Drilling delay over

Several weeks of delays caused by the loss of a drilling rig to another contract are....

  Several weeks of delays caused by the loss of a drilling rig to another contract are finally over for Talisman Mining Ltd. The company announced yesterday that it had now recommenced reconnaissance exploration drilling at its Wonmunna Project, 70km northwest on Newman in WA.Talisman Managing Director Steven Elliott said that – as reported to the ASX in early November – the majority of this drilling will be completed as exploratory reconnaissance on pre-existing tracks, although some follow up infill drilling will be completed adjacent to drillholes that reported significant iron intercepts in the first half of the program.He said: “It is envisaged that this drilling program will now be completed in early January, 2008, with full results available by early February. A second phase drilling program will commence in January, immediately upon termination of this first drilling program. This second phase will involve further exploratory drilling and commencement of resource drilling.”The company also provided an update on its Yamada project in the northern Earaheedy Basin, approximately 160km north of the WA township of Wiluna, as results from channel sampling expected in early 2008.The Yamada project comprises a single Exploration Licence (E69/2460) under application by Talisman. The tenement encompasses sections of the Proterozoic Frere Formation, a sedimentary unit which contains thick, strike continuous iron formations.Elliott said: “The project area contains several thick outcrops of iron formation up to 2.5km in strike extent. Aeromagnetic data indicates that these iron formations may continue under shallow cover over strike distances of up to 18km within the tenement. There has been no previous iron ore exploration within the tenement area.”The Frere iron formations were the target of limited exploration for commercial iron ore deposits by several company’s in the late 1970s. Exploration at this time by Amax Exploration (Australia) Inc in the Miss Fairbairn Hills area immediately west of the Talisman tenement produced rock chip channel sample results to 75m at 62.6% iron.Limited follow up drilling produced a best result of 14m at 59.3% iron. The mineralisation at Miss Fairbairn Hills occurs as hematite – goethite enrichment produced as a result of weathering.Amax had concluded that whilst excellent thicknesses and grade are indicated from surface sampling, the depth of weathering had not been sufficient to produce significant ore-grade mineralisation at depth.Elliott said Talisman is of the view that significant enrichment may have occurred, to depth, in favourable structural situations such as adjacent to major faults.He added: “It is significant to note that in the Amax-explored Miss Fairbairn Hills area the iron formations exhibit a strong magnetic response, indicative of high magnetite contents, whilst in the Yamada project area the iron formations have a significantly subdued magnetic response, possibly indicative of alteration of magnetite to hematite with associated iron enrichment.Talisman has commenced reconnaissance channel sampling of the available iron formation outcrops with results expected by early January, 2008. Reconnaissance drill evaluation will commence on grant of the tenement, probably in the latter half of 2008.According to Elliott: “A number of other companies are currently evaluating areas of the Earaheedy Basin, including immediately adjacent to the Yamada area, for commercial iron ore deposits. If this work, and that to be completed by Talisman, is successful, this may herald the development of a new World class iron ore province in which the company has a strategic position.”