Adamus Resources Limited - High grade gold intersections at Kanyankaw

Highlights

- RC drilling intersects high-grade gold mineralisation
- Best results include 1m at 108g/t Au
- New mineralised trends identified
- Potential for shallow open pit mineral resources


PERTH, Western Australia, Dec. 1, 2011 /CNW/ - Adamus Resources Limited is pleased to announce that its ongoing exploration program has returned positive results from the recent RC drilling program at its Kanyankaw project (22km east of the Nzema Gold Project), located between Tarkwa and the port town of Takoradi.

This work, which has revealed high-grade gold intersections, continues to reinforce Adamus' strategy of developing regional exploration targets to provide additional oxide mineral resources that can be delivered to the Nzema processing plant by road transport.


Best intersections include:

     ______________________________________________________________
    |KNRC005|2m @ 13.24g/t Au from 72m                             |
    |_______|______________________________________________________|
    |KNRC018|2m @   9.98g/t Au from 27m                            |
    |_______|______________________________________________________|
    |KNRC008|6m @ 18.65g/t Au from 61m (Includes 1m @ 108g/t Au)   |
    |_______|______________________________________________________|
    |KNRC004|2m @ 30.21g/t Au from 22m (Includes 1m @ 59g/t Au)    |
    |_______|______________________________________________________|
    |KNRC006|2m @ 19.32g/t Au from 76m (Includes 1m @ 37.92g/t Au) |
    |       |2m @ 16.05g/t Au from 111m (Includes 1m @ 31.12g/t Au)|
    |_______|______________________________________________________|

Adamus Managing Director Mark Connelly said: 'This is very significant as it indicates there may be potential for us to extend the project's current 10 year mine life. We are continuing to run an aggressive exploration program on near-mine targets as a key component of our strategy to increase the Nzema Gold Project's mineral resource base.'

In July 2011, Adamus drilled 25 RC holes at Kanyankaw for a total of 2806m to in-fill drill coverage along the Tribute Vein, and to test an area of quartz veining with small scale mining to the southeast.

Gold mineralisation is associated with numerous narrow quartz veins that strike northeast and dip moderately steeply to the northwest. The veins are hosted by a thick sequence of mafic volcanic rocks that has been deeply weathered to a depth of 80-100m. The laterite profile has been eroded by streams leaving flat topped hills surrounded by rugged terrain with deeply incised valleys where the laterite has been largely removed.

Although narrow, the quartz veins commonly contain very high grades with carbonate-pyrite alteration extending into the sheared mafic wallrocks. At the Tribute Vein the quartz vein sets show continuity over ~800m in a zone 50 to 100m wide. In-fill drilling confirmed previous results but also intersected several new parallel zones providing encouragement for further discoveries in the area. KNRC008 located just southeast of the Tribute Vein intersected two narrow high-grade veins containing 1m @ 19.82g/t Au from 19m and 1m @ 108g/t Au from 63m. RC drilling also intersected high-grade quartz veins at the second target area to the southeast where there is abundant evidence of mining over an extended period including a two compartment shaft. KNRC004 intersected 1m @ 59g/t Au from 24m and KNRC006 intersected 1m @ 37.92g/t from 77m and 1m @ 31.12g/t Au from 111m.

Additional RC drilling is planned to determine the strike continuity of the high-grade veins and their lateral spacing at both the Tribute Vein and several new targets to the southeast. Although narrow, the high grade of the mineralisation highlights the potential for open pit mineral resources.


History

There has been a long history of gold mining at Kanyankaw with the first documented production by the Portuguese in the 16(th) century. Between 1904 and 1953 gold was produced by colonial companies from small shafts and adits. Modern exploration commenced in the mid-1980s with systematic soil sampling, mapping and drilling resulting in the discovery of the Tribute Vein, a northeast trending vein set. The best drill intersection from the Tribute Vein is 6m @ 9.54g/t Au. Reconnaissance work led to a second area of quartz veining 750m to the southeast. Sampling of road cuttings near this area returned results of 24m @ 1.45g/t Au and 18m @ 1.48g/t Au.


ADAMUS RESOURCES LIMITED

(signed) Mark Connelly
Managing Director/CEO



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Caution Regarding Forward Looking Information.

Certain statements included in this announcement, including information regarding Adamus' plans with respect to its mineral properties, constitute forward-looking information. Forward-looking information includes, among other things, statements regarding expected operations. Forward-looking information is based upon a number of estimates and assumptions made by the Company in light of its experience, current conditions and expectation of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable by the Company, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Investors are cautioned that forward-looking information is no guarantee of future performance and accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/



CONTACT:

Adamus Resources Limited
Mr Ian Cunningham - Company Secretary
on 61 8 9322 5943