Terrace Creek Drilling Cross Section
Brisbane, June 30, 2009 AEST (ABN Newswire) - The Directors of Republic Gold Limited (ASX:RAU) today announce that the Company has commenced drilling at its 100%-owned Tregoora Gold Project in Far North Queensland ("FNQ"). The drilling will provide sample for an expanded metallurgical testwork programme and also attempt to upgrade the mineral resources at Tregoora with first estimation of mineral resources at the Terrace Creek Prospect following this current drilling programme.
Key Points
- Drilling for the 2009 field season in Far North Queensland has commenced.
- Drilling for the planned programme will be done by Well Drilled Pty Limited, with drilling rates significantly lower than those paid in the 2008 drilling season.
- Diamond drilling will initially concentrate on supplying sample for an expanded metallurgical testwork programme in order that the Bankable Feasibility Study can be completed.
- Both RC and diamond drilling will then take place at the high grade Terrace Creek Prospect where previous intersections of 24m @ 4.78 g/t Au from 2m, including 8m @ 10.28 g/t Au, and 24m at 8.30 g/t Au were encountered - see diagram below.
- Costeaning at Terrace Creek this week, in preparation for the drilling, has shown strong clay alteration and north-south quartz veining near surface.
- Completion of the purchase of a series of mining leases at Tregoora has been delayed with the recent hospitalisation of the vendor.
In September 2008 the Company announced that it had signed an agreement with Mr Noel Adam to purchase his four mining leases at Tregoora. The sale process saw a need for the Company to submit a Plan of Operations to the EPA which then triggered a requirement by the EPA to recalculate the environmental bonds on the mining leases. Noel Adam has been ill for some time and has been hospitalised in recent weeks and this has seen the sale process delayed.
Republic's Managing Director; John Kelly, said: "The Company continues to moving ahead with its production plans for Far North Queensland. This year's drilling at Tregoora will enable the completion of metallurgical testwork necessary for the Bankable Feasibility Study and if successful will see an initial mineral resource at the high grade Terrace Creek Prospect. We're hoping Noel Adam has a speedy recovery so that the completion of the transaction with him can occur"
Contact
John Kelly
Managing Director
Tel: +61-418-577-759
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