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CORE LITHIUM LTD — Interim / Quarterly Report 2012
Apr 29, 2012
64737_rns_2012-04-29_e5096eef-7bbc-4285-994a-fa05ba3a67c2.pdf
Interim / Quarterly Report
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30 April 2012
Centralised Company Announcements Platform Australian Stock Exchange 10[th] floor, 20 Bond Street Sydney NSW 2000
QUARTERLY ACTIVITIES AND CASHFLOW REPORT 31 MARCH 2012
Please find attached the Quarterly Activities and Appendix 5B Quarterly Cash Flow Reports for the quarter ended 31 March 2012.
Yours faithfully
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Stephen Biggins Managing Director
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A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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ASX Release
30 April 2012
QUARTERLY ACTIVITIES REPORT FOR THREE MONTHS ENDED 31 MARCH 2012
CORE EXPLORATION LTD
Level 2 143 Hutt Street Adelaide SA 5000
CONTACT:
Stephen Biggins Managing Director
Jarek Kopias
Company Secretary [email protected]
E-MAIL:
WEBSITE:
www.coreexploration.com.au
Directors:
Greg English Non-Executive Chairman
Stephen Biggins Managing Director
Michael Schwarz
Executive Director Exploration
Highlights
-
Copper mineralisation revealed in drill core from the first diamond drilling program on Core’s Yorke Peninsula project during the March 2012 Quarter
-
Copper sulphides found with zones of IOCG (Iron Oxide Copper Gold) style alteration
-
Drilling over 350m of the 1500m long Wauraltee Prospect strikes alteration and associated copper sulphides
Overview
The Board of Core Exploration Ltd (“Core”) is pleased to present its quarterly activities report for the period ended 31 March 2012 .
Core’s recently completed 2,000m maiden diamond drill program on the company’s Yorke Peninsula tenement has identified low levels of copper mineralisation and intersected alteration typical of other IOCG style deposits in South Australia.
Visible copper sulphides have been identified in all 3 holes drilled over 350m of the 1,500m long and 300m wide coincident gravity and magnetic anomaly at the Wauraltee Prospect.
Issued Capital:
41,500,000 Ordinary Shares 8,575,000 Unlisted Options
Core Exploration maintains a strong balance sheet with A$3.1 million cash on hand as at 31 March 2012.
ASX Code: CXO
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
Projects
YORKE PENINSULA (SA) – ACTIVITY DURING THE QUARTER
First Diamond Drilling Program completed on Yorke Peninsula
Core Exploration Ltd completed a 2,000m diamond drill program on its Yorke Peninsula Tenement during the March 2012 quarter. The drilling program had been successful in increasing the Company’s level of confidence in the IOCG (Iron Oxide Copper Gold) potential of the Yorke Peninsula Project (Figure 1).
Regional and Infill gravity and airborne magnetic surveys during 2011 defined a large-scale set of magnetic and gravity drill targets identified within the 12km long, 2-4km wide Palace Structural Zone (Figure 2).
Semi coincident magnetic and gravity anomalies are strong indicator of magnetite/hematite iron oxide alteration systems and potentially IOCG style mineralisation.
These large-scale gravity and magnetic drill targets are hosted in an analogous geological setting to Rex Minerals Ltd’s (ASX:RXM) Hillside Project on the adjacent tenement.
Six targets were subjected to follow up diamond drilling via 8 drill holes totaling 2000m. Drill holes ranged from 180-360m in depth.
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Figure 1. Location of Core Exploration’s Yorke Peninsula tenements in South Australia.
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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Figure 2. Core Exploration’s Drill Targets, Yorke Peninsula Project, S.A.
The drilling successfully identified the geological source of the targeted semi coincident gravity and magnetic anomalies and identified IOCG style alteration within the system. Minor copper sulphides (chalcopyrite) were identified in association with the alteration.
The dominant host rocks consist of dolerite and gabbro intercalated with granites, interpreted to belong to the Hiltaba Suite and metasediments interpreted to belong to the Wallaroo Group.
Alteration assemblages consist of albite-epidote-amphibole-carbonate +/- magnetite, pyrite and chalcopyrite. The most pervasive zones of alteration are preferentially associated with the granitic and metasedimentary units, generally with a strong structural fabric. The widths of alteration intersected in drill core vary from narrow veins a few centimetres wide up to 15 m. The amount of visible copper sulphides within the alteration zones is variable.
Table 1. Summary of drillcore geology, Wauraltee Prospect, Yorke Peninsula, S.A.
| Hole | From | To | Comments |
|---|---|---|---|
| WTDD001 | 161m | 217.5m | Presence of deformed and altered dolerite epidote, amphibole, carbonate and albite alteration and veining, with variablepyrite and minor chalcopyrite(Figure 3). |
| WTDD002 | 151m | 247.5m | Presence of deformed and altered coarse grained gabbro with 10cm to 1m thick zones alteration and veining of carbonate, amphibole, biotite, albite and epidote +/- minor chalcopyrite andpyrite(Figure 4). |
| WTDD008 | 188.05m | 205m | Drill hole intersected a fine granite or felsic volcanic dominated by pervasive red rock alteration of albite, epidote, pyrite +/- magnetite, amphibole and chalcopyrite. Small veins of pyrite and lesser chalcopyrite occur throughout this interval(Figure 5). |
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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The association of alteration with granite, metasediments and zones of structure will be an important observation in determining zones of potential mineralisation in future drill targeting.
