News - Golden Cross Resources extends economic grades of copper at Copper Hill North

Assay results from a program of metallurgical and exploration drilling by Golden Cross Resources (ASX: GCR) at its fully owned Copper Hill project in New South Wales, have confirmed and extended economic grades of copper.

The program has been underway since early September. At a 0.2% copper cutoff hole GCHR 314 intersected:

5 metres @ 0.47% Cu, 0.21 g/t Au from 77m metres;
63 metres @ 0.48%Cu, 0.23 g/t Au from 98 metres; and
66 metres @ 0.61%Cu, 0.36 g/t Au from 186 metres.

Peak values for copper are 1.19%, 1.46% and 1.72% respectively. The two broad intercepts occur within a 154 metre long mineralised zone which is cut by a 24 metre wide barren dyke.

Copper Hill has excellent infrastructure, ease of mining, low strip ratio, and good metallurgical characteristics. The project's economics continue to improve with the now sustained increase in global copper and gold prices.

GCHR314 was drilled to test up-dip extensions of the deeper intercept in GCHR298, and facilitate capture of the deeper intercept in future pit re-optimisations.

Geological evaluation of data from GCHR 314 supports an interpreted northerly plunge to the wide zones of economic grade mineralisation which have not been tested below 400 metres RL (120m below surface) by previous drilling north of section 6200N.

The down-dip and down-plunge extensions will be tested by ongoing drilling in November and December.

The feasibility study for the Copper Hill project has commenced using China National Automation Control System Corp. (CACS) as the lead consultant with China Nerin Engineering Co. Ltd (NERIN) in support.

Tenders have been called for environmental assessments and hydrology studies and discussions with state government authorities regarding permitting requirements have commenced. Molong & district residents continue to be involved by way of public meetings.

The Copper Hill JORC-compliant resource is 173 million tonnes grading at 0.31% copper and 0.26 g/t gold.

The company predicts that, on average, over 20,000 tonnes of copper and 75,000 ounces of gold could be produced annually over a mine life of 20 years at the project.

GCR has a market capitalisation of A$27.22 million and had A$7.87 cash at the end of the September quarter.