Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

CZR RESOURCES LTD Capital/Financing Update 2008

Sep 16, 2008

64748_rns_2008-09-16_50324594-9926-4f48-8d2a-7b77eff4459c.pdf

Capital/Financing Update

Open in viewer

Opens in your device viewer

==> picture [156 x 80] intentionally omitted <==

17th September 2008

AUSTRALIAN STOCK EXCHANGE RELEASE

AGAM IRON SAND PROJECT UPDATE

By way of update on this project, the Company is pleased to announce that Ravensgate has now completed its Independent Geological Assessment of the project, a copy of which is attached.

In addition, we are pleased to confirm that the 18kg sample from AGAM site has arrived at ALS Laboratory in Perth. We anticipate that we should receive a report from Pro-Met Engineers on the Preliminary sighter testwork in approximately two weeks.

Shareholders can look forward to continuing regular updates.

Sai Kwok Miu

==> picture [115 x 56] intentionally omitted <==

Executive Director Coziron Resources Limited

For further information please contact: Sai Kwok Miu Executive Director, Coziron Resources Limited

www.coziron.com

T: 08 9227 7766 F: 08 9227 1370 M: 0411 888 782

==> picture [441 x 65] intentionally omitted <==

49 Ord Street West Perth 6005, Western Australia P O Box 1923, West Perth 6872, Western Australia Tel: +61 8 9226 3606 Fax: +61 8 9226 3607 www.ravensgate.com.au

7 September 2008

The Board of Directors Coziron Resources Limited P O Box 363 Northbridge WA 6865

Dear Sirs

Geological report of the site visit to the Agam Iron Sands project near Padang - West Sumatra

At your request Ravensgate did a site visit to your two iron sands licences on 5 September 2008. The exploration licences are situated north west of Padang in West Sumatra. The purpose of the site visit was to gain first hand geological information of the licence areas, with the view of designing an exploration program for the licences.

The total area of the two licences is approximately 3,960 hectares. No work has been done over the larger southern licence. Over the northern licence twenty test pits have been completed. Encouraging results have been reported from the test pits.

To fully assess the potential of the tenement will require drilling.

The observations and conclusions of the field trip are contained in the attached report.

Yours faithfully

==> picture [105 x 64] intentionally omitted <==

Allen Lyons Pr Sci Nat Exploration Manager

Corvidae Pty Ltd as Trustee for Ravensgate Unit Trust Trading as Ravensgate ABN: 92 492 598 860

==> picture [114 x 28] intentionally omitted <==

INDEPENDENT GEOLOGICAL ASSESSMENT

of the

EXPLORATION POTENTIAL OF THE TWO IRON SANDS PROJECTS SITUATED NORTH WEST OF PADANG

for

COZIRON RESOURCES LIMITED

RAVENSGATE

7 September 2008

Corvidae Pty Ltd as Trustee For Ravensgate Unit Trust Trading as Ravensgate 49 Ord Street West Perth, Western Australia 6005 PO Box 1923, West Perth WA 6872 Tel +61 08 9226 3606 Fax +61 08 9226 3607 email: [email protected] web : http://www.ravensgate.com.au ABN: 92 492 598 860

==> picture [114 x 28] intentionally omitted <==

INDEPENDENT GEOLOGICAL ASSESSMENT

Prepared by RAVENSGATE on behalf of:

Coziron Resources Limited

Author(s): Allen Lyons Exploration Manager BSc (Hons) Pr Sci Nat Reviewer: H. Kate Holdsworth Senior GIS Geologist BSc (Hons), MAusIMM Copies: Coziron Resources Limited (2) Ravensgate (1)

==> picture [106 x 64] intentionally omitted <==

_____ Allen Lyons For and on behalf of: RAVENSGATE

This document has been prepared for the exclusive use of Coziron Resources Limited and the information contained within it is based on instructions, information and data supplied by them. No warranty or guarantee, whether expressed or implied, is made by Ravensgate with respect to the completeness or accuracy of this document and no party, other than the client, is authorised to or should place any reliance whatsoever on the whole or any part or parts of the document. Ravensgate does not undertake or accept any responsibility or liability in any way whatsoever to any person or entity in respect of the whole or any part or parts of this document, or any errors in or omissions from it, whether arising from negligence or any other basis in law whatsoever.

==> picture [114 x 28] intentionally omitted <==

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY.............................................................................................6
2. INTRODUCTION.....................................................................................................7
2.1
Background .............................................................................................. 7
2.2
Qualifications, Experience and Independence...................................................... 7
3. TENURE, LOCATION AND PHYSIOGRAPHY .....................................................................8
3.1
Tenure.................................................................................................... 8
3.2
Location.................................................................................................. 9
4. GEOLOGY.......................................................................................................... 11
4.1
Introduction ............................................................................................11
4.2
Regional Geology ......................................................................................11
4.3
Local Geology ..........................................................................................12
5. WORK COMPLETED .............................................................................................. 13
5.1
Previous exploration...................................................................................13
6. CONCLUSION AND RECOMMENDATIONS...................................................................... 16
7. REFERENCES...................................................................................................... 17