The drill program has greatly increased Core’s understanding of the geological environment within the Palace Structural Zone and confirmed the presence of a copper bearing alteration system consistent with other IOCG deposits in the region.
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Figure 3. Zone of amphibole-epidote-albite-pyrite alteration with associated chalcopyrite in drill hole WTDD001 at 164m.
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Figure 4. Zone of intense amphibole rich alteration with associated chalcopyrite and possibly chalcocite in drill hole WTDD002 at 247.5m.
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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Yorke Peninsula Diamond Drilling Assay Results
Drillhole WTDD002 at Wauraltee Prospect intersected numerous metre scale zones with variable levels of copper mineralisation intermittently over an approximately 100m thick section (refer table below).
Assay results were received in late April from drill holes WTDD001, WTDD002, WTDD003 and WTDD005. Assay results are still pending from WTDD004, and WTDD006, WTDD007 and WTDD008.
A comprehensive interpretation of these recently received results will be reported once the Company has all significant results in hand (50% of results still to be received).
Table 2. Significant copper intersections (>0.05% Cu) in drilling, Yorke Peninsula Project, S.A.
| Drill Hole | Prospect | Depth from (m) | Depth to (m) | Interval (m) | Cu (%) |
|---|---|---|---|---|---|
| WTDD001 | Wauraltee | 227 | 228 | 1 | 0.45 |
| WTDD002 | Wauraltee | 148 | 150 | 2 | 0.10 |
| 159 | 160 | 1 | 0.07 | ||
| 165 | 166 | 1 | 0.26 | ||
| 181 | 185 | 4 | 0.06 | ||
| 201 | 202 | 1 | 0.05 | ||
| 241 | 243 | 2 | 0.19 | ||
| 249 | 250 | 1 | 0.25 | ||
| WTDD003 | No significant assays | ||||
| WTDD004 | Assaysyet to be received | ||||
| WTDD005 | No significant assays. | ||||
| WTDD006 | Assaysyet to be received | ||||
| WTDD007 | Assaysyet to be received | ||||
| WTDD008 | Wauraltee | Assays yet to be received |
Samples were collected from half NQ drill core. A 40g charge of pulverised sample was digested with Aqua Regia. Analysis was undertaken by ICP-MS/ICP-AES
.
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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Figure 5. Diamond drill rig on drill hole WTDD003.
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Figure 6. Pyrite dominant veining with lesser chalcopyrite in drill hole WTDD008 at 198m.
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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Corporate
CASH POSITION
Core Exploration had $3.10 million cash in hand as at 31 March 2012.
Outlook – June 2012 Quarter
Yorke Peninsula, S.A.
The remaining 50% of drill assays from the recent 2,000m diamond drilling program are expected to be received in mid-May 2012.
Further infill gravity is currently being undertaken at a number of prospects on the Yorke Peninsula. Station spacing is being infilled from 250m x 250m to 50m x 50m. Infill ground magnetics is also being undertaken at these prospects.
Follow-up diamond drilling at Wauraltee Prospect on the Yorke Peninsula is then planned to recommence in June. Three new prospect areas are also being considered for drilling once Wauraltee program has been completed.
Fitton, SA
Assay results from approximately 50 rock chip samples collected in April 2012 from Core’s recent mapping and sampling program at Fitton are expected to be received in mid-May 2012.
Infill soil sampling and ground magnetics are also planned over the main uranium and copper anomalies at Fitton during the next quarter 2012. Access was delayed during March Q3 due to severe rains and associated damage to access roads.
Drilling of priority targets on Fitton defined by these surveys are scheduled for early Q3 2012.
Roxby South, S.A.
Core’s Roxby Downs exploration licence application (ELA 09/227) has been offered for grant by the South Australian Government. Exploration Licence is expected to be granted during the June Quarter by the Minister once the government’s statutory 28-day advertising period has ended.
The Roxby Downs and Sandy Point tenements comprise Core’s Roxby South project which covers over 400km2 near BHP Billiton’s Olympic Dam mine in northern South Australia
As a result of the expected grant of its tenements in the near future, Core is now assessing options which may include introducing a senior partner for its 100% owned Roxby South Project.
