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STREAMPLAY STUDIO LIMITED Interim / Quarterly Report 2007
65841_rns_2007-01-29_0271b903-1ac6-44d6-b9a8-b78f944ed4fe.pdf
Interim / Quarterly Report
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$f$ : +618 9340 6060
PO Box 352 Nedlands WA 6909 Australia e : [email protected] w: www.gippslanditd.com
SECOND QUARTER ACTIVITIES REPORT
Period: September - December 2006 Release date: 30 January 2007
SUMMARY
- ÷ 40Mt Abu Dabbab tantalum project
- Gippsland terminates Lead Debt Arranger Mandate with International Finance Corporation
- Appointment of Linden Advisory & Consulting Services as Financial Advisor
- Detailed project finance discussions in progress with European Banks
- ÷ Wadi Allaqi continues to yield significant results
- 1,200m long zone of mineralisation defined by drilling at Seiga
- Inferred Resource estimation completed at Seiga
- Rockchip sampling identifies new zones of mineralization at Seiga
- Potential for significant tonnages at mineable grades
- Company Presentations ÷
- London Minesite presentation stimulates highly positive responses from brokers & investors
- Company to present at Indaba Cape Town 6 to 8 February 2007
- Company presentations Paris 21 February, Geneva 22 February & Zurich 23 February 2007
40Mt ABU DABBAB TANTALUM PROJECT
During the guarter the Company continued to make sound progress in regard to the Abu Dabbab project whilst taking steps to ensure that the commissioning of the project will take place in the shortest possible time frame.
INTERNATIONAL FINANCE CORPORATION
On 7 March 2006, the Company") announced that the International Finance Corporation ("IFC") had been mandated ("the Mandate") as Lead Debt Arranger for Gippsland's 40 million tonne Abu Dabbab Tantalum-Tin project in Egypt.
During the quarter the Company announced that it has cancelled the IFC Mandate in order to pursue alternative sources of finance.
The cancellation of the IFC Mandate does not preclude the IFC from participating in the provision of finance for the Project.
APPOINTMENT OF LINDEN ADVISORY & CONSULTING SERVICES
Following the cancellation of the IFC Mandate, the Company appointment Linden Advisory & Consulting Services as Financial Advisor to assist in the arrangement of project finance for the Abu Dabbab project.
Linden Advisory & Consulting Services www.eikelinden.com based in Frankfurt Germany, is headed by Dr Eike von der Linden, an internationally recognised authority in regard to industrial and resource projects world-wide. Dr von der Linden is well connected to the global tantalum industry and has a close working relationship with a number of German banks involved in the financing of natural resource projects.
Linden Advisory & Consulting Services has completed a technical and financial review of the Abu Dabbab feasibility study and is presently assisting the Company in discussions with potential investors and a select number of European project finance banks.
WADI ALLAQI GOLD EXPLORATION
During the quarter, the Company's Wadi Allagi gold exploration drilling programme continued to vield most encouraging results at the Seiga and Shashoba prospects.
SEIGA
During the quarter, work included some infill drilling within the main zone of mineralisation adjacent to historical workings, some follow-up drilling of anomalous drilling results along strike from the historical workings and completion of the reconnaissance drilling along the shear zone.
| . Hole |
an boot abiga animig interpedience Intersection (m) |
Interval (m) | Gold grade (g/t) | ||
|---|---|---|---|---|---|
| CRC052 | $12 - 30$ | 18 | 0.37 | ||
| CRC053 | 1 - 12 | 11 | 0.62 | ||
| CRC056 | $40 - 88$ | 48 | 1.60 | ||
| including | $60 - 68$ | 8 | 7.75 | ||
| CRC057 | $20 - 52$ | 32 | 0.52 | ||
| CRC058 | $40 - 76$ | 36 | 1.04 | ||
| including | $40 - 48$ | 8 | 3.24 | ||
| CRC059 | $1 - 24$ | 23 | 1.16 | ||
| CRC060 | $32 - 60$ | 28 | 1.30 | ||
| including | $32 - 44$ | 12 | 2.23 | ||
| CRC065 | $1 - 56$ | 55 | 0.19 |
Table 1: Summary of hest Seiga drilling intersections
GIPPSL
| CRC068 | 1 - 4 | 3 | 2.78 |
|---|---|---|---|
| and | $24 - 48$ | 24 | 0.53 |
| CRC069 | $16 - 40$ | 44 | 0.64 |
| including | $20 - 32$ | 12 | 1.18 |
| CRC074 | $1 - 16$ | 15 | 0.61 |
| CRC075 | $1 - 16$ | 15 | 1.64 |
| CRC077 | $4 - 8$ | 4 | 0.51 |
| CRC078 | $4 - 32$ | 26 | 0.50 |
The drilling results confirm the presence of a zone of discontinuous mineralisation within the shear system occurring over a strike length of at least 1,200m.
