Terramin shares rise on high-grade gold intercepts at Lady Jane Prospect

The first stage RC drilling program in Terramin Australia’s (ASX: TZN) Preamimma District Project in South Australia has delivered strong results. A total of 34 holes were drilled around 19th century mines that had seen no previous drilling.

These are within 30 kilometres of Terramin’s Angas mine, which produces zinc, lead and significant gold, silver and copper.

Gold results returned from Lady Jane Prospect include: 3m @ 11.1 g/t Au from 1m and 13m @ 3.2 g/t Au from 80m.

Terramin’s CEO, Greg Cochran said “the results are extremely encouraging, with high-grade gold intersections around the Lady Jane Mine and wide copper-gold intersections at Preamimma Mine.”

“The gold results from Lady Jane are outstanding and merit early follow-up with diamond drilling. The copper-gold results from Preamimma Mine are significant and define a broad mineralised halo."

"One hole terminated in a 4m void that is presumed to be old workings. Mine records indicate ore grades averaged 9% copper while underground sampling in the 1920’s returned up to 9 g/t gold. We will target deeper holes under and around these old workings.”

He added, “Our 400,000tpa Angas operation has confirmed the region’s potential for successful mines. The aerial geophysical survey will provide high definition data that will enable us to target additional base metal deposits closer to the Angas Mine and other areas under cover.”

At Preamimma Mine nine holes were drilled for a total of 828m. Average grades were in the range 0.2 g/t Au to 0.7 g/t Au and up to 0.4% Cu. The anomalous zone remains open at depth.

Best results were in PRMRC005 which intersected 9 metres of anomalous gold and copper before passing into a 4m wide stope and in hole PRMRC006, which intersected 11m @ 0.69 g/t Au and 0.25% Cu (with an included interval of 3m @1.87 g/t Au, 0.63% Cu).

Future drilling will be targeted down plunge of this anomalous zone to test for higher grades. Deeper holes will be diamond cored to overcome RC sampling limitations caused by groundwater.

At Frahns Mine 11 holes were drilled for a total of 675m. Water restricted testing to above 50m. Mineralisation is hosted within two shear zones over a strike length of 350m. Quartz veining with copper and gold is associated with moderate to strong garnet alteration.

Best results were 4m @1.37 g/t Au and 4m @ 0.53% Cu in separate holes. These results merit follow-up with diamond drilling to sample below the water level.

Terramin Australia shares rose 10% to 82 cents in trading today.

http://www.proactiveinvestors.com.au/companies/news/6371/terramin-shares-rise-on-high-grade-gold-intercepts-at-lady-jane-prospect-6371.html