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Laconia Resources encouraged by silver assays from drilling at 701 Mile

Laconia Resources (ASX: LCR) has received promising silver assays from drilling at its 701 Mile base metals project in the Pilbara, including a peak hit of up to 23.9 grams per tonne of silver from surface.

Significantly, silver anomalism was identified to extend over a strike length in excess of 15 kilometres, and the project is prospective for base metals, gold and uranium.

The 701 Mile project is located approximately 80 kilometres south-east of Newman in Western Australia, within the north-eastern portion of the Collier Basin, and is transected by a regionally significant structure called the Tangadee lineament.

The company recently completed an extensive auger drilling and soil sampling program comprising 751 auger holes and 384 soil samples for a total of 1,135 samples.

The auger drill traverses were sampled on 400 by 400 metre spacings over areas of favourable geology, proximal to magnetic structures, and moving to 800 by 800 metre spacings in other parts of the tenement.

Large areas of the tenement are overlain by cover including alluvial wash, calcrete and sand. Auger drilling was conducted in these areas to penetrate this cover to obtain meaningful geochemical samples.

Managing director Ian Stuart said, “We consider this kind of anomalism highly significant and it adds greatly to the base metal prospectivity of the project.

“This auger drilling has penetrated that surface cover so we’re getting meaningful samples, but they’re highly anomalous.

“The area of silver-lead anomalism is very extensive, exceeding 15 kilometres in length.

“If you put the anomalism together with the large structures that are running through it, it bodes well for more exploration.”

Stuart said given the coincident geochemical anomalism and favourable geological structures, Laconia will immediately prioritise follow-up geochemical sampling and begin planning for rotary air blast drilling to test these targets.

He anticipates this drilling program will begin at the end of the first quarter, start of the second quarter of 2012.