Victory West Moly sees potential at Malala Project

Victory West Moly (ASX: VWM) has completed a thorough assessment of all available geological data sets from the Anomaly B prospect, part of the company's highly prospective Malala Molybdenum Project in Sulawesi, Indonesia.

As a result, a robust geological model has been developed which illustrates that significant upside exists at Anomaly B. The model significantly increases the previously assumed target area size by more than 300%, with potential to increase the Exploration Target considerably.

As previously announced on 15 March 2010, the company recently completed an Induced Polarisation (IP) survey over the Anomaly B prospect area, with the survey identifying the contact zone between the Tinombo Formation and the Malala Porphyry.

A number of geological data sets, including soil and bedrock geochemistry, as well as historic drilling, indicate this contact zone hosts molybdenum mineralisation of significant grade and width.

These results are largely coincident with the IP results and the Company has now been able to accurately define a Target Zone which is in excess of 4km long and up to 300m true width, at this prospect.

Extensive geological data supports revised geological model. The revised geological model for Anomaly B has been developed around various supporting geological data with the resulting interpretation recognising a highly prospective Target Zone which is much larger than previously thought.

The IP survey has identified the contact between the two dominant rock units at Anomaly B – the Tinombo Formation and the Malala Porphyry. Previous exploration, including drilling, has identified a broad zone on this contact as hosting high-grade molybdenum mineralisation over excellent widths.

The company interprets this contact to be highly prospective for continuation of molybdenum mineralisation within this zone.

Soil and bedrock (trenching) geochemistry has now been plotted relative to the IP image, illustrating coincident anomalous data sets along a large part of this Target Zone. The results confirm a Northern Limb and Southern Limb at Anomaly B.

Previous drilling focussed only on part of the Northern Limb and did not properly test the revised geological model.

During 2010, the company has proposed to undertake a detailed drilling program to prove up the company's initial Exploration Target on the Northern Limb. The company said new geological understanding is the key to unlocking new discoveries at Anomaly B and regionally.

Following this will be aggressive drill testing of the remainder of the Target Zone, including the Southern Limb, which could result in a significant increase in the company?s Exploration Target.

In addition, this geological model will now be applied to the balance of the company's 20,000Ha of concessions in the district, with the geological contact between the Tinombo Formation and the Malala Porphyry becoming the focus of detailed investigation.

The company currently has geological teams undertaking mapping and soil, rock and stream sediment sampling within the Promistis concession where it appears a new hard-rock molybdenum discovery is imminent.

http://www.proactiveinvestors.com.au/companies/news/6261/victory-west-moly-sees-potential-at-malala-project-6261.html