Zamia Gold Mines hits new high grade molybdenum zone at Anthony

26 September 2010 | 04:10 Code : 20195 Geoscience events
Zamia Gold Mines (ASX: ZGM) has reported a 23-hole RC drilling programme has now....

Zamia Gold Mines (ASX: ZGM) has reported a 23-hole RC drilling programme has now been completed at the Anthony molybdenum discovery near Clermont in central Queensland, with a new high grade molybdenum (Mo) zone found in the south of discovery.The programme, which commenced in June 2010,  was designed to determine the lateral extent of the deposit, with a view to increasing the JORC-compliant resource which was announced on 6 April 2010.Latest assays confirm the high grade molybdenum core of the western zone and the resource estimation is to be updated.Reverse circulation (RC) drilling has been completed for two new deep diamond drill holes and there is potential to double the resource from the completed holes and the planned diamond drilling programme.Elevated copper (Cu) in some holes continues to support the target model for potential high grade porphyry Cu-Mo at depth.Assays for the first 14 holes (RC32 to RC45) were reported on 11 August, 2010.From the latest drilling (holes RC46 to RC54), continuous drill intersections included the following significant primary (sulphide) Mo results:- Hole 49: 150 metres at 795 parts per million (ppm) Mo including 9m at 1055 ppm Mo; 45m at 1027 ppm Mo; 9m at 1069ppm Mo; 27m at 1018m Mo- Hole 52: 108m at 571 ppm Mo including 15m at 1014 ppm Mo; 3m at 2510 ppm Mo; 3m at 953 ppm Mo- Hole 54: 118m at 549 ppm Mo including 9m at 1125 ppm Mo; 3m at 1285 ppm Mo; 3m at 1005 ppm Mo.In addition to these significant assays, there are also intersections containing greater than 1000 ppm Mo in the shallow oxide or transition zones in holes 47, 49, 51 and 54.Hole 49 was collared 12m to the northwest of hole RCD12 (drilled in 2008) to verify the high grade core of the western zone of the resource. Also, the results of holes RC51 to RC54 indicate a third high grade zone in the south of the Anthony discovery in addition to the previously identified western and eastern high grade zones.Of the 23 holes in the recent drilling programme, 17 have substantial sulphide Mo intersections above a 200 ppm Mo cut-off. These are expected to add substantially to the resource.Mo-bearing material above the 200 ppm cut-off grade is expected to be capable of significant upgrading, via cheap and simple beneficiation processes, prior to milling and flotation.Ken Maiden, executive chairman, said this would have the effect of reducing capital costs and increasing revenue, thereby adding significant economic benefits in any future mine development. Testwork on an improved beneficiation process is continuing.RC pre-collars have been drilled for the initial two deep diamond holes to target the depth extensions of the current western high grade Mo zone and to test the potential for increasing copper grades with depth in the Anthony system. Following the evaluation of these holes, it is proposed to drill further deep diamond holes to test the extent of all high grade zones.Elevated concentrations of copper (>400 ppm Cu) have occurred in 11 holes, at the margins of the high grade Mo zones, where copper typically occurs as chalcopyrite within mineralised quartz-molybdenite [MoS2] stockwork veins. In the latest holes (RC46 to RC54), elevated copper assays over continuous intersections included:- Hole 46: 57-63m: 9m at 435 ppm Cu- Hole 53: 246-252m EOH (end of hole): 6m at 1061 ppm Cu, 10.7ppm Ag- Hole 54: 132-135m: 3m at 495 ppm Cu.These concentrations are not sufficient for an economic copper deposit, but the observed mineralisation indicates potential for the discovery of a porphyry-type copper system at depth associated with additional high grade Mo. Over 50% of current world molybdenum production is sourced from Cu-Mo mines, so it would not be unusual for the Anthony Mo deposit to have associated copper mineralisation.Following the completion of the current RC drilling, Zamia plans to produce an updated independent resource estimate for Anthony in September based on latest RC drilling results (holes RC32 to RC54).Commencing early September, the company will drill two deep diamond holes to test for depth extensions of the Anthony resource.Based on assessment of all information, Zamia will carry out additional deep diamond drilling and further drilling of the wider area around Anthony and update the resource estimate as may be required.Zamia will then drill shallow gold targets at the Frankfield Hill and West Lucky Break prospects in the company’s Mazeppa tenement (EPM 14790) and drill a gold and platinum group element (PGE) target in its Mount Rolfe tenement (EPM 14792).

Your Comment :