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CZR RESOURCES LTD — Interim / Quarterly Report 2017
Jul 26, 2017
64748_rns_2017-07-26_67c8310a-ae6a-4562-972d-f501e1a8d7df.pdf
Interim / Quarterly Report
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Coziron Resources Limited
ABN: 91 112 866 869 Level 24, 44 St George’s Terrace Perth Western Australia 6000 PO Box Z5183 Perth WA 6831 Phone: +61 8 6211 5099 Facsimile: +61 8 9218 8875 Website: www.coziron.com
The Company Announcements Office ASX Limited Via E Lodgement
27 July 2017
Quarterly Activities Report to 30[th] June 2017
Yarraloola Project – West Pilbara
Robe Mesa CID Deposit
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Robe East adds 4.4 Mt of Inferred Resource @ 51.8% Fe (equivalent calcined iron, FeCa of 58.2%) + 9.7% SiO2 + 3.8% Al2O3 + 0.1% P + 10.9% LOI above a cut-off grade of 50% Fe (FeCa>55%) as a contiguous extension of lower zone CID-ore to the Robe Mesa.
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Robe Mesa Deposit with 89.1 Mt now reports as 65.7 Mt of Indicated Resource and 23.4 Mt of Inferred Resource @ 53.7% Fe (equivalent calcined iron, FeCa of 60.1%) + 8.3% SiO2 + 3.5% Al2O3 + 0.05% P + 10.7% LOI above a cut-off grade of 50% Fe (FeCa>55%).
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Robe Mesa Deposit includes 19.5 Mt of Indicated Resource + 5.2 Mt of Inferred Resource @ Fe>55% for a Total Resource of 24.7 Mt @ 56% Fe (equivalent calcined iron, FeCa of 62.7%) + 5.9% SiO2 + 2.7% Al2O3 + 0.04% P + 10.7% LOI.
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2016 RC drilling of the Robe East extension increased the inferred resource and the total tonnage in the Robe Mesa Deposit by 5%.
P08/529 CID Mineralisation
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RC drilling on P08/529, some 4km south of the Robe Mesa, produced a maiden inferred resource of pisolitic ironstone (CID) in the P529 deposit of 4.2 Mt @ 53% Fe (equivalent calcined iron, FeCa of 59.2%) + 9.1% SiO2 + 3.9% Al2O3 + 0.04% P + 10.4% LOI above a cut-off grade of 50% Fe (FeCa>55%).
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Goethitic mineralisation from the pisolitic ironstone in P529 is low phosphorous and low alumina.
Ashburton Magnetite System
- All intercept results from the 10 inclined 200m deep RC holes completed in late 2016 from prospects along 6km of the 12km of strike length were reported.
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Spinifex Ridge has maximum down-hole intercepts with YAR223 reporting 121 m @ 26.4% Fe from 64m and YAR227 with 137 m @ 28.3% Fe from 44m across 300m..
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Intercepts at Rossi Hill indicate a minimum width of mineralisation of 150m, while reconnaissance-phase intercepts at Walrus Ridge indicate prospectivity across a zone of at least 500 m wide.
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All prospects remain open along strike.
Yarrie Project – North Pilbara
- RC drilling of eight vertical RC holes each of 200m depth targeting magnetic and gravity targets within the Egg Creek Prospect for iron-ore commenced.
Project Summaries
Yarraloola Project – West Pilbara
The Yarraloola tenements cover an area of 853 km[2] in the western part of the Hamersley Basin and adjacent parts of the Ashburton Trough in the West Pilbara (Fig 1). The area is well serviced by established infrastructure that includes bitumen roads and gas-pipelines. This provides opportunities to lower the cost of development for any new discoveries. There are also proposals for additional facilities to be developed within the region. BC Iron Ltd has approval for a new haul-road and port at Cape Preston East, while the API joint-venture controls an easement for a railway through the West Pilbara to a proposed port at Anketell Point. These proposed infrastructure corridors traverse the Coziron tenements.
