ORION METALS LTD - ASX: ORM

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Description

Orion Metals focus going forward will be to capitalise and explore on existing tenements including drilling on Top Camp as well as identifiying Rare Earth opportunities.

* Experienced Board and Management with extensive geological and managerial experience.
* Joint Venture on Malcolm Creek with Newmont has produced early encouraging results.
* Properties are all in prospective districts, based on local or regional discoveries.
* Work carried out to date has identified drill targets on the Top Camp leases.
* All properties are believed to include large-scale potential targets.
* Several exploration permits have been applied for or acquired for their potential to host rare earth mineralisation.

TOP CAMP (CLONCURRY) - GOLD

This is the site of the original Cloncurry alluvial gold field - the source of the gold remaining undiscovered. Potential exists for gold - copper mineralisation of the Selwyn-style hosted in structurally controlled ironstones. On ORM’s mining leases geochemical and geophysical anomalies have been defined that warrant a significant drilling programme.

RUTHERFORDS TABLE (UKALUNDA)- GOLD

Epithermal quartz – gold – sulphide fragments together with substantial free gold occur in a 5m thick basal tuffaceous sandstone/grit unit, which has a lateral extent of 1.5km2. Previous underground working, recent sampling and limited drilling indicate the potential for a 1M oz resource within this basal unit as well as an epithermal gold- sulphide breccia buried beneath this unit. Since the gold is in a free-state no cyanide treatment is required, only separation by conventional gravity methods. Trial mining of a bulk section of the basal grit is planned initially to establish grade.

MALCOLM CREEK (GEORGETOWN) - GOLD

This is a new discovery of gold in a shallow-dipping sheet of hydrothermal quartz mylonite. The occurrence of coarse gold was recently discovered by a prospector using a metal detector. Previous exploration in the area by CRA defined a gold-in-soil geochemical anomaly sourced from the rocks immediately overlying the discovery outcrop. Their drilling was shallow and failed to penetrate to the thrust horizon but achieved several intersections of maximum 2m at 9g/t in overlying rocks. The fault sheet outcrops over tens of kilometres and has never been tested for gold.

On 8 April 2009 a joint venture agreement was signed between ORM and Newmont Exploration Pty Ltd where Newmont can earn a 70% interest by spending $2 million over 4 years. Initial fieldwork has concentrated on the Bald Mountain rhyolite complex where a Kidston-style geological setting contains zones of alteration and breccias hosting disseminated gold. Field activities during 2009 have been encouraging to date and are hoped to result in drilling of favourable targets in 2010.

FULFORD & BONNER'S CREEKS (MT SURPRISE)- RARE EARTHS

Applications have been made for 2 Exploration Permits and an option signed on 2 other EPM's and 1 Mining Lease Application north of Mt Surprise and north-east of Georgetown in far north Queensland. These tenements cover creek systems draining radiogenic granites where past alluvial tin operations have encountered heavy mineral concentrations that contain monazite and possibly xenotime. It is planned to sample these drainages and have mineral assemblages identified and analysed for their contained rare earth elements.

LESTREE HILL (CLERMONT) - RARE EARTHS

An exploration permit has been applied for on a series of magnetic intrusive plugs aligned on a major linear structure that have been interpreted as possible hosts for rare earth mineralisation. The Permit is 90kms west of Clermont and covers large areas of poor outcrop. Initially soil sampling of surface expressions of these features is planned to categorise the composition of the pipes and their associated mineralogy.

Mine For

gold, rare earths

Location of operation(s)

Queensland

Address

71 Lytton Road
EAST BRISBANE, QLD, Australia

Phone

+617 3249 3060

Email

Website

http://www.orionmetals.com.au/

Last Updated

1/05/2010