UXA Resources looks to follow up drill Dome 5 lead, silver and zinc project

UXA Resources (ASX: UXA) has announced plans for follow up drilling at the Dome 5 lead, zinc, silver project in Mundi Plains, New South Wales.

The second phase drilling which will commence towards the end of 2011, and will test the potential exploration target of 5 to 10 million tonnes of mineralised body at 10% lead plus zinc, with silver credits.

Infill and step out drill holes will be focused on the high grade mineralised zone.

In May, UXA completed a 7 hole 2,653 metres mud rotary and diamond drilling program at Dome 5 which identified a 500 metre wide zone of high grade drill intercepts grading up to 3.0 metres at 15.8% lead plus zinc and 63 parts per million (ppm) silver from 315.0 metres in DF12.

There is a second zone of mineralisation, 5 metres below the high grade upper zone, which returned 1.29 metres at 6.88% lead plus zinc and 20ppm silver from 322.76 metres in DF12.

Further analysis of the drilling data indicates potential to discover additional mineralisation along strike from the known 500 metre wide zone, particularly to the northwest.

A new eight hole 2,800 metre drilling program is currently being planned which, subject to rig availability, will commence drilling in late October.

The second phase program will focus on testing the exploration target with drilling to include further widely spaced step-out holes (250 metre centres) and some infill holes within the currently defined 500 metre wide high grade zone.

The mineralised zone extends in a roughly north west – south east orientation and is relatively flat lying at 315 to 340 metres deep.

It comprises two vertically stacked zones of coarse grained sphalerite, galena, fluorite Mississippi Valley Type (MVT) style mineralisation.

The initial Dome 5 zinc discovery at Mundi Plains was made by Teck Australia Pty Ltd, a wholly owned subsidiary of the major Canadian mining company Teck Resources Limited, in joint venture with PlatSearch NL in 2007.

The discovery of MVT mineralisation was in a flat lying zone from around 320 metres depth.

The mineralisation lies close to the base of the Adelaidean sedimentary sequences where they on-lap onto a granite dome.

All of the original five holes drilled within a one square kilometre area encountered sphalerite-galena mineralisation, with two high grade mineralised intersections returning up to 0.85 metres at 19.15% zinc, 4.9% lead and 83ppm silver.

UXA has an option agreement to earn up to 100% of Teck’s joint venture interest, subject to certain earn-back rights by Teck and has agreed to an initial A$1.2 million spend on exploration, targeting MVT style lead-zinc-silver mineralisation and IOCG-style copper-gold mineralisation.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19556/uxa-resources-looks-to-follow-up-drill-dome-5-lead-silver-and-zinc-project-19556.html