From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Wed Jan 06 2010 - 05:45:22 EST
Gippsland announces encouraging results from geochemical survey in Eritrea
company news image
Wednesday, January 06, 2010
Australian based international resource company Gippsland (ASX: GIP) has
unveiled promising results from a reconnaissance drainage geochemical survey
from within the three Prospecting Licences in Eritrea.
The news saw shares in Gippsland increase 9.4% to 7c during the afternoon
trade.
The survey saw a total of eleven Thematic Mapper alteration targets sampled
by collecting 196 drainage samples associated with zones of argillic
alteration and favourable host lithologies.
Anomalous results for gold, copper and zinc were recorded from all of the
three 100 km2 PLs.
TM target E26 (411400E/1920400N) located within the northern Afah PL yielded
a coherent copper anomaly 2.8 km long with six samples containing anomalous
copper values, with the highest being 193 ppm.
A low order but coincident gold, copper and zinc anomaly was identified at
the E21 target (404800E/1905000N) within the central Merba West PL. The
close association of this anomaly with the TM alteration target, favourable
geology and low sample density make this a priority for further sampling.
TM target E14 (403700E/1888100N) located within the Rabae Tahat North PL
yielded the highest gold values with two samples containing 1.1 and 3.7 g/t.
Gippsland chief executive Jack Telford said the company was greatly
encouraged by the results of the first pass widely spaced sampling
programme.
Infill drainage sampling will follow to determine the source of the
anomalous gold, copper, and zinc values.
The three PLs cover 300 km2 of ground that is prospective for both VMS
mineralisation and structurally controlled gold mineralisation.
The PLs were selected following an interpretation of Thematic Mapper (TM)
satellite data of a large part of northern Eritrea. During this study, the
Bisha and Zara (Koka) mineral deposit areas were used as type examples.
The three PLs are located in a geological setting similar to the Bisha
gold-base metal deposit located some 174 km to the south that contains 1.44
Moz Au, 0.39 Mt Cu and 0.499 Mt Zn. The structural setting of the area
covered by the PLs is also similar to that found at the 0.94 Moz Zara (Koka)
gold project located along strike some 65 km to the south.
"As a result of the above results, Gippsland Directors have unanimously
agreed to make application for a further three 100 km2 Prospecting Licenses
in the Adobha region," Mr Telford said.
"If successful, the additional licences will double the Company's holdings
in Eritrea.
"The Directors believe that Gippsland's first-mover advantage in this highly
prospective province improves the likelihood of identifying substantial gold
and copper deposits similar to those situated on strike to the south of the
Company's PLs, and elsewhere in the Arabian-Nubian Shield."
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