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GLOBE METALS & MINING LIMITED — Capital/Financing Update 2014
Aug 24, 2014
64965_rns_2014-08-24_4371d2bd-acc4-44d5-816f-d7df807b4a0b.pdf
Capital/Financing Update
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ASX RELEASE
ASX RELEASE 30 June 2013
25 August 2014
Investment Summary
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ASX listed resources company (ASX:GBE)
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100% interest held on projects in Malawi including niobium, graphite and rare earths
Machinga Nb‐Ta & REE Project Update
Globe Metals & Mining (“ Globe ” or “ the Company ”; ASX:GBE) has completed a soil and rock chip sampling programme at its Machinga project, in Malawi.
- Malawi Kanyika Niobium project in feasibility optimisation
Highlights
Directors and Management
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Non‐Executive Chairperson Ms Alice Wong
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Managing Director Mr Alistair Stephens
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Executive Director & Deputy CEO
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Ms Shasha Lu
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The results of assays of 224 soil and 79 rock chip samples indicated potential niobium (Nb), tantalum (Ta) and rare earth element (REE) mineralisation.
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Preliminary geological investigations indicate similarities with Globe’s Kanyika Niobium Project.
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Non‐Executive Director
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Mr Jingbin Tian
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Independent Non‐executive Director
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Mr William Hayden Mr Bo Tan Mr Alex Ko
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CFO & Company Secretary Ms Kerry Angel
FPOS 469,729,062 OPTIONS 9,450,000 (various)
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Soil samples returned assays up to 2,490ppm Nb2O5 and 134ppm Ta2O5, which compares favourably with soil samples collected from over the KNP resource.
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Rock chips assays up to 2,812ppm Nb2O5 and 180ppm Ta2O5, are similar to the resource grade of the KNP
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In addition to the Nb‐Ta results, there are anomalous soil sample assays of up to 3,675ppm Total Rare Earth Oxides (TREO) including 391ppm yttrium (Y),
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The sampling programmes to date (2013 & 2014) have now defined several Nb‐Ta and TREO anomalies.
Contact
Alistair Stephens Managing Director [email protected] T: +61 08 9327 0700
Globe Metals and Mining Ltd | Level 1, Suite 2, 16 Ord Street, West Perth, WA, 6005 | PO Box 1811 West Perth WA 6872 | P: +61 8 9327 0700 F: +61 8 9327 0798 | web: www.globemetalsandmmining.com.au | Email: [email protected] | ABN 33 114 400 609 | ASX:GBE
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Summary
The Mac h inga Proje c t, located approximat e ly 210 kil o metres southeast of L i longwe (Fi g ure 1), is considered prospecti v e for Nb, Ta and rare e arth elements (REEs). W ithin the p roject area Globe has identified several are a s of potenti a l Nb‐Ta an d TREO mineralisation.
In the M a rch Quarte r ly Report, G lobe advised that it ha d received the assays o f 365 soil samples and that the r esults were sufficiently encouragin g to warran t further sa m pling to b e tter define the Nb‐Ta and TREO anomalism . Consequently further soil and rock chip sampling was com p leted duri n g the June Quarter and the assa y results of t h is work are now availa b le.
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Figure 1: Map showing location of Machinga Project in Malawi.
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The following updates shareholders on the status of the exploration activities at Machinga.
A geochemical sampling programme comprising 224 soil and 79 rock chip samples was completed with assays returned in July. The results are considered to be encouraging, and contouring of the soil assay results reveals the show the extent of the anomalism for the respective commodities (refer and Figures 2 & 3 below).
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a) One Nb‐Ta near‐continuous anomaly (Anomaly A) covering 3.8 kilometres of strike at a 1000ppm Nb2O5 cut‐off contour level.
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b) A further Nb‐Ta anomaly (Anomaly B) at the 1000ppm Nb2O5 cut‐off contour covering approximately 1.5 kilometres of strike, but remains open‐ended, to the west of the main anomaly described above.