INFILL DRILLING
The infill drilling consisted of five RC holes to test a 220m gap in the previous drilling. Hole CRC056 returned 48m at 1.60g/t Au from 40m depth, including 8m at 7.75g/t Au from 60m depth. This hole is located 50m north of the previously drilled hole CRC013 which intersected 24m at 5.21g/t Au from 48m.
Hole CRC058 drilled 90m to the north of CRC056 intersected 36m at 1.04q/t Au from 40m including 8m at 3.24g/t Au from 40m. Hole CRC057 was drilled 10m north of CRC058 but from the opposite direction and intersected 32m at 0.52g/t Au from 20m.
Hole CRC060 drilled 40m to the north of holes CRC057 and 058 intersected 28m at 1.30g/t Au from 32m including 12m at 2.23g/t Au from 32m.
Hole CRC059 drill along the previously drilled section containing holes CRC014 to 016 and 28m north of Hole CRC060 intersected 23m at 1.16g/t Au from 1m depth.
FOLLOW-UP DRILLING
The follow-up drilling tested gold anomalies in the first-pass drilling. Hole CRC065 tested a gold intersection in Hole CRC017 which was at the eastern end of the drill profile. The hole intersected 55m at 0.19g/t Au from 1m.
A second zone of mineralisation is located slightly to the east of the zone containing the historical workings. This zone was intersected in a number of holes during the first-pass drilling and generally in the last hole in the profile. Follow-up drilling along this zone returned significant results in two holes and resulted in the location of a third zone of mineralisation located further to the east.
Hole CRC068 returned 3m at 2.78q/t Au from 1m and 24m at 0.53q/t Au from 24m. Hole CRC069 intersected 44m at 0.64g/t Au from 16m including 12m at 1.18g/t Au from 20m.
Significant intersections returned from the third mineralised zone include 11m at 0.62g/t Au from 1m in CRC053 and 18m at 0.37g/t Au from 12m in hole CRC052.
RECONNAISSANCE DRILLING
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. The results of four reconnaissance holes (CRC087 - 090) located to the north and south of the shear zone are still outstanding.
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.
Gippsland Limited
ROCK-CHIP SAMPLING
A programme of rock-chip sampling along sixteen profiles 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 results of profiles CP19 to 21 are yet to be received.
The sampling identified two separate zones of mineralisation located to the east of the main zone over an interpreted strike length of approximately 800m. 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 0.36q/t Au and 11m at 0.62g/t Au respectively. Four separate zones of mineralisation have now been located at Seiga.
| Profile | From $-$ To $(m)$ | Interval $(m)$ | Gold grade (g/t) |
|---|---|---|---|
| CP10 | $10 - 25$ | 15 | 1.59 |
| CP11 | $60 - 70$ | 10 | 1.64 |
| CP12 | $5 - 75$ | 70 | 0.51 |
| including | $15 - 30$ | 15 | 0.50 |
| and | $40 - 75$ | 35 | 1.99 |
| CP15 | 115 - 120 | 5 | 4.34 |
| CP 16 | $30 - 45$ | 5 | 0.80 |
Table 2: Seiga - Summary of best rock-chip results
JORC RESOURCE ESTIMATION
A preliminary resource estimation 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 2.3q/t (uncut) and 2.0q/t (10q/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.
