STRZELECKI METALS LTD - ASX: STZ

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Description

Strzelecki Metals is a minerals exploration and development company, with offices in Adelaide, Australia and Krakow, Poland. Strzelecki is listed on the Australian Stock Exchange and operates in Poland through its wholly owned subsidiary, the Slasko Krakowska Kompania Górnictwa Metali Sp. z o.o. (SKKGM).

In Poland, SKKGM holds a Concession over the Myszków-Zarki mineral system in Southern Poland, which includes the Myszków molybdenum-copper-tungsten deposit. Based on existing drill hole data, this deposit has inferred resource of 726mT using a cut off grade of 0.12% Mo. The depth and lateral extents of this resource are still open. Strzelecki is methodically drilling this resources to establish its full extent and accurately scope a mining operation to exploit this resource. The company is also looking to identify other projects in Central Europe for potential acquisition.

In Australia, Strzelecki holds highly prospective mineral tenements in Western Australia. where its focus is the discovery of commercial deposits of precious and base metals (Cu, Au, Ni & U) and the formation of joint ventures with major resource companies to leverage greater exploration flexibility.

Myszkow Mo/Cu Project, Poland

The Myszkow Mo/Cu project is located in South-West Poland near the towns of Myszkow and Zarki, some 80 km to the north-west of the city of Krakow. Mineralisation in the area was identified by the Polish Geological Institute in the late 1960’s. Follow up drilling by Polish Government institutions identified the Myszkow Mo-Cu-W deposit. Geologically, the concession area is located within the Malopolska Block, which is a major geological unit of Southern Poland. The Myszkow deposit itself developed along a major NW-SE trending fault system of the Malopolska Block. This structure is a part of a major, central Europe scale NW-SE trending lineament/tectonic zone known as the Hamburg-Krakow Fault Zone (HKFZ). In a tectonic sense, on the HKFZ about 200km NW of the Myszkow Project in the Lubin area, the Kupferschieffer type Copper-polymetallic mineralisation developed. This is recognised as one of the world’s most prominent metalliferous deposits (>100Mt of metallic Cu).

The copper-silver deposits of the Lubin district are examples of peneconcordant, red-bed associated deposits. They are located about 75km north-west of Wroclaw in southwest Poland, on the northwest-dipping limb of the Fore-Sudetic Monocline. The deposit currently being mined extends over nearly 500km2, varies in thickness from .4 to 26m, and contains on average 2% Cu, 40ppm Ag, 0.2%Pb, 0.1%Zn, as well as anomalous concentrations of As, Ni, Co, Au and platinum-group metals. The deposit limits are undefined down dip to the northeast and the mine workings will eventually reach a maximum economic mining depth. It has been estimated that the entire mining district contains about 68mt Cu, 170,000t Ag, 5.2mt Pb, and similar amounts of Zn. The noble metal reserves are currently estimated at the level of 156t Au, 20t Pt, and 10t Pd. Therefore, the Lubin copper deposits of the district rank as one of the largest in the world. A detailed inventory of the amount of Cu present within the ore series estimates that the Zechstein basin in Poland may contain about 350Mt of copper metal.

Even after some 40 years of exploitation, today’s unexploited resources are estimated at 1.5 billion tons at 2% Cu and 56g/t Ag. As a result of the size of the documented copper ore resources in the region, Poland holds 8th place globally in terms of copper resources, and 1st place in terms of silver (based on the U.S. Geological Survey-2007).

West Musgrave, Australia

Strzelecki has stepped up its exploration effort in the West Musgrave and has successfully negotiated a new Joint Venture Agreement with Tortuga Advisors Ltd, an unlisted, public company incorporated in Victoria. Under the agreement Tortuga may earn up to 80% interest in the tenements by spending $4 million on exploration within five years. Tortuga will earn its interest with three expenditure tranches of $0.75, $1.5 and $1.75 million corresponding to an earned interest of 15%, 51% and 80%. If STZ's interest reduces to 20% then STZ may elect to convert its share to a 14% free carried interest through to the development and mining of a deposit within the tenements.

This new agreement covers Strzelecki's nine tenements in the West Musgrave covering a total of 1,489 square kilometres. These are highly prospective for Gold, Copper, Nickel, PGE as well as Uranium, located as shown in Figure 1. Strzelecki's eastern tenements cover the Proterozoic Palgrave complex and abut the grounds of BHP Billiton, where the Babel and Nebo Nickel discoveries are located. In the south, the tenements abut the exploration ground held by Beadell Resources, which recently announced an encouraging gold discovery in their drilling associated with brecciated rhyolites and agglomerates that are abundant on Strzelecki's ground.

Steere River, Australia (Strzelecki Metals 80%)

The Steere River prospect covers 84 sq km of highly prospective exploration ground in south west of Western Australia. This project neighbours the significant ‘Trilogy’ polymetallic deposit (-1 Moz) and is along its strike and plunge direction. Previous exploration to date ceased prematurely and Strzelecki Metals intends to pursue its full potential by completing the work and properly evaluating its prospective mineralisation.

Strzelecki Metals has identified a series of high priority drilling targets with an emphasis on gold, copper and nickel mineralisation in the area. Of note is the graphite schist which overlays the basement and is highly prospective for uranium in the Rio Tinto Rudall Project. Strzelecki Metals intends to define the extent of this layer and its potential for local uranium deposits.

Mine For

molybdenum, copper, gold, nickel, uranium, platinum group elements

Location of operation(s)

Poland, Western Australia

Address

Level 5, 70 Pirie St
ADELAIDE, SA, Australia

Phone

(61 8) 8227 0555

Email

Website

http://www.strzeleckimetals.com.au

Last Updated

12/5/2011