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DATELINE RESOURCES LIMITED — Interim / Quarterly Report 2013
Jan 30, 2014
64793_rns_2014-01-30_3da0ae29-0196-49e6-a86b-1b7097440599.pdf
Interim / Quarterly Report
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Dateline Resources Limited Level 4, 20 Loftus Street Sydney NSW 2000 T: +61 2 8231 6640 F: +61 2 8231 6487 www.datelineresources.com.au [email protected]
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Dateline Resources Limited
(ACN 149 105 653 )
ASX Code: DTR
Investment Highlights
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Australian, ASX listed, copper exploration and development company focussed on Fiji.
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JORC Inferred resource 4.5Mt @ 1.2% Cu, 3.9% Zn, 0.3g/t Au and 29g/t Ag. From surface to 100m depth.
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A number of near surface exploration targets, similar in nature to the resource.
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Field exploration and a 3D IP program has identified a porphyry copper target at Nagasauva.
QUARTERLY ACTIVITIES REPORT As at 31[st] December, 2013
Dateline Resources Limited (“the Company”) is pleased to present it’s Activities Report for the Quarter ended 31[st] December, 2013.
Highlights during the Quarter
Udu Project Fiji
- 100% owned project portfolio.
Capital Structure
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61.3 million ordinary shares
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9 million unlisted options
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50.47% capital held by Directors and Management
Directors & Management
Mark Johnson AO
Chairman
Steve Gemell Non-Executive Director
George Niumataiwalu Non-Executive Director
John Smith
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Drilling confirms significant copper near surface extensions to current JORC Udu Resource :-
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UDH067 – 10.3m @1.82% Cu, 1,41% Zn, 16g/t Ag and 0.11g/t Au from 28m downhole.
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UDH068 - 2m @ 1.03% Cu, 4.84% Zn, 9g/t Ag and 0.07g/t Au from 35 m downhole 7m @ 2.96% Cu, 5.2% Zn, 20g/t Ag and 0.45g/t Au from 42.2m downhole.
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2m @ 1.77% Cu, 6.71%Zn, 30.5g/t Ag and 0.02g/t Au from 54.5m downhole.
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3DIP Survey defines additional VMS/epithermal targets.
Company Secretary
Stewart Capp Exploration Manager
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Contact:
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“Classic Porphyry Copper” Target defined by 3DIP Survey, underlying a copper soil anomaly.
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SPL1494 renewed for 2 year period.
Financial/Corporate
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The Annual General Meeting of shareholders was held in Sydney on 29[th] November, 2013. All resolutions were carried.
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Name change completed from Conto Resources Limited to Dateline Resources Limited.
John Smith
Phone: +61 2 8231 6640 Fax: +61 2 8231 6487 Postal Address:
- New Board appointed – In support of Dateline Resources Limited, all Directors have agreed to zero remuneration in the short term.
P.O. Box 553 South Hurstville NSW 2221 Udu Project Fiji [email protected]
Page 1 of 18
Quarterly Activities Report as at 31[st] December 2013
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Udu Project Update
During the quarter the company completed additional processing of the new 3DIP dataset, aiming to further enhance target definition, and in conjunction with a combined interpretation of the company’s other geophysical, geochemical and geological datasets, to define and prioritise regional targets for further work.
A number of shallow targets with affinities to the mineralisation VMS/epithermal at the Udu Mine have been identified.
The company completed 753m of drilling in 7 holes to test extensions to the inferred resource indicated by initial processing of the 3DIP data. Drilling returned a number of shallow, high grade copper intercepts which confirmed continuity of polymetallic mineralisation down dip and confirmed the mineralisation is open down dip to the south, outside the current inferred resource (Appendix 1). The resource estimate will be revised to include this new information in the first quarter of 2014.
The final interpretation of the 3DIP defined four high priority VMS/epithermal targets, all within 4km of the existing resource. In addition the geophysics suggests some upside to the existing resource, and has defined a highly chargeable target beneath the current resource. The survey also defined a “classic porphyry copper target” at Nagasauva, 3km to the south of the JORC resource at a depth of at least 600m.
Shallow targets (within 100m of surface) are highlighted in Figure 2. The highest priority targets (IP01, IP05, IP11, IP10 and IP20) are all associated with copper in soil geochemical anomalies. Drilling will commence utilising the company’s own drilling equipment which is currently on site in the coming quarter.
Deeper targets (Mine Deeps, IP06) will require mobilisation of a drilling contractor with larger equipment to site.
