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Burtville Drilling Results 310712

STRONG DRILL RESULTS HIGHLIGHT DEPTH AND PIT EXTENSION POTENTIAL AT BURTVILLE, LAVERTON

Focus Minerals Ltd. (ASX: FML), a leading Australian gold producer and explorer, said high-grade results from a major drilling programme at the Burtville mining centre in Laverton (Figure 1) have confirmed depth extensions to the existing pit floor and expansion beyond the current pit shape.

Burtville was a large, low strip open pit operation that was mined in the 1990s by Sons of Gwalia producing 64,000oz @ 1.4g/t.  Numerous historic shafts in the area indicate a substantial gold system across a 2km x 1km footprint (Figure 2).

The Mineral Resource definition drilling programme of 142 RC holes focused on a detailed drill-out of the western section of the existing Burtville pit (Figure 3) to a vertical depth of 110m. The goal of the drilling was to test up to 70m below the base of the current pit to assess the potential for Burtville’s inclusion in Focus’ near-term production schedule.  This has delivered the following results (Table 1):

Focus Minerals CEO Campbell Baird said mineralisation at Burtville remained open in all directions and outside of the immediate existing pit area.

“it appears that the first stage of drilling has just touched on the potential of this system,” said Mr Baird.  “Burtville is a high-priority target for us as there are multiple factors pointing to the existence of a very big system.

“So far we’ve just focused on the western third of the existing Burtville pit where our modelling is indicating there’s the potential for a very low strip ratio pit expansion.

“This, in combination with what we believe to be a very large mineralised system points to the opportunity to develop a long-term, low unit cost mining centre at Burtville,” Mr Baird said.

Since acquiring the Laverton operations last year, Burtville has been one of a series of priority development targets for Focus.  The Burtville deposit is hosted in granodiorite. To the northeast the granodiorite is in contact with a sequence of bedded siltstone and felsic tuff. Narrow (1-3m) fine grained mafic and felsic dykes cut the granodiorite and adjacent rocks.

Numerous gold bearing quartz veins (1mm – 30cm thick) cut through the rock types at Burtville, with the best vein development occurring within the granodiorite. The larger veins contain disseminated pyrite. The largest concentration of veins appears to be in the western half of the pit, where this drilling programme was targeted. Gold mineralisation appears to be confined mainly to the quartz veins.

Mineralisation at Burtville is open in all directions. Very little drilling had been historically undertaken, outside of the immediate pit vicinity. There is a 2km x 1km area around Burtville (Figure 2) containing numerous prospector workings, where they have mined some of the quartz veins within the weathered granodiorite.

All Holes at Burtville

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NEW RESULTS HIGHLIGHT POTENTIAL OF NEAR-PLANT TARGETS IN COOLGARDIE

Focus Minerals Ltd. (ASX: FML) , a leading Australian gold producer and explorer, is pleased to announce some exciting results from its latest round of exploration drilling in Coolgardie, Western Australia, testing the potential of a number of gold targets that are close to its Three Mile Hill processing plant.

Focus is on track to produce 175,000oz of gold from its mining operations in Laverton and Coolgardie in FY 2012. In Coolgardie, Focus is currently in production from two underground mines and one open pit operation, processing ore through its 100% owned 1.2Mtpa Three Mile Hill gold plant.  It is due to commence production from another open pit operation – Greenfields — through the September Quarter.

This latest drilling program has focused on a series of targets that run along a key historic production corridor in Focus’ Greater Coolgardie northern tenements (Figure 1) where a dolerite rock package hosts a number of different deposits including the historic mines of Three Mile Hill, Greenfields, Mystery Mint and Patricia Jean (total historic production of 458,000oz).

Following the drilling program, Focus has now outlined a new 48,000oz Mineral Resource at CNX and confirmed a highly prospective  target to the south of the Patricia Jean pit. All of the targeted deposits are less than 10km trucking distance from Focus’ processing plant.

