RE: DRILLING TO COMMENCE AT WOOLSHED IRON ORE PROSPECT, MT GIBSON / YALGOO OPTION AGREEMENT LAPSES
Prosperity Resources Limited (ASX:PSP) on behalf of the Paynes Find Joint Venture with Mawson West Ltd (ASX:MWE) advises that a RC drill rig is expected to arrive at the Woolshed Prospect early February 2008 to commence a programme of up to 5000m, time permitting.
Minor earthworks for the planned RC holes have been completed in readiness for the arrival of the RC rig.
Results of the recent close spaced 50m aeromagnetic survey of the extensive BIF sequences have increased the exploration target potential of the Woolshed Prospect as well as enabling the Company to determine the priority drill targets. The final images are continuing to be reviewed before the commencement of RC programme.
The Company also wishes to advise that unlisted public company, Mulgara Minerals Ltd has notified the Company that it has allowed the Yalgoo Option Agreement to lapse. They believe that due to current stockmarket conditions that neither an Initial Public Offer nor extending this Agreement is in the best interest of both parties.
The Company will seek to add value for its shareholders from this gold project with its previously stated resource of approximately 2 million tonnes at 2 g/t gold with a 1 g/t cut off, by either ongoing exploration, joint venture partners or outright sale.
PSP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