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
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ASX Announcements
The Company made the following announcements during the quarter since the previous quarterly report and to the date of this report:
| Date | Announcement |
| 31 Jan 2012 | Quarterly Activities Report and Appendix 5B |
| 13 Feb 2012 | Major drilling program commences on Yorke Peninsula |
| 28 Feb 2012 | Half Yearly Accounts |
| 20 Mar 2012 | Copper mineralisation hit on Yorke Peninsula Project |
| 27 Mar 2012 | Core Exploration Investor Presentation 27 March 2012 |
| 29 Mar 2012 | Core Exploration featured on Boardroom Radio Interview |
| 16 Apr 2012 | Equity Research coverage initiated by Octa Phillip |
| 27 Apr 2012 | Core accepts Government offer to grant new exploration licence 30km south of Olympic Dam |
| 30 April 2012 | Managing Director’s Presentation – SAREIC April 2012 |
| 30 April 2012 | Expanded Yorke Peninsula Drilling - SAREIC April 2012 |
The information in this report that relates to exploration results, mineral resources or ore reserves is based on information compiled by Mr Stephen Biggins who is a member of the Australasian Institute of Mining and Metallurgy. Mr Biggins is the Managing Director of Core Exploration Ltd. Mr Biggins 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, Mineral Resources and Ore Reserves’. Mr Biggins consents to the inclusion in this ASX Release of the matters based on his information in the form and context in which it appears.
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity Core Exploration Ltd ABN Quarter ended (“current quarter”) 80 146 287 809 31 March 2012
Consolidated statement of cash flows
| Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for: (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) - Prospectus costs Net Operating Cash Flows |
Current Quarter (3 Months) $A’000 |
Year to date (9 Months) $A’000 |
|---|---|---|
| - (155) - - (222) - 51 - - - - |
- (738) - - (641) - 219 - - - - |
|
| (326) | (1,160) | |
| Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) |
- - (14) - - - - - - - |
- - (99) - - - - - - - |
| (14) | (99) | |
| (340) | (1,259) |
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected]
www.coreexploration.com.au
| 1.13 Total operating and investing cash flows (broughtforward) |
(340) | (1,259) |
|---|---|---|
| Cash flows related to financing activities 1.14 Proceeds from issues of shares 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) - Capital raising costs Net financing cash flows |
- - - - - - |
- - - - - (1) |
| - | (1) | |
| Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter |
(340) 3,443 - |
(1,260) 4,363 - |
| 3,103 | 3,103 |
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
| 1.23 1.24 |
Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10 |
Current quarter $A'000 |
|---|---|---|
| 131 | ||
| - | ||
| 1.25 | Explanation necessary for an understanding of the transactions | |
| The amount above includes all payments to Directors and also includes payments to entities associated with Greg English and Stephen Biggins. The payments relate to executive services and directors fees on commercial terms. |
Non-cash financing and investing activities
- 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows.
| 2.2 | n/a |
|---|---|
| Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest. |
|
| n/a |
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected]
www.coreexploration.com.au
Financing facilities available
| 3.1 Loan facilities 3.2 Credit standby arrangements |
Amount available $A’000 |
Amount used $A’000 |
|---|---|---|
| Nil | Nil | |
| Nil | Nil |
Estimated cash outflows for next quarter
| 4.1 4.2 4.3 4.4 |
Exploration and evaluation Development Production Administration |
$A’000 |
|---|---|---|
| 950 | ||
| - | ||
| - | ||
| 145 | ||
| Total | 1,095 |
| 4.1 4.2 4.3 4.4 |
Exploration and evaluation Development Production Administration |
|---|---|
Reconciliation of cash
| Reconciliation of cash | ||
|---|---|---|
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter $A’000 |
Previous quarter $A’000 |
| 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft Other (provide details) |
776 | 262 |
| 2,327 | 3,181 | |
| - | - | |
| - | - | |
| Total: Cash at end of quarter(item 1.22) | 3,103 | 3,443 |
Changes in interests in mining tenements
| 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased |
Tenement reference | Nature of interest (note (2) |
Interest at beginning of quarter |
Interest at end of quarter |
|---|---|---|---|---|
| Nil | ||||
| Nil |
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number |
Number quoted |
Issue price per security (cents) |
Amount paid upper security (cents) |
|
|---|---|---|---|---|
| 7.1 Preference+securities (description) 7.2 Changes during quarter |
||||
| 7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs |
41,500,000 | 29,900,000 | Fully paid | |
| 7.5 +Convertible debt securities (description) 7.6 Changes during quarter |
||||
| 7.7 Options (description and conversion factor) Unlisted Options Unlisted Class B Options Unlisted Options 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter |
7,000,000 1,500,000 75,000 |
- - - |
Exercise price 25 cents 25 cents 20 cents |
Expiry date 30 Jun 2014 31 Oct 2014 19 Sep 2013 |
| 7.11Debentures(totals only) | ||||
| 7.12Unsecured notes(totals only) |
Compliance statement
-
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
-
2 This statement does give a true and fair view of the matters disclosed.
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Jarek Kopias
Date: 30 April 2012
Company Secretary
A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected]
www.coreexploration.com.au
Notes
-
1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
-
2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities
The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .
- 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards
ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
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A Level 2, 143 Hutt Street, Adelaide SA 5000 | T (08) 7324 2987| F (08) 8312 2002| E [email protected] www.coreexploration.com.au