Paterson Resources Limited provided an update on drilling progress at the Company's Grace gold-copper project near Telfer. The aim of the program is to prove up existing deposits at Grace discovered by previous drilling, testing known mineralisation along the Grace-Bemm shear zone along strike and at depth. In addition, the Company will explore for new deposits using recent geophysics with an improved understanding of the geology and ore-forming models in the highly prospective Paterson Province.

Drilling commenced with nine holes for 1,317m targeting the Parallel Range fault in the Isdell and Malu formations proximal to a known granite intrusion. The drill rig has now moved to test the continuation of mineralisation along the Grace-Bemm shear where five holes have now been completed for 832m. Early observations demonstrate Paterson is on the right track: The first indications from the drill holes targeting the Parallel Fault are highly encouraging.

All drill holes targeting the Parallel Fault have intercepted extensive shallow zones of quartz-carbonate veining with evidence of relic sulphides weathered to goethite and limonite. The rocks show disruption by potentially mineralising fluids resulting in extensive quartz-carbonate-pyrite veining, brecciation and alteration. This mineral assemblage is a key signature of gold mineralisation at the Telfer gold-copper deposit.

Additionally, in drill hole PRC0009, an intermediate intrusive was intersected between 88-102m with the lower contact containing highly disseminated sulphides (mostly pyrite) in pervasively silicified siltstones extending from 102m to 114m down hole. These observations are consistent with an Intrusive Related Gold System ore-forming model that is evolving in the Paterson Province.