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STELLAR RESOURCES LIMITED Investor Presentation 2005
65860_rns_2005-12-01_03dd2887-6acd-4835-abe9-e8c5903d9136.pdf
Investor Presentation
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X Kelease
Project update – Robins Rise Drilling update – Tarcoola region (SA) – Coolybring
Robins Rise (IOCG)
Stellar Resources holds exploration title over ground considered to be broadly on trend with Olympic Dam and Prominent Hill and is greatly encouraged by the recent Carrapateena discovery.
During the last 6 months, the Board elevated the priority of the Company's Iron Oxide Copper-Gold (IOCG) targets and detailed gravity surveys were carried out in the Robins Rise and Lake Woorong Exploration Licence areas. Results have now been received and merged with existing aeromagnetic and drilling information.
The Company is very pleased to report that strong gravity responses of up to 5 mGals magnitude have been identified in structural target zones adjacent to low order magnetic features, comparable to the geophysical signatures at the Prominent Hill deposit and the new Carrapateena discovery.
These surveys have defined four priority drilling targets for IOCG style mineralisation and drill testing will be carried out early in 2006, as soon as a suitable rig is secured.
2 December 2005
Coolybring
Reverse Circulation (RC) drilling at Coolybring has been completed on two sections to establish the dimensions of potential iron ore deposits of magnetite jaspilite intersected in earlier diamond drilling. Three holes intersected the magnetic sequence and have established a minimum thickness for the jaspilite unit of approximately 200 metres. Assay results include:
ASX Code: SRZ
ABN 96 108 758 961 Suite 713 Exchange Tower 530 Little Collins Street Melbourne Victoria 3000 Australia
Telephone +61 3 9909 7618 Facsimile +61 3 9909 7621
www.stellarresources.com.au [email protected]
| Hole | From (m) | $T_0(m)$ | Length (m) | Grade (Fe%) |
|---|---|---|---|---|
| WILRC06 | 16 | 140 (EOH) | 24 | 39.34 |
| WILRC08 | 110 | 176 (EOH) | 66 | 34.0 |
| WILRC09 | 76 | 156 | 80 | 33.18 |
Drilling results from Coolybring have confirmed a thick sequence of magnetite mineralisation within jaspilite, with consistent levels of Fe indicated. Further metallurgical test-work is planned to evaluate the processing characteristics prior to deciding on further work.
ROBINS RISE
Figure 1 – "TMI image showing Olympic Dam – Prominent Hill, IOCG trend".
Results for detailed gravity surveys in the Robins Rise and Lake Woorong Exploration License areas have been received and merged with existing aeromagnetic and drilling information.
Significant gravity anomalies have been defined in favourable structural and magnetic settings in the "Woorong", "Lonesome", "Robins" and "Georges" prospect areas, with gravity amplitudes of up to 5 mGals in positions displaced from magnetic sources. These features are consistent with haematite dominant IOCG style mineralisation, comparable to the Prominent Hill deposit and the recent Carrapateena discovery. Relationships between magnetics and the new gravity data for the "Lonesome" prospect are illustrated in Figure 2.
Figure 2 – "Lonesome" Prospect – Gravity Contours on Aeromagnetic Image
Lower order gravity features in the range of 2 to 4 mGals were also recorded in each of the "Woorong". "Robins" and "Georges" prospect areas, however, all are considered to be priority drilling targets. Drilling of these prospects is planned for next quarter once preparations are completed and a suitable drilling rig has been sourced.
COOLYBRING
The Coolybring aeromagnetic anomaly (Figure 3) is inferred to represent a major zone of Lower Proterozoic Wilgena Jaspilite, comparable to outcrop of this lithology in the Wilgena Hill area, approximately 15 kilometres to the east. The Wilgena Jaspilite sequence of Banded Iron Formation is correlated with the Middleback Ranges BIF, which hosts the haematite and magnetite resources of One Steel Ltd on the northern Eyre Peninsula.
Figure 3 – Aeromagnetic image for the Coolybring and Wilgena Hill prospects.
Vertical diamond drill-holes (DDH) WILDDH04 and WILDDH05 were completed on the Coolybring anomaly in early 2005, and both holes intersected thick zones of magnetite mineralisation within Wilgena Jaspilite, as reported previously. The present round of RC drilling was carried out on two sections across the southern portion of the anomaly as indicated in Figure 4. Holes WILRC06, WILRC08 and WILRC09 were successful in penetrating the younger cover section to intersect the target jaspilite sequence. Hole WILRC07 was abandoned due to drilling difficulties within the cover.
Figure 4 – Locations for Early Holes RC01, DDH04, DDH05 and recent RC06 – RC09
Results from the three successful holes have confirmed a minimum thickness of 200 metres for the jaspilite sequence, with relatively uniform iron grades averaging 36% Fe and mineralisation open to depth. Geophysics suggests a strike length of at least 500 metres for the southern zone and a similar strike for the northern zone, currently only tested by hole WILDDH05. Magnetic beneficiation testing is planned to be carried out on the RC samples subject to a review of the project economics.
The drill and exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. C.G. Anderson (Fellow of the Australasian Institute of Mining and Metallurgy) who is a Director of the Company with more than twenty years experience in the field of activity being reported. Mr. Anderson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. It should be noted that the abovementioned exploration results are preliminary.
For further details please contact:
Tom Burrowes Tel: 03 9909 7618 Chris Anderson Tel: 08 8363 1589 [email protected] or [email protected] $E$ -mail: or visit our Website at: www.stellarresources.com.au