AI assistant
CZR RESOURCES LTD — Capital/Financing Update 2015
Aug 3, 2015
64748_rns_2015-08-03_cdd4ecb7-c15d-4d91-b6d3-97d7a2e47e9c.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
==> picture [165 x 62] intentionally omitted <==
Coziron Resources Limited
ASX Code: CZR
Contact Details
The Company Announcements Office ASX Limited via E-Lodgement
4 August 2015
Level 24, 44 St Georges Tce Perth WA 6000
PO Box Z5183 Perth WA 6831
T +61 (0) 8 6211 5099 F +61 (0) 8 9218 8875 E [email protected] W www.coziron.com
Yarraloola Project – RC and Diamond Drilling Update – Drilling confirms initial indications of the significant extent of magnetite mineralisation in the Ashburton Trough
ABN 91 112 866 869
Highlights
Board of Directors
Adam Sierakowski Non-Executive Chairman
Dr Rob Ramsay Non-Executive Director Senior Geologist
-
RC and diamond drilling on the Ashburton and Robe Mesa Prospects in the Yarraloola Iron-ore Project is progressing ahead of schedule.
-
°
-
The Ashburton programme of 16 inclined (-60 ) RC holes, each to a depth of 198m, for a total of 3168m, is complete. Geology and magnetic susceptibility was recorded on each hole and representative 1-metre samples have been dispatched by truck to Perth for geochemical analysis. Sampling for Davis Tube is being prioritised.
Steve Lowe
Non-Executive Director
-
Highly magnetic intervals were recorded in all holes. The maximum continuous down-hole intercept is 85m from YAR095. However, some holes are collared in and some holes ended in highly magnetic rocks.
-
The longest cumulative intercept is 151 meters from YAR100.
-
Ashburton diamond drilling which is EIS co-funded has commenced. The first hole was completed at 528m depth and shows an intercept of about 80m of magnetite-bearing rocks in the lower part of the hole.
-
The mostly 50m-spaced Ashburton holes represent partial testing across eight sections that were accessible with minimal surface disturbance on different magnetic anomalies along the 12km strike length of the system.
-
Infill drilling of the Robe Mesa Inferred CID Resource is underway and more than 50% complete. Progress and results will be reported separately
1
RC and DIAMOND DRILLING PROGRAM
Coziron is pleased to announce that the follow-up reverse-circulation (RC) and diamond drilling programmes on the two most advanced prospects, namely the Robe Mesa and magnetic anomalies in the Ashburton Trough (Fig 1), on the Yarraloola Project are progressing ahead of schedule.
The Robe Mesa CID prospect drilled in 2014 with 23 RC holes delivered a maiden Inferred-Resource of pisolitic ironstone (CID) reported as a total of 73.1Mt @ 53.9% Fe + 8% SiO2 + 3.4% Al2O3 + 0.04% P + 10.8% LOI (using a cut-off of Fe = 50%; CZR:ASX on 3[rd] Feb 2015). The current infill RC programme of 50 holes and a larger diameter diamond-core programme of two holes for metallurgical studies is underway and will be reported separately (Fig 1).
The Ashburton Trough prospect consists of high-order magnetic anomalies that extend for a strike length of about 12km. Results from two RC drill-holes completed in 2014 indicated intercept widths, Fe-grades and magnetite yields typical of similar magnetite deposits currently being mined. In comparison with other magnetite deposits in the Hamersley Basin of Western Australia, the Ashburton mapping and drilling has not encountered any blue asbestos. The 2015 drilling of 16 inclined (-60°) RC holes to around 200m each into the magnetic anomalies in the Ashburton Trough is complete (Fig 2).
In addition to the RC-drilling of the Ashburton sequence, a programme of 3 diamond holes, each to about 500m is currently underway. This programme was developed through a joint-funding EIS grant from the Government of Western Australia. The first diamond hole, YARDDH001, has been completed at 528m and the second hole is underway and at a depth of about 120m (Fig 2).
