Savage Qld Survey Creates Optimism

Sydney Morning Herald

Monday April 6, 1992

By BRUCE HEXTALL Resources Writer

Savage Resources Ltd has becoming increasingly upbeat about its gold/copper prospects in Queensland's Cloncurry district as a result of a just completed geophysical exploration survey.

The company's managing director, Mr Jim Wall, said the survey had provided strong evidence that the finds reported by Western Mining Corp in December could be repeated in the adjoining leases.

The WMC finds resulted from an initial four-hole drilling program on the Ernest Henry prospect.

This indicated a resource of 10 million to 20 million tonnes of gold and copper that should give rise to the development of a medium-sized mine.

Savage originally held control of 11 leases in the Cloncurry district. It handed over control of six of the leases to WMC, including the discovery lease, in return for a 1.25 per cent revenue royalty on any production.

Since then it has carried out a geophysical survey of the remaining five leases.

Mr Wall said similar types of geophysical responses had been encountered in at least three of these leases, suggesting that the area was highly prospective.

The survey identified a number of targets which Mr Wall said Savage planned to pursue through a follow-up drilling program.

The Cloncurry leases, if proven productive, will represent some additional cream for Savage which earns its bread and butter from its 56.7 per cent Liddell coal joint venture in the Hunter Valley.

© 1992 Sydney Morning Herald

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