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c) Coincident with Anomaly A is a TREO anomaly (Anomaly C) covering 3.2 kilometres of strike at a 2000ppm TREO cut‐off contour level.
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d) Partially coincident with Anomaly B, also at the 2000ppm TREO contour but extending a further 1.1 kilometres north is Anomaly D.
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Figure2: Map showing extent of Nb2O5 soil anomalism at the Machinga Project. NB: The rock chips are colour coded at the same levels as the soil assay contours
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Figure3: Map showing extent of TREO soil anomalism at the Machinga Project. NB: The rock chips are colour coded at the same levels as the soil assay contours
Based on geological m apping an d preliminar y geochemi c al analysis i t would ap p ear that th e source of the pote n tial Nb‐Ta m ineralisati o n at Machi n ga is the m ineral pyro c hlore [(Na C a)2Nb(Ta,U) 2 O6(OH,F)], which is t h e principal Nb‐Ta mineral at Globe ’ s Kanyika Niobium Proj e ct. The Nb‐ i n‐soil assay values are of similar tenor to th o se obtaine d previousl y from soil s a mpling co m pleted ove r the Kanyi k a Niobium Project resource.
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To determine the potential source of the TREO (including yttrium) anomalism requires further geochemical analyses.
The Machinga Licence (EPL0230/07R) is currently being reviewed under the Ministry of Mines (MoM) renewal process. Although the licence has passed its renewal date Globe has met all its statutory commitments including the relinquishment of 50% of the EPL area as required under Malawi law and indications from the MoM are that it will be renewed imminently. Globe has requested written confirmation from the MoM and at this stage is confident that the EPL will be renewed.
ENDS
Competent Person: The information in this presentation that relates to Globe Metals & Mining (ASX:GBE) is based on information compiled, reviewed or prepared by Mr Fergus Jockel, Exploration Manager for Globe Metals & Mining, who is a Member of the Australasian Institute of Mining & Metallurgy and of the Australian Institute of Geoscientists. Mr Jockel has sufficient experience, which is relevant to the style of mineralisation and type of deposits under consideration and to the activities undertaken, 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 Jockel consents to the inclusion in this presentation of the matters based on this information, in the form and context in which they appear.
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JORC TABLE 1
Section 1 Sampling Techniques and Data
| Criteria | Explanation | Commentary | |
|---|---|---|---|
| Sampling | • Nature and quality of sampling (e.g., | | Rock chip samples were collected by |
| techniques | cut channels, random chips, or specific | Globe Metals and Mining Ltd where | |
| specialised industry standard | suitable outcrop was identified. | ||
| measurement tools appropriate to the | | Soil samples were collected along | |
| minerals under investigation, such as | predetermined samples lines. | ||
| down hole gamma sondes, or handheld | |
The rock chips and soil samples | |
| XRF instruments, etc.). These examples | collected were approximately 2kg | ||
| should not be taken as limiting the | each. Bagging and numbering were | ||
| broad meaning of sampling. | done in the field to ensure | ||
| • Include reference to measures taken to | representivity of the sampling | ||
| ensure sample representivity and the | process. | ||
| appropriate calibration of any | | All samples collected at Machinga | |
| measurement tools or systems used. | were submitted at the ISO 17025 | ||
| • Aspects of the determination of | accredited Genalysis Laboratory | ||
| mineralisation that are Material to the | Services (Intertek) in South Africa for | ||
| Public Report. In cases where ‘industry | sample preparation. The sample | ||
| standard’ work has been done this | pulps were then shipped to Perth, | ||
| would be relatively simple (e.g., | Western Australia for chemical | ||
| ‘reverse circulation drilling was used to | analysis applying the ICP‐MS | ||
| obtain 1 m samples from which 3 kg | technique and additional multi‐ | ||
| was pulverised to produce a 30 g | element work was done applying the | ||
