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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	CRC
Latest Price:	0.16 (10.34% )
52-week High:	0.21
52-week Low:	0.11
Market Cap:	35.31M

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Cortona Resources

Cortona Resources (ASX: CRC) main focus is the Dargues Reef Gold Project at Majors Creek in New South Wales.

At a spot price of A$1,550 per ounce the project is forecast to deliver free cash flows of around A$112 million and a post-tax NPV (8% discount) in excess of A$75 million dollars.

Cortona Resources intersects high-grade gold at Dargues Reef Project

Tuesday, February 16, 2010

Emerging Australian gold company Cortona Resources (ASX: CRC) has completed the first two drill holes at its 100%-owned Dargues Reef Project, intersecting significant widths of high-grade gold mineralisation immediately adjacent to the current mineable resource.

During the morning trade, shares in Cortona rose 3.7% to 14c.

The Reverse Circulation holes represent the first phase of a major near-mine drilling program at Dargues designed to convert resource ounces to reserve and increase the existing JORC resource of 1.44Mt @ 6.2g/t Au for 286,000oz.

Significant drilling intersections from the first two holes at Dargues Reef in 2010 include 12m @ 6.3g/t gold from 73m with 8m @ 0.43% Cu and 13m @ 4.8g/t gold from 75m with 7m @ 0.15% Cu.

The drilling program continues as planned. Four rigs are active on site,and results are pending for a further seven completed RC holes and several diamond holes. Visible gold, which is rarely seen at Dargues, was observed in diamond core in one intercept.

Other key aspects of the Dargues Reef Feasibility Study such as water, power, metallurgy and flora/fauna are also proceeding well.

Cortona Managing Director Peter van der Borgh said the company had been advised that the NSW Director General’s Office has confirmed that the Dargues Reef development has qualified as a Major Project for State Planning Approvals under Section 3A of the Environmental Planning and Assessment Act, 1979.

The Company is focused on the exploration and development its 100%- owned Majors Creek Project, located 60km east of Canberra in New South Wales, where it is currently undertaking a Definitive Feasibility Study on the Dargues Reef Gold deposit (1.44Mt @ 6.2g/t gold for 286,000oz).

Majors Creek was the largest historic alluvial goldfield in NSW producing more than 1.25 million ounces.

The Dargues Reef deposit is expected to be the Company’s first operating mine following positive scoping study results indicating average annual production of 45,000 ounces over an initial mine life of 5 years.

Cortona’s multi-pronged plan is to progress the Dargues Reef DFS in conjunction with aggressive nearmine and regional exploration programs to underpin a long-term gold business.

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