Adelaide, Aug 25, 2006 (ABN Newswire) - Exploration drilling has commenced on one of the most under-explored potential gold and base metals areas in Australia - the Warburton-Egerton area in Western Australia near the border with South Australia.

The 4,000 metre Reverse Circulation (RC) and 1,000 metre diamond core drilling programs have been initiated by Adelaide-based precious and base metals explorer, Primary Resources Limited (PRZ) which listed on the ASX in March this year after a successful $3 million IPO.

"Our immediate focus within the Warburton Project Area (EL69/1564) is to drill up two of the local areas containing geochemical anomalies as well as diamond core a significant aeromagnetic signature within that area. We are specifically targeting iron oxide, copper, gold (IOCG) mineralisation," Primary Resources' General Manager, Mr Carl Dorsch, said today.

"Fifty targets have been identified to date across the acreage as part of $1.5 million already spent on the tenements ahead of the listing - so we know we are in an area highly prospective for copper, gold, uranium and nickel mineralisation," Mr Dorsch said.

"We plan to spend at least $1 million within the next 12 months proving up this 1,500 square kilometre area, part of an Aboriginal Reserve within the Western Musgrave Block.

"Access rights have been obtained and native title agreements are in place.

"This is very much unexplored territory but home to styles of mineralisation similar to systems around the Olympic Dam and Ernest Henry discoveries.

"It is potentially one of the most exciting multi-commodity provinces left on the Australian exploration landscape, is an area where BHP Billiton holds significant exploration ground and also hosts the Nebo and Wingellina nickel projects."

The maiden drilling campaign now commenced by Primary Resources is expected to be completed by mid-November with first results expected in late September.

A refurbished Vickers Keogh VK600 drill rig has been commissioned for the Warburton work.

Primary Resources' other assets include the 84 square kilometre Steere River gold-copper project in the southwest of Western Australia, in an area of proven mineralisation and near significant polymetallic deposits.

The Company also owns the alluvial rights in the Yandeyarra gold project, 100 kilometres southwest of Port Hedland, and historically, in one of the most sought after regions in Western Australia for alluvial and hard rock bearing deposits. It has recently successfully pegged further ground in its own right.

The Company's other asset is the 67 square kilometre Beete gold and nickel project in the Norsman greenbelt of southern Western Australia.