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Sep 26, 2005
Mulga Tank Drillholes Intersect 270M @0.20%Ni and 212M@0.19% Ni. Confirm Large Target for Disseminated Nickel Mineralization.
Mr. Ian Rozier, President of Newport Exploration Ltd. (the "Company") is pleased to report that assay results have been received by the Company for the two hole diamond drilling programme completed in August at the Mulga Tank Nickel Project, 200km north-east of Kalgoorlie, Western Australia.
Two vertical diamond drillholes (MTD001 and MTD002) were drilled to test two anomalous zones within a large buried dunite and airborne magnetic anomaly indicative of unexplored nickel targets. BHP previously (1980's) completed a program of shallow RC drilling to bedrock and one shallow diamond drillhole. The dunite body, covering an area of approximately 4.7km x 3.2km, had received little attention in the past due to lack of outcrop, being totally overlain by sand, and was recognized by Newport as being prospective for a large nickel sulphide target.
Drillhole MTD001 was targeted to test shallow RC drilling by BHP which reportedly returned cuttings in the range 0.38% Ni to 2.0% Ni and up to 455 ppm Cu. MTD001 was drilled to a depth of 345m to test the southern margin of the dunite body and intersected 270m with an average grade of 0.20% Ni across the entire 270m serpentinised dunite interval. In MTD001 both Ni and Cr grades systematically increase down hole within the dunite. The nickel content and texture suggest komatiitic affinities and the potential to host large disseminated, or smaller massive high grade, nickel deposits. Sulphides visible in the drill core appear mainly due to the alteration of silicate minerals. The dunite is in contact with a flat lying sulphide rich meta-sediments creating a setting highly favourable for the formation of massive nickel sulphides.
MTD002 was targeted to test and confirm BHP's diamond hole MD-1A drilled near the centre of the magnetic anomaly that previously reported an intersection of 0.58% Ni between 196-197m. Drillhole MTD002 was drilled to 372m and intersected 212m with an average grade of 0.19% Ni (from 60m). In MTD002 disseminated pentlandite and millerite were identified by petrographic examination of drillcore specimens from 175.3m. The hole was terminated within ultramafic rocks.
The preliminary interpretation of assay results suggest that the nickel grade down both drillholes is consistent, with no significant high grade intervals that could distort the interpretation of results as presented. For example, in MTD001 between 276-326m there is a 50m interval with average grade of 0.24% Ni. Between 234 and 330m, the 96m interval has an average Ni grade of 0.22%. Similarly in MTD002, an 80m interval between 60-140m has an average Ni grade of 0.22%.
Drillholes MTD001 and MTD002 were drilled two kilometers apart, with each having a differing geological character, although being komatiitic in nature. The extensive size of the target and encouraging geology suggest that significant potential remains to host economic nickel deposits, particularly near the southern periphery of the dunite. Final results including petrology and geophysical interpretations are awaited and will form the basis of the next work program.
Nickel mines in production within the region, such as Mt. Keith (the world's largest known dunite hosted Archean Ni deposit at 299mt @ 0.56% N i), or the high grade Silver Swan that averaged 14% nickel, both located close to Mulga Tank, attest to the fertility of the target rocks within the Mulga Tank project area.
The Company is very encouraged by the significant nickel mineralization encountered in the first two drillholes. "To get a 270m intersection of 0.2% nickel in our first hole at Mulga Tank is outstanding", said Ian Rozier, President of Newport. "To follow it up with a second hole two thousand metres away almost as good speaks volumes for the geophysical-geological interpretation and planning that preceded the drilling program and target selection. The Mulga Tank property is looking very good and we have an excellent land position", he said.
The Mulga Tank tenements comprise an Exploration Licence ("EL") covering 210 sq km and an Application for Exploration Licence ("AEL") covering a further 153 sq km. The Company has an option over an 80% interest in the EL and an option over a 75% interest in the AEL and all first year commitments and obligations have been met. Newport has 14.67 million shares issued and outstanding and over Cdn$1.4 million in the treasury and is well funded to continue with work and fulfill its obligations at Mulga Tank through 2006.
Assay analysis at Mulga Tank were performed by Genalysis Laboratory Services of Perth, Australia and Mr. Ian Rozier, B.Sc., M.Sc., P. Eng is the Qualified Person ("QP") responsible for preparing the technical information reported in this news release.
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