21/10/2009 - 11:48

Breakaway steady after drilling news

21/10/2009 - 11:48

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Shares in Breakaway Resources have not been affected in trading today after announcing it will recommence drilling at it's Scotia Nickel mine project, located 70 kilometres northwest of Kalgoorlie, by early November.

Shares in Breakaway Resources have not been affected in trading today after announcing it will recommence drilling at it's Scotia Nickel mine project, located 70 kilometres northwest of Kalgoorlie, by early November.

A 2,000 metre diamond drilling programme will be carried out to further test its high priority Western Contact prospect, which forms part of the its Saints Nickel Target, Breakaway's wholly-owned Scotia Project.

The Western Contact was discovered by Breakaway in 2007 following up anomalous aircore geochemistry.

At AEST1342 shares in Breakway were unchanged, trading at 9.7 cents per share.

 

Full announcement below:

 

BREAKAWAY TO RECOMMENCE NICKEL DRILLING AT SCOTIA PROJECT
KEY POINTS
- 2,000 metres diamond drill programme planned to test down plunge extensions to
Western Contact mineralisation at Saints Nickel Target
- Drilling to commence by early November 2009

Breakaway Resources Limited (ASX: BRW) is pleased to announce that a 2,000 metre Diamond drilling programme will be carried out to further test its high priority Western Contact prospect, which forms part of the Company's Saints Nickel Target (100% owned Scotia Project) located 70 kilometres northwest of Kalgoorlie.

Located 15 kilometres north of the Scotia Nickel Mine (historic production ~14,700t nickel metal),
nickel sulphide mineralisation at the Saints is present as a series of sub-parallel planar zones developed along a strongly sheared eastern and western ultramafic/basalt contact (Figure 2 and 3) termed the Eastern and Western Contact respectively.

On the Eastern Contact, previous exploration has located two mineralised zones located
400 metres apart - St Andrews and St Patricks (A Mineral Resource of 135,600t @ 3.70%Ni
for 5,000t Ni metal and categorised as an Inferred Resource was reported for St Patricks
in accordance to the JORC Code guidelines in 2006).

The Western Contact was discovered by Breakaway in 2007 following up anomalous aircore geochemistry. Subsequent drilling over 600 metres strike extent located +1% nickel sulphides in a large number of holes with grades up to 6.29% Ni. A north plunging zone of higher grade matrix sulphides was defined at the southern end of the Western Contact (Figure 4). The zone has been drilled on nominal 50 metre centres over approximately 150 metres strike length to a
vertical depth of 180 metres and remains open in all directions. Significantly the zone displays "pinching and swelling" of mineralisation


The drill programme will test the Western Contact's north plunging zone for a further 50 metres along strike, 150 metres down plunge to a vertical depth of 280 metres and enable the reinterpretation of several previously obtained DHTEM conductors that are present within the mineralised zone. The Western Contact represents an exceptional opportunity for the Company to rapidly delineate additional nickel sulphides down plunge from the known mineralisation.

Breakaway views this programme as a key development in realising its primary corporate objective of discovering a stand alone nickel sulphide deposit of no less than 30Kt nickel metal
@ 3% Ni (in Reserve) and looks forward to carrying out additional drilling based on success in the initial programme.

Drilling is scheduled to commence by early November 2009.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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