Queensland Mining Corporation shares rise on Flamingo copper-gold resource estimate

Queensland Mining Corporation (ASX: QMN) has announced the results of a maiden resource estimate at its Flamingo copper-gold project, located north of Cloncurry in northwest Queensland.

The resource estimate at the Flamingo copper-gold project is based on drilling data completed by QMC in 2009 and historical drilling undertaken by Mount Isa Mines (now Xstrata), in 1994. Mineralisation has been identified over a length of 300 metres.

The maiden Inferred Resource estimate is at shallow depth below surface (maximum depth of 60m) of 117,000 tonnes @ 6.0 % Cu and 1.8 g/t Au.

An additional target with ranges of 100,000 – 150,000 tonnes @ 2–4 % Cu and 1–2g/t Au identified based on drilling data completed by QMC in 2009 and historical drilling undertaken by Mount Isa Mines (now Xstrata).

QMC’s Managing Director Howard Renshaw said, “management was always very confident about the potential of the Flamingo copper-gold project and this first pass Inferred Resource estimate clearly supports this view."

"QMC believes these results provide evidence that this resource has potential to offer short term cash flow for the company and offers significant opportunities to increase the resource and ultimately reserve base," he added.

The Inferred Resource is open along strike and at depth and a conceptual target outside of the current range of drilling has also been identified between 200,000–300,000 tonnes @ 2–4 % Cu and 1–2 g/t Au.

2,500 metres of follow up drilling is scheduled to commence in April 2010 and this planned drilling has been directed to increasing both the size of the resource and the level of confidence as well as testing the other target areas.

The Mineral Resource estimate was completed by QMC using accepted industry standard estimation methods.

All resources have been classified as Inferred Resources and the estimate has been reported in accordance with the 2004 edition of the JORC Code.

QMC said a resource definition drilling program will be begin by the 7th of April and 2500 m of drilling has been planned. This drilling is focused on increasing both the size of the resource and the level of confidence as well as testing the other target areas.

In conjunction with the resource drill-out, metallurgical samples will be collected and sent for flotation test work.

Queensland Mining Corporation shares rose 10% to 15 cents in trading this morning.

http://www.proactiveinvestors.com.au/companies/news/5951/queensland-mining-corporation-shares-rise-on-flamingo-copper-gold-resource-estimate-5951.html