Tasman is managing the initial exploration program, which is to be completed within 12 months of the date of the agreement.
Drill hole VUD 11 is inclined at -70 degrees and drilled towards the south, and was designed to test the central portion of the very large gravity anomaly, which comprises the southern segment of the Vulcan target.
VUD 11 intersected the basement at approximately 836m (784m vertical), and was completed at 1467 metres.
The entire basement intersection of 631m consisted of a sequence of highly altered and brecciated rocks which included a 12 metres intersection of massive hematite.
The composition of the rocks is dominated by minerals which characterise IOCGU ore deposits such as Olympic Dam; in particular, sericite, hematite, carbonate and quartz.
However, VUD 11 contains relatively minor amounts of copper sulphides, and assays for copper, gold and uranium, when received, are not expected to be high.
Despite the relative paucity of mineralization in VUD 11 and the two previous holes drilled in this southern segment of the Vulcan IOCGU target, Tasman said it is "encouraged by the magnitude and large aerial extent of the geological processes (extensive hematite rich brecciation and pervasive hematite-sericite-carbonate alteration) that have clearly been operating in this part of Vulcan."
Tasman said the task is now to find where this very large system has concentrated the copper, gold and uranium normally associated with these IOCGU geological processes.
Drilling has now commenced on VUD 12, the fourth hole in the Tasman - Rio Tinto Exploration Farm-In and Joint Venture.
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