Drilling of the magnetic targets in the Ashburton was preceded by some additional mapping of the outcrop. This work showed the sequence hosting the magnetite-rich rocks has an unconformable relationship with other components of the Ashburton Trough, a more extensive deformation history and represents a sub-terrain within the Ashburton sequence at Yarraloola. Results from the additional work showed that the major lithologies in the Ashburton sequence which are prospective for magnetite, dip steeply to the south-west. The work resulted in the planned drill-hole azimuths being modified to 050° to provide a more representative cross-sectional view of the geology.
RC drilling Summary
The 16 inclined (-60°) holes drilled on the Ashburton project were generally drilled in pairs approximately 50m apart, on eight sections at intervals along the 12km of high-order magnetic anomalies. Four of these holes were used to extend sections from the two discovery holes (YAR091 and YAR093) which were completed in 2014. A summary of the RC drill-hole locations is presented in Table 1 and are plotted on Fig 2.
Drilling rates were very high, typically completing over 200m per day which was in excess of what had been expected. This resulted in the programme being completed ahead of schedule.
During drilling, the holes were geologically logged and the magnetic susceptibility of each metre interval was recorded using a hand-held Mag-Rock meter against the RC-drill bags. Representative material from each metre has also collected and has been dispatched to Bureau Veritas Laboratories in Peth for geochemical analysis. Results from the geochemical study will be reported when they become available.
Geological logging shows the drill-holes generally subdivide into the following.
- Highly magnetic, chloritic and siliceous schists
==> picture [92 x 35] intentionally omitted <==
2
- Poorly magnetic, chlorite-rich schists that were characterised geochemically from the 2015 programme as having andesitic to rhyolitic volcanic affinities and appear to be derived from reworking of a continental margin.
The magnetic schists typically have susceptibility readings that are 10,000 to 50,000 times greater than the adjacent rock-types, indicating a greater concentration of magnetic minerals.
There are intercepts of magnetic schist in all the drill-holes and the intervals are reported in Table 2. Follow-up work on the magnetic intercepts includes major and trace-element geochemistry and the selection of intervals for the recovery of magnetite by Davis Tube to provide indications of the mass yield. Some of the chlorite-rich zones report traces of sulphide and these will be assessed for basemetal and gold mineralisation.
Diamond Drilling Summary
Diamond drilling at the Ashburton project is currently in progress. YARDDH001, completed at 528m, is located west of the first RC hole (YAR091) in the southern part of the magnetic anomalies in the Ashburton Trough (Fig 2). The initial log shows the drill-hole is collared in the sequence of schists that appear to unconformably overlie the units that host the highly magnetic rocks. Beneath the contact, the drill-hole intersected a sequence of rhyolitic tuffs and breccias, chlorite-rich schists and metasediments that include volcaniclastics, silts, sands, chert and about 80m of magnetite bearing silts and sands in the lower part of the hole. A more detailed description of the geology is being prepared.
The second diamond drill-hole (YARDDH002) is located towards the centre of the magnetic anomaly system and oriented to examine the geology beneath YAR098 and YAR099 (Fig 2). The hole has been collared and is at a depth of about 120m within a sequence highly magnetic, fine grained sandstones and chloritic schists that are interbedded on 0.1 to 10m interval. The final depth will be at about 500m.
Follow-up work on the holes will include the selection of samples for petrography, trace-element geochemistry and physical property measurements such as compressive strength and mill-index. Results will be reported as they become available.
Ashburton Trough Magnetite Schists – Origin and Comments
The magnetic anomalies in the Ashburton are regarded as a new setting for iron mineralisation in the West Pilbara region. Algoma-style magnetite-mineralisation is characterised by an association with mafic, intermediate and acidic volcanic rocks in an oceanic setting. The sequences typically show evidence of sea-floor hydrothermal activity, which can also be associated with base-metal and gold mineralisation. Typically, there are significant variations in the thickness and grade of magnetite mineralisation and it will inter-finger with host-rock sequences. The associated rock-types which have recently been identified and the setting of the magnetic units in the Ashburton Trough at Yarraloola appears to be consistent with an Algoma-style setting.
