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Enterprise Metals Receives Assay Results From Vulcan Drilling

Enterprise Metals (ASX: ENT) has intersected zones of disseminated gold sulphides in initial scout reverse circulation drilling to test the primary zone below and to the southwest of the Vulcan oxide gold/base metal target.

Interestingly, Enterprise believes that the previous gold and anomalous base metals intersections in the oxide zone (and now in the primary zone) are likely to be caused by relatively narrow veins of quartz-sulphide carrying gold and anomalous base metals.

This is over the 150 metres of strike at Vulcan tested by holes VRC001-005.

Importantly, the 1,500 metre long anomalous zone within which Vulcan is centred still remains to be tested.

Vulcan is part of the Doolgunna Project, which covers 1,100 square kilometres and is located about 110 kilometres northeast of Meekatharra in Western Australia.

The search is for copper-gold rich volcanogenic massive sulphide (VMS) ore deposits within the Narracoota Formation volcanics, about 13 kilometres southwest of Sandfire Resources' (ASX:SFX) DeGrussa copper mine.

Drilling tested the potential for the discovery of massive sulphides at depth. The program was designed to test below the gold-base metal regolith anomalies identified by a 2012 aircore drill program.

Enterprise has received assays for an initial six scout reverse circulation holes, totalling 1,446 metres, drilled in late January.

Three holes (VRC001, VRC002 and VRC006) intersected wide zones of argillic alteration at around 100 metres downhole after intersecting relatively fresh basalt and minor gabbro (Narracoota Formation volcanics).

Disseminated sulphide (mainly pyrite) was intersected in all holes.

A zone of disseminated arsenopyrite/chalcopyrite in one hole returned 4 metre composite assays of:

- 8 metres at 1.7 grams per tonne (g/t) gold from 112 metres;
- 20 metres at 1.1g/t gold from 128 metres, including 4 metres at 2.9g/t gold; and
- 8 metres at 0.1% copper, 0.1%lead, 568 parts per million arsenic, 729 parts per million zinc and 18 parts per million cadmium from 140 metres.

All holes were lined with PVC casing for downhole electromagnetic surveying. The surveying was subsequently completed on holes VCR001, VCR003 and VRC006 but no significant off-hole conductors - indicating no nearby massive sulphides - were identified.

Hole VRC006, which was drilled to the southwest of Vulcan, intersected 28 metres at 298 parts per million copper from 48 metres and 48 metres at 3.4 parts per million tungsten from 140 metres.

Additional aircore drilling

The anomalous zone northeast and southwest of the Scotty prospect remains open and further aircore drilling is planned.

A 5,000 metre infill aircore drilling program to follow up Narracoota Formation hosted gold and base metal targets at Scotty, Sulu, McCoy, Nimoy and Goodin Fault is expected to start in March 2013.

A second regional aircore drilling program of around 4,000 metres is planned to commence late March.

This program will selectively test magnetic, airborne electromagnetic and copper-in-soil anomalies associated with the Southern Boundary Fault (SBF), which forms the southern margin of the Doolgunna Graben and separates the Doolgunna Formation sediments from the Johnson Cairn Formation.

The regional geological setting of the SBF and Doolgunna trough is believed to be analogous to many of the major sediment-hosted copper provinces such as Mount Isa in Queensland, Zambia in Africa and the Kupferschiefer in eastern Europe.

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