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ELEMENT 25 LIMITED — Interim / Quarterly Report 2010
Jan 30, 2011
64810_rns_2011-01-30_714449d7-078d-4972-8aa7-9ddd98fe93d4.pdf
Interim / Quarterly Report
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QUARTERLY REPORT
Three Months Ending: 31 December 2010
HIGHLIGHTS
BUTCHERBIRD (MANGANESE):
ASX CODE: MZM ISSUED SHARES: 43.05M 52 WEEK HIGH: $0.95 52 WEEK LOW: $0.18 CASH ON HAND: $3.63M
CONTACT:
JUSTIN BROWN Managing Director +61 8 6315 1400
BOARD:
Denis O’Meara: Chairman Justin Brown: MD John Ribbons: Non-Exec
KEY PROJECTS:
BUTCHERBIRD (100%) Manganese, Copper
PEAK HILL (85-100%) Gold
DURACK (earning 85%) Gold, Copper (VMS)
MT PADBURY (100% of gold) Gold, Manganese, Iron
KEY SHARE HOLDINGS:
AUVEX RESOURCES LTD 7,500,000 FPO Shares
BUXTON RESOURCES LTD 3,010,000 FPO Shares
Note: Unless otherwise stated, all drill intersections are reported as down-hole widths.
-
Maiden Resource drill-out at Yanneri ridge completed. Strike extended by 400m for a total strike of approximately 3.4km.
-
Maiden Inferred Mineral Resource Estimate for Yanneri Ridge:
| Cut-off | Tonnes (Mt) |
Mn (%) | SiO2 (%) |
Fe (%) | P2O5 (%) |
Al2O3 (%) |
|---|---|---|---|---|---|---|
| 8% Mn | 64.7 | 11.2 | 44.3 | 11.5 | 0.28 | 10.9 |
| 10% Mn | 48.8 | 11.8 | 43.6 | 11.6 | 0.28 | 10.7 |
-
Best RC drilling results include; 10BB223 23m @ 11.39% Mn from 3m 10BB245 18m @ 11.25% Mn from 8m 10BB320 18m @ 12.18% Mn from 0m (including 3m @ 15.47% Mn)
-
10BB339 20m @ 13.37% Mn from 1m (including 8m @ 17.06% Mn)
-
PQ3 Diamond drilling programme has been successfully completed to provide material for metallurgical testwork.
-
Distinct high grade manganese layers confirmed.
-
XTEM geophysical survey over entire Project completed at 200m line spacing for a total of 919 line km.
-
Results clearly map the known manganese and have highlighted new, strongly conductive targets.
-
Reconnaissance drilling at anomaly 1 has intersected visual manganese confirming the effectiveness of the programme.
BUTCHERBIRD (COPPER):
-
Drilling confirms copper sulphide mineralisation beneath the previously intersected copper oxide zone.
-
System is a shear hosted polymetallic deposit with significant cobalt, silver and nickel credits in addition to copper.
-
• Best results include: 10BBC14 18m @ 0.63% Cu and 859ppm Co from 154m (incluing 1m @ 2.43% Cu and 0.55% Co) 10m @ 0.82% Cu and 581ppm Co from 180m (including 3m @ 1.94% Cu and 0.12% Co)
-
10BB07 10m @ 0.77% Cu and 167ppm Co from 10m
-
Drilling and aeromagnetics indicate a potential strike zone of approximately 4km.
!"#$%&'!(')*+,--./!
The Butcherbird Manganese and Copper project straddles the Great North Highway approximately 120km south of Newman. Work to date has successfully identified both copper and manganese mineralisation within the Project and work is ongoing to assess the commercial potential of the deposits discovered to date as well as to aggressively explore for further discoveries within the province.
Butcherbird Manganese
The work to date has identified six primary target areas, two of which have been the focus of extensive infill drilling during the coming Quarter.
==> picture [290 x 352] intentionally omitted <==
Further regional exploration has also being undertaken to define additional manganese mineralisation within the Company’s tenure.