The geological logging and magnetic susceptibility readings from the current round of RC drilling in the Ashburton suggest the following;
- Geological evidence indicates that with the exception of the southern four RC holes, each pair is testing a different part of the sequence.
==> picture [92 x 35] intentionally omitted <==
3
-
The maximum down-hole interval of highly magnetic 1m-samples reported during this round of drilling is 85m in YAR095, although some holes were collared in mineralisation and others were completed in mineralisation (Table 2).
-
The cross-sectional extent of the zones that host intervals with high magnetic susceptibility appear to exceed the maximum drilled width of about 300m and further step-out drilling is required.
-
The prospective schist sequence in the northern part of the magnetic anomaly which was examined by RC holes YAR106 to YAR109 is covered by about 40-70m of sands, silts, carbonaceous and conglomeratic rocks attributed to the Cretaceous-age Yarraloola Conglomerate. As such, the percentage of highly magnetic rocks intersected is not truly reflective of the prospectivity of the older sequence for magnetite mineralisation. Further drilling will be required to determine if the anomalies host significant intercepts of material with high magnetic susceptibility.
-
There are a number of additional high priority magnetic anomalies identified from the airborne survey in the Ashburton that are yet to be drill-tested.
-
The first diamond hole YARDDH001 which was collared on the western margin of the southern magnetic anomaly provides the first indications of the range and variation of rocks in the Ashburton sequence. It includes an 80m intersection of magnetic rocks towards the end of the hole.
-
The second diamond hole YARDDH002 towards the centre of the magnetic anomalies has been collared in oxidised magnetite mineralisation and progressed to about 120m with intercepts of highly magnetic rocks and less magnetic chlorite-rich schists. It is to be drilled to a depth of about 500m.
==> picture [92 x 35] intentionally omitted <==
4
Table 1. Summary of the 2015 RC and diamond drill-hole locations within the Ashburton Prospect.
| Drill-hole | Section | E_GDA_Z50 | N_GDA_Z50 | Declination | Azimuth | Depth |
|---|---|---|---|---|---|---|
| YAR094 | Southern Line 1 | 400633 | 7608578 | 60 | 50 | 198 |
| YAR095 | Southern Line 1 | 400584 | 7608557 | 60 | 50 | 198 |
| YAR096 | Southern Line 2 | 400413 | 7608950 | 60 | 50 | 198 |
| YAR097 | Southern Line 2 | 400374 | 7608921 | 60 | 50 | 198 |
| YAR098 | Trailer Line | 399221 | 7611930 | 60 | 50 | 204 |
| YAR099 | Trailer Line | 399172 | 7611914 | 60 | 50 | 198 |
| YAR100 | Spinifex Hill Line | 398272 | 7613234 | 60 | 50 | 198 |
| YAR101 | Spinifex Hill Line | 398240 | 7613217 | 60 | 50 | 198 |
| YAR102 | DiscoveryLine | 397986 | 7614443 | 60 | 50 | 198 |
| YAR103 | DiscoveryLine | 397893 | 7614380 | 60 | 50 | 197 |
| YAR104 | North-East Line | 398042 | 7614951 | 60 | 50 | 198 |
| YAR105 | North-East Line | 398004 | 7614925 | 60 | 50 | 198 |
| YAR106 | Access Line | 396914 | 7616607 | 60 | 50 | 198 |
| YAR107 | Access Line | 396887 | 7616587 | 60 | 50 | 198 |
| YAR108 | Northern Line | 396429 | 7617269 | 60 | 50 | 198 |
| YAR109 | Northern Line | 396291 | 7617182 | 60 | 50 | 198 |
| YARDDH001 | Southern Line 2 | 400368 | 7608912 | 50 | 50 | 528 |
| YARDDH002 | Trailer Line | 399135 | 7611881 | 60 | 50 | prog |
Eastings and Northings in GDA, Zone 50.
