Terramin Australia Confirms Large Silver-Lead-Zinc Deposit with New Drilling

Adelaide, Apr 26, 2006 (ABN Newswire) - Significant drill results have confirmed that a large lead, silver and zinc deposit west of Port Augusta on South Australia's Eyre Peninsula, is Broken Hill-style mineralisation.

Terramin Australia Ltd (ASX: TZN) - which is developing the Menninnie base metals project in joint venture with Zinifex Australia Limited - announced today that new drilling results had significantly enhanced the prospects of a large resource at the deposit.

Terramin's Exploration Manager, Dr John Parker, said the latest drilling, when combined with numerous other Pb-Zn intersections over a 400m strike length, had delineated "a substantial body of Broken Hill-style mineralisation in Menninnie Central".

"Intersections of 19 metres of high grade zinc (13.2% Pb+Zn) and 56 metres of low grade zinc underscore the potential for a substantial resource at Menninnie," Dr Parker said.

Terramin's Executive Chairman, Dr Kevin Moriarty, added: "Recent diamond drilling of our Menninnie Central zone has confirmed that the project, like Broken Hill, has a complex shape related to folding of the host rock sequence.

"Detailed structural analysis of old and recent drill core by company geologists has identified the regional structure and mapped the shape of the mineralisation envelope," he said.

"In testing this model, we have recently intersected multiple lenses of high-grade mineralisation in drill holes near other intersections with good assays.

"This is important because the mineralisation is shown to be thick, continuous and folded," DR Moriarty said.,

"The latest drill successes have raised our confidence in establishing an Inferred Resource during the current round of drilling over the 400m of strike length for Menninnie Central.
"Given that the strike length of the target magnetic anomaly is 3.5km, there is potential for a large total resource or series of individual high grade deposits," he said.

The Menninnie project is a joint venture with Zinifex Australia under which Zinifex can earn up to a 70% share in the project with an outlay of up to $8 million by 2010.