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BARYS RESOURCES LIMITED — Capital/Financing Update 2014
Mar 13, 2014
64567_rns_2014-03-13_db192c63-f060-4e76-8a30-407f14e66bb4.pdf
Capital/Financing Update
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UP TO 17.20% COPPER IN DETAILED SAMPLING CONFIRMS CONTINUOUS HIGH GRADE COPPER ZONE AT EL ROBLE
ASX ANNOUNCEMENT
14 March 2014
Perth-based copper developer Mining Group Limited (ASX: MNE) is pleased to announce recent results from follow-up due diligence channel sampling at the Paraguay underground mine at its El Roble Copper Project in Chile.
Highlights
- Follow-up close-spaced channel sampling at the Paraguay underground mine confirms and delineates high-grade copper zone.
Results include:
-
2.10m @ 6.89% Cu, 0.57g/t Au, 2815ppm Co and 16.36% Fe including 1.50m @ 8.59% Cu, 0.69g/t Au, 3657ppm Co and 13.30% Fe and 0.5m @ 17.20% Cu, 0.88g/t Au, 3230ppm Co and 13.70% Fe.
-
1.50m @ 6.92% Cu, 0.40g/t Au, 4103ppm Co and 14.93% Fe including 1.00m @ 9.74% Cu, 0.39g/t Au, 3120ppm Co and 12.90% Fe.
-
Close-spaced channel sampling results confirm grade continuity at Paraguay over 30m along strike and delineation of a high-grade copper zone.
Paraguay Close-Spaced Sampling Results
Mining Group has an exclusive option to acquire up to 90% of the El Roble Copper Project (“Project”), which is located in the iron oxide copper gold (IOCG) Coastal Cordillera Belt of Chile, approximately 30km from the Chilean port of Caldera. The Project covers approximately 6,000ha and is currently being actively mined on a small scale by the owner. Ore is treated at one of the two toll treatment plants located within 80km by road of the Project.
As part of the Company’s ongoing assessment of the Project, the Paraguay underground mine has been identified as a high-priority area following initial high-grade copper samples (refer ASX announcement 18 February 2014). The Paraguay mine is located approximately 1km south west of the Panga mine, for which the Company has signed a production agreement and is currently assessing the viability of commencing mining for copper.
The recent results demonstrate the formation of distinct high-grade copper zones along the strike of the mineralised vein at Paraguay, providing further confidence that potentially mineable zones of high-grade copper mineralisation form within the vein system.
The Paraguay vein is currently accessed via the installation of along-strike drives (underground tunnels) with typical dimensions of 2.20m in height by 2.20m in width. Samples are taken of in-situ rock across the exposed vein in the backs (roof) of the tunnels, in conjunction with geological mapping.
==> picture [595 x 16] intentionally omitted <==
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Commenting on the results from Paraguay, Mining Group Managing Director, Mr Zeff Reeves said: “This closespaced sampling has been very effective in delineating a strike-continuous, high-grade zone of copper mineralisation at Paraguay, displaying grades and widths well in line with what we can potentially mine at El Roble.
“The Paraguay vein has been exploited by the owner of the concession on a very small scale, on a single level. There appears to be significant potential to expand this underground area both along strike and deeper to expose more high-grade copper zones, especially considering current underground workings at Paraguay extend only 80m along the 30km of prospective veins already mapped.
“This sampling provides us with further confidence that the veins do thicken, in conjunction with some very healthy copper grades, which justifies our strategy of beginning mining at the Project on a small scale in the very near future,” Mr Reeves said.
Paraguay Sampling
As part of its ongoing assessment of numerous potential mine areas across the Project, the Company has undertaken systematic sampling, mapping and surveying of the numerous, small underground tunnels and historic workings across the property. As part of this work, the Paraguay mine has been identified as a high priority target that has been sampled using closed-spaced underground channels.
This work is being undertaken to gain geological knowledge of ore controls within the El Roble vein system and to systematically assess areas for the Company’s potential mining operation.
Results from the close-spaced sampling have delineated a high-grade zone of mineralisation over 40m long within the mine drive, demonstrating the pinch and swell nature of the mineralisation.
