October 08, 2008

New high grade zinc intersected at Victoria prospect

It is reported that the first diamond drill hole completed by Kagara Zinc at the Victoria prospect near Chillagoe in far north Queensland has intersected 26.84 meter assaying 6.0% zinc, 0.6% copper and 11 grams per tonne silver from a depth of 176.56 meter.

Mr Kim Robinson, the company’s executive chairman said that this intersection is particularly significant in that it is drilled beneath a number of shallow Reverse Circulation holes drilled in November 2005, which outlined a lower grade, narrower zone of mineralization over a 400 meters strike length.

Victoria lies 5 kilometer due east of the Mungana treatment plant site and any ore discovered at Victoria would be ideal feed into the Mungana facility.