Capital Mining commences drilling in move to add to Cowarra gold resource

Capital Mining (ASX: CMY) has commenced drilling of the first hole in an 8 hole diamond core drilling programme at its 100% owned Cowarra Gold Project area near Bredbo, New South Wales.

The drilling has been designed to provide information aimed at making an addition to the currently defined JORC Inferred resource of 500,000 tonnes at 2.3 g/t gold, containing 37,000 ounces of gold at Cowarra as announced to the market on 20 August 2009.

Results of percussion drilling completed in 2005 by the previous Exploration Licence holder, Atlas Resources Pty Ltd, are being followed up.

The company said these results are encouraging and have included: 1m @ 43 g/t gold from 64m in hole CRC022-Victoria Lode; 6.5m @ 6.2 g/t gold from 39m in hole CRC001–Victoria Lode; 2.0m @ 14.4 g/t gold from 8m in hole CRC007–Princess Lode; and 4.0m @ 10.8 g/t gold from 69m in hole CRC029–Democrat Lode.

The current drilling is being targeted on high-grade gold-sulphide veins and shoots in shear zones and extensions of known gold mineralisation in and adjacent to historically defined mineralised blocks in the Cowarra mine above Four Level will be tested (i.e. up to 150m below surface).

The drilling comes on top of an ongoing exploration work programme in the tenement that has included reprocessing of geophysical data, surface geological mapping, rock chip sampling, survey control establishment and inspection of underground mine workings.

Encouraging signs of mineralisation were located along strike during the mapping and there are indications from a reanalysis of the airborne magnetic data that the mineral system has a considerable vertical extent.

This potential has been completely untested to date. The company said the drilling is expected to take several weeks to complete.

http://www.proactiveinvestors.com.au/companies/news/6044/capital-mining-commences-drilling-in-move-to-add-to-cowarra-gold-resource-6044.html