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2 Nov 2012 07:00
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2 November 2012
Stellar Resources plc
(the "Company")
Operational Update on Gold Mines of Wales (Operations) Ltd
In its interim results announcement released on 26 September 2012, the Company stated that Gold Mines of Wales (Operations) Ltd ("GMOW")Β was undertaking further work programmes on its licence interest in the Dolgellau Gold belt and that it would keep the market informed of progress. The management of GMOW has today provided the Company with the following operational update.
Β·; During the summer field season, GMOW has employed 5 geologists to undertake the first systematic mapping and sampling of the gold outcrops along a 27km strike length underlaying its licence interest. Working relationships between GMOW and Cardiff University Earth Science Department and SRK Cardiff are underway. SRK Cardiff is sponsoring a Graduate Geologist to complete his MSC thesis on GMOW's exploration ground.
Β·; Sampling has been undertaken on both surface of all the historical workings and the underground workings of the large Clogau gold mine.
Β·; These samples are currently being assayed at Stewart Group's Omac Laboratories in Ireland.
Β·; Underground mapping and correlation with the historical information has indicated the existence of a significant extension of the high grade John Hughes stope, which extends from the Tyn n cornel level to the Llechfraith level in the Clogau Formation.
Β·; The potential exists for 10,000 tonnes of a similar lode structure between the levels and possible gold bearing mineralisation between the main JH lode structure and the different lode mined on the Llechfraith level.
Β·; This is to be tested with a series of underground diamond drill holes from the Tyn n Cornel in order to establish an initial resource target.
Β·; GMOW intends to dewater areas along strike beyond no 1 shaft on this level and has begun repairing the hanging wall damage at the Llechfraith adit entrance in order to gain better access.
Β·; Once this is achieved, a cleanup of historical blasted material left in situ will be undertaken.Β Sampling and panning has proved the existence of gold in drainage areas within the mineΒ and this will be processed through a small pilot plant that GMOW will establish on site.
Β·; Β In addition, geophysical data has been requested from the British Geological Survey and once received this will be subject to a new geophysical interpretation with a view to undertaking a new high resolution survey to obtain a better understanding of the widespread gold mineralisation within the goldbelt.
Β·; It is anticipated that this data will provide drill targets at both historical workings and areas currently under soil cover that logically should be extensions of the known mineralisation but due to the lack of outcrop have not been previously explored.
Β·; In addition, the Gwynffed mine last worked in the 1990's will be reopened and subject to similar mapping and evaluation to ascertain its potential for a significant gold resource being developed when the mine closed when the gold price was at historical lows.
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For further enquiries, please contact:
Β
Stellar Resources plc
David Lenigas
Don Strang
Ed McDermott +44 (0) 20 7440 0640
Β
Northland Capital Partners Limited (Nominated Adviser & Broker)
Luke Cairns
Edward Hutton +44 (0) 20 7796 8800
Β
Pelham Bell Pottinger - (Investor and Media Relations)
Charlie Vivian
Daniel ThΓΆle +44 (0) 20 7861 3232
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