Adamus extends [Ghana] mineralization, reviews operations
2006-01-31 06:41 ET - News Release
Mr. Hamish Halliday reports
ADAMUS RESOURCES SECOND QUARTER ACTIVITIES AND CASH FLOW REPORT
Adamus Resources Ltd. has released its activities and cash flow report for the quarter ended Dec. 31, 2005. Full copies of the reports are available on the company's website or on Stockwatch SEDAR files.
Highlights:
* Adamus agrees to acquire neighbouring project containing consistent high-grade, gold mineralization, including drill intersections of six metres at 148 grams per tonne, five metres at 71.7 grams per tonne and 14 metres at 10.1 grams per tonne gold.
* Drilling targeting the Akanko prospect, situated on the northern extension of the Salman trend, identifies consistent gold mineralization including intersections of 19 metres at 2.38 grams per tonne, 11 metres at 2.14 grams per tonne and five metres at 3.59 grams per tonne gold.
* Drilling at Akanko also discovers high-grade, reef-style gold mineralization east of the main Salman shear, with first-pass reverse-circulation drilling returning intersections up to seven metres at 11.2 grams per tonne gold.
* Resource drilling at Salman, targeting the Footwall lode, successfully extends the strike of mineralization to 450 metres, with RC intersections of 11 metres at 4.07 grams per tonne, 11 metres at 3.24 and seven metres at 6.24 grams per tonne gold.
Project review
The December quarter saw the continuation of a comprehensive diamond core and RC drill program, targeting extensions to both the Salman and Anwia deposits. The drill program has been continuing since early October, 2005, and has already successfully identified new zones of gold mineralization, potentially adding significant resource ounces to the fast-growing Southern Ashanti gold project.
The majority of drilling during the quarter focused on the Akanko prospect, situated on the northern extension of the main Salman shear. First-pass RC drilling tested both the main Salman Shear zone, as well as several subparallel zones associated with the historic Akanko mine. Results successfully identified several zones of significant mineralization hosted within the main Salman shear, as well as high-grade, reef-style mineralization proximal to the historic Akanko mine.
During the December quarter, the company continued to identify and evaluate acquisition opportunities with the potential to add high-grade resources to the existing resource base of the Southern Ashanti gold project. On Jan. 18, 2006, the company announced that it had entered into an agreement to acquire the Anwia South project, subject to certain conditions precedent. Following completion Adamus will control 100 per cent of tenure immediate adjacent to the company's current Anwia deposit. The new acquisition already hosts consistent high-grade gold mineralization and has the potential to substantially enhance the economics of the Southern Ashanti gold project.
With a scoping study currently under way, success from recent exploration activity at Akanko and a new acquisition pending, the company is well placed to make a decision on the future development of the Southern Ashanti gold project.
Salman deposit
The continuing focus for the company at the Salman deposit has been to drill test an extensive mineralized system known as the Salman trend, which extends over at least 8.5 kilometres of strike. Previous drilling completed by Adamus has already identified broad, consistent zones of gold mineralization throughout the trend, including the Central and Northern zones.
By December, 2004, the company had completed of a major RC drilling campaign consisting of about 35,000 metres of drilling, over a 15-month period. The program comprehensively drill tested approximately 5.0 kilometres of the current 8.5 kilometres of strike and provided sufficient density of drill data to allow the completion of a detailed resource estimation.
TABLE 1:
SUMMARY OF RESOURCE ESTIMATE FOR
THE SALMAN DEPOSIT AT 1.0 GRA
PER TONNE AU COG -- MARCH, 2005
Contained
Category Tonnage Gold ounces Au
mmt gpt
Measured 2.8 2.2 190,000
Indicated 6.9 1.9 420,000
Measured and
indicated 9.6 2.0 610,000
Inferred 2.2 1.7 120,000
Note: For full details on the key assumptions, parameters and methods used to estimate the mineral resource, please refer to the resource upgrade announcements in Stockwatch dated Feb. 25, 2005, and March 24, 2005, and the technical report announcement in Stockwatch dated March 29, 2005, all of which are available on Stockwatch SEDAR files.
