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DREADNOUGHT RESOURCES LTD — Interim / Quarterly Report 2020
Apr 29, 2020
64785_rns_2020-04-29_7a79914e-f532-46c9-a89c-b33290f2d928.pdf
Interim / Quarterly Report
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30 April 2020
31 MARCH 2020 QUARTERLY ACTIVITIES REPORT
HIGHLIGHTS
The Board of Dreadnought Resources Ltd (ASX:DRE) (“Dreadnought” or “the Company”) is pleased to provide a summary of activities for the quarter ended 31 March 2020.
Activities and achievements during the quarter included:
Metzke’s Find: Bedrock gold mineralisation was intersected with significant drill intercepts including:
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MZRC012: 2m @ 6.8 g/t Au from 79m including 1m @ 12.5 g/t Au from 80m
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MZRC010: 4m @ 1.9 g/t Au from 64m including 2m @ 3.1 g.t Au from 64m
The mineralised lode remains open along strike and at depth below the deeper mine workings. These workings are concentrated near a 10-15° bend in the mineralised structure which could be controlling bedrock lode mineralisation. This area contains targets that are fully permitted and ready for RC drilling.
Illaara VMS: Four outcropping gossans (Bismarck, Rodney, Reindler’s, Warspite) were identified along the Western and Eastern VMS Horizons. Soil sampling and Ground Fixed Loop EM (“FLEM”) surveys have identified multiple discreet and highly conductive EM anomalies. Rodney produced a strong 8,500Sm conductor with a coincident magnetic anomaly over a mineralised gossan. Warspite produced two strong 3,0004,000Sm conductors aligned with ~500m long mineralised gossan. Drill targets have been generated at Rodney and Reindler’s. Geological mapping is being undertaken at Bismarck and Warspite to define specific drill targets
Chianti-Rufina: Seven large VMS targets characterised by coincident FLEM, magnetic and surface geochemical anomalies were confirmed. These seven high quality VMS targets are fully permitted and ready for RC drilling.
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Figure 1: Location of Dreadnought’s Projects within Western Australia
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au
[email protected] +61 (0) 428 824 343
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Metzke’s Find (E29/1050) (100%)
Metzke’s Find is a hundred-year-old collection of historic workings extending over 700m in strike and up to 30m in depth which have only seen limited shallow drilling in the 1980s and 1990s. The workings appear to have targeted shallow oxide gold along a mineralised quartz impregnated shear zone with some workings extending down into fresh bedrock. The 1980s and 1990s drilling, with an average depth of 24m, returned several mineralised drill intercepts in the shallow oxide portion of the shear. However, this shallow drilling did not test the system at depth or extend to the fresh bedrock mineralisation.
Of the 700m of strike, ~200m has been designated as a water reserve which is an artefact that prevented drilling within the reserve during the quarter. Drilling approvals within the water reserve have since been received.
Approvals were received for RC drilling outside the water reserve and 10 RC holes (MZRC 001-010) were drilled to the north of the reserve and 2 (MZRC 010-012) to the south of the reserve (total of 870m).
Bedrock gold mineralisation was intersected to the north and south of the water reserve with significant drill intercepts including:
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MZRC012: 2m @ 6.8 g/t Au from 79m including 1m @ 12.5 g/t Au from 80m
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MZRC010: 4m @ 1.9 g/t Au from 64m including 2m @ 3.1 g.t Au from 64m
The mineralised lode remains open along strike and at depth with the potential for multiple lodes. Mineralisation was associated with quartz-sulphide veining and sericite-biotite alteration of the fresh bedrock within a shear zone and remains open to the south along strike and at depth.
The recent results focus attention to the 200m of strike within the water reserve where the deeper mine workings precluded historical shallow oxide drill intercepts. These deeper workings are also concentrated near a 10-15° bend in the mineralised structure which could be controlling bedrock lode mineralisation (Figure 2).
The high quality targets within the water reserve are fully permitted and ready for RC drilling.
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Figure 2: Long section of Metzke’s Find showing the extent of historic workings and follow up drill targets beneath the deeper workings
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au [email protected] +61 (0) 428 824 343
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Illaara Central (E30/471) 100%
To date, Dreadnought has undertaken three ultra-fine fraction soil surveys and, during the quarter, drilled two stratigraphic RC holes (IRC009, IRC010 at Illaara Central. These two holes were WA Government Exploration Incentive Scheme (“EIS”) co-funded holes.