Channels were spaced at 2.5m intervals along the drive and installed approximately perpendicular to the strike of the vein. The close-spaced nature of the sampling has been very effective in delineating the highgrade mineralisation.
The Paraguay mine consists of a single, approximately 80m long, strike drive, following the mineralised vein, which is the south west extension of the Panga vein, approximately 1km to the north east.
Next Steps
Mining Group is negotiating access to mine at Paraguay with the current owner, who also owns the Panga concession where the Company has already signed a production agreement. The Company intends on signing a production agreement, following which it will submit the appropriate applications to gain an operating licence permitting it to extract up to 5,000 tonnes of copper-bearing rock per month and commence further underground assessment work.
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==> picture [440 x 303] intentionally omitted <==
Figure 1 – Overview satellite image of El Roble Project showing location of the Paraguay mine along strike from the Panga mine. Red lines are interpreted major mineralised structures, white lines secondary mineralised structures. Grid is 1km x 1km.
==> picture [451 x 292] intentionally omitted <==
Figure 2 – Plan view of the Paraguay mine showing recent high grade results in red. Results in blue announced to ASX on 18 February 2014.
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| Hole_ID | Depth_From | Depth_to | Interval | Cu % | Auppm | Coppm | Fe % | Moppm | Comments |
|---|---|---|---|---|---|---|---|---|---|
| RCPCH00351 | 3.70 | 4.20 | 0.50 | 2.52 | 2.32 | 1710 | 33.90 | 170 | |
| RCPCH00353 | 0.40 | 2.10 | 1.70 | 3.59 | 0.57 | 332 | 13.96 | 77 | |
| RCPCH00353 | 0.40 | 1.10 | 0.70 | 8.19 | 1.65 | 410 | 22.20 | 190 | Incl |
| RCPCH00354 | 0.00 | 1.00 | 1.00 | 2.29 | 0.30 | 200 | 17.99 | 70 | |
| RCPCH00357 | 3.20 | 3.70 | 0.50 | 2.68 | 0.02 | 9390 | 5.39 | 50 | |
| RCPCH00360 | 0.40 | 2.20 | 1.80 | 2.85 | 0.53 | 3190 | 13.05 | 103 | |
| RCPCH00361 | 0.00 | 1.00 | 1.00 | 2.43 | 0.21 | 3920 | 6.08 | 50 | |
| RCPCH00362 | 0.50 | 2.00 | 1.50 | 6.92 | 0.40 | 4103 | 14.93 | 143 | |
| RCPCH00364 | 0.40 | 2.50 | 2.10 | 1.44 | 0.65 | 1296 | 18.90 | 105 | |
| RCPCH00365 | 0.80 | 2.20 | 1.40 | 4.02 | 0.65 | 4574 | 15.59 | 125 | |
| RCPCH00366 | 0.40 | 2.40 | 2.00 | 1.64 | 0.24 | 564 | 15.11 | 106 | |
| RCPCH00367 | 0.00 | 2.10 | 2.10 | 6.89 | 0.57 | 2815 | 16.36 | 102 | |
| RCPCH00367 | 0.00 | 0.50 | 0.50 | 17.20 | 0.88 | 3230 | 13.70 | 140 | incl |
| RCPCH00368 | 0.40 | 1.40 | 1.00 | 3.97 | 0.55 | 1420 | 22.90 | 110 | |
| RCPCH00368 | 3.20 | 4.60 | 1.40 | 2.93 | 0.20 | 879 | 8.91 | 37 | |
| RCPCH00369 | 0.00 | 2.70 | 2.70 | 2.68 | 0.16 | 1913 | 5.86 | 39 |
Table 1 – Significant intercepts for recent sampling from Paraguay (full results and channel details listed in Appendix 1).
The Company intends to continue its ongoing assessment of numerous high priority targets across the Project in line with its strategy to identify high-grade copper mineralisation suitable to commence small-scale mining operations. Assessment of each area consists of initial sampling and surveying, followed by detailed sampling and geological modelling. If a target is then deemed prospective, it is intended that bulk sampling will be undertaken, which can be trucked to the nearby toll treatment plants for processing. This work is underway on numerous targets across the Project area.
