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Breakaway Resources discovers high grade copper including 1m at 6.23% at Eloise

Breakaway Resources (ASX: BRW) has returned further high grade intercepts at the Sandy Creek Copper Gold Project, in the heart of the world-class Cloncurry Mineral District in Northwest Queensland.

Sandy Creek is part of the Eloise Exploration Project, which lies 20 kilometres west of FMR Investments’ Eloise Copper Mine, where mining activities re-commenced in January 2011.

At Sandy Creek, results from the final 12 holes of a recent 16-hole reverse circulation drilling program confirm the internal continuity of the shear-hosted mineralisation and indicate potential for extensions along strike and down-dip.

The company has identified high grade mineralisation over 600 metres strike length at Sandy Creek, with results including:

- 1 metre at 6.23% copper, 0.52 grams per tonne (g/t) gold and 23g/t silver from 65 metres;
- 2 metres at 4.64% copper, 0.69g/t gold and 46.3g/t silver from 44 metres; and
- 2 metres at 2.08% copper, 5.23g/t gold and 8.3g/t silver from 37 metres.

These high grade results were also supported by broader intercepts, including 45 metres at 0.66% copper, 0.14g/t gold and 2.7g/t silver from 36 metres.

Some drill holes displayed multiple copper-gold intercepts, which could indicate the presence of numerous parallel zones of mineralisation, further reinforcing the size potential of the prospect.

Breakaway managing director David Hutton said the latest results reinforced the strong potential to increase the size of the existing mineralisation.

“It is also encouraging to see evidence for multiple parallel zones of mineralisation,” Mr Hutton said.

“Given the close proximity of the prospect to the Eloise Copper Mine, we believe that there is excellent potential to quickly generate an economic resource at Sandy Creek.”

Breakaway has commenced drilling four diamond holes at Sandy Creek to test the down dip potential of the prospect.

Assays from these holes are expected by mid to late December 2011.

Potential northern strike extension

In addition to the reverse circulation drilling program, Breakaway has undertaken surface mapping and rock chip sampling that has identified semi-continuous subcrops of secondary copper mineralisation to the north of Sandy Creek.

The surface mineralisation, which stretches over 125 kilometres strike length, has not yet been drill tested.

Significantly, the surface mineralisation lies directly along strike from the northernmost drill hole at Sandy Creek, and could potentially be a northern strike extension to the existing mineralisation.

Results from the surface sampling are expected in late November 2011.

Placement boosts cash reserves to $3.3M

Breakaway recently completed a share placement to raise $1.1 million, increasing cash reserves to $3.3 million, to support exploration at Eloise, and specifically Sandy Creek.

The placement, to clients of lead manager Patersons Securities, comprised 22.7 million shares at $0.049, and included Breakaway’s second largest shareholder, FMR Investments.