Two additional regional targets with similarities to the Nagasauva porphyry target have been identified within the companies’ tenements. One of these targets is located within the SPL1494 and is associated with anomalously mineralised porphyry float collected during the companies’ 2013 regional work programmes. Initial observations suggest this target is closer to surface than Nagasauva, and additional soil sampling and mapping of the area to further refine the target is planned for early 2014. A decision to drill a porphyry copper target will be made after all the targets have been assessed.
Lone Wolf Project WA
There has been no activity at the Lone Wolf project during the quarter.
Page 2 of 18
Quarterly Activities Report as at 31[st] December 2013
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Figure 1: Prospect Locations – Udu Project
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Figure 2: Chargeability at -50RL and copper in soils, with shallow IP targets.
Page 3 of 18
Quarterly Activities Report as at 31[st] December 2013
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Figure 4: Regional Magnetics and Porphyry copper target areas.
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Figure 4 - Udu Project B1 to B2 Section View (Refer Figure 2 Plan)
Page 4 of 18
Quarterly Activities Report as at 31[st] December 2013
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Figure 5: Section A1 to A2
Table 1: Summary of drilling completed in the Quarter.
| Northing WGS84 |
Easting WGS84 |
Azimuth UTM |
From M |
To m |
Interval m |
Cu % |
Zn % |
Ag g/t |
Au g/t |
||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Hole | Dip | ||||||||||
| UDH064 | 8210231 | 816899 | 30 | -70 | 56 | 58 | 2 | 0.64 | 0.03 | 1 | 0.02 |
| UDH065 | 8210214 | 816887 | 240 | -60 | NSI | ||||||
| UDH066 | 8210214 | 816887 | 60 | -60 | NSI | ||||||
| UDH067 | 8210280 | 816712 | 149 | -60 | 33 | 43.3 | 10.3 | 1.82 | 1.41 | 16.3 | 0.11 |
| UDH068 | 8210450 | 817157 | 150 | -70 | 38 | 40 | 2 | 1.03 | 4.84 | 9 | 0.07 |
| 45 | 52 | 7 | 2.96 | 5.2 | 20 | 0.45 | |||||
| 58 | 60 | 2 | 1.77 | 6.71 | 30.5 | 0.02 | |||||
| 82 | 84 | 2 | 0.57 | 0.01 | 1 | 0.03 | |||||
| UDH069 | 8210199 | 816762 | 330 | -60 | NSI | ||||||
| UDH070 | 8210178 | 816812 | 60 | -60 | NSI |
Notes:
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Cu – copper; Zn – zinc, Ag – silver; Au - gold
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Intercepts are quoted at a lower cut-off of 0.5% Zn or 0.5% Cu, with up to 2m of internal dilution
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Sampling is generally conducted on 1 metre intervals, with a maximum sample interval of 1.5m in areas of poor core recovery.
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EOH – end of hole
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All samples comprise ½ NQ diamond drill core, cut with chisel or a diamond saw. Drilling recoveries are measured and recorded for individual samples and certified analytical standards have been inserted into the batch at a rate of 1:20. Samples were oven dried, jaw crushed to -6mm, rotary split to a 1,000g sub-sample which was pulverised to 85% <75um. Gold was determined by 50g Fire assay with AA finish with the remaining elements being determined by ICP-AES with four acid digest.
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Core recovery is problematic within some of the mineralised intervals and it is possible that if core recovery had been 100% the results obtained would be different to the results reported in Table 1. At this stage it is impossible to accurately assess whether core lost has resulted in an increase or decrease in the grades of the mineralised intervals.
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Mineralisation is interpreted to be shallowly dipping, hence drill intercept lengths are approximately true widths of mineralisation.
