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Coppermoly Begins Copper Drilling In Highly Prospective Esk Trough

Coppermoly (ASX: COY) has begun drilling at its farm-in venture at Esk Trough in Queensland where historical drilling has returned high grades of above 2% copper.

The 1,675 metre, 14-hole reverse circulation drilling program follows the successful completion of three dimensional induced polarisation (3DIP) ground geophysical surveys that identified zones of copper mineralisation as well as possible extensions.

Drilling will test for extensions to the near surface copper and gold at the Kakapo and White Horse prospects.

Historical drilling at the Kakapo prospect delivered best intersections of 88 metres at 0.47% copper and 0.49 grams per tonne (g/t) gold from 38 metres and 1.8 metres at 2.12% copper and 0.72g/t gold from 40 metres.

Higher grades again were returned from the White Horse prospect, located 2 kilometres east of Kakapo, with one intersection of 2 metres at 2.42% copper from 30 metres.

Other notable historic intersections at White Horse include 10 metres at 1.87% copper and 0.14g/t gold, from within the broader 38 metres at 0.74% copper and 0.13g/t gold from 20 metres, and 8 metres at 1.2% copper and 0.08g/t gold, from within 44 metres at 0.43% copper and 0.11g/t gold from 22 metres.

Drilling at White Horse will test the upper 75 metre extents and continuity of copper mineralisation from nearby historical drill holes.

The drilling program is scheduled for completion by June with results to be reviewed in July.

Esk Trough farm-in

In October last year Coppermoly signed an agreement with ActivEX (ASX: AIV) to earn up to 70% on the Esk Trough copper-gold projects by spending A$6 million in exploration over the next six years.

An initial $500,000 will be spent on geophysics and drilling during 2012 to determine whether or not the company will decide to proceed with an initial earn-in interest of 51% in the projects.

Coppermoly expects to make a decision on whether to proceed with the joint venture in September this year.

About Esk Trough

The Esk Trough Project has advanced exploration prospects which can be immediately drill tested.

ActivEX's work in the past has intersected some wide zones of copper-gold mineralisation including 290 metres at 0.13% copper.

Importantly, the Queensland project has significant drill hole intersections, is accessible by roads and track and is close to existing infrastructure.

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