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ECLIPSE METALS LIMITED. Capital/Financing Update 2015

Mar 16, 2015

64863_rns_2015-03-16_d77a24bd-6903-4288-83ff-14619679c8ce.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

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17 March 2015

ASX: EPM

MARY VALLEY YIELDS MORE HIGH GRADE MANGANESE MINERALISATION FROM HISTORICAL MINE WORKINGS

Highlights

Highlights

  •  Historical Amamoor manganese mine workings constitute a Exploration to commence over the Mary Valley Manganese Project around the Brownfields project with potential for readily mineable mineralisation 22[nd] January 2015.

  • on or near surface. Geological mapping and ground geochemical surface sampling will concentrate

  • on the Amamoor and Upper Kandanga Historic Manganese Mines. Old waste dumps and stockpiles could provide bulk samples and

  • possibly saleable ore to evaluate potential for full-scale mining (more Exploration work will also includes the following:  Sampling of possible historic stockpiles at the Amamoor Manganese Mine detail to follow when results available).

  • Investigation of the mineralisation along strike to the east and to the west of

  • Shallow exploration targets beneath and adjacent to historic workings the Upper Kandanga workings  Investigation of potential sites for an initial drilling programme to test the have potential to contain more than 37,000t of mineralisation with grades up to 52% Mn to less than 15m depth.

  • Based on a Cuban style model, the potential resource of manganese mineralisation available at Amamoor could be multiples of the above.

  • Historical near surface production has been reported as up to nearly 20,000t at up to 53% Mn between 1920 and 1960.

  • Mineralisation style shows similarities to the Woodie Woodie deposit.

  • First time that high grade manganese mineralisation has been geologically mapped and orientation determined.

impressive portfolio of

and developing viable venture income.

BOARD

Carl Popal Executive Chairman

Pedro Kastellorizos Executive Director

Rodney Dale Non-Executive Director

COMPANY SECRETARY

Eryn Kestel

REGISTERED OFFICE

C/-NKH Knight Unit 19 Level 2, Spectrum 100 Railway Road Subiaco WA 6008 Phone: +61 8 9367 8133 Fax: + 61 8 9367 8812

PRINCIPAL PLACE OF BUSINESS

The Directors of Eclipse Metals Limited ( “Eclipse Metals” or the “Company’ ) (ASX: EPM) are pleased to provide an update of results of the third phase of exploration on the Company’s Mary Valley Manganese Project.

The project tenements are centred on the small town of Amamoor, about 14km south of Gympie, a major regional town of southeast Queensland. An operating railway from Gympie, 138km north of the metropolitan area of Brisbane, provides ready transport infrastructure.

This update covers the results of fieldwork completed at the historical Amamoor mine site which contributed the majority of previous manganese production from the Mary Valley region, now within EPM 17938.

Level 3, 1060 Hay Street West Perth WA 6005 Phone: + 61 8 9480 0420 Fax: + 61 8 9321 0320

AUSTRALIAN BUSINESS NUMBER 85 142 366 541

SHARE REGISTRY

Security Transfer Registrars 770 Canning Highway Applecross WA 6153

ASX CODE EPM

WEBSITE www.eclipsemetals.com.au

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ECLIPSE METALS LIMITED

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Eclipse Metals is of the opinion that the third phase of exploration of their Mary Valley Project tenements has demonstrated:

  1. The company’s progressive, carefully staged exploration strategy in providing reliable information enabling the project to advance.

  2. The historic Amamoor Manganese Mine-site has the potential to contain a significant amount of high-grade manganese mineralisation.

  3. Further exploration of other prospects has potential to delineate additional mineralisation.

Commenting on these valuable results, Carl Popal, Executive Chairman of Eclipse Metals, said: “The board is pleased to have received such positive confirmation of potentially minable manganese mineralisation, having a potential commercial value greater than the current market cap of the whole company. The company’s outstanding uranium projects in NT, combined with the exciting Mary Valley Manganese project, need commercial evaluation to build on the current positive technical interpretation. Overall the news is very welcome and reflects positively on long term shareholder value.”

GEOLOGICAL MAPPING AND ASSAY RESULTS

The historical Amamoor Manganese Mine workings are on the top and eastern side of a ridge mostly composed of volcanic rock (most likely andesite), which overlies variably silicified shale or tuff referred to as jasperoid (Figure 1).

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Figure 1: Exposure of layered sequence at the Southern Workings.