For further information please contact:
Zeffron Reeves Managing Director [email protected] P: + 61 8 9322 4328
About Mining Group Limited
Mining Group Limited (ASX: MNE) is an Australian-based company that acquires and develops copper and gold projects around the world with a focus on Chile. The Company has an interest in the highly prospective, high grade El Roble Copper Project in Region III of Chile, targeting IOCG-style copper and gold mineralisation. The Company is focused on achieving growth and shareholder value through the development of near-term, small-scale mining operations at El Roble which will enable self-funded growth into the future. El Roble is ideally located 25km from the port of Caldera and within 80km of two copper toll treatment plants within the world class Atacama IOCG region, which has a history of high-grade copper production.
Mining Group also has an interest in the Comval Copper Project in the Philippines, and its Australian-based projects, Boorara and Teutonic Projects, are prospective for gold and basemetals.
Mining Group has a strong Board and management team with considerable technical, commercial and corporate experience in the resources sector.
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For more information visit the Mining Group website at www.mininggroup.net.au
The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) (Applied Geology) MBA, MAIG), a member of the Australian Institute of Geoscientists and is an employee of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.
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Appendix 1 – Full results and channel location details from results presented within this announcement
a) – Collar location details
| hole_id | utm_northing | utm_easting | utm_rl | max_depth | Dip | Azimuth | grid |
|---|---|---|---|---|---|---|---|
| RCPCH00349 | 7009933.40 | 345483.50 | 1014.00 | 5.00 | 0 | 175 | WGS84_19S |
| RCPCH00350 | 7009932.50 | 345480.80 | 1013.73 | 3.50 | 0 | 173 | WGS84_19S |
| RCPCH00351 | 7009929.40 | 345477.40 | 1012.95 | 5.30 | 0 | 165 | WGS84_19S |
| RCPCH00352 | 7009927.10 | 345475.75 | 1012.33 | 3.10 | 0 | 172 | WGS84_19S |
| RCPCH00353 | 7009920.30 | 345466.10 | 1010.98 | 2.10 | 0 | 184 | WGS84_19S |
| RCPCH00354 | 7009919.70 | 345463.30 | 1010.99 | 2.00 | 0 | 190 | WGS84_19S |
| RCPCH00355 | 7009917.90 | 345459.00 | 1011.02 | 1.80 | 0 | 181 | WGS84_19S |
| RCPCH00356 | 7009935.30 | 345489.20 | 1014.42 | 3.00 | 0 | 210 | WGS84_19S |
| RCPCH00357 | 7009934.80 | 345491.70 | 1014.11 | 3.70 | 0 | 216 | WGS84_19S |
| RCPCH00358 | 7009935.00 | 345496.90 | 1013.82 | 3.10 | 0 | 201 | WGS84_19S |
| RCPCH00359 | 7009935.90 | 345499.40 | 1013.55 | 2.00 | 0 | 201 | WGS84_19S |
| RCPCH00360 | 7009937.20 | 345504.10 | 1013.06 | 2.50 | 0 | 194 | WGS84_19S |
| RCPCH00361 | 7009937.75 | 345506.60 | 1012.85 | 2.20 | 0 | 195 | WGS84_19S |
| RCPCH00362 | 7009939.50 | 345511.25 | 1012.60 | 2.80 | 0 | 195 | WGS84_19S |
| RCPCH00363 | 7009940.00 | 345514.00 | 1012.06 | 2.60 | 0 | 199 | WGS84_19S |
