STRONG GOLD IN SOIL ANOMALY OUTLINED AT MARY HARRISON PROJECT HIGHLIGHTS
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1 National Stock Exchange of Australia Company Announcements Level 2, 117 Scott Street Newcastle NSW th January 2013 STRONG GOLD IN SOIL ANOMALY OUTLINED AT MARY HARRISON PROJECT HIGHLIGHTS 100m x 10m grid based soil sampling identifies a 1.1km long open ended gold in soil anomaly. 49 out of 247 samples returned >0.75g/t Au, peaking at 3.62g/t Au. Soil anomaly supports mineralised zone intersected in drilling. 300m long x 100m wide, >0.75g/t Au soil anomaly extending south of Louise Point resource essentially untested by drilling. Soil sampling is continuing for another 1.5km south along the trend. Rock chip sampling at the old Louise Point mine returns several high grade samples up to 19.5g/t Au. Precious Metals Investments (NSX: PMZ) is pleased to announce that results have been received from Phase 1 of a soil sampling program at the Mary Harrison gold project, located in in the famous Mother Lode gold belt in central California approximately 200km east of San Francisco. PMZ, through its wholly owned subsidiary Mineral Ranch Resources acquired the Mary Harrison project in mid Since then PMZ has delineated an Inferred Resource of approximately 1.8g/t (using 1.0g/t lower cut-off). In addition to the Resource, an Exploration Target # in the range from 6.0 to 20.0 Million tonnes at g/t gold has also been estimated at the project. # Readers are advised the potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to define Mineral Resources and that it is uncertain if further exploration will result in the determination of a Mineral Resource. The Resource and Exploration Target is based on drilling conducted by RTZ-Kennecott in the late 1980 s. PMZ has obtained and verified much of this data and constructed digital data sets. The Resource Estimate and Exploration Target assessment was conducted by independent consultants GeoRes.
2 SOIL SAMPLING The soil program was undertaken on 100m spaced lines with 10m sample spacing along the lines and covered 1.1km along strike and around 220m across strike. Samples were collected from 0.2m-0.5m below surface and represent in-situ weathered bedrock. Many rock fragments with identifiable mineralisation were observed in the soil samples. The results obtained reveal a strong gold in soil anomaly extending over much of the grid. The gold anomaly is generally defined by a 0.3g/t Au contour and is over 1km long and up to 140m wide. It remains open to the north and south. A contiguous higher tenor anomaly defined by a 0.75g/t Au contour is located in the central portion of the larger 0.3g/t anomaly. The plus 0.75g/t anomaly is approximately 600m long and 100m wide. Many samples in this zone returned values greater than 1g/t Au, peaking at 3.62g/t Au (see Figure 2). The northern portion of this zone was the focus of previous drilling by Kennecott and is where much of the existing Inferred Resource is located. The southern half of this anomaly was only tested by two Kennecott holes drilled from the same location. Both these holes intersected several zones from 3-15m wide with average grades exceeding 1.0g/t Au. Potential clearly exists to locate additional near surface resources beneath this soil anomaly. Importantly the soil sampling program provides confirmation as to the location and general tenor of mineralisation intersected in drilling by Kennecott, especially in and around areas where much of the current Inferred Resource is located. This is demonstrated on cross section 6600N (see Figure 3). The results from the soil sampling program also support the Exploration Target. ROCK CHIP SAMPLING During the soil program some reconnaissance geological mapping and rock chip sampling was also undertaken. A total of 74 samples have been collected. Rock chip sample results ranged from <0.005ppm Au up to 19.5g/t with 54% of samples exceeding 0.10g/t Au and 10% exceeding 1.00g/t Au. The samples tested a variety of structures and alteration types. The highest gold grades were encountered around the old Louise Point Mine located toward the northern end of the soil grid (see Figure 2). Here, northwest trending and cross cutting east-west zones are evident in historic surface excavations. The east-west quartz vein that was historically mined returned a sample grading 7.9g/t Au, while the stockwork zone that borders the vein on its southern wall returned 13.9g/t Au. The stockwork zone exposed at the NW end of the excavation area returned an assay of 19.5ppm Au, while the surrounding quartz veins are running between 0.07 and 1.23g/t Au. Much of the stockwork material sampled in the immediate vicinity returned values between 0.10 and 0.20g/t Au. The higher gold grades encountered around the Louise Point Mine occur across widths of several meters. These results are encouraging and indicate potential for additional resource in the area as this part of the property was not drill-tested by Kennecott.
3 Chief Geologist David Hobby commented: The soil sampling results provide further evidence that the Mary Harrison project hosts a relatively large gold mineralising system. The results also add support to the previously announced Resource Estimate and associated Exploration Target. We expect to complete the soil sampling program in the near term, and following interpretation of the results we anticipate that many additional drill targets will be delineated. NEXT STEPS PMZ will continue to evaluate the project. This will include: Continuation of soil sampling to the south and extension of some existing lines to the west. Rock chip sampling and geological mapping. Drill planning to target southern extensions of the Louise Point resource and test other targets. Please direct any queries regarding the content of this announcement to Charles Straw (CEO) on or charles@preciousmetalsinv.com.au Competent Person Declaration The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr David Hobby, consulting Chief Geologist to PMZ, who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Hobby 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 Australian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (The JORC Code). Mr Hobby consents to and has provided consent to the inclusion in this report of these matters based on the documentation in the form and in the context in which it appears. Competent Person Declaration (Mineral Resource and Exploration Target Statement) The information in this document that relates to Exploration Results, Mineral Resources and Ore Reserves, is based on information compiled by Mr Robin Rankin, who is a Member of The Australian Institute of Mining and Metallurgy (MAUSIMM) and registered as a Chartered Professional Geologist (CPGeo). Mr Rankin Principal Consulting Geologist and operator of the independent geological consultancy of GeoRes Pty Ltd. He 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 Australian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (The JORC Code). Mr Rankin consents to and has provided consent to the inclusion in this report of these matters based on the documentation in the form and in the context in which it appears.
4 Figure 1: Mary Harrison Location Map.
5 Figure 2: Location of Soil Samples.
6 Figure 3: Louise Point Cross Section 6600N.
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