The goal of the exploration program has been to test and develop identified targets close to the existing Three Mile Hill plant for inclusion into Focus’ mid-term production schedule.

“We have a significant portfolio of assets at varying stages of development across 450sq km in the Coolgardie region which enable us to deliver a stable and reliable ore feed to our Three Mile Hill plant that is sustainable over a very long period of time,” said Focus Minerals Chief Executive Campbell Baird.

“This latest drill program has been all about identifying projects that will sit in our mid-term life of mine plan with a specific emphasis on securing deposits that are within a close trucking distance to our Three Mile Hill plant.”

Consistent with this near-plant development strategy, Focus will move the historic Greenfields pit (1.0Mt @ 1.7g/t) back into production in the September quarter following a 12 month program of exploration and economic review. Furthermore, significant deposits at Lindsays, Brilliant, and Patricia Jean are the subject of ongoing exploration and assessment.

The latest drilling program saw a combination of diamond and RC holes focused around three key targets along the Three Mile Hill dolerite sill.  This has delivered the following results:

CNX: New 48,000oz Mineral Resource

A new 48,000oz Mineral Resource (930,000t @ 1.6g/t) has been established at CNX (Table 1 & Figures 2 & 3).  CNX sits just 1.5km to the north-west of Focus’ Three Mile Hill plant.

Drilling was undertaken to validate historic data from the early 90’s and the latest diamond drill results have confirmed the sub-horizontal dip of the quartz veins, including a hole of 6m @ 6.2g/t from 106m (Table 1 & Figure 2 & 3).  CNX was last mined in 1991 and produced 196,000 tonnes at 1.9g/t.  The project is undergoing evaluation for its potential inclusion into the future mining schedule.

High-Grade Results Between Patricia Jean & Jolly Britons

RC drilling over a 500m strike between the Jolly Britons prospect and Patricia Jean pit (Table 2 & Figures 2, 4 & 5) has delivered a series of high-grade intercepts near a hinge zone of the Three Mile Hill Dolerite sill.

These results are important as they are interpreted to be associated with a significant mineralised fault structure extending from two major pits along a 6km strike to the south (Brilliant and Lindsays – total production 374,000oz) (Figure 6).  The geological complexities created by a known gold producing regional structural fault intersecting with a hinge zone in the dolerite rock are advantageous for gold discovery elevating this area in Focus’ regional exploration plans. Open pit mining at Patricia Jean in 1990’s produced 175,000 tonnes at 2.8g/t, while historical mining at Jolly Britons is limited to shallow old timer workings.

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COOLGARDIE DRILLING PROGRAM IDENTIFIES NEAR SURFACE TARGET BETWEEN HISTORIC MINES 

–       Drilling between historic Lindsays and Bayleys mines delivers high-grade intercepts

Focus Minerals Ltd. (ASX: FML), a leading Australian gold producer and explorer, is pleased to announce encouraging exploration results from the latest round of drilling at its Coolgardie operations.

A shallow RC drilling program focused on an identified trend (Figure 1) which runs parallel to and southwest of the main Prices panel (part of the historical Bayleys underground workings) and immediately east of the historical Lindsays mine.

The drilling has delivered a series of high-grade results (Table 1 and Figure 2) over a 600m strike confirming there is more mineralisation to be found within the Lindsays – Bayleys area, with the mineralisation remaining open along strike and at depth.  Results include:

• 6.0m @ 3.8g/t including 1.0m @ 12.6g/t (from 13m)
• 8.0m @ 10.2g/t including 2.0m @ 30.5g/t (from 24m); and
  • 21m @ 1.3g/t including 3.0m @ 2.2g/t and 1.0m @ 12.4g/t (from 28m)

The Bayleys mine is the site where gold was first discovered in Coolgardie in 1892 by Arthur Bayley and William Ford.  Historical mining underground at Bayleys produced 558,000t @ 16.1g/t for approximately 289,000oz of gold. In the 1990’s further mining underground at Bayleys, in conjunction with Kings Cross (immediately south of Bayleys) produced 444,000t @ 6.3g/t.

