Positive copper-nickel drilling results for Gippsland

Egypt focused resource developer Gippsland Ltd has announced encouraging....

  Egypt focused resource developer Gippsland Ltd has announced encouraging results from an RC drilling program completed at its Abu Swayel copper-nickel prospect located in Wadi Allaqi situated to the south-east of Aswan in Egypt.A program of thirteen holes totalling 776m of RC drilling was completed at Abu Swayel, testing ancient workings and a transient electromagnetic (TEM) conductor which was delineated by a TEM survey completed in August.The best results were obtained from holes ASRC004, 6 and 9 which were drilled below the ancient workings. Best results included: · 16m at 2.25% Cu, 0.64% Ni including 7m at 4.41% Cu, 1.17% Ni; · 18m at 1.55% Cu, 0.54% Ni including 5m at 5.25% Cu, 1.42% Ni; and· 18m at 0.96% Cu, 0.57% Ni including 4m at 2.73% Cu, 1.33% Ni.The results are consistent with some earlier sampling from a shaft and crosscut and some diamond drilling completed during the early 1960s. These results included 10m at 1.87% Cu and 1.53% Ni in a shaft and 8m at 4.11% Cu and 1.77% Ni from a crosscut off the shaft at the 22m level. The two holes drilled to test the TEM conductor contained minor sulphides (pyrite) in the drill cuttings and returned anomalous results but did not adequately explain the conductor.Two drill holes (ASRC011 & 012) drilled close to the TEM conductor intersected mineralisation down plunge from the ancient workings and confirmed the easterly dip of the mineralisation in the ancient workings located to the southeast. The easterly dip is contrary to the interpreted dip of the relatively low amplitude conductor which was modelled as having a westerly dip.Commenting on the results, Gippsland Executive Chairman said :" The results are most encouraging and a program of geological mapping, rock-chip sampling and ground magnetics will be completed to search for along-strike repetitions of the Abu Swayel Cu-Ni mineralisation."Gippsland is also developing the world class Abu Dabbab tantalum project in Egypt with a 10-year tantalum sale contract signed with German major HC Starck GmbH for the supply of 6 million pounds of tantalum pentoxide. The 40 million tonne project has a 20 year mine life, with production due to commence in 2010.