Vancouver — Redemption joint-venture partners Committee Bay Resources (CBR-V, CBYRF-O) and Focus Minerals (FML-A) like what they see so far in drilling at the Perseverance gold deposit in the Coolgardie region of Western Australia and plan to accelerate the program.
Resource delineation and infill drilling from 2006 returned five holes with significant high-grade gold values including:
* in hole 07PEC002, an 11-metre intercept (from 188 metres down-hole) that cut 23.65 grams gold per tonne, including a 6-metre section running 41.94 grams gold in the East Perseverance quartz-sulphide zone, followed by lower-grade gold values in deeper diorite-hosted stockwork mineralization; and
* in hole 07PEC003, within the quartz-sulphide zone, a 9-metre intersection (from 187 metres depth) averaging 29.9 grams gold, including a 5-metre interval of 51 grams gold. Again, stockwork-hosted gold mineralization was encountered farther down-hole.
Results correlate well with previous high-grade drill intercepts from the quartz-sulphide zone, which has been traced from surface to 160 metres depth. The zone varies in thickness from 3 to 27 metres and has been tracked over 300 metres along strike, remaining open downdip.
The Redemption JV partners are boosting the drill effort with the aim of producing a resource estimate for the Perseverance deposit. The review will constitute part of a broader feasibility study on the JV area, including pit optimizations on several deposits.
“These results indicate significant potential for us to develop additional tonnage at depth,” said Committee Bay president and CEO John Williamson. “Mineralization at Perseverance occurs in several parallel zones, all located approximately 300 metres north of the historically productive 550,000-ounce Tindals system, including the Empress underground infrastructure.”
The project is a 50-50 partnership between Committee Bay and Focus Minerals covering about 210 sq. km of prospective greenstone terrane in the Coolgardie region.
Deposits on the Redemption land package currently host about 6.6 million tonnes of measured and indicated resource grading 1.8 grams gold (about 385,000 contained ounces gold). An additional 13.5 million tonnes of inferred resource at 2.65 grams gold has also been reviewed (about 1.15 million contained ounces gold).
The Redemption JV partners also hold the fully permitted Three Mile Hill mill with an annual processing capacity of 1.2 million tonnes.
Committee Bay reports spending of about A$6.6 million ($6.1 million) towards its 50% earn-in on the joint venture and expects to hit the A$8-million ($7.4 million) mark by June 2007, a year ahead of schedule.
Shares of Committee Bay soared on the high-grade gold intercepts, gaining as much as 50% to touch the 70-level on strong volume.
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