RC Drilling
During the Quarter, the drill-out of the Yanneri Ridge target area was successfully completed. A total of 153 holes for 4,074 metres were drilled.
In addition to providing infill data to support a Mineral Resource Estimate the programme has also successfully extended the known mineralisation at Yanneri Ridge by 400m to the west. The total strike extent of the known mineralised zone at Yanneri is now approximately 3.4km.
The programme also comprised a total of 125 holes for 3,806 metres of RC drilling at several other manganese target areas with results pending.
Diamond Drilling
In addition to the RC drilling, a total of 6 PQ3 diamond core holes were completed for a total of 300m to provide material for metallurgical test-work which is currently underway. The core samples are expected to provide more definitive test data than the work completed to date on RC chips samples.
==> picture [557 x 415] intentionally omitted <==
Figure 1. RC and diamond drillhole collar locations for the Yanneri Ridge resource drill-out programme. Collars are shown over the coincident EM data
Mineral Resource Estimate (Yanneri Ridge)
The Company is pleased to advise that Snowden Mining Industry Consultants (“Snowden”) has completed a maiden estimate of the Mineral Resource (classified as an Inferred Resource) for the Yanneri Ridge manganese deposit as follows:
| Cut-off | Tonnes (Mt) | Mn (%) | SiO2 (%) | Fe (%) | P2O5 (%) | Al2O3 (%) |
|---|---|---|---|---|---|---|
| 8% Mn | 64.7 | 11.2 | 44.3 | 11.5 | 0.28 | 10.9 |
| 10% Mn | 48.8 | 11.8 | 43.6 | 11.6 | 0.28 | 10.7 |
The results of preliminary metallurgical test work, as reported previously, indicate a beneficiated manganese product grade in excess of 35% Mn with acceptable levels of Fe, SiO2, Al2O3 and P2O5.
Whilst grade continuity and drilling density are adequate to support an Indicated status for the Resource, the Inferred category has been applied due to the preliminary nature of this beneficiation data. It is anticipated that the results from the more detailed metallurgical test-work currently underway on the recently acquired PQ3 diamond core samples, may support the Mineral Resource being upgraded to Indicated status without further drilling.
The additional metallurgical information will also aid in further understanding the best pathway to commercialising the deposit including establishing appropriate cut-off grades for a revised Mineral Resource Estimate.
XTEM Survey
The Company is pleased to advise that a regional XTEM survey has been completed over the Butcherbird Project area. The survey was commissioned following the success of the trial XTEM programme completed earlier in the year which tested the geophysical response over several known manganese occurrences within the Project area.
The XTEM system comprises a time domain airborne electromagnetic survey using a transmitter loop and receiver coil slung 30m below a helicopter. The helicopter is flown a nominal 65m above the ground, at a speed of 45 knots. The survey also measures magnetics and ground levels. This XTEM system is well suited to detecting shallow conducting horizons.
At Butcherbird, the survey was conducted on 200m spaced north-south lines and the results have highlighted several new conductive horizons with no surface outcrop. One target (TEM 1) has been drill tested by completing two holes at azimuth 180 and a -60 dip for a total of 86m. This drilling has confirmed the presence of manganese mineralisation under approximately 7m of cover. Assays for this drilling are pending and whilst the grades and commerciality or otherwise is unknown at this stage, it provides strong support for the effectiveness of the XTEM technique as a targeting tool. Hole locations will be provided once survey pick-ups are complete.
Several other priority anomalies have also been defined, and will require drill testing in the next field season. These include a large conductor covering approximately 8 km[2] located under Mungajerry Lake in addition to targets TEM 2 and TEM 3 which lay between Yanneri Ridge and Mungajerry, and TEM 5 which may be mapping the eastern continuation of the Yanneri Ridge manganese deposit.
In addition to these priority target areas, the survey has identified a number of additional conductive zones, some of which are associated with potential extensions to known mineralisation and others that will need to be further investigated prior to possible drill testing.
