Focus Minerals Ltd Stock Market Press Releases and Company Profile
Focus Minerals Limited (ASX:FML)
Focus Minerals Limited (ASX:FML)

Perth, April 1, 2009 AEST (ABN Newswire) - Focus Minerals Limited (ASX:FML) is pleased to provide an update on recent company activities, including interim results from the current milling campaign.

The Company is also pleased to report significant new high-grade gold intersections from drilling programs being undertaken at both the Perseverance and Empress Gold Deposits, located within the broader Tindals Mining Centre. The recent drilling - which confirms the continuity of mineralisation at depth at the Empress Deposit - enables Focus to begin to plan for the development of its third project, with feasibility planning now underway at Empress.

Current Milling Campaign Update

Focus is nearing the end of the seventh milling campaign since production began in April 2008. The current campaign started on 27 February 2009 and concluded this morning for a total of 33 milling days.

Focus is expecting to produce around ~8,800 ounces of gold from this current milling campaign, enabling the Company to continue to deliver into its hedge contracts (7,000 ounces) with the balance of ounces being sold into the spot market.

Following the conclusion of the current milling campaign deliveries the Company will have a further 19,378 ozs outstanding under existing hedge contracts.

The campaign has been remarkably successful however challenges were encountered in the final 10 days of the campaign. During this period ore with grades of greater than 8.0 g/t were continuously processed however higher than expected sulphur grades were encountered. High sulphur grades significantly affect recovery of the Perseverance ore, and in order to maintain recovery during these 10 days at greater than 90%, mill throughput was reduced by 20%.

The high sulphur levels experienced at the end of the campaign further highlights the benefits of moving from a toll treating approach, with discrete milling campaigns, to a continuous operation utilising Focus's own processing plant (i.e. Three Mile Hill). The re-commissioning of the Three Mile Hill plant is expected to provide Focus with a much more efficient and cost-effective means of blending the multiple ore sources from Focus' Coolgardie Operations.

The next milling campaign, Campaign 8, is due to commence early May 2009.

Recent Drilling Results from Perseverance

Recent drilling results from below the Perseverance deposit have confirmed the potential for structural repetition of Perseverance-style mineralisation at depth. A total of six (6) diamond holes of an eight hole programme have been completed to date, with the drilling encountering down-hole intersections 50-100m south and down the structural control of the known mineralisation at Perseverance. The best of these intersections included:

- 4.93m @ 31.66g/t;
- 5.01m @ 14.98g/t; and
- 1.47m @ 19.85g/t.

The drilling has further strengthened Focus' geological model for the Perseverance mineralisation - developed from exploration drilling, down-hole electromagnetic (DHEM) surveying and underground geological mapping The new zones are particularly encouraging as they have the potential to provide Focus with additional high-grade, relatively near-surface resources which can be easily and economically accessed via the existing Perseverance decline, given their proximity to the Company's current mining operations.

Down-hole electromagnetic (DHEM) surveys are planned to be conducted on two of the recently drilled holes as soon as the current drilling programme has been completed. This will assist in defining the size of the current mineralised zone and will also aid in more efficient targeting of future drilling.

225 South Development - High Grade Face Samples

Recent face sampling on the newly developed 225 South level has returned significant, high grade assay results that average greater than one ounce per tonne. Results include:

- Face 26 - 49.66 g/t
- Face 28 - 58.01 g/t
- Face 29 - 27.92 g/t
- Face 32 - 34.63 g/t

These recent face samples contain higher grades and widths of mineralisation than that seen in surrounding drill holes (PEGC0208 true width 1.37m @ 35.47g/t, PEXP0008 true width 1.47m @ 19.85gt). Now in development, these recent face samples from the 225 level have confirmed that the mineralisation is of much higher grade and width.

This indicates the potential for higher grade pods of mineralisation, which may be associated with linking structures running between the two main lodes, to occur in areas where grades from drilling are marginal. Further drilling is currently being carried out at depth and should enable a better understanding of the distribution of high-grade mineralisation in this area.

Excellent Results from Empress - Plans for Accelerated Development Underway The Empress Deposit forms part of the Tindals Mining Centre and is hosted by a mineralised diorite system. Historically, the Empress mine produced an average of 48,000t @ 5.44g/t (reconciled) per level, which equates to ~420 ounces per vertical metre. The 1120m level is the last level developed at Empress and produced 49,280t @ 4.38g/t.

Recent drilling results immediately below the Empress deposit have confirmed that mineralisation is open at depth.

The best of these intersections included:

- 6.44m @ 10.37g/t;
- 4.00m @ 8.25g/t; and
- 4.24m @ 5.28g/t.

Modelling of the Empress extension is underway with these latest results providing Focus with the confidence to undertake a study with the view to bringing the Empress deposit into production towards the end of 2009.

Importantly, only 50 metres of development is required to bring these additional levels into production which will be directly below established underground infrastructure. It is important to note that this material presently cannot be processed due to mill constraints, and thus it will form a separate source of feed as planned once the 3 Mile Hill Mill gets up and running.

Summary

These latest drilling results increase the potential of the Perseverance and Empress deposits to deliver additional high-grade resources; the latest results follow a recent 32% increase in pre-mine ore Reserves to 100,000 ounces, which in itself provided a substantial boost to the Perseverance mine life - which currently extends out to approximately two years.

"We view the definition and development of additional high-grade, easily accessible resources at Perseverance and Empress as central to both our short and long-term objectives for sustainable production," said Focus' Chief Executive Officer, Mr Campbell Baird.

"The results from the current extension drilling are highly encouraging and provide further evidence that the Perseverance ore body is open to the south, as our geological modelling had indicated and that the Empress ore body continues at depth.

"The exploration and mining team - under the guidance of our Exploration Manager Garry Adams and Mining Manager Clint Baker - is to be congratulated on their success' he added.

For the Full Company Update please see below;

http://www.abnnewswire.net/media/en/docs/60423-ASX-FML-442348.pdf

About Focus Minerals Ltd

Focus MineralsWith over 3.8Moz of Mineral Resource, Focus Minerals Limited (ASX:FML) has a highly strategic portfolio of assets across Australia's two leading gold producing districts – the Kalgoorlie/Coolgardie belt and Laverton – and the financial muscle to continue to unlock further potential for growth.

abnnewswire.com 


Contact

Campbell Baird, CEO
Focus Minerals Ltd
Tel: +61-8-9215-7888
Web: www.focusminerals.com.au



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