Page 4 of 27

==> picture [114 x 28] intentionally omitted <==

LIST OF TABLES

Table 1 Corner co-ordinates of PT Galian Endapan Buana northern licence area.............................. 8 Table 2 Corner co-ordinates of PT Galian Endapan Buana southern licence area.............................. 8 Table 3 Test pits dug on PT GEB northern licence .................................................................14

LIST OF FIGURES

Figure 1 Regional locality map showing the Agam Iron Sands Project (from Khudeira,2008) ................ 9 Figure 2 Access road travelled from Padang to the licence area during site visit. ...........................10 Figure 3 Geologic time scale (modified after Stoffer 2006)......................................................11 Figure 4 Geology of the area around the two licences............................................................12 Figure 5 Position of the Test pits dug by excavator ...............................................................15

LIST OF APPENDICES

APPENDIX 1 PHOTOGRAPHS ........................................................................................... 18 APPENDIX 2 GLOSSARY................................................................................................. 22

Page 5 of 27

==> picture [114 x 28] intentionally omitted <==

1. EXECUTIVE SUMMARY

The Agam Iron Sands Project is a Joint Venture agreement between Coziron Resources Limited “Coziron” and Indonesian registered company PT Galian Endapan Buana. The project area is located on Sumatra Island.

The Agam Iron Sands Project comprises two licences totalling 3,960 hectares. The two licences are situated north west of Padang in the Agam Regency of West Sumatra. Padang, the capital of West Sumatra, has an international airport. There are daily commercial flights from Kuala Lumpur and Jakarta to Padang. The flying time from Jakarta to Padang is approximately 90 minutes.

Padang, a large well organised town with all modern amenities, is the closest large commercial centre to the project area. The PT Galian Endapan Buana licences are situated approximately 90 and 100 kilometres north west of Padang. Access to the two licence areas is relatively easy. It takes approximately two hours to travel to the PT GEB northern licence. Most of the route is along a well maintained sealed road.

The licences are located on the coastal plane in close proximity to the Mount Talamau and the Munijau volcanic centres. Sediments of the coastal plain consist of silt, sand and gravel beds. Concentrations of heavy minerals within the sediments are thought to have been derived from andesitic lavas. Lavas from the Muninjau Centre are known to contain between 1% and 5% magnetite.

Concentrations of Heavy Minerals Sands (HMS) occur as distinct bands within sand beds. From shallow pits (<4m deep) that were dug, it is known that the HMS units can be up to 100cm thick.

The heavy minerals appear to be mostly magnetite. Many of the grains still exhibit a good crystal form indicating that the grains have not been transported far. From analysis carried out by Coziron it can be surmised that the heavy sands also contains rutile and small amounts of zircon.

Limited work has been done over the two licences. From the work completed thus far, it is clear that the area has excellent exploration potential. To test the full potential of the licences, it will require drilling.

In the short term, the northern licence will be the focus of the exploration effort. Before the drilling can be planned a photo-geological and satellite interpretation of the area is recommended. The purpose of this exercise will be to identify ancient shorelines within the licence areas. The world’s highest grade HMS deposits often occur along ancient shorelines and the ore bodies are orientated parallel to the shoreline. Paleo-shorelines have been recognised north of the licence areas. It is highly likely that there are paleo-shorelines preserved within the licence areas and such features would constitute excellent exploration targets.

Drilling will be planned as soon as the geological interpretation of the area has been completed. Auger drilling and RAB drilling is not a suitable drilling technique to evaluate this type of deposit. Excessive contamination will render samples which cannot be used to produce a JORC compliant resource estimate. It is therefore recommended that an RC rig be utilised for the drilling program.

It is also recommended that the planned geophysics program be put on hold until Ravensgate have had an opportunity to discuss the capabilities and the limitations of the proposed technique with the geophysicists from CV Billanda Utama.

The Agam Project will need to be fast tracked if Coziron is to achieve its objective of shipping the first consignment from this deposit by August 2009. Fast tracking this project will require manpower dedicated to achieving the company’s objective.

Page 6 of 27

==> picture [114 x 28] intentionally omitted <==

2. INTRODUCTION

2.1 Background

Ravensgate has been approached by Coziron Resources Limited to design an exploration program, and manage the program, over the two iron sands licences in West Sumatra.

All the data that was made available has been compiled and analysed in some detail. The area was also visited on 5 September 2008. The findings of the investigation are described in detail below and are also summarized in the conclusions of this report.

2.2 Qualifications, Experience and Independence

Ravensgate was established in 1997 and specialises in resource modelling and resource estimation services. The company has worked for major clients globally, such as Graseberg Mine in West Papua - Indonesia, Ok Tedi Gold Mine in Papua New Guinea, AngloGold Ashanti in Ghana and many junior resource companies which are ASX (Australian Stock Exchange), TSX (Toronto Stock Exchange) or AIM (London Stock Exchange) listed. Ravensgate has focused upon providing resource estimations, valuations, independent technical documentation and has been involved in the preparation of Independent Reports for Canadian, Australian and the United Kingdom companies.

The personnel responsible for this report are as follows;

Author: Allen Lyons, BSc Hons, Pr.Sci.Nat

Exploration Manager

Allen Lyons is a registered professional geologist with 25 years experience. He has extensive international experience in both mining and exploration geology. Prior to joining Ravensgate he was Country Manager for Pangea Exploration in Central African Republic, where he was responsible for looking after the company’s gold and diamond projects. Other commodities he has worked on are coal, platinum, nickel, tin-tungsten and massive sulphide deposits.

