ANGLO AUSTRALIAN RESOURCES NL
MEDIA RELEASE
MONDAY 6 FEBRUARY 2006
RECORD BASE METAL PRICES BRING
KOONGIE PARK INTO PLAY
Anglo Australian Resources NL today announced that it has started investigating options
to maximise the value for early development of the Company’s multi-metal Koongie Park
project in the Kimberley region of Western Australia.
The Company believes that the record base metal prices now being experienced have
brought the project back into play and says it is one of the better currently undeveloped
base metal projects in Australia.
Anglo Australian Resources has held the project since 1989 and exploration has defined
two zinc/copper resources at the Sandiego and Onedine deposits. Anglo now has 100%
control of the project.
Its former joint venture partner, Lachlan Resources NL, carried out extensive resource
definition type drilling and structural interpretations for both deposits. Lachlan estimated
mineralisation at Sandiego as 1.3 million tonnes at 0.6 % copper, 1.3% lead, 9.1% zinc
and 72 g/t silver and 0.34g/t gold in the zinc zone and 0.92m/t at 2.9% copper in the
copper zone.
At Onedin, Lachlan estimated potentially open pittable mineralisation as 1.14m/t copper
at 0.7%, 1.2% lead, 7.0% zinc and 40 g/t silver in the zinc zone and 2.22m/t at 1.2%
copper, 1.7% lead, 2.7% zinc and 38g/t silver in the copper zone.
Anglo Australian said that in 2003 a detailed and independent evaluation of the
economics of underground mining at both deposits found them as only marginal.
Copper and zinc prices have nearly trebled since 2003 and at existing levels it is
potentially one of the better current undeveloped base metal projects in Australia.
Anglo said that a Feasibility Study, initially involving further drilling and metallurgical
testwork, is required as the next step in pursuing development of one or more of the
Koongie Park deposits.
Anglo should generate its first cash flow in the current year from the Mandilla gold
project near Kambalda in Western Australia. The Company is preparing the project,
which has a probable ore reserve of 70,100 tonnes at 7.52g/t gold for 16,960 ounces of
gold, for development and says that the current record gold prices will ensure excellent
profitability.
For further enquiries: Mr John Jones, Chairman, Telephone 08 9481 12
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