Syndicated Metals (ASX: SMD) is an Australian base metals exploration and development company with control of a tenement package covering over 4,000 square kilometres in the world recognized Mount Isa mineral province in North Queensland.
The company manages two advanced base metals projects with a combined resource inventory in excess of 269,000 tonnes Copper, 30,000 tonnes Molybdenum, 2.3 million ounces Rhenium and 315,000 ounces Gold as well as having a suite of advanced and early stage exploration targets on the surrounding tenements.
Syndicated Metals (ASX: SMD) has received very high grade copper results from drilling of nine holes at its Blue Star prospect within the Mount Remarkable project area in the Mt Isa region of Queensland.
The drilling will enable the recommencement of the calculation of a JORC Resource at Blue Star. Blue Star is located just 15 kilometres north of the sealed Barkly Highway close to established infrastructure and 20 kilometres to the southeast of Syndicated's Barbara copper gold resource.
Best results include 4 metres at 9.89% copper and 1.05 grams per tonne (g/t) gold from 86 metres within 9 metres at 6.2% copper and 0.69g/t gold from 85 metres.
The results would confirm the prospect's prospectivity and potential to provide additional sulphide copper resources to increase the company's existing copper-gold resource at Barbara.
Other significant results include:
- 14 metre at 1.1% copper from 23 metres, including 2 metres at 1.95% copper, and 2 metres at 3.76% copper;
- 7 metres at 1.55% copper from 38 metres, including 1 metres at 8.12% copper; and
- 4 metres at 1.65% copper from 47 metres.
Russell Davis, managing director, said "the Blue Star results are very encouraging and appear to indicate the presence of high grade, steeply south-plunging shoot within a lower grade steeply dipping mineralised envelope."
Significantly, the high grade copper-zone is open at depth. Davis said the deepest drill hole into the main hole was abandoned prematurely in strong copper mineralisation due to drilling difficulties. However, the company plans to re-drill the whole in the next program.
Blue Star is part of the West Leichhardt joint venture (SMD 51% and operator and MET 49%).
Drilling has also been completed at the Green Zone prospect as part of the 2011 program and results are expected shortly.
Barbara’s copper resource grew by 60% in 2010 to a total Indicated and Inferred Resource of 5.33 million tonnes at 1.4% copper, and 0.1g/t gold, 267 parts per million (ppm) cobalt, and 2.5g/t silver, for 76,000 tonnes of copper, 25,000 ounces of gold, 430,000 ounces of silver, and 1,400 tonnes of cobalt for a copper equivalent of 89,000 tonnes in situ.
With a sufficient resource base and potential mine life, Barbara is likely to be highly economic given its grade and likely OPEX and CAPEX and its location in an established infrastructure and mining region.
Today's results significantly contribute towards increasing the contained copper at Barbara in 2011 and increasing the probability of a mining operation being progressed at Mount Remarkable.
Syndicated is aiming to expand the resource base from 5.3 million tonnes grading 1.4% copper for 76,000 tonnes of copper to 125,000 to 150,000 tonnes.