Allen has worked as an independent consultant since 1998. As a consultant he has done work for AngloGold, Impala Platinum, Lonmin Platinum, Barrick Gold, Placer Dome, Falconbridge and a number of junior companies. Some of the tasks he has been involved with include the planning and management of numerous large exploration programmes, a number of feasibility studies and independent technical reviews.

His role within Ravensgate is to provide our clients with hands-on advice on exploration projects. He is well experienced in various facets of exploration geology, from assessing a project to the planning and management of exploration projects.

Allen has been a registered Natural Scientist with the South African Council for Natural Scientists since 1988.

Peer Reviewer: H. Kate Holdsworth, BSc (Hons) Geology, MAusIMM

Senior GIS Geologist

H. Kate Holdsworth, is a senior GIS geologist with over 14 years GIS experience who joined Ravensgate in September 2006. Since then she has researched and co-authored a number of Independent Geologists Reports, compiled various maps as well as assisted clients with their exploration reporting requirements. Kate has also undertaken QA/QC investigations into client’s data quality. Before joining Ravensgate, Kate worked for Giscoe Pty Ltd, a GIS company in Johannesburg, for ten years, where she was involved in diverse GIS projects, including database generation, database population analysis and statistics and data validation. Kate has four years experience in GIS with the Geological Survey of South Africa, where she was a member of their GIS database design team. She was involved in the designing of the 1:10 ,000 Engineering Geology database, the 1:1,000,000 Metallogenic Map for South Africa database and the South African

Page 7 of 27

==> picture [114 x 28] intentionally omitted <==

geological map database. As well as cartographic production in the form of the production of geological maps 1:250,000 scale and 1:50,000 scale, populating of geological databases for various projects on demand and preparing and assessing various spatial data.

3. TENURE, LOCATION AND PHYSIOGRAPHY

3.1 Tenure

It is our understanding that the exploration licences are currently held by PT Galian Endapan Buana. The corner co-ordinates of the two licences as provided to Ravensgate are shown in Table 1 and Table 2 below:

Table 1 Corner co-ordinates of PT Galian Endapan Buana northern licence area

Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Table 1 Corner co-ordinates of PT Galian Endapan Buana northern
licence area
Point East South
Degrees Minutes Seconds Degrees Minutes Seconds
1 99 47 29 0 10 46
2 99 49 7 0 10 46
3 99 49 7 0 13 44
4 99 48 16 0 13 44
5 99 48 16 0 12 48
6 99 48 8 0 12 48
7 99 48 8 0 12 34
8 99 47 54 0 12 34
9 99 47 54 0 11 57
10 99 47 29 0 11 57
Table 2 Corner co-ordinates of PT Galian Endapan Buana southern
licence area
Point East South
Degrees Minutes Seconds Degrees Minutes Seconds
1 99 50 2 0 16 34
2 99 53 34 0 16 34
3 99 53 34 0 20 12
4 99 52 54 0 20 12
5 99 52 54 0 19 29
6 99 52 8 0 19 29
7 99 52 8 0 18 39
8 99 51 25 0 18 39
9 99 51 25 0 18 1
10 99 50 2 0 18 1

The area of each licence is as follows

Page 8 of 27

==> picture [114 x 28] intentionally omitted <==

  • PT Galian Endapan Buana northern licence – 1,260 hectares

  • PT Galian Endapan Buana southern licence – 2,700 hectares

3.2 Location

The Agam Iron Sands Project is a Joint Venture agreement between Coziron Resources and Indonesian registered company PT Galian Endapan Buana. The project area is located on Sumatra Island (figure 1).

Figure 1 Regional locality map showing the Agam Iron Sands Project (from Khudeira,2008)

==> picture [340 x 411] intentionally omitted <==

The Agam Iron Sands Project comprises two licences totalling 3,960 hectares. The two licences (figure 2) are situated north west of Padang in the Agam Regency of West Sumatra. Padang, the capital of West Sumatra, has an international airport. There are daily commercial flights from Kuala Lumpur and Jakarta to Padang. The flying time from Jakarta to Padang is approximately 90 minutes.

Page 9 of 27

==> picture [114 x 28] intentionally omitted <==

Figure 2 Access road travelled from Padang to the licence area during site visit.

==> picture [434 x 611] intentionally omitted <==

Page 10 of 27

==> picture [114 x 28] intentionally omitted <==

Padang, a large well organised town with all modern amenities, is the closest large commercial centre to the project area. The PT Galian Endapan Buana licences are situated approximately 90 and 100 kilometres north west of Padang (Figure 2). Access to the two licence areas is fairly easy. It takes approximately 2 hours to travel the 120 kilometres to the PT GEB northern licence. Most of the route is along a well maintained sealed road.

4. GEOLOGY

4.1 Introduction

Indonesia is the largest archipelagic state in the world, comprising five major islands and approximately 300 smaller island groups. Altogether there are 13,667 islands and islets of which about 6,000 are inhabited.

Sumatra Island lies on the western edge of the Sundaland plate. The island measures 1,650 kilometres from Banda Aceh in the north to Tanjungkarang and covers an area of about 435,000 km[2] . Its width is about 100-200 km in the northern part and about 350 km in the southern part. The Barisan Range, which forms the backbone of Sumatra, runs along the western side of the island.

