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AVIRA RESOURCES LTD — Interim / Quarterly Report 2013
Oct 28, 2013
64473_rns_2013-10-28_69e6a9da-f068-4fd6-b007-37820693704a.pdf
Interim / Quarterly Report
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QUARTERLY Quarterly REPORT Report
September 2013 Quarter to 30 September 2013
ASX Code: MGS ASX CODE MGS
Registry: Computershare REGISTRY Issued Shares: 288,157,040 Computershare
Highlights
Tin Price: US$19.365/t SHARES ON ISSUE Gold Price: US$1,336/oz 288,157,040
Summer Hills Drilling Campaign Better than Expected
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Phases one and two delivered better than expected results; consistent with the new geological model
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Multiple high-grade tin intercepts at the Dalcouth Prospect which is less than 500 metres from MGT’s Mt Veteran Tin Processing Plant
Tin Price: US$23,225/t Gold Price: US$1,352/oz
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Mineralised zones at shallow depths suggest significant savings on extraction costs
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Phase Three drilling already completed and assay processing underway
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Dalcouth remains open at depth and laterally in three directions
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Results from initial phases of drilling have encouraged drilling at Dalcouth right up to the wet season
Corporate
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Increased ownership in MGT Mining to 89.48%
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Cash in bank as at 30 September 2013 $5.78 million
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Shareholders approved $6 million in convertible note securities
Photo above – drilling at the Dalcouth Prospect
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MGT
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Resources Limited MGT 2.05/68 York Street Resources Limited Sydney NSW 2000 2.05/68 York Street Australia Sydney NSW 2000 Australia T: 61 2 9262 1122 F: 61 2 9299 5175 T: 61 2 9262 1122
F: 61 2 9299 5175 www.mgt.net.au [email protected] www.mgt.net.au ABN: 38 131 715 [email protected]
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1. MT GARNET TIN PROJECT, QUEENSLAND (MGT 89.48%)
Includes: Summer Hills ML20547; Mt Veteran Mill ML4349; Heads or Tails ML20655; Nymbool EPM16948
1.1 Mt Garnet Tin Project Exploration
MGT Resources Limited (‘MGT’ or ‘Company’, ASX:MGS) has completed three phases of the scheduled drilling at Summer Hills, the primary mining lease at the Company’s Mt Garnet Tin Project, located in far north Queensland. Results from Phase Two were announced to the market on 27 August 2013, including significant high-grade tin mineralisation intersected within 45 metres from surface at the Dalcouth prospect.
Phase Three drilling is also complete, with laboratory assay results pending. On site XRF analysis has assisted with planning a fourth phase of drilling, in order to utilise the rest of the ‘dry season’, before expected rains come around November/December.
The Summer Hills campaign is designed to expand and update the tin resource estimate at the Dalcouth prospect in order to provide feed for the Mt Veteran tin processing plant (‘Plant’), which is around 500 metres from the Plant.
Phase Two drilling produced better than expected results, including some of the best results achieved by MGT at Dalcouth to date.
Phase Two was comprised of 23 RC percussion holes (1035m). Phase One constituted five diamond drill holes and the results from those holes were previously announced to the ASX on 26 June 2013.
Drilling Objectives
The aim of the Phase Two drilling at Dalcouth was threefold:
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to continue to test extension of mineralisation downdip (to the southwest) from earlier intersections, where the rhyolite porphyry dyke is projected to dip;
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to test extension of mineralisation along strike to the northwest; and
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to test a potential parallel zone to the northeast of the main mineralised zone.
The Dalcouth mineralisation remains open to the northwest and downdip to the southwest, as well as to the northeast in a potential parallel zone which may be connected at depth to the main mineralised zone.
Best Intersections
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Significant tin intersections including:
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4m @ 2.24% Sn from 19m, including 1m @ 5.88% (DAL99)
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8m @ 1.1% Sn from 11m, including 1m @ 2.35% (DAL105)
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8m @ 0.56% Sn from 38m, including 1m @ 1.09% (DAL107)
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6m @ 1.2% Sn from 42m, including 1m @ 3.34% (DAL113)
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3m @ 1.78% Sn from 16m, including 1m @ 5.03% (DAL114)
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3m @ 1.68% Sn from 57m, including 1m @ 4.37% (X21)
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Possible Extensions To Mineralisation At Dalcouth Open In Three Directions
Assay results from Phase Two of the drilling program suggest that mineralisation is still open in three directions:
Mineralisation to the Southwest
A number of drill holes targeting the downdip projection of the rhyolite porphyry dyke (~60 degrees to the southwest) returned multiple positive intersections, including DAL101 (3m @ 0.35% Sn), DAL103 (1m @ 0.55% Sn), DAL107 (8m @ 0.56% Sn), DAL113 (6m @ 1.2% Sn) (see figure 2), DAL115 (10m @ 0.28% Sn) and DAL116 (6m @ 0.34%). Intersections indicate that the mineralised zone potentially dips in that direction, sub-parallel to the dyke.
