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EMETALS LIMITED Interim / Quarterly Report 2010
64850_rns_2011-01-18_2fbfe64b-2710-477d-b825-f94a96be141c.pdf
Interim / Quarterly Report
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WEST PEAK IRON
ACN: 142 411 390
T: 08 6460 4960
F: 08 9324 3045
E: [email protected]
Suite 9, 1200 Hay Street
West Perth WA 6005
PO Box 281
West Perth WA 6872
www.westpeakiron.com.au
Directors
David Parker:
Executive Chairman
Graham Marshall:
Non-Executive Director
John Royle:
Non-Executive Director
Issued Capital
24,000,001 ordinary Shares
7,500,000 unlisted options
exercisable at 20 cents each on or
before 30 June 2013
ASX Code: WPI
West Peak Iron Ltd
December 2010 Quarterly Activities Report
The directors of West Peak Iron Ltd ('West Peak' or the 'Company') are pleased to present the December 2010 quarterly activities report.
WA Projects
Since the ASX listing the Company completed an initial review of the key tenements, including field visits and desk top work.
Pinyalling Project: Detailed outcrop mapping was completed within E59/1380 and confirms the presence of three magnetite-bearing BIFs ranging in width from 5 to 30 m which outcrop over a strike length of approximately 3 km.
Santy Well Project: Work to date has comprised the purchase and reprocessing of multi-client magnetic and radiometric data to aid in interpretation and target generation. A brief field visit was also completed to inspect the areas of iron enrichment highlighted in the prospectus. From field observations the iron enrichment is detrital in nature.
Dandaraga Project: A field trip confirmed the presence of a prominent BIF ridge, 2.5km long with widths up to 150m, the tenement remains in application.
During the quarter the Company applied for a range of tenements prospective for Iron Ore in Western Australia, some being subject to Ballot.
Corporate
The Company successfully raised $2,600,000 and settled on the two Tenement Sale Agreements and listed on the ASX during the quarter.
The Company had a cash balance of approximately $2,074,000 at the end of the quarter.
Project Generation and Acquisition
During the quarter West Peak reviewed a number of resource based projects for potential investment. The Company has focused on Iron Ore based acquisitions, however reviewed a range of potential resource based projects. No new projects were acquired or invested in during the quarter.
The Company will continue to grow its tenement portfolio through tenement application and corporate activity.
WEST PEAK IRON
December 2010 Quarterly Activities Report
WA Project Update
Santy Well Project
The Santy Well project consists of three tenements of which one (E59/1276) is currently granted. The two tenement applications (E59/1677 & E59/1678) are expected to be granted this quarter. Work to date has comprised the purchase and reprocessing of multi-client magnetic and radiometric data to aid in interpretation and target generation. A brief field visit was also completed to inspect the areas of iron enrichment highlighted in the prospectus. Rock chip samples from this area had returned iron grades ranging from 45.49% to 58.96%. From field observations the iron enrichment is detrital in nature. Field investigations were limited due to poor weather and pastoral activities restricting access.
Ongoing exploration will focus on delineating the extent and grade of the detrital iron enrichment. This will involve detailed field mapping and sampling in conjunction with an assessment of the geophysical data and satellite imagery.
Figure 1. Outcropping detrital iron enrichment on E59/1276
WEST PEAK IRON
December 2010 Quarterly Activities Report
Pinyalling Project
The Pinyalling project is located approximately 420 km northeast of Perth, 50 km west northwest of Paynes Find, and consists of seven tenements of which one exploration license is currently granted (E59/1380). Work for the period consisted of reprocessing open-file aeromagnetic and topographic data to assist with interpretation and target generation. The aeromagnetic data indicate approximately 7.5 km of potential BIF within the tenement area.
A field trip was conducted during the quarter to assess the iron ore targets highlighted from desktop studies. Detailed outcrop mapping was completed within E59/1380 and confirms the presence of three magnetite-bearing BIFs ranging in width from 5 to 30 m which outcrop over a strike length of approximately 3 km. Based on the field mapping results, further assessment of the geophysical data is required to delineate an iron ore target of suitable size to warrant drill testing.
