PROSPERITY RESOURCES LIMITED - ASX: PSP

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Description

Prosperity Resources Limited is a Western Australian based gold-copper explorer listed on the Australian Securities Exchange (PSP). The Company's strategic focus is on Indonesia, having recently acquired the Pinang-Pinang Gold-Copper Project in Aceh, Indonesia. Prosperity also has significant land holdings in the historic mining region of Tennant Creek in the Northern Territory, and iron ore and gold interests in the Murchison region of Western Australia.

The Company has an experienced management team with expertise in exploration, operations, legal and project financing. The Company’s focus is on adding value to quality acquisitions.

INDONESIA - Gold-copper

Prosperity's Indonesian project is located in the southern coastal portion of Aceh Province in Sumatra. Most of the area can be accessed by road from local coastal towns or tracks between villages aligned along river valleys cutting across the licences. The licences extend parallel to the coast for over 60 kilometres from the town of Labuhan Haji in the north to south of the major town of Tapaktuan which serves as the base for operations. Prosperity holds a 41,000 hectares land package covering what the Company recognised as an underexplored yet potentially highly prospective mineralised belt. Since commencing exploration Prosperity has highlighted ten porphyry intrusive centres and related mineralised skarn and alteration zones confirming this high potential.

Prosperity started field work on the Pala Prospect, to the south in April 2009 in joint venture with PT MMU. They completing a ground magnetic survey and soil sampling over a two by two kilometre grid, complemented by geological mapping work over an extended area. Three potential porphyry centres, Pala, Nilam and Jelatang along six kilometres of strike were identified in this original license area. A 16 hole shallow diamond drilling program was completed at Pala in January 2010 with encouraging results. Outside of these intercepts the generally elevated tenor of gold and copper values within the host intrusvie rocks reflects a significantly Au-Cu enriched intrusive environment. The source causative body is yet to be resolved. Two cross section diagrams of the Pala drilling are shown below.

A shallow two hole program was completed at Jelatang in May 2010. Hole PNGD017 finished in mineralisation with the last 17m recording 1.27 g/t gold and 0.70% copper. The cross section for hole PNGD017 is shown below. As with Pala the causative source of the endoskarn mineralisation is not resolved. The magnetite skarn mineralisation intersected at Jelatang is along strike from a much more extensive and intense zone of magnetic anomalism which constitutes the Kuini Prospect which remains to be drill tested. The skarn developments may be significant resources in their own right and this needs to be assessed.

TENNANT CREEK

Prosperity’s Tennant Creek Property is situated around the small township of Tennant Creek, located 500 kilometres north of Alice Springs and 1000 kilometres south of Darwin. Tennant Creek was the site of Australia’s last major gold rush in the 1930s following the realisation that rich gold mineralisation was hosted by “iron-stones” and not quartz, in which prospectors commonly looked for gold. Since then, the Tennant Creek Goldfield has produced over 5.5 million ounces of gold and close to 470,000 tonnes of copper.

Prosperity holds a significant tenement holding with strategically positioned tenement groups in the southern, central and northern areas of this large goldfield, well known for its small but very high-grade deposits. The Prosperity tenements lie within very prospective areas of the Tennant Creek Goldfield adjacent to some of the largest mines (e.g. Warrego and Juno) but are unique in that these leases have virtually no drilling on them. This dramatically increases the possibility of new discoveries being made at comparatively shallow depths.

Prosperity has just completed a comprehensive review of the geology and mineralisation of Tennant Creek which has confirmed provided new insights into the exploration of this under-explored goldfield. The review highlights that the historical reliance on geophysical prospecting as the primary exploration methodology led to the declining discovery rates and has focussed past discoveries on a select group of deposits at Tennant Creek. This has constrained the discovery of larger deposits.

Prosperity understands the need for additional input related to the common geology and geochemical features of large gold systems are the key to improved prospect targeting and cost efficient exploration at Tennant Creek. The Company has indentified a number of exciting new targets at Tennant Creek, and the testing of these prospects will commence in the coming field season.

Mine For

copper, gold, iron ore, molybdenum

Location of operation(s)

Western Australia, Northern Territory, Indonesia

Address

100 Parry St
PERTH, WA, AUSTRALIA

Phone

(08) 93227575

Email

Website

http://www.prosperity.net.au/

Last Updated

28/02/2011