Table 2. Summary of the down-hole intervals with elevated magnetic susceptibility readings.
| Drill-hole | **Rock-type ** | From | To | Interval |
|---|---|---|---|---|
| YAR094 | Magnetite Schist | 31.00 | 35.00 | 4.00 |
| Magnetite Schist | 56.00 | 132.00 | 76.00 | |
| Magnetite Schist | 143.00 | 162.00 | 19.00 | |
| 99.00 | ||||
| YAR095 | Magnetite Schist | 36.00 | 61.00 | 25.00 |
| Magnetite Schist | 64.00 | 149.00 | 85.00 | |
| Magnetite Schist | 153.00 | 156.00 | 3.00 | |
| 113.00 | ||||
| YAR096 | Magnetite Schist | 20.00 | 22.00 | 2.00 |
| Magnetite Schist | 28.00 | 42.00 | 14.00 | |
| Magnetite Schist | 47.00 | 51.00 | 4.00 | |
| Magnetite Schist | 63.00 | 102.00 | 39.00 | |
| Magnetite Schist | 152.00 | 158.00 | 6.00 | |
| 65.00 | ||||
| YAR097 | Magnetite Schist | 99.00 | 102.00 | 3.00 |
| Magnetite Schist | 107.00 | 113.00 | 6.00 | |
| Magnetite Schist | 118.00 | 128.00 | 10.00 | |
| Magnetite Schist | 144.00 | 145.00 | 1.00 | |
| Magnetite Schist | 181.00 | 185.00 | 4.00 | |
| 24.00 |
==> picture [92 x 35] intentionally omitted <==
5
| Drill-hole | **Rock-type ** | From | To | Interval |
|---|---|---|---|---|
| YAR098 | Magnetite Schist | 3.00 | 30.00 | 27.00 |
| Magnetite Schist | 34.00 | 52.00 | 18.00 | |
| Magnetite Schist | 61.00 | 79.00 | 18.00 | |
| Magnetite Schist | 84.00 | 88.00 | 4.00 | |
| Magnetite Schist | 92.00 | 94.00 | 2.00 | |
| Magnetite Schist | 104.00 | 116.00 | 12.00 | |
| Magnetite Schist | 122.00 | 136.00 | 14.00 | |
| Magnetite Schist | 144.00 | 151.00 | 7.00 | |
| Magnetite Schist | 155.00 | 162.00 | 7.00 | |
| Magnetite Schist | 165.00 | 176.00 | 11.00 | |
| Magnetite Schist | 183.00 | 188.00 | 5.00 | |
| Magnetite Schist | 196.00 | 201.00 | 5.00 | |
| 130.00 | ||||
| YAR099 | Magnetite Schist | 5.00 | 58.00 | 53.00 |
| Magnetite Schist | 83.00 | 90.00 | 7.00 | |
| Magnetite Schist | 94.00 | 112.00 | 18.00 | |
| Magnetite Schist | 117.00 | 120.00 | 3.00 | |
| Magnetite Schist | 125.00 | 132.00 | 7.00 | |
| Magnetite Schist | 135.00 | 187.00 | 52.00 | |
| Magnetite Schist | 193.00 | 195.00 | 2.00 | |
| 142.00 | ||||
| YAR100 | Magnetite Schist | 43.00 | 120.00 | 77.00 |
| Magnetite Schist | 124.00 | 198.00 | 74.00 | |
| 151.00 | ||||
| YAR101 | Magnetite Schist | 63.00 | 140.00 | 77.00 |
| Magnetite Schist | 155.00 | 160.00 | 5.00 | |
| Magnetite Schist | 164.00 | 198.00 | 34.00 | |
| 116.00 | ||||
| YAR102 | Magnetite Schist | 3.00 | 65.00 | 62.00 |
| 72.00 | 85.00 | 13.00 | ||
| 88.00 | 90.00 | 2.00 | ||
| 107.00 | 111.00 | 4.00 | ||
| 119.00 | 132.00 | 13.00 | ||
| 140.00 | 152.00 | 12.00 | ||
| 164.00 | 180.00 | 16.00 | ||
| 184.00 | 190.00 | 6.00 | ||
| 194.00 | 198.00 | 4.00 | ||
| 132.00 | ||||
