Proactivinvestor:
Horseshoe Metals discovers more high grade near surface copper at Horseshoe Lights
Monday, July 30, 2012 by John Phillips
The continued very high grade copper intersections from Horseshoe Lights bode well for an upgraded resource at the end of 2012. Neil Marston, managing director, told Proactive Investors today results from another ten holes in the area are 'due within weeks'.
Horseshoe Metals (ASX: HOR) is continuing to unleash the power of the historic Horseshoe Lights open pit with a string of high grade near surface copper intersections.
New reverse circulation highlights include; 14 metres at 3.9% copper from 25 metres, including 3 metres at 6.2% copper.
Drilling continues to target copper mineralisation north of the existing open pit in the North West, Main and Motters zones.
The importance of the new discoveries is that the shallow copper mineralisation has been extended up to 300 metres north of the existing open pit, and they are supported by results from earlier in the month.
The first five holes of the current program delivered:
- 16 metres at 3.0% copper from 60 metres, including 10 metres at 4.4% copper and 0.1g/t gold and 1 metre at 14.6% copper and 0.3g/t gold;
- 18 metres at 1.5% copper, including 3 metres at 3.4% copper and 0.1g/t gold; and
- 14 metres at 0.5% copper.
Not lost on astute investors, more assays are forecast for delivery to the market in August.
Neil Marston, managing director, told Proactive Investors today results from another ten holes in the area are 'due within weeks'.
All of the new copper discoveries will support an increased Resource estimate to be delivered before the end of 2012, which will be followed by a Preliminary Feasibility Study.
Horseshoe Lights currently has a resource of; 8.6 million tonnes at 1.06% copper and 0.13g/t gold at 0.5% cut-off grade for 91,000 tonnes of copper and 37,400 gold ounces.
Future work program
The company has clearly outlines the plan for the remainder of the year at Horseshoe Lights, which includes:
- Prove up additional mineral resources to the north of the existing open pit, including under the North Waste Dump. The North Waste Dump lies immediately along strike to the north of the open pit and sits over a very broad alteration zone which extends approximately 400m in width from the North West Stringer Zone in the west to the Motters Zone in the east;
- Drill deeper holes in areas where copper/gold mineralisation has previously been intersected in the North West Stringer Zone and the Main Zone;
- Test for deep, high grade copper/gold zones, potentially located down dip and down plunge of the Main Zone, which will be of sufficient grade to support underground mining; and
- Follow up shallow exploration targets outside of the immediate pit area which have not been adequately tested by previous exploration efforts.
Major discoveries in the area
The region in which Horseshoe is currently operating continues to emerge as a major copper district in Australia, highlighted by the fact that Sandfire Resources’ (ASX: SFR) massive DeGrussa Copper-Gold mine is less than 100 kilometres away.
Add to the mix the location 90 kilometres north of Ventnor Resources' (ASX: VRX) Thaduna Copper Project, which recently announced some stellar results including: 37 metres at 2.61% copper from 111 metres, including 10 metres at 7.53% copper; and 62 metres at 2.19% copper from 125 metres, including 32 metres at 3.1% copper.
Analysis
Earlier in the year private investor, Investmet Limited, elected to invest up to A$4.1 million Horseshoe Metals. For investors in the know out there, Investmet was an early stage investor in Northern Star Resources (ASX: NST) at a few cents and it hit over $1.00.
Horseshoe Metals currently has $2.5 million in cash which is sufficient to conduct all the drilling programs through the end of 2012.
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