New Gold Zone at the Buckreef

RNS Number : 8741O

Obtala Resources PLC

16 March 2009

 



16 March 2009

OBTALA RESOURCES PLC ('Obtala' or the 'Company')

New Gold Zone at the Buckreef Licence

The Board of Obtala Resources, the AIM quoted mineral exploration and development company is pleased to provide the market with an update on the results from in-fill soil sampling conducted over the Buckreef licence in Northern Tanzania within the Lake Victoria Goldfields. This follows on from the data released in the 'Gold Results in Buckreef' press release, dated 24th November 2008. 

Highlights

·                New gold zone identified in world class producing region

·                4 km long gold-in-soil geochemical anomaly identified

·                Gold in soil up to 704 parts per billion (equivalent to 0.704 g/t)

·                2,912 soil samples collected

·                Anomaly occurs 4km west of IAMGOLD’s Buckreef Gold Mine and 30km southwest of the multimillion ounce Geita Gold Mine owned by AngloGold-Ashanti

An additional 1,989 soil samples were collected between November 2008 and early February 2009, bringing the total soil samples collected on the project to 2,912, with 704 parts per billion (ppb) gold being reported from one soil sample.

Initial sampling by Obtala's geologists was completed over the whole licence area at a sample interval spacing of 250m X 50m (section line spacing x interval along section line) over the greenstone lithologies and at 250m X 100m in parts of the licence area underlain by granite. The in-fill samples were collected to reduce the sample interval to 125m X 25m over the anomalous zones previously indentified in November 2008. 

Project	Work Phase	Soil	QA/QC	Total
Buckreef	Phase 1	923	98	1,021
Buckreef	In-fill	1,989	214	2,203
Total Samples Taken		2,912	312	3,224

Table 1. Total number of soil samples collected to date

From the results received over the entire licence area 91% of the sample values returned are less than 10ppb, with this value being used to define the outline for the broad low grade gold-in-soil anomaly. 24 samples returned values greater than or equal to 50ppb, 13 of which were greater than 100ppb. A total of 312 quality control and assurance samples were included with the sample submissions to the laboratory representing 10% of the total number of samples collected.

Click to view map of Buckreef Gold in Soils Anomalies (PDF attached)

http://www.rns-pdf.londonstockexchange.com/rns/8741O_-2009-3-14.pdf

The main anomaly trends north-easterly in the west part of the licence, swinging to a west-northwest trend on the eastern side of an inferred fault structure along the granite-greenstone contact. The horizontal distance covered by the anomaly is over 4,000m. There are a number of north to northwest trending anomalous zones associated with higher gold-in-soil values.

Geological mapping has been completed over the licence. It is determined that the geochemical anomalies lie within the greenstone units, which occur in the southern and western parts of the licence. Sub-cropping granite occurs in the northern part of the licence although the actual contact is not defined on the surface. Based on the results a surface trenching programme will be implemented, supported with a ground magnetic survey over the area to provide additional geochemical and geological data to assist in the interpretation of the sub-cropping structure and lithological contacts which may be associated with the mineralisation with a view to identifying drill targets. 

In addition the field crews are completing a trenching programme at Shinyanga based on the highly encouraging soil geochemical results receive at the end of 2008.

All samples were submitted to ALS Chemex (ALS) laboratories in Mwanza, Tanzania. ALS has preparation facilities in Mwanza with the prepared samples being dispatched to their analytical facility in Vancouver, Canada for analysis. All samples are being analyzed for gold using the Au-ICP21 method (fire assay with ICP-AES). 

The Buckreef licence covers an area of 16.46km2 and is located 120km southwest of Mwanza, Tanzania's 3rd largest city situated on the shores of Lake Victoria, and 4km west of the Buckreef Gold Mine, currently being evaluated by IAMGold. The town of Geita lies 30km northeast of the licence area and is home to the multi-million ounce Geita Gold Mine owned by AngloGold Ashanti.

Frank Scolaro, Chairman of Obtala, commented that the results have resolved a considerably larger target than defined by the original sampling in 2008, and represents an exciting new zone of mineralisation that has not been previously tested or discovered by either trenching or drilling. The Buckreef licence is positioned ideally in a world-class gold producing region, with operations including AngloGold Ashanti being close by. Obtala remains fully funded to continue its exploration programme over all its licence areas for 2009 and thereafter.  We are quickly establishing, in our first year of operations, a good understanding of the value of our ground in the Lake Victoria region and remain very confident of realising value added transactions with partners in the future.

Contact:

Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.co.uk	[phone]
Obtala Resources plc
Ray Zimmerman/Jonathan Evans	[phone]
Zimmerman Adams International Ltd - Nominated Adviser and Broker

 

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