Last checked at 12 Jun 2008 08:00
The following announcement has been made by Agricola Resources plc. Agricola Resources plc is earning a 51% interest in the Ballek Joint Venture from BEOWULF MINING PLC
AGRICOLA INTERSECTS COPPER-GOLD MINERALISATION IN DIAMOND DRILLING
AT THE BALLEK JOINT VENTURE, SWEDEN
SUMMARY:
* Agricola Resources plc has obtained archive data which shows that historical drilling from the Lulepotten deposit in the Ballek Copper-Gold-Uranium Joint contains zones of copper-gold mineralisation that may have sufficient grade and width to be amenable to economic extraction through underground bulk mining. * Agricola has also released assay results from recent diamond drilling that tested nearby geophysical targets on the Ballek Project. * The best assay in Agricola's drilling is from drill hole BAL0003 where a 12m zone averaged 0.34% Cu and 1.40 g/t Au, including a 3m zone containing 0.94% Cu and 4.41 g/t Au.
This mineralisation is considered to be similar to Lulepotten which is approximately 2km along strike from BAL0003. The mineralisation consists of fracture-hosted copper sulphides and gold within hydrothermally altered meta-volcanic rocks.
* Agricola plans to undertake further drilling along the Lulepotten mineralised trend in preparation of an initial resource estimate consistent with the standards set out under JORC classification. * Agricola Resources is earning a 51% interest in the Ballek JV from Beowulf Mining plc by completing an agreed work programme of ground geophysics and drilling by December 2008, and can increase this to a 70% interest through an additional USD $500,000 exploration expenditure.
Ballek JV Exploration Update
The directors of Agricola Resources have advised that the initial diamond drill testing of multiple geophysical targets at the Ballek Copper-Gold-Uranium joint venture project in the municipality of Arjeplog, Northern Sweden (See www.agricolaresources.com Figure 1) has been completed. A program comprising four diamond drill holes for a total of 1,617m drilling has intersected significant copper-gold mineralisation in two of these holes. These intersections are apparently similar to the style of mineralisation known at the nearby Lulepotten Copper-Gold deposit, where previously completed drilling by the Geological Survey of Sweden (SGU) defined a zone of copper sulphide mineralisation locally in excess of 20m true thickness and over a strike length in excess of 1,000m. The Lulepotten deposit is also located on the Ballek JV exploration licences that Agricola is currently earning a 51% interest in.
Project Overview
The Ballek Copper-Gold-Uranium joint venture project contains a large regional gravity anomaly and an associated magnetic anomaly detected by airborne geophysical surveying (Figure 2). Three dimensional inversion modelling of the gravity and magnetic data by Agricola confirmed a series of three-dimensionally co-incident mass (gravity) and magnetic anomalies. Field inspection of limited outcrop close to these anomalies identified andesitic volcanic rocks with widespread epidote and magnetite alteration, and locally marked by the presence of blebs and veinlets of copper sulphides (chalcopyrite and bornite). Inspection of historical drill core from the Lulepotten Copper-Gold deposit, which occurs along strike from one of the geophysical anomalies, identified veins and narrow zones of magnetite-actinolite-chalcopyrite breccias. These geophysical and geological observations are consistent with iron-oxide copper-gold ("IOCG") styles of mineralisation similar to those found in the Cloncurry District of Queensland in Australia (e.g. Ernest Henry mine).
Lulepotten Copper-Gold Deposit
The Lulepotten Copper-Gold deposit occurs along the contact between a granitoid and a package of intercalated mafic to felsic meta-volcanic rocks and is located on the Ballek JV exploration licences that Agricola is currently earning a 51% interest in (see website Figures 2 and 3). The host rocks are strongly foliated, and the mineralised zone apparently follows the local schistosity which strikes SW-NE and dips steeply to the NW. Sulphide mineralisation within the deposit comprises a zone of steeply dipping veinlets and disseminated chalcopyrite plus bornite, with lesser chalcocite and pyrite. The observed alteration and mineralisation assemblages are considered to be consistent with iron-oxide copper-gold ("IOCG") styles of mineralisation.
During the period 1960 to 1971, 77 diamond drill holes were completed in the SW part of the project area for approximately 17,500m of drilling on a nominal 40m by 40m grid spacing. These drill holes, which are currently stored at the SGC core archive in MalĴ, tested the deposit to a maximum depth of about 200m below surface, and over a strike length of about 500m ( see website Figure 3, 4). Historical assay results which have been located in the SGU archives (see website for cross sections in Figure 5 and Figure 6), suggest that the mineralisation locally has sufficient width, grade and continuity to have potential as an underground bulk mining target.
Results of Agricola Drilling
A reconnaissance diamond drilling programme commenced at the Ballek project on 5th January 2008 to test a number of targets prioritised on the results of ground magnetic and induced polarisation/resistivity surveys completed in December 2007. Four diamond drill holes for a total of 1,617m drilling have been completed to date (see Table 1, website Figure 2).
