Horseshoe Metals intersects 20% copper at Horseshoe Lights, new assays pending
Wednesday, September 19, 2012 by John Phillips
Neil Marston, managing director, told to Proactive Investors today that the company will continue drilling at Horseshoe Lights until the end of the year - including deeper diamond drilling - which will culminate in a new resource in the March quarter of 2013.
Horseshoe Metals (ASX: HOR) has again delivered to the market some very impressive reverse circulation drilling results from the wholly owned Horseshoe Lights project in Western Australia - which includes 2 metres at 20.0% copper.
New highlights from the North West Stringer Zone include:
- 19 metres at 2.9% copper from 73 metres, including 2 metres at 20.0% copper and 0.4g/t gold;
- 16 metres at 2.5% copper from 73 metres, including 10 metres at 3.5% copper at 0.2g/t gold; and
- 29 metres at 1.6% copper from 63 metres, including 6 metres at 3.7% copper.
The North West Stringer Zone is located immediately north - west of the Main Zone of high grade mineralisation which was the focus of mining in the historic Horseshoe Lights open pit. The latest drilling in this area has continued to intersect multiple zones of copper mineralisation.
Supporting these high grade results are broad intersections from the Motters Zone, which is located 100 metres north-east of the existing open pit and is considered to be a parallel zone of oxide copper mineralisation to the Main Zone.
- 29 metres at 1.2% copper from 89 metres, including 4 metres at 3.8% copper;
- 24 metres at 1.0% copper from 92 metres; and
- 48 metres at 0.6% copper from 4 metres.
Drilling continues to target copper mineralisation north of the existing open pit in the North West, Main and Motters zones.
Neil Marston, managing director, told to Proactive Investors today that the company will continue drilling at Horseshoe Lights until the end of the year - including deeper diamond drilling - which will culminate in a new resource in the March quarter of 2013.
Horseshoe Lights currently has a Measured, Indicated and Inferred Resource of: 8.6 million tonnes at 1.06% copper and 0.13g/t gold at 0.5% cut-off for 91,000 tonnes of contained copper metal and 37,400 gold ounces.
More drilling results in weeks
Marston also told Proactive Investors today that the company will have another 1500 metres of reverse circulation drilling results to announce from Horseshoe Lights in October.
"At Horseshoe Lights from October, we will then focus on test depth extensions to the south of the mine, which will include using diamond drilling."
Also due for October release are assays for around 4000 metres from the Kumarina Project - which includes in-fill drilling at the highly prospective Rinaldi Prospect.
Analysis
Comparing projects can be difficult - but with the continued very high grade copper discoveries Horseshoe Lights does have some similarities to Sandfire Resources' (ASX: SFR) massive De Grussa project - which is located less than 100 kilometres away.
Historical production at Horseshoe Lights is over 110,000 tonnes of direct shipping ore, which draws comparisons to De Grussa project - which is looking at producing 140,000 tonnes of direct shipping ore - at around the same grade as the historical production at Horseshoe Lights.
Around one month ago Proactive Investors published: "Now consider that Horseshoe Metals has a market cap of $12 million and cash of $2.5 million (June 30 2012), the market is placing a valuation of less than $10 million on the company's projects - which not only includes Horseshoe Lights - but another potential "company maker" in Kumarina.
Since that article, the Horseshoe Metals share price has jumped 69% to $0.27.
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