Tuesday, 17th May 2005 (2658 views)

Kangara Zinc announced today that it has discovered a significant new gold zone in northern Queensland, Australia.

The Perth-based company said that drilling had returned an outstanding intersection of 14.6 metres at 7.53 g/t gold in the footwall of the Mungana gold and base metals deposit.

The discovery means that the company could see significant increases in the current 703,000-ounce gold resource at Mungana, which is located near Chillagoe, about 150 kilometres to the north-west of Kagara's Mount Garnet treatment facility.

"We believe the result is very significant, as it highlights both the high tenor and intricately interwoven nature of the gold and base metal mineralisation at Mungana," Joe Treacy, technical director at Kagara, said.

Mr Treacy added that a feasibility study, to begin later this year, would look at the optimum method for extracting and maximising the value of the gold and base metal resources at Mungana.

Current scoping work is focusing on bulk underground mining, followed by heavy media separation to split the gold and base metal ores, then processing in separate plants.

 

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