The December quarter of 2005 saw the commencement of a second major drilling campaign, focused on the remaining 3.5 kilometres of strike of northern extension of the Salman shear. This area, known as Akanko, also contained an historic underground mine, which had seen no significant modern exploration.
Drilling initially focused on the main Salman shear, which had been defined through geological mapping, soil sampling and trenching. Results identified significant gold mineralization associated with the shear zone, including intersections of 19 metres at 2.38 grams per tonne, 11 metres at 2.14 grams per tonne and five metres at 3.59 grams per tonne gold -- all occurring less than 40 metres from surface.
The Akanko program also included first pass drilling targeting the historic mine area and associated soil anomalies located to the east of the main Salman shear. The drilling intersected high-grade, reef-style mineralization, suggesting the Akanko area has the potential to host additional resource ounces outside the main shear zone.
December also saw resource drilling at Salman successfully extend the strike of mineralization associated with the Footwall lode. The Footwall lode, discovered in 2005, is located about 200 metres east of the main Salman shear. Recent drilling extended the strike of the mineralization to 450 metres, with RC intersections of 11 metres at 4.07 grams per tonne, 11 metres at 3.24 and seven metres at 6.24 grams per tonne gold.
Anwia deposit
The Anwia deposit, purchased from Semafo Mining in early 2004, is located approximately nine kilometres west of the Salman deposit. The surface expression of the deposit consists of extensive, shallow dipping quartz veining, extending over several hundred metres of strike. Previous explorers completed a number of exploration programs involving both RC and diamond core drilling, which intersected multiple zones of gold mineralization within the top 150 metres.
Following Adamus's first resource estimate for the Anwia deposit in July, 2004, the company focused its efforts on extending mineralization at depth and building a more detailed geological model for the deposit. A comprehensive diamond core drilling program in late 2004 and early 2005 led to a 100-per-cent resource upgrade in March, 2005.
TABLE 2:
SUMMARY OF RESOURCE ESTIMATE
FOR THE ANWIA DEPOSIT
AT 1.0 GRAM PER TONNE AU COG
MARCH, 2005
Contained
Category Tonnage Gold ounces Au
mmt gpt
Measured 3.0 2.4 230,000
Indicated 2.5 2.2 180,000
Measured and
indicated 5.5 2.3 410,000
Inferred 0.8 1.7 44,000
Activities during the December quarter of 2005 focused on generating new targets proximal to the Anwia deposit. The company used IP (induced polarization) geophysics to generate both chargeable and resistive targets. Anomalies were identified at both the southeastern and northwestern margins of the Anwia deposit. Drill testing of these anomalies has now been scheduled for early 2006.
In addition to the geophysical survey at the Anwia deposit, the company also completed a one-kilometre square survey at the Nfutu prospect, located three kilometres east of Anwia. The survey identified a large anomaly that was both resistive and chargeable. Two diamond core holes were planned to test the anomaly, one of which has now been completed. The completed drill hole intersected carbonate altered greywacke and quartz veining, but no gold mineralization. The second drill hole will be completed in the first quarter of 2006.
Regional exploration
Regional exploration during the December quarter consisted of infill soil sampling and RC drilling at the Avrebo prospect. Avrebo, discovered in early 2005, is located 10 kilometres southeast of the Salman deposit and consists of a 100-part-per-billion gold-in-soil anomaly, extending over a combined strike length of six kilometres.
December saw the company complete its first comprehensive RC drill program, consisting of 15 drill holes, targeting one of the higher-grade zones within the broader soil anomaly. The program identified broad zones of gold mineralization including: AVRC 008 nine metres at 1.96 grams per tonne gold; AVRC 009 four metres at 2.12 grams per tonne gold; and AVRC 018 eight metres at 3.85 grams per tonne gold, including one metre at 25.0 grams per tonne gold .
Concurrent with the above program, the company completed infill soil sampling, targeting an anomaly about two kilometres to the north of the drilling. The results identified an almost continuous over-500-part-per-billion gold-in-soil anomaly, extending over 500 metres of strike. Maximum values recorded within the anomaly included 1,178 parts per billion gold.
With broad zones of significant gold mineralization already identified within the prospect, the company views the new anomaly as a priority target for testing with both trenching and drilling.
AI
