Drilling Progress – CE Prospect, Fraser Range Project, WA Key...

Drilling Progress – CE Prospect, Fraser
Range Project, WA

Key Points
• RC drilling to test the EM conductor at the CE Prospect has
intersected graphitic shale at the modelled conductor location.
• Drilling will continue to test the mafic complex delineated by
aircore drilling and geophysics, with 22 targets still to be tested
across the Fraser Range Project.
• A second RC drill-hole is currently underway in an area of the
CE prospect where trace sulphides were intersected in aircore
drilling.

Orion Gold NL (ASX: ORN) advises that the first Reverse Circulation (RC) drill-hole
has been completed to test the CE Prospect as part of an ongoing drilling
program at the Company’s Fraser Range Ni-Cu-PGE Project in WA.

The hole, OPRC003 (see Figure 1), was designed to test a bedrock conductor
modelled from ground EM surveys. Graphitic shale containing trace amounts of
sulphides (up to 1% in places) was intersected in contact with metamorphosed
mafic intrusive at the interpreted position of the conductor.

Downhole EM surveys confirmed the shale is conductive but also identified a
secondary conductive zone between 60-65 metres, corresponding to an interval
of goethite staining in weathered mafics. The significance of this zone will be able
to be assessed when assays are received.

Aircore drilling will now test gravity anomalies at the southern part of the CE
Prospect as well as EM anomalies at the northern “closure” of the eye feature.

RC drilling is currently underway to test an area of the CE Prospect where aircore
drilling intersected trace sulphides hosted by mafic intrusives. Following this, RC
drilling will move to the Peninsula Prospect to test other advanced targets as
detailed in previous ASX Announcements.

Orion’s Managing Director Errol Smart said: “While it is disappointing that the CE
EM conductor is accounted for by the graphitic shale in this first hole, it is not
uncommon in the Albany-Fraser Belt when testing EM targets. It is also important
to note that, in the analogous Thompson Nickel Belt in Canada, graphitic
sediments can play a role in ore formation and in some cases become the host
rock for mineralisation when intruded by mafics and ultramafics.

We are in the very early stages of our exploration program in the Fraser Range,
with a total of 22 targets still to be tested. Ongoing exploration at the CE Prospect
will include follow up of positive geological and geochemical indicators,
specifically focused on the mafic intrusive complex which remains prospective.
The identification of a mafic intrusive in our maiden drilling at CE remains a
significant result. We look forward to first assay results from drilling as well as
continued drilling both at CE and Peninsula”