This work has resulted in multiple gold in soil anomalies with multi-element pathfinder associations and zonation indicative of an intrusion related gold system. The multi-element pathfinder association is comprised of a general SSW to NNE zonation containing high temperature Mo to lower temperature AsSb-Tl with Cs and Li alteration. These gold in soil anomalies are significant in scale and will be geologically mapped to further constrain targets for drill testing in 2020. See ASX 22 April 2020.
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Figure 3: Plan view of Central Illaara highlighting gold in soil anomalies over a magnetics image
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au
+61 (0) 428 824 343
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CRA Homestead (E30/471) 100%
A total of 3 holes for 490m of RC drilling was completed at CRA Homestead. Drilling identified a thicker than anticipated saprolite indicating deep weathering along an altered and mineralised shear zone. Supergene gold anomalism was intersected near the base of the saprolite with a majority of the bedrock remaining untested. While these results support potential for orogenic gold mineralisation, testing below the supergene gold anomaly is a lower priority than other shallower targets at Illaara.
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Figure 4: Cross section CRA Homestead showing supergene gold anomalism at the base of deep weathering
Lawrence’s Find (E30/476) 100%
A total of 5 holes for 740m of RC drilling was completed at Lawrence’s Find (5 holes). While anomalous gold was intersected in the altered horizons, this does not warrant immediate follow up. Future work at Lawrence’s Find will focus on the main body of a ~5km long geochemical anomaly identified by the previous owner, Newmont.
Illaara VMS (E29/965, E30/485) Option to Acquire 100% and (E30/471, E30/476) 100%
Illaara is emerging as part of a highly prospective VMS region, located 50 kms south-east of Cobre Ltd’s (ASX:CBE) highly prospective Perrinvale VMS project.
During the quarter four outcropping gossans (Bismarck, Rodney, Reindler’s, Warspite) were identified along the Western and Eastern VMS Horizons.
Subsequent soil sampling and FLEM surveys have identified multiple discreet and highly conductive EM anomalies. Rodney produced a strong 8,500Sm conductor with a coincident magnetic anomaly over a mineralised gossan. Warspite produced two strong 3,000-4,000Sm conductors aligned with ~500m long mineralised gossan. See ASX 15 April 2020.
Drill targets have been generated at Rodney and Reindler’s while geological mapping is being undertaken at Bismarck and Warspite to define specific drill targets
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au [email protected] +61 (0) 428 824 343
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Figure 5: Map of Illaara highlighting the VMS prospects in blue and gold prospects in yellow
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au [email protected] +61 (0) 428 824 343
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Chianti-Rufina VMS E04/2508 (100%)
Chianti-Rufina, part of the Tarraji-Yampi Project in the Kimberley, contains seven large VMS targets characterised by coincident FLEM, magnetic and surface geochemical anomalies. These seven high quality VMS targets are fully permitted and ready for RC drilling.
During the quarter soil survey anomalism and high-grade rock chips from sampling further validated the VMS targets at Chianti-Rufina:
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Copper in soil anomalism was confirmed over several ground fixed-loop EM (“FLEM”) plates and magnetic anomalies at Chianti-Rufina.
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High grade copper, silver and gold was sampled in rock chips from outcropping gossans over the Rufina North FLEM plate
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Figure 6: Map of Chianti-Rufina highlighting the FLEM plates and geochemical anomalies identified within the prospective VMS horizon
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au [email protected] +61 (0) 428 824 343
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COVID19 Impact
Tarraji-Yampi has been declared a biological security zone until 18 June 2020. The situation will be monitored and managed to determine the impact on the 2020 field season.
Illaara and Rocky Dam remain accessible for exploration and will form the focus of our activities over the June 2020 quarter.
CORPORATE
The following transactions were completed during the quarter:
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acquisition of the Wombarella Project (E04/2560) with the issue of 16,000,000 fully paid ordinary shares in Dreadnought;
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acquisition of Metzke’s Find (E29/1050) with the issue of a total of 14,500,000 fully paid ordinary shares in Dreadnought; and
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a final payment of $100,000 to Rio Tinto Exploration Pty Ltd in respect of a geophysical licence regarding Tarraji-Yampi.