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All collars were located using a handheld GPS and are reported in UTM-WGS84 Zone 60 south
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Additional details of the drilling and sampling may be found in Appendix 2 “Heli-Rig NQTT Samples”
Page 5 of 18
Quarterly Activities Report as at 31[st] December 2013
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- The 3DIP data was acquired by Search Exploration Services (Search) using their own equipment, which consisted of a 64 channel, full waveform receiver and a 30 kVA transmitter. The array used for the bulk of the survey was in the main a double offset dipole-dipole, at Waidere three quarters of a quad offset dipole-dipole array was recorded. The Search receiver measures the full time series voltage difference between each active electrode and a single reference electrode. This enables them to be able to recover the potential difference for any pair of electrodes by simple subtraction. The survey used 50m spaced electrodes for the bulk of the area and 100m spaced electrodes for the Nagasauva grid. From these Search were able to produce data sets at other electrode spacing’s. Search call these multipoles and for the 50m electrode spacing’s they provided 50, 100, 200 and 300m dipoles while for the 100m electrode spacing’s they provided 100, 200, 300 and 400m dipoles. The advantage of acquiring these additional data is that the changing electrode separation produces different sensitivity patterns around the electrode which adds significantly to the resolution of the survey as well as providing additional information at depth. The data was inverted by ExploreGeo Pty Ltd of Perth WA. The algorithm used by, was written by Heng Meng Loke (Loke). In total, 9 separate inversion runs were undertaken using both complex and linear perturbation IP models, trapezoidal and non-uniform meshes, L1 and L2 norms and low error subsets from one inversion as input for a second. The option to compute the model resolution was enabled.
Tenement Schedule
| nement Schedule | |||
|---|---|---|---|
| Project | Number | Ownership | Location |
| Udu | SPL1387 | 100% | Fiji |
| Udu | SPL1396 | 100% | Fiji |
| Udu | SPL1494 | 100% | Fiji |
| Lone Wolf | P37/8113 | 100% | WA |
| Lone Wolf | P37/8114 | 100% | WA |
| Lone Wolf | P37/8187 | 100% | WA |
About Dateline Resources Limited:
Dateline Resources Limited is an Australian-based mineral exploration company with exploration projects in Australia and the Republic of Fiji.
The Udu Polymetallic Project in Fiji hosts an Inferred Resource of 4.5 million tonnes at 1.2% Cu, 3.9% Zn, 29g/t Ag & 0.3g/t Au in accordance with JORC 2012 Guidelines.
The Company plans to focus on exploration and development of the Udu Project and pursue base metals opportunities in Australia and the South Pacific.
For more information, visit .www.datelineresources.com.au
John Smith Company Secretary Ph : +61 2 8231 6640 Fax +61 2 8231 6487 Email : [email protected]
Competent Person Statement
The information in this report that relates to exploration results and mineral resources for the Udu Project is based on information compiled by or work carried out under the supervision of Mr Stewart Capp. Mr Capp is a fulltime employee of Matai Holdings (Fiji) Ltd, a subsidiary of Dateline Resources, Mr. Capp has sufficient experience which is relevant to the styles of mineralisation 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” (the JORC Code). Mr Capp is a member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Capp consents to the inclusion in this report of the information, in the form and context in which it appears.
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Quarterly Activities Report as at 31[st] December 2013
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Appendix 1: Nukudamu Base Metals Project – 2008 Resource Estimate.
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. |
All sampling used in the estimate is diamond drill core, varying in size from PQ, HQ core. All sampling was carried out under the direct supervision of a qualified geologist. |
| Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
Half core samples are collected, with the core cut along a line drawn on the top of the core, as it was placed into the trays by the drillers. The left hand side of the cut core is bagged for submission to a laboratory. |
|
| 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. |
Samples are generally 1m in length, with half core submitted to a laboratory for sample preparation, no sub-sampling is performed in site. In areas of poor core recovery samples may be collected between core blocks to a maximum of 1.5m length. |
|
| 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,bywhat method,etc). |
Drilling used in the estimate comprises PQ and HQ triple tube diamond drilling. |
| Drill sample recovery | Method of recording and assessing core and chip sample recoveries and results assessed. |
Core recovery is measured and recorded individually for each sample and the information stored in the analytical database. |
| Measures taken to maximize sample recovery and ensure representative nature of the samples. |
Large diameter (PQ or HQ) triple tube diamond drilling provides the best core recovery in what is commonly difficult ground conditions both within mineralisation and the surrounding alteration zones. Sample recovery is a significant risk. |
|
| 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. |
Both composite data and individual sample data were compared against core recovery, and there is no relationship between them. However the grade of the material lost is not known, and the impact on the estimate might be either positive or negative. The bulk of the intercepts used in the estimate had recoveries above 80%. |
|
| 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. |
All recent drilling has been geologically and geotechnically logged by qualified geological staff. Historical drilling used in this estimate was geologically logged by qualified geologists, but geotechnical data was not recorded. |
| Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. |
All recent core is photographed prior to being sampled. The photography is stored in a digital format. Half core for all but 4 of 37 holes is stored on site and available for review. |
|
| The total length and percentage of the relevant intersections logged. |
100% of the core was geologically logged. |
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Quarterly Activities Report as at 31[st] December 2013
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| Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken. |
Half core is either cut with a diamond saw, or generated usinga brickies chisel in soft zones. |
|---|---|---|
| If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. |
Not applicable. | |
| For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
All samples were submitted to either Genalysis, Analabs or ALS, where they were dried, crushed and pulverised to 90% passing -80# prior to being sub sampled for a variety of analytical work. The process is considered appropriate given the generally fine grained nature of the mineralisation. The work was conducted to generally accepted industry standards. |
|
| Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. |
Field QC procedures require that certified analytical standard reference materials are submitted at a rate of 1:20. |
|
| 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. |
Re-splitting and re-assaying sub samples and field duplicated has not yet been conducted due to the early stage nature of the project. However analytical pulps and half core are stored so that this work can be undertaken in the future. |
|
| Whether sample sizes are appropriate to the grain size of the material being sampled. |
Sample sizes are considered appropriate due to the fine grained nature of the mineralisation beingsampled(sulphides <1mm). |
|
| 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. |
Holes GPDDH 1 to 4 were submitted to Analabs, Suva • Gold was determined by fire assay • Cu, Pb, Zn, Ag were determined by Acid Digest and ICPMS. • The exact nature of the acid digest is not recorded, it is therefore not possible to say if the digest was complete or partial. Holes MUPDDH1 to 12 were submitted to Analabs, Suva. • Gold was determined by fire assay • Cu, Pb, Zn, Ag were determined by Acid Digest and ICPMS. • The exact nature of the acid digest is not recorded, it is therefore not possible to say if the digest was complete or partial. Holes UDH20 to 40 were submitted to Genalysis Perth • Gold was determined by 50g fire assay. • A multi acid digest was used • Ag, As, Sb, Th, U were determined by ICP • Cu, Pb, Zn, Ni, Co were determined by Flame absorbent Spectrometry. • The acid digest used is considered to be a total digest. |
| 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. |
Not Applicable. | |
| 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. |
Laboratory QA/QC data is available for all analytical jobs. The data suggests an acceptable level of precision was achieved. For holes UDH20 to 40 the company submitted an independent suite of standards at a rate of 1 in 20. Analysis of this data confirms an acceptable level ofprecision was achieved. |
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Quarterly Activities Report as at 31[st] December 2013
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| Verification of sampling and assaying |
The verification of significant intersections by either independent or alternative company personnel. |
No verification has been undertaken to date, do to the early stage nature of the project. Drill core and analytical pulps have been stored so that this work can be undertaken in the future. |
|---|---|---|
| The use of twinned holes. | No drill holes on which this estimate is based have been twined to date. |
|
| Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
All drilling information was recorded on paper on site, then entered into Excel spreadsheets which were subsequently imported into an Access database where they were checked for irregularities on a 1:50 random check back to the paper logs. All information used in the resource estimate was backed up onto CD’s which are filed with the resource report. |
|
| Discuss any adjustment to assay data. | No adjustments have been made to the analytical data. |
|
| 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. |
All drill hole collars were located with a hand held GPS, by taking a number of readings over a period of days and averaging the results. RL was taken from a DTM generated from satellite data. Accuracy is considered to be +/- 5m. Eastman single shot downhole survey data was collected at 30m intervals in UDH020 to 040. No downhole survey data was available for historical drill holes, which were in the main vertical holes. Due to their short lengths (~100m) and the lack of deviation in the holes that were surveyed the unsurveyed holes are considered appropriate for use in an inferred resource. |
| Specification of thegrid system used. | WGS84,UTM Zone 60 South. | |
| Quality and adequacy of topographic control. | The topographic model is a DTM generated from a stero pair of satellite images taken in 2006. |
|
| Data spacing and distribution |
Data spacing for reporting of Exploration Results. | Drilling was conducted on a section spacing of approximately 80m with holes at 40m intervals on each section. Drill spacing is impacted by topographic features. |
| 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. |
Data density is considered sufficient for estimation of an inferred resource, but not sufficient for Ore reserve Estimation. |
|
| Whether sample compositing has been applied. | Samples were collected on 1m intervals, or in zones of poor recovery to a maximum of 1.5m (core run length). No compositing has been applied to theprimarysamples. |
|
| 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, considering the deposit type. |