Yarraloola has a basement of Archaean and Proterozoic-aged rocks that are in parts, overlain by younger sediments of the Carnarvon Basin. All the sequences are prospective for iron mineralisation. In the east, Archaean-age sediments in the Hamersley Basin include iron-rich members of the Marra Mamba, Brockman and Boolgeeda Iron Formations. In the central and western parts, Proterozoicage metasediments of the Ashburton Trough have interbedded iron formation. In the south, the Coziron tenements host a portion of the Robe River pisolitic iron-stone. These pisolitic iron-stones are basin margin sediments of the Carnarvon Basin and currently support large-scale mining operations at Warramboo, Mesa A and Mesa J (Fig 1).
Coziron currently has exploration focussed on two prospects.
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The Robe Mesa Deposit on E08/1060 and E08/1686 which contains two intervals of pisolitic ironstone (CID) representing recently deposited material from the Carnarvon Basin (Fig 1).
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Outcrop and subcrop of magnetite-bearing schists in the Proterozoic-aged, Ashburton Trough on tenements E08/1686 and E08/1826 (Fig 1).
Robe Mesa Deposit
Background
The Robe Mesa has an independently calculated JORC-compliant resource estimate which was previously revised in an ASX announcement on the 8[th] of February 2016 and is summarised in the following tables.
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Robe Mesa Deposit – Updated Mineral Resource Estimate from February 2016 – reported above a Fe cut-off grade of 50% .
| Category | Mt | Fe% | SiO2% | Al2O3% | TiO2% | LOI% | P% | S% | **Feca% ** |
|---|---|---|---|---|---|---|---|---|---|
| Indicated | 65.7 | 53.8 | 8.3 | 3.4 | 0.14 | 10.6 | 0.04 | 0.02 | 60.2 |
| Inferred | 18.8 | 53.8 | 8.2 | 3.4 | 0.14 | 10.7 | 0.05 | 0.02 | 60.3 |
| Total | 84.5 | 53.8 | 8.3 | 3.4 | 0.14 | 10.6 | 0.04 | 0.02 | 60.2 |
Robe Mesa Deposit – Updated Mineral Resource Estimate from February 2016 – reported above a Fe cut-off grade of 55% .
| Category | Mt | Fe% | **SiO2% ** | Al2O3% | TiO2% | LOI% | P% | S% | Feca% 62.7 62.7 62.7 |
|---|---|---|---|---|---|---|---|---|---|
| Indicated | 19.5 | 56.0 | 6.0 | 2.7 | 0.10 | 10.7 | 0.04 | 0.02 | |
| Inferred | 5.2 | 56.0 | 5.8 | 2.8 | 0.1 | 10.7 | 0.05 | 0.02 | |
| Total | 24.6 | 56.0 | 5.9 | 2.7 | 0.1 | 10.7 | 0.04 | 0.02 |
The block-model developed from the resource estimation shows that the higher grade resource (Fe>55%) represents contiguous intervals on the upper section of both the lower and upper zone of mineralisation.
The block-model also highlighted opportunities for potential extensions to the east and west of the resource model in areas that were available for drilling. In late 2016, an RC drilling programme that consisted of a total of 42 vertical holes for 1077m was completed over an area to the east of the resource where mapping had identified outcrop of pisolitic iron-stone (Fig 2).
Activities and Results
Following the receipt of all the assay data from the Robe East area, the geological model (Fig 3) and assay database were provided to Payne Geological Services Pty Ltd (PayneGeo) for assessment. The review resulted in an upgrade to the resource estimate for the Robe Mesa and this is summarised in Tables 1 to 3 and Fig 2. Full details were reported to the ASX by CZR on 24[th] April 2017.
