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GOLDARC RESOURCES LIMITED — Interim / Quarterly Report 2016
Jul 31, 2016
64961_rns_2016-07-31_493d709d-65ca-4dad-bf2c-1c5ddbfab829.pdf
Interim / Quarterly Report
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QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDING
30 JUNE 2016
Highlights:
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Torian discovers 1km mineralised strike north of Kundana at Ambition North
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High grade system identified at Target’s 16 and 17 at Zuleika JV
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Torian completes Bardoc project acquisition
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Torian earns initial 12.25% interest in the Zuleika JV
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WA Mines Department approve infill and extension drilling at Mt Stirling
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Oversubscribed placement raises $3.5 million to accelerate Torian’s growth strategy
Torian Resources Ltd ( Torian or Company ) ( ASX:TNR ) is pleased to report on what has been another busy quarter for the Company.
During the quarter, Torian completed a $3.5 million placement to professional and sophisticated investors. The placement was oversubscribed and showed strong demand from institutional investors. The funds will be used to accelerate the Company’s duel track growth strategy. This strategy consists of a highly active, multi-phase, exploration program and further consolidation within the Goldfields region of Western Australia.
Following a successful phase one of its exploration strategy, the Company has recently committed to accelerating its exploration program. Funds will be used to commence the second phase of the company’s large four phase exploration program at the Zuleika JV as well as the planned step out drilling at the high grade Mt Stirling Well prospect. This program follow more encouraging drilling results received during the quarter.
The Company also completed the strategic acquisition of the Bardoc Project and received approval for its next drilling programme at Mt Stirling Well and Mt Stirling.
ABN: 72 002 261 565
Unit G4, 49 Melville Parade South Perth WA 6151 Phone +61 8 6216 0424 Fax +61 8 6216 0425 Kalgoorlie Office Phone/Fax:
+61 8 9093 4818 www.torianresources.com.au
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Zuleika JV Project:
As announced on 16 June 2016, all results from drilling completed during the quarter have now been received. Results to date include the discovery of 1km of mineralised strike north of the 7Moz Kundana gold camp at Target 10 (Ambition North), 1.3km’s of mineralised strike at Black Shale Target 4 and intersections that included 4m @ 11.28g/t from 44m at Target 5. Torian also identified a high-grade system at Target 16 and 17. Significant results announced from target 16 and 17 included:
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1 m at 58.80g/t Au from 1m;
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3m at 22.72g/t Au from 66m;
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3m at 16.62g/t Au from 54m; and
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5m at 5.69g/t Au from 40m.
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Figure 1: Map showing Torian’s Zuleika JV Project in relation to other ASX listed companies.
Planning for Torian’s Phase two drilling program at the Zuleika JV covering targets 1-14 is now complete. The program is designed to infill anomalous zones to a line spacing of 100m - 200m and to test gold mineralisation discovered within the oxide zone. Holes will be drilled at -60° at right angles to the interpreted strike of the geology to relatively fresh bedrock. Closer spaced drilling may be warranted in areas where anomalous gold or geology which is significantly different to the interpretation is intersected.
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Additional geophysical targets have also been identified along the Zuleika Shear. Geological mapping and rock chip sampling of these targets is scheduled to occur prior to drilling.
Mt Stirling Project:
During the quarter, metallurgical samples from Mt Stirling were collected and submitted, coinciding with the commencement of preliminary mining studies.
The Company has also planned its next drilling program at the project. The program is designed to determine the overall size of the existing high-grade resource and to assess the Project as a standalone mining operation. WA Mines Department has approved this program and drilling will commence in the September quarter.
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Figure 2: Mt Stirling Project Geology with Historical Drilling and Prospect Locations
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Bardoc Project:
Torian and its Joint Venture (JV) partner, Cascade Resources Ltd, completed the strategic acquisition of the Bardoc Project on the 4 April 2016. The project consists of 38.6km² of tenure.
The Bardoc Project is located 40km north of Kalgoorlie and 16km north of the 3mtpa Paddington processing plant owned by Zijin Mining Group (HK:2899). It lies north and along strike of Excelsior Gold’s (ASX:EXG) 1.4Moz Zoroastrian and Excelsior deposits and south of Aphrodite Gold’s (ASX:AQQ) 1.3Moz Aphrodite Project.
As shown on the map below, the recently acquired project has extensive infrastructure, which will significantly reduce the Company’s capital requirement and provide lower cost development options should an economic resource be identified at the project.