The programme has been a success and will provide a valuable additional tool to guide future exploration as the Company progressively unlocks the potential of this new manganese province
| PROSPECT | HOLE ID | NORTHING | EASTING | RL | FROM | TO | Interval | Ave. Mn(%) | Including |
|---|---|---|---|---|---|---|---|---|---|
| YANNERI RIDGE | 10BB212 | 7297896.56 | 771901.88 | 618.61 | 27 | 30 | 3 | 7.32 | |
| YANNERI RIDGE | 10BB213 | 7297797.64 | 771905.00 | 619.89 | 0 | 29 | 29 | 11.03 | 5m@ 17.09% |
| YANNERI RIDGE | 10BB214 | 7297698.41 | 771900.83 | 621.05 | 7 29 |
26 31 |
19 2 |
11.29 | 5m @ 14.27 |
| 11.19 | |||||||||
| YANNERI RIDGE | 10BB215 | 7297595.99 | 771898.25 | 621.57 | 2 | 15 | 13 | 12.97 | 6m@ 17.71 |
| YANNERI RIDGE | 10BB216 | 7297497.80 | 771902.92 | 621.06 | 3 17 |
4 29 |
1 12 |
9.77 | |
| 8.74 | |||||||||
| YANNERI RIDGE | 10BB221 | 7297893.56 | 772090.56 | 619.96 | 4 11 |
5 26 |
1 15 |
10.76 | 4m@ 12.42 |
| 10.18 | |||||||||
| YANNERI RIDGE | 10BB222 | 7297802.61 | 772099.81 | 621.48 | 8 | 25 | 17 | 10.65 | 1m@ 16.23 |
| YANNERI RIDGE | 10BB223 | 7297701.81 | 772099.07 | 623.46 | 3 | 26 | 23 | 11.39 | 3m@ 15.8 |
| YANNERI RIDGE | 10BB224 | 7297594.83 | 772098.40 | 624.80 | 2 | 15 | 13 | 13.29 | 8m@ 15.09 |
| YANNERI RIDGE | 10BB225 | 7297511.70 | 772101.63 | 624.42 | 10 | 14 | 4 | 12.02 | |
| YANNERI RIDGE | 10BB227 | 7298200.79 | 772296.78 | 620.83 | 19 | 20 | 1 | 11.31 | |
| YANNERI RIDGE | 10BB229 | 7298007.46 | 772302.48 | 622.00 | 12 26 |
13 27 |
1 1 |
10.94 | |
| 13.45 | |||||||||
| YANNERI RIDGE | 10BB230 | 7297472.49 | 772303.65 | 620.64 | 0 | 1 | 1 | 16.76 | |
| YANNERI RIDGE | 10BB232 | 7298001.09 | 772501.61 | 625.10 | 16 26 |
17 30 |
1 4 |
11.03 | |
| 9.37 | |||||||||
| YANNERI RIDGE | 10BB237 | 7298099.51 | 772799.13 | 624.47 | 25 | 28 | 3 | 8.95 | |
| YANNERI RIDGE | 10BB238 | 7297603.86 | 772801.86 | 626.25 | 4 | 12 | 8 | 9.33 | |
| YANNERI RIDGE | 10BB239 | 7297505.97 | 772809.08 | 621.16 | 0 | 2 | 2 | 9.70 | |
| YANNERI RIDGE | 10BB243 | 7298100.07 | 773098.84 | 628.43 | 22 | 27 | 5 | 9.03 | |
| YANNERI RIDGE | 10BB244 | 7297999.02 | 773098.60 | 628.64 | 8 | 22 | 14 | 9.52 | 3m@ 12.27 |
| YANNERI RIDGE | 10BB245 | 7297905.36 | 773099.98 | 628.40 | 8 | 26 | 18 | 11.25 | 9m@ 13.23 |
| YANNERI RIDGE | 10BB246 | 7297797.66 | 773117.28 | 627.99 | 6 | 12 | 6 | 9.89 | 3m @ 10.99 |
| YANNERI RIDGE | 10BB254 | 7298099.88 | 773500.93 | 630.91 | 12 | 26 | 14 | 8.34 | 4m@ 10.15 |
| YANNERI RIDGE | 10BB255 | 7298003.58 | 773500.69 | 632.79 | 6 | 26 | 20 | 10.14 | 8m@ 12.6 |
