Gippsland announces encouraging results from geochemical survey in Eritrea

Australian based international resource company Gippsland (ASX: GIP) has unveiled promising results from a reconnaissance drainage geochemical survey from within the three Prospecting Licences in Eritrea.
The news saw shares in Gippsland increase 9.4% to 7c during the afternoon trade.
The survey saw a total of eleven Thematic Mapper alteration targets sampled by collecting 196 drainage samples associated with zones of argillic alteration and favourable host lithologies.
Anomalous results for gold, copper and zinc were recorded from all of the three 100 km2 PLs.
TM target E26 (411400E/1920400N) located within the northern Afah PL yielded a coherent copper anomaly 2.8 km long with six samples containing anomalous copper values, with the highest being 193 ppm.
A low order but coincident gold, copper and zinc anomaly was identified at the E21 target (404800E/1905000N) within the central Merba West PL. The close association of this anomaly with the TM alteration target, favourable geology and low sample density make this a priority for further sampling.
TM target E14 (403700E/1888100N) located within the Rabae Tahat North PL yielded the highest gold values with two samples containing 1.1 and 3.7 g/t.
Gippsland chief executive Jack Telford said the company was greatly encouraged by the results of the first pass widely spaced sampling programme.
Infill drainage sampling will follow to determine the source of the anomalous gold, copper, and zinc values.
The three PLs cover 300 km2 of ground that is prospective for both VMS mineralisation and structurally controlled gold mineralisation.
The PLs were selected following an interpretation of Thematic Mapper (TM) satellite data of a large part of northern Eritrea. During this study, the Bisha and Zara (Koka) mineral deposit areas were used as type examples.
The three PLs are located in a geological setting similar to the Bisha gold-base metal deposit located some 174 km to the south that contains 1.44 Moz Au, 0.39 Mt Cu and 0.499 Mt Zn. The structural setting of the area covered by the PLs is also similar to that found at the 0.94 Moz Zara (Koka) gold project located along strike some 65 km to the south.
"As a result of the above results, Gippsland Directors have unanimously agreed to make application for a further three 100 km2 Prospecting Licenses in the Adobha region," Mr Telford said.
"If successful, the additional licences will double the Company's holdings in Eritrea.
"The Directors believe that Gippsland's first-mover advantage in this highly prospective province improves the likelihood of identifying substantial gold and copper deposits similar to those situated on strike to the south of the Company's PLs, and elsewhere in the Arabian-Nubian Shield."  http://www.proactiveinvestors.com/companies/news/3470/gippsland-announces-encouraging-results-from-geochemical-survey-in-eritrea-3470.html