| charge for fire assay’). In other cases | ARU10/MS technique. | ||
| more explanation may be required, | |||
| such as where there is coarse gold that | |||
| has inherent sampling problems. | |||
| Unusual commodities or mineralisation | |||
| types (e.g., submarine nodules) may | |||
| warrant disclosure of detailed | |||
| information. | |||
| Drilling | • Drill type (e.g., core, reverse | | N/A |
| techniques | circulation, open‐hole hammer, rotary | ||
| air blast, auger, Bangka, sonic, etc.) | |||
| and details (e.g., 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.). _ | |||
| Drill sample | • Method of recording and assessing | | N/A |
| recovery | 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 |
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| occurred due to preferential loss/gain | |||
|---|---|---|---|
| of fine/coarse material. | |||
| Logging | • Whether core and chip samples have | | All samples were geologically logged |
| been geologically and geotechnically | following Globe Metals and Mining | ||
| logged to a level of detail to support | procedures | ||
| appropriate Mineral Resource | |||
| estimation, mining studies and | |||
| metallurgical studies. | |||
| • Whether logging is qualitative or | |||
| quantitative in nature. Core (or | |||
| costean, channel, etc.) photography. | |||
| • The total length and percentage of the | |||
| relevant intersections logged. | |||
| Sub‐sampling | • If core, whether cut or sawn and | | Sub‐sampling and sample preparation |
| techniques and | whether quarter, half or all core taken. | protocols were in accordance with | |
| sample | • If non‐core, whether riffled, tube | acceptable exploration practices. | |
| preparation | 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. | |||
| Quality of | • The nature, quality and | | All rock chips and soil samples were |
| assay data and | appropriateness of the assaying and | assayed at Genalysis Laboratory | |
| laboratory | laboratory procedures used and | Perth. | |
| tests | whether the technique is considered | | Internal Laboratory Standards and |
| partial or total. | Repeats were performed on each | ||
| • For geophysical tools, spectrometers, | batch. | ||
| handheld XRF instruments, etc., the | | Quality control procedures adapted | |
| parameters used in determining the | by Genalysis are considered to be | ||
| analysis including instrument make | adequate and to industry/ JORC | ||
| and model, reading times, calibrations | standards. | ||
| factors applied and their derivation, | |||
| etc. | |||
| • Nature of quality control procedures | |||
| adopted (e.g., standards, blanks, | |||
| duplicates, external laboratory checks) | |||
| and whether acceptable levels of | |||
| accuracy (i.e., lack of bias) and | |||
| precision have been established. | |||
| Verification of | • The verification of significant | | Globe Metal and Mining geologist |
| sampling and | intersections by either independent or | verified all samples prior to dispatch | |
| assaying | alternative company personnel. | to the laboratory. | |
| • The use of twinned holes. | | Documentation of samples is initially |
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| • Documentation of primary data, data | collected in notebooks and location | ||
|---|---|---|---|
| entry procedures, data verification, | stored in hand held GPS units before | ||
| data storage (physical and electronic) | being transferred to electronic | ||
| protocols. | format. | ||
| • Discuss any adjustment to assay data. | |||
| Location of | • Accuracy and quality of surveys used to | | Hand held GPS units (GARMIN |
| data points | locate drill holes (collar and down‐hole | GPSMAP 78s) are used to define field | |
| surveys), trenches, mine workings and | location of all field samples. These | ||
| other locations used in Mineral | locations are considered accurate to | ||
| Resource estimation. | 5m. The GPS has sufficient | ||
| • Specification of the grid system used. | topographic control warranted for | ||
| • Quality and adequacy of topographic | geochemical sampling. GPS data is | ||
| control. | downloaded via MAP SOURCE into MS | ||
| Excel. | |||
| Data spacing | • Data spacing for reporting of | | Sample locations were selected after |
| and | Exploration Results. | an initial ground radiometric survey in | |
