Kimberley Metals encouraged by drill hits

THE DRILL SERGEANT: Kimberley Metals has received the initial results from a 6,000 metre reverse circulation drilling program it currently has underway at its Sorby Hills project, located near Kununurra in the East Kimberley region of Western Australia.

According to Kimberley Metals, Sorby Hills is the largest undeveloped silver-lead deposit at open cut depth in Australia.

The project is jointly owned by Kimberley Metals (75%) and China’s largest lead and silver smelter, Henan Yuguang Gold and Lead Company (25%).

The results that have been received so far have been for the initial 24 holes drilled in the program, which consists of 111 holes.

This intitial drilling has been focused on the south and central portions of the D-E deposit and have returned some impressive high-grade intersections including but not limited to:

–    11 metres at 18.5 per cent lead and 164 grams per tonne silver;

–    12m at 18.1% lead and 168g/t silver; and

–    15m at 12.7% lead and 114 g/t silver.

Kimberley Metals said it was encouraged by the initial results and is confident that the drilling program will lead to a significant conversion of Inferred to Indicated Resource category and an upgrade in metal content for the D-E deposit.

Drilling is ongoing and a large number of additional assay results are still pending, with visual logging and field portable XRF results indicating further high grade silver and lead mineralisation.

Kimberley’s current strategy is to focus on shallow high grade mineralisation, less than 70m deep, that will be amenable to low cost open pit mining operations in C-D-E deposits.

The company recently a completed detailed gravity program along the mineralised corridor that outlines the structural/lithological controls on mineralisation.

This showed the mineralisation appears to follow the flanks of gravity highs and highlights a number of new targets previously untested by drilling and outside of current Resources.

“The high grade and shallow nature of the mineralisation at the D-E Deposit provides an ideal location for initial low cost, high margin mining operations at Sorby Hills from 2013,” Kimberley Metals executive chairman Jim Wall said in the company’s announcement to the Australian Securities Exchange.