Republic Gold Limited (ASX:RAU) Increases Burraga Project Interest To 100%
Brisbane, July 9, 2010 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) today announce that the Company has purchased the interest held by its joint venture partner Astor Consultants Pty Ltd ('Astor') in the Company's Burraga project, located in New South Wales.
Astor, which held a 14 percent interest in the joint venture, will be paid A$300,000 in a combination of cash and shares by the Company. This agreement now means the Company owns 100 percent of its two tenements at Burraga.
Astor has been the Company's partner in Burraga since the Company purchased the project in 2004.
Initially Astor held a 25% interest; however this interest had been diluted over the years to approximately 14 %.
The Company's Managing Director John Kelly said that the Company was pleased to now control 100% in its Burraga tenements.
"The Burraga project is an important element in the Company's portfolio of assets", Mr Kelly said.
The Company previously announced on 3 May 2010 that, with historic drilling data and the modelling of the historic, high grade Lloyd's Mine, it had advanced exploration activity significantly. The regional area structures near the Burraga Project has historically delivered large gold and base metals resources and recent pegging activities by Newmont follow the delineation of a large gold resource to the north of Burraga at McPhilamy's. Ongoing exploration programmmes are planned with a view to evaluate near surface ore potential.
Following geological modelling of drilling, existing sub-surface drilling, extensive geochemistry and recent sampling work by the Company, it has, in consultation with a range of specialists, identified a number of conceptual exploration targets at Burraga for ongoing sampling work including:-
- A tailings exploration target size in the range of 250,000 to 350,000 tonnes at a copper grade of 1.0 to 1.5%. Recent sampling of these tailings has produced good grades that are confirming historical estimates. Detailed sampling has been completed on these tailings;
- A hard rock conceptual exploration target size of 5 to 8 million tonnes at a copper grade of 1.0 to 1.2% in the vicinity of the historic Lloyd's Mine, to a depth of 100 metres below surface. Pad construction has commenced and a drill programme designed, with commencement envisaged before the end of 2010.
A conceptual exploration target, over the broader field with a size of potential of 75 to 125 million tonnes at a copper grade of 0.7 to 0.9%. Drill targets will be designed for this programme following the completion of resource definition in and around the historic Lloyd's Mine.
- Two new anomalies have also been outlined at Mine Road and Burraga South.
John Kelly Managing Director Republic Gold Limited Tel: +61-7-4092-2594 Mob: +61-418-577-759