Mining potential revealed
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.’’
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.