Drilling results extend broad gold zone at Old Red Hill

Website: www.hillendgold.com.au
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Drilling results extend broad gold zone at Old Red Hill
[email protected]
28 July 2006
ASX Code : HEG, HEGOA
The recently completed Stage 2 drilling program at the Red Hill project has
intersected a broad zone of near surface gold mineralisation and has extended the
Old Red Hill mineral resource area. Results have confirmed the continuity of a wide
zone of gold mineralisation previously drilled in hole RC32 which intersected
2.52g/tAu over 30 metres from surface (including 6.54g/tAu over 8 metres).
The Red Hill project is located over a zone of gold mineralisation and old high grade
workings of three kilometres in strike length and 50 to 100 metres in width, along the
eastern flank of the Hill End Anticline to the north of Hill End, New South Wales,
Australia. The company has almost the entire fifty kilometres strike length of the Hill
End Anticline under tenement.
In the Red Hill project area, deep weathering to a depth of 70 metres and gently
undulating topography is ideal for open pit development.
Reverse circulation drilling has targeted gold mineralisation in the weathered zone
above the water table with significant intersections including the following results:
RHRC88 with 1.94g/tAu over 20 metres from 27 metres;
RHRC89 with 2.83g/tAu over 9 metres from 32 metres;
RHRC90 with 2.04g/tAu over 25 metres from surface; and,
RHRC91 with 1.36g/tAu over 20 metres from 6 metres.
The Old Red Hill vein set, which is now outlined by shallow drilling over a 200 metres
strike length and up to 27 metres width, is located five kilometres along strike from
Hawkins Hill and Reward deposits. It occurs in a similar geological setting to
Hawkins Hill and Reward with gold in bedding and spur quartz veins in en echelon
vein sets, which are interpreted to continue down plunge for a kilometre or more.
Four shallow-plunging vein sets have been identified to date in the southern Red Hill
area over a near surface strike length of 800 metres: Whites, Red Hill Deeps, Old
Red Hill and Marshall-McMahon. Additional areas along strike in the northern Red
Mine and Administration
C/o Hill End Post Office
Hill End NSW 2850
Phone 02 63378319
Fax 02 63378133
Exploration
Bowen Street
Hill End NSW 2850
Phone 02 63378343
Fax 02 63378345
Sydney
Suite 1310, 3 Spring Street
Sydney NSW 2000
Phone 02 82494416
Registered Office
P O Box 92 Earlville QLD 4870
Phone 07 4033 1805
Fax 07 4033 6415
Hill area, which are yet to be drilled, are the Valentines, Emily and Old Company
workings.
Further drilling on the Old Red Hill vein set is planned down dip and down plunge of
the current drilling, and previous drilling by BHP in 1989 will be re-drilled since it is
likely that the BHP drilling, sampling and assay methods have resulted in a low bias
in the assays received.
Previous metallurgical testing of oxide, transitional and primary samples from Red Hill
indicated excellent gold recovery using simple gravity and leach processing at a
relatively coarse grind. In summary, for all mineralisation categories:
•
•
•
gold appears to be free gold and liberated at a maximum particle size of 212
microns;
gravity gold recovery averaged 77% and the remainder leached quite rapidly
over approximately six hours;
the total gold extraction for all samples was 98-99%.
A review of mining parameters has indicated that the weathered zone to
approximately 60 metres is quite soft for excavating and the wide mineralisation will
result in a low stripping ratio.
A new resource estimate for Old Red Hill near surface mineralisation will include the
planned infill and extension drilling. The previous inferred and indicated mineral
resources estimate for the Red Hill area was done in 2004 and totalled 27,000
ounces of oxide and transition material in Whites and Old Red Hill (inferred resource
of 8,600 ounces in oxide material).
Some assay results are awaited for the Stage 2 drilling program at Red Hill which
included 1,879 metres of reverse circulation drilling and 655 metres of diamond
drilling in 31 holes. Further details will be reported at a later date. Reverse
circulation drilling samples with visible quartz samples and diamond core samples
were assayed with the screen fire assay technique. Visible gold was observed in
several core samples with grains to 1mm.
Attribution
The information in this report that relates to Exploration Results or Mineral Resources is based on
information compiled by Mike Quayle who is a Member of The Australian Institute of Geoscientists. Mr
Quayle is a full-time geological contractor for the company and has sufficient experience which is
relevant to the style of mineralisation and type of deposit under consideration and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (The JORC Code).
Mr Quayle consents to the inclusion in the announcement of the matters based on his information in
the form and context in which it appears.
