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Stratum Metals Has Peak Assay Of 121g/T Gold From Goodenough

Stratum Metals (ASX: SXT) has received assays, including a peak result of 121 grams per tonne gold, from previous reverse circulation drilling at its Goodenough gold resource in the Menzies Project, Western Australia.

Drilling at the "bridge zone" north of the Auntie Nellie Pit has also intersected mineralisation suitable for open pit mining.

Importantly, this demonstrates the potential to expand the Auntie Nellie Pit to include the previously drilled near surface gold mineralisation at the CSR Prospect about 150 metres north.

Goodenough

Nine holes drilled by the previous tribute miner at Goodenough were logged and sampled, returning mineralisation consistent with the high grades reported from historic production.

Notable results include:

- 9 metres at 16.63 g/t gold and 19.37g/t silver from 44 metres including 4 metres at 36.54g/t gold that in turn hosts the peak 1 metre at 121g/t gold interval;
- 6 metres at 3.77g/t gold from 13 metres including 1 metre at 20g/t gold; and
- 2 metres at 5.02g/t gold and 21.25g/t silver from 31 metres.

Stratum added there appears to be a strong association of silver with gold.

The previous drilling was assayed for gold only, by fire assay, and no consideration was given to the presence of silver within the resource.0

The previous tenement holder had reported bottle roll leach tests on the Goodenough ore produce more consistent higher grade gold assays.

This is thought to be due to a nuggety component to the gold, which is yet to be confirmed by Stratum.

Auntie Nellie open pit

Of the nine holes drilled in the 'bridge zone' six intersected significant gold. This is shallow and in widths that would be considered suitable for open pit mining.

A notable intersection is 7 metres at 2.65g/t gold from surface including 4 metres at 4.27g/t gold and 2 metres at 3.64g/t gold from 26 metres.

Initial interpretation of the results indicates potential for several generally north-south trending zones of gold mineralisation within fractured basalt, chert, pyroxenite and sheared ultramafics potentially hosted within a north-northwest trending structural zone.

Review of past work provides support for repetition of similar (second order) structures running off the major north-northeast trending Springfield-Venn shear.

The Springfield-Venn shear is located in the eastern walls of both the Auntie Nellie and Granny Venn Pits, and historic drilling was perpendicular to that structure.

Notably, the recent drilling suggests the second order structures to be significant controls, giving Stratum the opportunity to expand on these results and identify new targets in the area that could ultimately lead to expansion of the historic open pits.

Detailed mapping of the Auntie Nellie and Granny Venn Pits will commence this week, with insights gained from this work to be considered in line with these positive drill results and past work to best target further drilling in the area.

Massive sulphide potential

Initial data from Stratum's recently commissioned HeliTEM survey across its Menzies Project has been received by consulting independent geophysicists Core Geophysics.

Interpretation and modelling has started and the company expects to receive initial feedback from Core Geophysics on the relationship between the 2006 ground TEM survey, recently completed drilling and down hole electromagnetic, and the HeliTEM data.

This is also expected to provide initial guidance on potential additional drilling targets.

Stratum had recently intercepted 75 metres of sulphides close to surface in the first hole drilled to test three electromagnetic conductors at its East Menzies Goldfields Project.

Analysis

The results from drilling validates Stratum's belief that the Menzies Project has the capability to deliver low cost gold production through good resource grades, high recovery rates, near surface gold and its close proximity to infrastructure.

Exploration to define an economic massive sulphide ore body could further improve the prospectivity of the project.

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