Northern Mining Limited (ASX:NMI) Northern Zone
Perth, April 3, 2009 AEST (ABN Newswire) - Northern Mining Limited (ASX:NMI) is pleased to announce the completion of negotiations with Cazaly Resources Ltd (ASX:CAZ) and Balagundi Gold Pty Ltd (BGPL) for a revised Farm-In Agreement over the East Kalgoorlie Project (Project) to include BGPL as a Farminor.
Collectively, NMI and BGPL will have the right to earn a 75% interest in the Project by completing a further 7,346 metres of reverse circulation (RC) or diamond drilling before December 2010.
It is proposed that BGPL will fund the next 2,000 metres of RC or diamond drilling, followed by NMI and BGPL jointly funding the remaining 5,346 metres.
Upon completion of the earn-in, it is expected that NMI will have earned a 51% interest and BGPL a 24% interest with CAZ holding the remaining 25% interest in the Project.
Drilling Commences at Blair North E25/268 - East Kalgoorlie Project:
Following the recent, highly successful diamond drilling program, the abovementioned 2,000m RC program (being funded by BGPL) is due to commence next Tuesday 7 April 2009. This program will focus on the southern and northern gold targets of E25/268 where gold values up to *39.82g/t Au in BNRC033 (northern zone) and *34.55g/t Au in BNRC020 (southern zone) were intercepted from previous diamond and RC drilling programs.
Results of the current program are expected by 30 April 2009.
*These results and figures have been previously announced to the ASX.
About Northern Mining Limited
Since admission to the Official List of the ASX on the 12 September 2006, Northern Mining Limited (ASX:NMI) continues to explore its exciting and diverse exploration portfolio comprising gold, nickel and base metals projects in Western Australia (WA), the Northern Territory (NT) and Poland.
During 2011/2012, NMI focussed its exploration efforts on the East Kalgoorlie Project in Western Australia, where the Company has strong indications of three gold mineralised systems within its tenure (Blair North, Kanowna Lights and Snake Hill Prospects). All prospects are ideally located to key infrastructure and gold processing facilities.
At the Camel Prospect in the Northern Territory, manganiferous outcrops occur in two discrete areas some 23 kilometres apart with limited exposure of rocks anomalous in manganese. At both areas, the zones of interest are covered by a shallow cover sequence. Rock chip values of the limited outcrop returned consistently elevated Mn results up to 15.7% Mn at Area 1 and up to 45.6% Mn at Area 2. The Prospect covers some ~3,260 hectares, is centred 127 kilometres southwest of Alice Springs and is readily accessed by the sealed Stuart Highway which passes through it. The Prospect is <110 km west of the Adelaide-Alice Springs Rail Corridor.
The Company's interest at the Radzimowice Project in Poland, is focussed on a bulk tonnage Au-Ag-Cu target which has not been subject to modern day exploration.
Northern Mining Limited
Cazaly Resources Limited