Philip Bruce
Managing Director
For further information contact Philip Bruce +61 412 409555
Attached:
- Southern Red Hill Project Drillhole Location Plan
RH3
RH3
HERH
HERH 28
28
RC30
RC30
HERH
HERH 24
24
RC31
RC31
RHRC80
RHRC80
HERH
HERH 25
25
RC31
108m
726600 mE
726500 mE
726400 mE
100
6347500 mN
100
100
RH3
RC30
HERH
HERH24
25
81m
RC31
RHRC80
HERH 25
RC60
80m
RHRC81
75m
RC60
RC60
RC60
RHRC81
RHRC82
75m
RHRC81
RHRC81
RHD77
RH6
RHD77
RHD77
726800 mE
80m
RHRC80
75m
726700 mE
75m
RH6
RH6
RHRC82
RHRC82
RH1
RH1
RH1
176.55m
RHRC82
100
RHRC83
75m
RH1
RC54
75m
RC54
RC54
RC55
RC55
200
RHRC83
RHRC83
RC55
RHD78
RHRC83
75m
200.3m
RC54
RC55
100
RHRC84
72m
RHRC84
RC53
60m
RC53
6347400 mN
RC53
RC53
RHRC84
RHRC84
RHD78
RHD78
RHD78
HERH 26
80m
200
RH2
200.25m
HERH
HERH 26
26
RC56
RC56
RH2
RH2
RHRC85
RHRC85
HERH 26
RC56
69m
100
RHRC85
73m
RC56
RH2
RHRC85
RHRC86
50m
RHRC86
RC52
69m
RHRC86
RHRC86
RC52
RC52
RC59
69m
RC52
RC59
RC59
RC59
RHRC89
73m
RHRC89
RHRC89
RHRC89
HERH 17
80m
HERH
HERH 17
17
100
6347300 mN
RC32 RHD79
75m 150.5m
HERH 27
84m
HERH 17
RC32
RH5
171.46m
RC32
RC32 HERH
HERH 27
27
RHD79
RHD79
RH5
RH5
RHRC88
RHRC88
HERH 27
RHD79
100
RHRC88
73m
RH5
RHRC88
RHRC87
50m
RHRC87
RHRC87
RC57
63m
HERH 18
87m
RC57
RC57
RHRCD108
110m
10 0
RHRC87
RC57
HERH 18
HERH
HERH 18
18
RHRCD108
RHRCD108
RHRCD108
RHRC90
73m
RHRC94
50m
RHRC94
RHRC94
6347200 mN
RHRC90
RHRC90
RHRC90
RHRC94
HERH 19
80m
RC51
60m
RC51
RC51
RC51
RC46
85m
HERH
HERH 19
19
RC46
RC46
RHRC91
RHRC91
HERH 19
RH7
167.66m
RC46
100
RHRC91
73m
RHRC91
HERH 21
80m
RH7
RH7
RH7
HERH
HERH 21
21
RC50
RC50
HERH
HERH 20
20
HERH 21
RC50
75m
HERH 20
81m
RC50
HERH 20
RHRC92
73m
RHRC92
Legend
RHRC92
RHRC92
RC44
75m
6347100 mN
RC47
75m
RC44
RC44
RC47
RC47
RHRC93
RHRC93
RC44
Old Red Hill Zone
RC47
RHRC93
66m
RH8
161.9m
RHRC93
RHRC95
73m
100
RC49
99m
RH8
RHRC95
HERH
14
81m
RHRC95
RHRC95
RC49
RC49
HERH
HERH 14
14
HERH 14
RHRC96
73m
RHRC96
RHRC96
RHRC96
RC49
RC45
RC43
RC43
RC43
6347000 mN
RC45
RC45
RC48
75m
RHRC97
73m
RHRC97
RHRC97
RHRC97
RC48
RC48
RC48
RC42
RC42
RC42
RC41
80m
HERH
HERH 13
13
RC41
RC41
HERH
HERH 12
12
RHRCD106
RHRCD106
RHRC98
RHRC98
HERH
1312
HERH
80m
RC41
RHRCD106
105m
RHRCD106
HERH 10
78m
RHRC98
HERH
HERH 10
10
RC33
63m
Previous Drill Hole
RC33
RC33
HERH
HERH 11
11
RHD105RHD105-RC40
RC40
HERH
HERH 09
09
RHRCD107
RHRC99
RHRC99RHRCD107
HERH
HERH 05
05
HERH
HERH 06
06
RC38
RC38
HERH 07
07
RC39HERH
RHD109
RHD109 RC39
RHD104RHD104-RC58
RC58
Old Shaft
HERH 10
HERH 11
81m
100
6346900 mN
Track
HERH 12
10 0
RHRC98
73m
Road
Completed 2006 Stage 2 Drill Hole
RC42
65m
HERH 13
80m
White's Zone
Mineralised Corridor Boundary
RC45
75m
RC43
75m
RH8
RH8
RHD105
101.3m
RC40
RC33
80m
HERH 11
10 0
HERH 09
81mRHRCD107
103m
Old Working
RHD105
RC40
HERH 09
RHRCD107
RHRC99
73m
HERH 05
78m
RHRC99
RC38
75m
HERH 05
HERH 06
80m
RHD109
100m
RC38
RC39
RHD104
76m
129.5m
HERH 06
100
HERH 07
80m
RHD109
RC39
RC58
75m
HERH 07
HERH 08
75m
RHD104
RC58
RHRC100
73m
HERH 08
HERH 01
75m
HERH
HERH 01
01
RC36
67m
RC36
RC36
HERH
HERH 02
02
HERH 02
80m
RHRC100
RHRC100
HERH 01
RC36
RC37
64m
HERH 02
6346800 mN
HERH
HERH 08
08
RHRC100
HERH 03
66m
RC37
RC37
RC37
HERH
HERH 03
03
HERH 03
HERH 04
79m
RC34
68m
RHRC101
73m
RHRC101
RHRC103
44m
RHRC103
RHRC103
6346700 mN
HILL END GOLD LIMITED
HERH
HERH 04
04
HERH 04
RC34
RC34
RC35
68m
RHRC102
43m
RHRC103
RC34
RC35
RC35
RHRC101
RHRC101
RC35
RHRC102
RHRC102
RHRC102
RED HILL PROJECT
Drillhole Location Plan
Author: RJP
Drawing:
Office: Hill End
Scale: 1:3000
Projection: MGA Zone 55 (GDA 94)
0
25
50
metres
Date:6/7/2006
100