Canadian-listed Underworld Resources seeks gold, base metals

Adrian Fleming, the Dunedin-based president and chief executive officer of Underworld Resources, says early work on a volcanogenic massive sulphide (VMS) prospect at Lottin Point (EP 40 666), about 30 kilometres north west of East Cape is showing promise. Underworld has an option over the permit and may earn a 100% interest in the property subject to certain exploration and expenditure commitments plus payments to the permit owners.

Mr Fleming said the objective is to identify the bedrock source of a barite-sulphide boulder train that occurs in two creeks in the area. Assay results of the boulders show they contain gold, silver, copper, lead and zinc.

Mr Fleming said the massive sulphides in the boulders on the coastal Lottin Point site had some similarity to the seafloor massive sulphide deposits located offshore on underwater sea mounts along the Kermadec arc.

Underworld Resources recently completed a programme of ground-based gravity, magnetics and IP geophysics. Diamond drilling is planned at the site in May 2007 following additional mapping in April.

Underworld Resources other project, the Golden Progress gold prospect at Oturehua in Central Otago (EP 40 761), contains structurally-controlled mesothermal gold mineralisation of a similar style to New Zealand’s largest producing gold mine at Macraes, 45 kilometres to the south east.

Golden Progress, which contains a sheeted vein system with at least 12 structures identified to-date occurs in a 1500 by 3000 metre area. It was the site of an underground mine for gold-bearing quartz beginning in the Otago gold rush days of the 1860s.

The mine has historically produced 4,990 oz of gold from several steeply dipping quartz veins up to 11 meters thick, averaging about 1 metre thick, and extending 100 to 500 metres along strike.
Following completion of due diligence on the Golden Progress permit in February 2007, Underworld may earn a 75% interest in the 712 hectare property currently held by Stracon (NZ) Ltd by spending $NZ150,000 on exploration including 500 metres of drilling by November 2007 plus additional exploration work and payments to Stracon.

Underworld began an exploration programme at Golden Progress in April 2007 which includes mapping and sampling, and up to 2000 metres of core and reverse circulation drilling.

The parent company Underworld Resources Inc. based in Vancouver Canada is headed by Mr Fleming. The other four directors are all from Vancouver.

Underworld Resources recently announced it had raised $Can1.75 million (approximately $NZ2.1 million) in an initial public offering on the TSX Venture Exchange.

The company has one wholly owned subsidiary - Underworld Resources (NZ) Ltd, which it registered in New Zealand on January 25, 2006 to hold its mineral property interests.

Source: Underworld Resources