The bulk of the mineralisation dips at 15 degrees, drilling at angles between vertical and 60ogive approximately true width intercepts. Some mineralisation is hosted in steeply dipping structures. Angled drilling is the preferred orientation, as vertical holes have the potential toproduce biased results. |
| 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 company considers it can identify the structural mineralisation as it is distinctly different visually and compositionally from the stratiform VMS mineralisation. This style of mineralisation comprises approximately half the tonnage of the inferred resource. Further drilling is required to upgrade confidence in thispart of the resource model. |
|
| Sample security | The measures taken to ensure sample security. | The chain of custody for UDH020 to 040 was managed by the company to the point of delivery to an international freight company, the samples were then shipped directly to Genalysis in Perth who managed quarantine and customs permitting. The chain of custody for the other drill holes is unrecorded, however the tenor of the results, and the geology of that drilling is consistent with later drillingand the companyhas no |
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Quarterly Activities Report as at 31[st] December 2013
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| reason to suspect the samples were interfered with. |
||
|---|---|---|
| Audits or reviews | The results of any audits or reviews of sampling techniques and data. |
No external audits or reviews of the sampling techniques and procedures have been conducted to date. |
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. |
The Inferred Resource is located on Special Prospecting License (SPL)1387 which is 100% owned by Matai Holdings Ltd, a wholly owned subsidiary of Dateline Resources Ltd. There are no 3rdparty issues of which the company is aware at this point in time. |
| 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 tenement is currently valid until 22ndof Jan 2015, at which time the tenement may be renewed if the terms of the licence have been met. Currently the company sees no reason whya renewal would not begranted. |
|
| Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
The resource surrounds an abandoned open pit mine which operated as a copper mine in the a1960’s. Limited records of this work exist, and no analytical data is available for the drilling conducted by the mine operator. Exploration post mining and prior to the company’s work comprised surface sampling and mapping, and four diamond drill holes (GPDDH1 to 4) in the 1980’s. |
| Geology | Deposit type, geological setting and style of mineralisation. |
The mineralisation is a hybrid of VMS and epithermal styles wherein both low and high sulphidation styles are recognised, these represent two stages of mineralisation in an evolving hydrothermal system in an emergent basin environment. The mineralisation is hosted in a sequence of felsic dominated sediments deposited into a basin environment, largely sourced from adjacent porphyry. The mineralisation is interpreted be Late Miocene in age. |
| 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: easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. |
See attached table 1 for drill hole collar details, and a table 2, significant intercepts. |
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Quarterly Activities Report as at 31[st] December 2013
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| 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. |
Tabulated results in Table 2 are at either a 0.5% Zn or 0.5% Cu, lower cut off with up to 2m of internal dilution. No upper cut was applied to the data. |
|---|---|---|
| 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. |
Table 2 states higher grade short intercepts which have been incorporated into the broader mineralised zones the procedure for which is documented above. |
|
| The assumptions used for any reporting of metal equivalent values should be clearlystated. |
Not Applicable. | |
| Relationship between mineralisation widths and intercept lengths |
These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). |
See section 1 aboveOrientation of data in relation to geological structure. |
| Diagrams | 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. |
These are included in the resource report held on file. |
| Balanced reporting | 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. |
See Table 2. |
| Other substantive exploration data |
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 contaminatingsubstances. |
Bulk density measurements used in this estimate were measured from drill core. No metallurgical work of significance has been undertaken. |
| Further work | The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). |
Further drilling is required to close off the mineralisation down dip. |
| Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive. |
See resource Report. |
Section 3 – Estimation and Reporting of Mineral Resources
| Criteria | JORC Code Explanation | Commentary |
|---|---|---|
| Database integrity | Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimationpurposes. |
See above Section 1Verification of sampling and assaying |
| Data validation procedures used. | See above Section 1Verification of sampling and assaying |
|
| Site visits | Comment on any site visits undertaken by the Competent Person and the outcome of those visits. |
The author supervised the majority of the drilling utilised in the estimate and has spent considerableperiods of time on site. |
| If no site visits have been undertaken indicate why this is the case. |
Not applicable. |
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| Geological interpretation | Confidence in (or conversely, the uncertainty of) thegeological interpretation of the mineral deposit. |
As more data is collected the geological interpretation will be updated. |
|---|---|---|
| Nature of the data used and of any assumptions made. |
Logging and mapping were the basis of the geological interpretation. Interpretation, as a rule,heavilyrelies on assumptions. |
|