| гарс э. Оскій імпія дэне - інгеней пезоці сез | ||||
|---|---|---|---|---|
| Cut-off $(q/t)$ | Tonnes (Mt) | Au-uncut $(g/t)$ | Au-10 $g/t$ cut $(g/t)$ | (oz) Au- |
| 0.8 | 3.0 | 2.5 | 76,000 | |
| 0.7 | 2.3 | 2.0 | 85,000 | |
| 0.5 | 1.5 | 1.6 | 93,000 | |
| 0.4 | 1.9 | 1.6 | 1.4 | 98,000 |
| $-$ | $\cdots$ . |
. . |
Table $3o$ Saiga Main Zone - Inferred Resources $^{A}$
Figures in table may not tally due to rounding
The Company's Wadi Allaqi tenements, of which Seiga is a part, are the subject of a 50:50 joint venture with the Egyptian Mineral Resources Authority.
The area included in the resource estimation comprises only a small part of the mineralised shear system. As drilling progresses, additional resources are expected to be defined below the current resources and also in close proximity to the Seiga main zone, along the Seiga south zone and in the two eastern zones. Drilling within the Seiga south zone mineralisation located to the southeast which is at least 800m long and contains some previously reported intersections that include 28m at 1.14g/t Au in CRC040, 22m at 1.74g/t Au in CRC041 and 12m at 1.18g/t Au in CRC069.
A further two mineralised zones have been identified by rock-chip sampling and limited drilling located to the east.
The Director's are encouraged by the results of the resource estimation as they show that the prospect has the potential for significant tonnages at mineable grades.
Drilling is proposed to test the Seiga main zone at depth as this has the potential to significantly increase the resources.
SHASHOBA
Seventeen RC drill holes were completed at the Shashoba prospect totalling 738m. The drilling followed-up some previous drilling around historical workings, a new area of minor workings in the north and a geochemical anomaly in the south. The assay results are still outstanding.
GARAYAT
A programme of RC drilling to test the historical workings at the Garayat gold mine was commenced during the quarter. A total of eight holes totalling 576m were completed prior to the Christmas break with a further 15 holes to be completed during January.
INTERNATIONAL EXPOSURE & INTEREST
During January 2007 the Company made a presentation regarding both Abu Dabbab and Wadi Allagi at the MineSite www.minesite.com conference in London which generated considerable interest in the Company.
The Company will make a similar presentation at the INDABA conference being held in Cape Town South Africa 6 - 8 February 2007. Gippsland will occupy display booth № 910.0 at Indaba www.iiconf.com.
Because of the high level of European interest in the Abu Dabbab project, investor meetings and presentations will be held in Paris on 21 February, in Geneva on 22 February and in Zurich on 23 February 2007.
NEW HEAD OFFICE LOCATION
To cater for Gippsland's expanding operations, the Company has relocated its Australian head office as shown on this letterhead.
RJ (Jack) Telford Executive Chairman
For further information please contact:
| [email protected] |
|---|
| [email protected] |
Note: In accordance with Listing Rule 5.6 of the Australian Stock Exchange Limited and Part 2 of the AIM Guidance Notes for Mining, Oil and Gas Companies, the geological information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data compiled by Dr John Chisholm, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Chisholm who is an Executive Director of Gippsland Limited with over 25 years experience in the mineral industry including the evaluation of exploration data, mineral resources and ore reserves, has consented to the issue of the information in this report in the form and context in which it appears.
