Positive Drilling Results
November 16 2007 - 2:01AM
UK Regulatory
RNS Number:8568H
Gippsland Limited
16 November 2007
2007-11-16
Gippsland Limited ("Gippsland" or the "Company")
Positive Copper nickel drilling Results
________________________________________________________________________________
Drilling intersected copper and nickel mineralisation with best results
including:
* 16m @ 2.25% Cu, 0.64% Ni including 7m @ 4.41% Cu, 1.17% Ni
* 18m @ 1.55% Cu, 0.54% Ni including 5m @ 5.25% Cu, 1.42% Ni
* 18m @ 0.96% Cu, 0.57% Ni including 4m @ 2.73% Cu, 1.33% Ni
* Open along strike to NW and SE
________________________________________________________________________________
Egypt focused resource developer Gippsland Limited (ASX & AIM: "GIP") today
announced encouraging results of an RC drilling programme completed at its Abu
Swayel copper-nickel prospect located in Wadi Allaqi situated to the south-east
of Aswan in Egypt.
A programme of thirteen holes totalling 776m of RC drilling was completed at Abu
Swayel, testing ancient workings and a transient electromagnetic (TEM) conductor
which was delineated by a TEM survey completed in August.
The best results (Table 1) were obtained from holes ASRC004, 6 and 9 which were
drilled below the ancient workings. Hole ASRC0011 which was drilled along strike
from the ancient workings intersected 18m at 0.96% Cu and 0.57% Ni including 4m
at 2.73% Cu and 1.33% Ni.
Table 1: Abu Swayel RC drilling - best down hole results
Hole From (m) To (m) Interval (m) Cu (%) Ni (%)
----------- ---------- ---------- ---------- ---------- ----------
ASRC004 24 42 18 1.55 0.54
Including 37 42 5 5.25 1.42
ASRC005 35 40 5 0.68 0.23
ASRC006 40 48 8 0.99 0.32
ASRC008 52 56 4 0.76 0.27
ASRC009 20 36 16 2.25 0.64
Including 21 28 7 4.41 1.17
ASRC011 24 42 18 0.96 0.57
Including 31 35 4 2.73 1.33
Including 39 42 3 1.16 0.94
ASRC012 11 36 25 low 0.16
ASRC013 8 20 12 0.24 0.19
----------- ---------- ---------- ---------- ---------- ----------
The results are consistent with some earlier sampling from a shaft and crosscut
and some diamond drilling completed during the early 1960s. These results
included 10m at 1.87% Cu and 1.53% Ni in a shaft and 8m at 4.11% Cu and 1.77% Ni
from a crosscut off the shaft at the 22m level.
The two holes drilled to test the TEM conductor contained minor sulphides
(pyrite) in the drill cuttings and returned anomalous results (Table 2) but did
not adequately explain the conductor.
Table 2: Abu Swayel - anomalous results from TEM conductor
Hole From (m) To (m) Interval (m) Cu (ppm) Ni (ppm)
----------- ---------- ---------- ---------- ---------- ----------
ASRC003 56 60 4 926 311
ASRC010 24 72 48 215 528
Including 74 72 8 446 1387
----------- ---------- ---------- ---------- ---------- ----------
Two drill holes (ASRC011 & 012) drilled close to the TEM conductor intersected
mineralisation down plunge from the ancient workings and confirmed the easterly
dip of the mineralisation in the ancient workings located to the southeast. The
easterly dip is contrary to the interpreted dip of the relatively low amplitude
conductor which was modelled as having a westerly dip.
