Gunson Resources (ASX: GUN) has received assays from the metallurgical drilling at the Windabout Prospect in Mount Gunson project, South Australia, with high grade copper intersected.
Results from the five vertical diamond drill holes include: MGD 63 - 2.0m @ 1.4% Cu from 59m; MGD 64 - 2.0 m @ 1.5% Cu from 74.2m; MGD 65 - 1.6 m @ 1.8% Cu from 82.7m.; and MGD 66 - 2.0 m @ 3.0% Cu from 63.4m.
Two of the intersections may become wider, as a 0.4 metre sample immediately above the MGD 64 intersection and half metre samples immediately either side of the higher grade MGD 66 intersection were not assayed.
The company said these 3 samples were selected by the metallurgical laboratory for rock mechanical testing but are now being assayed, with results expected in early June.
Copper intersections from the MG 14 Prospect were listed on 29 April 2010. Both MG 14 and Windabout Prospects occur in areas excised from the Noranda Pacific Pty Limited farm-in agreement, collectively known as the Excised Area and are currently the subject of a Bankable Feasibility Study (BFS).
Gunson Resources said the latest drilling results support the company’s view that selective mining of the Windabout deposit could yield a lower tonnage of higher grade mineralisation than the Indicated Resource of 18.7 million tones at 1% copper.
David Harley. managing director, said "confirmation of such high grade zones is to be the focus of drilling scheduled for the second half of 2010."
Metallurgical test work at Optimet Laboratories in Adelaide has been in progress for approximately 3 weeks and this program is scheduled for completion in August, 2010.
"Discussions with companies interested in funding part of the BFS and potential mine development have continued this month, although some potential investors have been turned away by the Government’s ill conceived “super profits” tax. However, a resolution of BFS funding is expected in June," added Harley.