| RCPCH00364 | 7009941.30 | 345519.25 | 1011.40 | 2.50 | 0 | 204 | WGS84_19S |
| RCPCH00365 | 7009941.60 | 345521.15 | 1011.37 | 2.80 | 0 | 198 | WGS84_19S |
| RCPCH00366 | 7009942.30 | 345525.70 | 1009.92 | 2.40 | 0 | 198 | WGS84_19S |
| RCPCH00367 | 7009942.75 | 345528.20 | 1009.63 | 2.10 | 0 | 201 | WGS84_19S |
| RCPCH00368 | 7009944.30 | 345532.90 | 1009.13 | 5.60 | 0 | 201 | WGS84_19S |
| RCPCH00369 | 7009944.30 | 345535.90 | 1009.13 | 2.70 | 0 | 206 | WGS84_19S |
b) – Assay Results
| Au ppm |
Co ppm |
Mo ppm |
||||||
|---|---|---|---|---|---|---|---|---|
| Hole_ID | Depth_From | Depth_to | Sample_ID | Cu % | Fe % | |||
| RCPCH00349 | 0.00 | 0.40 | MGC03748 | 0.31 | 0.02 | 290 | 7.86 | 5 |
| RCPCH00349 | 0.40 | 1.00 | MGC03749 | 0.29 | 0.04 | 290 | 5.47 | 5 |
| RCPCH00349 | 1.00 | 2.00 | MGC03750 | 0.14 | 0.01 | 200 | 5.53 | 5 |
| RCPCH00349 | 2.00 | 3.00 | MGC03751 | 0.43 | 0.02 | 350 | 6.48 | 5 |
| RCPCH00349 | 3.00 | 3.80 | MGC03752 | 0.62 | 0.25 | 620 | 21.8 | 120 |
| RCPCH00349 | 3.80 | 4.50 | MGC03753 | 1.17 | 0.56 | 2110 | 19.5 | 150 |
| RCPCH00349 | 4.50 | 5.00 | MGC03754 | 0.31 | 0.03 | 340 | 4.38 | 10 |
| RCPCH00350 | 0.00 | 1.00 | MGC03755 | 0.23 | 0.01 | 90 | 6.28 | 5 |
| RCPCH00350 | 1.00 | 2.00 | MGC03756 | 0.27 | 0.01 | 100 | 6.22 | 5 |
| RCPCH00350 | 2.00 | 3.00 | MGC03757 | 0.64 | 0.02 | 230 | 7.42 | 5 |
| RCPCH00350 | 3.00 | 3.50 | MGC03758 | 1.29 | 0.04 | 870 | 9.9 | 5 |
| RCPCH00351 | 0.00 | 1.00 | MGC03759 | 0.34 | 0.01 | 90 | 5.19 | 5 |
| RCPCH00351 | 1.00 | 2.00 | MGC03760 | 0.35 | 0.02 | 180 | 5.51 | 5 |
| RCPCH00351 | 1.00 | 2.00 | MGC03761 | 1.02 | 0.63 | 780 | 19 | 190 |
| RCPCH00351 | 2.00 | 3.00 | MGC03762 | 0.92 | 0.04 | 340 | 7.39 | 5 |
| RCPCH00351 | 3.00 | 3.70 | MGC03763 | 0.93 | 0.04 | 500 | 9.71 | 20 |
| RCPCH00351 | 3.70 | 4.20 | MGC03764 | 2.52 | 2.32 | 1710 | 33.9 | 170 |
| RCPCH00351 | 4.20 | 4.80 | MGC03765 | 1.11 | 0.11 | 1060 | 12.8 | 110 |
| RCPCH00351 | 4.80 | 5.30 | MGC03766 | 1.00 | 0.22 | 810 | 16.6 | 100 |
| RCPCH00352 | 0.00 | 1.00 | MGC03767 | 0.55 | 0.06 | 290 | 5.6 | 5 |
| RCPCH00352 | 1.00 | 1.60 | MGC03768 | 2.10 | 0.07 | 830 | 13.9 | 70 |
| RCPCH00352 | 1.60 | 2.60 | MGC03769 | 1.69 | 0.30 | 1020 | 19.3 | 70 |
| RCPCH00352 | 2.60 | 3.10 | MGC03770 | 0.73 | 0.07 | 970 | 7.22 | 10 |
| Hole_ID | Depth_From | Depth_to | Sample_ID | Cu % | Au | Co | Fe % | Mo |
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| ppm | ppm | ppm | ||||||
|---|---|---|---|---|---|---|---|---|
| RCPCH00353 | 0.00 | 0.40 | MGC03775 | 1.12 | 0.01 | 100 | 4.07 | 20 |
| RCPCH00353 | 0.40 | 1.10 | MGC03776 | 8.19 | 1.65 | 410 | 22.2 | 190 |
| RCPCH00353 | 1.10 | 2.10 | MGC03777 | 1.35 | 0.04 | 370 | 12.2 | 20 |
| RCPCH00354 | 0.00 | 0.50 | MGC03778 | 1.43 | 0.00 | 160 | 3.98 | 10 |
| RCPCH00354 | 0.50 | 1.00 | MGC03779 | 3.14 | 0.60 | 240 | 32 | 130 |
| RCPCH00354 | 1.00 | 2.00 | MGC03780 | 1.03 | 0.03 | 430 | 6.97 | 10 |
| RCPCH00354 | 1.00 | 2.00 | MGC03781 | 0.00 | 0.00 | 5 | 0.43 | 5 |
| RCPCH00355 | 0.00 | 0.50 | MGC03786 | 0.26 | 0.01 | 110 | 5.44 | 5 |
