ASX RELEASE – 22 March 2012 Unit 14, 531 Hay Street P/ (08) 9278 6444 ASX Code: BRW Page 1of 4 Subiaco WA 6008 F/ (08) 9278 6449 Issued Shares: 365,483,672 W/ www.breakawayresources.com.au E/ [email protected]Market Capital: $14.25M New Copper Exploration Push at Eloise Project, North Queensland Drilling set to commence in April at Sandy Creek discovery and Eloise Mine Corridor • New phase of RC drilling (~2,000m) scheduled to commence in late April 2012. • RC drilling initially focused on the exciting new Sandy Creek copper-gold discovery, with the following key objectives: • to test the potential for a high-grade core to the Main Zone mineralisation; • to establish the size and potential of the newly discovered Western Zone, located 100m west of the Main Zone. Breakaway Resources Limited (ASX: BRW) is pleased to announce that its Board has approved a new phase of exploration activities at its 100%-owned Eloise Exploration Project in North Queensland (Figure 1), both at the exciting Sandy Creek copper-gold discovery and new target areas immediately along strike from the operating Eloise Copper Mine. The new exploration programme comprises approximately 2,000 metres of Reverse Circulation (RC) drilling and a review of historic exploration data to define additional drill targets. A drilling contractor had been secured with drilling scheduled to commence in late April 2012. Sandy Creek Drilling Programme Most of the planned drilling has been budgeted for the Sandy Creek prospect where copper-gold mineralisation has been drilled over 600 metres strike length and to an average depth of 100 metres (Figure 2). The upcoming drilling has two objectives: • To further test a strong down-hole EM conductor representing a potential high-grade plunging shoot or core within the Sandy Creek Main Zone of mineralisation. The conductor extends down-plunge from existing drill hole intercepts such as 3m @ 3.0% copper, 0.92g/t gold from 128 metres, 2m @ 2.46% copper, 0.63g/t gold from 118 metres, and 1m @ 4.62% copper, 0.88g/t gold from 113 metres. Figure 1: Eloise Exploration Project Location Plan
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ASX RELEASE – 22 March 2012
Unit 14, 531 Hay Street P/ (08) 9278 6444 ASX Code: BRW Page 1of 4 Subiaco WA 6008 F/ (08) 9278 6449 Issued Shares: 365,483,672 W/ www.breakawayresources.com.au E/ [email protected] Market Capital: $14.25M
New Copper Exploration Push at Eloise Project, Nort h Queensland Drilling set to commence in April at Sandy Creek discovery and Eloise Mine Corridor • New phase of RC drilling (~2,000m) scheduled to com mence in late April 2012. • RC drilling initially focused on the exciting new S andy Creek copper-gold discovery, with
the following key objectives:
• to test the potential for a high-grade core to the Main Zone mineralisation; • to establish the size and potential of the newly discovered Western Zone, located
100m west of the Main Zone.
Breakaway Resources Limited (ASX: BRW ) is pleased to announce that its Board has approved a new phase of exploration activities at its 100%-owned Eloise Exploration Project in North Queensland (Figure 1), both at the exciting Sandy Creek copper-gold discovery and new target areas immediately along strike from the operating Eloise Copper Mine . The new exploration programme comprises approximately 2,000 metres of Reverse Circulation (RC) drilling and a review of historic exploration data to define additional drill targets. A drilling contractor had been secured with drilling scheduled to commence in late April 2012. Sandy Creek Drilling Programme Most of the planned drilling has been budgeted for the Sandy Creek prospect where copper-gold mineralisation has been drilled over 600 metres strike length and to an average depth of 100 metres (Figure 2). The upcoming drilling has two objectives:
• To further test a strong down-hole EM
conductor representing a potential high-grade plunging shoot or core within the Sandy Creek Main Zone of mineralisation. The conductor extends down-plunge from existing drill hole intercepts such as 3m @ 3.0% copper, 0.92g/t gold from 128 metres, 2m @ 2.46% copper, 0.63g/t gold from 118 metres, and 1m @ 4.62% copper, 0.88g/t gold from 113 metres.
Figure 1: Eloise Exploration Project Location Plan
Page 2 of 4 Unit 14, 531 Hay Street P/ (08) 9278 6444 ASX Code: BRW Page 2 of 4 Subiaco WA 6008 F/ (08) 9278 6449 Issued Shares: 365,483,672 W/ www.breakawayresources.com.au E/ [email protected] Market Capital: $14.25M
Figure 2: Sandy Creek Long Section showing position of DHTEM anomaly
• To test the size and potential of the newly discovered Western Zone , located approximately 100m west of the Main Zone and which presents the opportunity for a second significant zone of potentially open-pitable near-surface mineralisation at Sandy Creek. Drilling results for this zone were announced earlier this year (i.e. 14.38m @ 0.72% copper, 0.38g/t gold from 85.42 metres including 3.53m @ 1.64% copper, 0.21g/t gold from 96.27 metres in 11BERD0104);
A preliminary scoping review of the prospect suggests that confirmation of a high - grade core within the mineralisation has the potential to significantly enhance the economics of any future mine development. The delineation of additional mineralisation at the Western Zone will also enhance the economics of a future mining operation. Breakaway believes the next round of drilling will therefore be critical to determining the strategic direction of ongoing exploration and evaluation of the Sandy Creek copper-gold discovery.