Sumatra Island is interpreted to have formed as a result of colliding plates. The present structure of Sumatra is a direct result of active subduction. At present the Indian Ocean Plate is being subducted beneath the Eurasian Continental Plate at a rate of 7 cm per annum.

4.2 Regional Geology

The Barisan Mountains are composed of uplifted basement sediments and volcanic units that have been deformed and metamorphosed. Basement sediments, of Upper Palaeozoic to Mesozoic age (Barber et al, 2005), are intruded by granites. Cenozoic sediments and volcanic units overlie the basement succession (figure 3).

Figure 3 Geologic time scale (modified after Stoffer 2006)

==> picture [202 x 273] intentionally omitted <==

Page 11 of 27

==> picture [114 x 28] intentionally omitted <==

Sumatra Island is well endowed with primary gold, tin and base metal deposits and occurrences. The tectonic evolution of the island has resulted in the island undergoing numerous mineralising events, stretching from the present to 280 million years ago. Most of the primary deposits are closely associated with phases of igneous intrusions.

The NW to SE trending Great Sumatran Fault runs along the centre of the Barisan Range for the entire length of the island. A string of volcanic centres occur along the Great Sumatran Fault. Within the Padang area volcanism dominated geological events during the Pleistocene.

The regional geology of area around the tenements has been described by Kastowo et al (1996).

4.3

Local Geology

The most prominent geological features of the area are the two Pleistocene volcanic centres of:

  • Mount Talamau Volcano due north of the licences (shown in pink on figure 4 and photograph 7);

  • Muninjau Caldera due east of the licences (shown in brown on figure 4 and photograph 7)

Nestled between these two volcanic centres is a triangular shaped, low lying coastal plain. The licences are located on this coastal plane and are underlain by silt, sand and gravel beds. Sediments of the coastal plain are derived mainly from the two volcanic centres. Concentrations of heavy minerals within the sediments are thought to have been derived from andesitic lavas. Lavas from the Muninjau Centre are known to contain between 1% and 5% magnetite. It is possible that some of the heavy minerals could have been derived from older rocks further to the west.

Figure 4 Geology of the area around the two licences

==> picture [393 x 278] intentionally omitted <==

Page 12 of 27

==> picture [114 x 28] intentionally omitted <==

Concentrations of heavy minerals sands (HMS) occur as distinct bands within sand beds. During the field visit, HMS units were observed in a number of drainage canals. Field observations were confined to drainage canals because all the excavator pits have been filled in (photograph 1). Profiles studied were generally less than two metres thick. Within the studied profiles the HMS units varied in thickness from 1cm to 40cm (photograph 2 and 3).

During Coziron’s pitting program HMS units of between 30cm and 100cm thick were exposed. These results are encouraging, especially taking into consideration that the deepest excavator pit was only 4 metres deep. No drilling has been done over either of the licences and at this stage the total thickness of the HMS bearing sequence is unknown. Drilling might well prove that the HMS bearing succession is substantially thicker than the 4 metres tested with pitting.

The heavy minerals appear to be mostly magnetite (photographs 4 and 5). Many of the grains still exhibit a good crystal form indicating that the grains have not been transported far. A light green translucent mineral was also observed in hand specimens.

From analysis done by Coziron it can be surmised that the heavy sands also contains rutile and small amounts of zircon.

5. WORK COMPLETED

5.1 Previous exploration

5.1.1 PT GEB Southern Licence

No drilling or pitting has been completed over the PT GEB Southern Licence. Oil palm plantations cover most of this licence.

5.1.2 PT GEB Northern Licence

Over the PT GEB Northern Licence subsistence farming seems to be the main land use. Over this licence an auger drilling program was completed to identify suitable pitting sites. The auger program was follow-up with a pitting program. A total of twenty pits (table 3) were dug with an excavator (figure 5). The deepest pit was 4 metres deep.

Page 13 of 27

==> picture [114 x 28] intentionally omitted <==

Table 3 Test pits dug on PT GEB Northern Licence

Table 3 Test pits dug on PT GEB Northern Licence Table 3 Test pits dug on PT GEB Northern Licence Table 3 Test pits dug on PT GEB Northern Licence Table 3 Test pits dug on PT GEB Northern Licence Table 3 Test pits dug on PT GEB Northern Licence Table 3 Test pits dug on PT GEB Northern Licence Table 3 Test pits dug on PT GEB Northern Licence
Point East **South **
Degrees Minutes Seconds Degrees Minutes Seconds
A 99 48 32.28 0 13 14.32
B 99 48 42.13 0 13 12.52
C 99 48 40.52 0 13 2.49
D 99 48 22.99 0 13 6.61
E 99 48 20.63 0 12 32.75
F 99 48 10.24 0 12 31.44
G 99 48 14.51 0 12 28.93
H 99 48 20.98 0 12 29.63
I 99 48 23.70 0 12 19.29
J 99 48 18.90 0 12 17.16
K 99 48 18.08 0 12 18.67
L 99 48 20.53 0 12 24.81
M 99 48 18.97 0 12 21.11
N 99 48 17.62 0 12 8.34
O 99 48 28.07 0 12 9.74
P 99 48 13.15 0 12 23.40
Q 99 48 0.74 0 12 15.77
R 99 48 3.56 0 12 7.13
S 99 48 8.13 0 12 23.10
T 99 48 16.41 0 12 40.73

The first 4 pits (A, B, C and D) are located towards the southern boundary of the licence. None of these four pits exposed concentrations of HMS. Sixteen pits (E to T) located towards the centre of the licence all exposed concentrations of HMS. The HMS units range in thickness from 30cm to 100cm.

