Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (59896)	6/2/2010 9:10:19 AM
From: LoneClone	Read Replies (1) \| Respond to of 193043

David and Goliath to undertake deep copper quest in Queensland Breakaway Resources and BHP Billiton are to undertake a deep drilling programme on Breakaway's Altia zinc-lead-silver discovery in north west Queensland. Author: Ross Louthean Posted: Wednesday , 02 Jun 2010 PERTH - mineweb.com There will be a 5,000 metre diamond drilling programme to start the joint venture between Breakaway Resources Ltd (ASX: BRW) and BHP and that will involve a first hole going to about 1,000m to start a probe for what the junior company believes is a "potential world-class silver-lead-zinc deposit. A minimum exploration expenditure of A$1 million (US$0.8 million) was expected to be spent by November. BHP was committing to spending A$10 million on the Altia project in the Cloncurry region. Breakaway delineated an initial JORC Code compliant inferred resource for Altia in 2008 of 5.78 million tonnes grading 40.3 grams/tonne silver, 3.96% lead and 0.49% zinc. Breakaway's managing director, David Hutton, said the deposit has currently been drilled over a 500m strike length and to a nominal depth of 300m, and remains open primarily down-dip and to the south. He said Breakaway secured the "landmark farm-in and joint venture with BHP Billiton last November. The focus of planned exploration is based on strong geological similarities between Altia mineralisation and the world-scale Cannington silver-lead-zinc mine - owned by BHP -- 100 km to the south along the same geological corridor. Hutton said previous drilling by Breakaway highlighted the potential for a large-scale silver deposit at Altia with strengthening silver grades - including a down-hole intersection of 19m @ 286 g/t silver - occurring at depth and to the south. In addition to extensions of the known Altia mineralisation, drilling will test the steeply-dipping Dingo trend, immediately east of Altia. Hutton said the alliance was an "an exciting opportunity to leverage the financial and technical resources which a partner such as BHP Billiton brings to conduct the first definitive test of the potential of the Altia system to host a world-class mineral system." "The joint venture was concluded after a rigorous and extensive process of due diligence and technical review which confirmed the high prospectivity of this project to host a world-scale Cannington-style deposit," he said. The joint venture covers 8 square km while on the broader potential surrounding the Eloise copper mine Breakaway retains the copper-gold rights and also mineral rights over a surrounding 400 sq km. Under the Farm-in and Joint Venture Agreement, BHP Billiton can earn a 70% interest in the silver-lead-zinc rights at Altia by completing expenditure of A$10 million over five years. BHP Billiton must spend a minimum of A$1 million within the first year of the Joint Venture. On BHP Billiton reaching its 70% interest, Breakaway's 30% interest may be sold to BHP Billiton. If Breakaway elects not to sell its interest, it must contribute on a pro rata basis to the cost of ongoing exploration and a Bankable Feasibility Study. BHP Billiton retains a right to purchase Breakaway's 30% interest following completion of a Bankable Feasibility Study and before a decision to mine is taken. The Farm-in and Joint Venture agreement is consistent with Breakaway's previously announced strategy of rationalising its extensive Australian minerals portfolio to enable it to focus on its core nickel sulphide exploration projects in the Leinster District of Western Australia, where drilling is continuing at the Wildara and Sinclair Projects.