Anglo Australian Resources NL (ASX:AAR) Returns Thick High Grade Copper Intersections at San Diego Deposit, Now Focusing Development Studies on Open Pit Mining Option

Perth, Aug 30, 2010 AEST (ABN Newswire) - Anglo Australian Resources NL (ASX:AAR) (PINK:AAURF) reports the results of the diamond drilling component of the successful 2010 drilling programme at the Company's wholly owned Koongie Project.

The latest drillholes at Sandiego, together with other high grade copper intersections reported in late July, extend copper mineralisation in both the new supergene zone and previously outlined primary sulphide zones. The thick, high grade intersections reported in this announcement confirm strong vertical continuity to the primary copper lode mineralisation to at least 500m below surface. Importantly, the high grade copper mineralisation delineated in the relatively shallow supergene zone by the 2010 drilling (see Figure 1 - for all figures and tables, please refer to the link at the bottom of this release) has not been substantially included in previous resource estimates.

The deposit is being remodelled following the delineation of the copper-rich supergene zone. Resources are being re-estimated and previously defined copper resources (Table 1) are expected to increase materially.

The Company has previously completed a Pre-Feasibility Study that focused on underground development of the primary copper and zinc sulphide lodes. The recent delineation of the supergene zone at the top of the deposit creates potential for development initially by open pitting, with subsequent underground development off the open pit. A Scoping Study has commenced.

Background

Anglo Australian Resources NL in September 2009 announced resource estimates for the Sandiego deposit at the Company's wholly owned Koongie Project located 25km south-west of Halls Creek in the Kimberley region of Western Australia as detailed in Table 1.

In July 2010 the Company completed 3109m of RC and 1403.8m of diamond drilling designed primarily to extend and increase the copper resources. In particular, drilling was designed to delineate a newly interpreted zone of copper-rich supergene chalcocite mineralisation overlying the primary sulphide lodes.

Results for the RC component of the drilling program were announced to the ASX on 23 July 2010. The highlight was an intersection of 71m @ 5.04%Cu, 7.69% Zn, 68 g/t Ag and 0.43 g/t Au in SRC061, which contained an interval of 15m @ 9.4% Cu, 214 g/t Ag and 0.19 g/t Au corresponding to the zone of supergene copper enrichment at the top of the Sandiego Deposit.

As mentioned above, the successful delineation of the supergene zone is expected to add materially to the overall copper resource and opens up potential for mining by open pit methods.

Results of the diamond drilling component of the programme are reported below.

Diamond Drilling Results.

Diamond drilling principally targeted an interpreted deep high grade shoot of copper mineralisation on the northern end of the Sandiego deposit. The excellent results confirm strong vertical continuity to the primary copper mineralisation to at least 500m below surface.

Table 2 summarises significant intersections. Locations of holes in plan and long section are shown in Figures 4 and 5. The cross section on Figure 6 shows the relationship between the new primary copper sulphide intersections and the overlying supergene copper mineralisation.

SRCD063 (Section 1100N) intersected a 30m wide interval of chalcopyrite - pyrrhotite mineralisation and returned three significant intersections at 1% copper cut-off:

6.0m @ 3.8% Cu, 10g/t Ag, 0.51g/t Au from 291m
2.5m @ 3.0% Cu, 9g/t Ag, 0.3 g/t Au from 301.1m
11.1m @ 2.2% Cu, 10g/t Ag, 0.57g/t Au from 309.7m

True widths are 90% of downhole intervals.

SRCD064 (Section 1100N) drilled on the same section and 100m below SRCD063, intersected two zones of near massive chalcopyrite and pyrite from 393.7m (Figure 2). The two intersections at 1% copper cut-off are:

14.5m @ 7.3% Cu, 10g/t Ag, 0.8 g/t Au from 393.75m
7.45m @ 4.2% Cu, 10g/t Ag, 0.56g/t Au from 420.2m

True widths are 90% of downhole intervals.

SRCD078 (Section 1120N) intersected a zone of chalcopyrite-pyrite mineralisation150m below the SRCD064 intersections. This intersection, which is located 500m below surface, assayed 12.1m @ 1.68% Cu. True width is estimated at 90% of downhole interval.

SRCD032 (Section 1140N) returned a zinc-rich intersection of 8.35m @ 0.3% Cu, 7.6% Zn, 0.11g/t Ag. True width is 40 -50% of down hole interval. Faulting may account for the reduced width of the mineralized zone in this drillhole.

SRCD059 (Section 1060N) was designed to intersect supergene copper and transition zone zinc mineralisation and to provide geotechnical information.

2.0 m @ 0.6% Cu, 8.1% Zn, 302g/t Ag from 161m
19.9m @ 1.3% Cu, 19.9% Zn, 129g/t Ag, 0.17g/t Au, 2.1% Pb from 168.1m
3.0m @ 0.2% Cu, 4.5% Zn, 16g/t Ag from 191m
5.2m @ 0.2% Cu, 5.2% Zn from 240.8m

A gossanous zone between 131.7 and 142.2m, which correlates with supergene copper zone, is yet to be assayed.

For the complete Anglo Australian Resources announcement including tables and figures, please visit the following link below:
http://www.abnnewswire.net/media/en/docs/63616-ASX-AAR-20100830.pdf

Contact

Angus C. Pilmer Executive Director Anglo Australian Resources Tel: +61-8-9382-8822 Peter Komyshan General Manager Exploration Anglo Australian Resources Tel: +61-8-9382-8822 http://www.anglo.com.au