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ALDORO RESOURCES LIMITED — Capital/Financing Update 2019
Nov 24, 2019
64422_rns_2019-11-24_e94ec493-2b96-4c75-8f24-0bd25d2fb773.pdf
Capital/Financing Update
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Highlights
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structural interpretation of Penny South project
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2.5km strike extension of magnetic low greenstone and granodiorite assemblage known to host neighbouring Penny West project
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Target areas generally poorly tested by historic drilling
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Drilling program planned to commence once POW approved
ASX Announcement 25 November 2019 ASX Code: ARN
Board
Rhod Grivas
Non-Executive Chairman Dr Caedmon Marriott Managing Director Joshua Letcher Non-Executive Director Jeremy King Non-Executive Director
Capital Structure Shares: 51.86m Options (@22.5c): 2.0m Share Price: $0.16 Market Cap: $8.3m Cash (30/09/19): $3.71m
Aldoro Resources Limited (“Aldoro” or “Company”) is pleased to update shareholders on the completion of the interpretation and targeting work at the company’s Penny South Gold Project, undertaken by Southern Geoscience Consultants (SGC).
Interpretation of the high-resolution ground magnetic survey ( ASX, Penny South Exploration Update, 26 September 2019) has revealed 7 target areas within the Penny South tenement (E57/1045). These targets have generally either been untested or poorly tested by historic drilling.
The targets identified include over 2km strike continuation of the magnetic low corridor known to host the neighbouring Penny West and Penny North deposits (ASX:SPX, 31 May 2019) .
Based on an exploration model for Penny South the target corridor is shown to correspond to a prospective assemblage of low magnetic greenstone and granodiorite units observed to host gold mineralisation at the neighbouring Penny West project.
Aldoro has lodged a Program of Work (POW) for a 5,000m air-core (AC) drilling program for first pass drill testing of the highest priority targets, to commence as soon as possible.
Results of the Penny South Interpretation Work
The neighbouring Penny West project has been shown by Spectrum Metals to sit within a north-south trending magnetic low corridor (ASX:SPX, 31 May 2019) . Aldoro’s highresolution ground magnetic survey highlights the extension of this magnetic low corridor south from the Penny West project into Aldoro’s tenement E57/1045 (Figure 1 below).
www.aldororesources.com
T: +61 475 116 798
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2.5km strike extension of
Penny West Shear
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Figure 1: Aldoro’s ground mag RTP 1VD overlain on Spectrum Metals, ASX, 31 May 2019 image
Southern Geoscience Consultants (SGC) were engaged by Aldoro to complete a lithostructural interpretation of the ground magnetic survey area with the aid of a drill hole database, recently compiled by Aldoro, providing lithological information for the project area (further discussion on historic drilling below) ( ASX, New Exploration Strategy Taking Shape, 21 October 2019, JORC Table) .
The results of the interpretation are shown in Figure 2 below. The eastern half of the survey area is composed of strongly magnetic folded ultramafic units, whilst the western half is composed of non-magnetic and weak to moderately magnetic greenstone units against a sheared contact with the surrounding granite terrane.
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5m @ 1.11g/t Au
6m @ 1.27g/t Au
2m @ 33.98g/t Au
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Figure 2: Penny South litho-structural interpretation with targets (SGC)
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T: +61 475 116 798
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The mineralised quartz vein at Penny West and Penny North is understood to be hosted in a sheared granodiorite at the base of a mafic greenstone unit (ASX:SPX, 29 August 2019) (further discussion on Penny South exploration model below). A total of 12 holes in the Penny South drill hole database reported granodiorite intersections, all of which were in the western side of the survey area, within the magnetic low corridor, along strike from the Penny West project. Many of the other drill holes within the magnetic low corridor lack logging information.
SGC identified 7 targets within the survey area, summarised in Table 1 below.
| Target Target Type Description |
Target Target Type Description |
Target Target Type Description |
Target Target Type Description |
|---|---|---|---|
| Mag Low Corridor |
T1 | Magnetic/ Geology |
Southern extension, directly along strike, of the Penny West mine area. Some anomalous gold values in the area. |
| T2 | Magnetic/ Geology |
Granodiorite intersections (and pyrite) recorded in historic drilling. Some faulting and demagnetisation of the N-S sequence is observed around this location. Was a focus for historic RAB drilling. Directly south along strike from Penny West gold mine. |
|
| Other Target Areas |
T3 | Magnetic | Strongly demagnetised zone within ultramafc unit. Possibly alteration along fault/shear or intrusion. Poorly tested by existing drilling. |
| T4 | Structure | Dextral dilation and possible ofset in the fold axis that runs through the ultramafc sequence. Partially but poorly tested by existing drilling. |
|
| T5 | Structure | Similar to T4 - bend in fold axis through ultramafc unit. | |
| T6 | Structure | Dextral dilation in the Youanmi Shear Zone on the ultramafc contact - not tested by the existing drilling. |
|
| T7 | Magnetic/ Structure |
Possible demagnetised zone along Youanmi Shear Zone (similar to Youanmi Gold Mine area). Interpretation of demagnetised zone is difcult due to presence of magnetic cover, mainly gleaned from AMAG data. |
Table 1: Summary descriptions of Penny South targets (SGC)
Targets T1, T2 and the adjoining greenstone unit containing granodiorite occurrences within the magnetic low corridor are the highest priority targets for immediate follow up. A 5,000m AC drilling program has been planned as a first pass along this target trend.