The outcome of the Robe East RC drilling resulted in a first-pass delineation of an additional inferred resource which increases the total tonnage in the resource estimate for the Robe Mesa by about 5%. The resource model also shows that the Robe East Extension CID is contiguous with the lower zone mineralisation in the previously drilled area of the Rob Mesa.
Table 1. Robe East Extension – Mineral Resource Estimate as reported in April 2017 above a Fe (iron) cut-off grade of 50% from the 2016 RC drilling programme.
| Category | Tonnes Mt |
Fe % |
SiO2 % |
Al2O3 % |
TiO2 % |
LOI % |
P % |
S % |
Feca % |
|---|---|---|---|---|---|---|---|---|---|
| Inferred | 4.6 | 51.8 | 9.7 | 3.8 | 0.2 | 10.9 | 0.1 | 0.02 | 58.2 |
| **Total ** | 4.6 | 51.8 | 9.7 | 3.8 | 0.2 | 10.9 | 0.1 | **0.02 ** | 58.2 |
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Table 2. Robe Mesa – Updated Total Mineral Resource Estimate as reported in April 2017 above a Fe (iron) cut-off grade of 50%.
| Category | Tonnes Mt |
Fe % |
SiO2 % |
Al2O3 % |
TiO2 % |
LOI % |
P % |
S % |
Feca % |
|---|---|---|---|---|---|---|---|---|---|
| Indicated | 65.7 | 53.4 | 8.5 | 3.49 | 0.15 | 10.75 | 0.06 | 0.02 | 59.9 |
| Inferred | 23.4 | 53.8 | 8.3 | 3.43 | 0.14 | 10.6 | 0.04 | 0.02 | 60.2 |
| **Total ** | 89.1 | 53.7 | 8.3 | 3.45 | 0.14 | 10.7 | 0.5 | **0.02 ** | 60.12 |
Table 3. Robe Mesa – Mineral Resource Estimate for mineralization reported in April 2017 above a Fe cut-off grade of 55%.
| Category | Tonnes Mt |
Fe % |
SiO2 % |
Al2O3 % |
TiO2 % |
LOI % |
P % |
S % |
Feca % |
|---|---|---|---|---|---|---|---|---|---|
| Indicated | 19.5 | 56.0 | 6.0 | 2.7 | 0.10 | 10.7 | 0.04 | 0.02 | 62.7 |
| Inferred | 5.2 | 56.0 | 5.8 | 2.8 | 0.10 | 10.7 | 0.05 | 0.02 | 62.7 |
| Total | 24.7 | 56.0 | 5.9 | 2.7 | 0.10 | 10.7 | 0.04 | 0.02 | 62.7 |
Future Work
A metallurgical test-work programme is planned for the third quarter of 2017. Infill drilling can be used to convert inferred resource to indicated resource.
P08/529 Pisolitic Ironstone RC Drill Programme
Background
Prospecting license P08/529 located on the south-western margin of the Yarraloola Project covers an area of ferruginous detritus associated with the Robe Pisolite system (Fig 1). A total of 17 vertical RC drill-holes for 617 metres were completed and sampled on 1m intervals in the last Quarter (Fig 4).
Current Work Programmes and Results
Following the receipt of all the assay data from Bureau Veritas Laboratories in Perth, the geological model and assay database were provided to Payne Geological Services Pty Ltd (PayneGeo) for assessment. The review produced a maiden inferred resource estimate for the CID-type (ChannelIron) ore intersected on P08/529 and this is summarised in Table 4 and Fig 5. Full details were reported to the ASX by CZR on 9[th] May 2017.
The P529 deposit increases the overall low-phosphorous, low alumina CID-type ore resources delineated by Coziron at a Fe cut-off above 50% (Feca>55%) on the Yarraloola Project by a further 5%.
