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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 commences phase 2 drilling at Dargues Reef Gold Project

Wednesday, March 24, 2010

Cortona Resources (ASX: CRC) has reported that the Phase 2 drilling campaign has commenced on schedule at its 100%-owned Dargues Reef Gold Project in New South Wales.

Drilling will focus on the “Dargues Deeps” zone, aiming to extend the existing resource at Dargues Reef by up to 250m down plunge with the potential to significantly add to the existing resource estimate of 286,000oz @ 6.2g/t Au.

The latest drilling included Hole 193, which intersected 22m @ 5.74g/t Au (including 10m @ 8.70g/t Au and 4m @ 0.9% Cu). Hole 182, a shallow hole on the eastern end of the resource, intersected 17m @ 6.27g/t Au including 4m @ 15.1g/t Au, which appears to be significantly broader and higher grade than predicted by the resource model. Both holes have the potential to upgrade the existing resource.

“Our resource reserve drilling is proceeding really well, with almost every hole to date intercepting mineralisation that is in line with, or better than, our resource modelling – confirming the continuity of the mineralisation and the robust nature of the deposit as a mining proposition,” Cortona Managing Director Peter van der Borgh commented.

”The deep drilling beneath the resource also offers us very exciting exploration upside and we remain confident that a significant resource upgrade is very much on the cards for mid-year,” van der Borgh continued.

The Phase 2 drilling will comprise a parent hole with five or six ‘daughters’ wedged from it, and is expected to be completed by mid June.

Recent drilling has significantly enhanced the prospectivity of the Dargues Deeps zone, with the latest drill hole, DREX227 passing through welldeveloped mineralisation above the Dargues Deeps zone over a length of approximately 30m in the Main Lode position, 500m beneath the surface.

While assay results for this hole are pending, the scale of the mineralised intercept indicates that the potential for extending the lode remains high.

The company said that the deep parent hole will test several targets at varying depths en route to the Main Lode target. These targets include Thompsons South, Thompsons and New Lode, all of which fall within range of the Dargues development.

Cortona has also reported new significant high-grade gold intersections from the Phase 1 resource reserve drilling.

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