A portable XRF analyser was used to determine the in situ iron content of the HMS units. The iron content of the HMS units ranges from 30 to 40%.

Page 14 of 27

==> picture [114 x 28] intentionally omitted <==

Figure 5 Position of the Test pits dug by excavator

==> picture [412 x 582] intentionally omitted <==

Page 15 of 27

==> picture [114 x 28] intentionally omitted <==

6. CONCLUSION AND RECOMMENDATIONS

Well established oil palm plantations (photograph 6) straddle the access road through the Southern Licence area. Evidently most of the Southern Licence is covered by oil palm plantations. Mining a producing oil palm plantation could be a costly exercise purely from a compensation point of view. Based on this assumption the Southern Licence is regarded as a lower priority exploration target than the northern licence.

The oil palm plantations covering the Southern Licence belong to PT Mutiara Agam. Observations made while driving through the area indicate that this company runs a well organised business. In all probability PT Mutiara Agam has a replanting schedule in place. Some of the plantations are mature and might be scheduled for replanting in the short to medium term. Coziron should engage PT Mutiara Agam to gain insight into this company’s farming practices i.e. replanting schedule. The best scenario for both companies would be if mining of the southern licence can be phased into areas where the plantation needs to be replanted.

In the short term, the Northern Licence will be the focus of the exploration effort. Drilling will be required to assess the full potential of the licence. Before drilling commences additional work is needed to identify the most prospective areas within the Northern Licence.

The world’s highest grade HMS deposits often occur along ancient shorelines and the ore bodies are orientated parallel to the shoreline. On the Padang geology map there are no paleoshorelines mapped within the vicinity of the two licences. There are paleo-shorelines mapped 30 kilometres north of the licences (figure 4). Note how these paleo-shorelines end abruptly where the two geological maps join. It is highly improbable that these paleo-shorelines do not extend southwards. It is highly likely that there are paleo-shorelines developed within the two licence areas. A photo-geological and satellite interpretation is recommended to identify paleoshorelines within the licence areas.

Once the photo-geological and satellite interpretation of the area has been completed the

drilling and geophysics program can be designed.

The coastal plain is underlain by unconsolidated sediments. The area is also extremely wet and marshy in places. It is predicted that the water table sits very close to surface during the rainy season. Auger drilling and RAB drilling are not suitable drilling techniques in this type of terrain. Excessive contamination will render samples which cannot be used to produce a JORC compliant resource estimate. RC drilling will be required to drill this deposit out to JORC compliant standards.

The planned geophysics program should be put on hold until Ravensgate have had an opportunity to discuss the capabilities and the limitations of the proposed technique with the geophysicists from CV Billanda Utama. Ravensgate’s reservations concerning the planned geophysics program are:

  • Based on the paleo-channel model proposed above, the geophysics traverses must run perpendicular to the coast line and not east west as planned.

  • It’s debatable whether a grid spacing of 500m x 1000m will provide sufficient detail to identify drill targets.

  • Will resistivity deliver the desired results? The biggest concern being the water logged nature of the two licence areas.

Finalising the geophysics program should be postponed until a geological interpretation of the area has been completed using aerial photographs and satellite images. If the photo-geological and satellite interpretation does identify paleo-shorelines, drill holes can be planned over these targets immediately. At this stage it is probably premature planning embarking on a geophysics program.

Page 16 of 27

==> picture [114 x 28] intentionally omitted <==

7. REFERENCES

Barber A.J. et al (2005). Sumatra: Geology, Resources and Tectonic Evolution. Geological Society London, Memoir No. 31.

Kastowo et al(1996). Geological Map of the Padang Quadrangle, Sumatera. Geological Research and Development Centre of Indonesia.

Khudeira B. (2008). Agam Iron Sands primary report. Coziron Resources unpublished in house report.

Stoffer (2006) Geologic history of Southern California. USGS.

Rock N.M.S et al(1983). Geological Map of the Lubuksikaping Quadrangle, Sumatra. Geological Research and Development Centre of Indonesia.

Page 17 of 27

==> picture [114 x 28] intentionally omitted <==

APPENDIX 1 PHOTOGRAPHS

==> picture [440 x 294] intentionally omitted <==

Photograph 1 Filled in excavator pit on PT GEB northern licence.

==> picture [440 x 295] intentionally omitted <==

Photograph 2 HMS concentrations exposed in drainage canal on PT GEB northern licence.

Page 18 of 27

==> picture [114 x 28] intentionally omitted <==

==> picture [440 x 294] intentionally omitted <==

Photograph 3 HMS concentrations exposed in drainage canal on PT GEB northern licence.

