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UXA Resources (ASX: UXA) is starting to reap the dividends from some very strategically well positioned projects in the Stuart Shelf, which is in the Olympic Dam / Prominent Hill region of South Australia.

At the Stuart Shelf project joint venture, the new discovery of 32 metres at 0.36% copper from Glenside represents one of the best IOCG exploration holes within the area in recent years.

Highlighting the prospectivity of the area, the Glenside tenement lies 50 kilometres southeast of BHP Billiton's (ASX: BHP) Olympic Dam mine and 40 kilometres northwest of OZ Minerals' (ASX: OZL) Carrapateena copper-gold deposit.

The first drill hole at Glenside returned strong geochemical results from broad zones of visible copper mineralisation. Further exploration upside is that the copper anomalism continues to the bottom of the drill hole.

The three main mineralised intersections, although not continuous, combined amount to 96 metres at 0.21% copper.

Silver and gold values are intermittently anomalous throughout, particularly in the upper mineralised zones, with peak values of 1 metre at 14.7 parts per million silver and 0.37 parts per million gold from 1,150 metres.

A strong indicator of the potential for an IOCG style system at the Stuart Shelf Project is the associated rare earth elements cerium and lanthanum, which are also anomalous throughout the mineralised zones.

Peak intervals of 2 metres at 1,940 parts per million cerium and 1,400 parts per million lanthanum from 1,150 metres were discovered.

Russell Penney, managing director, commented on the positive discovery: "The Glenside project offers considerable scope for follow up with a large area of geophysical anomaly to be tested."

Penney recently discussed the Stuart Shelf project at the "Stars in 2012 Series" Forum, where he highlighted the first mover advantage UXA Resources has in the area.

Importantly - these results now validate the comments and will no doubt raise the eyebrows of the majors in the area.

The next exploration steps

The drill hole at Glenside is the second of three holes planned as part of the 3,600 metre drilling program.

The hole was drilled on a large combined gravity and magnetic feature at Glenside, where earlier drilling by WMC intersected anomalous copper mineralisation of 6 metres at 0.37% copper from 1,140 metres.

What is important about these latest assays from UXA is the considerably stronger zone of mineralisation intersected when compared to the earlier WMC hole.

The third hole, drilled at the Oak Dam tenement, has been completed and assays are expected for this hole in about four weeks.

Stuart Shelf joint venture with Straits Resources

Stuart Shelf comprises nine tenements covering 3,300 square kilometres, located in the same iron oxide copper gold prospective area as Olympic Dam, which produces copper, gold, silver and uranium, and the Prominent Hill copper gold mine.

An expansion is underway at Olympic Dam to increase copper production to more than 750,000 tonnes per annum, from 180,000 tonnes per annum, while Prominent Hill production in 2012 is expected to be 100,000-110,000 tonnes of copper and 130,000-150,000 ounces of gold.

The Stuart Shelf project licences are subject to a joint venture agreement with Straits Resources (ASX: SRQ), which has the right to earn a 70% interest in the tenements by spending A$10 million on exploration over seven years.

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Augur Resources (ASX: AUK) is set to realise the value of the company's non-core Yeoval Project in New South Wales, with a Farm-in by partner Zodiac to progress.

The Yeoval Project covers 147 square kilometres, and is prospective for porphyry copper-gold and molybdenum mineralisation, epithermal gold and silver mineralisation and magnetite rich copper-gold mineralisation.

It includes the Yeoval Porphyry deposit, which hosts an Inferred JORC Resource of 12.9 million tonnes at 0.38% copper, 0.14% gold, 120.1 parts per million molybdenum and 2.2 grams per tonne silver.

The resource remains open at depth, to the east and to the south.

Under the modified terms of the Farm-in agreement for Yeoval, Zodiac will pay $245,000 cash to Augur and transfer 1.25 million shares in Goodrich Resources (ASX: GRX), at a price of $0.20 per share.

In addition, Zodiac can pay $2 million to take up Augur's remaining 25% share in the Yeoval Project during the Farm-in period.

Augur will be free carried on the project for a further two years. Following the Farm-in period, the company can choose to contribute 25% to expenditure on the project, or progress to a free-carried net smelter royalty of 2.5%, limited to $2 million.

The Farm-in agreement with Zodiac will allow Augur to focus its attention on its more advanced projects, which form the core of the company's strategy.

These include the company's flagship Wonogiri project in Indonesia, which recently returned favourable metallurgical results from simple flotation testing.

Mineralisation from the Randu Kuning porphyry deposit returned high recoveries of up to 89% gold and 93.4% copper.

Augur has a 51% stake in the project and is working to earn 80% of the project by spending $2 million on exploration and development by early December 2012.

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Breakaway Resources (ASX: BRW) is successfully proving the size potential of its Sandy Creek prospect with seven out of 10 reverse circulation holes drilled intersecting further visible copper mineralisation within both the Main and Western zones.

The mineralisation on the Main zone now extends over 700 metres strike to 150 metres deep and mineralisation on the Western zone extends over 190 metres to 150 metres deep.

Importantly, both zones have good extensional potential and could lead to a second large zone of open pitable, near surface mineralisation at Sandy Creek.

The down-hole widths of the visible copper sulphide mineralisation range from 3 to 27 metres.

The new intersections lie down plunge and along strike from existing mineralised intercepts in both the Main and Western zones.

Current drilling is targeting a strong down-hole electromagnetic conductor, which potentially represents a high grade shoot or core within the prospect's Main zone of copper-gold mineralisation.

In addition, it is also testing the extensional potential of the newly discovered Western zone.

This round of drilling is critical to determining the strategic direction of ongoing exploration and evaluation of the Sandy Creek copper-gold discovery.

Sandy Creek represents the most immediate opportunity for Breakaway, and the current drilling program is designed to demonstrate the prospect's economic potential.

Highlighting the high grade, near surface nature of Sandy Creek, assays from Breakaway's 2011 drilling program delivered intersections of:

- 1 metre at 6.23% copper, 0.52 grams per tonne (g/t) gold and 23g/t silver from 65 metres;
- 2 metres at 4.64% copper, 0.69g/t gold and 46.3g/t silver from 44 metres; and
- 2 metres at 2.08% copper, 5.23g/t gold and 8.3g/t silver from 37 metres.

These high grade results were also supported by broader intercepts, including 45 metres at 0.66% copper, 0.14g/t gold and 2.7g/t silver from 36 metres.

Further exploration upside stems from the discovery of a new offhole electromagnetic conductor at the southern end of the Main zone interpreted to lie beneath and slightly south of a drill hole that underwent down-hole electromagnetic surveying.

This may represent a down dip extension to the existing mineralisation in the vicinity of the surveyed drill hole.

Sandy Creek forms part of the Eloise Exploration Project in the world class Cloncurry Mineral District, 70 kilometres southeast of Cloncurry.

The project tenements surround FMR Investments' Eloise copper mine, where mining operations re-commenced last year and are about 100 kilometres south of Xstrata Copper's Ernest Henry mine.

First assays are scheduled for release in mid-June.

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