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UXA Resources Discovers Visible Copper Southeast Of Olympic Dam

UXA Resources (ASX: UXA) has intersected visible copper mineralisation and strong alteration typical of an iron oxide copper gold system over a 150 metre interval at the Glenside prospect, part of the Stuart Shelf project.

Drilling at the Stuart Shelf joint venture project by partner Straits Resources (ASX: SRQ) is targeting IOCG deposits, south of BHP Billiton's (ASX: BHP) Olympic Dam mine and OZ Minerals' (ASX: OZL) Prominent Hill mine.

The drill hole in the Glenside target is the second of three holes in a 3,600 metre program, targeting a number of geophysical anomalies.

The second target is a combined gravity and magnetic feature on the Glenside tenement.

Indicating the potential of the target, the alteration assemblage is typical of IOCG alteration systems including magnetite, hematite, k-spar and pyrite.

Previous drilling by WMC, 8 kilometres to the north of the latest drill hole by Straits, intersected anomalous copper mineralisation of 6 metres at 0.37% copper from 1,140 metres in the same geophysical feature.

The drill target at Glenside lies 50 kilometres southeast of the Olympic Dam mine and 40 kilometres northwest of the Carrapateena copper-gold deposit.

Russell Penney, UXA Resources managing director, said, "This drill hole is a very encouraging start to the current exploration program being undertaken by the Stuart Shelf Joint Venture Partners.

"The Stuart Shelf is located in one of the most highly prospective regions for world class copper gold deposits in the world today, and so we are excited to see drilling continuing on the project."

The drill core will soon be cut and sampled, with assays expected in four to six weeks, along with results from Straits' first diamond drill hole in the Winjabbie tenement, where earlier drilling intersected 42 metres at 0.35% copper.

Drilling has now begun at the Oak Dam tenement to test the third geophysical target.

Stuart Shelf comprises nine tenements covering 3,300 square kilometres, located in the same iron oxide-copper-gold prospective area as Olympic Dam, which produces copper, gold, silver and uranium, and the Prominent Hill copper gold mine.

An expansion is underway at Olympic Dam to increase copper production to more than 750,000 tonnes per annum, from 180,000 tonnes per annum, while Prominent Hill production in 2012 is expected to be 100,000-110,000 tonnes of copper and 130,000-150,000 ounces of gold.

The Stuart Shelf project licences are subject to a joint venture agreement with Straits, which has the right to earn a 70% interest in the tenements by spending A$10 million on exploration over seven years.

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