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Syndicated Metals shares rise on Dronfield survey results

Syndicated Metals (ASX: SMD) has reported the results of an initial soil geochemical survey completed at its Dronfield joint venture tenement.

The project is located immediately to the south of the company’s 49% owned Kalman South Joint Venture which holds a substantial portion of the Kalman molybdenum-rhenium-copper-gold deposit in the Mount Isa mining province of Northwest Queensland.

The Dronfield tenement (EPM14369) covers a strike length of 9 kilometres of the highly prospective and largely under-explored Pilgrim Fault Zone and complements Syndicated’s strategic 100% owned and joint ventured tenement package in the Mount Isa region.

Commenting on the results Syndicated’s Managing Director, Russell Davis, said "while it is early days, the results of this initial survey are highly encouraging and support Syndicated’s contention that the Pilgrim Fault Zone is under-explored and remains highly prospective for further significant discoveries.”

Syndicated can earn a 70% interest in EPM14369 from Universal Resources NL by spending $1 million.

The program was carried out on lines spaced 200 metres apart with 40-metre spaced samples for a total of 900 samples collected.

Results identified a number of discrete copper anomalous zones, with peaks ranging from 300ppm to 855ppm copper. One of the copper anomalies is coincident with a TEM (ground EM) conductor located by WMC in the 1980’s. Lead and zinc anomalism is partially coincident with this anomaly.

Elevated gold in the range of 10ppb to 40ppb Au occurs within the copper trends with spot highs of up to 97ppb and 133ppb Au.

The sampling also located a previously unknown area of anomalous uranium, approximately one kilometre in length, with a central high of 20ppm to 30ppm U. This trend is also associated with gold, (ranging from 5ppb to 20ppb, with a spot high of 47ppb) and a weak copper trend.

The uranium values in the soils compare favourably with values from the known Green Creek South and Marriage uranium prospects located to the southeast within EPM14369.

Two areas of approximately 500m strike length show coincident anomalism in lead and zinc. The southern anomaly with up to 38ppm Pb and 39ppm Zn is located within the TEM anomaly and is partially coincident with the copper trend.

The northern area has a stronger lead signature, ranging from 27ppm to 90ppm Pb with a spot high of 112ppm Zn.

Molybdenum results indicated some elevated trends but no discrete highs.

The company said follow-up rock chip and soil sampling will commence shortly to define drilling targets.

Syndicated Metals shares rose 17% to 17 cents in trading today.

Disclosure: The author holds no positions in the company