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Additional Information

Market:	ASX FRA
Sector:	General Mining
EPIC:	GIP
Latest Price:	0.02 (0.00%)
52-week High:	0.05
52-week Low:	0.01
Market Cap:	16.25M

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Gippsland Limited

Gippsland focuses on world-scale projects which have been over-looked by major resource groups. Projects which have undergone detailed exploration and which have the potential to be brought into production quickly are a prime target for the Company. Gippsland's success in this area is due in part to the Company's philosophy of entering into equitable joint venture arrangements with overseas nationals. The Company's prime assets are the 40 million tonne Abu Dabbab and the 98 million tonne Nuweibi tantalum-tin projects located in the Central Eastern Desert of Egypt, adjacent to the western shore of the Red Sea.

Gippsland targets base metals, gold in Eritrea - shares jump

Tuesday, October 06, 2009 by Peter Gonnella & Andrew McCrea

Perth-based Gippsland Ltd (ASX:GIP; DB:GIX) subsidiary Nubian Resources plc has picked up three prospecting licences in the state of Eritrea that it likes for their base metals and gold prospectivity.

Investors liked the news and sent Gippsland shares 56% higher at one stage, on turnover of 15.22 million shares traded.

The licences span an overall 300 sq km and contain the Abu Dabbab and Nuweibi tantalum resources, which total 142.5 million tonnes and are JORC-Code compliant, however, the company will initially focus on the search for base metals and gold.

Abu Dabbab and Nuweibi occur in the mineral endowed Precambrian Nubian-Arabian Shield, which also takes in the nearby Centamin Egypt-owned (TSX:CEE; ASX:CNT; AIM:CEY) new Sukari gold mine in Egypt.

Sukari hosts current reserves totalling 142 million tonnes grading 1.4 g/t Au for a contained 6.4 million ounces of gold.

In addition, in recent years there have been a number of gold and base metal discoveries made in Eritrea, including Bisha, Zara and around Asmara.

Gippsland plans to undertake an initial sampling program on its new licences during October and November involving the collection of drainage channel samples within the new project areas.

This geochemical technique is known to be effective in the exploration for gold and base metal deposits in Eritrea, according to the company.

Its drainage samples will be analysed for copper, lead, zinc and gold mineralisation.

Jack Telford chief executive of Gippsland said the licences are located in a region that has been the subject of “minimal previous exploration but has the potential to host high-grade gold and base metal deposits”.

Recently, the news pipeline turned positive for the company as leading Australian businessman Ian Gandel’s company Abbotsleigh Pty Ltd provided the Company with a loan of AU$800,000 for working capital.

Which, he elected to convert (the loan) into shares via the issue of 80 million shares to Abbotsleigh Pty Ltd. Abbotsleigh’s shareholding equates to 18.89% of the Company's fully paid ordinary shares on issue.

Gippsland has a world scale tantalum resource at Abu Dabbab in Egypt. With the shut down of some tantalum projects, Abu Dabbab’s project economics will be further boosted by the co-production of tin metal (as well as tantalum revenues).

Additionally, feldspar production, is scheduled to commence after both tantalum & tin production starts, will add substantially to the company's bottom line return.

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