Cohiba Minerals Limited announced that re-logging of core and a technical review of the zinc assays from PSDDH01 at the Pernatty C Project indicates that there is good potential for a significant zinc deposit in the area. Significant zinc intersections in Pernatty C drill hole PSDDH01 relate to the newly described `Giles Waterhole Fault', a collection of low-angle, normal-fault controlled calcite-sphalerite fault-veins and spur-veins which control the significant intersections, and a calcite-sphalerite stockwork pervading away from this fault set. A broad alteration halo of K-feldspar and epidote extends away from the Giles Waterhole Fault, indicating sustained fluid flow at the time of mineralisation.

Zinc grades are within economically acceptable ranges, only requiring an increase in size. Zinc grades are well above anomalism expected from a grass-roots exploration hole. Zones of strong disseminated sphalerite within strong epidote-chlorite altered wall rock open the possibility for bulk mineralisation.

Indications are that PSDDH01 has intersected part of a larger mineralised system, with the possibility of being peripheral to a significant deposit. The magnetic anomaly, whose source was not intersected is likely to be related to the mineralisation. If the magnetic anomaly is due to an intrusion then a manto-style target could exist in the surrounding sediments.

Alternatively, the magnetic anomaly relates to chlorite-magnetite alteration and could relate to stronger alteration, which as observed in PSDDH01 may be correlated with disseminated (and hence bulk) mineralisation. Modelling of the geophysical magnetic anomaly has generated targets to follow up on. Pernatty C lies along strike of the Punt Hill area, which has been subject to intense mesothermal alteration, and includes Monax Mining Ltd.'s best drill intercept of 122m @ 0.47% Cu, 0.38% Zn, 6.6g/t Ag and 0.1g/t Au in hole GHDD4 at their Groundhog Prospect1.

It is conceivable that intense alteration at Punt Hill mobilizes zinc, which is then deposited at the margins of this alteration at Pernatty C. The large difference in geology between PSDDH01 and PSDDH02, is inferred to be due to a branch of the regionally significant Elizabeth Creek Fault, which the geophysics also indicates as bisecting the magnetic target. Magnetic highs forming the target of drilling were not intersected indicating that this target zone remains untested.