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ECLIPSE METALS LIMITED

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There are three groups of workings, referred to by the Company as the Northern Workings, Central Workings and Southern Workings. Each set of workings consists of a series of narrow, shallow excavations made sub-parallel to the ridge. These excavations enabled mining to follow the tabular lenses of manganese mineralisation down slope. Eclipse Metals has identified eight lenses of manganese mineralisation, as follows (Table 1):-

Table 1: Comparison of the eight lenses of mineralisation

**Workings ** Mineralised
Lens
No. of
Samples
Range % Mn Mean %
Mn
Mean %
SiO2
Mean %
Fe203
Mean %
Al2O3
Mean %
CaO
Mean %
BaO
Northern North No. 1 2 10.75 to26.59 18.53 33.35 7.75 9.94 12.26 0.29
Northern North No. 2 2 16.54 to26.14 21.34 33.96 7.75 9.1 11.81 0.24
Central Central No. 1 3 35.86 to36.80 36.48 22.02 6.12 6.51 7.57 0.99
Central Central No. 2 2 6.88 to 8.86 7.87 42.72 9.91 15.22 9.51 0.57
Central Central No. 3 2 29.32 to52.14 40.73 14.16 3.88 7.08 8.1 1.25
Central Central No. 4 2 19.98 to45.07 32.52 22.19 4.88 8.46 8.12 2.76
Southern Southern No. 1 4 17.68 to34.68 23.53 29.16 7.48 8.5 13.01 1.19
Southern Southern No. 2 4 13.34 to52.49 31.00 22.82 5.11 7.21 7.91 4.16

Note: Assays of all samples from this phase of exploration are listed in Table 2 at the end of this report.

The true orientation of lenses is discordant to bedding, with moderate dips (steeper than the slope of the ridge) towards the east (Figure 2). The orientation of each lens differs from others lenses. The mineralised lenses are faultzones within which there has been variable replacement of jasperoid with manganese minerals. Historical ore-zones are those parts in which replacement proceeded toward completion.

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Figure 2: Cross-section showing relationship between mineralisation and host rocks.

Grade of all samples collected from the workings range from 6.88% Mn to 52.49% Mn.

The mineralisation style at the historical Amamoor workings is best classified as belonging to the Cuban-type subclass of volcanic-exhalative manganese deposits. This type of manganese mineralisation has similarities to the Woodie Woodie deposit in the East Pilbara of WA, but is quite different from sedimentary-type manganese deposits such as Groote Island and deposits associated with banded iron formation.

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ECLIPSE METALS LIMITED

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Figure 3: Central No. 1 Lens; minimal overburden

The thickness and orientation of the lenses of manganese mineralisation in the Amamoor mine workings, along with historic evidence and likelihood that mineralisation is of the Cuban-type, supports the idea that mineralisation continues down-dip, below and beyond the present workings. In most cases, there is likely to be only 5 to 10m overburden (Figure 3).

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Figure 4: White sample bag at location from which sample PS070 (36.79% Mn) was collected. This sample was of remnant ore of the Central No.1 Lens, which dips toward the bottom-left of the image.

Eclipse Metals exploration targets at the historical Amamoor Manganese Mine are the continuation of the North No.2 Lens, Central No.1 Lens, Central No.3 Lens and the South No.2 Lens (Figure 5).

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ECLIPSE METALS LIMITED

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Figure 5: Interpreted Geology with Exploration Targets

The most important apparent target is the continuation of the Central No.1 Lens for the following reasons:

  1. This is the thickest lens; reportedly up to 6m thick. (Smith, 1959).

  2. It appears to be of very consistent higher grade; mean about 36% Mn.

  3. It continues (along plunge) with a shallow dip, such that there would be minimal overburden (figure 3).

  4. There is high confidence in the orientation and continuity of the lens, as the arrangement of workings and the location of remnant mineralisation provides reliable guidance (Figure 4).

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ECLIPSE METALS LIMITED

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Due to the amount of data generated by the recent fieldwork, this release is the first of several, describing different results. These releases are, of necessity, summative.

For and on behalf of the board.

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Pedro Kastellorizos Executive Director

For further information please contact:

Carl Popal Pedro Kastellorizos Executive Chairman Executive Director T: +61 8 9480 0420 T: +61 8 9480 0420

The information in this report that relates to Exploration Results together with any related assessments and interpretations is based on information compiled by Mr Peter Spitalny on behalf of Mr Pedro Kastellorizos and Mr Giles Rodney (Rod) Dale, both Directors of Eclipse Metals Limited. Mr Spitalny is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the styles of mineralisation under consideration and to the activity which he has undertaken to qualify as a Competent Person

Mr Dale is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience relevant to the styles of mineralisation under consideration and to the activity being reported 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 Kastellorizos is a geologist with over 17 years of experience relevant to the styles of mineralisation under consideration and to the activity which he is undertaking as Executive Director.

Mr Peter Spitalny consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Company is not aware of any new information or data that materially affects the information in this report and such information is based on the information compiled on behalf of company Geologists, Executive director Mr Pedro Kastellorizos and Non-Executive Director Mr Giles Rodney (Rod) Dale.

