Blue Rose – Olary Joint Venture (copper) - Giralia 100%, PacMag earning initial 51%

The Blue Rose – Olary Joint Venture is located 300 kilometres north-east of Adelaide in South Australia. PacMag Metals Ltd (“PacMag”) has earned 51% interest from Giralia in the 1500 square kilometre project. Giralia has recommenced contributions to ongoing exploration to hold its interest at 49%.

The Blue Rose copper–gold–molybdenum prospect on the southern joint venture tenement hosts a near surface oxide copper deposit and associated high grade copper–gold sulphide mineralisation, with previous drill intersections at Blue Rose including 41 metres @ 1.62% copper, starting from less than 10 metres below surface. Preliminary metallurgical testwork indicates the copper oxide mineralisation is amenable to conventional acid leaching. Beneath the oxide zones drilling has intersected copper-gold-molybdenum sulphide mineralisation, which is open to extension along strike.

Blue Rose Oxide Copper Mineralisation
A total of 102 aircore holes were drilled (2732 metres) to test six regional geophysical targets that have aeromagnetic signatures similar to that associated with the Blue Rose copper deposit, as well as three resource extension holes and one hole drilled to obtain additional metallurgical sample material. New infill metallurgical drill hole (RABR822) from the Blue Rose project returned 46 metres @ 2.2% copper and 0.8 grams per tonne gold from 11 metres depth, (including 28 metres @ 3.0% copper and 0.8 grams per tonne gold). The result confirms both the lateral and depth continuity of oxide copper mineralisation of the eastern zone, as well as highlighting potential for high-grade copper pods within the two shallow sub-horizontal oxide copper zones, defined by previous drilling over a cumulative strike length of greater than one kilometre.

Results from the six aeromagnetic geophysical targets that were drill tested and highlight broad intervals of strongly anomalous copper such as RABR689; 20-34 metres, 14 metres @ 0.1% copper (to end of hole) located 1.6km north west of the Blue Rose deposit in broad spaced (400 metre by 100 metre) geochemical reconnaissance drilling.

Results from a single reconnaissance line located approximately 4 kilometres west of Blue Rose, drilled to test a discrete magnetic high, returned anomalous copper results in five drill holes over a 500 metre interval with a peak of 4 metres @ 0.5% copper in hole RABR767 from 28–32 metres). The hole ended in anomalous copper mineralisation at 35m depth. Four of the five holes (including RABR767) on the drill section ended in anomalous copper, associated with altered sedimentary rocks. The drill traverse is 1.8 kilometres west of previous aircore drilling and highlights potential for the discovery of further zones of mineralisation similar to the Blue Rose copper deposit.

The Blue Rose Joint Venture is currently considering approaches from external parties interested in progressing development of the copper-oxide mineralisation at Blue Rose. The joint venture remains committed to the district and will continue to focus on the large highly prospective exploration acreage.

Netley Hill Copper-Molybdenum Target
A three dimensional deep search (500 metres) induced polarisation geophysical survey (covering 3.2 kilometres of strike by 1.6 kilometres width) capable of detecting sub-surface disseminated sulphide minerals was completed over the Netley Hill copper-molybdenum target, defining a very strong chargeability anomaly interpreted to represent a sub-surface accumulation of sulphide minerals. The three kilometre long by 1 kilometre wide geophysical anomaly lies directly below strongly anomalous copper and molybdenum drilling results intersected in historic shallow percussion drill holes. The IP anomaly and associated copper and molybdenum results lie within an area of intense alteration defined by surface mapping of sparse outcrops which in turn is situated at the centre of a 5 kilometre diameter (bulls-eye) magnetic anomaly in Ordovician age granite rocks.

Limited shallow drilling was completed by Asarco in the 1970’s to test outcropping altered rocks at Netley Hill, with 4 previous percussion drill holes (NETRP 3, 4,15 and 17) defining a copper-molybdenum rich zone over a 1.5 kilometre by 600 metre area all ended in strongly anomalous copper (>0.2% copper) and or molybdenum (>0.01%) mineralisation.

The joint venture completed a 4 hole diamond drilling program (totalling 1397 metres) to test the source of the large geophysical anomaly in early 2008.

Final assays for selected visually mineralised intervals of all four drill holes (NTDD001-4) completed at Netley Hill include:
NTDD001 - 40 metres @ 0.05% molybdenum and 1 grams per tonne silver from 11 metres

*Interval grades are simple arithmetic length weighted averages using cut-off grades of 0.02% molybdenum. Reference datum is GDA94Zone 54. Samples are ½ core HQ and NQ2. Samples were analysed by ALS Chemex for Ag, Cu and Mo, by ICPAES. Hole was drilled vertically and interval thickness is considered representative of the true thickness of mineralisation. DD = diamond core drilling.

The equivalent near surface interval in the adjacent hole (NTDD002) has been cut and dispatched to the laboratory and assays are awaited. Selected visually mineralised intervals from the remaining three holes returned individual 1 metre samples grading up to 0.51% copper, 416 ppm molybdenum and 1.9 grams per tonne silver.

Preliminary metallurgical testwork on the molybdenum to assess its recoverability is planned.