Promising gold results for Zedex

The company, which trades on the Unlisted Securities Market, has identified 14 target areas at its Phuoc Son project, located 140 kilometres by road west of the coastal city of Danang. Drilling has so far been taking place at two sites within the 100 square km licence area - Bai Dat and Bai Go.

Selected samples from drilling in the Bai Go site have been analysed in Canada, and the results show they were 'unusually well mineralised', with four drill holes in the area showing between 10 and 35 grams of gold per tonne. The original split core that was sent to Australia is now being tested and the company says results from that test will be announced as soon as they are available.

Zedex spokesman, John Seton, says a result such as Bai Go, where grams per tonne are in double figures, is very good, especially in comparison to mines such as Waihi where economic viability can be as low as two grams per tonne.

The Bai Go sample also showed positive traces of silver, lead and some zinc.

Zedex says the results support the previous results in its drilling programme and confirms the considerable potential of the Phuoc Son project. It says drilling will continue both at Bai Dat and Bai Go until the start of the monsoon season in early November.

Drilling will restart around the end of January.

Zedex was formerly Iddison Holdings, and was incorporated early last year to buy the Vietnamese assets previously owned by IT Capital. The company has a 10% direct interest in a joint venture company called New Vietnam Mining Corporation, which owns the exploration licences to the mining areas. The other shareholders are Canadian-listed company Olympus Pacific Mineral, with a 57% stake, and Ivanhoe Mines with 33%. Zedex is also the largest shareholder in Olympus Pacific.

Early this month Zedex announced the closure of its rights issue which, together with a recent private placement, raised $1.159 million.

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