Transol Corporation Limited is pleased to announce that it has discovered a large anomalous zone of gold-copper mineralisation immediately north of the main Johnnies Reward Prospect at its Johnnies Reward Gold Project, located 75km north-east of Alice Springs in the Northern Territory. The gold-copper anomaly, which represents a priority target for follow-up exploration in 2013, was outlined by an extensive soil sampling program completed late last year.

Soil Program

During November 2012, a total of 394 2mm soil samples were collected north of the Johnnies Reward Prospect to extend the original Alcoa soil grid by 2km to the north.
The sampling program was designed to cover the area of higher magnetic response outlined by a regional magnetic survey. Samples were taken on a 50m by 100m grid over mostly in-situ soils and sub-cropping altered sediments and gneissic lithologies. Samples were analysed for Au, Ag, As, Bi and Cu. The results highlight an anomalous northwest – southeast trending corridor of +50ppb Au and +25ppm Cu located 1.5km north of Johnnies Reward. The main anomaly, named the Black Angus Prospect, is 300m long and 180m wide and occurs on the eastern edge of the grid with a peak value of 84ppb Au (as compared to a background value of <10 ppb Au).

Black Angus is open to the south-east and is coincident with a south-east trending fault zone which may be an important transfer structure for migrating mineralised fluids between the Pinnacles line and the Johnnies Reward corridor. Investigation of the historical database for the project has identified a rock chip of 0.29 g/t Au and 194ppm Cu on the southern edge of this anomaly. Follow-up rock chip samples have been collected with results pending. A single line of sampling, comprising seven (7) samples, was completed over the Johnnies Reward Prospect for orientation and reference. The Johnnies Reward gold results ranged from 1ppb to a peak of 18ppb Au, with an associated copper high of 586ppm.

Considering that significant gold mineralisation has been identified at Johnnies Reward from both diamond and RC drilling, the Black Angus anomaly, with a peak gold-in-soils value of 84ppb Au, is a very interesting discovery which will now be the focus of additional sampling and mapping prior to reconnaissance drilling later this year.

Drilling – Johnnies Reward

The previously announced Phase 2 RC drilling program (see ASX Announcement – 5 December 2012), was completed at the Johnnies Reward Prospect during December. The Company’s Joint Venture Partner, Sturt Resources, contracted McKay Drilling of Wangara, WA to undertake the program using a Schramm T685WS Rotadrill RC drill. The drilling was designed to intersect the mineralised zone down-plunge of the Phase 1 drilling completed in July last year which returned significant results including 24m @ 4.19g/t Au and 0.33% Cu from 79m and 34m @ 3.83g/t Au and 0.44% Cu from 63m.

During the 10-day program, a total of nine (9) RC drill holes (12JRRC009 to 12JRRC017 inclusive), were completed with depths varying between 152m and 217m for a total of 1,640m. Utilizing a cone splitter, both single metre samples and 4 metre composite samples were collected at the time of drilling. A total of 1,640 single metre samples and 413 composite samples have been collected and retained. All drill holes were lithologically logged and a chip sample from each metre drilled retained. Upon completion, all holes were surveyed with a gyroscopic down-hole survey instrument. The collar locations of all holes were surveyed with differential GPS.

Single metre samples visually judged to be from the better mineralised portions of each drill hole and composite samples from all other parts of the drill holes were selected for analysis. To date a total of 800 single metre mineralised samples and 143 composite samples have been submitted to ALS’ preparation facility in Alice Springs for preparation prior to shipping to ALS’ Perth laboratory for analysis. All single samples are to be analysed for gold by 30 gram fire assay and Cu by a four acid “near total” digest followed by analysis by ICP-AES (inductively coupled plasma atomic emission spectroscopy). All composite samples are to be analysed for Au by 30 gram fire assay. Assay results are expected late January.