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Hill End Gold Limited (ASX:HEG) Red Hill Deposit Potential

Red Hill Deposit Potential
 
Recent re-interpretation of the Red Hill Deposit at Hill End recognises significant targets for future drilling and substantially enhances the potential for increasing the 89,200 ounce gold resource defined in 2008.
 
The Red Hill Deposit at Hill End is located approximately four kilometres north of the Hawkins Hill – Reward Deposit and has an Inferred Resource of 849,300 tonnes at 3.3g/t gold for 89,200 contained ounces.
 
The intensive trial mining and exploration of the Hawkins Hill – Reward Deposit have provided a good understanding of the geological controls on the gold mineralisation in the Hill End area and, in recent months, the Company has undertaken a detailed re-evaluation of all previous exploration at Red Hill.
 
Drilling to date at Red Hill has concentrated on testing the thin bedding parallel mineralised quartz veins (see Figure 1 in the ASX announcement), however it is now known that near-vertical Feeder faults are the primary control of high grade gold mineralisation.
 
The re-evaluation has identified fourteen drill hole intersections of thick gold-mineralised stockworks (complex zones of multiple quartz veins of variable orientations) over approximately 1,000m of the length of the Red Hill Deposit. These stockworks, aligned along a zone of Feeder faults, include the Fraser Zone (see Figure 1 in the ASX announcement) which in 2008 returned 5.2g/t over 28.2 metres downhole from 204 metres below surface, including 13.0g/t over 10.7 metres.
 
The Red Hill Feeder Zone structure, which is approximately 40m thick, is geologically similar to the Reward Ore Zone structure previously described by the Company at the Hawkins Hill – Reward Deposit.
 
Notably, this new interpretation of the Red Hill mineralisation has defined a significant target for future drilling. The Feeder Zone structure and its stacked stockworks have not been tested and the potential for increasing the 89,200 ounce gold resource has, therefore, been substantially enhanced.
 
A drilling program for early 2011 is being prepared for Board approval.
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