Gippsland Limited (GIP)

Gippsland Limited (GIP) – Abu Dabbab Project

Resource Update Highlights
• 11% resource increase from 40 to 44.5 million tonnes
• Upgrade of Measured and Indicated Resources
• Increase in tantalum and tin grades

Gippsland Limited has now received all the tantalum and tin assays from the diamond drill sections completed as part of the infill drilling programme at Abu Dabbab.  The programme was designed to allow an upgrade of the Inferred Resources to the higher Indicated and Measured categories.  Success of the programme was shown initially with the upgrade made to resources based on the RC drill results received up to March. 

• The new diamond drilling has resulted in an 11% global resource increase from 40 million tonnes to 44.5 million tonnes, of which 32.5 million tonnes are now in the Measured and Indicated categories.
• As a result of the new diamond drilling the global tantalum pentoxide (Ta2O5) grade has increased from 243g/t to 250g/t.
• The Company’s mining engineers are currently completing pit optimisation studies on the new resource model, and a new reserve update is expected to be completed in the near future.  An increase in the total Ore Reserve inventory will strengthen the financial model, thus providing the project finance banks with increased confidence in the Project.

Executive Chairman of Gippsland, Jack Telford commented,
“The drilling programme has been an outstanding success despite delays caused by the industry-wide problem of assay laboratory back-logs.  It has produced an 11% resource increase with 73% of the resource now categorised as Measured and Indicated while the global tantalum pentoxide grade has increased from 243g/t to 250g/t.  These results further underpin the robustness of the Abu Dabbab project whilst reinforcing Gippsland’s position in becoming a major supplier to the global tantalum industry”.

For more information please go to: www.gippslandltd.com