| The effect, if any, of alternative interpretations on Mineral Resource estimation. |
An alternative interpretation will have an impact on the resource estimate. |
|
| The use of geology in guiding and controlling Mineral Resource estimation. |
The geological interpretation was developed first, and then a model of the resource was constructed. |
|
| The factors affecting continuity both of grade and geology. |
These are poorly understood due to the wide spacing of the current drilling, hence classification as inferred. |
|
| Dimensions | The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. |
The mineralisation outcrops, and generally dips at 15o to the south. The resource estimate covers a strike of 800m to a maximum depth of 100m. Mineralisation comprises a number of VMS pods, and structurally hosted epithermal mineralisation. |
| Estimation and modelling techniques |
The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. |
Due to the sparse nature of the drilling and the complexity of the mineralisation resource estimation was undertaken using classical end area sectional techniques, with mineralisation being projected half the distance between each drill section and half the distance between adjacent holes on each section. Intercepts were composited on the basis of a lower cutoff of 0.5% Zinc, with up to 2m of continuous internal dilution included within the composite. Copper, Lead, Gold, Silver and Arsenic grades were composited over the same intervals. Mineralisation has been modelled to a maximum depth of 100m below surface and to a maximum distance of 40m from a drill hole. |
| The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. |
Previous (both unpublished and non JORC compliant) estimates are of similar quanta. Mine production records are not available. |
|
| The assumptions made regarding recovery of by- products. |
No assumptions have been made at this stage, it is considered reasonable to expect Zn, Cu, Au and Ag would contribute to the economics of theproject,if itprogresses to development. |
|
| Estimation of deleterious elements or other non- grade variables of economic significance (eg sulphur for acid mine drainage characterisation). |
The inferred Resource is estimated to contain on average 635ppm of As. No other potentially deleterious elements have been assessed at this stage, and acid mine drainage (AMD) assessments have not been undertaken. |
|
| In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. |
Not Applicable to this estimate. | |
| Any assumptions behind modelling of selective miningunits. |
Not Applicable to this estimate. | |
| Any assumptions about correlation between variables. |
Not Applicable to this estimate. | |
| Description of how the geological interpretation was used to control the resource estimates. |
The modelled mineralisation is based on the geological interpretation. |
|
| Discussion of basis for using or not using grade cuttingor capping. |
A probability plot of the grade data was generated and no outliers were observed. |
|
| The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. |
Not Applicable to this estimate, the model grades are the composited grade of the drill hole. No reconciliation data from historical miningis available. |
|
| Moisture | Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. |
Tonnages were estimated on a dry basis, the moisture content has not been measured. |
| Cut-off parameters | The basis of the adopted cut-off grade(s) or quality parameters applied. |
0.5% Zn or 0.5% Cu was considered to be a reasonable estimate for a cut off grade for this style of mineralisation at the time the estimate was made. |
| Mining factors or assumptions | Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is |
The resource estimate has been undertaken on the premise that the project would be exploited via openpit methods,as a |
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| always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. |
zinc/copper dominant deposit. The resource estimate lies partly beneath a historical open cut copper mine. |
|
|---|---|---|
| Metallurgical factors or assumptions |
The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. |
Preliminary metallurgical test work undertaken in 1998 suggested that it was likely that a payable zinc concentrate could be produced. Further work is required to confirm and optimize these results. The zinc and copper grades in this estimate are head grades, not recoverable grades. |
| Environmental factors or assumptions |
Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. |
Environmental impacts have not been considered in detail; however an open pit mining operation previously operated on the site. The company is collecting environmental data so a baseline is available when environmental impacts are assessed. |
| Bulk density | Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. |
Density data was collected from the core by physically measuring 79, 10 to 20cm long segments of HQ core with engineering callipers, then weighing the core. It was not possible to use the more classical technique of weighing the core in air and water, as the core tends to be porous. Samples of all major rock units and ore types were measured. In future the use of downhole radiometric tools to collect in situ density data should be seriously considered. |
| The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. |
See above. | |
| Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. |
No assumptions were made. |
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| Classification | The basis for the classification of the Mineral Resources into varying confidence categories. |
The estimate was been entirely classified as an Inferred Resource under the 2004 JORC Guidelines. There is no reason to revise this in the light of 2012 guidelines. In order for confidence in the estimate to be upgraded the following work is recommended; 1. All drill hole collars should be picked up by a licensed surveyor. 2. In preference previous drill holes DDHG1to 4 and MUHPDDH1 to 12 would not be utilized in a future estimate as they have not been downhole surveyed and the core is no longer available for review. 3. Consideration should be given to logging future drill holes with a gamma radiation tool in order to collect in situ density data. Further infill drilling is required to increase confidence in the estimate and the geological interpretation, to a density of approximately 20x80m spaced drill holes. |