| RCPCH00355 | 0.50 | 1.00 | MGC03787 | 0.51 | 0.28 | 40 | 14.8 | 90 |
| RCPCH00355 | 1.00 | 1.30 | MGC03788 | 0.27 | 0.07 | 30 | 12.7 | 60 |
| RCPCH00355 | 1.30 | 1.80 | MGC03789 | 0.27 | 0.12 | 20 | 6.82 | 100 |
| RCPCH00356 | 0.00 | 1.00 | MGC03790 | 0.42 | 0.02 | 570 | 5.32 | 5 |
| RCPCH00356 | 1.00 | 2.00 | MGC03791 | 0.52 | 0.03 | 390 | 5.94 | 5 |
| RCPCH00356 | 2.00 | 2.40 | MGC03792 | 0.58 | 0.08 | 680 | 8.11 | 20 |
| RCPCH00356 | 2.40 | 3.00 | MGC03793 | 1.00 | 1.88 | 1790 | 31 | 230 |
| RCPCH00357 | 0.00 | 0.90 | MGC03794 | 0.48 | 0.04 | 660 | 5.54 | 5 |
| RCPCH00357 | 0.90 | 1.90 | MGC03795 | 0.45 | 0.02 | 420 | 5.67 | 5 |
| RCPCH00357 | 1.90 | 2.60 | MGC03796 | 0.81 | 1.25 | 1310 | 29.9 | 330 |
| RCPCH00357 | 2.60 | 3.20 | MGC03797 | 0.60 | 0.25 | 760 | 10.3 | 70 |
| RCPCH00357 | 3.20 | 3.70 | MGC03798 | 2.68 | 0.02 | 9390 | 5.39 | 50 |
| RCPCH00358 | 0.00 | 0.60 | MGC03826 | 0.39 | 0.84 | 370 | 7.89 | 20 |
| RCPCH00358 | 0.60 | 1.60 | MGC03827 | 0.58 | 0.25 | 350 | 14.7 | 170 |
| RCPCH00358 | 1.60 | 2.20 | MGC03828 | 0.90 | 1.02 | 860 | 25.9 | 100 |
| RCPCH00358 | 2.20 | 2.50 | MGC03829 | 1.55 | 0.36 | 1650 | 8.25 | 50 |
| RCPCH00358 | 2.50 | 3.10 | MGC03830 | 1.64 | 0.20 | 3410 | 2.15 | 20 |
| RCPCH00359 | 0.00 | 1.00 | MGC03831 | 1.16 | 0.41 | 1620 | 25.1 | 100 |
| RCPCH00359 | 1.00 | 1.50 | MGC03832 | 0.69 | 1.97 | 1210 | 8.69 | 40 |
| RCPCH00359 | 1.50 | 2.00 | MGC03833 | 3.83 | 0.22 | 4720 | 2.69 | 20 |
| RCPCH00360 | 0.00 | 0.40 | MGC03838 | 1.12 | 0.10 | 5160 | 3.23 | 20 |
| RCPCH00360 | 0.00 | 0.40 | MGC03839 | 1.47 | 0.82 | 970 | 26.9 | 310 |
| RCPCH00360 | 0.40 | 1.10 | MGC03840 | 2.13 | 0.14 | 2720 | 3.69 | 30 |
| RCPCH00360 | 1.10 | 1.60 | MGC03841 | 3.80 | 1.05 | 3020 | 14.7 | 80 |
| RCPCH00360 | 1.60 | 2.20 | MGC03842 | 3.81 | 0.38 | 5360 | 13.4 | 70 |
| RCPCH00360 | 2.20 | 2.50 | MGC03843 | 0.11 | 0.02 | 40 | 2.91 | 10 |
| RCPCH00361 | 0.00 | 1.00 | MGC03844 | 2.43 | 0.21 | 3920 | 6.08 | 50 |
| RCPCH00361 | 1.00 | 1.60 | MGC03845 | 0.44 | 0.25 | 1080 | 14 | 50 |
| RCPCH00361 | 1.60 | 2.20 | MGC03846 | 0.32 | 0.08 | 130 | 5.63 | 10 |
| RCPCH00362 | 0.00 | 0.50 | MGC03847 | 0.82 | 0.05 | 1520 | 7.9 | 30 |
| RCPCH00362 | 0.50 | 1.50 | MGC03848 | 9.74 | 0.39 | 3120 | 12.9 | 130 |
| RCPCH00362 | 1.50 | 2.00 | MGC03849 | 1.29 | 0.42 | 6070 | 19 | 170 |
| RCPCH00362 | 2.00 | 2.80 | MGC03850 | 0.38 | 0.25 | 970 | 6.7 | 20 |
| RCPCH00363 | 0.00 | 1.00 | MGC03851 | 0.51 | 0.07 | 430 | 10.9 | 40 |
| RCPCH00363 | 1.00 | 2.00 | MGC03852 | 0.86 | 0.19 | 910 | 35.1 | 310 |
| RCPCH00363 | 2.00 | 2.60 | MGC03853 | 0.43 | 0.18 | 460 | 12.6 | 110 |
| RCPCH00364 | 0.00 | 0.40 | MGC03858 | 0.23 | 0.03 | 140 | 5.9 | 5 |
| RCPCH00364 | 0.00 | 0.40 | MGC03859 | 0.00 | 0.00 | 10 | 0.44 | 5 |
| RCPCH00364 | 0.40 | 0.90 | MGC03860 | 2.13 | 0.21 | 430 | 13.9 | 150 |
| RCPCH00364 | 0.90 | 1.90 | MGC03861 | 1.05 | 0.54 | 460 | 24.8 | 110 |
| RCPCH00364 | 1.90 | 2.50 | MGC03862 | 1.50 | 1.19 | 3410 | 13.3 | 60 |
| RCPCH00365 | 0.00 | 0.80 | MGC03863 | 1.03 | 0.12 | 1530 | 8.18 | 10 |
