Zamia Metals dual strategy adds gold copper to the mix at Anthony molybdenum project

Zamia Metals (ASX: ZGM) is executing the two-track strategy at the Anthony molybdenum project which the company announced earlier in the year.

Zamia now has a regional exploration program established for gold and copper at Clermont, with the target the establishment of other resources on the company’s large tenement portfolio in the district.

Gold and copper exploration

Zamia considers the Clermont district in Central Queensland to be highly prospective for gold, copper and other metals, as well as molybdenum.

With this in mind, the company has now given priority to expand exploration programs outside of the Anthony project area - boosting the potential to expand the resource base.

To achieve the multi-commodity exploration target, Zamia has expanded the company's portfolio of exploration permits, and has already identified and prioritised targets for follow-up exploration.

Before drilling kicks off, initial exploration activities are commencing and include induced polarisation surveys, soil geochemistry and mapping over priority targets.

Anthony project review

Anthony currently has an Inferred Resource of 103 million pounds of contained molybdenum, with a 400ppm molybdenum cut-off.

Importantly for a potential boost in the resource, Hellman & Schofield who conducted the estimate in mid-2011, added that 70% to 80% of the Inferred Resource will eventually move to the high confidence categories of Indicated and Measured.

To continue to unlock the potential of the project, Zamia has sought the assistance of external technical experts in conducting a review of the project, with the decision to proceed with further metallurgical work ahead of any further drilling programs.

Importantly - the company has already identified that initial flotation testing of the sulphide resource indicates that a concentrate grade in excess of 50% molybdenum at over 90% molybdenum recovery can be achieved on relatively low grade samples (around 500 ppm molybdenum).

Corporate funding

Zamia was also working towards a rights issue to shareholders at $0.105, the same price as the share placement to sophisticated investors in April 2011.

The company said that due to adverse market conditions, it has not been feasible or in shareholders’ best interests to proceed with this proposed rights issue.

Zamia then added that future issues will be reconsidered in light of funding requirements and prevailing economic conditions.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19006/zamia-metals-dual-strategy-adds-gold-copper-to-the-mix-at-anthony-molybdenum-project-19006.html