🕐24.01.11 - 08:27 Uhr
Vatukoula Gold Mines (AIM: VGM) Exploration Update
See below the drilling update and 2011 exploration programme for
Vatukoula Gold Mines (AIM: VGM).
Best,
Philippe
24 January 2011
Vatukoula Gold Mines plc
("Vatukoula" or "the Company")
Surface Drilling Update and 2011 Gold Exploration Programme
Vatukoula Gold Mines Plc, the AIM listed (AIM:VGM) gold producer, is
pleased to announce the commencement of the 2011 gold exploration and
drilling programme at the Companys 100% owned Vatukoula Gold Mine in
Fiji.
Key Points
* Three exploration campaigns planned for 2011, with a planned
drilling total of 35,000m
* The Programme is targeting;
o extension to existing as well as new surface oxide mineralisation,
o underground high grade ore bodies adjacent to existing resources and
o previously drilled exploration targets on the Companys Special
Prospecting Licenses
* Surface oxide drilling has commenced with 773m from 8 holes
completed as of 13th January 2011
* Exploration activity on these deeper U/G targets is due to
start mid- February 2011.
The drill and associated back up equipment
arrived in Fiji on 17th January 2011.
* First drill results expected in calendar Q2 2011
David Paxton, CEO of Vatukoula Gold Mines, commented:
"The new exploration programme is an essential part of our growth
strategy at the Vatukoula Gold Mine.
The exploration results will guide
us in regards to the potential for expansion of the current operations
and will also provide the mine geologists with valuable information on
the Vatukoula orebody.
The combination of extensive historical mining data, minimal exploration
over the last 20 years, and modern exploration techniques provides an
exceptional opportunity for Vatukoula to make another discovery of
economic mineralisation in the Tavua Caldera.
Exploration will be undertaken in an area adjacent to our world class
mine in an area that has historically shown exciting potential.
I
remain up-beat with our future exploration programme and look forward to
updating the market in due course."
Exploration Update
As announced on 20 September 2010, several exploration targets had been
identified from the re-assessment of historical data coupled with recent
surface mapping and sampling activities.
(For a graphic representation
of the exploration targets follow the link:
http://62.193.238.61/blueprinttv/vatukoula/2011-01-20_video_01.php
).
Based on these targets the Company has designed three drilling
programmes to run simultaneously across our 100% owned Mining and
Special Prospecting Licenses ("SPL").
1.
Surface Oxide Exploration
The objective of the near surface exploration programme is to identify
ore both within the mining lease and on the SPLs that may be suitable
for open pit mining operations and milling using an oxide circuit.
The programme initially consists of targeting two areas within the
current mining lease and one within the SPLs.
These targets will be
drilled at 100m spacing at an average depth of 80 - 90 metres.
Dependant
on the results from the initial programme further drilling will be
carried out on 50m then 25 m spacing.
We aim to drill up to 15,000m in
2011.
The Reverse Circulation (RC) exploration drilling program commenced in
December 2010.
As of 13th January 2011, 8 holes had been completed for
a total of 773m with maximum depth being 100m.
The first drill results
for these holes are expected in the second calendar quarter of 2011.
Should the Company be successful in identifying sufficient mineral
reserves from this drilling programme, it will look to supplement its
target production of 100,000 ounces of gold per annum with material from
these deposits.
2.
Mine Envelope Exploration
Underground exploration will be undertaken to investigate mineralisation
along strike and down dip of existing ore bodies.
A number of
exploration targets have been identified within the mine envelope that
may have the potential to:
a) increase resources;
b) convert resources to reserves;
c) identify high grade areas; and
d) identify new economic structures.
The main targets of this drilling programme will be the Prince William
and Prince Dolphin ore bodies (20.7 g/t Au, 9.1 g/t Au measured resource
grades (August 2009), respectively) and the Matanagata ore body which
has a measured resource grade (August 2009) of 21g/t.
The Company anticipates that this year the programme will involve up to
10,000m of drilling, which will be carried out by utilising currently
owned rigs.
Some surface exploration drilling will be considered at a
later date.
3.
Special Prospecting Licence Exploration
A number of exploration targets have been identified from previous
exploration within the Prospecting leases.
An area approximately 4 km
north of the current Vatukoula mine has been targeted initially based on
previous exploration drilling, and shallow mining in the 1940s.
Previous exploration in the area in the early 1990s saw results
including intercepts of 1m at 95.4 g/t and 17m at 30.08 g/t.
In the
1960s an exploration hole was drilled in this area and intersected
three separate quartz horizons with significant gold mineralisation at
depths of 525, 533, and 547 meters.
The initial drilling programme will focus on these targets and will be
drilled by a surface diamond drill rig purchased for this programme.
The
Company expects that the initial programme will consist of 12 to 14
holes of approximately 700m to 800m in depth.
The diamond drilling rig and associated equipment has now arrived in
Fiji and is expected to commence drilling in February 2011.
Qualified Person Kiran Morzaria B.Eng.
(ACSM), MBA, has reviewed and
approved the information contained in this announcement.
Kiran holds a
Bachelor of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Kiran is the
Finance Director of VGM.
Enquiries
Vatukoula Gold Mines plc
David Paxton + 44 20
7440 0643
Kiran Morzaria
W.H.
Ireland Limited
James Joyce + 44 20
7220 1666
Pelham Bell Pottinger
Charles Vivian
+44 (0)20 7861 3232
Philippe Polman +44 (0)7841
672 830
Philippe Polman
Account Manager
Direct line: +44(0)20 7861 3921
Mobile: +44 (0)7841 672 830
Pelham Bell Pottinger
5th Floor, Holborn Gate, 330 High Holborn, London, WC1V 7QD
Tel: +44 (0)20 7861 3232 Fax: +44 (0)20 7861 3233
www.pelhambellpottinger.co.uk
PLEASE NOTE OUR NEW OFFICE
ADDRESS & TELEPHONE NUMBERS AS OF MONDAY 24 MAY 2010
.......................................
A CarbonNeutral(r) company
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