Table 4. P529 Deposit – Mineral Resource Estimate reported above a Fe (iron) cut-off grade of 50% from the 2016 RC drilling programme.
| Category | Tonnes Mt |
Fe % |
SiO2 % |
Al2O3 % |
TiO2 % |
LOI % |
P % |
S % |
Feca % |
|---|---|---|---|---|---|---|---|---|---|
| Inferred | 4.2 | 53.0 | 9.1 | 3.9 | 0.2 | 10.4 | 0.04 | 0.01 | 59.2 |
| **Total ** | 4.2 | 53.0 | 9.1 | 3.9 | 0.2 | 10.4 | **0.04 ** | **0.01 ** | 59.2 |
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Future Work
The portion of the prospecting lease with the pisolitic iron-stone intercepts is being assessed for infill drilling.
Ashburton Magnetite Project
Background
The Ashburton Magnetite Project covers a high-order, magnetic target some 12km long and 1km wide on tenements E08/1826 and E08/1686 in the West Pilbara (Fig 1). The project lies in the Ashburton Basin some 15km west of the contact with metasediments of the Hammersley Basin. Mapping, drilling and petrographic studies have established that the magnetite in the iron formation is associated with chlorite, sericite and carbonate-bearing siliceous rocks (ASX: report 15[th] March 2017). The weathering interface is shallow and typically ends at about 30 m below surface. The drillintercepts to date are also characterised by low sulphide content and an absence of asbestiform minerals.
Assay intercepts with Fe>20% are produced from down-hole intervals with magnetic susceptibility ranging from 10,000-60,000 SI units. These intervals report magnetite mass-recovery up to 42% with Fe greater than 67% and SiO2 less than 5% at a measured P80 of 22 microns. The broadest intercepts, higher mass yields (greater than 25%) and better quality concentrates (Fe greater than 76% and SiO2 less than 5%) have been reported from drill-holes into the Spinifex Hill and Rossi Hill areas (ASX: report 28[th] April 2016, 3[rd] August 2016).
Work Programmes and Results
In late 2016 a RC drill programme on the Ashburton magnetite project completed 10 inclined (-60) holes to 200m deep to compliment previously reported results from the 2014 and 2015 drill programs. The 2016 holes were completed to better determine the distribution and grade of mineralisation at the Spinifex Hill, Rossi (previously Discovery North) and Walrus Ridge (previously Discovery South) prospects (Table 1; Fig 7). During drilling, samples were logged for geology and magnetic susceptibility and sampled for geochemistry on 1m intervals. Drill-hole locations and a summary of the iron-suite assay down-hole intercepts through intervals with magnetic susceptibility greater than 10,000 SI units and sub-divided into the Spinifex Hill, Rossi and Walrus Ridge prospects are presented in Table 5 and a representative cross-sections as Figs 8. Full details were reported to the ASX by CZR on 1-June-2017.
At Spinifex Hill, a cross-section with the interpreted geology and down-hole intercepts indicates that the zone of higher grade (Fe >25%) magnetite mineralisation is at least 300m wide (Fig 8) and intercepts are now reported along a strike length of about 500m. At Rossi Hill, the two holes drilled on a new section of the prospect produced down-hole intercept across a zone of mineralisation that is at least 150m wide. While at Walrus Ridge, towards the southern portion of the Ashburton magnetite project, results from the 2014 to 2016 drilling programmes indicate an intercalation of magnetite-bearing intervals with volcaniclastic rocks extends across a zone that is over 500m wide.
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Table 2. Summary of the geochemistry of the down-hole intercepts with magnetic susceptibility greater than 10,000 SI units.
