BHP Billiton elects to fund next stage of exploration at Blackthorn Resources Mumbwa IOCG project

Australian-based resources company Blackthorn Resources (ASX: BTR) has received welcome news, with joint venture partner BHP Billiton (LSE: BLT, ASX: BHP) electing to fund the next stage of exploration at the Mumbwa Iron Oxide Copper Gold project in Zambia.
Managing Director Scott Lowe said the company was pleased BHP Billiton had chosen to fully fund and manage the next phase of the project, which will include a Concept Study.
"We are also excited about further exploration work being undertaken to assess the full potential at Mumbwa," Mr Lowe said.
"A JORC code compliant inferred resource was announced for the 1.8km long Kitumba Anomaly in 2009, however, the much larger Mushingashi anomaly, measuring approximately 19km in strike length, is yet to be fully drill tested.
"We look forward to the recommencement of drilling operations following the wet season and reviewing the assay results from this drilling campaign.”
Having successfully completed this phase, BHP Billiton may then elect to increase its interest in the Project from 40% to 60% by paying a “back-in” payment to Blackthorn equivalent to 150% of the Company’s total exploration spend during the first 3 Phases, minus USD1.1 million paid in July 2009 as a previous back-in payment.
The Company estimates that approximately USD8.4M has been spent on exploration at Mumbwa during Phases 1, 2 and 3 since late 2004.
The Phase 4 program will include completion of a Concept Study to evaluate the exploration and development potential of the Mumbwa IOCG Project.
The Concept Study will incorporate additional data collected in Phase 4 from drilling the Mushingashi Anomaly together with the Inferred Mineral Resource estimated from the Kitumba Anomaly.
The total strike length of the Kitumba-Mutoya-Mushingashi anomaly is approximately 25km as shown in Figure 2, which includes the Mushingashi ‘density’ anomaly which trends north-south and extends for 19km along strike.
It is planned to conduct a ground based geophysical IP survey over the Mushingashi Anomaly to assist in reviewing and selecting drill targets.
Details of the IP survey are being finalised and BHP Billiton is currently selecting a geophysical contractor and finalising logistics for the program. It is expected results from the IP survey would be available for confirming Phase 4 targets prior to drilling.
Initial drilling in Phase 4 will include holes located near ZMMUM-008 at Mushingashi which revealed characteristic IOCG mineral alteration.
The alteration observed is indicative that the core of a broad IOCG system could be located nearby.
BHP Billiton has selected a preferred drilling contractor and expects to finalise a drilling contract shortly. It is likely that 2 drilling rigs will be available for mobilisation to site in late March 2010.
The Phase 4 program is planned to commence following the end of the annual wet season and completion of site improvement works. This is expected by April 2010 but is dependent on ground and access conditions.
During the wet season, site works have progressed including construction of a new core storage facility, relocation and upgrading of camp accommodation, establishment of onsite medical clinic, implementation of Wildlife Management Plan, completion of water source and reticulation for drilling activities and improving onsite communication
Computer generated modelling continues to gather and review exploration data that is being used to design and modify future drilling patterns.  http://www.proactiveinvestors.co.uk/companies/news/12639/bhp-billiton-elects-to-fund-next-stage-of-exploration-at-blackthorn-resources-mumbwa-iocg-project-12639.html