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AVIRA RESOURCES LTD — Interim / Quarterly Report 2013
Apr 29, 2013
64473_rns_2013-04-29_91cca62d-d3e1-418a-bef4-f564f4af00bd.pdf
Interim / Quarterly Report
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Quarterly Report
Quarter to 31 March 2013 ASX Code: MGS
Registry: Computershare Issued Shares: 288,157,040 Tin Price: US$20,770/t Gold Price: US$1,470/oz
1% Tin Equivalent Value = 4.5 gms/tonne Au or 3%Cu
Highlights
The March quarter was a milestone quarter for MGT Resources (MGT or Company) for a number of reasons:
Mt Garnet Tin Project, Queensland
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Summer Hills Mining Lease 20547 (Summer Hills ML) was granted, �������������������������������������������������������������
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���������������������������������������������������������-take partner.
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Discovery of a new geological model for Summer Hills ML. A rhyolite porphyry dyke system was confirmed from petrographic analysis, offering MGT geologists a model with which to more fully understand the Summer Hills ML.
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Mill configured to process ore �����������������������������
Corporate
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MGT successfully listed on the ASX on 9 January 2013
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�������������������������������������������������������������� 3% to 86.48%
MGT
Resources Limited 2.05/68 York Street Sydney NSW 2000 Australia T: 61 2 9262 1122 F: 61 2 9299 5175 www.mgt.net.au [email protected]
- Cash at hand as at 31 March 2013 was $1.7 million
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1. MT GARNET TIN PROJECT, QUEENSLAND (MGT 86.48%)
Includes: Summer Hills ML20547; Mt Veteran Mill ML4349; Heads or Tails ML20655; Nymbool EPM16948
1.1 Executive Summary
Mining Lease Granted
��������������������������������������������������������������������������������������� January 2013. The Summer Hills ML����������������������������������������������������������� Project, is 1,170 Ha in area, making it one of the largest mining leases in the region. ��������� Veteran Tin Processing Plant sits within the Summer Hills ML. The mining lease was granted for a period of 21 years.
ML Contains Process Plant and Mining and Exploration Targets
Located within the Summer Hills ML is 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.
������������������������������������������������������������������������������������������������� porphyry dyke system 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.
A drilling program currently underway aims to increase the resources at both Dalcouth and Extended.
� 1.2 Operations mining and processing
During the March quarter, the mill was configured to process a batch of tailings to be trucked from the historic Smiths Creek tin mine. The ����������������������������������������������������� �������������������������������������������������������������������������������������� (see figure 2 below).
MGT expects access to this site will be dry enough by early May 2013, and would expect to begin processing within the next 3-4 months.
� 1.3 Operations sales and marketing
The first shipment of tin was sold to Taimetco International Trade Co., Limited, ���������-take partner. 17 tonnes of approximately 65% tin concentrate was shipped to a London Metals Exchange approved Asian smelter where it will be processed into 99.9% tin ingot and shipped to Taimetco in Taiwan.
Acceptance of our product by an LME approved smelter is a significant milestone as smelters have very stringent impurities requirements.
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1.4 Mt Garnet Exploration
In spite of the wet season that tends to hinder exploration, the MGT geological team produced a significant finding in the March quarter. MGT reported a discovery of a new geological model for Summer Hills ML. A rhyolite porphyry dyke system was confirmed from petrographic analysis, offering MGT geologists a model with which to more fully understand the Summer Hills ML.
Detailed geological mapping and petrography has confirmed the presence of a rhyolite porphyry dyke system in the Summer Hills ML. The porphyry dykes occur at a number of locations throughout the mining lease area and are in the process of being mapped. It is of note that a number of these sites, to date have not been tested by detailed sampling or drilling.
Of particular relevance, a dyke has been mapped along the axis of the mineralised zone at the Dalcouth prospect and corresponds well with high tin grades. Higher grades tend to occur along the interpreted boundaries of the dyke, as well as in some apparent offshoots from the main body. The presence of porphyry dykes controlling or hosting mineralisation is well known at a number of productive eastern Australian tin deposits, such as Ardlethan and Baal Gammon.
1.5 Next steps
Drilling Program
A drilling prog������������������������������������������������������������������������� within the Summer Hills ML.
At Dalcouth, identification of the porphyry dyke has allowed better targeting of highly mineralised zones. A total of 980m RC percussion and 230m of core drilling will be carried out. Drill holes have been positioned to intersect interpreted down-dip extensions of the dyke.
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� Figure 1 Drill holes planned for the Dalcouth Prospect
The model at Extended is a little different and appears to include a pipe structure which has potentially been offset. 3D modelling suggested that the mineralised zone is continuous and sub-vertical. A previous hole, X23 ended in mineralisation and promising hydrothermal alteration at depth, and will be extended with a diamond tail in this program. A number of other holes are planned to test the at-depth extension and continuity of the mineralised zone. A total of 210m RC is planned, including an RC extension of hole X21 by 50m, and a diamond tail of 30m on hole X23.
Campaign mining of ML20655
���������������������������������������������������������������������������������������������� As land dries, access will become available to the site and a small campaign of trucking and processing the ore will commence.
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� Figure 2 Trucking distance from Heads or Tails ML20655 to the Mt Veteran Mill is approximately 15km
����������������������������� King and his team have configured the mill circuit to process the tailings at a minimum rate of 10tph. At current staff levels the mill will run for 8 days at 10 hours per day, with a down time of 6 days whilst the mill crew are on a break. At this rate the ore will be processed over the course of approximately 60 days.
2. MGT CORPORATE
2.1 ASX Listing
MGT successfully listed on the ASX on 9 January 2013. 139,931,456 million shares were quoted, with a further 148,225,584 escrowed for 24 months from the date of quotation.
Almost all of the shares escrowed are held by the current MGT directors, who between them own around 49% of the company.
2.2 MGT Mining Limited
MGT increased its shareholding in MGT Mining Limited ��������������������������������������� in MGT Mining Limited to 86.48%. MGT Mining issued 13,289,074 shares to MGT Resources. MGT Mining, directly and through its wholly owned subsidiary, owns 100% of the Mt Garnet Projects, the Pyramid Gold Project and the Southern Queensland Projects.
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2.3 Cash
Cash at hand as at 31 March 2013 was $1.7 million
2.4 Tin Market Summary
Global tin supply outstripped demand in the March quarter by approximately 4,000 tonnes. This was caused by weaker global demand coupled with a rise in Indonesian exports over the preceding six month time period[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 the Mt Garnet Tin Project in far North Queensland, and on exploration on its Pyramid Gold Project near Charters Towers, Queensland.
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.
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 �������������������������������������������������������for Reporting of Exploration Results, �������������������������������������������������������������������������������������������� 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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