Table 3: Abu Swayel drill hole locations
Hole E-WGS84 (Z36) N-WGS84 (Z36) Depth (m) Azimuth Dip
----------- ----------- ------------ -------- -------- --------
ASRC001 565653 2519068 60.0 220.0 -60.0
ASRC002 565604 2519135 74.0 220.0 -60.0
ASRC003 565408 2519182 84.0 040.0 -60.0
ASRC004 565548 2519130 54.0 220.0 -60.0
ASRC005 565578 2519111 51.0 220.0 -60.0
ASRC006 565511 2519148 51.0 220.0 -60.0
ASRC007 565530 2519171 60.0 220.0 -60.0
ASRC008 565575 2519168 72.0 220.0 -60.0
ASRC009 565525 2519122 57.0 200.0 -60.0
ASRC010 565488 2519153 81.0 360.0 -60.0
ASRC011 565487 2519159 45.0 220.0 -60.0
ASRC012 565475 2519147 36.0 220.0 -60.0
ASRC013 565608 2519064 51.0 200.0 -60.0
----------- ----------- ------------ -------- -------- --------
Commenting on the results, Gippsland Executive Chairman said, "The results are
most encouraging and a programme of geological mapping, rock-chip sampling and
ground magnetics will be completed to search for along-strike repetitions of the
Abu Swayel Cu-Ni mineralisation."
Gippsland is also developing the world class Abu Dabbab tantalum project in
Egypt with a 10-year tantalum sale contract signed with German major HC Starck
GmbH for the supply of 6 million pounds of tantalum pentoxide. The 40 million
tonne project has a 20 year mine life, with production due to commence in 2010.
RJ (Jack) Telford
Executive Chairman
Gippsland Limited
www.gippslandltd.com
For further information please contact:
Jack Telford, Executive Chairman Fiona Owen
Gippsland Limited Grant Thornton Corporate Finance
T: +61 (0)8 9340 6000 T: +44 (0)20 7383 5100
E: jtelford@gippslandltd.com E: fiona.owen@gtuk.com
------------------------------ -------------------------
Luke Cairns, Director, Corporate Finance Richard Hail, Head of Corporate Finance
Hoodless Brennan plc Fox-Davies Capital
T: + 44(0)20 7510 8600 T: +44 (0)20 7936 5200
E: l.cairns@hbcorporate.co.uk E: richard.hail@fdcap.com
------------------------------- ---------------------------
Jane Stacy / Ed Portman Warrick Hazeldine
Conduit PR Purple Communications
T: +44 (0)20 7429 6605 / 6607 T: +61 (0)8 9485 1254
E: jane@conduitpr.com M: +61 (0)417 944 616
-----------------------
E: ed@conduitpr.com E: whazeldine@purplecom.com.au
---------------------
Note:
In accordance with Listing Rule 5.6 of the Australian Stock Exchange Limited and
Part 2 of the AIM Guidance Notes for Mining, Oil and Gas Companies, the
geological information in this report that relates to Exploration Results,
Mineral Resources and Ore Reserves is based on data compiled by Dr John Chisholm
, a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Chisholm
who is an Executive Director of Gippsland Limited with over 25 years experience
in the mineral industry including the evaluation of exploration data, mineral
resources and ore reserves, has consented to the issue of the information in
this report in the form and context in which it appears.
About Gippsland Limited
Gippsland is an Australian based company listed on the Australian Stock Exchange
and the London Stock Exchange AIM and also trading on the PLUS Markets (UK)
platform, under the code of "GIP".
Gippsland owns 50% of the 40 million tonne Abu Dabbab and the nearby 98 million
tonne Nuweibi tantalum deposits via an equal joint venture with the Egyptian
Government. Gippsland maintains board and management control of the joint
venture company Tantalum Egypt JSC for the life of the project. The project will
operate in its own Egyptian Free Trade Zone which will provide numerous benefits
including relief from taxation, royalties, customs import duties and export/
import licensing.
Gippsland has completed a definitive Abu Dabbab feasibility study based on an
initial mill-feed rate of 2 million tonnes per annum producing approximately
650,000 pounds of tantalum pentoxide (Ta2O5) per annum. All Abu Dabbab
permitting has been finalised while all required environmental studies have been
completed to World Bank standards.
Abu Dabbab is expected to have a mine life of 20 years with the nearby 98
million tonne Nuweibi deposit providing an opportunity to greatly extend this
mine-life and increase the rate of production.
Based upon present spot prices, the Abu Dabbab and Nuweibi deposits have a
combined in-situ tantalum and tin value of approximately US$2.9 billion.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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