High-grade copper for Cobre

COBRE has reported hits of up to 8% copper from the Perrinvale volcanic-hosted massive sulphide project in Western Australia.
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Drilling at Perrinvale in WA

Drilling from the third campaign of drilling at the Schwabe prospect returned a standout hit of 12m at 2.9% copper, 1% zinc, 0.05% cobalt, 192 parts per million lead, 0.7 grams per tonne gold and 10.2gpt silver from 45m, including 4m at 8.3% copper, 2.9% zinc, 0.12% cobalt, 555ppm lead, 2gpt gold and 29.8gpt silver.

Other results included 3.5m at 3.4% copper, 0.8% zinc, 0.1% cobalt, 368ppm lead, 1.1gpt gold, 16.5gpt silver from 48m; 5.4m at 2.8% copper, 1.3% zinc, 0.05% cobalt, 131ppm lead, 1.1gpt gold and 12.1gpt silver from 67m; and 7m at 2% copper, 0.8% zinc, 0.04% cobalt, 80ppm lead, 0.4gpt gold and 4.9gpt silver from 27m.

The results confirm the mineralised horizon at Schwabe extends 500m along strike.

Visual observations indicate that mineralisation continues for about 270m below surface, based on a diamond hole for which assays are pending.

Downhole electromagnetic surveys now underway, with follow-up diamond drilling to begin next week, including a second deep hole at Schwabe.

Last year's discovery hole at Schwabe returned 5m at 9.8% copper, 3.2gpt gold, 34gpt silver and 3.1% zinc from 50m, including 3m at 12.6% copper, 4.7gpt gold, 43.7gpt silver and 3.6% zinc.

The company also lower grade mineralisation in the first drilling at the Costa del Islas, Piega del West and Ponchiera prospects, as well as confirmed the continuity of the mineralised horizon along trend at the Zinco Lago, Zinco Rame and Lago Rame deposits.

Cobre expects all assays from the program in the next fortnight.

Cobre executive chairman and managing director Martin Holland the continued high-grade VHMS results at Schwabe were encouraging to see.

"In addition, we are pleased to have identified other VHMS potential in the area, which validates our strategy to unlock the full potential of the 381sq.km Perrinvale project," he said.

Cobre listed on the ASX in February after a A$10 million initial public offering at 20c per share, and had $7.1 million at the end of June.

AIM-listed Metal Tiger is the company's largest shareholder with 20%, followed by Holland with just over 10%.

Northern Star Resources executive chairman Bill Beament is on the register as a minor shareholder.

Shares in Cobre initially jumped to as high as A22.5c this morning, but last traded 7.7% lower at 18c.