Kalman Mineral Resource Update

Transcription

1 10 September 2008 The Manager Company Announcements Office stralian Stock Exchange Via Online Electronic Lodgement Kalman Mineral source Update The Directors are pleased to announce an updated mineral resource estimate for the Kalman copper-molybdenumrhenium-gold deposit situated 62 kilometres southeast of unt Isa within the Mt Isa Mineral Province of northwest Queensland. Highlights Updated mineral resource estimate contains 194,700 tonnes of copper, 30,400 tonnes of molybdenum, 2,326,300 ounces of rhenium and 294,900 ounces of gold An overall increase of 22 in tonnes and 27 in contained metal The higher grade molybdenum domain now estimated to contain 28,800 tonnes of molybdenum, 67,900 tonnes of copper, 2,326,300 ounces of rhenium and 108,500 ounces of gold at grades of 0.11, 0.26, 2.75 and 0.13 respectively High grade cuts have been made (for example 2.5 ) though hole K-106A intersected 23.4, within a broader zone of 1.33 Further potential high grade zones exist within drill holes below K-106A displaying zones of massive chalcopyrite. Actual assay results have not been received for these intersections and hence upside exists for the resource estimate based on existing drilling Introduction The Kalman deposit lies within the Mary Kathleen zone of the Eastern Succession of the unt Isa Inlier and is hosted by calc-silicate rocks of the Corella Formation. Mineralisation is located adjacent to, and near the intersection of a set of subparallel northeast trending widely spaced fractures and two northerly trending shear zones immediately adjacent and subparallel to the regional-scale Pilgrim Fault. Kalman represents an unusual style of intrusion-related hydrothermal coppermolybdenum-rhenium-gold mineralisation hosted by calc-silicate rocks comprised dominantly of alkali feldspar, actinolite and chlorite. Copper grades are consistently elevated, although variable, over broad widths, and molybdeniterhenium grades are often highly elevated over lesser widths. Mineral source Estimate The mineral resource has been drilled to date on a nominal 100 by 100 metre spacing, with some 100 by 50 metre in-fill drilling. The sub-vertical to steeply west dipping mineralisation commences at surface and extends over a strike length of 1,000 metres with an average width of approximately 90 metres (Figure 1). Mineralisation has been intersected up to 700 metres below surface, with the mineral resource reported separately for mineralisation modelled above the -100mRL level as potentially mineable by open pit methods and for mineralisation modelled below the -100mRL level as potentially mineable by underground methods. In general the mineralisation has been interpolated between drill holes, and has only been extrapolated 12.5 metres along strike and up to 100 metres down dip, in areas where deeper in-fill drilling has yet to be undertaken.