Reference

Smith, K.G. (1959) Mary Valley Manganese Deposits; Report of an inspection, February 1959. Department of National Development, Bureau of Mineral Resources Geology and Geophysics Records 1959/30

Spitalny, P. (2014) Mary Valley Manganese Project. Internal Report for Eclipse Metals Ltd of fieldwork completed June 2014.

Spitalny, P. (2015) Mary Valley Manganese Project; Amamoor Historical Mine Workings. Internal Report for Eclipse Metals Ltd of fieldwork completed January 2015.

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ECLIPSE METALS LIMITED

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Table 2: Mary Valley Rock Chip Sample Assay Results

Sample
I.D.
Easting
(mE)
Northing
(mN)
PROSPECT Mn% MnO% Al2O3% BaO% CaO% Cr2O3% Fe2O3% K2O% MgO% Na2O% P2O5% SO3% SiO2% TiO2% Total% LOI%
PS061 461914.92 7086063.08 Amamoor; north
workings
10.75 13.88 13.4 0.11 16.42 0.04 8.58 0.07 0.76 0.2 0.51 0.01 38.39 1.6 100.15 4.58
PS062 461927.84 7086079.42 Amamoor; north
workings
26.59 34.33 5.85 0.22 7.58 0.02 6.29 0.11 0.77 0.3 0.16 0.01 33.35 0.55 99.68 7.25
PS063 461944.59 7086081.03 Amamoor; north
workings
16.535 21.35 11.42 0.37 15.72 0.05 8.76 0.05 1.17 0.06 0.27 0.01 33.55 1.33 100.65 4.6
PS064 461928.08 7086114.84 north of Amamoor
workings
20.23 26.12 9.93 0.24 16.16 0.06 7.6 0.07 1.78 0.06 0.37 0.01 30.38 1.45 100.8 4
PS070 461945.35 7085991.06 Amamoor; central
workings
36.79 47.51 6.61 0.61 10.17 0.03 4.65 0.03 0.57 0.05 0.17 0.01 21.12 0.7 99.58 3.13
PS071 461954.83 7085975.63 Amamoor; central
workings
6.885 8.89 15.52 0.6 9.4 0.05 9.91 0.71 1.39 3.03 0.31 0.02 43.34 1.99 100.65 4.41
PS072 461953.14 7085971.13 Amamoor; central
workings
8.86 11.44 14.91 0.54 9.62 0.03 9.91 0.51 1.05 2.51 0.24 <0.01 42.11 1.81 100.3 4.36
PS073 461955.69 7085945.98 Amamoor; central
workings
29.32 37.86 10.46 0.3 13.48 0.02 6.02 0.07 0.38 0.09 0.22 <0.01 19.71 1.17 100.65 7.74
PS074 461973.53 7085941.75 Amamoor; central
workings
19.98 25.8 12.13 0.46 11.2 0.03 7.56 0.06 0.72 1.66 0.23 0.01 32.66 1.36 99.91 3.55
PS075 461975.39 7085940.44 Amamoor; central
workings
45.07 58.2 4.78 5.05 5.05 0.02 2.19 0.27 0.33 0.06 0.1 0.19 11.72 0.42 100.45 7.27
PS076 461990.18 7085879.26 Amamoor; southern
workings
19.145 24.72 10.05 0.75 15.09 0.03 7.53 0.04 0.93 0.08 0.25 0.1 31.84 1.28 100.25 5.49
PS077 461985.93 7085885.40 Amamoor; southern
workings
17.68 22.83 10.88 0.95 16.18 0.03 7.25 0.03 1.24 0.03 0.35 0.01 31.61 1.49 99.97 4.96
PS078 461989.62 7085888.39 Amamoor; southern
workings
34.68 44.78 3.43 1.59 8.7 0.01 8.79 0.03 0.57 0.05 0.13 0.13 23.92 0.14 99.95 4.08
PS079 461991.82 7085889.71 Amamoor; southern
workings
22.61 29.19 9.62 1.47 12.08 0.03 6.37 0.15 1.32 0.4 0.3 0.02 29.27 1.36 100.2 6.07
PS080 461998.27 7085901.41 Amamoor; southern
workings
13.335 17.22 12.42 3.19 6.32 0.04 7.74 0.86 0.96 2.45 0.44 0.74 39.03 1.65 100.55 5.94
PS081 461999.02 7085904.21 Amamoor; southern
workings
52.49 67.78 1.06 9.6 1.11 <0.01 0.53 0.23 0.18 0.13 0.22 0.1 4.74 0.05 101.15 9.99
PS082 462000.30 7085907.00 Amamoor; southern
workings
28.46 36.75 7.92 2.31 12.46 0.02 6.87 0.06 0.76 0.03 0.15 0.02 22.75 1.09 99.84 5.29
PS083 462001.64 7085909.52 Amamoor; southern
workings
29.71 38.36 7.43 1.56 11.76 0.03 5.31 0.05 1.24 0.04 0.23 0.03 24.77 0.95 100.25 5.11

www.eclipsemetals.com.au

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ECLIPSE METALS LIMITED

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– JORC Code, 2012 Edition Table 1 report