| YANNERI RIDGE | 10BB256 | 7297901.63 | 773498.30 | 634.91 | 9 | 26 | 17 | 12.25 | 4m@ 16.24 |
| YANNERI RIDGE | 10BB257 | 7297800.29 | 773500.17 | 634.36 | 0 4 |
1 13 |
1 9 |
15.65 | 4m@ 14.21 |
| 11.18 | |||||||||
| YANNERI RIDGE | 10BB258 | 7297700.67 | 773501.11 | 626.94 | 10 | 11 | 1 | 8.62 | |
| YANNERI RIDGE | 10BB260 | 7298498.70 | 773697.12 | 627.01 | 18 | 19 | 1 | 8.36 | |
| YANNERI RIDGE | 10BB263 | 7298201.32 | 773698.35 | 630.59 | 9 | 12 | 3 | 12.87 | |
| 18 | 27 | 9 | 8.91 | 2m@ 13.05 |
| PROSPECT | HOLE ID | NORTHING | EASTING | RL | FROM | TO | Interval | Ave. Mn(%) | Including |
|---|---|---|---|---|---|---|---|---|---|
| YANNERI RIDGE | 10BB264 | 7298101.48 | 773698.02 | 632.06 | 10 20 |
17 25 |
7 5 |
11.65 | 3m @ 15.89 |
| 10.37 | |||||||||
| YANNERI RIDGE | 10BB265 | 7297997.00 | 773701.21 | 633.67 | 7 | 27 | 20 | 12.09 | 9m@ 14.21 |
| YANNERI RIDGE | 10BB266 | 7297895.65 | 773703.29 | 635.60 | 0 6 |
1 22 |
1 16 |
11.33 | 4m@ 14.26 |
| 11.82 | |||||||||
| YANNERI RIDGE | 10BB267 | 7297801.31 | 773702.86 | 633.88 | 2 | 11 | 9 | 11.52 | 3m@ 16.90 |
| YANNERI RIDGE | 10BB268 | 7297703.65 | 773697.28 | 627.70 | 6 | 8 | 2 | 8.93 | |
| YANNERI RIDGE YANNERI RIDGE |
10BB272 10BB272 |
7298300.55 | 773899.90 | 629.99 | 12 25 |
14 30 |
2 5 |
8.92 | |
| 10.64 | |||||||||
| YANNERI RIDGE | 10BB273 | 7298201.79 | 773898.93 | 631.78 | 13 | 28 | 15 | 10.14 | 2m@ 13.89 |
| YANNERI RIDGE | 10BB274 | 7298099.57 | 773899.65 | 633.45 | 10 | 28 | 18 | 10.35 | 6m@ 14.77 |
| YANNERI RIDGE | 10BB275 | 7297997.26 | 773901.72 | 635.42 | 5 | 29 | 24 | 12.44 | 5m@ 15.02 |
| YANNERI RIDGE | 10BB276 | 7297902.16 | 773901.48 | 637.32 | 6 | 21 | 15 | 12.82 | 7m@ 14.30 |
| YANNERI RIDGE YANNERI RIDGE |
10BB277 10BB277 |
7297803.50 | 773902.06 | 635.95 | 2 23 |
15 26 |
13 3 |
13.07 | 4m @ 16.32 |
| 8.54 | |||||||||
| YANNERI RIDGE | 10BB278 | 7297696.29 | 773898.06 | 630.28 | 8 25 |
12 26 |
4 1 |
9.43 | |
| 8.49 | |||||||||
| YANNERI RIDGE | 10BB279 | 7297604.12 | 773902.17 | 626.74 | 4 10 15 |
5 11 17 |
1 1 2 |
11.89 | |
| 9.35 | |||||||||
| 9.50 | |||||||||
| YANNERI RIDGE | 10BB280 | 7298503.33 | 774097.07 | 624.08 | 7 | 8 | 1 | 10.04 | |
| YANNERI RIDGE | 10BB281 | 7298396.44 | 774100.50 | 625.09 | 3 23 |
4 24 |
1 1 |
8.17 | |
| 13.14 | |||||||||
| YANNERI RIDGE | 10BB282 | 7298300.79 | 774100.33 | 626.26 | 13 | 22 | 9 | 9.72 | |
| YANNERI RIDGE | 10BB283 | 7298203.69 | 774101.47 | 627.24 | 5 | 20 | 15 | 8.92 | 2m@ 13.24 |
| YANNERI RIDGE | 10BB284 | 7298097.47 | 774101.86 | 628.69 | 4 | 23 | 19 | 11.72 | 2m@ 15.35 |
