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EMETALS LIMITED Capital/Financing Update 2012
64850_rns_2012-03-08_20c12f38-ca9b-4f26-b5d7-92ae4b8145dd.pdf
Capital/Financing Update
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WEST PEAK IRON
ASX announcement
9 March 2012
ACN: 142 411 390
T: 08 6460 4960
F: 08 9324 3045
Suite 9, 1200 Hay Street
West Perth WA 6005
PO Box 281
West Perth WA 6872
www.westpeakiron.com.au
Directors & Management
David Parker:
Executive Chairman
Graham Marshall:
Non-Executive Director
John Royle:
Non-Executive Director
Shane Tomlinson:
Exploration Manager
Sonu Cheema:
Company Secretary
Issued Capital
28,119,536 ordinary shares
13,130,465 unlisted options exercisable at 20 cents each on or before 30 June 2013
500,000 unlisted options exercisable at 30 cents each on or before 30 June 2013
ASX Code: WPI
WEST PEAK IRON LTD
IRON EXPLORATION TARGET AT BOMI SOUTH PROJECT IN LIBERIA OF
180 Mt to 300 Mt grading 20% to 65% Fe and 645Mt to 1,075 Mt grading 20% to 40% Fe
Highlights include:
- Geophysical modelling establishes substantial iron targets
- Hematite itabirite target of 180-300 Mt grading 20% to 65%, with the potential to provide direct shipping ore “DSO” and/or beneficiated feed ore “BFO”
- Magnetite itabirite target of 645-1,075 Mt grading 20% to 40% Fe, with the potential to provide “BFO”
- Project areas 100% West Peak Iron owned
- Projects located close to port, rail and road infrastructure, both existing and currently being upgraded to meet iron ore industry requirements.
The Directors of West Peak Iron Ltd (“West Peak”) are pleased to announce an initial exploration target of 180 to 300 Mt @ 20% to 65% Fe and 645Mt to 1,075Mt @ 20% to 40% based on modelling of the magnetic data acquired from the detailed airborne survey carried out across the company’s 100% owned Bomi South Iron Project in Liberia, West Africa.
West Peak Executive Chairman David Parker said, “While the exploration target is conceptual in nature the proximity to historic iron ore mines and the associated infrastructure currently being re-established provides West Peak with a unique opportunity to accelerate our iron ore business in Liberia. With an exploration target in place our team’s objective now is to drill test the key targets in order to delineate a JORC complaint Mineral Resource in the most practicable timeframe possible”.
Table 1. Bomi South exploration target¹.
| Mineralisation Style | Minimum Tonnes (Mt) | Maximum Tonnes (Mt) | Fe Grade Range |
|---|---|---|---|
| Hematite itabirite (DSO/BFO) | 180 | 300 | 20 - 65 % |
| Magnetite itabirite (BFO) | 645 | 1,075 | 20 - 40 % |
¹The estimates of exploration target sizes mentioned in this release are conceptual in nature based upon a number of assumptions and should not be interpreted to represent a Mineral Resource compliant with the JORC code as there has been insufficient exploration. Results can be considered indicative at best and it is uncertain if further exploration will define a Mineral Resource. The global tonnage target range estimate equates to modelled tonnes (hematite itabirite - 240 Mt, magnetite itabirite- 860 Mt) with a possible accuracy of ±25%.
WEST PEAK IRON
Bomi South Iron Exploration Target in Liberia
Southern Geoscience Consultants "SGC" was engaged to carry out 2D magnetic modelling of the Bomi South target areas with the aim of providing an estimate of the potential iron tonnage and depth to magnetic bodies.
The modelling was completed using both the total magnetic intensity (TMI) and analytic signal data due to the complexity of the magnetic responses. The magnetic anomalies were modelled as simple dyke-like bodies with strike direction and length constrained from the magnetic maps. The modelling method makes a number of assumptions and has limitations².