“Numerous studies over the years have pointed to the potential of the Lindsays – Bayleys area, with such strong intersections only 200m from the original discovery of gold in Coolgardie in 1892, it yet again demonstrates the fantastic endowment in the area and how much potential remains to be unlocked within the Coolgardie area,” said Focus Minerals Chief Executive Campbell Baird.

The drilling program (all holes drilled to a total depth of only 54m) followed a recent re-assessment of historical drilling in the Lindsays – Bayleys area which identified a number of anomalous results in some RAB and RC drilling that had been targeting an area parallel to the Prices panel.  This indicated a possible parallel structure immediately southwest of the old underground workings.

The mineralisation that has been intersected is associated with the sheared basalt – ultramafic contact, and intermediate and felsic dykes.  Quartz veins and sulphides are common within the logged alteration zones, especially within the intermediate and felsic dykes.  This is the style of mineralisation as mined at the Bayleys mine.

The Lindsays – Bayleys area (a 2km x 2km zone on the eastern edge of the township of Coolgardie, and 2km from the Three Mile Hill processing plant) contains over 450,000 ounces of Mineral Resources and has been an area of technical focus for the company over the past two years.

A number of target holes have already been planned for future follow-up.

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FOCUS MARCH QUARTER DELIVERS ON GROWTH STRATEGY; PRODUCTION UP 28% ON DECEMBER QUARTER

• Laverton operations transformed in just six months since takeover delivering 25,636oz of gold at a cash operating cost of $1,216/oz for the Quarter
• Focus Group delivered 47,489oz for the Quarter, up 28% on Dec 2011 Quarter
• Group on track to deliver 175,000oz of Gold in FY12
• Expansion planned for Open Pit operations in Coolgardie

Focus Minerals Ltd. (ASX: FML), a leading Australian gold producer and explorer, said today the March Quarter results show the takeover of Crescent Gold last year has transformed the business, more than doubling Group gold production and delivering on an improvement in operational efficiencies.

Focus acquired Crescent’s Laverton operations, located in the eastern goldfields region of Western Australia, on 6 October 2011 for $59 million in scrip and $11 million in loans to Crescent to recapitalise its operations and deliver on a strategic plan to build new operating areas. The Crescent acquisition doubled Group resources to 4.3 million ounces and trebled reserves to 623,000oz.

In the March Quarter 2012, the Focus Group delivered 25,636oz of gold from Laverton at a cash operating cost of $1,216/oz, a 24% reduction since the September 2011 Quarter during which Focus took control. “When we acquired the Crescent operations, we believed that Laverton could be turned into a profitable and consistent producer,” said Focus Minerals CEO Campbell Baird. “We have delivered on that in just six months.

“The addition of Laverton gives the Focus Group critical mass in terms of production with solid cash margins that enable us to generate solid cash flow, enabling us to pursue exploration and development opportunities with over 4.3Moz of resources spread across more than 1,600 sq km of tenements across our two operating hubs.

“The successful turnaround at Laverton is a great testament to the operational management and personnel on site, and we are now set up well to sustain these production levels moving forward.”

At a Group level, Focus has produced 47,489oz[1] of gold in the March Quarter and is on track to produce 175,000oz of gold this financial year.

During the March Quarter, the new Tindals Open Pit operations continued to perform strongly, with production 23% over budget for the Quarter, helping Focus to offset a 5,000oz shortfall to budget from its Tindals Underground.

“We experienced some geotechnical issues at the Countess ore body in the Tindals underground which led to a shortfall to budgeted production,” said Mr Baird.  “Positively we were able to offset this shortfall with strong production from the open pits, but in combination this saw a 12% reduction in mined grade for the Quarter impacting cash operating costs at Coolgardie for the period which were $1,274/oz.”