Table 1: Ballek JV Drilling Summary
Hole ID Collar Coordinates (RT90 2.5 Azimuth Dip Depth (m) Comment gon V) North (m) East (m) RL (m) BAL0001 7,333,605 1,610,783 513 180 -88 444.7 Completed BAL0002 7,330,998 1,609,901 480 090 -88 316.0 Completed BAL0003 7,328,702 1,607,520 429 090 -88 360.0 Completed BAL0004 7,322,724 1,612,548 465 000 -88 496.0 Completed Total 1,616.7
The wide-spaced drill holes have intersected a sequence of predominantly intermediate to mafic metavolcanic rocks. In hole BAL0001 the host rocks are overprinted by epidote-magnetite and minor hematite alteration showing evidence of multiple phases of hydrothermal alteration, and locally contain minor blebs and disseminations of copper sulphides. In contrast, holes BAL0003 and BAL0004 intersected zones of fracture-hosted copper sulphide mineralisation that is considered to be similar to the known mineralisation at the Lulepotten deposit ( see website Figure 2).
Significant assay results have been reported for drill holes BAL0003 and BAL0004 (see Table 2). In hole BAL0003, fracture-hosted bornite plus chalcocite (minor chalcopyrite) mineralisation was intersected between 57m and 78m downhole. Hole BAL0004 contained a wide zone of local fracture-hosted sulphide mineralisation between 138m and 220m downhole, with narrow higher grade zones (Table 2). In both drill holes, mineralised fractures cut the drill core at low angle to the core axis and are inferred to be sub-parallel to the steeply dipping meta-volcanic stratigraphy. Consequently, the true widths and orientations of the mineralised zones are not known.
Table 2: Summary of Assay Results
Hole ID From (m) To (m) Length (m) Grade Comment Cu (%) Au (g/ t) BAL0001 - - - - - No significant resultsBAL0002 - - - - - Not sampled BAL0003 62.0 63.0 1.0 0.28 1.33 Bornite and chalcocite veinlets 67.0 79.0 12.0 0.34 1.40 including 67.0 70.0 3.0 0.97 4.41 and 71.0 72.0 1.0 0.14 0.99 and 76.0 78.0 2.0 0.28 0.84 BAL0004 149.0 151.0 2.0 1.30 0.40 Chalcopyrite and bornite (minor 194.0 196.0 2.0 1.25 0.28 chalcocite) veinlets
Half-cut core samples through the logged mineralised zones were taken at a commercial facility in MalĴ, Sweden. Sample preparation was undertaken by ALS Chemex in PiteĴ, Sweden, and analysis of the samples was completed by ALS Chemex in Perth, Australia. Quality control and quality assurance of the assay results has been undertaken with standards, blanks and repeat samples.
Future Exploration
Mineralisation at Lulepotten is open at depth and along strike. Drill hole BAL0003 reported above, is located approximately 2 kilometres along strike to the SW from the Lulepotten deposit. The geological similarity of the style of mineralisation intersected in this hole suggests that there may be significant untested potential along the structure, which is interpreted to have an overall strike length in excess of 5,000 metres. Furthermore, the occurrence of copper sulphides in BAL0004 suggests that repetitions of the Lulepotten-style mineralisation may be possible in other parts of the project.
An induced polarisation (IP) survey completed by Agricola in late 2007 detected the Lulepotten mineralisation, which is characterised by a marked increase in conductivity and IP response. Hole BAL0003 was drilled to test a similar geophysical response. This gives the company confidence that ground geophysics can used to identify prospective zones that can be prioritised for drill testing.
Agricola advises that compilation of historical geological, assay and drilling data from the Lulepotten deposit is currently in progress. Further drilling is planned to evaluate the full extent of the Lulepotten system, to include collection of adequate information to prepare an initial resource estimate consistent with the JORC classification system.
Background
Energy Ventures holds a 29.9% interest in Agricola and has a further 46.78 million options exercisable at ‚£0.01 (46% equity interest fully diluted). Agricola has signed an option and earn-in agreement with Beowulf Mining plc, the AIM listed copper, gold and uranium explorer, on the Ballek 2, 3, 4 and 5 exploration permits that covers 110 square kilometres of Arjeplog County of Northern Sweden.
Agricola is earning a 51% interest in the Ballek exploration permits by undertaking ground geophysical surveys followed by 3,200 metres of diamond drilling by December 31, 2008. To date Agricola has completed the ground geophysical surveys and 1,617 metres of diamond drilling. Agricola's interest can be increased from 51% to 70% through funding a further USD $500,000 of exploration expenditure. Further information on the Agricola and its projects may be found at www.agricolaresources.com.
Information in this report relating to Exploration results is based on information reviewed by Mr Lachlan Reynolds (an employee of Energy Ventures Ltd) who is a member of The Australasian Institute of Mining and Metallurgy. Mr Reynolds 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 under the 2004 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reynolds consents to the inclusion of the data in the form and context in which it appears.
For further information contact :-
Dr Robert Young Tel +44 (0)1353 649 701
Beowulf Mining plc
Gavin Burnell/Roxane Marffy Tel +44 (0) 20 7584 3663
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