Sirius Minerals Regulatory News (SXX)

1 Aug 2005 12:01

Sirius Exploration plc01 August 2005 RELEASED ON BEHALF OF: Sirius Exploration Plc AUGUST 1, 2005 SIRIUS EXPLORATION ADMITTED TO AIM AS DRILLING BEGINS AT KADIICA COPPER PROJECT IN MACEDONIA • Company Raises £500,000 To Fund Exploration in Macedonia with Phelps Dodge • Objective Is To Test For Both Supergene Blanket And Deeper Ore At Kadiica • Work Programme At Osogovo Will Be Initiated Later Sirius Exploration Plc, which lists on AIM today, has already commenced drillingat one of the two potentially large copper deposits which it is exploring inMacedonia under letter agreements with Phelps Dodge Exploration Corporation("Phelps Dodge"). Sirius has raised £500,000 through a placement of shares at 5peach to fund this programme, in which Sirius' input is managed by Nick Badham,managing director of Sirius and former chief geologist of RTZ Mining andExploration. Historic exploration, together with work done by Phelps Dodge over the past twoyears, has established the presence of mineralisation at both Kadiica andOsogovo. These are two potentially economic porphyry copper systems situated inthe highly prospective and productive Tertiary porphyry mineralised belt ofMacedonia. The Kadiica area has been known historically for iron prospecting (noproduction) of large, low-grade surface deposits called ferricretes whichaveraged around 32p.c. iron and 500ppm-900ppm copper. Phelps Dodge speculatedthat these ferricretes were an indication of strong leaching and that their ironcontent was likely to have been derived from primary iron sulphides higher onthe mountain which were oxidised, leached and re-deposited down-slope. Thisprocess left little surface indication of potential primary base metalmineralisation. This interpretation is supported by limited, widely spaced drilling completed byPhelps Dodge in 2002 which demonstrated the presence of extensive secondarycopper enrichment (a supergene blanket) beneath the leached cap in the centralarea of the Kadiica claim. A recent ground magnetics survey confirms anextensive altered and sulfidised (demagnetised) zone. Preliminary work alsosuggests at least two phases of mineralisation may be present, and that primaryporphyry copper mineralisation may underlie the supergene blanket. The drilling programme now in progress at Kadiica comprises a number of deepholes designed to delineate the extent of the supergene blanket and determinethe nature and size of any underlying mineralisation. Initial, preliminaryresults of the drilling should be available in late September or early October. /2 SIRIUS EXPLORATION 2 The company's second project is Osogovo (Red Ridge), where exploration by PhelpsDodge in 2002-03 identified a porphyry copper system surrounded bylead-zinc-silver-type mineralisation. The target structure at Osogovo isadjacent to the old Sasa lead-zinc-silver mine, and exploration under the letteragreements with Phelps Dodge will begin when results of the initial drilling atKadiica have been assessed. The primary objective of the exploration at Kadiica and Osogovo is to determinewhether there is an economic ore body present. If Phelps Dodge exploits anydiscovery, Sirius is reimbursed double its exploration expenditure on thatproperty and receives a 1.5p.c. NSR royalty on production in perpetuity.Otherwise, Sirius will be entitled to exploit it and Phelps Dodge will receive a1p.c. NSR royalty on production. Phelps Dodge has acquired approximately 9p.c. of the Sirius ordinary sharecapital (pre-listing) under the letter agreements. Chairman of Sirius is Richard Poulden, a lawyer with a background in corporatefinance and early-stage business. He has experience in the natural resourcesindustry through oil and gas projects in the Americas and the Middle East. Further Information: Richard Poulden, Chairman, Sirius Exploration Plc. Tel: 01453 511900/07769-721512richard.poulden@siriusexploration.comRoland Cornish, Beaumont Cornish Limited. Tel: 020 7628 3396.Ron Marshman, City of London PR Ltd. Tel: 020-7628-5518 ron@mining-investor.comJohn Greenhalgh, City of London PR Ltd. Tel: 020-7628-5518john@cityoflondongroup.comWebsite: www.siriusexploration.com This information is provided by RNS The company news service from the London Stock Exchange