8 December 2004 Manager Company Announcements Company Announcements Office Australian Stock Exchange Limited Level 10, 20 Bond Street SYDNEY NSW 2000 ABN 42 082 593 235 Electronic delivery No of pages: 5 Dear Sir, ANNOUNCEMENT Primary Sulphide Copper Mineralisation Extended at Mt Watson Matrix Metals Limited is pleased to announce results from the seven hole primary sulphide drilling program at the Mt Watson Prospect. The 3,000 metre diamond drilling program was designed to provide a more detailed assessment of the primary sulphide potential of the Prospect following the initial highly encouraging high grade drill intercepts and the success of the MIMDAS geophysical survey. Highlights The program significantly extended the zone of primary sulphide mineralisation. The zone now extends some 500 metres along strike and to a depth of 300 metres. Intersections of significance reported include: MWRCD03 196 m @ 0.32% Cu from 187m incl 3.0m @ 1.00% Cu from 187m and 28.2m @ 0.75% Cu from 197m and 1.0m @ 8.52% Cu from 254m and 4.3m @ 0.71% Cu from 295m MWRCD06 144m @ 0.42% Cu from 256m incl 7.0m @ 1.02% Cu from 256m and 3.0m @ 1.64% Cu from 268m and 2.0m @ 1.45% Cu from 296m and 9.8m @ 1.19% Cu from 303m and 11.0m @ 1.42% Cu from 325m \\Fs1\data\Company Sec\ASX\Company Announcements\MtWatsonSulphideDrillResults 081204.doc 2 MWRCD07 3.0m @ 0.91% Cu from 198m 5.0m @ 0.76% Cu from 217m 1.3m @ 1.61% Cu from 292.3m MWRCD10 (Diamond tail on MWRC162 renamed MWRCD10) 18.0m @ 0.90% Cu from 162m (RC) 10.7m @ 0.68% Cu from 183.3m (Diamond) 8.0m @ 0.62% Cu from 197.0m (Diamond) Previous primary sulphide intercepts reported at Mt Watson prior to this specifically targeted program include: MWRC 130 37.3m @ 2.18% Cu from 163.0m incl 20.0m @ 3.03% Cu from 163.0m, incl 8.0m @ 4.89% Cu from 175.0m. MWRCD 01 15.4m @ 0.96% Cu from 198.7m incl 5.1m @ 1.45% Cu from 199.4m, 4.5m @ 1.05% Cu from 220.5m, 1.0m @ 0.79 % Cu from 235.0m, 1.2m @ 2.38 % Cu from 239.2m, and 0.6m @ 2.49 % Cu from 252.5m. MWRC 165 29.0m @ 1.39% Cu from 152.0m incl 9.0m @ 2.31% Cu from 168.0m, incl 3.0m @ 3.88% Cu from 170.0m. MWRC 162 18.0m @ 0.90% Cu from 162.0m. Interpretation of the Drilling Results The drilling targeted a strong conductor defined by the MIMDAS geophysical survey in the vicinity of the previous primary sulphide intersections. The conductor is hosted by the lower Prd member of the Surprise Creek Formation. The drilling also tested a separate anomaly in the upper Prb member of the same Surprise Creek Formation. Significant sulphide copper mineralisation was intersected in both members of the Formation, as well as in the intervening Prc member. Significantly, as well as the higher grade intervals, widespread lower grade mineralisation was reported in a number drill holes. Drill hole, MWRCD03, reported visible chalcopyrite copper mineralisation, assaying at 196m @ 0.32% Cu (approximate true width of 180m), commencing at 187m down hole, with the mineralisation continuing as intermittent veins and disseminations to a down hole \\Fs1\data\Company Sec\ASX\Company Announcements\MtWatsonSulphideDrillResults 081204.doc 3 depth of 383m. Drill hole MWRCD06 reported a similar wide mineralised intersection of 144m @ 0.42% Cu from 256m (approximate true width of 137m). Based on these new results, the Company is now further encouraged by the wide and consistently mineralised intercepts, albeit low grade, in regard to the potential for the discovery of a major primary sulphide copper resource at Mt Watson. Details of the Geology The oxide and primary sulphide copper mineralisation at Mt Watson is present in three units of the Surprise Creek Formation, namely the Prd siltstone, which hosts most of the oxide and sulphide mineralisation reported to date, the underlying Prc sandstone and underlying that the Prb siltstone. The mineralisation in the Prb is of interest as it is far more widespread (as disseminated chalcopyrite) than the previously known mineralisation from this unit, previously reported as the Southern Zone mineralisation. This mineralisation has no representation at surface, nor is it evident in the shallower RC drill holes that penetrated into the Prb siltstone beyond the Southern area mineralisation. These results continue to suggest that a significant mineralised copper system may be found at depth under the Mt Watson oxide resource. To date only 500m of strike length out of the oxide resource strike length of 1.5Km has been drill tested and at this stage only to a vertical depth of approximately 300m below surface. Full intersection details for the drill holes are presented in Table 1, with the drill-hole location detailed in Table 2. Follow-up Drill Program Following Wet Season Based on the initial high grade drill intercepts, now supported by the success of this deep diamond drilling program, a full interpretative review of the results, incorporating the recently completed detailed surface mapping program over the entire Mt Watson mineralised zone, will be completed over the wet season. Following from the interpretive review, it is expected a follow up diamond drilling program to further assess and potentially commence quantification of the Mt Watson primary sulphide mineralised zone, will occur. Yours Faithfully Andrew Chapman Chief Executive Officer The information in this report that relates to Mineral Resources and Ore Reserves is based on information compiled by Mr Bob Dennis. Mr Bob Dennis is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of the Company. Mr Dennis has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 1999 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Dennis, consents to the inclusion in the report of the matters based on information in the form and context in which it appears.
MRX Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
