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Nov 03, 2004
Work Underway at Mulga Tank Nickel Project, W. Australia
Mr. Ian Rozier, President of Newport Exploration Ltd. (the "Company") is pleased to announce that work is underway on the Mulga Tank Nickel Project ("Mulga Tank") located in Western Australia. In September 2004 the Company announced that the TSX Venture Exchange had accepted for filing the Company's Agreement to acquire an 80% interest in an Exploration License covering 210 sq km, and a 75% interest in an Application License covering 153 sq km from King Eagle Resources Pty Ltd.
Mulga Tank is a significant target for the large dunite hosted nickel sulphide deposit located approximately 250km northeast of Kalgoorlie in the Northeast Goldfields of Western Australia, an area that contains some of the world's largest nickel deposits. The Mulga Tank tenements overlay portions of an extensive greenstone belt, which includes the Minigwal dunite, a large, intense, circular, magnetic anomaly with an area of approximately 4 km in diameter. This anomaly has the characteristics for a major dunite hosted nickel sulphide deposit such as Mt. Keith, also located in the Northeast Goldfields area of Western Australia. Technical work undertaken by BHP at Mulga Tank in the early 1980s reported assay results of up to 2% nickel and defined an extensive zone of 0.2% - 0.5% Ni, which included 2261m of shallow RC drilling, that remains open at depth in all directions.
Geological and geophysical consultants have been contracted. The geological consultant engaged, Mr. Noel Sheppy of CSA Australia, has interpreted airborne magnetic data and a series of prospective zones have been identified that may have the potential to host high-grade nickel sulphide bodies within the larger disseminated dunite body. Typically in the Yilgarn, massive sulphide nickel deposits occur on the basal contact of ultramafics derived from a flow or ponding of mineralized fluids (komatiite model). This could be a significant at Mulga Tank as initially the target was a low-grade disseminated deposit similar to Mt Keith. The review of data suggests that it could be both a disseminated and high sulphide komatiite deposit.
Further geophysics is planned and will include 3-dimensional induced polarization (3D-IP) to define both low and high sulphide zones within the dunite. This is a high- resolution survey with superior depth penetration and this exploration technique is keenly sought after in Western Australia, and the next available survey crew cannot mobilize until early 2005. To expedite work on the property and further define targets a low level airborne magnetic survey has been designed (60m line spacing at 20m elevation totaling 900 line km) which will deliver ultra-high detailed magnetic, radiometric and digital terrain data. The geophysical contracting company, UTS Geophysics, can complete the work in December 2004. Data obtained will assist in modeling the geology, structures and defining discrete magnetic anomalies within the larger dunite magnetic target. Additionally the survey will enable focusing the proposed 3D-IP on well-defined magnetic targets reducing the scale and subsequent cost of the IP survey.
Both the low level airborne magnetics and 3D-IP should generate walk up drill targets and the Company should be in a position to commence drilling in early 2005.
"By virtue of its size, anomalism and the exploration results to date, the Mulga Tank prospect has the potential to host a major nickel sulphide deposit and as such represents an excellent acquisition for Newport", stated Ian Rozier.
The Mulga Tank nickel project will be the major focus of the Company going forward, and accordingly, the Company is withdrawing from its right to earn a 50% in the Franco Gold Project in Mexico. The Company is well funded to meet all its obligations on Mulga Tank for the next two years.
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