Adelaide, Oct 4, 2006 AEST (ABN Newswire) - Barra Resources Limited (ASX: BAR) is pleased to provide an update on recent and upcoming activities at its Burbanks Gold Project, Coolgardie Western Australia.
Follow-up down dip Diamond Drilling of Wahloo Shoot
Further gold mineralisation associated with the down dip extensions of Wahloo Shoot has been intersected. These holes were designed to upgrade inferred category resources to the indicated level prior to mine development. Significant results comprise:
2.4 metres grading 11.0 grams per tonne gold1.0 metres grading 20.8 grams per tonne gold7.0 metres grading 5.7 grams per tonne gold7.1 metres grading 3.9 grams per tonne gold10.1 metres grading 3.7 grams per tonne gold
This recent round of holes (BBUD037-BBUD050) were drilled from the south drill cuddy focused on the down dip projection of the Wahloo shoot between 4,900N and 5,000N approximately 25 metres below current mine development on the 330 level.
These new results confirm down dip continuity of the Wahloo Shoot and are in line with resource modelling and grade estimation, potentially adding valuable ounces to the existing mining reserve.
Diamond Drilling of Wahloo and Tailor Shoot extensions outside existing resource
Further drilling to test the Wahloo Shoot down dip outside the existing inferred resource boundary is currently underway. Drilling from the newly established west drill cuddy will commence soon to further test the Wahloo Shoot south along strike.
A new north drill cuddy is currently being established off the northern decline to facilitate the drilling of the down plunge extension of the Tailor Shoot outside existing resource boundaries. Drilling from this location will commence on the completion of the Wahloo Shoot south drilling in mid October. Tailor Shoot has an interpreted northerly plunge that may extend 150 metres vertically, joining up with historically mined high grade gold mineralisation.
Also to be tested will be the down plunge potential of the previously mined high grade Jesson and Hadfield reefs which produced in-excess of 200,000 ounces of gold. Previous surface Reverse Circulation and Diamond Drilling has intersected significant mineralisation in both reefs.
Burbanks Minesite
Strike drive development of the 330 level is well advanced on both the Wahloo and Tailor lodes with first stoping of the Tailor Shoot expected to commence in late October heralding the commencement of full production forecast at 25,000 tonnes per month. Achievable production rates will not be known until the current development phase is completed in December 2006. The Company will treat its next 15,000 tonne parcel of development ore through the Greenfields Mill late October.
Exercise of August 2006 Options
As announced previously, the Company received an overwhelming 97% of option holders choosing to exercise their August options, raising more than $4.6 million is working capital for the Company.
The Directors take this opportunity to thank those option holders for their vote of confidence in the Company and welcome them as shareholders.
Annual General Meeting
The 2006 Annual General Meeting of the Company will be held on Wednesday 22 November 2006 commencing at 11.00am at Level 31, Allendale Square, 77 St Georges Terrace, Perth. A notice of meeting will be distributed to shareholders in the coming 2-3 weeks.
Contact
Kevin Skinner
Senior Consultant
FIELD PUBLIC RELATIONS
231 South Road
MILE END SA 5031
Tel: (08) 8234 9555
Fax: (08) 8234 9566
Mob: 0414 822 631
kevin@fieldpr.com.au
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