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STREAMPLAY STUDIO LIMITED Interim / Quarterly Report 2007
65841_rns_2007-04-29_f43a8421-c544-4a93-be2e-cd292734052b.pdf
Interim / Quarterly Report
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PO Box 352 Nedlands WA 6909 Australia e : [email protected] w: www.gippslanditd.com
THIRD QUARTER ACTIVITIES REPORT
Period: January - March 2007 Release date: 30 April 2007
HIGHLIGHTS
- ÷ ABU DABBAB - UPDATED FEASIBILITY STUDY DELIVERED
- ÷ SEIGA - GOLD
- Wide zones of anomalous gold in Seiga rock-chip sampling (up to 80m at $1.76q/t$ Au)
- Discontinuous zones of mineralisation extended to over 1,200m of strike length
- Open along strike and at depth
- Intersection of 15m at 1.64g/t Au in hole CRC075 extends zone 300m to south
- Completion of preliminary JORC compliant resource estimate
- $\frac{1}{2}$ TOPOGRAPHIC SURVEY
- Topographic surveys at Seiga and Shashoba to facilitate resource upgrade
- ÷. ABU SWAYEL - COPPER NICKEL EXPLORATION
- EM & IP survey prior to drilling
- SUCCESSFUL LONDON CAPITAL RAISING ÷
ABU DABBAB FEASIBILITY STUDY UP-DATE
The Company has taken delivery of the final draft of the updated Abu Dabbab feasibility study from Lycopodium Engineering Limited. The document is presently undergoing final review which will be completed within 10 days following which details will be released to the market.
WADI ALLAQI
During the quarter the Company completed exploration on the Seiga and Um Garavat prospects and made preparations for work programmes on the Haimur, Abu Swayel, Seiga and Shashoba prospects located in wadi Allagi to the south-east of Aswan in Egypt.
The Company is presently holding discussions with a number of German banks offering attractive project finance packages. It is anticipated that the finance of Abu Dabbab will comprise of 80% debt and 20% equity.
ASX LSE Quarterly Jan - Mar 070430.doc
RC DRILLING
The results of a further sixteen RC holes from the second-phase drilling and geochemical sampling at the Seiga gold prospect completed during the December quarter were received. The drilling is part of reconnaissance drilling to the north and south of the main zone of mineralisation adjacent to historical workings along the Seiga shear zone.
Two lines of RC drill holes previously drilled along flat ground in the wadi to the south of rockchip sampling profile CP21 intersected low grade mineralisation in four adiacent holes (CRC045, 71, 74, 75, 77 & 78). A single hole (CRC070) drilled adiacent to profile CP19 intersected 23m of low-grade mineralisation over two intervals.
| Hole | Interval $(m)$ | Length $(m)$ | Gold (g/t) |
|---|---|---|---|
| CRC040 | 0 to 28 | 28 | 1.14 |
| CRC041 | 8 to 30 | 22 | 1.74 |
| CRC045 | 1 to 8 | 0.19 | |
| CRC070 | 1 to $12$ | 11 | 0.32 |
| And | 32 to 44 | 12 | 0.22 |
| CRC071 | 16 to 30 | 14 | 0.49 |
| CRC074 | 1 to 16 | 15 | 0.61 |
| CRC075 | 1 to 16 | 15 | 1.64 |
| CRC077 | $4$ to $8$ | 4 | 0.51 |
| CRC078 | 4 to 30 | 26 | 0.50 |
Table 1 - Previously reported drill hole intersections referred to in the text
It is planned to complete systematic RC drill testing of the rock-chip anomalies during May when a buildozer will be on site to complete the access and drill pad construction.
The drilling extends the known strike length of mineralisation within the shear system for at least a further 300m to the south giving a total strike length of at least 1,200m.
ROCK-CHIP SAMPLING
A programme of continuous rock-chip sampling along sixteen profiles (CP6-21) was completed at Seiga as an aid to identifying parallel zones of mineralisation located to the east of the ancient workings. The results of the sampling clearly identified the main zone of mineralisation with profile CP12 containing 80m at 1.76g/t Au which included 15m at 3.23g/t Au.
The sampling identified two separate zones of mineralisation located to the east of the main zone over an interpreted strike length of approximately 1100m. The best result included 25m at 1.14g/t Au in the eastern part of profile CP15. This anomaly is coincident with mineralisation previously intersected in holes CRC052 and CRC053 which returned values of 18m at 0.36g/t Au and 11m at 0.62q/t Au respectively. Four separate zones of mineralisation have now been located at Seiga.
