Sunday, 5 February 2012

Syndicated Metals copper gold intersections continue at Kalman near Mt Isa

Syndicated Metals (ASX: SMD) has discovered some clusters of near surface high grade copper-gold values at the Kalman deposit, which is an advanced molybdenum-rhenium and copper-gold deposit covering 700 square kilometres in the mineral-rich Mt Isa region.

All results from the 2011 ten hole reverse circulation drilling program have been received, which are from the southern end of the deposit, located above deep high grade intersections from previous drilling that included 9 metres at 20% copper.

Highlights include:

- 22 metres at 0.84% copper and 1.31 grams per tonne (g/t) gold from 37 metres (1.65% copper equivalent), including 9 metres at 1.3% copper and 2.87g/t gold (2.9% copper equivalent); and

- 6 metres at 0.24% molybdenum and 4.78 g/t rhenium (1.1% copper equivalent) from 73 metres, and 5 metres at 1.53% copper and 0.33g/t gold (1.7% copper equivalent) from 132.

Russell Davis, chairman and managing director, commented on the positive news:

“We continue to be excited by the picture emerging at Kalman. It is clear that we have a highly mineralised area with the potential for significant additional discoveries, as demonstrated by our recent announcements including the high grade copper-gold results from rock chip sampling at Pandora’s Gift and the results of the diamond drilling at Andy’s Hill.

"Thanks to the most recent drilling results we now have a clear focus for the targeting of follow-up infill drilling in 2012 as part of a strategy to chase the up-plunge extensions of the deeper high grade copper-gold mineralisation. The significant gold credits with the copper at Kalman are also a nice boost.”

The drilling campaign

The drilling was carried out by Syndicated as manager of the restructured Kalman Joint Venture with Cerro Resources NL (ASX: CJO), and the new terms allow Syndicated to earn up to an 80% interest in the extensive tenement package - which hosts Kalman.

Initial drilling at the project has targeted shallow open-pittable copper-gold and molybdenum-rhenium mineralisation in the upper parts of the deposit, with deeper drilling to improve the definition of the underlying high grade core of the deposit to follow.

Results of the drilling will now be passed on Syndicated’s independent geological and mining consultants for integration into the current resource model for Kalman.

JORC Resource currently under review

The Kalman deposit hosts a JORC Resource of 60.8 million tonnes at 0.32% copper, 0.05% molybdenum, 1.19g/t rhenium and 0.15g/t gold.

Importantly, the Kalman deposit has the potential to be a company maker for Syndicated with its significant exploration potential as a result of its sizeable targets.

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