Specific gravity values of $3.0~\mathrm{t / m^3}$ and $2.0~\mathrm{t / m^3}$ were used in the tonnage calculation of the magnetite and hematite targets respectively and have been derived from reviewing comparable iron projects. Grade ranges for the differing styles of mineralisation are based on rock chip sampling carried out by West Peak (ASX announcement $18^{\text{th}}$ August 2011) and historic data reported from the Bong and Bomi Hills iron ore mines.
The Bomi South project comprises several anomalous magnetic areas which have been grouped into prospects named Areas 1 to 7 (Figure 1). Within these prospect areas are multiple magnetic bodies which have been individually modelled and indicate strike lengths of 115-1,000m and widths of 20-250m with dip angles ranging from sub-vertical to relatively flat lying. The depth extent used in the magnetite target tonnage estimation has been limited to a vertical height from surface of 150m.
Figure 1. Prospect areas overlain on the vertical integral of the analytic signal aeromagnetic image.
WEST PEAK IRON
Bomi South Iron Exploration Target in Liberia
Table 2. Prospect area exploration tonnage targets ${}^{2}$ .
| Prospect | Hematite (DSO/BFO) Tonnage (Mt) 20 - 65 % Fe | Magnetite (BFO) Tonnage (Mt) 20 - 40 % Fe |
|---|---|---|
| Area 1 | 60 | 165 |
| Area 2 | 10 | 100 |
| Area 3 | 15 | 80 |
| Area 4 | 10 | 50 |
| Area 5 | 100 | 225 |
| Area 6 | 10 | 50 |
| Area 7 | 35 | 190 |
| Total | 240 | 860 |
The Bomi South project is located approximately 60 km NNE of Monrovia and is accessed by sealed road to the western tenement boundary and a well maintained unsealed road 2 km from the eastern boundary (Figure 2).
Figure 2. Bomi South project location showing key infrastructure and iron projects.
WEST PEAK IRON
Bomi South Iron Exploration Target in Liberia
Geological Model
The basement geology of Liberia broadly consists of Archaean rocks in the west, representing a portion of the Leo-Man Shield, Palaeoproterozoic rocks in the east, and a Pan-African age domain in the south-west of the country. West Peak's iron projects are located in the Archaean-aged Liberian province which has been metamorphosed and intruded by plutonic rocks.
The geology is predominantly comprised of composite gneiss with generally E-W-striking itabirite units. These units outcrop intermittently over the tenement as ridges with strike lengths up to 4 km and elevations up to 100 m, but generally averaging 50 m. Surface iron enrichment has been identified in the form of a hematite/goethite-rich cap interpreted to overlie itabirite units.
The geological model employed by West Peak, as shown in Figure 3 below, is typical of West African iron ore deposits where metamorphism has resulted in recrystallisation of magnetite iron formations (BIFs) to produce "itabirites" with grades ranging from 20% to 40% Fe. These units have then been subjected to geochemical weathering and transformation by supergene processes to produce a hematite itabirite unit, where iron grades are enriched up to 60% Fe. Overlying this unit is a weathered cap comprising laterite, limonite, hematite and goethite where iron grades range from 20% to 65% Fe.
Detrital "canga" iron mineralisation has also been observed and represents transported and enriched BIF material down slope where it has been re-cemented in an iron-rich matrix with grades generally ranging from 40% to 60% Fe.
Figure 3. Conceptual geological model.
Figure 4. Hematite-rich cap.
Figure 5. Itabirite hematite/magnetite.
Figures 4-6. Rock chip samples collected in Bomi South licence.
Figure 6. Detrital iron enrichment.
WEST PEAK IRON
Bomi South Iron Exploration Target in Liberia
EXPLORATION WORK PROGRAM
West Peak's geophysical consultants are currently modelling the geophysical data to aid in the identification of an exploration target size for the Grand Bassa, Bobo Creek and Mt Koklun iron projects. This work is scheduled to be completed towards the end of March 2012. West Peak is currently investigating the availability of a suitable drill rig to carry out a maiden drill program.
A trenching program is ongoing at the Bomi South project to help identify the nature and extents of iron enrichment. This program is ongoing and is planned to be carried out alongside further rock chip sampling and mapping to identify prospective targets for iron enrichment.