| YANNERI RIDGE | 10BB285 | 7297602.89 | 774097.90 | 626.76 | 7 10 |
8 14 |
1 4 |
10.15 | |
| 8.24 | |||||||||
| YANNERI RIDGE | 10BB287 | 7298500.67 | 774295.50 | 623.00 | 4 | 19 | 15 | 11.15 | 5m@ 13.70 |
| YANNERI RIDGE | 10BB288 | 7298390.97 | 774307.84 | 623.80 | 8 | 17 | 9 | 8.31 | |
| YANNERI RIDGE | 10BB289 | 7298300.01 | 774294.80 | 625.27 | 4 | 16 | 12 | 10.33 | 2m@ 13.32 |
| YANNERI RIDGE | 10BB290 | 7298191.34 | 774301.04 | 627.59 | 4 | 22 | 18 | 10.69 | 6m@ 13.62 |
| YANNERI RIDGE | 10BB291 | 7298098.70 | 774300.58 | 630.00 | 3 | 21 | 18 | 13.74 | 4m@ 17.30 |
| YANNERI RIDGE | 10BB292 | 7298002.75 | 774301.36 | 632.17 | 3 | 19 | 16 | 14.39 | 6m@ 16.43 |
| YANNERI RIDGE | 10BB293 | 7297904.41 | 774283.70 | 634.90 | 3 | 16 | 13 | 14.85 | 6m@ 17.12 |
| YANNERI RIDGE | 10BB294 | 7297796.74 | 774302.24 | 640.21 | 4 | 15 | 11 | 13.50 |
| PROSPECT | HOLE ID | NORTHING | EASTING | RL | FROM | TO | Interval | Ave. Mn(%) | Including |
|---|---|---|---|---|---|---|---|---|---|
| YANNERI RIDGE | 10BB295 | 7297733.49 | 774293.26 | 640.42 | 1 6 16 |
3 9 19 |
2 3 3 |
12.13 | |
| 10.29 | |||||||||
| 8.41 | |||||||||
| YANNERI RIDGE | 10BB296 | 7297595.69 | 774301.67 | 626.93 | 5 12 |
7 13 |
2 1 |
8.68 | |
| 11.33 | |||||||||
| YANNERI RIDGE | 10BB297 | 7297502.88 | 774304.10 | 624.28 | 9 | 11 | 2 | 11.04 | |
| YANNERI RIDGE | 10BB298 | 7298501.83 | 774503.35 | 621.56 | 7 13 |
9 22 |
2 9 |
12.91 | 3m@ 12.12 |
| 9.38 | |||||||||
| YANNERI RIDGE | 10BB299 | 7298399.70 | 774503.04 | 622.61 | 5 | 19 | 14 | 9.58 | 2m@ 12.85 |
| YANNERI RIDGE | 10BB300 | 7298294.37 | 774505.17 | 623.22 | 0 7 |
1 14 |
1 7 |
13.85 | 3m@ 12.22 |
| 9.65 | |||||||||
| YANNERI RIDGE | 10BB301 | 7298200.83 | 774499.93 | 624.80 | 0 | 17 | 17 | 10.04 | 5m@ 11.81 |
| YANNERI RIDGE | 10BB302 | 7298101.45 | 774502.49 | 625.53 | 3 | 20 | 17 | 10.94 | 2m@ 16.80 |
| YANNERI RIDGE | 10BB303 | 7297994.77 | 774502.32 | 625.85 | 2 | 20 | 18 | 11.78 | 5m@ 15.19 |
| YANNERI RIDGE | 10BB304 | 7298501.87 | 774703.65 | 619.38 | 16 | 20 | 4 | 11.15 | |
| YANNERI RIDGE | 10BB305 | 7298387.57 | 774686.79 | 620.38 | 1 | 16 | 15 | 10.79 | |
| YANNERI RIDGE | 10BB306 | 7298299.84 | 774701.11 | 620.63 | 14 | 16 | 2 | 15.64 | |
| YANNERI RIDGE | 10BB307 | 7298195.28 | 774698.99 | 621.78 | 15 | 20 | 5 | 11.82 | 3m @ 13.14 |
| YANNERI RIDGE | 10BB308 | 7298102.38 | 774700.94 | 622.53 | 0 | 17 | 17 | 13.24 | 3m@ 16.03 |
| YANNERI RIDGE | 10BB309 | 7298003.06 | 774700.70 | 623.75 | 2 | 16 | 14 | 12.62 | 6m@ 15.20 |