|---|---|---|
| Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). |
Yes it has. | |
| Whether the result appropriately reflects the Competent Person’s view of the deposit. |
Yes it does. | |
| Audits or reviews. | The results of any audits or reviews of Mineral Resource estimates. |
No audits or reviews of the Mineral resource Estimate have been carried out. |
| Discussion of relative accuracy/ confidence |
Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. |
The estimate has been classified entirely as an Inferred resource, the classification appropriately reflects the confidence level in the mineral resource. |
| The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. |
See above. | |
| These statements of relative accuracy and confidence of the estimate should be compared withproduction data,where available. |
No production data is available. |
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Appendix 2: Nukudamu Base Metals Project – Heli Rig NQTT samples
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. |
All sampling is half diamond drill core, NQ size. |
| Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
Half core samples are collected, with the core cut along a line drawn on the top of the core, as it was placed into the trays by the drillers. The left hand side of the cut core is bagged for submission to a laboratory. |
|
| 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. |
Half core is submitted to a laboratory for sample preparation, no sub-sampling is performed in site. |
|
| 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,bywhat method,etc). |
All samples are diamond drill core NQ size. Drilling is triple tube to improve core recoveries. Core is not orientated. |
| Drill sample recovery | Method of recording and assessing core and chip sample recoveries and results assessed. |
Core recovery is measured and recorded individually for each sample and the information stored in the analytical database. |
| Measures taken to maximise sample recovery and ensure representative nature of the samples. |
Large diameter (PQ or HQ) triple tube diamond drilling provides the best core recovery in what is commonly difficult ground conditions both within mineralisation and the surrounding alteration zones. Poor sample recovery in clay alteration zones is a significantproblem. |
|
| 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. |
Analytical data is compared against core recovery. To date there is no clear relationship apparent between grade and recovery. However the grade of the material lost is not known, and the impact on the overall grade of an intercept might be either positive or negative. |
|
| 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. |
All drilling reported has been geologically and geotechnically logged by qualified geological staff at level suitable to support a mineral resource estimate if required in the future. |
| Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. |
All core is photographed prior to being sampled. The photography is stored in a digital format. Half core for all holes is stored on site and available for review. |
|
| The total length and percentage of the relevant intersections logged. |
100% of the core was geologically logged. |
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| Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken. |
Half core is either cut with a diamond saw, or with a brickies chisel in soft clayeyzones. |
|---|---|---|
| If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. |
Not applicable. | |
| For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
Samples were submitted to ALS Lami, where they were dried, crushed and pulverised to 90% passing -80# prior to being sub sampled for analytical work. The process is considered appropriate given the generally fine grained nature of the mineralisation. The work is conducted to accepted industrystandards. |
|
| Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. |
Field QC procedures require that certified analytical standard reference materials are submitted at a rate of 1:20. |
|
| 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. |
Re-splitting and re-assaying sub samples and field duplicates of ½ core has not yet been conducted due to the early stage nature of the project. However analytical pulps and half core are stored so that this work can be undertaken in the future if required. |
|
| Whether sample sizes are appropriate to the grain size of the material being sampled. |
Sample sizes are considered appropriate due to the fine grained nature of the mineralisation beingsampled(sulphides <1mm). |
|
| 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. |
• Samples were submitted to ALS, Lami for sample preparation, they were oven dried, jaw crushed to - 6mm, rotary split to a 1,000g sub- sample which was pulverized to 85% <75um. • The pulps were then sent via airfreight to ALS Brisbane where: • Gold was determined by 50g Fire assay with AA finish. • Ag, Al, As, Bi, Ca, Cd, Co, Cr, Cu, Fe, K, Li, Mg, Mn, Mo, Na, Ni, P, S, Sb, Sc, Sr, U, V, W, Zn being determined at a variety of detection limits by ICP-AES with four acid digest. • The acid digest used is considered to be a total digest. |
| 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. |
Not Applicable. | |
| 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. |
Laboratory QA/QC data is provided available for all analytical jobs. The data suggests an acceptable level of precision was achieved. The company submits an independent suite of standards. Analysis of this data confirms an acceptable level ofprecision was achieved. |
|
| Verification of sampling and assaying |