The best results for each profile are summarised in the table below and include a 10m wide zone averaging 3.2g/t Au. In terms of exploration potential the wider zones of lower grade mineralisation are considered to be very significant as they represent a much larger target. The widest zone of anomalous gold values $(0.1q/t)$ Au) is 120m with an average grade of 0.59 $q/t$ Au and is of considerable interest as the lower cut-off for the previously announced Seiga Inferred Resource was 0.5a/t.
| Table 2: Seiga - Summary of best rock-chip results (>0.1g/t Au) | ||||
|---|---|---|---|---|
| -- | -- | -- | ----------------------------------------------------------------- | -- |
| Profile | From $-$ To $(m)$ | Interval $(m)$ | Gold grade $(g/t)$ |
|---|---|---|---|
| CP 10 | 10 to $-25$ | 15 | 1.59 |
| CP11 | 60 to 70 | 10 | 1.64 |
| CP12 | 5 to 75 | 70 | 0.51 |
| including | 15 to 30 | 15 | 0.50 |
| 40 to 75 | 35 | 1.99 |
GIPPSLAND
| CP15 | 115 to 120 | 5 | 4.34 |
|---|---|---|---|
| CP 16 | 30 to 45 | 5 | 0.80 |
| CP17 | 30 to 60 | 30 | 0.46 |
| CP 18 | $0$ to 15 | 15 | 0.33 |
| CP 19 | 35 to 70 | 35 | 1.31 |
| CP 19 | 90 to 105 | 15 | 0.96 |
| CP 19 | 90 to 145 | 55 | 0.36 |
| CP 20 | 40 to 160 | 120 | 0.59 |
| CP 21 | 30 to 120 | 90 | 0.71 |
| CP21 | 85 to 95 | 10 | 3.20 |
The western end of profile CP19 (35m at 1.31g/t) represents the southern extension of the good intersections recorded in drill holes CRC040 & 041 located 50m to the north. These two holes intersected 28m at 1.14q/t Au and 22m at 1.74q/t Au respectively.
REGOLITH SAMPLING
A small regolith sampling programme was completed over an area of thin wadi sands adjacent to the southwest of the ancient workings. Samples were collected at 20m intervals along nine lines 100m apart. The programme was designed to test for mineralised shears below the wadi sands in an area that had not been systematically covered by trenching or RC drilling. Most of the samples contained anomalous gold, the highest being 3.06g/t. Three targets (A, B & C) were identified in areas where there has been no previous exploration which will be drill tested during the May drillina.
JORC RESOURCE ESTIMATION
On 12 January 2007 Gippsland announced a preliminary Seiga resource estimation which was completed by the Company's geologists for a 525m strike length of the Seiga main zone incorporating the results of 25 RC drill holes.
The inferred resources total 1.1Mt at 2.3g/t (uncut) and 2.0g/t (10g/t cut) to a maximum depth of 150m and a global SG of 2.5 at a 0.7q/t cut-off. The estimation method was by ore block modelling constrained within a wireframe model interpreted from drilling along ten sections.
ASX LSE Quarterly Jan - Mar 070430.doc
| 1000000000000000000000000000000000000 | |||||
|---|---|---|---|---|---|
| Cut-off $(q/t)$ | Tonnes (Mt) | Au-uncut (g/t) | Au-10 $g/t$ cut $(g/t)$ | Au (oz) | |
| 1.0 | 0.8 | 3.0 | 2.5 | 76,000 | |
| 0.7 | 2.3 | 2.0 | 85,000 | ||
| 0.5 | ל. ו | 93,000 | |||
| 0.4 | l.9 | .6 | -4 | 98.000 | |
| $-$ | $\cdots$. | . . |
Table 3: Seiga Main Zone - Inferred Resources
Figures in table may not tally due to rounding
The area included in the resource estimation comprises only a small part of the mineralised shear svstem.
RESOURCE DRILLING
Additional RC drilling is planned at Seiga where a JORC Inferred Resource of 1.5Mt at 1.6q/t Au for a total of 93,000oz has been outlined to date. The work will include resource infill drilling around the previously defined Seiga Main Zone. This work will be followed-up by diamond drilling. The diamond drilling equipment is currently being sent from Australia to Egypt to enable the deposit to be drill tested below 150m. The Mantis 330D rig presently on site will continue to test numerous high-priority targets within the Company's Wadi Allagi tenements.
The currently defined Inferred Resource at Seiga is located within a 525m strike length of one of three mineralised zones identified by RC drilling over an 800m strike length of mineralised shear. Geological mapping and limited drilling has shown that the total length of the shear within the Seiga tenement is at least 3.4km.
TOPOGRAPHIC SURVEYS
Topographic surveys have commenced at the Seiga prospect to accurately locate all of the drill collars, ancient workings and topography in preparation of upgrading the currently defined resource at Seiga to a higher resource category once the current drilling programme has been completed. A topographic survey has also commenced at the Shashoba prospect.