| distribution | • Whether the data spacing and | 2013. Once the survey was complete | |
| distribution is sufficient to establish the | an soil survey program was conducted | ||
| degree of geological and grade | and following from those results | ||
| continuity appropriate for the Mineral | additional samples were collected | ||
| Resource and Ore Reserve estimation | during the recent program. | ||
| procedure(s) and classifications | |||
| applied. | |||
| • Whether sample compositing has been | |||
| applied. | |||
| Orientation of | • Whether the orientation of sampling | | Structure unknown from rock chip |
| data in | achieves unbiased sampling of possible | and soil sampling. | |
| relation to | structures and the extent to which this | ||
| geological | is known, considering the deposit type. | ||
| structure | • 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. | |||
| Sample | • The measures taken to ensure sample | | Chain of custody for Globe Metal and |
| security | security. | Mining soil, rock chip and drill core | |
| samples was managed by the geology | |||
| manager. Samples were collected | |||
| from the Lilongwe office in Malawi by | |||
| MANICA (a freight company based in | |||
| Malawi) transport for delivery to | |||
| Genalysis Laboratory in Johannesburg | |||
| South Africa. | |||
| Audits or | • The results of any audits or reviews of | | No audit of data has been completed |
| reviews | sampling techniques and data. | to date |
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Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | Explanation | Commentary | Commentary |
|---|---|---|---|
| Mineral | • Type, reference name/number, location | | Exploration is conducted within |
| tenement and | and ownership including agreements or | EPL0230/07 which is 100% held by | |
| land tenure | material issues with third parties such as | Globe Metals and Mining Ltd. The | |
| status | joint ventures, partnerships, overriding | EPL covers an area of 885 km2. | |
| royalties, native title interests, historical | | The tenement is currently being | |
| sites, wilderness or national park and | reviewed under the Malawi Ministry | ||
| environmental settings. | of Mines renewal process. Globe is | ||
| • The security of the tenure held at the time | waiting for confirmation of the | ||
| of reporting along with any known | renewal and part relinquishment of | ||
| impediments to obtaining a licence to | the licence. | ||
| operate in the area. | |||
| Exploration done by other parties |
• Acknowledgment and appraisal of exploration by other parties. |
| The American Smelting and Refining Company (ASARCo) and the Atomic Energy Division of the Geological |
| Survey of Britain carried out | |||
| preliminary geological work in 1955. | |||
| Exploration activities included car‐ | |||
| mounted scintillometer survey, an | |||
| airborne scintillometer survey, | |||
| geological mapping, trenching and | |||
| diamond drilling. Radiometric | |||
| anomalies were found within the | |||
| basement gneisses associated with | |||
| outcrops of fine‐grained epidotised | |||
| rock, its pegmatitic equivalents, and | |||
| an alkaline granite ring‐dyke | |||
| peripheral to the Malosa pluton. | |||
| None of the generated data was | |||
| made available to Globe Metals. | |||
| | Detailed geological mapping over the | ||
| Malosa‐Zomba Mountains were | |||
| completed by Bloomfield et al in | |||
| 1965. | |||
| | During 1986, an airborne magnetic | ||
| and radiometric survey was carried | |||
| out by Hunting Geology and | |||
| Geophysics Limited and interpreted | |||
| by Paterson, Grant & Watson Limited | |||
| (‘PGW’) in 1987 for a United Nations | |||
| sponsored Development Programme. | |||
| This survey located a number of | |||
| Uranium channel radiometric | |||
| anomalies within the Zomba region, | |||
| including one with a peak value of | |||
| about ten times background and a |
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| length of 7 km that is coincident with | |||
|---|---|---|---|
| the eastern margin of the Malosa | |||
| Pluton. | |||
| | In November 2009 Resource Star | ||
| Limited completed an orientation soil | |||
| sampling program over Machinga | |||
| Main Anomaly, during which a total | |||
| of 136 samples were collected. | |||