Spinifex Hill Prospect
| HoleID | From | To | Interval | Fe | Fe-max | SiO2 | Al2O3 | TiO2 | CaO | MnO | P | S | MgO | K2O | Na2O | LOI | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| YAR222 | 3 | 33 | 30 | Ox | 29.29 | 35.09 | 48.95 | 4.17 | 0.41 | 0.23 | 0.14 | 0.102 | 0.003 | 0.58 | 0.32 | 0.07 | 2.91 |
| YAR222 | 63 | 95 | 32 | Ox | 28.70 | 35.75 | 49.89 | 3.76 | 0.14 | 0.36 | 0.19 | 0.112 | 0.004 | 1.89 | 0.62 | 0.19 | 1.62 |
| YAR223 | 0 | 20 | 20 | Ox | 26.33 | 33.04 | 48.10 | 4.51 | 0.19 | 2.62 | 0.09 | 0.049 | 0.012 | 0.81 | 0.47 | 0.06 | 5.09 |
| YAR223 | 43 | 59 | 16 | Ox/fr | 27.65 | 34.19 | 50.52 | 2.40 | 0.18 | 1.22 | 0.10 | 0.143 | 0.024 | 2.35 | 0.49 | 0.13 | 2.49 |
| YAR223 | 64 | 185 | 121 | 26.37 | 36.51 | 48.46 | 3.45 | 0.20 | 2.15 | 0.16 | 0.128 | 0.075 | 2.77 | 1.19 | 0.51 | 2.79 | |
| YAR224 | 0 | 18 | 18 | Ox | 25.37 | 34.09 | 49.74 | 7.68 | 0.44 | 0.59 | 0.08 | 0.025 | 0.009 | 0.44 | 0.22 | 0.07 | 4.12 |
| YAR224 | 37 | 115 | 78 | Ox/fr | 28.89 | 34.40 | 47.43 | 2.28 | 0.15 | 1.92 | 0.20 | 0.128 | 0.037 | 2.58 | 0.82 | 0.40 | 2.37 |
| YAR224 | 139 | 198 | 59 | 29.89 | 34.61 | 45.57 | 2.24 | 0.14 | 2.03 | 0.18 | 0.126 | 0.037 | 2.60 | 0.99 | 0.44 | 2.53 | |
| YAR225 | 122 | 134 | 12 | 23.44 | 29.21 | 50.19 | 4.17 | 0.24 | 3.26 | 0.27 | 0.092 | 0.129 | 2.32 | 1.34 | 0.41 | 3.58 | |
| YAR225 | 166 | 200* | 34 | 28.83 | 34.49 | 47.56 | 1.89 | 0.08 | 2.28 | 0.17 | 0.125 | 0.045 | 2.32 | 0.76 | 0.38 | 2.80 | |
| YAR226 | 5 | 15 | 10 | Ox | 26.34 | 28.59 | 52.76 | 3.38 | 0.32 | 0.96 | 0.07 | 0.054 | 0.006 | 0.76 | 0.27 | 0.05 | 3.63 |
| YAR226 | 43 | 51 | 8 | Ox | 26.24 | 29.69 | 50.90 | 4.94 | 0.19 | 0.37 | 0.09 | 0.118 | 0.002 | 1.98 | 0.82 | 0.03 | 2.86 |
| YAR226 | 63 | 70 | 7 | Ox | 27.78 | 30.53 | 50.52 | 4.08 | 0.14 | 0.39 | 0.14 | 0.119 | 0.002 | 1.76 | 0.66 | 0.06 | 2.25 |
| YAR226 | 85 | 141 | 56 | 29.22 | 31.32 | 47.51 | 1.91 | 0.07 | 2.52 | 0.14 | 0.121 | 0.042 | 2.55 | 0.89 | 0.31 | 2.00 | |
| YAR226 | 153 | 174 | 21 | 21.52 | 33.21 | 48.16 | 7.40 | 0.43 | 2.66 | 0.13 | 0.114 | 0.091 | 3.82 | 1.76 | 1.12 | 3.30 | |
| YAR226 | 186 | 200* | 14 | 22.76 | 34.10 | 46.78 | 5.44 | 0.27 | 3.31 | 0.13 | 0.098 | 0.054 | 5.59 | 0.59 | 0.12 | 4.97 | |
| YAR227 | 44 | 181 | 137 | Ox/Fr | 28.32 | 36.01 | 46.93 | 2.55 | 0.14 | 2.22 | 0.17 | 0.124 | 0.029 | 2.65 | 0.77 | 0.37 | 3.29 |
| YAR227 | 192 | 198 | 6 | 27.84 | 36.31 | 45.83 | 2.45 | 0.11 | 2.67 | 0.13 | 0.156 | 0.113 | 3.70 | 0.63 | 0.22 | 3.78 |
*= hole terminated in mineralisation
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Table 2 (cont). Summary of the geochemistry of the down-hole intercepts with magnetic susceptibility greater than 10,000 SI units.