The other target areas represent interesting magnetic or structural features, some showing similarities to the Youanmi Gold Mine area further to the north, that are often either untested or poorly tested by historic drilling. Further work is planned to interpret and prioritise these as potential drill targets.
Historic Drilling
A total of 652 historic drill holes have been identified across the Penny South tenement E57/1045; forming Aldoro’s database of the project (ASX, New Exploration Strategy Taking Shape, 21 October 2019, JORC Table) . The average drill hole depth is only 40m
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T: +61 475 116 798
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with the majority of drill holes being shallow RAB drilling (67%) and only 29 holes (4%) have been drilled deeper than 60m.
The target areas identified have generally either been untested or poorly tested by this historic drilling (Figure 2). Only 50 holes (less than 8%) have been previously drilled in the magnetic low corridor identified as the principal target area within the tenement. Of these 50 holes, 25 have associated geological logging information, of which 12 contain occurrences of granodiorite, within a mafic greenstone assemblage (target Penny West unit, as discussed further below). In general these occurrences are noted at the end of holes, i.e. only reach the top of the unit, so the unit itself is untested.
Aldoro believes the historic drilling, targeting the extension of the Penny West shear has been focused slightly too far east of what we now identify as the priority target corridor.
Exploration Model
The open pit of the Penny West Gold Mine is less than 500m from the northern boundary of Aldoro’s tenement E57/1045. The gold lode at Penny West is understood to be a 2-3m wide quartz vein hosted within a sheared granodiorite unit, near the basal contact with a less strained amphibolite (ASX:SPX, 29 August 2019) . The granodiorite unit is overlain by an assemblage of dolerite/mafic schist and ultramafic. A lower grade hanging wall lode is observed within this dolerite/mafic schist unit. A simplified exploration model for Penny South based on observations of the Penny West mineralisation is shown in Figure 3 below.
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www.aldororesources.com
T: +61 475 116 798
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The overlying dolerite/mafic schist with ultramafic assemblage in the Penny South model corresponds with the weak-moderately magnetic greenstone assemblage identified in SGC’s interpretation of Aldoro’s high-resolution ground magnetic survey. This assemblage of rock types is consistently identified in the geological logs of historic drill holes found within the weak/moderately magnetic anomaly.
The underlying granodiorite and amphibolite units correspond to the non-magnetic greenstone assemblage identified in SGC’s interpretation, forming the magnetic low corridor. This target corridor is generally poorly tested by historic drilling. The historic drilling, angled towards the west, has predominantly focused on the weak/moderately magnetic dolerite/mafic schist unit. Any holes reaching granodiorite at the end of hole have only intersected the top of this unit and not tested the basal contact with the amphibolite unit, the target horizon of the Penny West lode. The numerous anomalous gold results identified by historic drilling at Penny South within a mafic schist unit (e.g. Figure 2: 2m @ 33.98g/t Au, 6m @ 1.27g/t Au and 5m @ 1.11g/t Au) (ASX, New Exploration Strategy Taking Shape, 21 October 2019, JORC Table) could be interpreted to mostly have intersected the lower grade hanging wall lode in the Penny West model.
Planned Drill Program
Aldoro has planned a 5,000m AC drill program to test the entire strike length of the target magnetic low corridor, with approximately 100 holes of 50m depth on 100m x 25m spacing. This first pass program aims to identify potentially shallow, previously unidentified gold mineralisation and/or equally as important, occurrences of granodiorite with associated pathfinder elements, indicative of a mineralised system, that would warrant deeper follow up drill testing. Aldoro has lodged a POW for this drill program that the company hopes to commence as soon as possible.
For further information:
Caedmon Marriott
Managing Director Aldoro Resources Ltd T: +61 475 116 798 E: [email protected]
www.aldororesources.com
T: +61 475 116 798
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About Aldoro Resources
Aldoro Resources Ltd is an ASX-listed (ASX:ARN) mineral exploration and development company. Aldoro has a collection of gold and nickel focussed advanced exploration projects all located in Western Australia. The company’s flagship gold project is the Penny South Gold Project, which is contiguous to Spectrum Metals (ASX:SPX) Penny West Project in the Youanmi Gold Mining District, in the Murchison Region of WA. Aldoro is also currently exploring the Cathedrals Belt Nickel Project and has a significant tenement holding surround St George Mining’s (ASX:SGQ) Mt Alexander Project. The company’s other projects include the Narndee Igneous Complex (Ni-CuPGM), Unaly Hill South (Au), Kiabye Well (Au), Leinster Nickel Project (Ni), Windimurra Igneous Complex (Ni-Cu-PGM, Li), Ryans Find (Ni-Cu-PGM) and Karlgarin (Ni-Co).
Competent Persons Statement
The information in this announcement that relates to Exploration Results and other technical information complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under the supervision of Rhod Grivas, a Director of Aldoro Resources Ltd. Rhod is a Member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Rhod consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Disclaimer
Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Aldoro operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Aldoro’s control.
Aldoro does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Aldoro, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.
This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Aldoro. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.
www.aldororesources.com
T: +61 475 116 798