Perth, April 23, 2008 AEST (ABN Newswire) - Kasbah Resources Ltd (ASX: KAS) has completed Phase 1 of its diamond drilling programme in the Eastern area of the Achmmach Tin Project. To date, the best down hole intercepts received in Phase 1 include;
AD009:
- 5m @ 0.9% Sn from 91m (including 3.0m @ 1.3% Sn from 93m)
- 8m @ 1.1% Sn from 200m (including 1m @ 4.1% from 200m)
AD010:
- 16.0m @ 0.5% Sn from 70m (including 4.0m @ 1.0% from 77m)
AD013:
- 6.3m @ 0.71% Sn from 360.1m (including 2.3m @ 0.97% Sn from 360.1m)
- 6.9m @ 0.4% Sn from 444.7m
- 3.7m @ 1.1% Sn from 453.9m (including 1m @ 1.9% Sn from 455.6m)
AD014:
- 8.8m @ 2.0% Sn from 259.3m (including 0.8m @ 4.7% Sn from 266.5m)
- 8.8m @ 1.2% Sn from 331.2m (including 1.1m @ 3.3% Sn from 266.5m)
Additional assays are pending for Phase 1
Phase 2 drilling has now commenced in the Western area above the existing underground workings as planned.
ACHMMACH TIN PROJECT
Exploration Activities for the Quarter
For the quarter ending 31st March 2008, 7 diamond core holes (AD011 to AD017) totalling 2,322 metres were completed in the Eastern area of the Achmmach Tin Project.
Assay results for drill holes AD009 - AD014 were received. The most significant intersections to date include:
- 8.0m @ 1.1% Sn from 200.0m (AD009)
- 16.0m @ 0.5% Sn from 70.0m (AD010)
- 8.8m @ 2.0% Sn from 259.3m (AD014)
- 8.8m @ 1.2% Sn from 331.2m (AD014)
The interpretation for holes AD011, 012 and 013 are being compiled and are not yet available.
The Phase 1 drill programme was focused on the Eastern area of the Achmmach Tin Project. This programme comprising 17 holes for 4,192 metres was completed in April 2008.
Achmmach geology is dominated by a north-east trending metamorphosed greywacke sequence traversed by near vertical east-west structures. These structures are usually marked by outcrops of tourmaline and silica altered breccias. Tin mineralisation is commonly associated with these breccias.
Drilling results to date indicate the eastern area is also traversed by a north-east trending swarm of Dolerite Dykes which are now recognised as another control on the distribution of significant tin mineralisation. Fractured and micro-fractured zones in and around these dykes have allowed penetration of hydrothermal fluids enriched in tin.
It is inferred the intersection of the east-west structures and dykes would be a favourable site for tin mineralisation however the drill pattern is too broad at this stage to prove the orientation of these features.
These tin mineralised zones are best defined at a natural low cut of 0.3% Sn. At a tin price of US$19,000 - 20,000 per tonne (LME spot price at April 21 was US$21,900); a 0.3% Sn cut off is now considered appropriate for delineating potential economic ore.
The application of the 0.3% Sn cut has advanced the definition of significant zones of tin mineralisation.
Planning for any follow up program for the eastern area will be undertaken when all drill assay results have been received and processed. A full interpretation of all of the Phase 1 results will be undertaken during the next quarter.
As planned, the Phase 2 drilling programme was commenced. The diamond drill rig has now moved to the western end of the project, centred upon the existing underground workings. The aim of this drill program is to confirm the tin mineralisation previously intersected by BRPM and to define the 3D shape of ore along strike, up dip and down dip from the previous BRPM exploration work.
EL KARIT TIN PROJECT
Exploration Activity for the Quarter
No further field exploration work was undertaken on El Karit during the quarter. Results of the in-situ bulk sampling programme carried out are awaited.
TAMLALT GOLD DEPOSIT
The Tamlalt gold deposit mining property is 100% owned by Kasbah Resources and is covered by eight exploration permits covering a total surface area of 128 km2 in Eastern Morocco.
Exploration Activity for the Quarter
During the quarter consultants completed a detailed structural interpretation of the project. A site investigation is scheduled for the next quarter as a precursor to the development of a detailed exploration programme.
CORPORATE
International Tin Conference - Hong Kong, April 16 and 17, 2008
The bi-annual International Tin Conference was held in Hong Kong on April 16 and 17. A record number of delegates attended the conference with the tin price breaking through the US$21,000 per tonne barrier during this week.
A summary of the major issues facing the tin industry include:
- the demand and supply gap continues to grow;
- demand side pressure will increase - primarily by solder demand in the electronics sector;
- tin metal demand in China is expected to grow at approximately 10% per annum;
- the increase in demand was unlikely to be met by newly proposed alluvial tin projects;
- Supply side problems are growing and continue to be exacerbated by:
-- chronic under-investment in new projects over the last 2 decades;
-- diminishing production and increasing production costs from aging or mature mines;
-- production cost escalation in many on-shore mining or shallow tin dredging operations as oil price rises;
-- increased pressure from NGO groups on illegal mining or environmentally damaging sources of production.
ITRI Limited, the leading technical body of the tin Industry stated that;
"To meet forecast tin demand that mine production outside of China and Indonesia needs to double in the next 5 years."
Managing Director of Kasbah Resources Limited presented a paper titled "Re-energising the Moroccan Tin Industry", outlining the history and potential future of tin production in Morocco. A copy of the presentation can be found at www.kasbahresources.com.
Relocation of Managing Director
During this important phase of the Company's development, the Managing Director, Wayne Bramwell, has re-located to Morocco.
Capital Structure and Major Shareholders
The total number of ordinary fully paid shares quoted on the ASX at 31 March 2008 was 73,208,000. The top 20 shareholders held 74.78% of the stock.
Contact
Peter R Youd
Chief Financial Officer & Company Secretary
T: +61 (0)8 9463 6651
W: www.kasbahresources.com
| ||
|
