EL6913 geology showing geochemical and geophysical anomalies and significant previous drilling intercepts.
Please direct enquiries to:
Mark Stewart Managing Director Tel: +61 8 9481 8241 Email: [email protected] Web: www.clancyexploration.com
John Phaceas FD Third Person Tel: +61 8 9386 1233 Mob: +61 (0)411 449 621
Clancy Exploration Limited Level 3 1060 Hay Street, West Perth WA 6005 Telephone: (08) 9481 8241 Facsimile: (08) 9321 0320 www.clancyexploration.com [email protected]
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About Clancy
Clancy Exploration (ASX: CLY) is an Australian-focused copper, gold and base metals explorer. Although a relatively new listing on the ASX (July 2007), the Company’s portfolio has been built up over a number of years and consists of highly prospective copper-gold projects in the Lachlan Fold Belt of NSW and base metal projects in the Mount Read Volcanic Belt of Tasmania.
Full details of Clancy’s projects can be found at the website - www.clancyexploration.com/news/news.html
Clancy’s competitive advantages include having one of the largest ground positions of any explorer in the prospective Macquarie Arc (>3300km[2] ), and the innovative use of digital geological and geophysical data in probability based targeting.
The Company’s objective is to advance its properties to a stage of commercial development by applying faster, less expensive and more reliable analytical methods to resource exploration. The exploration activities are well-funded, applying Clancy’s funds and those of its joint venture partners, and substantial upside exists with the potential addition of resources.
Additionally, Clancy has established joint ventures with Gold Fields on four projects in NSW (managed by Clancy) and with Bass Metals Limited on the Tasmanian tenement package (managed by Bass Metals). Clancy, in conjunction with Gold Fields, has spent over $4.7 million on the Lachlan Fold Belt projects to date since listing, and on-going funding is assured via the continued strong support from Gold Fields.
The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gordon Barnes who is a Member of the Australian Institute of Geoscientists. Mr Barnes is a full-time employee of Clancy Exploration Limited 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”. Mr Gordon Barnes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Clancy Exploration Limited Level 3 1060 Hay Street, West Perth WA 6005 Telephone: (08) 9481 8241 Facsimile: (08) 9321 0320 www.clancyexploration.com [email protected]