==> picture [440 x 295] intentionally omitted <==

Photograph 4 Concentrations of heavy minerals at one of the excavator pits

Page 19 of 27

==> picture [114 x 28] intentionally omitted <==

==> picture [440 x 294] intentionally omitted <==

Photograph 5 Magnetite concentrate on magnet

==> picture [440 x 295] intentionally omitted <==

Photograph 6 Oil palm plantations straddling the access road through the PT GEB southern licence.

Page 20 of 27

==> picture [114 x 28] intentionally omitted <==

==> picture [457 x 305] intentionally omitted <==

Photograph 7 Photograph looking north. Maninjau Caldera Lake can be seen in the centre of the image. The highest peak in the back ground is Mount Talamau volcano.

Page 21 of 27

==> picture [114 x 28] intentionally omitted <==

APPENDIX 2 GLOSSARY

DIX 2 GLOSSARY
aerial photography Photographs of the Earth’s surface taken from an aircraft.
aeromagnetic A survey undertaken by helicopter or fixed-wing aircraft for the
purpose of recording magnetic characteristics of rocks by measuring
deviations of the Earth’s magnetic field.
airborne geophysical Data pertaining to the physical properties of the Earth’s crust at or
data near surface and collected from an aircraft.
aircore Drilling method employing a drill bit that yields sample material which
is delivered to the surface inside the rod string by compressed air.
alluvial Pertaining to silt, sand and gravel material, transported and deposited
by a river.
alluvium Clay silt, sand, gravel, or other rock materials transported by flowing
water and deposited in comparatively recent geologic time as sorted
or semi-sorted sediments in riverbeds, estuaries, and flood plains, on
lakes, shores and in fans at the base of mountain slopes and estuaries.
alteration The change in the mineral composition of a rock, commonly due to
hydrothermal activity.
andesite An intermediate volcanic rock composed of andesine and one or more
mafic minerals.
anomalies An area where exploration has revealed results higher than the local
background level.
anticline A fold in the rocks in which strata dip in opposite directions away from
the central axis.
assayed The testing and quantification metals of interest within a sample.
Archaean Older than 2500 million years before present. The oldest subdivision of
the Precambrian Era.
Arkose ( arkosic) A sandstone formed from the disintegration of granite or gneiss, and
characterized by feldspar fragments.
auger drilling A rotary drilling technique which uses a blade drill bit and screw auger
shaft to return sample to the surface.
basalts A volcanic rock of low silica (<55%) and high iron and magnesium
composition, composed primarily of plagioclase and pyroxene.
base metals A non-precious metal, usually referring to copper, lead and zinc.
basin A large depression within which sediments are sequentially deposited
and lithified.
bedrock Any solid rock underlying unconsolidated material.
breccia Rock consisting of angular fragments enclosed in a matrix, usually the
result of persistent fracturing by tectonic or hydraulic means.
brittle Rock deformation characterised by brittle fracturing and brecciation.
Cainozoic An era of geological time spanning the period from 65 million years
ago to the present.
calcite A mineral of composition CaCO3 (calcium carbonate) it is an essential
component of limestones and marbles.
calcrete Superficial residual deposits cemented by or precipitated from
groundwater as secondary calcium carbonate as a result of
evaporation.
carbonate Rock of sedimentary or hydrothermal origin, composed primarily of
calcium, magnesium or iron and CO3. Essential component of
limestones and marbles.
calcrete Superficial residual deposits cemented by or precipitated from
groundwater as secondary calcium carbonate as a result of
evaporation.

Page 22 of 27

==> picture [114 x 28] intentionally omitted <==

chert Fine grained sedimentary rock composed of cryptocrystalline silica.
chlorite A green coloured hydrated aluminium-iron-magnesium silicate mineral
(mica) common in metamorphic rocks.
clastic Pertaining to a rock made up of fragments or pebbles (clasts).
clays A fine-grained, natural, earthy material composed primarily of
hydrous aluminium silicates.
colluvium A loose, heterogeneous and incoherent mass of soil material deposited
by slope processes.
conduits The main pathways that facilitate the movement of hydrothermal
fluids.
conglomerate A rock type composed predominantly of rounded pebbles, cobbles or
boulders deposited by the action of water.
contact Surface which marks the change between rocks of different type.
craton Large, usually ancient, stable mass of the earth’s crust.
Cretaceous The third and final period of the Mesozoic era, between 141 and 65
million years ago.
depletion The lack of a mineral in the near-surface environment due to leaching
processes during weathering.
diamond drill hole Mineral exploration hole completed using a diamond set or diamond
impregnated bit for retrieving a cylindrical core of rock.
dilational Open space within a rock mass commonly produced in response to
folding or faulting.
dip The angle at which a rock stratum or structure is inclined from the
horizontal.
dolerite A medium grained mafic intrusive rock composed mostly of pyroxenes
and sodium-calcium feldspar.
dolomite A rock or mineral composed of calcium and magnesium carbonate.
ductile Deformation of rocks or rock structures involving stretching or bending
in a plastic manner without breaking.
dykes A tabular body of intrusive igneous rock, crosscutting the host strata
at a high angle.
electromagnetic survey A geophysical technique whereby transmitted electromagnetic fields
are used to energise and detect conductive material beneath the
earth’s surface.
eluvial weathered material which is still at or near its point of formation
erosional The group of physical and chemical processes by which earth or rock
material is loosened or dissolved and removed from any part of the
Earth’s surface.
fault zone A wide zone of structural dislocation and faulting.
feldspar A group of rock forming minerals.
felsic An adjective indicating that a rock contains abundant feldspar and
silica.
fluviatile Material transported and deposited in rivers and streams.
folding A term applied to the bending of strata or a planar feature about an
axis.
foliated Banded rocks, usually due to crystal differentiation as a result of
metamorphic processes.
gabbro A fine to coarse grained, dark coloured, igneous rock composed mainly
of calcic plagioclase, clinopyroxene and sometimes olivine.
geochemical Pertains to the concentration of an element.
geophysical Pertains to the physical properties of a rock mass.
GIS database A system devised to present partial data in a series of compatible and
interactive layers.

