Cobar Consolidated Resources announces high grade core at the Wonawinta silver project

Friday, November 27, 2009

Cobar Consolidated Resources (ASX:CCU) has released the results of the second phase of infill drilling, revealing high-grade core contained in the south central pit of the Wonawinta Silver Project in western New South Wales.

The drilling program included infill holes in the north, south central and south pits and diamond drill holes in the south pit for metallurgical test work.

The most significant results were obtained in the south central pit, where a thick high grade mineralised core approximately 80m across and over 600m in strike length has been defined. Higher silver grades appear to correspond with higher lead grades.

The results included 101g/t Ag and 1.8% Pb from 23m, 57g/t Ag and 0.7% Pb from 19m and 130g/t Ag and 1.3% Pb from 19m.

The results complement those obtained from infill drill results in the southern pit. There are now two areas which could provide attractive starting points for mining operations.

The processing of higher grade silver and lead ores early in the life of the project would significantly enhance the project economics.

Infill drilling in the north pit, where 6 RC holes were drilled, has confirmed the extent and grade of mineralisation.

A further six RC holes drilled in the south pit tested areas where the vertical position of mineralisation appeared to change significantly between holes.

Finally, six diamond holes were drilled in the south pit to obtain samples for metallurgical test. These results, with one exception, provided excellent correlation with RC drill results in the same position.

The drill results will now be used to recalculate the resource.

The Wonawinta silver project currently has an indicated and inferred silver resource of 50Moz.

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