Brisbane, Jan 25, 2008 AEST (ABN Newswire) - The Board of Republic Gold ("Republic" or the "Company")(ASX: RAU) today announces the results of December's drilling programme at the Tregoora Gold Project in Far North Queensland.
The drilling programme focussed on five target areas along the Retina Fault and has been successful in intersecting gold in three of the five areas. Intersections and historic mining along the Retina Fault is now known to cover a distance of 20 kilometres of strike demonstrating that this fault is a major regional mineralising structure.
Republic said that the strong results are very encouraging and confirmed the importance of the Tregoora region to the Company's Far North Queensland operations.
Republic today announces that planning for the next stage of drilling at Tregoora is well advanced and would commence shortly, weather permitting.
Managing Director of Republic Gold, Mr John Kelly said "The Company is embarking on a Feasibility Study for its gold projects in Far North Queensland. A number of these results will be followed up with additional drilling in order to achieve a drilling density that is sufficiently close to calculate new gold resources. "Many of these results would be economic at the current gold price in any projected operation at Tregoora for either oxide or sulphide mineralisation Heap leaching treatment of both oxide and sulphide mineralisation is expected to have an attendant low unit cost base. The results of this drilling are a strong step towards production on this very important tenement. Highly positive drilling results have been achieved by the Company after a significant exploration effort at Tregoora in the past three years, not only along the Retina Fault, but on other geological structures just a few kilometres to the east.
With over $9 million in the bank the Company is in a very strong position to accelerate development at Tregoora."
The drilling was done on five distinct prospects, which are from south to north; Retina North, Jack's Dam South, Terrace Creek, West Ridge and Red Dam. All of the drilling targeted geochemical anomalies, with some areas following up older drilling as well.
The figure below shows a plan of the drillhole locations at the various prospects north of the existing 156,000 ounce indicated and inferred gold resource at Tregoora, extending the mineralisation in a northerly direction to eight kilometres of strike length along the regionally significant Retina Fault.
Terrace Creek Prospect
The Terrace Creek Prospect is the site of the Company's initial drilling success in this area in 2006 with FN006 intersecting 12 metres at 2.88 g/t Au. The 2007 drilling programme saw seven new holes follow-up this success. The best hole in the new programme, FN014 (6 metres at 8.47 g/t Au), is 100 metres north of FN006. Hole FN031 was terminated prematurely and will require a diamond tail. The geology of this zone now demonstrates continuity for 300 metres and is open to the north and south. The 2008 drilling programme will in-fill drill this area to enable a resource to be calculated.
Retina North Prospect
Retina North sits at the southern end of the area drilled in 2007 amongst a nest of open pits mined in the 1990s and a series of holes drilled in the 1980s. The recent drilling has better defined the geology of this northerly region and it is now understood that there is a series of bedding-related splay faults off the main Retina Fault at which host mineralisation. This area now shows distinct structural similarities to the Fosterville Mine in Central Victoria, which is the Company's geological model for the region. Fosterville's historic and current resource inventory exceeds 3 million ounces of gold. There are two bedding-related splay faults at Retina North that will be in-fill drilled in the 2008 drilling programme to enable gold resources to be calculated in this area.
Red Dam Prospect
The Red Dam Prospect lies on a bedding splay fault at the northern end of the zone drilled. This geology consists of a basalt /chert contact zone on the splay fault. Eight holes were drilled and all intersected mineralisation, albeit generally narrow. Most holes have multiple intersections. The positive results and intriguing geology with similarities to a VMS (Volcanogenic Massive Sulphide) setting means that this area will see additional drilling in the 2008 drilling programme. If this geological setting proves to be correct this could have very positive implications for the base metals in the area.
Jack's Dam South and West Ridge Prospects
The Jack's Dam South and West Ridge Prospects returned no significant intersections and will be reviewed.
General
A total of 2,327 metres of RC drilling was completed in 32 holes in the programme. Only seven of the 32 holes failed to intersect any mineralisation. Drilling intersections quoted are all downhole widths, which in general are targeted to intersect postulated mineralised zones at angles of greater than 30*, i.e. approaching perpendicular as far as practicable.
Planning for a 2008 field season drilling programme has commenced and will be targeted at extending and better defining these new areas of mineralisation with a view to developing resources in these areas to feed into the Feasibility Study for Tregoora.
The Tregoora exploration licence, EPM 13937, is 100% owned by Republic.
Mt Carbine Purchase Option Update
Work continues on the purchase of the Mt Carbine Project.
Further Drilling Results
Further drilling analysis results for the Northcote Gold Project in Far North Queensland and the Burraga Polymetallic Project in NSW are either being examined by the Company's geologists or are expected from the laboratory soon.
JORC Code Compliance Statement
Information in this report that relates to Exploration Results and Resources is based on information compiled by Mr Trevor Jackson and Mr John Kelly, who are all members of the Australasian Institute of Mining and Metallurgy. Mr Kelly is a director of the Company and Mr Jackson is the Exploration Manager of the Company and both have a minimum of five years experience relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as Competent Persons as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Jackson and Mr Kelly consent to the inclusion in this report of the matters based on information provided by them and in the form and context in which it appears.
Contact
Greg Barns
TEL: +61-419-691-846
John Kelly
TEL: +61-418-577-759
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