Terramin to Drill Old Mines to Boost Production

15 September 2009 (Last Updated September 15th, 2009 18:30)

South Australian miner Terramin Australia said it will drill several old mines and increase the output of gold and base metals from the region near its Angas mine. Terramin executive chairman Dr Kevin Moriarty said that the area was grossly underexplored, despite being Australia's first

South Australian miner Terramin Australia said it will drill several old mines and increase the output of gold and base metals from the region near its Angas mine.

Terramin executive chairman Dr Kevin Moriarty said that the area was grossly underexplored, despite being Australia's first mining belt and it was time to look for new satellite mines.

"The Angas Mine shows the outstanding potential in a region that has been neglected for a century," Moriarty said.

"Bob Singer, our chief geologist, said that the old mines he has looked at in the Fleurieu–Kanmantoo belt would have been drilled intensively if they were in Western Australia," he adds.

But these old mines have not been drill tested despite high grades and the cessation of previous mining activities at shallow depths, the company said.

The firm has conducted surface exploration, which has established that several targets require drill testing.

The mines that require drill testing include Lady Jane Mine that had no earlier drilling and which has a strong soil anomaly more than 500m long with 200ppb Au peak gold, and Frahn's Mine, an extension to the Lady Jane system, which has peak values of 0.5% bismuth, 3.0g/t gold and 3.2% copper.

In addition, the Preamimma Mine has average ore grades of 9% copper derived from five shafts with a maximum depth of 100m according to records from 1854 to 1907 period. In the 1920s, underground sampling showed gold values to 9g/t.

Moriarty said these are just some of the prospects in a 30km radius of the Angas facility.

Terramin is also working towards development of lead-zinc drilling targets in the Monarto and Warla districts.