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Figure 3: Map showing Torian’s new Bardoc Project in relation to key mines, infrastructure and other assets.
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Other Projects:
Work continues on data compilation and validation for Torian’s other projects. Targets are continually being identified, not only in the Zuleika and Leonora Project areas, but also in the Bardoc Project, with exploration planning in progress. It is anticipated that when details of programmes are finalised, applications for permission to drill will be submitted to the Department of Mines and Petroleum.
Finance and Corporate:
Torian continues to consolidate ground in the Goldfields region of Western Australia. It has completed eight acquisitions in the last twelve months. This makes Torian one of the most active resource companies in the region. Its Zuleika JV project now comprises 125 tenements covering some 222.6km².
During the quarter, Torian announced that it had earned its initial 12.25% interest in the Zuleika JV. Under the terms of the Joint Venture with Cascade Resources, Torian had the right to earn its initial interest by spending $1.25 million in the first year.
Discussions regarding possible mergers and acquisitions continue as part of the Company’s strategy to further consolidate quality assets in the Goldfields region. Numerous major international gold mining groups seeking a variety of outcomes have also approached Torian. The Company is assessing these proposals in the best interests of its shareholders.
As announced on 24 May 2016, Torian appointed an additional independent non-executive director, Mr Glenn Jardine. Glenn has a wealth of operational experience in the gold sector and his appointment will further strengthen the Boards mining and operational capabilities.
On 29 June 2016, Torian successfully completed a $3.5 million placement to sophisticated and professional investors at 18.5 cents per share. The placement was oversubscribed and showed strong demand from institutional investors. The capital raised will be directed towards accelerating the Company’s exploration program at Zuleika, completing planned step out drilling at the Mt Stirling Well project and further consolidating ground in the Goldfield region.
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Torian’s MD, Matthew Sullivan Comments:
“Torian is a small company moving fast. The last quarter saw significant activity as Torian continues to execute its exploration and consolidation strategy. With more encouraging results from our drilling programs we continue to develop our assets and add value for our shareholders.”
For further information, please contact Matthew Sullivan (Torian’s MD) on (08) 6216 0424.
Yours sincerely,
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Matthew Sullivan Managing Director
About Torian:
Torian Resources Ltd ( ASX:TNR ) is a highly active Australian gold company that is focused on developing the gold mines of tomorrow. The Company has four advanced projects located in the Goldfields region of Western Australia.
Torian’s flagship Project, the Zuleika JV, lies north and partly along strike of several major gold mines including Northern Star (ASX:NST), Tribune Resources (ASX:TBR) and Rand Mining’s (ASX:RND) 7Moz East Kundana Joint Venture and Evolution’s (ASX:EVN) Frogs Legs and White Foil operations.
Since May 2015, Torian has increased its landholding at the Zuleika Project by approximately 75% via eight separate acquisitions. Torian is now the second largest landholder in this highly sought after region and is focused on fast tracking its development.
Torian has commenced a large, 4 Phase, exploration program that is targeting the Zuleika Shear and intends to further consolidate ground in this region.
Torian is also developing the high grade Mt Stirling Project which has an outcropping inferred resource located 40km North West of Leonora. Following a successful infill drilling program in December, Torian is currently completing an internal economic study on the project to assess it as a standalone mining operation.
Torian’s exploration team has an enviable track record of discovering and developing a number of multi-million ounce gold mines in this region. Torian is commencing an exciting phase in its development and we look forward to updating the market as things progress.
