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Horseshoe Metals delivers bumper 90% boost in copper Resources at Horseshoe Lights

Horseshoe Metals (ASX: HOR) is strategically positioned to benefit from the constantly evolving copper gold province in the Bryah Basin of Western Australia, with the company delivering a bumper resource upgrade today.

Conducted by CSA Global Pty Ltd, the wholly owned Horseshoe Lights Copper Gold project received a 90% boost in contained copper, with the JORC Resource now 8.4 million tonnes at 1.1% copper and 0.14 grams per tonne (g/t) gold for 91,400 tonnes of copper and 36,400 ounces of gold, with a 0.5% cut-off.

Providing another plus was a boost in confidence categories, with around 3% of the resource now Measured and another 3% Indicated.

The estimation has been based upon most of the historical drilling data available as well as 41 drill holes completed by the company since 2010, but excludes any surface stockpiles or mineralised dumps located at the project.


Horseshoe Lights - a history of production

Highlighting the potential of the Horseshoe Lights project is the significant past production, which helps to outline the future potential with more advanced mining techniques.

Discovered in 1946, shallow open pit and underground gold mining was conducted during the 1950's, with a gold CIP plant operating for four years in the 1980's, followed by a copper flotation plant and DSO for six years to 1994.

The DSO production was in excess of 110,000 tonnes, comprising of chalcocite which is known to exceed 20% copper with gold credits.

Operations were halted in the mid-1990's due to the low copper price, with the project now becoming more economically feasible as the copper price sits around US$3.40 a pound.

Currently the open pit is 215 metres from the surface.


Strategically positioned for success

Ticking another box for Horseshoe Lights is the location in an emerging significant copper gold province in Western Australia, located 75 kilometres west-northwest of Sandfire Resources NL’s (ASX: SFR) massive Doolgunna copper gold project.


The next step

With the resource upgrade delivered, Horseshoe Metals will now commence phase four drilling, which the company aims to complete before the end of 2011.

A DDIP survey has generated some interesting deep drill targets in a shear zone along strike from the main ore zone at Horseshoe Lights.

The company's deep drilling will be the first in this highly prospective zone, with the DDIP survey having the capacity to penetrate the ground to a depth of about 400 metres depth.

The company said the survey successfully identified a zone of medium to strong chargeability at a depth of around 200 metres below ground level which is generally co-incidental with a known shear zone referred to as the South-East Shear Zone.

Importantly, this shear zone is located along strike to the south-east of the main zones of copper gold mineralisation located within the existing Horseshoe Lights open pit.