ASX announcements
During the quarter, the Company made 11 ASX announcements, 10 of which were market sensitive. These announcements were as follows:
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19/03/2020 RC Drilling Hits High Grades at Metzke’s Find 13/03/2020 Half Year Financial Statements
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27/02/2020 RC Drilling Completed at Metzke’s Find Gold Prospect
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17/02/2020 RC Drilling Commenced at Metzke’s Find Gold Prospect
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11/02/2020 Outcropping Gossans Make Illaara Part of An Emerging VMS Region 05/02/2020 Approvals Received for Metzke’s Find RC Drilling
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31/01/2020 Quarterly Cashflow Report 31/01/2020 Quarterly Activities Report 31/01/2020 Illaara Gold & VMS Project - Drilling Results and Update
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28/01/2020 Soil Anomalism and High-Grade Rock Chips for Chianti-Rufina 17/01/2020 Metzke’s Find and Wombarella Completion and Cleansing Notice
Cash at Bank: at 31 March 2020 amounted to $382,000
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au
+61 (0) 428 824 343
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UPCOMING NEWSFLOW
April/May: Geological mapping at Illaara Central to further constrain targets for drill testing
April/May: Results of Metzke’s Find regional soil sampling
May: Commence RC drilling programs at Metzke’s Find, Rodney and Warspite
May: Results of magnetic and gravity 3D inversions at Tarraji
May/June: Assay results from RC drilling program at Rocky Dam
May/June: Results of EIS applications for RC drilling at Chianti-Rufina and diamond drilling at Texas part of the Tarraji-Yampi Project in the Kimberley
May/June: Drill targets from geological mapping at Illaara Central
June: Assay results from RC drilling programs at Metzke’s Find, Rodney and Warspite
~Ends~
For further information please contact: Dean Tuck Nick Day Managing Director Company Secretary Dreadnought Resources Limited Dreadnought Resources Limited E:[email protected] E:[email protected]
This announcement is authorised for release to the ASX by the Board of the Company.
Competent Person’s Statement
The information in this announcement that relates to geology and exploration results and planning was compiled by Mr. Oliver Judd, who is a Member of the AusIMM, exploration manager and shareholder of the Company. Mr. Judd has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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'. Mr. Judd consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the forma and context in which the Competent Person’s findings are presented have not been materially modified from the original reports. The Company confirms that it is not aware of any new information or data that materially affects the information in the original reports, and that the forma and context in which the Competent Persons findings are presented have not been materially modified from the original reports.
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au [email protected] +61 (0) 428 824 343
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SCHEDULE OF INTERESTS IN MINING TENEMENTS As at 31 December 2019
| Tenement | Project | Location | Status | Interest Start ofQuarter |
Interest End ofQuarter |
|---|---|---|---|---|---|
| E04/2315 Tarraji Kimberley, WA Granted 80% 80%1 |
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| E04/2508 Yampi Kimberley, WA Granted 100% 100% |
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| E04/2557 Yampi Kimberley, WA Granted 100% 100% |
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| E04/2572 Yampi Kimberley, WA Granted 100% 100% |
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| E04/2608 Yampi Kimberley, WA Granted - 100%2 |
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| E04/2675 Yampi Kimberley, WA Application - - |
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| E04/2676 Yampi Kimberley, WA Application - - |
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| E04/2560 Wombarella Kimberley, WA Granted 100% 100% |
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| E04/2573 West Kimberley Kimberley, WA Granted - 100%2 |
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| E04/2574 West Kimberley Kimberley, WA Application - - |
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| E80/5363 South Kimberley Kimberley, WA Application - - |
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| E80/5364 South Kimberley Kimberley, WA Application - - |
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| E80/5365 South Kimberley Kimberley, WA Application - - |
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| E80/5366 South Kimberley Kimberley, WA Application - - |
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| E29/957 Illaara Yilgarn, WA Granted 100% 100% |
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| E29/959 Illaara Yilgarn, WA Granted 100% 100% |
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| E29/965 Illaara Yilgarn, WA Granted 0% 0%3 |
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| E29/1050 Illaara Yilgarn, WA Granted 100% 100% |
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| E30/471 Illaara Yilgarn, WA Granted 100% 100% |
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| E30/476 Illaara Yilgarn, WA Granted 100% 100% |
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| E30/485 Illaara Yilgarn, WA Granted 0% 0%3 |
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| E25/533 Rocky Dam Goldfields, WA Granted 100% 100% |
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E04/2315 subject to an 80/20 JV with Whitewater Resources Pty Ltd
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Granted during the quarter
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Subject to an option agreement (ASX Release 6/12/2019 “Consolidation of 75km Long Illaara Greenstone Belt”)
Dreadnought Resources Limited Suite 5, 16 Nicholson Road, Subiaco WA 6008 PO Box 572, Floreat WA 6014
www.dreadnoughtresources.com.au [email protected] +61 (0) 428 824 343