APPENDIX1
| Hole | Prospect | Easting | Northing | RL | Az | Dip | Depth (m) |
|---|---|---|---|---|---|---|---|
| CRC046 | Seiga | 616166 | 2493837 | 500 | 60 | $-56$ | 60 |
| CRC047 | Seiga | 616246 | 2493860 | 500 | 60 | $-54$ | 30 |
| CRC048 | Seiga | 616262 | 2493869 | 500 | 60 | $-55$ | 30 |
| 616280 | 500 | 60 | $-60$ | 30 | |||
| CRC049 | Seiga | 2493872 | |||||
| CRC050 | Seiga | 616287 | 2493881 | 500 | 60 | $-57$ | 30 |
| CRC051 | Seiga | 616310 | 2493888 | 500 | 60 | $-60$ | 30 |
| CRC052 | Seiga | 616328 | 2493892 | 500 | 60 | $-60$ | 30 |
| CRC053 | Seiga | 616336 | 2493900 | 500 | 60 | $-58$ | 30 |
| CRC054 | Seiga | 616352 | 2493903 | 500 | 65 | $-59$ | 30 |
| CRC055 | Seiga | 616373 | 2493897 | 500 | 60 | $-58$ | 30 |
| CRC056 | Seiga | 616075 | 2494146 | 500 | 255 | $-55$ | 99 |
| CRC057 | Seiga | 615982 | 2494223 | 500 | 235 | $-55$ | 57 |
| CRC058 | Seiga | 615946 | 2494185 | 500 | 60 | $-57$ | 99 |
| CRC059 | Seiga | 615929 | 2494269 | 500 | 240 | $-62$ | 42 |
| CRC060 | Seiga | 615923 | 2494235 | 500 | 60 | $-61$ | 60 |
| CRC061 | Seiga | 615789 | 2494430 | 500 | 60 | $-60$ | 30 |
| CRC062 | Seiga | 615801 | 2494438 | 500 | 60 | $-60$ | 30 |
| CRC063 | Seiga | 615826 | 2494447 | 500 | 60 | $-60$ | 30 |
| CRC064 | Seiga | 615824 | 2494424 | 500 | 60 | $-60$ | 30 |
| CRC065 | Seiga | 616115 | 2493964 | 500 | 60 | $-60$ | 60 |
| CRC066 | Seiga | 616093 | 2493946 | 500 | 60 | $-60$ | 60 |
| CRC067 | Seiga | 616139 | 2493880 | 500 | 60 | $-60$ | 60 |
| CRC068 | Seiga | 616222 | 2493859 | 500 | 60 | $-60$ | 60 |
| CRC069 | Seiga | 616330 | 2493639 | 500 | 60 | $-60$ | 60 |
| CRC070 | Seiga | 616415 | 2493593 | 500 | 240 | $-61$ | 51 |
| CRC071 | Seiga | 616500 | 2493464 | 500 | 60 | $-60$ | 30 |
| CRC072 | Seiga | 616427 | 2493424 | 500 | 65 | $-60$ | 30 |
| CRC073 | Seiga | 616450 | 2493434 | 500 | 65 | $-60$ | 30 |
| CRC074 | Seiga | 616466 | 2493442 | 500 | 65 | $-60$ | 30 |
| CRC075 | Seiga | 616483 | 2493451 | 500 | 65 | $-60$ | 30 |
| CRC076 | Seiga | 616553 | 2493235 | 500 | 60 | $-60$ | 30 |
| CRC077 | Seiga | 616573 | 2493244 | 500 | 60 | $-60$ | 30 |
| CRC078 | Seiga | 616588 | 2493251 | 500 | 60 | $-60$ | 30 |
| CRC079 | Seiga | 616611 | 2493259 | 500 | 60 | $-60$ | 30 |
| CRC080 | Seiga | 616623 | 2493268 | 500 | 60 | $-60$ | 30 |
| CRC081 | Seiga | 616640 | 2493273 | 500 | 60 | $-60$ | 21 |
| CRC082 | Seiga | 616956 | 2492846 | 500 | 60 | $-60$ | 21 |
| CRC083 | Seiga | 616974 | 2492853 | 500 | 60 | $-60$ | 21 |
| CRC084 | Seiga | 616993 | 2492863 | 500 | 60 | $-60$ | 21 |
| CRC085 | Seiga | 617010 | 2492871 | 500 | 60 | $-60$ | 21 |
| CRC086 | Seiga | 617025 | 2492878 | 500 | 60 | $-60$ | 21 |
| CRC087 | Seiga | 617046 | 2492887 | 500 | 60 | $-60$ | 21 |
| CRC088 | Seiga | 617063 | 2492897 | 500 | 60 | $-60$ | 21 |
| CRC089 | Seiga | 615576 | 2494739 | 500 | 60 | $-60$ | 21 |
| CRC090 | Seiga | 615563 | 2494732 | 500 | 60 | $-60$ | 30 |