| RCPCH00365 | 0.80 | 1.70 | MGC03864 | 5.21 | 0.29 | 1570 | 15.7 | 150 |
| RCPCH00365 | 1.70 | 2.20 | MGC03865 | 1.89 | 1.29 | 9980 | 15.4 | 80 |
| RCPCH00365 | 2.20 | 2.80 | MGC03866 | 0.65 | 0.06 | 380 | 10.2 | 60 |
| RCPCH00366 | 0.00 | 0.40 | MGC03867 | 0.89 | 0.12 | 290 | 15.5 | 220 |
| RCPCH00366 | 0.40 | 1.00 | MGC03868 | 2.12 | 0.56 | 1130 | 14 | 140 |
| RCPCH00366 | 1.00 | 1.80 | MGC03869 | 0.42 | 0.10 | 360 | 15.8 | 100 |
| RCPCH00366 | 1.80 | 2.40 | MGC03870 | 2.79 | 0.11 | 270 | 15.3 | 80 |
| RCPCH00367 | 0.00 | 0.50 | MGC03871 | 17.20 | 0.88 | 3230 | 13.7 | 140 |
| RCPCH00367 | 0.50 | 1.50 | MGC03872 | 4.29 | 0.59 | 3870 | 13.1 | 90 |
| Hole_ID | Depth_From | Depth_to | Sample_ID | Cu % | Au | Co | Fe % | Mo |
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| ppm | ppm | ppm | ||||||
|---|---|---|---|---|---|---|---|---|
| RCPCH00368 | 0.00 | 0.40 | MGC03878 | 0.95 | 0.37 | 910 | 22.9 | 110 |
| RCPCH00368 | 0.00 | 0.40 | MGC03879 | 1.00 | 0.58 | 750 | 18.8 | 180 |
| RCPCH00368 | 0.40 | 1.40 | MGC03880 | 3.97 | 0.55 | 1420 | 22.9 | 110 |
| RCPCH00368 | 1.40 | 2.40 | MGC03881 | 0.32 | 0.00 | 90 | 7.14 | 30 |
| RCPCH00368 | 2.40 | 3.20 | MGC03882 | 0.10 | 0.02 | 60 | 3.36 | 20 |
| RCPCH00368 | 3.20 | 4.00 | MGC03883 | 1.50 | 0.10 | 270 | 4.12 | 20 |
| RCPCH00368 | 4.00 | 4.60 | MGC03884 | 4.84 | 0.34 | 1690 | 15.3 | 60 |
| RCPCH00368 | 4.60 | 5.60 | MGC03885 | 0.85 | 0.06 | 280 | 4.85 | 10 |
| RCPCH00369 | 0.00 | 0.50 | MGC03886 | 2.01 | 0.08 | 200 | 2.97 | 20 |
| RCPCH00369 | 0.50 | 1.50 | MGC03887 | 1.59 | 0.07 | 250 | 4.18 | 30 |
| RCPCH00369 | 1.50 | 2.30 | MGC03888 | 4.38 | 0.38 | 5050 | 10.8 | 70 |
| RCPCH00369 | 2.30 | 2.70 | MGC03889 | 2.81 | 0.03 | 1940 | 3.81 | 20 |
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APPENDIX 2: JORC Table 1, Section 1 Sampling Techniques and Data
| APPENDIX 2: JORC | Table 1, Section 1 Sampling Techniques and Data |
|---|---|
| Criteria | Explanation |
| Sampling techniques |
• Drill core samples are half core samples cut longitudinally down core axis • Minimum sample interval was 0.25m and maximum of 1.00m are collected from core, sampled to geological boundaries. • Rock chip samples collected are of a minimum 2kg weight. • Minimum sample interval was 0.50m and maximum of 2.00m were collected along installed channels. • Samples sent to ALS Laboratories, Copiapo, Chile • Samples were pulverised to obtain a 30g charge for fire assay for gold • A 0.5g charge was digested by four acid near total digest and analyses using ICP-OES for multi-element analysis, including copper • Ore grade copper samples over 10,000ppm (10%) are re-assayed using AAS • High grade gold samples over 10 g/t are re-assayed using a fire assay fusion and gravimetric finish. . |
| Drilling techniques | • NA - No drill results are presented in this announcement |
| Drill sample recovery |
• NA - No drill results are presented in this announcement |
