PACRIM ENERGY LIMITED - ASX: PRE

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Description

GOLD PROJECTS

Redcliffe Project (WA)

The Project covers approximately 65 kilometres of strike length of the Mertondale Shear Zone along with parallel and associated structures. An estimated 400,000 ounces of gold has been produced from the Mertondale Shear Zone from historic mines and pits that operated in the 1980s and 1990s.

These include the shallow Nambi and Redcliffe pits that produced in excess of 90,000 ounces from within the Pacrim project area.

The Company’s Redcliffe Gold Project exploration led to the initial resource estimate of 151,000 ounces of gold, (consisting of an Indicated Resource of 385,000 tonnes @ 3.42g/t gold and an Inferred Resource of 1,678,000 tonnes @ 2.0g/t), with the Board confident of increasing the figure through further exploration.

Building on a very active exploration phase in 2008 Pacrim Energy Limited has recommenced field exploration since years-end.

Pacrim’s focus continues to seek further gold discoveries and to add to gold resources at the Redcliffe Gold Project. This will include the upgrading of the Golden Terrace South gold resource, further RC drilling, and advancement of planning for development of the most readily accessible and potentially economic gold mineralisation.

Angelo Gold Project

The Angelo gold project is located in the East Kimberley region of Western Australia, approximately 40 kilometres southwest of halls Creek. Reverse circulation drilling undertaken by Metminco at the Leonardo prospect in mid 2008 returned results including 3 metres @ 1.7g/t and 2 metres @ 4.31g/t gold with an adjacent stockwork zone intercept of 17 metres @ 0.24g/t gold. Along with earlier RAB drilling, these results are considered to confirm the presence of a promising mineralised system within a substantial area of elevated gold in soil over six kilometres long and up to a kilometre wide.

Grants Creek Gold Project

The Grants Creek Gold Project is located in the East Kimberley region of Western Australia, approximately 60 kilometres north of Halls Creek. Previous exploration by Metminco and Pacrim Energy has identified a three kilometre long prospective zone defined by anomalous gold and arsenic soil geochemistry. Metminco’s RC drilling at the Perseverence Prospect in late 2008 returned many high grade single metre gold assays such as 17.8g/t, 20.7g/t, 12.8g/t and 15.25g/t from within better intercepts that included 15 metres @ 4.2g/t, 5 metres @ 5.87g/t, 6 metres @ 6.13g/t gold.

Fosterville Regional Joint Venture (Pacrim 25%, Gold Fields Australasia Pty Ltd 75%)

Gold Fields have notified Pacrim that they have completed their obligation expenditure of $2.5 million. Pacrim will be required to either dilute or contribute to future programmes on this Project.

Manus Copper Gold Project (Pacrim 20%)

The Manus project is interpreted to consist of an east/west oriented “mineralised corridor” defined by the Kren(Cu)-Njekel-Kisi-and East Worei prospects. The overall picture that is emerging is one of a copper porphyry-epithermal gold system that may host porphyry copper at depth and bonanza gold in fractures and veins at intermediate depth. Geological mapping between the Njekel and Kisi prospects has been carried out. The Kisi Zone mineralisation channel sample results included 16m @ 40g/t which contains 2m @ 303g/t gold. Further hand-dug trenching has been carried out at various locations in the Kisi area to enable further sampling and mapping. Epithermal quartz veins and altered vugghy siliceous hydrothermal breccias appear to host much of the gold mineralisation within the prospect. Geological mapping of trench exposures suggests gold mineralisation to be hosted in a series of structures. New assay results include 20m @ 1.41 g/t Au from Trench 10 at Kisi, over 200 metres northeast of the discovery outcrop. Rock chip samples collected from trenching at Lumalat, 1500m northeast along strike from Kisi discovery outcrop returned 13.8m @ 0.72 g/t Au. Exploration is planned for the intervening ground.

Blue Dam Project

The prospect comprises four prospecting licence applications located 20km southwest of Kalgoorlie, WA between the Kunnunulling and Mungari Shear Zones, similar to the nearby Frogs Legs and White Foil gold deposits to the north. Soil sampling, air core drilling and limited RC drilling have been undertaken in the past. Low order gold anomalism has been located. Ground magnetometer surveying is planned to generate further drill targets to be advanced upon granting of the tenements.

OIL & GAS PROJECTS

Northern Sacramento Basin Project (USA)

Pacrim Energy retains a 12.5% free carried interest through exploration in the plus 60,000 acre Northern Sacramento Basin project in California with the Nahabedian Exploration Group (NEG) and others.

The operator, NEG, previously advised the Company that the Worthington 2-8 well reached a total depth of 13,506 ft. Electric logs identified multiple target zones that warrant testing. Casing was then set to 13,474 ft.

Pacrim was advised in April 2008, that a test rig was in place and testing of the objective sandstone target at approximately 13,000 feet commenced. This was followed sequentially by the testing of several additional zones and the test rig was still on site as at the end of the June Quarter. Several zones of interest in the objective sandstones proved to be tight sandstones. The presence of gas was however detected in the hole with accompanying pressure build up.

It has been explained to Pacrim that plans had been to re-enter the hole to shoot further perforations, and change over to water in to stimulate the ingress of gas to enhance the flow. These efforts were inhibited by technical difficulties and implements became stuck in the hole and though freed, the well could not be reentered beyond the casing and is now only suitable as a possible sidetrack to re-drill the zone of potential. Pacrim has been further informed that a decision has been made to plug the hole and suspend operations as of late July.

Mine For

gold, nickel, oil, gas

Location of operation(s)

Western Australia, Victoria

Address

566 Elizabetth Street
MELBOURNE, VIC, AUSTRALIA

Phone

(61 3) 9349 1488

Email

Website

http://www.pacrimenergy.com.au/

Last Updated

03/03/2010