These diamond drill holes will be the first ones drilled under the Main Zone since mining operations were suspended in 1994 and are targeted at:
- Testing for high grade copper-gold zones, potentially located down dip of the Main Zone, of sufficient grade to potentially support underground mining; and
- Testing exploration targets outside of the immediate pit area which have not been adequately tested by previous exploration efforts.
At least two holes are planned to test for high grade zones down dip of the Main Zone and will be collared on the west side of the existing open pit.
Previous deep diamond drilling by Barrack Mines Limited in 1988-89 identified zones of copper mineralisation down dip of the Main Zone below the open pit, with assays of 13 metres at 3.5% copper including 5 metres at 7.2% copper.
This copper mineralisation remains open down dip and will be the target zone for testing in this diamond drilling program.
The company will also test a Chert Hill target with one diamond drill hole with follow-up drill holes planned once the results are received.
This high priority volcanogenic-hosted massive sulphide target is associated with coincident gravity high and chargeability high anomalies located about 400 metres south east from the Main Zone of the existing Horseshoe Lights Mine.
It will be one of several sites to be drilled this year within a target corridor extending 800 metres to the southeast of the existing open pit.
Mineral Resource Estimate
The company added that work on the mineral resource estimate had been delayed due to the unavailability of key personnel over the Easter holidays.
It had originally been scheduled for completed by 31 March 2013.
Modelling work to finalise the mineral resource estimate is planned to recommence next week.
The Horseshoe Lights project includes the old open pit of the Horseshoe Lights copper-gold mine which operated intermittently between 1946 and 1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper.
The Horseshoe Lights ore body is interpreted as a deformed VHMS deposit that has undergone supergene alteration to generate the gold-enriched and copper-depleted cap that was the target of initial mining.
The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation, which also host Sandfire Resources' DeGrussa Cu-Au mine.
Horseshoe Metals had $1.13 million in cash as of 31 December 2012.
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