2 -2-10 September 2008 The mineral resource estimate is based on 74 drill holes to an average drill depth of 450 metres for a total of 33,318 metres of drilling. Of the 74 drill holes, 58 holes averaging 527 metres drill depth for a total of 30,583 metres have been completed by Kings and 16 holes averaging 171 metres drill depth for a total of 2,734 metres are historical drill holes. No trenching has been used for this mineral resource estimate. The mineral resource has all been categorised as an Inferred mineral resource, which continues to reflect the current drill hole spacing of a nominal 100 by 100 metres, combined with the use of some historical drilling in the near surface part of the deposit. The inferred resource remains open at depth (Figure 2), with some potential for along strike extensions. Infill drilling continues to confirm the continuity of the mineralisation. Two geological/grade domains have been modelled. A broader copper domain that averages approximately 90 metres in width, and an internal molybdenum domain within the copper domain that averages approximately 25 metres in width. The impact of weathering is yet to be fully tested, with no indications to date of any significant depletion or enrichment near surface. A breakdown by geological domain of the mineral resource estimate is shown in Table 1. Domain t-off Table 1 Kalman Inferred Mineral source Copper ,300 1, ,700 lybdenum ,000 27,300 2,232, ,300 Open Pit ,300 28,800 2,232, ,000 Copper , ,700 lybdenum ,900 1,500 93,300 6,200 Underground ,400 1,600 93,300 35,900 Total ,700 30,400 2,326, ,900 Notes to Accompany Mineral source Estimate: 1. Geological modelling and data acquisition was undertaken by Mr Trevor Leahey who is a consultant to Kings Minerals 2. Block model with grade estimate prepared by Mr Rob Stewart who is a full-time employee of Kings Minerals 3. The mineral resource estimate is based on 74 drill holes to an average depth of 450 metres for a total of 33,318 metres of drilling. Of the 74 drill holes, 58 holes averaging 527 metres depth for a total of 30,583 metres have been completed by Kings and 16 holes averaging 171 metres depth for a total of 2,734 metres are historical. The resource has been drilled on a nominal 100 x 100 metre spacing 4. Gold assays by 30 gram fire assay with AAS finish, molybdenum, rhenium and copper assays by multi-acid digestion with AAS or ICP-AES finish; all assays undertaken by ALS Chemex, Townsville, Queensland 5. In-situ bulk density of 2.80 t/m 3 based on 4,570 measurements 6. A geological block model with block sizes of 10m x 10m x 10m was constructed. A selective mining scenario has been assumed 7.,, and grades were estimated by inverse distance within parent blocks constrained within 2 geological domains, with a minimum of 6 samples from at least 2 drill holes and a maximum of 25 samples per block estimate 8. High grade capping was applied to the two metre composites for both geological domains as 2.5, 1.5, 40 and QA/QC checks on sampling and assaying quality are satisfactory 10. The reported mineral resource estimate has been rounded to appropriate significant figures The Inferred Mineral sources have increased in both tonnage and contained metal from the previous mineral resource announced in December The overall tonnage has increased by 22 and the contained metal has increased by 13, 10 and 17 for copper, molybdenum, and gold respectively. With the addition of the 2.3 million ounces of rhenium the overall contained metal has increased by 27. Ownership The breakdown of the mineral resource by Exploration Permit for Minerals (EPM) is shown in Table 2 for the 100 owned EPM and in Table 3 for EPM where Kings is earning a 70 interest from Syndicated Minerals (SMD).

3 Domain t-off September 2008 Table 2 Kalman Mineral source Kings 100 (EPM 14232) Copper ,700 1,200-80,600 lybdenum ,300 8, ,200 40,800 Open Pit ,000 10, , ,500 Copper lybdenum Underground Total ,400 10, , ,900 Domain t-off Table 3 Kalman Mineral source Kings earning 70 (EPM 13870) Copper , ,100 lybdenum ,700 18,400 1,623,700 61,400 Open Pit ,300 18,800 1,623, ,500 Copper , ,300 lybdenum ,900 1,500 93,300 6,200 Underground ,000 1,600 93,300 35,500 Total ,400 20,400 1,717, ,000 Discussion The Inferred mineral resource category reflects the current drill hole spacing, combined with the use of historical drilling in the near surface part of the deposit. The historical drilling is planned to be replaced over time with drilling undertaken by Kings. Infill drilling with diamond core and reverse circulation drill rigs is currently being planned with a target drill hole spacing of a nominal 50 by 50 metres. With the addition of the significant amount of contained rhenium and the improving understanding of the controls on mineralisation, the Company is confident that the current mineral resource will provide a solid basis for ongoing pre-development studies on the Kalman copper-molybdenum-rhenium-gold deposit. Yours sincerely, KINGS MINERALS NL Dudley R Leitch Managing Director For further information, please contact Dudley Leitch or Greg Germon on or on our website The information in this report that relates to Exploration sults, Mineral sources or Ore serves is based on information compiled by Mr Rob Stewart who is a Member of the stralian Institute of Geoscientists. Mr Stewart is a full-time Employee of Kings Minerals NL 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 stralasian Code for porting of Exploration sults, Mineral sources and Ore serves. Mr Stewart consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

4 -4-10 September 2008 Figure 1: Drillhole Location Plan

5 -5- Figure 2: Kalman Deposit Longsection rrent source Outline 10 September 2008