Gold Results in Buckreef

RNS Number : 7249I

Obtala Resources PLC

24 November 2008

 



Embargo for 7.00am on 24 November 2008

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

Gold Results in Buckreef

The Board of Obtala Resources, the AIM quoted mineral exploration and development company is pleased to provide the market with an update of the results from the soil sampling conducted over the Buckreef licence in Northern Tanzania within the Lake Victoria Goldfields.

Highlights

• New gold zone identified in world class producing region

• Geochemical anomalies identified

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

• 923 soil samples collected

• Follow-up geochemical sampling planned based on these results

• Anomalies occur 4km west of IAMGOLD's Buckreef Gold Mine

A total of 923 samples have been collected from two phases of geochemical sampling in July and October 2008, with 704 parts per billion (ppb) gold being reported from one soil sample. This represents a new zone of mineralisation that has not been previously tested by either trenching or drilling.  

Sampling has been conducted by Obtala's geologists with initial sampling over the licence area completed at 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. 

Project	Work Status	Soil	QA/QC	Total
Buckreef	Complete	923	98	1,021
Total Samples Taken		923	98	1,021

Table 1. Total number of samples collected to date

Results from the soil samples returned the following gold results:

Gold in Soil (ppb)	No of samples
>200	6
51-200	5
31-50	9
>21-30	8

From the data collected over the entire licence area 97% of the samples returned are less than or equal to 20ppb,with 90% of the samples returning values less than or equal to 10ppb indicating background values over the licence area less than 10ppb gold. A total of 98 quality control and assurance samples (28 standards samples, 46 duplicate samples and 24 blank 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:

http://www.rns-pdf.londonstockexchange.com/rns/7249I_-2008-11-21.pdf

The main anomaly trends in a north-easterly direction with a horizontal distance of over 1,400m, within the greenstone lithologies. This feature may resolve into a considerably larger target once the additional follow up sampling is completed. An additional two geochemical anomalies have been recorded in the vicinity of the granite-greenstone contact.

Geological mapping has been completed over the licence. It is determined that the geochemical anomalies lie with the greenstone units, which occur within 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. Follow up sampling at a reduced sample interval and spacing is planned for early 2009 and will be supplemented with a ground magnetic survey over the area to provide additional data to assist in the interpretation of the sub-cropping structure and lithological contacts.

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 1Moz  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 Ltd.

Frank Scolaro, Chairman of Obtala, commented that   the Buckreef licence is positioned ideally in a world-class gold producing region, with operations including Anglo-Ashanti being immediately adjacent. Our strategy remains the same, the realisation of shareholder value through strategic associations and we remain confident that this will be achieved throughout our portfolio of licences.  Obtala remains fully funded to continue its exploration programme over all its licence areas for 2009 and thereafter. I am confident that further low cost and efficient exploration work will deliver additional encouraging results.

Contact:

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

 

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