| YANNERI RIDGE | 10BB310 | 7297901.74 | 774700.86 | 624.85 | 0 | 11 | 11 | 13.44 | 4m@ 16.09 |
| YANNERI RIDGE | 10BB311 | 7297801.76 | 774701.36 | 624.82 | 1 | 14 | 13 | 13.65 | 7m@ 16.40 |
| YANNERI RIDGE | 10BB312 | 7297701.41 | 774701.12 | 627.02 | 1 | 14 | 13 | 12.07 | 2m@ 16.00 |
| YANNERI RIDGE | 10BB313 | 7297606.03 | 774704.19 | 623.96 | 0 3 7 |
1 4 10 |
1 1 3 |
17.53 | |
| 11.83 | |||||||||
| 8.99 | |||||||||
| YANNERI RIDGE | 10BB317 | 7298297.50 | 774898.00 | 618.59 | 7 10 13 |
8 11 16 |
1 1 3 |
14.57 | |
| 10.16 | |||||||||
| 9.01 | |||||||||
| YANNERI RIDGE | 10BB318 | 7298189.36 | 774906.14 | 619.63 | 5 | 11 | 6 | 8.97 | |
| YANNERI RIDGE | 10BB319 | 7298095.60 | 774900.11 | 619.08 | 0 | 10 | 10 | 9.43 | 5m@ 10.48 |
| YANNERI RIDGE | 10BB320 | 7297998.38 | 774898.35 | 621.02 | 0 | 18 | 18 | 12.18 | 3m@ 15.47 |
| YANNERI RIDGE | 10BB324 | 7298302.15 | 775096.17 | 616.62 | 15 | 16 | 1 | 9.54 | |
| YANNERI RIDGE | 10BB325 | 7298199.31 | 775100.88 | 616.89 | 8 | 11 | 3 | 8.31 | |
| YANNERI RIDGE | 10BB326 | 7298097.05 | 775099.24 | 617.28 | 7 | 15 | 8 | 10.86 | 3m@ 12.80 |
| YANNERI RIDGE | 10BB327 | 7297995.63 | 775093.91 | 618.04 | 0 | 1 | 1 | 10.15 |
| PROSPECT | HOLE ID | NORTHING | EASTING | RL | FROM | TO | Interval | Ave. Mn(%) | Including |
|---|---|---|---|---|---|---|---|---|---|
| YANNERI RIDGE | 10BB328 | 7297902.03 | 775104.94 | 618.17 | 0 6 |
1 18 |
1 12 |
11.88 | 4m@ 11.85 |
| 9.26 | |||||||||
| YANNERI RIDGE | 10BB329 | 7297797.77 | 775105.28 | 617.74 | 0 | 17 | 17 | 12.75 | 6m@ 14.86 |
| YANNERI RIDGE | 10BB332 | 7298497.72 | 775299.70 | 614.52 | 24 | 25 | 1 | 12.15 | |
| YANNERI RIDGE | 10BB334 | 7298300.47 | 775303.23 | 614.91 | 14 | 15 | 1 | 11.45 | |
| YANNERI RIDGE | 10BB338 | 7297898.72 | 775300.78 | 615.18 | 0 9 |
1 12 |
1 3 |
13.73 | |
| 8.78 | |||||||||
| YANNERI RIDGE | 10BB339 | 7297799.57 | 775300.75 | 614.98 | 1 | 21 | 20 | 13.37 | 8m@ 17.06 |
| YANNERI RIDGE | 10BB340 | 7297701.92 | 775294.74 | 614.70 | 0 | 12 | 12 | 12.74 | 2m@ 16.42 |
| YANNERI RIDGE | 10BB342 | 7297912.95 | 773250.87 | 631.57 | 10 | 28 | 18 | 11.38 | 2m@ 18.12 |
| YANNERI RIDGE | 10BB343 | 7297915.46 | 773217.48 | 631.03 | 8 | 28 | 20 | 11.80 | 6m@ 14.09 |
| YANNERI RIDGE | 10BB344 | 7297920.16 | 773182.65 | 630.35 | 11 | 27 | 16 | 11.26 | 2m@ 15.60 |
| YANNERI RIDGE | 10BB345 | 7297917.76 | 773151.51 | 629.68 | 7 24 |
22 28 |
15 4 |
11.30 | 4m @ 13.80 |
| 10.87 | |||||||||
| YANNERI RIDGE | 10BB347 | 7297999.28 | 775699.49 | 611.83 | 8 | 10 | 2 | 9.29 | |