| Geology | • Deposit type, geological setting and style | • | The licence area is dominated by |
| of mineralisation. | rocks of the Mesozoic Chilwa Alkaline | ||
| Province (granite, syenite and | |||
| nepheline‐syenite plutons and have | |||
| associated volcanic vents | |||
| characterised by carbonatite and | |||
| agglomerate). The Malosa Pluton | |||
| consists of a heterogeneous mixture | |||
| of syenitic and granitic rocks. | |||
| • | The REE‐Nb‐Ta mineralisation at | ||
| Machinga is associated with the | |||
| eastern margin of the Malosa Pluton | |||
| of Chilwa Alkaline Province age. | |||
| Uranium and thorium anomalies are | |||
| also associated with the REE‐Nb‐Ta | |||
| mineralisation. | |||
| Drill hole Information |
• A summary of all information material to the understanding of the exploration |
| N/A |
| results including a tabulation of the | |||
| following information for all Material drill | |||
| holes: | |||
| • easting and northing of the drill hole | |||
| collar | |||
| • elevation or RL (Reduced Level – | |||
| elevation above sea level in metres) of | |||
| the drill hole collar | |||
| • dip and azimuth of the hole | |||
| • down hole length and interception | |||
| depth | |||
| • 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. | |||
| Data aggregation |
• In reporting Exploration Results, weighting averaging techniques, |
| N/A |
| methods | maximum and/or minimum grade | ||
| truncations (e.g., 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 |
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| 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. | |||
| Relationship | • These relationships are particularly | ||
| between | important in the reporting of Exploration | | |
| mineralisation | Results. | ||
| widths and | • If the geometry of the mineralisation with | ||
| intercept | respect to the drill hole angle is known, its | ||
| lengths | nature should be reported. | ||
| • If it is not known and only the down hole | |||
| lengths are reported, there should be a | |||
| clear statement to this effect (e.g., ‘down | |||
| _hole length, true width not known’). _ | |||
| Diagrams | • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant |
| Appropriate maps are included in the body of the report |
| discovery being reported These should | |||
| include, but not be limited to a plan view | |||
| of drill hole collar locations and | |||
| appropriate sectional views. | |||
| Balanced reporting |
• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and |
| Reporting of results in this report is considered balanced. |
| high grades and/or widths should be | | All results have been reported | |
| practiced to avoid misleading reporting of | |||
| Exploration Results. | |||
| Other substantive |
• Other exploration data, if meaningful and material, should be reported including |
| Refer to body of text. |
| exploration data | (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. | |||
| Further work | • The nature and scale of planned further work (e.g., tests for lateral extensions or depth extensions or large‐scale step‐out drilling). • Diagrams clearly highlighting the areas of |
| Current geological assessments include follow‐up soil and rock chip sampling testing known Machinga Main Zone (Anomalies A – D). |
| possible extensions, including the main | |||
| geological interpretations and future | |||
| drilling areas, provided this information is | |||
| not commercially sensitive. |
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Contact:
Alistair Stephens Shasha Lu Managing D irector Deputy CEO and Ex Globe Met a ls & Mining L td Globe Metals & Mi Tel: +61 (0 ) 8 9327 070 0 Tel: + 6
Deputy CEO and Ex e cutive Direc t or Globe Metals & Mi n ing Ltd Tel: + 6 1 (0) 8 9327 0 700
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About Globe Metals & Mining
Globe is a resources c o mpany, wit h a strategy t o grow the c ompany’s gl o bal investm e nt opportu n ities in the minerals i n dustry.
Globe’s Kanyika Niobiu m Project is located in M a lawi, which will produce niobium and tantalum products; key additives i n steels and electronics.
Globe’s co r porate head office in Pert h , Australia is supported b y a regional o p erational off i ce in Lilong w e, Malawi.
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