CBH, Sipa: high-grade zinc at Kangaroo Caves
CBH Resources Ltd (ASX code: CBH) today announced RC drilling at the Kangaroo Caves deposit within the Panorama joint venture by Sipa Resources Ltd (ASX code: SRI) had intersected high-grade zinc mineralisation including 20m at 13.7% zinc and 0.2% copper, and 15m at 11.6% zinc and 0.3% copper.
These intersections were recorded in the upper part of the deposit and will be further evaluated for open-cut potential as additional feed for CBH's planned Panorama mill.
Kangaroo Caves is located 6km south of the Sulphur Springs deposit, where CBH is finalising approvals for the construction of a 1.5Mtpa plant scheduled to commence production in early 2009.
Kangaroo Caves forms part of the Panorama exploration JV with Sipa, where CBH is earning a 60 per cent interest by funding $4 million of exploration expenditure over three years in an area covering the 25km strike length of the same highly prospective rocks that hosts the Sulphur Springs deposit.
Total resource for Kangaroo Caves was previously estimated at 1.7 million tonnes at 9.8% zinc and 0.6% copper, but was calculated at a higher underground cut-off grade.
Recent drilling by the JV has focused on the middle to upper section of the Kangaroo Caves deposit, assessing the continuity and controls of shallower mineralisation that might be available for an open cut to supply additional feed to CBH's planned Panorama mill.
Results to date have been good, with strong base metal sulphide concentrations visually recorded in a number of holes in both areas of the deposit.
Of the 17 holes drilled, 12 have intersected semi-massive to massive sulphide mineralisation, with seven holes logged to have a high percentage of zinc sulphides.
