Newcrest makes gold discovery at Yilgangi
Very encouraging bedrock gold intercepts have been returned from first-pass reverse circulation drilling completed by Newcrest Mining subsidiary, Newcrest Operations, at the Hobbes prospect (Yilgangi).The Yilgangi project is located in the Eastern Goldfields of Western Australia, 120km northeast of Kalgoorlie. Better results from Newcrest drilling include 8m @ 2.30g/t Au, 8m @ 3.10g/t Au, and 20m @ 1.60g/t Au, including 4m @ 5.80g/t Au. Newcrest currently holds a 70 percent interest in the Yilgangi project, with the balance owned by Jindalee. RAB and aircore drilling previously undertaken at Hobbes outlined an extensive supergene gold anomaly beneath 30m to 40m of transported cover. The recent reverse circulation drilling program was designed to provide further information on both primary gold mineralisation and the geology at Hobbes. Composite sampling returned significant gold intercepts (average >0.1g/t Au over 4m) from all holes. The gold mineralisation is associated with altered mafic volcanics and porphyries with disseminated pyrite common. Newcrest is currently preparing a substantial follow up program, including diamond drilling and further aircore and reverse circulation drilling, which is expected to commence in late-September 2007.