ASX ANNOUNCEMENT 1 August 2016 ASX Code: BDR HIGH GRADE EXPLORATION RESULTS CONTINUE
  • Tap AB1 Trough Lode high grade oxide results: F02049 14 m @ 6.56 g/t from 94 m and 26 m @ 11.61 g/t from 118 m to BOH F02060 10 m @ 4.59 g/t from 48 m and 32 m @ 6.07 g/t from 68 m including 4 m @ 31.91 g/t from 78 m
  • Tap AB2 Trough Lode high grade oxide results: F02015 31 m @ 14.02 g/t from 95 m including 14 m @ 26.45 g/t from 97 m F02023 25 m @ 9.92 g/t from 122 m including 6 m @ 37.11 g/t from 124 m
  • Tap AB Sul high grade results indicate new lode potential: F01970 27 m @ 2.78 g/t from 69 m
  • Duckhead Main Lode results in fresh rock below oxide open pit reserve: FVM560 48 m @ 11.62 g/t from 66 m including
3 m @ 87.79 g/t from 97 m and 4 m @ 49.1 g/t from 124 m FVM561 10 m @ 13.81 g/t from 81 m

Beadell Resources Limited ("Beadell" or "the Company") is pleased to announce the receipt of new high grade drilling results from the Tap AB and Duckhead Mine areas at its 100% owned Tucano mine in Brazil (Figures 1-3, Table 1).

Beadell Resources Limited

Second Floor, 16 Ord Street, West Perth 6005, Western Australia

ABN 50 125 222 291 PO Box 542, West Perth 6872, Western Australia

www.beadellresources.com.au Telephone: +61 8 9429 0800 | Facsimile: +61 8 9481 3176

The exploration program at Tucano continues to deliver significant high grade results. Importantly we are now seeing high grade results from numerous parts of the existing mine corridor.

Figure 1. Tap AB - Tap D plan showing location of new drill results

TAP AB1 Trough Lode

Ongoing resource definition and extension drilling of the high grade Tap AB1 Trough Lode continues to improve and grow the mineralised envelope within and below the reserve pit limit.

A significant result below the reserve open pit was intersected of 14 m @ 6.56 g/t from 94 m and 26 m

@ 11.61 g/t from 118 m to BOH, including 9 m @ 27.92 g/t from 126 m. The Tap AB1 Trough Lode remains open down plunge to the north where further drilling is planned. The bottom of oxidation in this lode has yet to be reached.

An exceptional resource definition result was also intersected, drilled west to east, intersecting 10 m @

4.59 g/t from 48 m and 32 m @ 6.07 g/t from 68 m including 4 m @ 31.91 g/t from 78 m.

Other results include a recently discovered new lode (Tap AB1 Central Lode) wholly within the banded iron formation ("BIF") west of the Tap AB1 Trough Lode (Figure 1). Results include 13 m @ 4.30 g/t from 64 m and 24 m @ 3.16 g/t from 72 m. This new zone is likely to be a parallel BIF hosted lode as occurs in others areas of the Tap AB orebody. Drilling is ongoing and the discovery of another lode within the mine corridor consolidates our belief that the whole Tucano mining lease is underexplored.

Tap AB2 Trough Lode

Resource definition drilling of the Tap AB2 Trough Lode continues to enhance the resource below the open pit reserve. Oxide results of 31 m @ 14.02 g/t from 95 m including 14 m @ 26.45 g/t from 97 m and 25 m @ 9.92 g/t from 122 m including 6 m @ 37.11 g/t from 124 m bode well for future resource/reserve additions and the likely deepening of the open pit. Additional drilling is being planned.

Figure 2. Tap AB1 & 2, AB Sul composite longsection showing location of new results

Tap AB Sul

Tap AB Sul is located 500 m south of the Tap AB1 Trough Lode on the same BIF contact. Previous drilling in this area had identified strong gold mineralisation disrupted by cross cutting pegmatite sills. A significant new result has been received of 27 m @ 2.78 g/t from 69 m and remains open at depth. Follow up drilling is being planned.

Duckhead

A drilling program has just been completed from the current base of the Duckhead pit comprising 25 holes for 2,233 m. The drilling was designed to finalise all grade control to the bottom of the current pit cut back and test below the current open pit reserve for extensions of the high grade Main Lode. The final portion of the existing Duckhead pit is currently being mined.

High grade results have been received on the eastern footwall zone of the Main Lode suggesting that the predominant plunge of the Main Lode at depth is in this direction. A stand out result of 48 m @ 11.62 g/t from 66 m including 3 m @ 87.69 g/t from 97 m and 4 m @ 49.1 g/t from 124 m is located 60 m below the base of the current open pit cutback. This result and others in this area including 10 m @

13.81 g/t from 81 m are hosted within fresh rock. These are the first indications that a significant high grade lode exists in fresh rock below the Duckhead pit. If the high grades that have been found in the steeply dipping highly oxidised zones at Duckhead continue in the fresh rock at depth then there exists the potential for a very high grade underground development. Additional drilling is being planned.

Figure 4. Duckhead Main Lode longsection showing location of new drill results.

Commenting, Simon Jackson, CEO and Managing Director said: "Our exploration program continues to have success as we work towards our aim of increasing the quality and quantity of reserves at Tucano. The AB1 and AB2 Trough Lodes remain 100% oxide as we continue to follow the high grade mineralisation down plunge. At Duckhead, we have intersected a significant high grade extension to the Main Lode in the fresh rock. This is very exciting as it raises the possibility of future high grade underground development."

Beadell Resources Limited published this content on 01 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 July 2016 23:48:04 UTC.

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