Page 23 of 27

==> picture [114 x 28] intentionally omitted <==

gneissic Coarse grained metamorphic rocks characterised by mineral banding of the light and dark coloured constituent minerals. granite A coarse-grained igneous rock containing mainly quartz and feldspar minerals and subordinate micas. granitoid A general term to describe coarse grained felsic intrusive igneous rocks resembling granite. granoblastic A term describing the texture of a metamorphic rock in which the crystals are of equal size. granodiorite A coarse grained igneous rock composed of quartz, feldspar and hornblende and/or biotite. greenschist A metamorphosed basic igneous rock which owes its colour and schistosity to abundant chlorite. greenstone belt A broad term used to describe an elongate belt of rocks that have undergone regional metamorphism to greenschist facies. greywackes A sandstone like rock, with grains derived from a dominantly volcanic origin. gypsum Mineral of hydrated, or water-containing, calcium sulphate. halite Impure salt deposit formed by evaporation. hangingwall The mass of rock above a fault, vein or zone of mineralisation. hematite a common iron ore, natural iron oxide that is reddish or brown in colour A zone along a fold where the curvature is at a maximum.

hinge zone horizon

A time - plane discernable in rocks by some characteristic feature such as lithology.

hydrothermal fluids

Pertaining to hot aqueous solutions, usually of magmatic origin, which may transport metals and minerals in solution. Rocks that have solidified from magma.

igneous ignimbrite

a rock formed by the widespread deposition and consolidation of hot volcanic ash flows Refers to sampling or drilling undertaken between pre-existing sample points.

infill Insitu interflow

In the natural or original position.

Refers to the occurrence of other rock types between individual lava flows within a stratigraphic sequence.

intermediate intra-cratonic intrusions intrusive contact isoclinal joint venture komatiite lacustrine laterite

A rock unit which contains a mix of felsic and mafic minerals. Situated between or within cratons.

A body of igneous rock which has forced itself into pre-existing rocks. The zone around the margins of an intrusive rock. A series of folds that dip in the same direction at the same angle. A business agreement between two or more commercial entities. Magnesium-rich mafic to ultramafic extrusive rock. Lake environment.

A cemented residuum of weathering, generally leached in silica with a high alumina and/or iron content. Removal of elements from soil by their dissolution in water and moving downward in the ground. A sedimentary rock containing at least 50% calcium or calciummagnesium carbonate. A significant linear feature of the Earth’s crust, usually equating a major fault or shear structure. The contacts between different rock types. Rock types.

leaching limestone lineament lithological contacts lithotypes

Page 24 of 27

==> picture [114 x 28] intentionally omitted <==

magnetic anomaly Zone where the magnitude and orientation of the earth’s magnetic
field differs from adjacent areas.
magnetite a ferromagnetic mineral form of iron oxide (Fe2O3)
metamorphic A rock that has been altered by physical and chemical processes
involving heat, pressure and derived fluids.
metasedimentary A rock formed by metamorphism of sedimentary rocks.
monzogranite A granular plutonic rock containing approximately equal amounts of
orthoclase and plagioclase feldspar, but usually with low quartz
content.
Mt Million Tonnes.
mylonite A hard compact rock with a streaky or banded structure produced by
extreme granulation of the original rock mass in a fault or thrust zone.
open pit A mine working or excavation open to the surface.
orogen A belt of deformed rocks, usually comprising metamorphic and
intrusive igneous rocks, mostly occurring along the collision zone
between cratons.
Orthoimage A geographically located composite plan using aerial photography as a
base.
outcrops Surface expression of underlying rocks.
oxidising Where oxidizing agents (oxidants) e.g. oxygen are present.
oxidizing agents Species that gain electrons when they oxidize reduced species.
(oxidants)
palaeochannels An ancient preserved stream or river.
palaeo-drainage A preserved, inactive river system in-filled with partially consolidated
fluvial sediments that may continue to carry water in the subsurface.
Paleo-shoreline An ancient preserved shoreline
pedogenic A product of soil processes.
pegmatite A very coarse grained intrusive igneous rock which commonly occurs in
dyke-like bodies containing lithium-boron-fluorine-rare earth bearing
minerals.
Photo-geological Geological interpretation of area utilising aerial photographs.
interpretation
pisolitic Describes the prevalence of rounded manganese, iron or alumina-rich
chemical concretions, frequently comprising the upper portions of a
laterite profile.
playa lake Broad shallow lakes that quickly fill with water and quickly evaporate,
characteristic of deserts.
polymictic Referring to coarse sedimentary rocks, typically conglomerate,
containing clasts of many different rock types.
porphyries Felsic intrusive or sub-volcanic rock with larger crystals set in a fine
groundmass.
ppb Parts per billion; a measure of low level concentration.
Proterozoic An era of geological time spanning the period from 2,500 million years
to 570 million years before present.
pyroxenite A coarse grained igneous intrusive rock dominated by the mineral
pyroxene.
quartz reefs Old mining term used to describe large quartz veins.
quartzofeldspathic Compositional term relating to rocks containing abundant quartz and
feldspar, commonly applied to metamorphic and sedimentary rocks.
quartzose Quartz-rich, usually relating to clastic sedimentary rocks.
Quaternary 0 – 2 million years, the latest period of time in the stratigraphic
column.
RAB drilling A relatively inexpensive and less accurate drilling technique involving
the collection of sample returned by compressed air from outside the