Figure 2. Aeromagnetic image for tenement E59/1380
WEST PEAK IRON
December 2010 Quarterly Activities Report
Dandaraga Project
The Dandaraga tenement is located approximately 36 km southeast of Sandstone and is currently under application (ELA57/839). The Company also applied for an addition three tenements in the area (E29/804, E57/845 and E57/869) located in the vicinity to add to the project. The main tenement has a magnetic anomaly which traverses the entire tenement (27km), as shown in figure 3. The prospect was believed to have limited outcrop, however a field visit during the quarter confirmed the presence of a prominent magnetite bearing BIF ridge, 2.5km long with widths up to 150m. The BIF outcrop is coincident to a strong magnetic anomaly and as such it's anticipated that the magnetic anomaly found in the tenement is due to the presence of BIF.
This tenement is considered a high priority in the West Peak holdings and work programmes will commence as soon as the tenement is granted.
Figure 3. Open file aeromagnetic image depicting the extent of the magnetic anomaly on ELA57/839.
WEST PEAK IRON
December 2010 Quarterly Activities Report
Other Project Areas & Tenement Applications
The Company has applied for additional tenure in the Mid West based on mapped greenstone and aeromagnetic features. These applications have increased the Company's footprint in the Mid West, with project areas now comprising: Santy Well, Pinyalling, Kirkalocka, Paynes Find, Mount Magnet, Cue and Dandaraga.
The Company was advised that E59/1721, part of the Paynes Find Project, was successful in a three way Ballot. Tenements E58/393 (Mount Magnet) and E21/156 (Cue) are subject to a Ballot with several other applicants.
Additional work will be completed on these tenements closer to granting of the tenements.
Figure 4: West Peak Mid West tenements
Project Generation and Acquisition
During the quarter West Peak reviewed a number of resource based projects for potential investment. The Company has focused on Iron Ore based acquisitions, however reviewed a range of potential resource based projects. No new projects were acquired or invested in during the quarter. The Company will continue to grow its tenement portfolio through tenement application and corporate activity.
WEST PEAK IRON
December 2010 Quarterly Activities Report
Corporate
The Company completed a capital raising of $2,600,000 through the issue of 13,000,000 shares at $0.20 as part of the Initial Public Offering (IPO) as per the Prospectus dated 6 August 2010.
As part of the IPO, the Company issued 3,500,000 shares and 2,500,000 Company Options and reimbursement of costs of $110,000 through two tenement sale agreements to purchase a suite of Mid West tenements prospective for iron ore and other minerals. The Company acquired a 90% interest in the tenements and is currently awaiting processing of transfer of title.
Shane Tomlinson was appointed as Exploration Manager during the quarter. He has over 15 years experience in exploration and mine geology in Australia and overseas in a variety of commodities. This includes prior to joining West Peak two and a half years as senior exploration geologist with an emerging WA iron ore producer. As part of his remuneration package, he has been offered Company Options, comprising 1,500,000 unlisted Company Options, (1,000,000 exercisable at $0.20 and 500,000 exercisable at $0.30 both expiring on or before 30 June 2013). The Company will seek shareholder approval for these options during the March quarter.
Corporate Advisor Mandate
Since the end of the quarter the Company entered into a Corporate Advisor Mandate with Alto Capital. Alto Capital have been engaged to provide corporate advisory services, including providing corporate advice, assistance with communications strategy and investor presentations. The mandate will last six months and the fees payable will be the issue of 4,000,000 unlisted Company Options, exercisable at $0.20 on or before 30 June 2013, subject to shareholder approval. The company will seek shareholder approval for these options during the March quarter.
The Company had 24,000,001 ordinary shares, 7,500,000 unlisted Company Options (exercisable at $0.20 on or before 30 June 2013) on issue at the end of the quarter. No shares or options were issued during the quarter, however the Company will seek shareholder approval for the issue of 5,500,000 Company Options as described above during the March 2011 quarter.
Cash and cash equivalents held by the Company at the end of the quarter was approximately $2,074,000.
Yours Faithfully
David Parker
Executive Chairman
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 Australasian Institute of Geoscientists (AIG). 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.