GOLD EXPLORATION – Kimber studies Carmen project

MEXICO - Vancouver-based KIMBER RESOURCES expects to complete a pre-feasibility study by April 2006 for its Carmen ...
MEXICO - Vancouver-based KIMBER RESOURCES expects to complete a pre-feasibility study by April 2006 for its Carmen gold-silver deposit in Mexico's Chihuahua state, said a company official.

Apart from taking an economic "snapshot" of the deposit, the study aims to upgrade some of Carmen's resources to the reserves category, said Kimber spokesperson Darren Klinck. Roughly 70% of the deposit's 1.38 million oz of gold equivalent resource is considered measured and indicated.

In addition, Kimber is feeling out further property acquisition opportunities in Mexico, particularly those with potential deposits of at least 1.0 million oz of gold equivalent and with a large number of identified drill targets, Klinck said. "We will look at [such properties] seriously, and we have been looking at projects here over the past few months," he added without giving more details.

The Carmen deposit lies at the northern end of Kimber's 28,000-ha Monterde property. Some 3 km to the west of Carmen sits the Carotare deposit, and in between the two is El Orito Norte. The three sites occupy about 2% of the total property area, said Klinck.

Carmen and Carotare contain combined resources of some 1.62 million oz of gold equivalent. Kimber began drilling at El Orito Norte in November and will continue into 2006. Drilling will continue at Carotare and Carmen as well. The idea is to "keep adding ounces. Carmen is still open in two directions. It's open at depth as well, so we think eventually there is going to be some underground potential," Klinck said, adding the goal is to demonstrate a 3.0-million-oz resource over the three targets.

Sixty holes have been drilled at Carmen in addition to those included in September's resource estimate. The most recent results included 22 metres of 11.1 g/t gold equivalent.

"We are moving towards production. That is our ultimate goal. We're quite confident that there will be a mine there, we're just not sure how big it is," said Klinck, declining to predict when the project could reach the production stage. "Our intention is to get the ounces on the board first, and that the market will in turn recognize those."

However, Kimber is open to outside interest in the Monterde property. If Kimber shareholders were to receive an offer reflecting their best interests, "then of course we're not going to stand in the way of that," Klinck said.


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