The verification of significant intersections by either independent or alternative company personnel. |
No verification has been undertaken to date, do to the early stage nature of the project. Drill core and analytical pulps have been stored so that this work can be undertaken in the future. |
| The use of twinned holes. | At this point in time no drill holes have been twinned. |
|
| Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
All drilling information was recorded on paper on site, then entered into Excel spreadsheets. Hardcopy data is held on file in the Nadi office, and electronic data is stored on a server in the Nadi office which is backed up at regular intervals. |
|
| Discuss any adjustment to assay data. | No adjustments have been made to the analytical data. |
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| 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. |
All drill hole collars were located with a hand held GPS, by taking a number of readings over a period of days and averaging the results. RL was taken from a DTM generated from satellite data. Accuracyis considered to be +/- 5m. |
|---|---|---|
| Specification of thegrid system used. | WGS84,UTM Zone 60 South | |
| Quality and adequacy of topographic control. | The topographic model is a DTM generated from a steropair of satellite images |
|
| Data spacing and distribution |
Data spacing for reporting of Exploration Results. | Drilling was conducted on a section spacing of approximately 80m with holes at 40m intervals on each section. Drill spacing is impacted by topographic features. |
| 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. |
Not applicable | |
| Whether sample compositing has been applied. | Samples were collected on 1m intervals, or in zones of poor recovery to a maximum of 1.5m (core run length). No compositing has been applied to theprimarysamples. |
|
| 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, considering the deposit type. |
The bulk of the mineralisation dips at 15 degrees, drilling at angles between vertical and 60ogive approximately true width intercepts. Some mineralisation is hosted in steeply dipping structures. Angled drilling is the preferred orientation, as vertical holes have the potential toproduce biased results. |
| 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 company considers it can identify the structural mineralisation as it is distinctly different visually and compositionally from the stratiform VMS mineralisation. This style of mineralisation comprises approximately half the tonnage of the inferred resource. Further drilling is required to upgrade confidence in thispart of the resource model. |
|
| Sample security | The measures taken to ensure sample security. | The chain of custody for UDH020 to 040 was managed by the company to the point of delivery to an international freight company, the samples were then shipped directly to Genalysis in Perth who managed quarantine and customs permitting. The chain of custody for the other drill holes is unrecorded, however the tenor of the results, and the geology of that drilling is consistent with later drilling and the company has no reason to suspect the samples were interfered with. |
| Audits or reviews | The results of any audits or reviews of sampling techniques and data. |
No external audits or reviews of the sampling techniques and procedures have been conducted to date. |
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. |
The Inferred Resource is located on Special Prospecting License (SPL)1387 which is 100% owned by Matai Holdings Ltd, a wholly owned subsidiary of Dateline Resources Ltd. |
| 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 tenement is currently valid until 22~~nd~~of Jan 2015, at which time the tenement may be renewed if the terms of the licence have been met. Currently the company sees no reason whya renewal would not begranted. |
|
| Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
The resource surrounds an abandoned open pit mine which operated as a copper mine in the a1960’s. Limited records of this work exist, and no analytical data is available for the drilling conducted bythe mine operator. Exploration |
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| post mining and prior to the company’s work comprised surface sampling and mapping, and four diamond drill holes (GPDDH1 to 4) in the 1980’s. |
||
|---|---|---|
| Geology | Deposit type, geological setting and style of mineralisation. |
The mineralisation is a hybrid of VMS and epithermal styles wherein both low and high sulphidation styles are recognised, these represent two stages of mineralisation in an evolving hydrothermal system in an emergent basin environment. The mineralisation is hosted in a sequence of felsic dominated sediments deposited into a basin environment, largely sourced from adjacent porphyry. The mineralisation is interpreted be Late Miocene in age. |
| 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: easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • hole length. |
See attached table 1 for drill hole collar details, and a table 2, significant intercepts. |
| 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. |
Tabulated results in Table 2 are at either a 0.5% Zn or 0.5% Cu, lower cut off with up to 2m of internal dilution. No upper cut was applied to the date. |
| 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. |
Table 2 states higher grade short intercepts which have been incorporated into the broader mineralised zones the procedure for which is documented above. |
|
| The assumptions used for any reporting of metal equivalent values should be clearlystated. |
Not Applicable. | |
| Relationship between mineralisation widths and intercept lengths |
These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). |
See section 1 aboveOrientation of data in relation to geological structure. |
| Further work | The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). |
Further drilling is required to close off the mineralisation down dip. |
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