| YANNERI RIDGE | 10BB348 | 7297900.87 | 775702.56 | 611.50 | 9 | 11 | 2 | 11.73 | |
| YANNERI RIDGE | 10BB349 | 7297805.24 | 775701.20 | 611.40 | 0 | 10 | 10 | 12.75 | 2m@ 18.72 |
| YANNERI RIDGE | 10BB350 | 7297703.80 | 775701.98 | 611.16 | 2 | 5 | 3 | 11.38 | |
| YANNERI RIDGE | 10BB358 | 7297902.05 | 776102.51 | 610.30 | 4 | 7 | 3 | 8.66 |
Table 1. RC Drilling results form the Yanneri Ridge Prosect within the Butcherbird Project area. Composite results shown from geologically constrained zones and a bottom cut of approximately 8% manganese. All intersections are downhole widths. Assays were completed on 1m splits by Nagrom Laboratories using Fused Bead XRF analysis.
==> picture [645 x 470] intentionally omitted <==
Figure 2. Plan view showing completed RC drillhole locations (black dots) and the channel 15 XTEM data from the recently completed trial XTEM survey.
Butcherbird Copper
Complete assays have now been received for recent RC drilling at the Butcherbird Copper Prospect. The programme comprised 8 holes for a total of 614 metres and was undertaken to test the depth extension of the previously reported downhole intersection of 4m @ 6.97% Cu and 566ppm Co from 16m in hole 10BBC01.
==> picture [343 x 251] intentionally omitted <==
The best results from the programme were returned from hole 10BBC014 where approximately 38m of alteration and associated copper/cobalt mineralisation was intersected, contained within an alteration envelope comprising pervasive silica replacement of the country rock and associated quartz/carbonate veining. The alteration continues to the end of the hole as the rig on site did not have the capacity to drill further with the available equipment.
In addition to the copper, significant cobalt and silver values were also returned at levels of significant commercial interest, representing potential credits and confirming the polymetallic nature of the deposit.
As previously reported, GPX Surveys recently completed an airborne EM survey over the Butcherbird Project and whilst the primary focus was identifying manganese mineralisation, a high priority sulphide target has also been identified . The anomaly represents a conductive body in a geologically favourable position and will be drilled to test for the presence of massive sulphide mineralisation as soon as possible.
These latest results further confirm the Butcherbird copper deposit as a potentially significant new discovery with mineralisation open in all directions and follow up work will be undertaken as a matter of priority.