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

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.
Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems
used.
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.
 Rock chip samples were collected as part of the field reconnaissance
program. Samples were collected when visible mineralisation was
identified in the field.
 Each rock chip sample was approximately 3 kg and 5kg in weight with
the sample numbered from PS061 to PS083, totalling 18 rock chips
from outcrop.
Drilling
techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air
blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other
_type, whether core is oriented and if so, by what method, etc). _
 No applicable as no drilling was undertaken
Drill
sample
recovery
Method of recording and assessing core and chip sample recoveries
and results assessed.
Measures taken to maximise sample recovery and ensure
representative nature of the samples.
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.
 No applicable as no drilling was undertaken
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
 No applicable as no drilling was undertaken

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ECLIPSE METALS LIMITED ECLIPSE METALS LIMITED 9
Criteria JORC Code explanation Commentary
studies.
Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.
The total length andpercentage of the relevant intersections logged.
Sub-sampling
techniques
and
sample
preparation
If core, whether cut or sawn and whether quarter, half or all core
taken.
If non-core, whether riffled, tube sampled, rotary split, etc and
whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to
maximise representivity of samples.
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.
Whether sample sizes are appropriate to the grain size of the material
being sampled.
 No applicable as no drilling was undertaken.
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.
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.
Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels
of accuracy (ie lack of bias) andprecision have been established.
 Rock Chip samples were sent to ALS in Brisbane for XRF to determine
content of CaO%, BaO%, Al2O3%, Cr2O3%, Fe2O3%, K2O%, MgO%,
MnO%, Mn%, Na2O%, P2O5%, SO3%, SiO2%, TiO2% & LOI
Verification of
sampling and
assaying
The verification of significant intersections by either independent or
alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
 No applicable as no drilling was undertaken.

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Criteria JORC Code explanation Commentary
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.
Specification of the grid system used.
Quality and adequacy of topographic control.
 All coordinate information was collected using a hand held GPS using
MGA Zone 56 (GDA 94). Coordinates of the samples are present
within Tables 1 and 2 of the announcement and within the map.
Data spacing
and
distribution
Data spacing for reporting of Exploration Results.
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.
Whether sample compositing has been applied.
 The locations of samples is shown in the map as Figure 4
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.
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.
 No applicable as no drilling was undertaken
Sample
security
The measures taken to ensure sample security.  Samples were labelled/bagged and taken straight to the analytical
laboratory
Audits
or
reviews
The results of any audits or reviews of sampling techniques and data.  Not applicable as not audits were conducted

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section)

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 security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the area.

EPM17938 is held beneficially for Eclipse Metals Limited in its
subsidiary Walla Mines Pty Ltd. Eclipse holds 56% of the current
securities within Walla Mines Pty Ltd.

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ECLIPSE METALS LIMITED ECLIPSE METALS LIMITED 11
Criteria JORC Code explanation Commentary
Exploration
done by other
parties
Acknowledgment and appraisal of exploration by other parties.  Manganese ore has been mined intermittently from deposit in the
Mary Valley since 1920’s, with the bulk of the output occurring from
1957-1960.
Geology Deposit type, geological setting and style of mineralisation.
The mineralisation style at the historical Amamoor workings is best
classified as belonging to the Cuban-type subclass of volcanic-
exhalative manganese deposits
Drill
hole
Information
A summary of all information material to the understanding of the
exploration results including a tabulation of the following information
for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly
explain why this is the case.
 No applicable as no drilling was undertaken
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.
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.
The assumptions used for any reporting of metal equivalent values
should be clearly stated.
 Not applicable as no data averaging has been used
Relationship
between
mineralisatio
n widths and
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
 Samples collected are only from the surface and any potential depths of
mineralisation can only be observed on the surface and hence are speculative
in nature.

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ECLIPSE METALS LIMITED ECLIPSE METALS LIMITED 12
Criteria JORC Code explanation Commentary
intercept
lengths
should be a clear statement to this effect (eg ‘down hole length, true
width not known’).
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.
 Refer to Maps and Figures within the release
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.
 Several samples were collected from the lower and higher grade
mineralisation observed to determine an average over the different
mineralised lens observed and mapped in the field.
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 contaminating substances.
 Not applicable
Further work The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,
provided this information is not commercially sensitive.
 The fourth phase of exploration will concentrate on petro-physics
studies to determine if airborne gravity or electro-magnetic surveys
to delineate blind manganese mineralisation.

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