Rossi Hill Prospect
| HoleID | From | To | Interval | Fe | Fe_max | SiO2 | Al2O3 | TiO2 | CaO | MnO | P | S | MgO | K2O | Na2O | LOI | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| YAR228 | 0 | 7 | 7 | Ox | 29.98 | 25.21 | 45.61 | 4.28 | 0.16 | 1.91 | 0.06 | 0.032 | 0.008 | 0.40 | 0.34 | 0.03 | 4.07 |
| YAR228 | 15 | 97 | 82 | Ox/fr | 32.15 | 35.14 | 45.58 | 3.20 | 0.21 | 0.52 | 0.10 | 0.129 | 0.018 | 1.49 | 0.67 | 0.23 | 1.57 |
| YAR228 | 122 | 135 | 13 | 20.26 | 39.88 | 51.10 | 7.22 | 0.24 | 1.79 | 0.16 | 0.094 | 0.066 | 2.73 | 2.20 | 0.71 | 4.28 | |
| YAR229 | 21 | 73 | 52 | Ox/fr | 29.91 | 23.09 | 45.30 | 3.61 | 0.38 | 1.38 | 0.11 | 0.115 | 0.025 | 2.36 | 1.01 | 0.34 | 2.28 |
| YAR229 | 108 | 156 | 48 | 31.44 | 37.28 | 44.71 | 2.48 | 0.19 | 2.24 | 0.07 | 0.096 | 0.038 | 2.06 | 0.65 | 0.35 | 1.88 | |
| YAR229 | 190 | 198 | 8 | 20.00 | 37.44 | 50.22 | 7.41 | 0.33 | 2.09 | 0.15 | 0.099 | 0.081 | 3.32 | 2.15 | 0.82 | 4.32 |
*= hole terminated in mineralisation
Walrus Ridge Prospect
| HoleID | From | To | Interval | Fe | Fe_max | SiO2 | Al2O3 | TiO2 | CaO | MnO | P | S | MgO | K2O | Na2O | LOI | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| YAR230 | 4 | 37 | 33 | Ox | 28.07 | 23.57 | 52.52 | 3.42 | 0.20 | 0.12 | 0.09 | 0.089 | 0.007 | 0.22 | 0.37 | 0.04 | 2.68 |
| YAR230 | 45 | 76 | 31 | Ox/fr | 29.16 | 31.48 | 50.28 | 3.30 | 0.28 | 0.28 | 0.15 | 0.113 | 0.019 | 0.82 | 0.63 | 0.03 | 2.23 |
| YAR230 | 100 | 104 | 4 | 20.48 | 32.25 | 53.71 | 4.69 | 0.14 | 1.92 | 0.14 | 0.080 | 0.131 | 2.34 | 1.22 | 0.39 | 5.64 | |
| YAR230 | 112 | 161 | 49 | 24.07 | 34.71 | 47.51 | 3.28 | 0.22 | 3.58 | 0.20 | 0.104 | 0.105 | 3.08 | 0.67 | 0.25 | 6.36 | |
| YAR230 | 186 | 190 | 4 | 25.99 | 37.22 | 45.35 | 3.56 | 0.29 | 2.94 | 0.16 | 0.082 | 0.078 | 3.63 | 0.62 | 0.16 | 5.78 | |
| YAR231 | 25 | 89 | 64 | Ox/Fr | 28.83 | 21.97 | 50.06 | 3.57 | 0.22 | 0.34 | 0.22 | 0.122 | 0.064 | 0.87 | 0.68 | 0.04 | 2.33 |
| YAR231 | 115 | 128 | 13 | 31.20 | 32.05 | 43.52 | 2.46 | 0.15 | 2.10 | 0.11 | 0.106 | 0.041 | 2.47 | 0.56 | 0.30 | 3.38 | |
| YAR231 | 133 | 137 | 4 | 19.57 | 35.77 | 52.24 | 6.87 | 0.24 | 2.61 | 0.11 | 0.106 | 0.076 | 3.22 | 0.86 | 0.62 | 4.83 | |
| YAR231 | 145 | 151 | 6 | 28.40 | 36.12 | 45.98 | 3.67 | 0.13 | 2.40 | 0.14 | 0.132 | 0.199 | 2.43 | 0.81 | 0.62 | 2.58 | |
| YAR231 | 173 | 200* | 27 | 31.98 | 38.49 | 44.31 | 2.40 | 0.19 | 1.73 | 0.09 | 0.102 | 0.032 | 2.22 | 0.68 | 0.33 | 2.02 |
*= hole terminated in mineralisation
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Future Work
