Encouraging gold results at Mt Ringwood

Australasia Gold has received encouraging results from its first air core drilling....

  Australasia Gold has received encouraging results from its first air core drilling geochemical survey at Mt Ringwood, which is located in the Pine Creek region of the Northern Territory.Australasia Gold proposed that broad alluvial river valleys represent a highly prospective, but substantially under-explored portion of the gold-rich Pine Creek region. Results from the company’s first test of this concept have provided early support for the theory. Australasia Gold is now planning follow-up drilling for as early as practicable during the next dry season, probably commencing in the second quarter of 2008. In the initial program, two previously unexplored targets identified by their structural and stratigraphic setting were each tested by 2km-long drill traverses 800m apart, with each traverse comprising about 20 vertical holes, 50m apart. Australasia Gold said both lines testing the northern target returned significantly anomalous results, with values in weathered bedrock of gold greater than 20 parts per billion (ppb) and/or arsenic greater than 20 parts per million (ppm), accompanied by slightly elevated base metal and rare earth values. The host rocks of the anomaly and environs comprise schistose siltstone and greywacke, with widespread quartz veining, beneath 5-10m of alluvial cover. Australasia Gold said the peak values (4m @ 125 ppb gold and 4m @ 206 ppm arsenic) are sufficiently elevated to indicate the possible proximity of gold mineralisation. The company said that less intense peaks of similar metal assemblage occur to both east and west of the main anomaly Australasia Gold has made application for access to the land covering the northern extension of the anomaly, which is currently reserved from the operation of the Mining Act