Mineralisation to the Northwest
Rhyolite has been mapped to the northwest along strike from the main mineralised zone and a zone of intense alteration continues in this direction. Two holes were drilled to test this extension, DAL116 and DAL117. DAL116 produced positive results, an intersection of 6m @ 0.34% Sn and a number of other short intersections >0.1% Sn. DAL117 gave poor results, with only a metre intersection above 0.1% at the bottom of the hole. Results from Phase Two suggest that to the northwest, the rhyolite dyke may strike west-northwest rather than northwest, and if so, this hole will have missed that mineralised zone.
Mineralisation of the Northeast Parallel Zone
Two holes (DAL114 and DAL106 – see fig. 2 and 3) were designed to test the postulated northeast parallel zone; a potentially mineralised, sub-parallel structure. These holes returned encouraging results, in particular DAL114, with a one metre intersection of very high grade (5.03% Sn). Drilling results indicate that this zone is mineralised.
1.2 Plant Upgrade
Plans are underway to upgrade the Mt Veteran Tin Processing Plant capacity when sufficient JORC resource targets at Summer Hills have been met.
Initial plans to increase capacity to 250,000 tpa include an enlargement of the current tailings dam and geotechnical work on the processing plant.
1.3 Next steps
Results Encourage Extension of Drilling Program
Phase Three of the program was recently completed with assay results pending. Initial in-house XRF assays have encouraged MGT geologists to progress to a fourth Phase of the drilling program which has already commenced.
The focus remains on shallow depths to keep extraction costs low and to provide short term cash flow from mill production.
MGT is also in the final stages of submitting a Level 1 Environmental Authority Application with the Department of Environment Heritage Protection. This represents the final regulatory process required for MGT to upgrade its current mill to 250,000 tpa.
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2. MGT CORPORATE
2.1 $6 million in Convertible Notes Approved by Shareholders
An extraordinary general meeting of shareholders (EGM) was held on 13 August 2013 where shareholders approved A$6 million in convertible note securities.
2.2 Placement taken up in MGT Mining Limited
A placement of new ordinary shares in MGT Mining Limited to the Company takes MGT’s total shareholding in its subsidiary to 89.48%. MGT Mining Limited and its wholly owned subsidiary Garimperos Pty Limited own 100% of the Mt Garnet Project, Pyramid Gold Project and Southern Queensland Projects.
2.3 Cash
Cash at hand as at 30 September 2013 was $5.78 million.
2.4 Tin Market Summary
The tin price rose slightly in the quarter to September 2013 to around $23,000 per tonne. Tin has been identified by a number of brokers’ reports as being the metal most likely to experience a price rise over the next twelve months.[1]
ENDS
For more information:
Investor and media enquiries:
Alexander Moody
Company Secretary
T: +61 2 9262 1122 [email protected]
ABOUT MGT RESOURCES
MGT is an Australian mining and exploration company listed on the Australian Securities Exchange (ASX:MGS) focused on tin mining at the Mt Garnet Tin Project in far North Queensland, and on exploration of its Pyramid Gold Project near Charters Towers and its Southern Queensland Gold Project near Gayndah.
The Mt Garnet Tin Project is located in the historic Herberton Tin Fields, 3 hours west of Cairns in Queensland. Dams, roads, power, water and stage 1 plant upgrade to 70,000 input tonnes per annum is now complete.
ABOUT THE MT GARNET TIN PROJECT
MGT’s flagship Mt Garnet Tin Project is 3 hours’ drive south west of Cairns in far North Queensland.
1 CRU International Ltd, ‘CRU Monitor: Tin’ October 2013
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MGT’s primary mining lease Summer Hills ML20547 (Summer Hills ML) was granted in late January 2013. The Summer Hills ML, the main tenement on MGT's flagship Mt Garnet Tin Project, is 1,170 Ha in area, making it one of the largest mining leases in the region. The mining lease was granted for a period of 21 years.
ML Contains Mill And Mining And Exploration Targets
Within the Summer Hills ML sits the Mt Veteran Tin Processing Plant on its own ML4349, along with a number of tin mining and exploration targets, including the Dalcouth and Extended prospects.
Dalcouth is MGT’s first open pit mining target. Recent petrographic reports confirmed the presence of rhyolite porphyry dykes throughout the ML, and present within the Dalcouth resource.
Grades of up to 15.75% tin have been intersected at Extended. For investors unfamiliar with tin, 1% tin is approximately equivalent in value terms to 4.5 grams per tonne of gold, or 3% copper.
Competent Persons statement
Information in this report related to exploration results or mineral resources are based on information compiled by MGT technical staff and checked by Max Rangott of Rangott Mineral Exploration Pty Ltd, who is a member of both the AIG and the AusIMM. Mr Rangott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘ Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’. Mr Rangott consents to the inclusion in the report of the statements based on the information in the form and context in which it appears.
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Appendix 5B
Mining exploration entity quarterly report
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