Mr Baird said the consistent growth of the Tindals Open Pit operations had driven the decision to expand open pit production in Coolgardie with the commencement of mining from the Greenfields pit, adjacent to its Three Mile Hill processing plant planned for the September Quarter.  Greenfields has an Ore Reserve of 1.1Mt @ 1.7g/t and the ability to deliver a significant lift in the production profile of the open pit operations.

“Greenfields is one of a number of robust projects we have in the Coolgardie field looking to compete for space in the mill,” said Mr Baird.

[1] Based on 100% of Laverton production. Focus owns 81.57% of Crescent Gold Limited and Focus’ interest in Laverton production is therefore pro-rated accordingly.

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The Board of Crescent Gold Limited (“Crescent” or “the Company”) wishes to update shareholders on its plan to delist from the Australian Securities Exchange (“ASX”).

Subsequent to the notification of Crescent’s intention to delist from the ASX (see ASX announcement dated 12 January 2012), Crescent applied to the ASX on 13 February 2012 requesting removal from the official list of ASX under listing rule 17.11.

Crescent has today received written approval from the ASX to be removed from the official list (under ASX listing rule 17.11).

The proposed timetable for de-listing is as follows:

In the coming days Crescent will send a letter to all remaining shareholders on the Company’s register, informing them of Crescent’s intention to seek removal from the official list of ASX and the proposed Suspension Date and Delisting Date.

The Crescent Board considers that de-listing is appropriate for the following reasons:

1. Lack of Liquidity: The Company currently has two members collectively holding 1,187,258,425 shares (95.94%) and the remaining members holding 50,225,828 shares (4.06%). As a result of this low free float, there has been a significant lack of liquidity in trading in the Company’s shares on ASX.
2. Disproportionate Impact on Price: As only small numbers of the Company’s shares are being traded, this has on occasion had a disproportionate impact on the share price and has created considerable volatility.
3. Listing and Related Costs: Maintaining a stock exchange listing adds significant direct costs to the Company’s business. In addition, there are indirect costs associated with the need to devote management time attending to matters relating to the listing which could be directed elsewhere.

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Focus Minerals Ltd. (ASX: FML), a leading Australian gold producer and explorer, is pleased to announce the appointment of Paul Fromson as the Company’s new Chief Financial Officer and Company Secretary following the resignation of current CFO Jon Grygorcewicz.

Mr Fromson has more than 30 years industry experience, including 18 years with ASX listed resource companies. His most recent role was CFO and Company Secretary for Bauxite Resources Limited where he played a key role in two large joint ventures with Chinese partners.

“Paul brings a very strong skillset to the Focus Minerals team at an important time in our growth,” said Focus Minerals Chief Executive Officer Campbell Baird.

“In addition to his direct mining industry experience, Paul has also accumulated a wide range of finance, accounting, taxation and commercial experience which he will bring to bear as we consolidate the Laverton and Coolgardie operations,” said Mr Baird.

Mr Fromson has worked for a number of resource companies and was first involved in the gold industry in 1987 through Kobe Alumina, one of the then part owners of the Boddington Gold Mine. Since this time he has held senior finance positions in exploration and mining companies. He has also been a director of the Makit Hardware Cooperative and ran his own successful tax practice for six years. Mr Fromson is a member of the Australian Institute of Company Directors, a Certified Practising Accountant and a Chartered Company Secretary.

Following its takeover of the Laverton Gold Operations last year, Focus has also recently bolstered its group accounting team with the appointment of Krishna Kulshreshtha as Group Financial Controller. Prior to joining Focus, Mr Kulshreshtha was the Financial Controller & Joint Company Secretary for Rey Resources Ltd and previously Finance Manager-Group Reporting, Tax & Treasury at Anvil Mining Ltd.

Mr Baird said he would like to thank Mr Grygorcewicz for all his hard work in being a part of Focus Minerals’ growth over the past six years. “We wish him well with his future ventures,” he said.