| YAR103 | Magnetite Schist | 148.00 | 197.00 | 49.00 |
| 49.00 | ||||
| YAR104 | Magnetite Schist | 36.00 | 52.00 | 16.00 |
| 64.00 | 66.00 | 2.00 | ||
| 82.00 | 104.00 | 22.00 | ||
| 40.00 | ||||
| YAR105 | Magnetite Schist | 71.00 | 106.00 | 35.00 |
| 134.00 | 143.00 | 9.00 | ||
| 44.00 |
==> picture [92 x 35] intentionally omitted <==
6
| Drill-hole | **Rock-type ** | From | To | Interval |
|---|---|---|---|---|
| YAR106 | Magnetite Schist | 73.00 | 87.00 | 14.00 |
| 119.00 | 138.00 | 19.00 | ||
| 33.00 | ||||
| YAR107 | Magnetite Schist | 98.00 | 132.00 | 34.00 |
| 138.00 | 144.00 | 6.00 | ||
| 168.00 | 177.00 | 9.00 | ||
| 49.00 | ||||
| YAR108 | Magnetite Schist | 108.00 | 125.00 | 17.00 |
| 133.00 | 138.00 | 5.00 | ||
| 168.00 | 187.00 | 19.00 | ||
| 41.00 | ||||
| YAR109 | Magnetite Schist | 170.00 | 198.00 | 28.00 |
| 28.00 |
Background – Yarraloola Project
The Yarraloola Project covers an area of 887km[2] in the western section of the Hamersley and an adjacent portion of the Ashburton Trough in the West Pilbara. The tenements are prospective for ironore in the Mara Mamba, Brockman Iron Formation and palaeo Robe River channel system. In early 2015, the Robe Mesa prospect delivered an Inferred Resource of 73.1Mt @ 53.9% Fe + 8% SiO2 + 3.4% Al2O3 + 0.04% P + 10.8% LOI in pisolitic ironstone (CID). The mineralisation is hosted within two horizontal sheets approximately 20m thick separated by 10 to 15m. The upper zone outcrops while the lower zone subcrops in part. Further drilling is required to increase the confidence of the resource, fully define the extent and evaluate the metallurgical characteristics.
In addition, mapping and drilling at Yarraloola has identified magnetite-rich schists within richly chloritic dacitic to rhyolitic volcanics in the Ashburton Trough. In 2014, YAR091 reported 91m @ 25.4% Fe and YAR093 contained 29m @ 31.9% Fe with the initial grind-size analysis suggesting a good quality concentrate from -63microns and mass yields from Davis Tube at about 30%. The geological setting of the Ashburton is indicative of deeper water volcanic-hosted “Algoma-style” magnetite mineralisation and represents a new discovery in the region. Geochemical and mineralogical studies indicate a similar magnetite content to other deposits that are being mined but the initial physical properties study suggested the host-rock is very soft. Further work is required to determine commercial significance of the discovery.
==> picture [92 x 35] intentionally omitted <==
7
==> picture [445 x 630] intentionally omitted <==
Fig 1. Location of Robe Mesa within the Robe River Channel system and the magnetite-schists in the Ashburton Trough on the Yarraloola Project, West Pilbara of Western Australia.
