core sector communique

Mineable ounces to expand with drilling underway

WA gold explorer Carrick Gold Limited (ASX:CRK) is pleased to advise that it has this week commenced its next stage of drilling as part of the ongoing exploration programme at its expanding gold projects near Kalgoorlie.

Carrick now has three drill rigs in operation as part of a 12,000 metre drill programme on its gold portfolio.

The campaign includes resource expansion drilling at the Kurnalpi and Kalpini projects where mineralisation remains open along strike, as well as preliminary exploration on recently acquired and highly prospective tenements at Kalgoorlie West.

Carrick has developed a gold resource of more than 4.1 million ounces (Table 1), located within 90km of  Kalgoorlie. In September, the Company commenced a Pre-Feasibility Study (PFS), conducted by Golder Associates, for an open- pit mining operation at its Lindsay’s, Brilliant, and Kalpini gold projects. Carrick’s aim is to become an Australian mid-tier gold producer of around 100,000+ ounces per annum.

Carrick Chairman Frank Carr said the Company was committed to an ongoing exploration programme while the feasibility studies were underway to expand mineable ounces.

“The mineralisation at these projects remained open along strike and at depth, and we have a fully-funded drill programme in place to aim to extend our resource base,” he said.

“We are also excited by commencement of our first drill programme at Kalgoorlie West, which is underexplored, and lies in the heart of a renowned gold producing region,” Mr Carr said.

Kurnalpi – Brilliant Project

Carrick has a 2,500 metre RC programme and a 1,000 metre diamond drilling programme underway at the high grade Brilliant prospect, within the Kurnalpi prospect. Diamond drilling has commenced, with the RC programme to be completed in mid-December. The programme is aimed at increasing the mineable ounces at the Brilliant prospect, which is currently part of the PFS.

Results from recent RC drilling at the Brilliant prospect supported further increases in the resource inventory, with a 100 metre extension of the strike distance at the Eastern Structure. The drilling has also identified potential high tonnage supergene mineralisation associated with the Western Structure.

Kalpini

Carrick has a 15 hole RC programme underway at Kalpini, to test the lateral extents of the Gambia structure. The Kalpini Project, which lies between Lindsay’s and Kurnalpi, has potential to be developed as a satellite deposit,  contributing mill feed to either Lindsay’s or Kurnalpi. Carrick has identified a JORC resource (inferred and indicated) of 240,000oz at an average grade of 2.8g/t (Table 1), and the project is part of the PFS currently being undertaken by Golder Associates.

 Kalgoorlie West

This week, Carrick commenced a 7,000 metre core drilling programme at the Kalgoorlie West project, which it acquired in April this year. The project covers under-explored areas within established gold producing districts. While there has been limited systematic exploration, numerous advanced target areas have been outlined at Kalgoorlie West, including drill-ready targets generated from historical exploration data.

Two high priority targets have been identified: the Zuleika Shear Project and the Ora Banda South Project, which will be the target of the initial exploration effort. The drill programme will be undertaken in two stages, the first to be completed mid-December, and the second in the first quarter of 2010.