28 Jan 2013 07:00
28 January 2013
W Resources Plc
("W" or the "Company")
Drilling Update - La Parrilla IP07, IP08 and IP09
W Resources (AIM:WRES), the tungsten and gold exploration and development company, announces the latest update on drilling at its La Parrilla tungsten project, located in southwest Spain, in which it has an exclusive option to purchase a 100% interest.
Drilling of the extension of the La Parrilla ore body is now complete, drill results are being progressively received and W expects to complete the compilation of a new JORC compliant resource estimate in the second quarter of 2013.
Assay results have been confirmed for core Holes 7, 8 and 9 of the extended La Parrilla drilling programme. Key highlights include 8 metres at 0.29% Tungsten Trioxide (WO3) in hole 9, three times the average grade of the current La Parrilla resource in hole 9. Holes 7, 8 and 9 were drilled to final depths of 200.0m, 200.0m and 250.50m and are located 640m, 470m and 200m, respectively, to the northwest of the main ore body and continue the series of strong results from the extension drilling programme.
Chairman of W, Michael Masterman, commented: "The Board continues to be encouraged by the results on the extension drilling programme, with the process of further delineating a more significant increase in both the grade and tonnage of the resource at La Parrilla nearing completion. Drilling has been completed on budget and on schedule and we expect positive results from the re-estimation of the resources incorporating these results."
With the final approval for the La Parrilla tailings project granted by the Mining Department of the regional authority of the Junta de Extremadura, (announced 22 January) the Company is making good progress towards first production in H2 2013.
W has completed 11 holes on its drilling programme with assays received on holes 1-9. The full weighted averaged results of Holes 7, 8 and 9 are shown in the tables below:
DRILL HOLE IP-09 (VERTICAL) 250.50 m LONG | |||||
FROM | TO | INT | TRUE THICKNESS | WO3 % | Sn % |
86.00 | 94.00 | 8.00 | 6.93 | 0.286 | 0.011 |
118.00 | 122.00 | 4.00 | 3.46 | 0.063 | 0.089 |
184.00 | 200.00 | 16.00 | 13.86 | 0.081 | 0.007 |
228.00 | 236.00 | 8.00 | 6.93 | 0.114 | 0.011 |
DRILL HOLE IP-08 (VERTICAL) 200.0 m LONG | |||||
FROM | TO | INT | TRUE THICKNESS | WO3 % | Sn % |
37.00 | 43.00 | 6.00 | 3.00 | 0.132 | 0.003 |
113.00 | 119.00 | 6.00 | 2.05 | 0.098 | 0.005 |
145.00 | 151.00 | 6.00 | 5.46 | 0.053 | 0.004 |
DRILL HOLE IP-07 (VERTICAL) 200.0 m LONG | |||||
FROM | TO | INT | TRUE THICKNESS | WO3 % | Sn % |
69.00 | 77.00 | 8.00 | 5.68 | 0.017 | 0.010 |
109.00 | 117.00 | 8.00 | 4.56 | 0.041 | 0.009 |
109.00 | 111.00 | 2.00 | 1.14 | 0.145 | 0.009 |
The weighted average grades have been calculated for intersections through mineralised envelopes defined by quartz veining and no cut off grade has been used.
A detailed map of the La Parrilla site including the drill hole locations can be found on the Company's website at http://www.wresources.co.uk/projects/la-parrilla/
Enquiries:
W Resources Plc | Grant Thornton Corporate Finance - Nomad |
Michael Masterman | Gerry Beaney / Melanie Frean / Jen Clarke |
T: +44 (0) 20 7193 7463 | T: +44 (0) 20 7383 5100 |
www.wresources.co.uk | |
Simple Investments - Broker | Gable Communications |
Andy Thacker / Nick Emerson | Justine James |
T: +44 (0) 1483 413500 | T: +44 (0) 20 7193 7463 |
www.simple-investments.co.uk | M: +44 (0) 7525 324431 |
About La Parrilla
The La Parrilla project site is situated in the Extremadura region of southwest Spain, in the Provinces of Caceres-Badajoz, approximately 310 km southwest of Madrid. The site is accessed directly from the highway along a 3km asphalt road and is serviced by electricity and water. The project comprises a tungsten mine and a tungsten tailings project. The historic mine resource estimated by SRK in 2008 is 36.0m tonnes at 0.09% WO3, making it one of the largest tungsten deposits in the western world.
The technical design of the La Parrilla tailings project has now been finalised and the final approval has been granted by the Mining Department of the regional authority of the Junta de Extremadura. Annual plant feed will be 330,000 tonnes and annual production is anticipated to be 28,000 MTU Tungsten (W) and 26 tonnes Tin (Sn), which will deliver over €7million per annum in revenue at current tungsten and tin prices. The tailings project is expected to be in production in H2 2013.
The price of tungsten has increased rapidly over the last 3 years by more than double. The La Parrilla tailings deposit and tungsten mine development offer a low cost, high margin resource development opportunity for W Resources.
Sampling, Assaying and Quality Assurance / Quality Control (QA/QC) Measures
Drill sample intervals are reported as metres (m) down hole. True widths of mineralised intersections have been calculated assigning an average dip of the mineralised zones of 45º-55º for hole IP-07, 60º for hole IP-08 and 30º for hole IP-09. All drill core is transported by the Company personnel from drill site to a nearby secure storage facility for logging, by an experienced geologist, and sampling. The core is halved using a rotary diamond blade core saw, with one half of the core sent for analysis, while the other half is retained in the core boxes for reference. Sampling is mainly carried out over two-metre intervals.
All half-core samples are sent for preparation to ALS Minerals facility in Seville (Spain). The resulting pulps are shipped to their laboratory in Vancouver (Canada) for assay using the ME-MS81 method (38 elements by lithium borate fusion and ICP-MS). Samples exceeding the upper detection limit (10,000 ppm W) are re-assayed by the lithium borate fusion and XRF determination ME-XRF10 method. Tungsten assays are reported by ALS Minerals as W and converted to WO3 using a factor of 1.26108.
Reference samples (blanks, duplicates and certified standards) are routinely inserted in each sample batch as quality control measure in addition to the laboratory's own internal QA/QC standards and duplicates.
W Resources changed its name from Caspian Holdings plc in July 2012 to align with its revised strategy focussing on projects in the mining sector.
Technical information in this report has been prepared in accordance with the JORC Code and approved for inclusion by Mr Fernando de la Fuente, who is a "qualified person" in respect of the AIM Rules for Companies with over 37 years experience in the Exploration and Mining Geology industry. Mr de la Fuente holds a B.Sc. in Geology and a MSc in Geology from the University of Granada in Spain. He is also a member of the Spanish College of Geologists (Number 49), the Spanish Society of Mineralogy, founder member of the Spanish Society of Geology, member of the Spanish Association of Applied Geology to Mineral Deposits, member of the Society for Mining, Metallurgy and Exploration, Inc., member of PDAC.