Highlights
RC drilling completed in early June has encountered the following high grade
intercepts:
• 19m @ 5.53g/t Au from 52m in Hole GR10RC07, including 4m @ 20.68g/t Au
from 52m
• 11m @ 2.19g/t Au from 46m in Hole GR10RC12, including 3m @ 7.28g/t Au
from 54m
• four separate zones of mineralization at Hole GR10RC16 between 31 and 87
metres down hole depth, including:
- 6m at 2.83g/t from 66m;
- 5m at 6.54g/t from 82m, including 3m at 9.86g/t from 84m, and
- 1m at 3.4 g/t from 78m.
• Ore grade gold zone now extends to in excess of 250m along strike and is
open along strike and at depth
• Resource modeling and follow-up diamond drilling is planned and includes
deeper diamond drilling to depths of 250m+
Queensland Mining Corporation Limited (ASX: QMN) is pleased to announce assay results
from the first phase of RC drilling completed on QMC 100% owned Gilded Rose gold project
located approximately 15km east-southeast of Cloncurry, northwest Queensland.
QMC’s assets in the Gilded Rose area consist of Mining Leases 2709, 2713, 2718 and 2719
covering an area of 64 hectares which contain the historical Gilded Rose, Boomerang, Gilt
Edge and Silver Lining Mines (DMR reported drilling 52 RC and 8 Diamond holes at the
Gilded Rose and along strike at the varies named Mine sites) where mineralization is over an
area of 1.5km, the surrounding EPM14475 (Exploration Permit for Minerals) covering an area
of 35km2. The Company also has a gold processing plant on care and maintenance located
on the lease area that is suitable for the treatment of high-grade ore. The plant can be
upgraded and re-commissioned for approximately $250,000 for an estimated annual
throughput capacity of 185,000 TPA of ore. The company is currently proceeding with
resource calculations and ore resource modeling to enable mine design and engineering for
the production of Gold.
Gold mineralization occurs as sheeted quartz veins along the WNW-ESE trending shear
zones developed mainly on the contact between the phyllite-quartzite unit and overlying
metavolcanics of the Weatherly Creek Formation. Previous explorers have included
Kennecott Exploration (Australia) Ltd, North Queensland Company Ltd and DMR who carried
out mapping sampling and drilling.
The drill program completed in early June 2010 consists of 21 RC holes totaling at 2400m
over a strike length of 400m of the interpreted host structure. (Figure 1).The drilling was
designed to support the result of previous drilling and develop a reliable database with the
aim of producing a JORC compliant resource for the project prior to mine planning and
recommencement of Gold production. All holes were drilled against the strike of the
interpreted host structure at a dip of -60 degrees with depths varying from 72 to 150m. A
drilling pattern of 25m x 25m was undertaken around the current pit.
Drill hole details are presented in Table 1 and their locations are shown in Figure 1.
Assay results returned significant intervals of high-grade gold mineralization at
shallow depths (Table 2) with the best intercept being 19m @ 5.53g/t Au from 52m in Hole
GR10RC07 which includes 4m @ 20.68g/t Au from 52m depth. This hole was drilled
towards the southeastern end of the current pit, suggesting the mineralization zone extends
outside of the pit. The next best hole in the program is Hole GR10RC12, which was drilled
towards the north-western end of the pit and 75m along strike to Hole GR10RC07. This hole
intersected three zones of mineralization with the best interval recording 11m @ 2.19g/t Au
from 46m depth, including a higher grade intercept of 7.28g/t Au over 3m.
Other important holes in the program include Holes GR10RC16 and GR10RC18. Hole
GR10RC16 was collared 25m behind Hole GR190RC07 to the south to follow up the downdip
extension of mineralization intersected in Hole GR10RC07-GR10RC16 encountered four
separate zones of mineralization between 31 and 87 metres down hole depth, including;
- 6m at 2.83g/t from 66m;
- 5m at 6.54g/t from 82m, including 3m at 9.86g/t from 84m, and
- 1m at 3.4 g/t from 78m.
-
Hole GR10RC18 was drilled 120m southeast of Hole GR10RC07 and returned 3m
mineralization averaging 1.8g/t Au. This result is important as it extends the strike length
of the mineralization zone at the Gilded Rose by 250m and remains open along strike
and to the south remains open at depth.
The Company is encouraged by these results which based on the broad high grade gold
intersections are expected to support a new resource position in the Gilded Rose Project. A
new geological model is being developed to target similar gold mineralization along the
1.5km strike length covered by the four mining leases and within the broad area of the EPM
located approximately in the centre of the Pumpkin Goldfield in the Cloncurry mineral
province. Resource modeling of the drill results and follow-up diamond drilling for
exploration and core recovery for metallurgical and gold processing test work
requirements are now planned to be enacted on these encouraging results.
The gold price as at 06/08/2010 is around US$1,194 per ounce (AUD=$US0.91) which is
approximately AUD$42 per gram. The company’s Gold plant at Gilded Rose has been
reviewed by GMS Engineering & Project Pty Ltd. to upgrade the Gilded Rose plant to around
185,000 TPA throughput at an estimated cost of $250,000.
Gilded Rose-High Grade Gold Plant
Processing recovery tests have been sent to laboratories and the company is enacting a new
plan of operations and environmental approval to enable mining and gold production to
recommence.
The Gilded Rose from previous historical production as reported from high grade
underground mining to open-cut operations, were approximately 10,500ounce of gold. The
average grade as reported varied from 18g/t to 42g/t Au from various mining operations
undertaken.
Further details on the Gilded Rose Mine and Exploration history including production can be
found on page 66-68 of the independent geological report in the QMC Prospectus dated
02/01/2008 and under the heading of “Investor Information” on QMC’s website:
www.qmc.com.au