| Logging | • All drill holes and rock samples are geologically logged by qualified geologists. • Geological data is recorded in the Company’s geological database. • Logging is qualitative in nature and describes lithology, alteration, structure and mineralisation visually observed by the logging geologist. • Total length of each sample interval has been logged. |
| Sub-sampling techniques and sample preparation |
• The sample collection and preparation technique is deemed suitable and industry standard for drill core and rock sampling. • Samples are coarse crushed to 70% passing 2mm and then split produce a 30g sample for gold assay and 0.5g sample for multi-element assay. Sub samples are then pulverised to 85% passing 75 microns prior to assay. • No duplicate samples have been carried out. • Sample size is deemed appropriate. • Samples may be subject to nonuniform grade distribution and nugget effect in relation to coppergrade due togeological and mineralogical characteristics. |
| Quality of assay data and laboratory tests |
• Assay techniques are deemed suitable and accurate for the elements being tested. • Standard reference materials have been submitted in each sample run every 20 samples. • Blank reference materials are submitted in each sample run every 50 samples. |
| Verification of sampling and assaying |
• All significant intersections have been calculated using weighted averaging to sample length. • All significant intersections have been checked by alternative company geological personnel. • No duplicate sampling or twinned holes have been completed • All data collected is done so in accordance with the Company’s written data collection procedures and is kept within the Company’s electronic database. Original sample logs and written data collection forms are also retained in the Company’s data library. • No adjustment to data has been done. |
| Locations of data points |
• All drill holes and channels have been surveyed using a measurement from known survey points in underground areas with appropriate control points used and referenced to ensure accuracy of survey information. • Co-ordinates have an error of +/-10cm.. • Co-ordinates are recorded in WGS84 co-ordinate system |
| Data spacing and distribution |
• The current drill and channel spacing is deemed appropriate for the current early stage of exploration |
| Orientation of data in relation to geological structure |
• Wherever possible drill holes and channels have been planned to intersect mineralised structures perpendicular to the structure. • Drill Hole intercepts are downhole widths and do not indicate true widths of any mineralised structure. |
| Sample security | • All sampling was conducted under the supervision of the companies project manager who supervised sample collection and the chain of custodyfrom the drill to the sample |
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| preparation and logging facility is continually monitored by the project manager. Samples are shipped to the lab by qualified couriers or Company personnel under locked bags. |
|
|---|---|
