Atherton Resources encounters big zinc at King Vol

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THE DRILL SERGEANT: Atherton Resources (ASX: ATE) announced a 60.7 per cent zinc intersection over 0.55 metres outside the current resource from drilling being carried out at the company’s King Vol zinc project in north Queensland.

The company said it had also encountered other results located within the current resource.

Atherton considers the 60.7 per cent result to be of some importance being outside the current resource boundary, as it expects it will further strengthen the project’s feasibility study now underway while highlighting the high-grade nature of the King Vol mineralisation.

The assay results returned include:

Eastern Mineralised Contact Zone (EMCZ)

KVD130
13.2 metres at 11.1 per cent zinc and 0.9 per cent copper from 310.9m, including 1.5m at 20.4 per cent zinc and 0.8 per cent copper from 310.9m and 5.4m at 20.2 per cent zinc and 2.0 per cent copper from 317.8m;

KVD130
5.5m at 13.3 per cent zinc and 0.8 per cent copper from 331.4m;

KVD128
0.35m at 28.6 per cent zinc and 2.2 per cent copper from 348.4m.

King Vol Zone (KVZ)

KVD130

2.7m at 15.2 per cent zinc and 1.4 per cent copper from 206.7m, including 0.55m at 60.7 per cent zinc and 3.5 per cent copper from 208.55m.

Atherton described King Vol as a high-grade zinc deposit with a combined Mineral Resource of 2.99 million tonnes at a grade of 11.9 per cent zinc, 0.8 per cent copper, 0.6 per cent lead and 29.9g/t silver.

The Mineral Resource comprises 1.05 million tonnes in the Indicated category and a further 1.94 million tonnes in the Inferred category.

Atherton explained it had commenced diamond drilling at King Vol in June to increase the Indicated
Mineral Resources as part of the project’s Feasibility Study, which is due to be completed by March 2016, with first production scheduled for early 2017.

Ten of a planned 18 diamond drill holes have been completed so far.

“King Vol is going from strength to strength as we move towards first production in early 2017,” Atherton Resources managing director Tony James said in the company’s announcement to the Australian Securities Exchange.

“It is clearly an outstanding project, technically and financially.

“The scoping study showed the project will enjoy very low capital and operating costs and will be highly leveraged to the forecast rise in zinc prices over the next couple of years.

“These latest results further enhance the project by expanding the mineralisation outside the existing resource estimate.

“The intersections will contribute to a planned new resource estimate, which will underpin the feasibility study.”

Website: www.athertonresources.com