Further high grade gold samples

RNS Number : 8256C

Stellar Resources PLC

22 April 2013

 



22 April 2013

Stellar Resources Plc

("Stellar Resources" or the "Company")

Further High Grade Gold Samples from Clogau Mine in Wales

Stellar Resources (AiM: STG) announces that it has received significant gold assay grades from its venture in Wales through its 49.9% interest in Gold Mines of Wales (Operations) Ltd ("GMOW").

Highlights:

·     Re-opening of the Clogau Gold Mine in Wales continues to access further unmined areas and provide excellent gold grades.

·     Assay grades as high as 749 grams/tonnes ("g/t gold") or 24 ounces/tonne ("oz/t Au") have been recorded from unmined areas.

·     16 out of 31 samples assayed better than 31.1 g/t Au.

·     15 samples assayed better than 62.2 g/t Au.

·     10 samples assayed better than 93.3 g/t Au.

Stellar Resources Chairman David Lenigas commented;

"The team in Wales continue to gradually re-open the underground workings at the old Clogau Gold Mine. These high grade gold samples from Clogau provide encouragement that the potential still exists to define new high grade gold mineralistion."

"In the current environment of declining gold prices, grades of this magnitude make Stellar Resources' Welsh gold project something the board feels committed to progressing."

GMOW currently holds an exploration licence area of 120km² covering the entire Dolgellau Gold Belt. The Dolgellau Gold Belt has been subject to multiple phases of deformation and mineralisation and contains 61 known occurrences of gold mineralisation. The Clogau Mine contains approximately 20 miles of drives and shafts, although exploration is currently focussed on the Tyn n Cornel level and 900 metres of the lower Llechfraith adit level.

Recent works by GMOW have included a further sampling program; make safe works and pre-planning visits from Flintshire county council. GMOW continues to work closely with the local community and authorities in order to potentially re-open the Clogau Mine to commercial gold extraction.

Assay results were from underground grab samples were taken from a wider area (400m) on the upper level from the Clogau Formation. Thirty-one samples were taken from both partly mined and unmined sections of the Clogau Gold Mine. The target areas include 'the Main Load ("ML"), Ned Pughes ("NP"), 'Old Chutes ("OS") and The John Hughes ("JH") sections of the Tyn Y Cornel section the Clogau Mine. The full list of assay results is shown in Table 1. 

Table 1: Recent Assay Results from Clogau Mine

SAMPLE	Gold
DESCRIPTION	Grams/tonne
ML-B-1	55.7
ML-B-2	5.21
ML-B-3	140.5
ML-B-4	129.5
ML-B-5	9.31
ML-B-6	22.1
ML-B-7	115.5
ML-B-8	12.05
ML-B-9	1.65
ML-B-10	10.15
ML-B-11	7.62
ML-B-12	5.81
ML-B-13	7.41
ML-B-14	28.3
ML-B-15	76.4
ML-B-16	109
ML-B-17	18.4
ML-B-18	28
ML-B-19	0.12
ML-B-20	0.58
OS 1-9	63.2
OS 2-10	79
OS 2-11	70.9
NP 1-16	749
NP 2-17	419
NP 3-18	739
NP 4-19	63.6
JH 1 -12	283
JH 2 -13	568
JH 3 -14	27
JH 4 -15	180.5

Note: These samples consisting of 1kg of rock were split into 500 gram lots and sent for assay at the ALS Minerals laboratory in Loughrea, Co Galway, Ireland. After preparation, the samples underwent ALS's code Au-AA15 analytical procedure. The Au-AA15 methodology is accelerated cyanide leach using LeachWELL™ reagent with an AAS (Atomic Absorption Spectroscopy) finish and is designed to detect gold in the range from 0.01-300 ppm. Where samples exceeded 300 ppm, ME-CON02 was applied.

Qualified Person

Qualified Person David Lenigas B.Sc. (Mining Engineering) has reviewed and approved the information contained in this announcement. David holds a Mining Engineering Degree (with Distinction) from the Kalgoorlie School of Mines (Curtin University) in Western Australia. David has a First Class Mine Manager's Certificate of Competency. David is the Executive Chairman of Stellar Resources Plc.

For further enquiries, please contact:

Stellar Resources plc

David Lenigas

Ed McDermott                                                                         [phone]

Northland Capital Partners Limited (Nominated Adviser & Broker)

Luke Cairns

Edward Hutton                                                                         [phone]

Pelham Bell Pottinger (Investor and Media Relations)

James Macfarlane                                                                     [phone]

 

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