Republic Gold Limited (ASX:RAU)
Brisbane, Mar 25, 2009 AEST (ABN Newswire) - The Directors of Republic Gold Limited (ASX:RAU) today announce that the Company has completed the diamond drilling programme at Amayapampa Gold Project ("Project") and has completed most of the surface trench and pit sampling programme. Further trench and pit sampling was required to extend the original work into new areas, not previously considered mineralised.
The Company recently announced that the total Mineral Resources at the Amayapampa had increased from 720,000 ounces to 1,084,000 ounces. The new drilling and surface sampling results are anticipated to further increase the Mineral Resources and to also provide close spaced data for the first 5-metre bench in the open pit, ensuring robust estimates of grade and tonnes for the Project's initial production.
Bolivia's Vice Minister of Mining, Sn Eugenio Mendoza, is providing the Company with significant assistance to finalise the remaining social issues associated with Amayapampa. Sn Mendoza visited the Project last weekend to speak with local authorities,
Work on the Bankable Feasibility Study for the Project is progressing. The Company is sufficiently confident in the outcome of this work that it has chosen a local earthmoving contractor, SERPETBOL, to commence Pre-Construction Earthworks at the Project. The Company will sign a contract with SERPETBOL shortly and commence the earthworks immediately the contract is signed.
Republic's Managing Director; John Kelly, said:
"The Company continues to expend a significant effort on Amayapampa and the result of this drilling and surface sampling vindicates the Board's faith in this project. Of particular interest are the long intersections encountered in the drilling plus the high grade intercepts. Some of the deeper drilling intersections highlight the potential for the resource to be increased to more depth with additional drilling down the track. The surface sampling programme has shown that there should be substantially more material to mine in the initial benches of the pit than the current model is predicting. And despite the extensive nature of the old workings on the surface at Amayapampa there are numerous trench and pit samples over 5 g/t Au. The imminent commencement of Pre-Construction activities at the Project will be welcomed by all, particularly Sn Eugenio Mendoza, with whom the Company has struck a firm friendship in the quest to commence operations at Amayapampa."
Contact
John Kelly
Managing Director
Republic Gold Limited
TEL: +61-418-577-759
Tony Nagy
TEL: +61-413-645-126
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