See below todays exploration update from Vatukoula Gold Mines.
Best,
Philippe
Vatukoula Gold Mines plc
(VGM or the Company)
New Ore Zone Discovery at Vatukoula Gold Mine
Vatukoula Gold Mines Plc, the AIM listed (AIM:VGM) gold producer, is
pleased to report the discovery of Baron dEste, a new high grade ore
zone at the Companys 100% owned Vatukoula Gold Mine in Fiji.
Highlights:
* Drilling has intersected three new high-grade mineralised
structures at Vatukoula which form part of the new Baron dEste ore
zone.
* This is the first new discovery of a new high-grade ore zone
at Vatukoula since the discovery of the Prince William ore zone in the
1980s.
* Significant composite intersections include:
124.7 grams of gold per tonne over 0.46 metres;
33.6 grams of gold per tonne over 2.86 metres;
25.46 grams of gold per tonne over 1.07 metres; and
39 grams of gold per tonne over 0.48 metres.
* The ore zone has been intersected between 300m to 700m below
surface (11 to 23 levels).
* The new ore zone is open along strike and down dip.
* Drilling continues to further define the extent of this new
discovery.
* The Baron dEste ore zone sits approximately 300m north of the
current mine workings.
David Paxton, CEO of Vatukoula Gold Mines, commented:
"The discovery of the Baron dEste ore zone is highly encouraging as it
represents the first new high grade ore zone discovery at our Vatukoula
site for over 20 years.
The discovery also substantiates our belief that
our Fiji operation has excellent potential to expand its current
resource and reserve base with high grade ore zones.
Because of the ease
of access of this new ore zone, we believe this discovery will assist in
increasing our long-term production profile."
Exploration Update
On 10th May 2011 VGM announced the first results from its 2011
exploration programme targeting three main areas; extensions to existing
as well as new surface oxide mineralisation, underground high grade ore
bodies within the mine envelope and new exploration targets contained
within current exploration licenses.
A full update on the progress made
during the year on these programmes will be provided by the end of 2011.
New Ore Zone Discovery
The Baron dEste discovery is contained within the current Mining Leases
and is approximately 300 metres north of current mine workings.
The ore zone has been drilled by three holes which have intersected up
to four mineralised structures.
Three of these structures are
sub-vertical which have been intersected between 300m and 700m below
surface (11 and 23 level), and the fourth is a horizontal structure
approximately 700 m below surface.
The vertical structures are roughly orientated in a north-east
south-west direction consistent with some of the local and regional
controls.
The horizontal structure is thought to be a faulted block of a
flatmake structure which is typically mined at Vatukoula.
The three holes drilled targeting this ore zone were completed between
the beginning of August 2011 and the end of September 2011 and consisted
of a total of 3,116 metres.
All three holes intersected mineralised
structures, with the most significant composite intersections being
124.7 grams of gold per tonne over 0.46 metres; 33.6 grams of gold per
tonne over 2.86 metres; 25.46 grams of gold per tonne over 1.07 metres
and 39 grams of gold per tonne over 0.48 metres.
Summary of composite mineralised intersections:
Hole Number (GSE)
Co-ordinates
Azimuth
Angle
Advance
Composite Mineralised Intersections
Au (g/t)
Width (m)
Ore Body
East
North
RL
From
To
173A
7957
11461
10084
244.3
-60.4
916
620.62
625.80
4.45
5.49
DBX-5
844.87
845.33
124.73
0.46
P-1
899.50
900.09
57.20
0.59
DBX-7
173B
1906228
3944238
10080
235.5
-66.7
1100
648.00
648.25
25.45
0.25
DBX-5
863.55
864.77
26.99
0.42
P-1
869.50
870.00
4.146
0.50
DBX-6
886.45
886.80
14.56
0.35
DBX-7
173C
1906228
3944238
10080
235.5
-66.7
1100
625.42
631.00
0.53
5.58
DBX-5
855.00
859.45
33.57
2.86
P-1
867.00
868.07
25.46
1.07
DBX-6
874.52
875.00
39.64
0.48
DBX-7
The new ore zone is contained within the Caldera which has not been the
primary source of flatmake mineralisation at Vatukoula.
Nonetheless our
mine geologists consider the mineralised intersections found during our
drilling programme to be consistent with those found within a typical
ore body at Vatukoula.
Exploration to further define and extend the mineralisation is on-going
with holes planned to explore the continuity of the structures towards
the caldera contact which forms the geological break between the Basalt
(mine area) and Caldera hosted Andesites.
For the year ending August 2012 we intend to focus our drilling
programme on Resource and Reserve definition, with some drilling being
assigned to an exploration programme within the mining lease.
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.
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
.......................................
A CarbonNeutral(r) company
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