| CRC091 | Seiga | 615629 | 2494650 | 500 | 60 | $-60$ | 30 |
| CRC092 | Seiga | 615659 | 2494667 | 500 | 60 | $-60$ | 18 |
| CRC093 | Seiga | 615684 | 2494676 | 500 | 60 | -60 | 15 |
| CRC094 | Seiga | 615708 | 2494639 | 500 | 60 | $-60$ | 15 |
| CRC095 | Seiga | 615737 | 2494509 | 500 | 65 | $-60$ | 21 |
| CRC096 | Seiga | 615773 | 2494527 | 500 | 60 | $-60$ | 21 |
| CRC097 | Seiga | 615809 | 2494548 | 500 | 60 | $-60$ | 21 |
| CRC098 | Seiga | 615842 | 2494573 | 500 | 60 | $-60$ | 15 |
| CRC099 | Seiga | 615829 | 2494347 | 500 | 60 | $-60$ | 39 |
| CRC100 | Seiga | 615853 | 2494359 | 500 | 65 | $-60$ | 39 |
|---|---|---|---|---|---|---|---|
| CRC101 | Seiga | 615868 | 2494366 | 500 | 60 | $-60$ | 39 |
| CRC102 | Seiga | 615871 | 2494310 | 500 | 60 | $-60$ | 90 |
| CRC103 | Seiga | 615944 | 2494259 | 500 | 60 | $-60$ | 60 |
| GRC013 | Garayat | 538586 | 2496524 | 500 | 90 | $-60$ | 90 |
| GRC014 | Garayat | 538606 | 2496404 | 500 | 80 | $-60$ | 81 |
| GRC015 | Garayat | 538648 | 2496333 | 500 | 80 | $-60$ | 90 |
| GRC016 | Garayat | 538661 | 2496243 | 500 | 75 | $-60$ | 66 |
| GRC017 | Garayat | 538613 | 2496524 | 500 | 90 | $-60$ | 60 |
| GRC018 | Garayat | 538558 | 2496522 | 500 | 90 | -60 | 60 |
| GRC019 | Garayat | 538657 | 2496105 | 500 | 80 | $-60$ | 69 |
| GRC020 | Garayat | 538728 | 2496059 | 500 | 235 | $-60$ | 60 |
| SRC041 | Shashoba | 621990 | 2491338 | 500 | 245 | $-60$ | 30 |
| SRC042 | Shashoba | 621888 | 2491304 | 500 | 240 | $-60$ | 39 |
| SRC043 | Shashoba | 621873 | 2491294 | 500 | 240 | $-60$ | 39 |
| SRC044 | Shashoba | 621942 | 2491131 | 500 | 235 | $-60$ | 39 |
| SRC045 | Shashoba | 621928 | 2491122 | 500 | 235 | -60 | 39 |
| SRC046 | Shashoba | 621910 | 2491105 | 500 | 235 | $-60$ | 39 |
| SRC047 | Shashoba | 621899 | 2491092 | 500 | 230 | $-60$ | 39 |
| SRC048 | Shashoba | 621849 | 2491401 | 500 | 55 | $-60$ | 60 |
| SRC049 | Shashoba | 621874 | 2491427 | 500 | 55 | $-60$ | 60 |
| SRC050 | Shashoba | 621869 | 2491471 | 500 | 80 | $-60$ | 81 |
| SRC051 | Shashoba | 621635 | 2491507 | 500 | 260 | $-60$ | 39 |
| SRC052 | Shashoba | 621608 | 2491510 | 500 | 265 | $-60$ | 39 |
| SRC053 | Shashoba | 621590 | 2491506 | 500 | 265 | $-60$ | 39 |
| SRC054 | Shashoba | 621617 | 2491619 | 500 | 265 | $-60$ | 39 |
| SRC055 | Shashoba | 621599 | 2491616 | 500 | 265 | $-60$ | 39 |
| SRC056 | Shashoba | 621582 | 2491610 | 500 | 265 | $-60$ | 39 |
| SRC057 | Shashoba | 621560 | 2491610 | 500 | 265 | $-60$ | 39 |
A Resource estimation methodology and classification is consistent, unless specifically stated to the contrary, with the Australasian Code for Reporting of Exploration Results, Identified Mineral Resources and Ore Reserves and included Guidelines to the Reporting of Identified Mineral Resources and Ore Reserves (Code) as per the Joint Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Australian Mining Industry Council (JORC) and dated December, 2004.