COPPER-NICKEL EXPLORATION AT ABU SWAYEL
A programme of electromagnetic ("EM") and induced polarisation ("IP") has been planned at the Abu Swayel copper-nickel prospect was one of two known major sources of copper in ancient Egypt. This ancient mine is situated 160km southeast of Aswan 35km to the northeast of the Company's western group of Wadi Allaqi gold deposits.
In the early part of the 1900s the Nile Valley Company Limited sank a shallow shaft with a crosscut at the 22m level to test the vertical continuity of the mineralisation. This shaft was deepened to 69m in the 1960s by the West German company Demag AG in conjunction with a diamond drilling program of ten holes by the Egyptian Geological Survey, to test the down dip continuity of the mineralisation over a strike length of 200m. Of the 1,205m of drilling completed, only 21 samples ranging from 1-2m in length were assayed by Demag. Three of the holes (DH01, DH02 & DH14) returned significant Cu and Ni values.
Sampling of the cross-cut in the 1960s gave an average 4.11% Cu, 1.77% Ni, 17.81% Fe and 9.94% S over 8m.
| Location | From $(m)$ | To (m) | Interval $(m)$ | Cu (%) | Ni (%) |
|---|---|---|---|---|---|
| DH 01 | 21.00 | 23.60 | 2.60 | 1.16 | 0.24 |
| DH 02 | 25.70 | 29.95 | 4.25 | 1.58 | 0.23 |
| DH14 | 48.55 | 49.85 | 1.30 | 2.23 | 0.20 |
| Shaft | 30.00 | 40.00 | 10.00 | 1.87 | 1.53 |
| Cross-cut | 7.50 | 15.50 | 8.00 | 4.11 | 1.77 |
Table 1: Abu Swayel - Best Cu & Ni intersections
The mineralised host unit is an elongated, lenticular amphibolite body which can be traced for some 500m along a northwest-southeast strike and enclosed by a garnet-mica schist. Coppernickel mineralisation occurs both in the amphibolite body and in enclosing host. The mineralisation contains chalcopyrite, pyrite, nickel-bearing violarite, and ilmenite. The relict textures of the pyrite and the violarite show the primary ores to be pyrrhotite, pentlandite and chalcopyrite. The drilling intersected a persistent, apparently stratiform, sulphide-bearing zone of variable thickness, that hosts the mineralised amphibolite body.
Except for geological mapping there has been no exploration outside of the immediate vicinity of the ancient workings since the early 1960s. The results of the previous exploration clearly show that mineralisation is present at grades and over widths that would be readily detected by geophysical methods such EM and IP techniques equipment for which is presently being mobilised.
The Abu Swayel licence covers 16km2 of favourable stratigraphy along strike from the old workings which have not been tested for Cu-Ni mineralisation. Much of the area is covered by thin wadi sediments which can be readily explored by means of ground geophysical methods.
CAPITAL RAISING - LONDON
On 26 April 2007 the Company announced the placement of 26,666,666 fully paid ordinary shares to UK institutional investors at a price of 4.5 pence (approximately 10.82 Australian cents) per share raising the sum of UK£1.200.000 (approximately A$2.89 million) before costs. The placing was undertaken by UK broker HB-Corporate.
Application was made for the admission of the new shares for trading on the London Stock Exchange AIM and the Australian Stock Exchange with trading expected to commence on 2 May 2007.
The funds raised under this placing will be employed to accelerate exploration of the Company's Wadi Allagi tenements where several highly prospective gold, copper and nickel projects are being pursued.
In addition to on-going working capital, the funds raised will also be used for the commencement of detailed engineering design for the Abu Dabbab project and the expansion of Gippsland's management team in Australian and Egypt as this project progresses into a world scale tantalum producer.
RJ (Jack) Telford Executive Chairman
For further information please contact:
Jack Telford Gippsland Limited www.gippslandltd.com Tel: +61 (0)8 9340 6000 [email protected]
Laurence Read / Ed Portman Conduit PR Tel: +44 (0)20 7429 6605 / 6607 [email protected] [email protected]
Les Polden / Luke Cairns Hoodless Brennan Plc Tel: +44 (0)20 7538 1166 [email protected] [email protected]
Fíona Owen Grant Thornton Corporate Finance Tel: +44 (0)20 7383 5100 [email protected]
Note:
The information in this document that relates to Exploration Results. Mineral Resources or Ore Reserves is based on information compiled by Dr John Chisholm who is a Fellow of the Australasian Institute of Mining and Metallurgy. Dr Chisholm, an Executive Director and a full-time employee of Gippsland Limited, has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2005 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr John Chisholm consents to the inclusion in this document the matters based on his information in the form and context in which it appears.