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Perth, Australia, Sep 8, 2011 – (ABN Newswire) – Overland Resources Limited (ASX:OVR.AX) is pleased to advise that its 10,000 metre diamond drilling program at the Yukon Base Metal Project is nearing completion. A total of 67 holes for more than 9,950 metres have been drilled.
Drilling has targeted vertical and lateral extensions of the high grade Andrew and Darcy Zinc Deposits, where mineralisation at both deposits remained open in all directions. Drilling was also undertaken, for the first time, to evaluate a soil geochemistry anomaly that extends to the north-east of the Andrew Zinc Deposit.
The Company has received analytical results for a further twenty drill holes. Nine of these were drilled at the Darcy Zinc Deposit, four at the Andrew Zinc Deposit, and seven to test for mineralisation along the soil geochemistry anomaly to the north east of the Andrew Deposit.
Darcy Zinc Deposit
Drilling continued to intersect thick zones of significant mineralisation at the Darcy Zinc Deposit, with results including:
– 9.9 metres at 8.1% zinc from 144.3 metres, and
– 10.5 metres at 6.1% zinc from 157 metres in DY11-035
– 24.0 metres at 5.0% zinc from 84 metres in DY11-036
– 3.0 metres at 10.0% zinc from 85 metres, and
– 11.0 metres at 5.8% zinc from 101 metres in DY11-037.
The results from hole DY11-035 confirm that mineralisation at the Darcy Zinc Deposit continues with significant thickness and grade at a depth well below 150 metres. This result provides encouragement that the open pit development at the Darcy Zinc Deposit can be extended deeper than the current proposed design.
The results from holes DY11-036 and DY11-037, drilled 100 metres west of DY11-035, provide confidence that thick high grade zones of mineralisation continue at depth at the north-western end of the Darcy Zinc Deposit. This further supports the conceptual expansion of the proposed open pit at the Darcy Zinc Deposit.
Drilling 100 metres further west of DY11-036 at the Darcy Zinc Deposit failed to intersect significant mineralisation (holes DY11-040, DY11-041 and DY11-042). The western end of the deposit appears to have been truncated and displaced by a fault. Compilation work and geological interpretation is now underway to model the cross fault displacement and determine the potential locality of the western offset of the deposit.
Analytical results for an additional seven drill holes completed at the Darcy Zinc Deposit are pending.
Andrew Zinc Deposit
Drilling to test for the continuation of the Andrew Zinc Deposit at depth to the east (hole AN111-135) intersected a thick zone of brecciated material with an extensive network of vein infill material containing quartz, calcite and sulphides. Assay results returned from this zone included:
– 4.0 metres at 2.4% zinc from 236 metres.
These results indicate that the mineralised system continues beyond the bounds of the current level of drilling.
Analytical results are pending for a further three diamond holes drilled recently at the Andrew Zinc Deposit
Andrew Northeast Prospect
The Company has completed eleven drill holes as part of its inaugural drill testing of the zinc in soil geochemistry anomaly that extends some 2,000 metres to the north east of the Andrew Zinc Deposit. Drilling intersected a significant amount of brecciation and vein infill textures similar to those observed at the Andrew and Darcy Zinc Deposits. Assay results have been returned from seven of these drill holes. Results demonstrate the presence of shallow mineralisation in this area. They include:
– 7.0 metres at 0.5% zinc and 0.3% lead from 67 metres in MB11-001.
– 9.0 metres at 1.0% zinc and 1.1% lead from 69 metres in MB11-004.
– 4.0 metres at 0.8% zinc and 9.9% lead from 65 metres in MB11-005.
– 3.0 metres at 1.7% zinc and 0.4% lead from 65 metres in MB11-007.
Assay results from four drill holes completed on the Northeast Prospect are still pending.
The Company is now extending the soil geochemistry survey to determine if extensions of the mineralised system can be delineated.
Other Prospects and Ongoing Drilling Programme
The recent drilling results from the Northeast Prospect further highlights the significant potential to discover new mineralisation at the Yukon Base Metal Project. One diamond rig continues to operate at the Project, and while the Company is close to completing its planned 10,000 metre drilling programme, further drilling may be undertaken during September should laboratory turn-around times allow assay results to be interpreted and targets selected prior to the end of the programme.
Yukon Base Metal Project – Overview
The Yukon Base Metal Project consists of 1262 quartz mining claims for a total of approximately 260km2 in three discreet areas within the highly prospective and under explored Selwyn Basin of the Yukon Territory, Canada.
The central claims, now known as the Selous Project area, contain the original claim blocks and include the Andrew, Darcy and Darin Zinc Deposits, and the Myschka, Pinnacle and Lad prospects in which Overland Resources holds a 90% interest. The Company holds a 100% interest in the eastern area, known as the Riddell Project area, and the western area, known as the Junction Project.
Work is well advanced on the technical, economic and environmental components of a feasibility study into the development of the Yukon Base Metal Project. The Company is aiming to submit a mine permitting proposal to the executive committee of Yukon Environment and Socio-economic Assessment Board (YESAB) at the end of 2011. The Yukon Territory is a jurisdiction that is particularly supportive of new mine developments. The permitting process is expected to take between 12 and 18 months with construction commencing shortly after mine permits are issued.
For the complete Overland Resources Limited announcement including figures, please view:
http://media.abnnewswire.net/media/en/docs/ASX-OVR-556366.pdf
About Overland Resources Limited:
Overland Resources Limited (ASX:OVR.AX) is aggressively advancing the Yukon Base Metal Project and in particular the high grade Andrew Zinc Deposit towards production. The Yukon Base Metal Project contains a JORC Code compliant resource of 8.95 million tonnes at 6.3% Zn and 1.2% Pb with a 2% zinc cut-off applied.
The Company seeks to consolidate their position in Canada by securing additional Base Metal and Nickel projects to add to the Company’s strong portfolio of exploration and development projects.
Overland Resources Board of Directors and management team have extensive global resource industry experience. Their combined technical, commercial and corporate knowledge ensures Overland Resources will achieve its objective.
Contact:
Hugh A Bresser Managing Director Overland Resources Limited Tel: +61-8-9226-5566 http://www.overlandresources.com
Source:
Overland Resources Limited
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