Georgina Energy Regulatory News (GEX)

1 Aug 2006 14:19

Glencar Mining PLC01 August 2006 GLENCAR MINING PLC Results of first pass drilling programme at Sanankoro Target, Mali 1 August 2006 Glencar Mining plc ("Glencar" or the "Company") is pleased to announce theresults of a first pass, reverse circulation drilling programme at the Sanankorotarget, in the Bokoro concession in southern Mali. Borehole BKRC007 returnedan intersection of 21 metres grading 1.12 grams per tonne gold between 16 and 37metres downhole depth. The Bokoro concession is one of three concessions being explored under the termsof a Framework Agreement between subsidiaries of Glencar and Gold FieldsLimited, one of the world's major gold producers. Under the terms of theFramework Agreement, the Gold Fields subsidiary may spend up to US$12 million onexploration over three concession areas in southern Mali, in order to earn a 65%interest in the concessions. Reverse circulation drilling at Sanankoro commenced on 26 May 2006 and wascompleted on the 9 June 2006. Thirty five inclined holes at a nominal azimuth of135degrees were drilled for a total of 2,723 metres. The holes were drilledalong five northwest - southeast orientated fencelines. The minimum downholedepth was 66 metres and the maximum downhole depth was 120 metres. The drillingtested an interpreted structural contact where local artisanal mining activityhad shown the presence of high grade gold associated with quartz veining inaltered porphyry and metasedimentary rocks. Geophysical interpretation ofairborne magnetometry had indicated a strong structural zone associated withextensive potassic alteration zones, which often define gold bearing structures.Some 2.4 kilometres to the northwest of the drilled area, there exists veryextensive artisanal alluvial workings which have yielded abundant grains ofcoarse gold, apparently of local origin. The drilling programme intersected mineralised, altered porphyry in the vicinityof the hard rock artisanal workings. The best intersection was 21 metresgrading 1.12 grams per tonne gold in BKRC007, which shows the potentiallyextensive nature of the mineralised lithologies. The mineralizationintersected is encouraging for a first pass drill programme, and it is nowbelieved that further work will be required to establish the hardrock source ofthe alluvial gold to the northwest. The Sanankoro target is one of a number of targets which it is planned to drillunder the terms of the Framework Agreement with the Gold Fields subsidiary. Aswell as follow up drilling on the Sanankoro target, it is planned to drill atleast two additional targets, one on each of the Farasaba and Sanioumaleconcessions, during the coming field season. Glencar will also be conducting extensive drilling programmes on its 95% ownedKomana West prospect where significant high grade gold intersections havealready been made in two drilling programmes completed in 2006. Grades of 55.19grams per tonne (uncut) over 20 metres and 11 metres at 41.84 grams per tonne(uncut) were reported from these programmes and there is considerable potentialfor extension to the strike and depth extent of the known deposit. Theobjective of the forthcoming drill programmes will be to prove up the goldresource within the prospect. Hugh McCullough, EurGeol., PGeo, Managing Director of Glencar, is a member ofthe Institute of Geologists of Ireland. He is a qualified person as defined inthe Guidance Note for Mining, Oil and Gas Companies, March 2006, of the LondonStock Exchange. He has reviewed and approved the technical informationcontained in this announcement. For further information, please contact: Glencar Mining plcHugh McCullough, Managing DirectorTel: +353 1 661 9974e-mail: info@glencarmining.ie Heneghan PRRachel WatchornTel: +353 1 6607395e-mail: rachel@hpr.ie This information is provided by RNS The company news service from the London Stock Exchange