🕐20.08.09 - 06:59 Uhr

Anchor Resources (AHR) - Drilling successfully completed



Anchor Resources Ltd - ASX Announcement 20 August 2009 1
ASX/MEDIA RELEASE
THURSDAY, 20 AUGUST 2009
Drilling Successfully Completed
Anchor Resources Ltd (ASX code: AHR) is pleased to announce that its initial resource expansion drilling program at the Wild Cattle Creek antimony deposit has been successfully completed.
Highlights
• Extended ten hole program now complete
• Additional broad intervals of antimony-gold-tungsten mineralisation encountered
• Drilling demonstrates excellent continuity of the Wild Cattle Creek deposit
• The deposit remains open
• Results pending from final four holes
Anchor has successfully completed its ten-hole drilling program at the Wild Cattle Creek antimony-tungsten-gold deposit, part of its 100% owned Bielsdown Project in northeastern NSW.

The program is testing depth and strike extensions to the existing resource of 459,000 tonnes at 3.02% antimony (Indicated and Inferred).
Assays have been received from the first six holes.

These results confirm the tenor of antimony mineralisation outlined by previous explorers, as well as demonstrating that potentially significant gold and tungsten is present (historical drillholes were not assayed for tungsten and only sporadically tested for gold).

Best results from the latest (previously unreported) holes in the program are outlined below:
• 09WRD01 - 11.5m at 2.32% antimony, including
o 4.4m at 5.00% antimony and 0.85g/t gold
plus a second zone comprising
o 2m at 0.81% tungsten
• 09WRD05 - 16.6m at 0.88% antimony and 0.26% tungsten, including
o 4m at 2.00% antimony and 0.40% tungsten
plus a second zone comprising
o 5.8m at 1.01% antimony and 0.51g/t gold
Managing Director, Trevor Woolfe, commented "The Wild Cattle Creek drill program has exceeded our expectations.

The high grade antimony zone has been enhanced by the discovery of a broader mineralised envelope containing stibnite, tungsten and gold.

Resource re-evaluation will follow receipt of results from the remaining holes."
Anchor Resources Ltd - ASX Announcement 20 August 2009 2
The final holes in the program targeted down plunge extensions to the mineralisation and have demonstrated a robust and continuous system, with the hole pierce points outlined on the following schematic long section.
Hole 09WRD08 successfully intersected the target zone consisting of a stibnite mineralised breccia over a 5.4m downhole width.

The hole targeted a position some 50m below 09WDD02 but ultimately lifted to be closer to that hole.
Hole 09WRD09 encountered the target breccia zone over 14.4m, variably mineralised with stibnite-pyrite-arsenopyrite.

The presence of clay in the breccia suggests that the intersection may be nearing the edge of the westerly plunging mineralised structure.
Hole 09WRD10 stepped out 30m west of hole 09WRD05 and successfully tested the western extension of the target breccia zone.

The breccia is surrounded by a broader zone of stringer vein type mineralisation containing stibnite and tungsten minerals (wolframite>scheelite).
Details of the latest three drillholes for which results have been received are in the following table:
Drillhole
Northing
Easting
Dip
Azimuth
Total Depth
09WRD01
6,656,280
472,895
-59o
189o
185.0m
09WRD05
6,656,311
472,836
-55o
180o
221.0m
09WDD06
6,656,249
472,850
-55o
180o
99.8m
The latest results received from Wild Cattle Creek are shown in the following table:
Drillhole
From (m)
To (m)
Interval
Antimony (%)
Tungsten (%)
Gold (g/t)
09WRD01
150.0
161.5
11.5m
2.32
NA
0.34
(incl.)
156.5
160.9
4.4m
5.00
NA
0.85
167.0
169.0
2.0m
NA
0.81
NA
09WRD05
169.0
174.8
5.8m
1.01
NA
0.51
177.4
194.0
16.6m
0.88
0.26
NA
(incl.)
189.0
193.0
4.0m
2.00
0.40
NA
09WDD06 *
58.8
60.4
1.6m
NA
0.37
0.38
70
71
1.0m
1.95
NA
NA
75
76
1.0m
2.14
NA
NA
* Note: Core recovery from 09WDD06 was generally less than 50% through the mineralised zones
Anchor Resources Ltd - ASX Announcement 20 August 2009 3
Anchor Resources Ltd - ASX Announcement 20 August 2009 4
Schematic cross sections illustrating the latest results from holes 09WRD01 and 09WRD05 are as follows:
Anchor Resources Ltd - ASX Announcement 20 August 2009 5
Anchor Resources Ltd - ASX Announcement 20 August 2009 6
Previously reported results from the current drill program are shown in the following table:
Drillhole
From (m)
To (m)
Interval
Antimony (%)
Tungsten (%)
Gold (g/t)
09WDD02
123.0
134.0
11.0m
1.03
0.02
0.26
(incl.)
129.2
130.0
0.8m
0.32
0.22
1.15
132.0
133.1
1.1m
4.38
NA
0.64
09WDD03
99.0
119.0
20.0m
2.65
NA
0.18
(incl.)
99.0
106.0
7.0m
6.04
NA
0.44
100.75
104.6
3.85m
10.13
NA
0.59
114.0
118.0
4.0m
1.07
0.30
NA
09WRD04
83.0
93.0
10.0m
3.48
0.06
0.20
(incl.)
89.0
91.5
2.5m
7.24
NA
0.57
99.3
104.4
5.1m
2.79
0.03
NA
(incl.)
99.3
100.2
0.9m
12.7
NA
0.15
Sampling was conducted on a metre by metre basis, or to geological boundaries as applicable.