==> picture [92 x 35] intentionally omitted <==
8
==> picture [389 x 563] intentionally omitted <==
Fig 2. RC and diamond drill-collars for the magnetite-bearing sequence in the Ashburton Trough overlain on the 1VD magnetic imagery. (Green circles = 2015 RC, Yellow = 2014 RC, Red = 2015 diamond hole)
For further information regarding this announcement please contact Adam Sierakowski on 08 6211 5099.
Competent Persons Statement
The information in this report that relates to exploration results is based on information compiled by Dr Rob Ramsay (BSc Hons, MSc, PhD) who is a Member of the Australian Institute of Geoscientists. Dr Ramsay is a full-time Consultant Geologist for Coziron. Dr Ramsay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which they have undertaken to qualify as a Competent Persons as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Ramsay has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.
==> picture [92 x 35] intentionally omitted <==
9
Appendix 1 – Reporting of exploration results from the Ashburton Prospect in the Yarraloola Project - JORC 2012 requirements.
| Section 1 Sampling Techniques and Data | Section 1 Sampling Techniques and Data | |
|---|---|---|
| Criteria | JORC Code explanation | Commentary |
| Sampling techniques |
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. |
Samples are derived from 5.5” (140mm) reverse circulation drilling holes with continuous down-hole sampling and HQ and NQ diamond drill-core is available for future work. |
| Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
All RC drill cuttings pass through a continuously operating rotary cone splitter and samples are collected on 1m intervals. During the drilling of each meter, 2-3kg of drill chips were split off and collected in a labelled calico sample bag. Diamond core is continuous and yet to be sampled |
|
| Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. |
The entire 2-3kg drill-chip sample will be crushed, dried and pulverized at Bureau Veritas Laboratories in Perth. Western Australia. A sub sample will be fused and the "extended iron-ore suite" of major oxide and selected trace-element analysis obtained by XRF Spectrometry and laser ablation ICPMS on the disk. Au, Pt Pd is by fire assay. |
|
| Drilling techniques |
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). |
Reverse circulation (RC) holes using a 5.5” (140mm) face-sampling percussion hammer. Diamond drilling uses HQ and NQ recovery. |
| Drill sample recovery |
Method of recording and assessing core and chip sample recoveries and results assessed. |
Sample size was monitored by Geologists during the drilling programme. The volume of sample derived from each meter drilled was approximately equal. |
| Measures taken to maximise sample recovery and ensure representative nature of the samples. |
Standard RC sampling techniques were employed and deemed adequate for sample recovery. Some water was injected into the sample stream during drilling to minimise the loss of fine particles. |
|
| Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
The loss of fine material has been minimized during drilling. Sample recovery is regarded as being representative. |
|
| Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. |
Each metre of reverse circulation chips is described geologically for mineralogy, colour and texture and magnetic susceptibility measured by hand held MagRock metre. No mineral resource estimates are included in this report. |
| Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. |
Logging is qualitative. | |
| The total length and percentage of the relevant intersections logged. |
All drill holes were logged at 1m intervals, for the entire length of each hole. |
|
| Sub-sampling techniques and |
If core, whether cut or sawn and whether quarter, half or all core taken. |
No core samples were collected for this study |
==> picture [92 x 35] intentionally omitted <==
10
Section 1 Sampling Techniques and Data
| Section 1 Sampling Techniques and Data | Section 1 Sampling Techniques and Data | Section 1 Sampling Techniques and Data |
|---|---|---|
| Criteria | JORC Code explanation | Commentary |
| sample preparation |
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. |
Reverse circulation drill chip samples were collected dry and split by a continuously operating rotary cone splitter during drilling. |
| For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
Reverse circulation drilling is an appropriate method of recovering representative samples though the interval of mineralization. The drilling contractor used suitable sample collection and handling procedures to maintain sample integrity. |
|
| Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. |
Duplicate samples were simultaneously collected in mineralized intervals, using the rotary cone splitter. Approximately 1 in 20 duplicate samples were analysed to ensure representivity. |
