Beadell Resources extends Duckhead

THE DRILL SERGEANT: Beadell Resources ASX:BDR has received further high-grade composite results from an ongoing drilling program at the company’s Duckhead prospect in Brazil.

The company is of the opinion that the drill results confirm the initial Duckhead JORC inferred resource of 115,000 tonnes at 17.1 grams per tonne gold for 63,000 ounces will continue to grow significantly.

 

Duckhead plan showing location of new RC drill results. Source: Company announcement

Results from the recent drilling include:

–    9 metres at 123.2 grams per tonne gold, including 2 metres at 547.9 grams per tonne gold;

–    20 m at 56.2g/t gold, including 5m at 206.5g/t gold;

–    12m at 29.0g/t gold, including 4m at 55.2g/t gold;

–    14m at 8.7g/t gold, including 7m at 16.3g/t gold; and

–    10m at 30.0g/t gold, including 5m at 59.4g/t gold.

“The drilling has identified the up plunge location of the high-grade orebody and down dip extensions which remain open,” Beadell Resources said in its ASX announcement.

“These are the first series of results from a 15,000 metre RC drilling program to infill and extend the existing resource at Duckhead.

“Drilling, and updated resource compilations will be completed by end of calendar 2012, prior to open pit optimisation.”

The company considers the results demonstrate the direct up dip extension of the Duckhead orebody and are all outside of the existing resource.

It said they also demonstrate the open pittable location and geometry of the mineralisation.

The shallow high-grade mineralisation remains open to the east, which the drilling has targeted, from which results are still to be received.

The company said it expects to complete an expanded Duckhead resource by end of 2012, which will be closely followed by open pit optimisation to determine a reserve.

“Incorporation of Duckhead into the medium term future mining schedule will have a materially positive effect on the Tucano production profile,” Beadell said.

The Duckhead prospect is located southeast of the Tucano gold plant and is hosted in the same Banded Iron Formation contact that hosts the five million ounce Tucano gold deposits.

The Duckhead orebody also has a hangwall of deeply weathered Banded Iron Formation.

This forms part of the Anglo Ferrous iron ore resource.

Under the Duckhead Agreement Beadell has with Anglo Ferrous a mechanism to jointly mine this area is now in place.