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For personal use only Assets, Experience, Growth ASX ANNOUNCEMENT – 22 August 2012 MAJOR NEW COPPER-GOLD EXPLORATION PROGRAM COMMENCES AT MT ISA PR...
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Assets, Experience, Growth

ASX ANNOUNCEMENT – 22 August 2012

MAJOR NEW COPPER-GOLD EXPLORATION PROGRAM COMMENCES AT MT ISA PROJECTS, NORTH QUEENSLAND HERALDS SIGNIFICANT NEW BEGINNING FOR SYNDICATED IN MT ISA REGION Key Points 

Drilling to commence this week at the Barbara Copper-Gold Project targeting potential extensions of the existing Indicated and Inferred Resources (5.7Mt @ 1.7% CuEq).



Areas to be drilled immediately down-plunge and along strike of the Barbara North and South Lodes, including strong EM conductors.



Maiden drilling to be undertaken at the exciting Yamamilla Prospect, targeting coincident soil geochemistry and EM anomalies within an overall 7km long soil anomaly.



EM geophysical surveys (40 line km) already underway at the Dronfield Prospect (Southern Hub) ahead of planned drilling.



Ground geophysics to continue across key Southern Hub targets (Dronfield, Duke, Big Hill, Nil Desperandum) to generate pipeline of drilling targets.

Syndicated Metals Limited (ASX: SMD – “Syndicated” or “the Company”) is pleased to announce the commencement of the on-ground exploration program for the 2012/13 financial year at its key Mt Isa Copper-Gold Projects in North Queensland (Figure 1). The exploration program consists of:   

40 line km of ground EM geophysical surveys; Soil geochemical surveys covering five prospects defined by regional geophysics and rock chipping; and 5,600 metres of RC drilling at a number of properties and previously defined targets.

The exploration program commenced on Friday, 17 August 2012 with mobilization of EM survey crews to the Dronfield Prospect. Mobilisation of the RC drilling rig is expected by Friday, 24 August 2012 to the Barbara and Yamamilla Prospects.

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The initial exploration targets are summarized below:

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Northern Hub 

A 4-6 hole RC drilling program will be undertaken at the Barbara Project (currently owned 51% by Syndicated Metals and 49% by Orbis Gold Limited). The drilling will target potential strike extensions of the high-grade Barbara North and Barbara South deposits.



A 10-12 hole RC drilling program will be undertaken at the Yamamilla Prospect, located 10km north-east of Barbara, where SMD is earning 80% ownership in the base and precious metals project from Deep Yellow. The drilling will test a number of targets defined by coincident EM and soil geochemical anomalies.

At Barbara, drilling will test the potential for extensions to the Barbara South Lode (Indicated and Inferred Resource of 4.3Mt grading 1.4% Cu for 62,100t of contained copper) and the Barbara North Lode (1.4Mt grading 1.4% Cu for 13,700t of contained copper) (Figure 2). Four priority targets have been identified, which are shown in plan view in Figure 2 and in Long Section on Figure 3. Target 4 is a strong EM conductor located beneath outcropping gossan to the north of the Barbara North Lode and is the primary target of the initial drilling campaign. Target 2 represents potential down-plunge extensions of the Barbara South Lode to the south, while Target 3 represents potential depth-extensions of the Barbara North deposit. Target 1 represents potential down-plunge extensions of the Northern Gossan prospect The drilling rig will then move to Yamamilla to commence the first-ever drilling program to be undertaken in the area. The drilling will target coincident soil geochemistry and ground EM anomalies defined by Syndicated in 2011. The main soil anomaly is over 7km in length and is illustrated in Figure 4. Both of these areas share outstanding potential for the discovery of significant copper-gold mineralization to complement the existing Indicated and Inferred Resource at Barbara of 5.3Mt @ 1.7% CuEq. Southern Hub 

The EM and soil geochemistry programs will be expanded at the Dronfield, Duke, Big Hill and Nil Desperandum Prospects, where limited previous exploration has highlighted a number of exciting exploration targets.



A 10-14 RC drill hole program is planned to follow up high priority targets developed in the initial soil geochemistry and ground EM programs currently underway in the area. In many cases this planned drilling will be the first in the area.

At the Southern Hub, the Company is undertaking a systematic and measured approach to the exploration program, commencing with ground EM and soil geochemistry programs over prospects that have yielded high-grade rock chip samples and small-scale production from historical surface exploration and old prospector’s pits.

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The Southern Hub program is aimed at defining coherent drilling targets for follow up once the initial Northern Hub drilling programs are complete. Syndicated’s Managing Director, Andrew Munckton, said the Company was pleased to announce the commencement of its first major exploration program since restructuring its Board and Management team and launching a refreshed corporate strategy in March this year. “The past few months have been spent completing the strategic review of our assets, confirming the existing resources, identifying exciting new exploration targets and securing the required statutory approvals to enable exploration to commence,” Mr Munckton said. “We are now ready to roll and we believe that the launch of this program heralds a significant new beginning for Syndicated Metals in the Mt Isa region,” he said. “The drilling program should take approximately six weeks, with EM and soils programs running in parallel on the Southern Hub tenements. This should generate strong news flow from drilling results, plus a strong pipeline of follow-up targets once the initial round of drilling is completed. “The exploration targets the Company has outlined look very exciting to our geological team and we are looking with great interest to the proven techniques of ground EM and soil geochemistry coupled with the established database of historical work to define more drilling targets in the Southern Hub over the coming months.” The Company looks forward to reporting results from the 2012/13 exploration program as they become available. ENDS For further information: Investors Andrew Munckton – Syndicated Metals Mobile: 0435 635 598 Media Nicholas Read – Read Corporate Mobile: 0419 929 046

Competent Person’s Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Andrew Munckton who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Munckton is a full-time employee of Syndicated Metals Limited and consents to the inclusion in the report of the Exploration Results and Mineral Resources in the form and context in which they appear.

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Figure 1 – Syndicated Metals’ Mount Isa Copper-Gold Projects, showing Northern and Southern Project Hubs

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Figure 2 – Barbara Project showing priority drilling targets

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Figure 3 – Barbara Project Long Section showing key drill targets

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Figure 4 – Yamamilla Project showing location of proposed drill holes targeting coincident soil geochemistry and EM anomalies

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