Page 25 of 27

==> picture [114 x 28] intentionally omitted <==

drill rods.
rafts A relatively large block of foreign rock incorporated into an intrusive
magma.
RC drilling A drilling method in which the fragmented sample is brought to the
surface inside the drill rods, thereby reducing contamination.
reducing Where reducing agents (reductants) e.g. carbon are present
reducing agents Species that lose electrons when they reduce oxidized species.
(reductants)
regolith The layer of unconsolidated material which overlies or covers in situ
basement rock.
residual Soil and regolith which has not been transported from its point or
origin.
resources In situ mineral occurrence from which valuable or useful minerals may
be recovered.
rhyolite Fine-grained felsic igneous rock containing high proportion of silica
and felspar.
rock chip sampling The collection of rock specimens for mineral analysis.
saline Salty
sandstone Sedimentary rock comprising predominantly of sand.
saprock Zone of weathered rock preserved within the weathered profile.
saprolite Disintegrated, in-situ rock, partially decomposed by the chemical and
physical processes of oxidation and weathering.
satellite imagery The images produced by photography of the Earth’s surface from
satellites.
schist A crystalline metamorphic rock having a foliated or parallel structure
due to the recrystallisation of the constituent minerals.
scree The rubble composed of rocks that have formed down the slope of a
hill or mountain by physical erosion.
sedimentary A term describing a rock formed from sediment.
sericite A white or pale apple green potassium mica, very common as an
alteration product in metamorphic and hydrothermally altered rocks.
shale A fine grained, laminated sedimentary rock formed from clay, mud
and silt.
sheared A zone in which rocks have been deformed primarily in a ductile
manner in response to applied stress.
sheet wash Referring to sediment, usually sand size, deposited over broad areas
characterised by sheet flood during storm or rain events. Superficial
deposit formed by low temperature chemical processes associated
with ground waters, and composed of fine grained, water-bearing
minerals of silica.
silcrete Superficial deposit formed by low temperature chemical processes
associated with ground waters, and composed of fine grained, water-
bearing minerals of silica.
silica Dioxide of silicon, SiO2, usually found as the various forms of quartz.
sills Sheets of igneous rock which is flat lying or has intruded parallel to
stratigraphy.
silts Fine-grained sediments, with a grain size between those of sand and
clay.
soil sampling The collection of soil specimens for mineral analysis.
stocks A small intrusive mass of igneous rock, usually possessing a circular or
elliptical shape in plan view.
strata Sedimentary rock layers.
stratigraphic Composition, sequence and correlation of stratified rocks.

Page 26 of 27

==> picture [114 x 28] intentionally omitted <==

stream sediment The collection of samples of stream sediment with the intention of sampling analysing them for trace elements. strike Horizontal direction or trend of a geological structure. subcrop Poorly exposed bedrock. sulphide A general term to cover minerals containing sulphur and commonly associated with mineralisation. supergene Process of mineral enrichment produced by the chemical remobilisation of metals in an oxidised or transitional environment. syenite An intrusive igneous rock composed essentially of alkali feldspar and little or no quartz and ferromagnesian minerals. syncline A fold in rocks in which the strata dip inward from both sides towards the axis. talc A hydrous magnesium silicate, usually formed due to weathering of magnesium silicate rocks. tectonic Pertaining to the forces involved in or the resulting structures of movement in the Earth’s crust. Tertiary This is the time period from the end of the Cretaceous to the present time. 65 million years in duration. tholeiitic A descriptive term for a basalt with little or no olivine. thrust fault A reverse fault or shear that has a low angle inclination to the horizontal. transition zone Material or partly oxidised ore intermediate between the oxide zone and the primary zone. ultramafic Igneous rocks consisting essentially of ferromagnesian minerals with trace quartz and feldspar. unconformably Having the relation of uniformity to the underlying rocks; not succeeding the underlying strata in immediate order of age or parallel position. unconformity A term applied to a contact between stratigraphic units emplaced in an interrupted succession and not in parallel position. veins A thin infill of a fissure or crack, commonly bearing quartz. volcaniclastics Pertaining to clastic rock containing volcanic material. volcanics Formed or derived from a volcano. zinc A lustrous, blueish-white metallic element used in many alloys including brass and bronze.

The conclusions and recommendations expressed in this report / table represent the opinions of the Authors based upon the data available and provided to them. The opinions and recommendations provided from this information are in response to a request from the client and no liability is accepted for commercial decisions or actions resulting from them.

Page 27 of 27