Mineralogical studies are continuing to provide data that has relevance to the design and development of a magnetite recovery circuit. Additional diamond drilling and sampling of the core will be required to map the extent and distribution of the carbonate-facies iron formation in the Ashburton system.
Yarrie Project – West Pilbara
Background
Coziron Resources owns a 70% interest in the Yarrie Project which consists of six exploration licences (four granted; E45/3725, E45/3728, E45/4065, E45/4433 and two applications; E45/4604, E45/4605) that cover a total of 419km[2] , about 160km east of Port Hedland (Fig 10). Yarrie is serviced by bitumen and gravel roads and a natural gas pipeline between Pt Hedland and the Telfer copper-gold mine. The BHPB-owned rail connection between the Yarrie mining area and Port Hedland also services this area. The tenements have the potential to host high-grade (+62% Fe) iron-ore deposits within the magnetically active Archaean-age Nimingarra Iron Formation and cover extensions of the prospective rocks that host the Nimingarra to Yarrie deposits which, until recently, were actively mined by BHP Billiton PLC (BHPB; Fig 8).
In addition, there is the potential for gold and base-metals associated with a strongly deformed, mixed mafic to ultramafic volcanic suite and interbedded metasediments. The area is largely underexplored because the prospective areas are generally overlain by younger rocks.
Activities
Field activities on the Yarrie Project commenced during the quarter. The first RC drilling programme by the Company at Yarrie is focussed on the Egg Creek Prospect, which is interpreted as the eastern extension of magnetic rocks from the Nim A iron-ore deposit which was mined by BHPB. The eight vertical drill-holes to 200m depth are focussed on four geophysical targets outlined by responses from gravity and magnetic surveys that cover the Egg Creek Prospect (Fig 9). The drilling will provide data on the depth of sand overburden and the underlying geology. Results will be reported when they are available.
Shepherds Well Project – West Pilbara
No significant activity was undertaken during the quarter.
Buddadoo Project – West Yilgarn
No significant work was undertaken during the quarter.
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Fig 1. Location of the Robe Mesa and P529 deposits and magnetite-schists in the Ashburton Trough on the Yarraloola Project, West Pilbara of Western Australia.
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Fig 2. Robe Mesa and Robe east Extension on tenements E08/1060 and E08/1686 with 1m interval elevation contours distribution of the upper and lower Robe Mesa pisolitic ironstones with the locations of the 2014, 2015 and 2016 RC and Sonic drill-holes.
