Persian to test Dalli prospect

PERSIAN Gold — the Irish-owned exploration company and one of the few Western firms operating in Iran — should have a clearer idea of its ability to reach the commercial threshold on its flagship Dalli prospect in the country by the end of March, at the latest.

The company, which is chaired by businessman John Teeling, is due to begin a 3D tonnage estimate on the prospect within the next couple of weeks, which should give an accurate picture on how deep the Dalli prospect is and how much gold and copper it may hold.

The estimate test should be completed before the end of the first quarter of this year.

The Dalli mine is a joint venture between Persian Gold and local company, Dorsa. The Irish company owns 70% of the prospect, which is located approximately 200 kilometres southwest of the Iranian capital of Tehran and comprises two main areas 1.7km apart. The mine represents Persian’s biggest single asset. The tonnage estimate test follows on from trench samples taken at existing drill holes — from which 475 samples were taken. The results of the drilling, trench sampling and surface geological mapping showed that the mine is still open — or, that the full depth hasn’t been found — at the north-northwest point of the prospect.

“The gold and copper concentrations in the trenches show a very good correlation at depth with the borehole results. A detailed 3D model of the deposit will be completed in the first quarter of 2009, which will include an estimate of potential tonnage,” Persian confirmed in a statement yesterday.

The company is understood to be confident that Dalli will prove to be commercially viable — and that the latest tonnage estimate test will go some way to proving how much.

The prospect is not located too far underneath the ground, meaning that start time on commercial drilling would not have to be held up for too long. It is thought that a couple more years of drilling will be necessary before a discovery certificate is issued.