Trafford Resources hits gold mineralisation at Weednanna Prospect

Trafford Resources (ASX: TRF) has identified extensive near surface gold mineralisation from 10 drill holes at the Weednanna Prospect, Wilcherry Hill Project, South Australia.

The gold intersections were identified following a program of re-assaying for gold from drill holes drilled by Trafford subsidiary company Ironclad Mining (ASX: IFE) in 2008 and 2009.

Best intersections include 8m @ 2.2 g/t, 10m @ 2.1 g/t, 6m @ 2.89 g/t and 2m @ 7.1 g/t.

Under the terms of the Joint Venture Agreement between Trafford Resources and Ironclad Mining, Trafford retains the right to any gold mined at Wilcherry Hill, which was originally acquired by Trafford primarily as a gold target.

These intersections combined with the numerous intersections previously reported from Weednanna confirm that Weednanna remains a significant gold target.

Whilst gold occurs extensively along the southern half of the Weednana magnetite deposit, significant intercepts (6m@18.6 g/t) have also been recorded from drill holes 600m to 700m to the North. Drilling density is also lower in the North.

Gold mineralisation is associated with high grade skarn magnetite currently being developed as an open pit Direct Shipping iron ore operation by IronClad Mining.

The Joint Venture has recently reported that they are in the process of drilling 6000m
of RC drilling at Weednanna as part of their bankable feasibility study to begin production of its high quality, low contaminant Direct Shipping Ore (DSO) magnetite in the last quarter of 2010.

As part of this mining study Trafford Resources will continue re-assaying Joint Venture samples in 2010 in order to define a 3-dimensional understanding of the distribution of the gold mineralisation at Weednanna prior to the start of open pit mining.

Trafford Resources intends to do metallurgical test work and undertake a study regarding the separation and subsequent processing of the associated gold ore from Weednanna.

Trafford is therefore well placed to become the first commercial gold producer on the Eyre Peninsula in South Australia.

http://www.proactiveinvestors.com.au/companies/news/6396/trafford-resources-hits-gold-mineralisation-at-weednanna-prospect-6396.html