Gippsland

Gippsland Limited announces the analytical results of rock samples collected during exploration completed on its Adobha Project in Eritrea during May 2010. During the exploration programme, visible copper in the form of malachite (copper carbonate) was located in rocks in the drainage channels and bedrock in target areas E21 & E26.

The third zone of northerly striking copper mineralisation contains visible malachite and is located to the east at around 411240E giving the width of copper mineralisation identified to date of approximately 390m. This zone has not been explored further to the east.

A traverse approximately 2.5km to the north (412000N/1921900EA) located samples of mineralised float in the drainage channel that contained visible malachite. Assays of these three samples returned values of 0.81%, 0.30% & 1.49% Cu and 0.54, 1.37 & 1.15g/t Au respectively. The bedrock source of these samples has not yet been located.

Based on the lithology of the host rocks (which include altered felsic volcanics, chloritic tuffs, volcanic breccias), and the style of the mineralisation, the area is similar to low-grade copper mineralisation typical of the footwall below VMS deposits in many of the Palaeozoic, Proterozoic and Archaean deposits of Australia and Canada.

TM Anomaly E21 (404800E/1905000NA

Anomaly E21 covers a northerly trending sequence of felsic volcanics which outcrop as a steep range of hills parallel to the stratigraphy. Malachite was located in detrital rocks in channels draining a strike length of approximately 2km of the stratigraphic succession. Prospecting along these drainage channels resulted in malachite being located in bedrock discontinuously over a strike length of about 1.7km. )

A short profile of 35m (7 samples) was rock-chip sampled across an outcrop of visible malachite. Three of the samples contained strongly anomalous Cu and Zn with the maximum value being 976ppm Cu.

The exploration to date indicates that the prospective target horizon is located along the upper levels of the ridge where the felsic rocks become more chloritised and there is a higher proportion of volcanic breccias and tuffs. Chloritised felsic tuffs were located at various points along the anomaly which returned anomalous base metal values using a Niton portable XRF analyser. These high base metal values were replicated by chemical analysis with the two best values from rock samples R277 and R279. The presence of anomalous Cu, Pb & Zn values in chloritised felsic volcanic rocks is very encouraging considering the geological environment and is indicative of the close proximity to VMS mineralisation.