Exco upgrades Kangaroo Rat

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THE DRILL SERGEANT: Exco Resources has completed an updated resource estimate for the Kangaroo Rat deposit, located approximately 30 kilometres southwest of Cloncurry in northwest Queensland.

The new Inferred Mineral Resource for Kangaroo Rat stands at 1.26 million tonnes at 1.29 per cent copper and 0.63 grams per tonne gold (0.5 g/t cut-off).

The kangaroo update has increased the total Resource at the company’s Cloncurry project to 8.05 million tonnes at 1.62 per cent copper and 0.49g/t gold.

Exco used a total of 56 Reverse Circulation (RC) and Diamond drill holes in the estimation, 35 of which were drilled by the company with the remaining 21 from historical sources.

 

Location map of the Kangaroo Rat deposit. Source: Company announcement

The western-most hole drilled to date by Exco at Kangaroo Rat intersected 10m at 1.35 per cent copper and 1.13g/t gold from 17m.

The historic data shows a hole was drilled 50m to the south-west of the recent hole, which the company said is believed to have drilled over the main mineralised envelope at the project.

The combination of the new and old information has resulted in Exco planning a drilling program to test for western extensions to the Kangaroo Rat Resource.

Exco said the Mineral Resource has been classified as Inferred primarily to reflect the low number of bulk density measurements it has been able to collect to date.

The company is of the opinion that additional bulk density measurements from a limited diamond drilling program could allow it to convert the Mineral Resource to Indicated status.

“Exco intends to lodge an application for a new Kangaroo Rat Mining Lease during the current year,” the company said in its ASX announcement.

“The new Mining Lease will encompass the entire Kangaroo Rat deposit and will allow sufficient area for infrastructure development.
“Field surveys will also be completed for the Wallace South deposit (1.0Mt at 1.6g/t gold) located 1.5 kilometres south of Kangaroo Rat.

“A mining lease application is currently being considered for the Wallace South deposit adjoining Kangaroo Rat.”