Matrix Metals Limited is pleased to announce that the Reverse Circulation (RC) drilling program completed in March 2002 has resulted in the Eastern zone resource being increased to 1,000,000 tonnes @ 1.0% copper at a 0.5% cut off grade. This represent a 50% increase in the Eastern zone resource tonnes, which when combined with the other existing resources in the Western and Central zones, represents a 23% increase in total resource tonnes to:
1,600,000 tonnes @ 1.1% copper at a 0.5% cut off.
The Western and Central resource zones are yet to be drill tested to the base of oxidation and hence the resource size and categorisation in these zones is as yet unchanged.
As a measure of perspective on the resource, the 1,600,000 tonnes identified to date is now approximately equal to the total amount of ore tonnes that has been treated at Mt Cuthbert since the commissioning of the project in 1996.
The Eastern zone resource, which was calculated by the Kriging Method, is now predominately (80%) categorised as Measured Resource achieving the prime aim of the March RC drilling program.
A summary table of the Mt Watson resources is presented below:
The drilling program and subsequent analysis work has been successful in providing confirmation of the geological interpretation of the Eastern zone resource area. The resource is characterised by being continuous to the base of oxidation, continuous over its entire 500m length and indicating healthy mining widths of between 20 and 50 m.
Oxide copper deposits, by definition are, in relative terms, shallow. The confirmation of the base of oxidation, and hence the bottom of the oxide portion of the ore-body at approximately 50 to 60 m, is typical of known oxide copper deposits in the region. In terms of the ongoing growth potential for oxide resources, the target is lateral (not depth) extensions to the mineralisation. To this extent, the current Mt Watson resource area and the greater Mt Watson region, now defined as the “Surprise Creek” area, is demonstrating robust potential for lateral extensions to the existing defined resource zones within the areas of mineralisation and mapped structure/strike extension totalling some 20 km.
Demonstrating this potential, the current Eastern resource zone is open to the west, east and north. The Western and Central zones are open to west and east and possibly to the north. The recent RC drilling program recorded a strongly mineralised intersection in what is interpreted to be a parallel zone of mineralisation approximately 50m south of the current resource area. This new southern area is open in all directions. In addition, resource grade mineralisation has been identified in areas 500m east and 500m west of the resource area. Further, in the overall Mt Watson and Surprise Creek area, mapping has confirmed structure, mineralised strike and copper rich outcrop over a semi continuous 20 km length. It is therefore expected that ongoing exploration along this defined strike length will continue to grow the resource inventory in the Mt Watson and Surprise Creek area.
Drilling programs are being finalised to further test the Eastern, Western and Central resource zones, to evaluate the immediate strike extensions to the current Resource area and to test the new southern parallel zone of mineralisation.
Significant intersections recorded in the March 2002 RC drilling program (previously reported to ASX on 4 April 2002) that have resulted in the Resource upgrade being achieved, are presented on the following page:
Mt Watson Deposit - March 2002 Drilling Program Highlighted Intersections
MWDD01 15.8 m @ 1.70 % Copper from 0.0 m MWDD02 7.3 m @ 1.75 % Copper from 16.5 m MWDD03 16.3 m @ 3.34 % Copper from 1.5 m MWDD04 14.0 m @ 1.28 % Copper from 8.8 m MWRC01 10.0 m @ 1.27 % Copper from 16.0 m MWRC07 29.0 m @ 1.68 % Copper from 15.0 m MWRC11 19.0 m @ 1.92 % Copper from 5.0 m MWRC13 12.0 m @ 2.16 % Copper from 10.0 m MWRC13 10.0 m @ 1.21 % Copper from 28.0 m MWRC14 12.0 m @ 1.09 % Copper from 19.0 m MWRC15 12.0 m @ 1.15 % Copper from 15.0 m MWRC17 11.0 m @ 1.40 % Copper from 29.0 m MWRC19 6.0 m @ 3.04 % Copper from 43.0 m MWRC21 5.0 m @ 2.17 % Copper from 22.0 m MWRC22 8.0 m @ 1.15 % Copper from 22.0 m MWRC24 9.0 m @ 1.66 % Copper from 20.0 m MWRC24 11.0 m @ 1.10 % Copper from 35.0 m MWRC26 6.0 m @ 1.82 % Copper from 30.0 m MWRC27 10.0 m @ 1.10 % Copper from 1.0 m MWRC28 18.0 m @ 1.11 % Copper from 33.0 m MWRC29 22.0 m @ 1.44 % Copper from 16.0 m MWRC31 14.0 m @ 1.87 % Copper from 3.0 m MWRC32 11.0 m @ 1.00 % Copper from 37.0 m
The Mt Watson Deposit is located 25 km from the Company’s copper production facility at Mt Cuthbert in north-west Queensland. The Deposit is envisaged to provide an ongoing ore supply to the Mt Cuthbert production facility.
Yours sincerely,
Andrew Chapman Chief Executive Officer
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