Sunday, March 14, 2010

Victory Moly Encouraged By Mahala Results

Australia’s Victory Moly (ASX: VWM) has completed a detailed, three-dimensional, double-offset dipole-dipole Induced Polarisation (IP) geophysical survey over the Anomaly B prospect area at the company’s Malala Molybdenum Project, Sulawesi, Indonesia.
The IP survey was conducted by Khumsup Limited, an internationally recognised geophysical contracting company with specialised expertise in the acquisition of this style of IP data.
Perth-based Southern Geoscience Consultants (SGC) has undertaken data processing, modelling and interpretation.

The IP survey covered an area 3.2 km x 2.6 km centred on Anomaly B and was designed to identify the mineralised corridor believed to have the highest prospectivity for economic concentrations of molybdenum mineralisation.
Preliminary interpretation indicates the IP survey has defined the structurally-controlled contact zone between the Tinombo metasediments (highly chargeable) and the relatively less chargeable Malala Porphyry.

The total combined prospective length of these contact zones is now in excess of 4kms (the “Identified Contact Zone”) representing a significant increase to the Company’s existing target mineralisation area at Anomaly B.

Work to date at Anomaly B (exploration target of 105-115mt @ 660-900ppm over approximately 800m of the contact zone) is located within the north-eastern section of the Identified Contact Zone has demonstrated significant molybdenum mineralisation, which can be up to 250m true width.

Several historical drill holes have been completed within a corridor approximately 1km long on this contact at Anomaly B, with a number returning very significant mineralised intersections including; 234m @ 1,680ppm Mo (M12), 363m @ 600ppm Mo (M30) and 245m @ 1,200ppm Mo (M37).

The remaining part of the Identified Contact Zone (more than 3km), to the south-east and south-west, appears extremely similar to the north-eastern zone and remains largely untested by drilling providing significant demonstratable upside for the company to investigate.

The company said it is highly encouraged by this initial data and is on track to complete a comprehensive and detailed geological interpretation within the coming weeks.

During 2010, Victory West Moly has proposed to undertake a detailed drilling program to prove up the company’s initial Exploration Target, followed by an aggressive campaign designed to evaluate the remainder of the highly prospective contact zones with the objective of significantly increasing the company’s exploration target.

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