Jigalong looking prospective

  Hannans Reward Ltd has completed a review of its third phase of MMI soil sampling conducted last quarter and the associated magnetic interpretation. The review has identified a number of areas within the northern portion of the Jigalong Project that are prospective for gold and base metals mineralisation.The three phases of MMI soil sampling completed by Hannans have identified early stage targets prospective for gold, lead, zinc and uranium mineralisation. Hannans Managing Director Damian Hicks said: “In that regard, MMI has been useful as an early stage exploration tool to ‘screen’ the more than 1000sqkm Jigalong project area, to focus future exploration resources.“The aeromagnetic interpretation of the northern portion of the project area, completed by Bruce Craven of Southern Geoscience Consultants has identified a number of conceptual targets with the potential for gold mineralisation.“Some of these targets are coincident with areas identified separately by the MMI and therefore provide encouragement for future exploration.”Field verification is the next stage of exploration planned, followed by an extensive reconnaissance aircore drilling programme. These programmes will assist in understanding the geology in more detail whilst also enabling more focused future drilling programmes and airborne geophysical surveys. The reconnaissance drilling will be carried out within both exploration license E52/1812 and E52/1813 (total area approx. 360sqkm). Subject to receiving Traditional Owner and Government approvals, reconnaissance drilling will be scheduled for the next field season in the fourth Quarter.A magnetic interpretation of the southern portion of the Jigalong Project is anticipated to be received during the forth Quarter and will also provide focus for exploration to be run in parallel with the northern area.Hicks added: “The Jigalong project has long term potential to host a gold and or base metals deposit. It must be remembered that the work being carried out by Hannans is the first comprehensive exploration study focused on gold and base metals within what is a remote and under-explored area of Western Australia.“It’s a matter of the Hannans exploration team compiling, in a systematic and logical fashion, all of the basic geological information required to make a thorough assessment of the Project. This process may take a number of years. At any stage throughout this process it remains feasible that a significant minerals discovery could be made. It’s in this discovery phase that Hannans shareholders retain greatest leverage to exploration success.” The Jigalong Project is the subject of a Memorandum of Understanding between Hannans Reward Ltd and Jigalong Community Inc dated 20 October 20, 2003. A substantive agreement covering the terms in the MOU has not yet been signed by either party. The principal terms of the MOU are that it is an equal joint venture with both parties required to contribute to exploration expenditure or be subject to dilution. The Jigalong Project tenements are registered in the name of Errawarra Pty Ltd, currently a wholly owned subsidiary of Hannans Reward Ltd.