Adelaide, Oct 15, 2006 (ABN Newswire) - The first diamond drill hole by at Tasman Resources Limited's (ASX: TAS) Parkinson Dam project, west of Port Augusta in South Australia has intersected epithermal mineralisation virtually the entire length of the 416 metre deep hole.

Tasman announced today that while it would be some weeks before assay results for the drill hole were available, epithermal quartz-sulphide veining was prominent throughout 400 metres of the hole.

These included a 4.4 metre intersection of strong epithermal quartz veining and base metal sulphides hosting a 1.5 metre zone of epithermal quartz containing up to 15-20% galena (visually estimated).

The hole is the first diamond drill hole to be drilled by Tasman within the initial focus area and follows the Company's recent RC drilling program across the broader Parkinson Dam project.

The initial diamond drill hole remains open at depth and the Company expects to drill at least another two diamond holes within the focus area at Parkinson Dam, a 100% owned epithermal gold-silver (lead-zinc) prospect 60km west of Port Augusta.

In a report to the ASX, Tasman said it was very encouraged by the sulphide-enriched epithermal veining in the hole, PD 30, and the considerable potential it highlights, particularly on the northern side of the prospect.

As previously announced, the current drilling program is designed to test a number of targets:

- Epithermal gold silver targets, based on follow up of mineralisation previously intersected by Tasman (e.g. 3m downhole at 3.4g/t Au and 80g/t Ag), newly located outcropping gold-silver mineralisation, calcrete anomalies and new geological interpretations,

- Highly anomalous, thick, lead-zinc (gold-silver) mineralisation intersected at the northern end of a previous drill traverse (e.g. 96m at 0.2% Pb and 27m at 0.4% Zn), and

- Outcropping uranium mineralisation (uraninite or uranium oxide) located close to an important regional unconformity or geological contact.

Tasman has completed the first core hole following up thick, highly anomalous, gold-silver (lead-zinc) mineralisation intersected previously. This hole (PD 30) is located 40m grid north from hole PD 27 (which intersected 96m at 0.2% Pb), and, like PD 27 is inclined at 60º south. PD 30 was drilled with reverse circulation (RC) percussion drilling to 51m depth, and completed with NQ diamond coring to 416.4m. No assays are available for the hole at this stage.

Almost the entire hole has intersected a very thick zone (at least 400m down hole) containing variable amounts of epithermal style quartz-sulphide veining, disseminated sulphides (mostly pyrite and base metal sulphides, predominantly galena or lead sulphide) and associated epithermal-style alteration (chlorite, sericite and carbonates). Overall, the grade of the mineralisation is expected to be generally similar to previous intersections.

However, a narrow but much stronger zone of sulphide-quartz mineralisation was intersected from 251.80m to 256.20m (4.4m downhole). This interval is estimated to contain several percent base metal sulphides, in particular galena, and is also expected to contain elevated gold and silver values. Within this interval a 1.5m zone was estimated (visually) to contain up to 15-20% galena. Weaker mineralisation continues below this sulphide-rich veining to the end of the hole.

Tasman stresses that at this stage no assays are available for this narrow interval nor the remainder of the hole. The true thickness of the mineralisation, its lateral extent, attitude or potential economic significance is not known. Assessment of these factors will require detailed analysis and further follow-up drilling, as the area remains open to the north, east, west and at depth. The interpreted target area covers at least 3km2 to the north of PD 30 and remains untested.

Tasman expects to have assay results for the narrow higher-grade zone of interest by late October, and for the rest of the hole by late November. Assays from 2000m of RC percussion drilling completed during September on other targets at Parkinson Dam will also be available in November.

Follow-up drilling has commenced with hole PD 31, located 230m southwest of PD 30, currently at 216m depth and displaying similar epithermal features to PD 30.