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||||
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| "#( | "## | DCGH | "$++ | "&*$ | &" | ""* | & | ('% | $)$ | " | |||||
| "## | "#* | BC0/ | ,"* | ,*' | %( | ,, | " | ""# | ,)* | " | |||||
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Table 2. Significant assay results with a nominal lower cut of 0.1% Cu. Note all assays are by mixed acid digest in oxide zones and Aqua Regia in sulphide zones, with AAS readings. All intersections are downhole widths.
==> picture [606 x 451] intentionally omitted <==
Figure 3. Cross section through Butcherbird Copper Prospect. Composite values calculated using a nominal lower cut of 0.1% copper. All intervals quoted as downhole intersections.
WORK PROGRAMME GOING FORWARD
The work programme outlined in the previous Quarterly Report has been progressed largely on schedule and several key milestones have been met. These include the completion of geophysical surveys over the project, the RC and diamond resource drill-out programme at Yanneri Ridge and the publication of the maiden JORC Mineral Resource Estimate for this deposit.
The progress to date sees the Company well positioned to complete a scoping study on this Resource in the first Quarter of calendar year 2011 and from there moving to feasibility studies based on the results of the scoping study work.
| 2010 | 2010 | 2011 | 2011 | 2011 | ||
|---|---|---|---|---|---|---|
| Task | October | November | December | January | February | March |
| EM Survey | COMPLETED | |||||
| RC Drilling | COMPLETED | |||||
| DD Drilling | COMPLETED | |||||
| Detailed Met Tests | COMMENCED | |||||
| JORC Resource | COMPLETED | |||||
| MLA Applications | ||||||
| Scoping Study |
Table 1. Indicative timeline for work at Butcherbird over the next two quarters.
PEAK HILL (85-100%)
Work at the Company’s Peak Hill gold/copper project included ongoing target generation and progress towards a global resource upgrade. A dedicated Project Geologist has been assigned to the Project and at the conclusion of the current phase of work, the Company’s strategy going forward with respect to Peak Hill will be reviewed.
CORPORATE
Lithex Resources Limited
The Company is party to an agreement with Lithex Resources Limited (“Lithex”) whereby Montezuma will receive ordinary shares in Lithex on Lithex listing on the ASX. Lithex has advised their Prospectus will be lodged with ASIC shortly.
Lithex has a large strategic tenement holding within the East Pilbara and Gascoyne Geological Provinces of Western Australia including a substantial position within the historical tin and tantalum producing districts of the Achaean Pilbara Craton. The Lithex IPO is a potential opportunity for investors seeking exposure to lithium, tantalum, tin and rare earth metals.
Interested parties should refer to the Lithex website at www.lithex.com.au.
Investor Coverage
Recent investor relations, corporate videos and broker/media coverage on the Company’s projects can be viewed on the Company’s website at http://www.montezumamining.com.au.
About Montezuma Mining Company Ltd
Listed in 2006, Montezuma (ASX: MZM) is a diversified explorer primarily focused on manganese, copper and gold. Montezuma has a 100% interest in the Butcherbird Manganese/Copper Project and an 85-100% interest in the Peak Hill and Durack Gold Projects in the Murchison region of Western Australia.
More Information
Justin Brown Managing Director
Phone: +61 (8) 6315 1400 Mobile: +61 438 745 675
The Information in this report that relates to exploration results is based on information compiled by Justin Brown, who is a member of the Australian Institute of Mining & Metallurgy. Mr Brown is a geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Justin Brown consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report related to the Mineral Resource is based on information compiled by Shane Fieldgate under the supervision of Ivor Jones. Mr Fieldgate is a Member of the Australian Institute of Geoscientists (AIG) and the Australasian Institute of Mining and Metallurgy (AusIMM) and is a full time employee of Snowden Mining Industry Consultants. Mr Jones is a Fellow of the Australasian Institute of Mining and metallurgy (AusIMM), a Chartered Professional (Geology) and is a full time employee of Snowden Mining Industry Consultants. Mr jones has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent person as defined in the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Ivor Jones and Shane Fieldgate consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.