|
| Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. |
The reverse circulation method samples continuously and the rotary splitter selects a representative proportion of the sample, providing an indication of compositional variations associated with each lithology or mineralized interval. |
|
| Whether sample sizes are appropriate to the grain size of the material being sampled. |
The 2-3kg of homogenized drill chips that was recovered for each sample is sufficient to provide a representative indication of the material being sampled. |
|
| Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. |
No geochemical data is described in this report. |
| For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. |
A hand-held magnetic susceptibility meter was used to record the response from the drill-chips and the response highlights the highly magnetic intercepts of magnetite schist in drill-holes. |
|
| Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. |
No geochemical data is described in this report. | |
| Verification of sampling and assaying |
The verification of significant intersections by either independent or alternative company personnel. |
No independent of alternative company personnel were used to verify the intersections. |
| The use of twinned holes. | The drill intercepts reported are from a first-phase exploratory drill programme. |
|
| Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
No geochemical data is described in this report. | |
| Discuss any adjustment to assay data. | No geochemical data is described in this report. | |
| Location of data points |
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. |
Drill hole locations were derived from a hand held Garmin 72h GPS units, with an average accuracy of ±3m. |
| Specification of the grid system used. | The grid system is MGA GDA94, zone 50, all easting's and northing’s are reported in MGA co-ordinates |
|
| Quality and adequacy of topographic control. |
SRTM90 data is used to provide topographic control and is regarded as being adequate for early stage exploration. |
==> picture [92 x 35] intentionally omitted <==
11
Section 1 Sampling Techniques and Data
| Section 1 Sampling Techniques and Data | Section 1 Sampling Techniques and Data | Section 1 Sampling Techniques and Data |
|---|---|---|
| Criteria | JORC Code explanation | Commentary |
| Data spacing and distribution |
Data spacing for reporting of Exploration Results. |
The drill holes are located to examine the sub-surface geology associated with different magnetic targets within the Ashburton Trough sequence. |
| Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. |
No Mineral Resources or Ore Reserve estimations are being presented in this report. |
|
| Whether sample compositing has been applied. |
No geochemical data is described in this report. | |
| Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, |
Mineralization is contained within a sequence that dips at about 70 to the south-west |
| considering the deposit type. | ||
| If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. |
The drill orientation was selected to minimise any sampling bias. |
|
| Sample security | The measures taken to ensure sample security. |
Samples are collected, labelled, packed in bulka bags and transported by RGR Transport from site directly to Bureau Veritas laboratories in Perth. |
| Audits or reviews | The results of any audits or reviews of sampling techniques and data. |
No audits or reviews of the sampling techniques and data have been obtained. |
| Section 2 Reporting of Exploration Results | Section 2 Reporting of Exploration Results | |
|---|---|---|
| Criteria | JORC Code explanation | Commentary |
| Mineral tenement and land tenure status |
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. |
All exploration licenses and prospecting licenses owned 85% by Zanthus Resources Ltd and 15% by ZanF Pty Ltd. The tenements are covered by the Kuruma Marthudunera Native Title Claim and relevant heritage agreements are in place. |
| The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
The tenements are in good standing and no known impediments exist. |
|
| Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
In 1990-1991, Aberfoyle Resources held tenements covering the Ashburton Trough which partially overlapped Yarraloola. They collected 26 rock-chip and 73 stream sediment samples for gold and base-metal exploration but encountered no significant results and surrendered the ground. |
| In 1991-1992, Poseidon Exploration Ltd held exploration tenements covering the Ashburton Trough which partially overlapped Yarraloola for base-metals, gold and iron-ore. They collected 54 rock-chips, 236 soil samples, 492 stream sediment samples and completed 159 RAB holes for 2410m but encountered no significant mineralisation and surrendered the tenements. |
