Korab Resources (KOR)

Shares / Stock Code

KOR

Stock Exchange / Sharemarket

ax

Korab Resources (KOR) is an exploration company, searching for gold, copper, zinc and uranium. KOR holds a portfolio of five projects in Western Australia and the Northern Territory. The company's flagship project is the Batchelor uranium project.

KOR was established in March 1998 to explore projects within Western Australia. The company listed on the Australian stockmarket (ASX) on 31 August, 2005.

The Batchelor project is situated close to existing infrastructure. The project is directly adjacent to the Stuart Highway, the Alice Springs to Darwin railway and within a few kilometres of a large gas pipeline.

As an explorer, Korab Resources has no customers at present. KOR competes with other companies involved in exploration activites such as BHP Billiton, Rio Tinto and Harmony.

Company's corporate strategy is to establish Korab as a niche operator in sectors with strong historical growth and a continuing long term growth potential. All their projects are characterised by low operating cost and high profit margin.

Melrose Gold Project

Melrose is an advanced gold project with the added potential of additional mineralisation at depth and along strike. The project has an established gold resource base of 326,000 ounces in three deposit: Boundary, Bungarra and Stirling, located on three granted mining leases.

The existing gold resources appear to have further ore potential at depth. Previous composite drill intersections that include 56 metres at 3.6 g/t from 49 metres, 22 metres at 11.6 g/t from 90 metres, 14 metres at 6.3g/t from 77 metres, 17 metres at 14.2g/t from 153 metres and 5 metres at 11.0g/t from 120 metres, justify belief of independent experts who suggest that the project may contain in excess of 1 million ounces Au.

Drilling completed by Korab in 2005 and 2006 has confirmed the supergene nature of the Bungarra and has outlined areas of high grade mineralisation grading up to 211 g/t gold (6.8 ounces of gold per tone of ore). It also appears that the mineralisation is open at depth and laterally.