RELEASE FROM SUSPENSION
West Peak requests that the suspension be lifted and that trading of West Peak securities be re-commenced.
For further information contact:
David Parker; Executive Chairman, West Peak Iron Ltd.
Telephone: +61 8 6460 4960
Email: [email protected]
COMPETENT PERSONS' STATEMENTS
Scientific or technical information in this news release has been prepared under the supervision of Mr Shane Tomlinson, an employee of the Company and a Member of the Australian Institute of Geoscientists (MAIG). Mr Tomlinson has sufficient experience which is relevant to the style of mineralisation 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" (the JORC Code). Mr Tomlinson consents to the inclusion in this report of the information in the form and context in which it appears.
Mr Bruce Craven is a Principal Geophysicist at Southern Geoscience Consultants. Southern Geoscience Consultants are consultants of West Peak. Mr Craven is a Fellow of the Australian Institute of Geoscientists (FAIG) and has sufficient experience which is relevant to the type of 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" (the JORC Code). Mr Craven consents to the inclusion in this announcement of the information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
2 The global exploration targets have been estimated based on the modelling of the total magnetic intensity and analytic signal of the total magnetic intensity data. The results of this method are subject to a number of assumptions and limitations. In addition to those previously mentioned, these include:
- The strike length of the modelled magnetic anomalies represents the target mineralisation;
- The geometry of the magnetic sources remains constant over their entire length;
- The depth extent has been limited to 150m below surface for the magnetic bodies that are interpreted to represent magnetite mineralisation;
- The material above the modelled magnetic bodies represents hematite mineralisation extending to surface;
- The depth extent of the interpreted hematite mineralisation is limited to 100m below surface;
- The specific gravity of the magnetite mineralisation is $3.0 \, \text{t/m}^3$ and $2.0 \, \text{t/m}^3$ for hematite mineralisation, however these values have not been quantitatively determined;
- Remanent magnetisation parameters have been estimated by modelling of the analytic signal data for some model bodies where a geologically reasonable model could not be achieved assuming induced magnetisation only;
- The exploration target estimate presented here could change considerably if lower or higher magnetic susceptibilities or densities were used, or if different remanent magnetisation parameters were applied.
FORWARD LOOKING AND EXPLORATION TARGET STATEMENTS
Some statements in this announcement regarding estimates or future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward looking statements include, but are not limited to, statements concerning the Company's exploration program, outlook, target sizes and mineralised material estimates. They include statements preceded by words such as "expected", "planned", "target", "scheduled", "intends", "potential", "prospective", "seek", "proposed" and similar expressions.
WEST PEAK IRON
Bomi South Iron Exploration Target in Liberia
ABOUT WEST PEAK
West Peak Iron Ltd (West Peak) is an exploration company with a focus on iron ore exploration.
West Peak has focused on increasing its licence holdings through direct tenement applications both in Western Australia and Liberia since floating on the ASX in 2010. West Peak's strategy is to actively explore its land holding to identify and focus on those projects which are believed to have the greatest potential for economic iron mineralisation through staged exploration programs. The Company's activities are dependent on the maintenance of appropriate licences, permits and regulatory consents which may be withheld, withdrawn or made subject to limitations.
| ASX code - WPI | Market Cap @ 28 cps - $7.9m (undiluted) |
|---|---|
| Issued shares - 28.1m | Cash - $1.06m (circa at end of Dec 2011) |
| Unlisted Options - 13.63m options |
LIBERIA
West Peak has 977 km² of granted tenure prospective for iron ore in Liberia through a combination of reconnaissance and exploration licences for iron ore in the Grand Bassa, Bomi, Bong and River Cess counties. All licences contain identified iron-bearing formations and are located close to port, rail and road infrastructure (both existing and currently being upgraded to meet iron ore industry requirements).
WESTERN AUSTRALIA
West Peak has built up a land holding in the emerging Mid-West and Yilgarn Iron Provinces. High grade rock chip results have been received from the Warriedar tenement and indicate the potential for DSO type mineralisation. A magnetite target has been identified at the Dandaraga tenement from mapping and rock chip sampling of an outcropping BIF.