Eloise Mine Corridor Breakaway is also reviewing two strategically important target areas that lie within a 2km radius of the operating Eloise Copper Mine. Specific follow up drill targets generated by the review will be drill tested as part of the 2,000 metre RC program (Figure 3). The first area (Eloise South West ) comprises a series of strong surface and downhole EM conductors and anomalous drill results located immediately south of the mine. Previous wide spaced diamond drilling by Breakaway in 2007 returned 7.7m @ 0.86%Cu, 0.30g/t Au from 97metres in 07BERD039, including 0.7m @ 4.63%Cu, 1.97g/t Au from 100 metres, 1m @ 1.96% Cu, 0.96g/t Au from 173 metres and 4m @ 0.61%Cu, 0.07g/t Au from 180 metres in 07BERD0043, approximately 100 metres down dip of the 07BERD0039 intercept. Significantly the drill intercepts occur within the southern strike continuation of the Eloise Copper Mine rock sequence, and they remain open along strike with no drilling for at least 300 metres in both directions.
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The second area (Eloise North) comprises a strong EM conductor , located immediately north of the mine. Two drillholes completed by Breakaway in 2007 whilst failing to intersect the conductor, drilled a favorable sequence of rock types comparable to the host rocks at Eloise. The conductor is significant given that it lies directly along strike to the mine, occurs within the Eloise rock types and that there has been little, if any drilling throughout the area. Management Comment Breakaway’s Managing Director, Mr David Hutton, said the Board had endorsed another significant round of exploration drilling at the Eloise Exploration Project, building on the success of last year’s programs. “Sandy Creek represents the most immediate opportunity for the Company, and the next round of drilling is designed to demonstrate the prospect’s economic potential. Importantly, we will also test some very exciting targets which represent potential strike extensions of the structures and rock types that host the mineralisation at the Eloise Copper Mine”. “Drilling will commence in late April, and we feel confident that this should generate a period of significant activity and news flow for Breakaway shareholders,” Mr Hutton said.
ENDS
Figure 3: Eloise Mine Corridor Targets
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For Media Inquiries Contact: Nicholas Read – Read Corporate
Mobile: 0419 929 046
Business: (08) 9388 1474
The information in this report that relates to Exploration Results and Mineral Resources
is based on information compiled by Mr David Hutton (Managing Director), a full time
employee of the Company. Mr Hutton is a Fellow of the Australasian Institute of Mining
and Metallurgy (AusIMM). He has sufficient experience of relevance to the styles of
mineralisation and the types of deposits under consideration, and to the
activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition
of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves.
Mr Hutton consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
About Breakaway Resources Limited:
Breakaway Resources aims to generate shareholder wealth through the discovery and development of a high-quality standalone mineral deposit. The Company’s exploration
activities are focussed on our priority Eloise Exploration Project (copper – gold) located
within the Cloncurry Mineral District of North West Queensland which is host to a
number of world-class mineral deposits.
About the Sandy Creek copper – gold prospect: Sandy Creek lies within Breakaway’s 100%-owned Eloise Exploration Project, 70km
south-east of Cloncurry, in the heart of the world-class Cloncurry Mineral District of
North West Queensland and 20km west of the operating Eloise Copper Mine.
Table 1 – Eloise Mine Corridor Historical Drilling I ntercepts and Collar Details
Hole ID Prospect Northing Easting Dip° AziMag° From Width g/tAu %Cu g/tAg %Pb %Zn
“ “ “ “ “ “ 180.0 4.0 0.07 0.61 - - - Notes: END47 is a historic drill hole completed prior to Breakaway’s involvement in the Eloise Exploration Project. As such details of its sampling and analytical methods are uncertain. All diamond drill hole results are obtained from analysis of 1 metre samples (unless otherwise specified). Sampling is undertaken following logging of geological boundaries within the drill hole. All samples are prepared and analysed at ALSGlobal Pty Ltd’s Townsville Minerals Laboratory. Sample preparation is by pulverisation of the entire sample to a nominal 85% passing 75 microns in size (method LOG-23 / PUL-23). Base metal analysis is carried out by subjecting a 25-gram portion of the sample to a multi acid digest and analysing the sample by Inductively Coupled Plasma Atomic Emission Spectrometry (method ME-ICP61). Gold and precious metal analysis is carried by 25g Fire Assay and an AAS finish (method Au-AA25) • Intersections are reported as down hole widths, not true widths. • Reported intersections are calculated as length weighted average grades typically using the following cut off grades - a 0.5% copper,
lead and zinc, and 0.5g/t gold and silver. • Au – gold, Ag – silver, Cu – copper, Pb – lead, and Zn – zinc. • The intersection obtained from 104 metres in 11BERC0070 was obtained from analysis of 4 metre composite samples. • The location of drill holes were determined using a handheld GPS achieving +/- 4 metre accuracy - MGA datum (Zone 54). • End of hole surveys were obtained using either an Eastman single shot survey camera or Reflex downhole survey tool.