==> picture [92 x 35] intentionally omitted <==
12
Section 2 Reporting of Exploration Results
| Section 2 Reporting of Exploration Results | Section 2 Reporting of Exploration Results | Section 2 Reporting of Exploration Results |
|---|---|---|
| Criteria | JORC Code explanation | Commentary |
| In 1997-1998, Sipa Resources NL held tenements over the Ashburton Trough that partially covered Yarraloola for gold and base-metals. A field trip after the interpretation of LANDSAT and air-photos collected six rock-chip samples which failed to detect mineralisation and the tenements were surrendered. |
||
| In 2005-2009, Red Hill Iron Ltd held a tenement 15km northwest of Pannawonica which partially overlapped Yarraloola for gold and base-metal prospectivity. Following and aeromagnetic survey and air-photo interpretation, 16 rock-chips and 207 soil samples were collected but no targets were generated and the ground was surrendered. |
||
| Geology | Deposit type, geological setting and style of mineralisation. |
The eastern section of the Yarraloola tenements covers Archaean-age chemical and clastic sediments overlying basalts in the Hamersley Basin. The western part of the tenements covers deformed Palaeoproterozoic mostly clastic sediments of the Ashburton Trough which are overlain by more recent undeformed detritus associated with the Carnarvon Basin. Sediments of the Hamersley and Carnarvon Basins are known to host economic deposits of iron-ore. The magnetite mineralization described in this report is hosted within graphitic and chloritized volcanic schists of the Ashburton Trough. |
| Drill hole Information |
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: |
|
o easting and northing of the drill hole collar |
Drill hole collar Eastings and Northings are reported using map projection GDA Zone50, entered into an Access database and the map locations have been checked by the competent person. |
|
o elevation or RL (Reduced Level –elevation above sea level in metres) of the drill |
The area has only minor relief and a nominal RL of 140m above sea level from the SRTM90 is used for results in this report. A differential GPS survey is planned to provide future surface control. |
|
| hole collar | ||
o dip and azimuth of the hole |
All holes are -60 to the east. | |
o down hole length and interception depth |
Down hole lengths and intercept depths are calculated from 1m interval samples that are progressively collected as the holes are drilled. |
|
o hole length. |
Hole lengths are reported both on the geological and driller logs, entered into the access database and have been checked by a competent person. |
|
| Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. |
Reported down-hole intercepts have magnetic susceptibility greater than 5000 times the host-rock sequence. The reported intervals provide guidance for future drilling to determine true thickness. No upper cut has been applied. |
==> picture [92 x 35] intentionally omitted <==
13
| Section 2 Reporting of Exploration Results | Section 2 Reporting of Exploration Results | |
|---|---|---|
| Criteria | JORC Code explanation | Commentary |
| Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. |
No geochemical intercepts are reported. | |
| The assumptions used for any reporting of metal equivalent values should be clearly stated. |
No metal equivalents are presented | |
| Relationship between mineralisation widths and intercept lengths |
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. |
The -60 inclined drill-holes are designed to intercept the moderately to steeply dipping geology and obtain sections across the geological units. |
| If it is not known and only the down hole | The relationship of the down-hole widths and the true thickness is yet to be determined. |
|
| lengths are reported, there should be a clear | ||
statement to this effect (eg ‘down hole length, |
||
| true width not known’). | ||
| Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. |
A map of drill-hole locations is shown in Figure 2. There is insufficient data to yet be able to construct geological cross sections. |
|
| Diagrams | Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. |
The intervals reported represent the down-hole intercepts of magnetite rich rocks which are the focus zones for future work |
| Balanced reporting |
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. |
Intervals of samples with elevated magnetic susceptibility. |
| Other substantive exploration data |
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). |
DGPS surveying over the mineralized area, geochemical analysis, quantitative mineralogical studies, along with infill and extensional drilling are being planned. |
| Further work | Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
Areas with high magnetic responses have been identified in Fig 2. |
==> picture [92 x 35] intentionally omitted <==
14