From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Mon Jan 11 2010 - 07:22:21 EST
Encouraging Eritrean geochemical results
Mon, 11 Jan 2010 10:26:54 EST
Jan 10, 2010 (Al-Bawaba via COMTEX) --
During November 2009, Gippsland Limited [ASX: GIP, DB: GIX] completed a
reconnaissance drainage geochemical survey from within the three Prospecting
Licences ('PLs') the Company holds in Eritrea (Adobha Project). A total of
eleven Thematic Mapper (TM) alteration targets were 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 (>65 ppm), with the highest being 193 ppm. The copper anomaly is
closely associated with an intense zone of argillic alteration measuring 6.4
x 1.4 km. Anomalous, but non-coincident gold and copper values were also
recorded from the target area. Rock types within the anomaly include felsic
volcanics, quartz-chlorite-sericite schist and chloritic lapilli tuff, all
of which are known to be frequently associated with volcanogenic massive
sulphide VMS deposits. - 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. These two samples located 1 km apart
drain from a strong zone of argillic alteration measuring 1.5 x 0.4 km. Two
rock-chip samples from the same area returned 0.287 and 0.210 g/t Au. The
presence of widespread quartz-chlorite-sericite-schist containing pyrite
makes this anomaly of particular interest. Gippsland Directors are greatly
encouraged by the results of this first pass widely spaced sampling
programme which will now be followed up by infill drainage sampling to
determine the source of the anomalous gold, copper, and zinc values. This
fieldwork will also involve a rock chip sampling programme and geological
mapping. 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 Bisha
deposit was selected as it represents a VMS deposit of the type that can be
expected to occur in the area of interest. Zara (Kola) was selected as it
represents a structurally controlled gold deposit located in the southern
part of the area of interest. 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. 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.(C) 2010 Al Bawaba
(www.albawaba.com)
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