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Fig 3. Interpreted geological cross-section on 75933950N (from Fig 1) with a 10 times vertical exaggeration showing the down-hole intervals from the 2014 and 2015 RC-drill-holes on the Robe Mesa deposit 2016 RC drill-holes on the Robe Mesa Extension reporting Fe>50% (calcined Fe>55%).
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Fig 4. Location of the 2016 RC drill-collars on prospecting licence P08/529.
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Fig 5. Interpreted south-north geological cross-section on 349970 E between YAR 218 and YAR 206 (from Fig 1) with a 10 times vertical exaggeration showing the down-hole intervals (in red) from the 2016 RC-drill-holes on the P08/528 reporting Fe>50% (calcined Fe>55%).
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Fig 6. RC and diamond drill-collars for the magnetite-bearing sequence in the Ashburton Trough overlain on the 1VD magnetic imagery. (Green circles = 2014 RC, Yellow = 2015 diamond-hole, Red = 2015 RC and Purple = labelled 2016 RC).
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Fig 7. Spinifex Hill interpreted geological cross-section with YAR100 and YAR101 from 2015 RC programme and YAR226 from the 2016 programme showing the magnetic susceptibility and Fegrade as down-hole intercepts.
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Fig 8. Regional setting of the Yarrie Project overlain onto the first vertical derivative of the airborne magnetic response with areas with the greatest intensity (red) attributed to the Nimingarra Iron Formation.
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Fig 9 Location of the RC-drill pads on the Egg Creek Prospect with the total magnetic intensity as a back-ground and the location of the Nim A Iron-ore deposit which was mined by BHP Billiton Ltd.
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ABOUT COZIRON RESOURCES LIMITED
Coziron Resources Limited has exploration focussed on the Yarraloola (853km[2] of granted tenements) and Buddadoo (210km[2] granted) Projects and an option over Shepherd Well (193km[2] ) and Yarrie (357.5km[2] ). The Yarraloola, Buddadoo, Shepherds Well and Yarrie projects have iron-ore as the principal exploration target (Fig 10).
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Fig 10. Location of the Coziron Resources Ltd projects in Western Australia.
For further information please contact Adam Sierakowski on 08 6211 5099.
COMPETENT PERSONS STATEMENT
The information in this report that relates to mineral resources and exploration results is based on information compiled by Rob Ramsay (BSc Hons, MSc, PhD) who is a Member of the Australian Institute of Geoscientists. Rob Ramsay is a full-time Consultant Geologist for Coziron and 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 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Rob 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.
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Coziron Resources Ltd – Changes to the Tenement Schedule in the past Quarter
| Project | Location | Tenement Number |
Economic Entity's Interest at Quarter End |
Change in Economic Entity's Interest During Quarter |
|---|---|---|---|---|
| Yarraloola | West Pilbara,WA | E08/1060 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/1684 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/1685 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/1686 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/1824 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/1825 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/1826 | 85% | No Change |
| Yarraloola | West Pilbara,WA | E08/2408 | 100% | No Change |
| Yarraloola | West Pilbara,WA | P08/529 | 85% | No Change |
| Yarraloola | West Pilbara,WA | P08/666 | 100% | No Change |
| Yarraloola | West Pilbara,WA | P08/669 | 100% | No Change |
| Shepherds Well |
West Pilbara, WA | E08/2361 | 70% | No Change |
| Yarrie | East Pilbara,WA | E45/3725 | 70% | No Change |
| Yarrie | East Pilbara,WA | E45/3728 | 70% | No Change |
| Yarrie | East Pilbara,WA | E45/4065 | 70% | No Change |
| Yarrie | East Pilbara, WA | E45/4604 | 70% | No Change |
| Yarrie | East Pilbara, WA | E45/4605 | 70% | No Change |
| Yarrie | East Pilbara,WA | E45/4433 | 100% | No change |
| Buddadoo | Mid-west,WA | E59/1350 | 85% | No Change |
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