Horseshoe Metals (ASX: HOR) continues to deliver impressive high grade near surface copper intersections from reverse circulation drilling at the Rinaldi Prospect, which is part of the Kumarina Project in Western Australia.
Kumarina, and also the company's Horseshoe Lights Copper/Gold Project, are strategically located in the resource rich Peak Hill Mineral Field.
Highlights from the latest drilling at the Rinaldi Prospect include:
- 24 metres at 3.1% copper from 46 metres, including 3 metres at 12.3% copper and 1 metre at 9.4% copper;
- 7 metres at 5.9% copper from 12 metres, including 2 metres at 13.6% copper;
- 3 metres at 4.2% copper from 11 metres, including 1 metre at 7.5% copper; and
- 5 metres at 2.2% copper from 17 metres, including 1 metre at 3.9% copper.
Lower grade intervals of copper were recorded in eight of the nine remaining holes drilled in the immediate Rinaldi Prospect area.
Observations from the latest drilling confirm that the copper mineralisation at the Rinaldi prospect is predominantly quartz vein hosted, with the main concentration of quartz veins occurring within a quartz diorite sill. However the copper mineralisation appears to be structurally controlled within a north-south fault zone.
The news flow will keep on coming from the prospect, with new drilling starting this week which will include in-fill and step-out around Rinaldi.
Horseshoe Lights Project
There is also exploration aplenty at the nearby Horseshoe Lights Project, with a gravity survey to kick off this week, to be followed by reverse circulation drilling of exploration targets early next month.
Neil Marston, managing director of Horseshoe Metals, spoke to Proactive Investors and said that the company is on-track to deliver a resource upgrade at Horseshoe Lights in the March quarter of 2013.
Horseshoe Lights currently has a Measured, Indicated and Inferred Resource of: 8.6 million tonnes at 1.06% copper and 0.13g/t gold at 0.5% cut-off for 91,000 tonnes of contained copper metal and 37,400 gold ounces.
Highlighting the potential of the project, recent highlights from the North West Stringer Zone, immediately north - west of the Main Zone of high grade mineralisation includes: 18 metres at 4.4% copper from 38 metres, including 1 metre at 23.5% copper and 4 metres at 8.6% copper.
The potential of Horseshoe Metals' copper projects has already been identified by the Wyllie Group Pty Ltd which recently was added to the company's share registrar - and holds 1.15 million shares for a 1.51% stake.
During the September quarter Investmet Limited also increased its shareholding in Horseshoe Metals to 19.8% following a $1.375 million placement.
Investmet have a strong track record of picking winners, and for example was an early stage investor in Northern Star Resources (ASX: NST) at a few cents - with the stock now trading at $1.55.
The continued investment in Horseshoe Metals by Investmet highlights the upside potential Proactive Investors have also identified in the stock.
A couple months ago Proactive Investors published: "Now consider that Horseshoe Metals has a market cap of $12 million and cash of $2.5 million (June 30 2012), the market is placing a valuation of less than $10 million on the company's projects - which not only includes Horseshoe Lights - but another potential "company maker" in Kumarina."
Since that article, the Horseshoe Metals share price has risen by 38% to $0.22.
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