| Audits or reviews | • No audit or review has been conducted due to the early stage exploration nature of the work. |
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JORC Table 7: Section 2 Reporting of Exploration Results
| Criteria | Explanation |
|---|---|
| Mineral tenement and land tenure status |
• Mining Group does not own any of the properties sampled or mapped and sampling and mapping completed was done so as part of a due diligence process in order to assess the properties. • Mining Group has an exclusive option agreement to acquire the properties (refer ASX Announcement 15 August 2013) • Mining Group is not the current operator of the Paraguay Mine. • Mining Group has a production agreement over the Panga Mine, granting exclusive access to carryout furthergeological and miningstudies and to extract copper andgold ore. |
| Exploration by other parties |
• No information has been used in this report from exploration by other parties. |
| Drill hole information |
• Details of channel, drill holes, depth and intercept depths are contained within this announcement (Appendix 1). |
| Geology | • The El Roble Project and Paraguay mine area consists of quartz and iron oxide veins, containing copper and gold mineralisation. The veins are hosted within intrusive dioritic and andesitic volcanic rocks of the Chilean Cretaceous Belt. |
| Data aggregation methods |
• Intercept widths are along channel widths, intercept calculated by length weighted average for all samples and no internal dilution was used, where length is the along channel length for each sample interval • Intercepts comprise of aggregated length weighted average for all samples taken in each channel. Length weighted averages have been calculated using the following formula assuming 3 samples were taken from the channel, where: A=sample interval, B=sample assay value 1) A1xB1 = C1, A2xB2=C2, A3xb3=C3 2) A1+A2+B2= total interval 3) (C1+C2+C3)/total interval = length weighted grade average • No metal equivalent values have been used. |
| Relationship between mineralization widths and intercept lengths |
• Channels were designed to be installed perpendicular to the interpreted strike of the mineralized structures unless stated. • Intercept widths are along downhole widths and are not true geological widths. |
| Diagrams | • Pertinent maps, plans and sections are within this announcement |
| Balanced Reporting | • Full results of all samples taken are presented in Appendix 1 of this announcement. |
| Other substantive exploration data |
• No other data other than that presented has been used or relied upon. |
| Further work | • Further exploration work including mapping, sampling and drilling is required, on areas throughout the property. • These areas will be identified in the future through further analysis and interpretation of results. • Diagrams cannot be provided until areas for future exploration have been identified, other than what is presented within this notice. |
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