Samples were analysed at the ALS Chemex laboratory in Brisbane for a suite of multi-elements including antimony, gold and tungsten.

Gold was analysed by fire assay/AAS (Au-AA24) while the majority of multi-element analyses were done by aqua regia digest (ME-ICP61), with subsequent XRF analysis of higher grade antimony and tungsten results by XRF07.

Mercury was analysed sporadically by ME-ICP41.
Background
The antimony focus has returned to the New England region (NSW) over recent years, with the commencement of underground mining at Straits Resources" Hillgrove antimony-gold operation.
Anchor holds 100% of the Bielsdown Project (EL 6388), located 40km west of Coffs Harbour, which includes the old Wild Cattle Creek antimony mine.

First production from the mine was in the late 1800s, with mining and exploration undertaken intermittently since that time.

Historically, drill testing has been carried out in two phases, firstly during the 1960s, with further drilling in the mid 1990s.
In early 2007, Anchor completed a compilation of historical exploration data to provide a resource estimate compliant with guidelines as defined in the JORC Code (2004) for the Wild Cattle Creek antimony (Sb) deposit.

The study, by Bowral based resource consultants GeoRes, estimated the following resource using a 1.0% Sb cutoff, contained primarily within the first 100m below surface:
Anchor Resources Ltd - ASX Announcement 20 August 2009 7
Resource Category
Tonnes (t)
Sb grade (%)
Contained Sb (t)
Indicated
272,000
2.93
8,000
Inferred
187,000
3.15
5,900
Total
459,000
3.02
13,900
Antimony Price
Anchor"s belief in the long term prospects for the antimony market is supported by robust global antimony prices.

Although antimony prices weakened in the beginning of 2009, prices have subsequently rebounded well above longer term averages.
To put antimony pricing into context, the graph below illustrates the close relationship between antimony and copper prices over the past 15 years.

Not only have antimony and copper price trends shown a strong historical correlation, but the absolute prices of both commodities have tracked extremely closely.

Antimony recently traded at around US$2.60/lb (or ~US$5,700/t), with copper currently trading on LME around $2.70/lb.

Antimony vs Copper Prices05010015020025030035040045001-Jan-9401-Jan-9501-Jan-9601-Jan-9701-Jan-9801-Jan-9901-Jan-0001-Jan-0101-Jan-0201-Jan-0301-Jan-0401-Jan-0501-Jan-0601-Jan-0701-Jan-0801-Jan-09US cents per lbAntimonyCopperAntimony - New York dealer averageCopper - LME spot monthly average
Anchor Resources Ltd - ASX Announcement 20 August 2009 8
What is antimony?
Stibnite (Sb2S3) is the main ore mineral of the element antimony (Sb).

Antimony ores are beneficiated and processed into antimony metal or oxide.

Antimony mine production is concentrated very heavily in China (85 % of world output in 2006).

Antimony is primarily used as an enhancer of flame retardants or a hardening and strengthening agent for lead and zinc alloys.

These alloys are used in lead storage batteries, solder, sheet and pipe metal, bearings, castings, ammunition and pewter, particularly for use in wet-cell batteries.
For further information, contact Trevor Woolfe (Managing Director) at Anchor Resources Limited in Sydney on 02 9279 1231.
Yours sincerely
ANCHOR RESOURCES LIMITED
Trevor Woolfe
Managing Director
Anchor Resources (ASX code: AHR) is a Sydney based mineral exploration company with projects located in New South Wales and Queensland, providing exposure to commodities including gold, antimony, tungsten, copper, and uranium.
Declaration and JORC Compliance: The information in this report relating to Exploration Results is based on information compiled by Trevor Woolfe BSc(Hons), MAusIMM.

Mr Woolfe is Managing Director and consultant to Anchor Resources Limited.

Mr Woolfe has sufficient experience relevant to the assessment of this style of mineralisation to qualify as a Competent Person as defined in the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves - The JORC Code".

Mr Woolfe consents to the inclusion of the information in the report in the form and context in which it appears.
The information in this report that relates to Mineral Resources or Ore Reserves at Bielsdown is based on information compiled by Robin Rankin, a Member of the AusIMM, and registered as a Chartered Professional Geologist (CPGeo).

Robin Rankin is Principal Geologist and operator of GeoRes.

He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves - The JORC Code".

He consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.




Products & Services | Jobs