UXA Resources begins second phase drilling at Dome 5 zinc-lead-silver prospect

UXA Resources (ASX: UXA) has commenced its second phase eight hole, 2,800 metre mud-rotary and diamond drilling program at the Dome 5 zinc-lead-silver prospect in New South Wales.

In addition, joint venture partner Straits Resources (ASX: SRQ)  (70% interest) expects to commence drilling on UXA’s Stuart Shelf IOCG project in South Australia, early in 2012.

The Dome 5 prospect is part of the Mundi Plains Project, located 50 kilometres northwest of Broken Hill, and the program is aiming to define the extent of mineralisation, and assist in the definition of a maiden resource estimate for the project.

The program will focus on testing a potential exploration target of 5–10 million tonnes mineralised body at 10% lead plus zinc, with silver credits.

Drilling will 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 company expects the drilling program to pause over the holiday period, re-commencing in mid-January with results to follow by early February 2012.

The initial Dome 5 zinc discovery was made by Teck Australia Pty Ltd (Teck), a wholly owned subsidiary of the major Canadian mining company Teck Resources (NYSE: TCK), in joint venture with PlatSearch NL (ASX: PTS)  in 2007.

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, 83 parts per million (ppm) silver.

Subsequent drilling by UXA has outlined a 500 metre wide zone of high grade mineralised drill intercepts with a best intersection of 3.0 metres at 15.8% zinc plus lead and 63ppm 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.

Stuart Shelf – Straits Joint Venture

The joint venture includes nine tenements for a total of 3,300 square kilometres in the highly prospective Olympic Dam-Prominent Hill area prospective for world class IOCG, Cu-Au (U) deposits.

Straits has completed a geophysical evaluation of the highest priority targets and heritage clearance surveys have been successfully completed prior to the commencement of a diamond drilling program.

A diamond drilling program had been delayed by the availability of suitable rigs, with the program now expected to commence in early 2012 with a three hole, 3,500–4,000 metres program targeting a number of geophysical anomalies.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/23332/uxa-resources-begins-second-phase-drilling-at-dome-5-zinc-lead-silver-prospect-23332.html