Min­ing po­ten­tial re­vealed

Townsville Bulletin - - Investor - by Martin Rasini martin. rasini@ townsville­bul­letin. com. au

DIS­COV­ERY: Ka­gara has done a deal with Mun­gana over a new cop­per zone MET­ALS miner Ka­gara has struck a d e a l w i t h s u b s i d i a r y Mu n g a n a Gold­mines to as­sume full own­er­ship of a newly dis­cov­ered cop­per zone at the Red Dome pro­ject in the Chilla­goe re­gion where high-grade min­er­al­i­sa­tion has been found.

Ka­gara man­ag­ing di­rec­tor Geoff Day said yes­ter­day dis­cov­ery of the Grif­fiths Hill Cop­per Zone high­lighted the prospec­tiv­ity of its North Queens­land ten­e­ments and the out­stand­ing po­ten­tial for fu­ture dis­cov­er­ies.

Drilling of the zone, be­low the east­ern end of the Red Dome open-pit mine, has un­cov­ered 17m at 4.3 per cent cop­per, in­clud­ing finds of 8.4m at 7.4 per cent and 12.9m at 7.8 per cent.

‘‘ Drilling is con­tin­u­ing around the clock to fur­ther de­lin­eate this ex­cit­ing new zone, which has the po­ten­tial to be­come an im­por­tant part of our cop­per growth story in North Queens­land,’’ said Mr Day, who joined Ka­gara only re­cently.

‘ ‘ This d i s c o v e r y r e i nf o r c e s t he prospec­tiv­ity of the 6km Red Dome mine cor­ri­dor, strength­en­ing Ka­gara’s po­ten­tial pro­ject de­vel­op­ment pipe­line.’’

The new

zone was

dis­cov­ered

by Mun­gana Gold­mines which last Septem­ber an­nounced a Red Dome drilling pro­gram had in­ter­sected gold min­er­al­i­sa­tion rang­ing from 0.2g/ t to 6.18g/ t, sil­ver ore at den­si­ties up to 179g/ t and cop­per min­er­al­i­sa­tion up to 6.5 per cent.

Mun­gana said at the time it was tar­get­ing a re­source able to sus­tain an­nual pro­duc­tion of 150,000 ounces of gold, and 15,000 tonnes of cop­per.

Ka­gara last June floated Mun­gana as a ve­hi­cle for its Mun­gana and Red Dome de­posits fol­low­ing a $ 56.5 mil­lion ini­tial pub­lic of­fer­ing which left it re­tain­ing a 62 per cent stake in es­crow for two years.

The two de­posits at the time were said to have com­bined mea­sured, in­di­cated and in­ferred re­sources of 1.85 mil­lion ounces of gold, 180,000 tonnes of cop­per and 13 mil­lion ounces of sil­ver, along with mine in­fra­struc­ture.

The Red Dome pro­ject lies about 160km north­west of Ka­gara’s zinc and cop­per treat­ment fa­cil­i­ties at Mt Gar­net and close to the par­tially com­pleted treat­ment fa­cil­i­ties at Mun­gana.

Ka­gara’s Mr Day, who has vis­ited Red Dome and re­cently re­turned from a tour of North Amer­ica and Europe, says in a letter to share­hold­ers he be­lieves there is con­sid­er­able up­side.

‘‘ The clear mes­sage from my re­cent site tour and in­vestor brief­ings was that Ka­gara has ac­cess to very prospec­tive ten­e­ment hold­ings, backed up by great as­sets and great peo­ple,’’ he said.

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