16 May 2012 09:14
Caspian Holdings Plc
16 May 2012
Caspian Holdings Plc
("Caspian" or the "Company")
High Grade Assay Results Continue at La Parrilla Tungsten Project
Significant intersections from the second hole IP-02 include:
- 18 metres from 230 to 248m of 0.97% WO3
- 10 metres from 174 to 183m of 0.17% WO3
Caspian (AIM:CSH), is pleased to provide a further update on drilling at its La Parrilla tungsten project, located in southwest Spain, in which it has an option to purchase a 100% interest. La Parrilla, a former producing open pit mine, closed in the 1980s.
Caspian is currently drilling hole 4 out of five holes in a 1,500-metre diamond core drilling campaign to appraise extensions to the La Parrilla orebody, which is targeting an open zone to the west of the existing open pit. To date, a total of 1,172.80m has been drilled. Hole 3 has been completed and the Company awaits assay results.
Assay results have been received for the second hole, IP-02, which indicate thick high-grade intersections well above the average SRK resource grade of 0.09% tungsten trioxide (WO3). As with the first hole announced in April 2012, the second hole has intersected visible tungsten mineralisation, in particular the deepest intersection which corresponds with the deepest in IP-01.
HOLE | FROM | TO | INTERVAL | TRUE THICKNESS | WO3 | Sn |
m | m | m | m | % | % | |
IP-02 | 52.00 | 62.00 | 10.00 | 6.25 | 0.0422 | 0.0202 |
IP-02 | 140.00 | 164.00 | 24.00 | 15.00 | 0.0595 | 0.0389 |
IP-02 | 174.00 | 183.00 | 9.60 | 6.00 | 0.1719 | 0.0234 |
IP-02 | 192.00 | 198.00 | 6.00 | 3.75 | 0.0689 | 0.0048 |
IP-02 | 230.00 | 248.00 | 18.00 | 11.25 | 0.9708 | 0.0185 |
Significant mineralisation can be seen in all holes drilled to date. Initial indications suggest strong correlation of mineralised zones between holes.
Michael Masterman, Chairman, commented: "We are making very good progress with the drilling programme at La Parrilla, with strong indications of continuity of high grades through the western extension area."
A detailed map of the La Parrilla site including the four drill hole locations can be found on the Company's website at http://www.caspianoil.co.uk/projects/la-parrilla/
Enquiries:
Caspian Holdings Plc | Grant Thornton Corporate Finance - Nomad |
Michael Masterman | Gerry Beaney / Melanie Frean / Jen Hatter |
T: +44 (0) 7791 288381 | T: +44 (0) 20 7383 5100 |
www.caspianoil.co.uk | |
Simple Investments - Broker | Gable Communications |
Andy Thacker / Nick Emerson | Justine James |
T: +44 (0) 1483 413500 | T: +44 (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 approval documents submitted to the mining authorities. All approvals are expected to be granted by the end of Q3 2012. 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 Caspian.
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.