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TENEMENTS HELD AT 30 JUNE 2016
| TENEMENT | LOCATION | NAME OF PROJECT/JV | INTEREST |
|---|---|---|---|
| ML 70094 | Sapphire, QLD | N/A | 100% |
| ML 70095 | Sapphire, QLD | N/A | 100% |
| ML 70096 | Sapphire, QLD | N/A | 100% |
| E 37/1076 | Leonora,WA | Malcolm JV | 51% |
| M 37/475 | Leonora,WA | Malcolm JV | 51% |
| M 37/1305 | Leonora,WA | Mt StirlingWell | 100% |
| M 37/1306 | Leonora,WA | Mt StirlingJV | 51% |
| M 37/1307 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/7033 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/7094-7099 | Leonora,WA | Malcolm JV | 51% |
| P 37/7101-7102 | Leonora,WA | Mt George JV | 51% |
| P 37/7103-7105 | Leonora,WA | Malcolm JV | 51% |
| P 37/7172 | Leonora,WA | Mt StirlingWell | 100% |
| P 37/7238-7239 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/7319-7322 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/7489-7491 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/7567-7575 | Leonora,WA | Malcolm JV | 51% |
| P 37/7949 | Leonora,WA | Mt StirlingJV | 51% |
| P 37/8073-8075 | Leonora,WA | Mt Stewart JV | 51% |
| P 37/8116 | Leonora,WA | Malcolm JV | 51% |
| P 37/8195 | Leonora,WA | Mt George JV | 51% |
| P 37/8225-8227 | Leonora,WA | Mt George JV | 51% |
| P 37/8240-8243 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/8523-8524 | Leonora,WA | Malcolm JV | 51% |
| P 37/8616 | Leonora,WA | Ironstone Well | 100% |
| P 37/8623-8624 | Leonora,WA | Mt Stewart JV | 51% |
| P 37/8626-8627 | Leonora,WA | Mt Stewart JV | 51% |
| P 37/8630-8632 | Leonora,WA | Mt Stewart JV | 51% |
| P 37/8646-8647 | Leonora,WA | Mt Cutmore JV | 51% |
| P 37/8648 | Leonora,WA | Mt George JV | 51% |
| P 37/8649 | Leonora,WA | Braemore JV | 51% |
| P 37/8650 | Leonora,WA | Rabbit Warren South | 100% |
| P 37/8651 | Leonora,WA | Braemore JV | 51% |
| P 37/8652-8653 | Leonora,WA | Rabbit Warren South | 100% |
| P 37/8659-8661 | Leonora,WA | Braemore JV | 51% |
| P 37/8662 | Leonora,WA | Mt George JV | 51% |
| P 37/8663 | Leonora,WA | Rabbit Warren South | 100% |
| P 37/8664-8665 | Leonora,WA | Braemore JV | 51% |
| P 39/5570-5572 | Laverton WA | Mt Korong | 100% |
| E 24/190 | Zuleika,WA | Zuleika JV | Earning49% |
| M 16/229 | Zuleika,WA | Zuleika JV | Earning49% |
| M 16/491 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2479-2481 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2621-2623 | Zuleika,WA | Zuleika JV | Earning49% |
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| P 16/2837-2841 | Zuleika,WA | Zuleika JV | Earning49% |
|---|---|---|---|
| P 16/2843-2856 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2874-2887 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2896 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2901-2902 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2913-2915 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2943-2953 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2959-2960 | Zuleika,WA | Zuleika JV | Earning49% |
| P 16/2964-2967 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4418-4429 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4468 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4679 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4749 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4827-4831 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4865-4874 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4917-4923 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4925-4940 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/4996 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/5013 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24//5078-5081 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/5089-5093 | Zuleika,WA | Zuleika JV | Earning49% |
| P 24/5103-5105 | Zuleika,WA | Zuleika JV | Earning49% |
| M 26/572 | Zuleika,WA | Zuleika JV | Earning49% |
Torian Resources holds a 35% interest in the Joint Venture Company that is developing the Vatovorona Project in Madagascar.
CHANGE IN TENEMENT STATUS DURING THE QUARTER ENDING 30 JUNE 2016
| TENEMENT | LOCATION | NAME OF PROJECT/JV | INTEREST | TYPE |
|---|---|---|---|---|
| P 16/2913 | Zuleika,WA | Zuleika JV | Earning49% | Grant |
| P 16/2914 | Zuleika,WA | Zuleika JV | Earning49% | Grant |
| P 16/2915 | Zuleika,WA | Zuleika JV | Earning49% | Grant |
| P 16/2943 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2944 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2945 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2946 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2947 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2948 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2949 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2950 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2951 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2952 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2953 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2959 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2960 | Zuleika,WA | Zuleika JV | Earning49% | Application |
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| P 16/2964 | Zuleika,WA | Zuleika JV | Earning49% | Application |
|---|---|---|---|---|
| P 16/2965 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2966 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 16/2967 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 24/4827 | Zuleika,WA | Zuleika JV | Earning49% | Grant |
| P 24/4828 | Zuleika,WA | Zuleika JV | Earning49% | Grant |
| P 24/4932 | Zuleika,WA | Zuleika JV | Earning49% | Grant |
| P 24/5078 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 24/5079 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 24/5080 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 24/5081 | Zuleika,WA | Zuleika JV | Earning49% | Application |
| P 24/5089 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5090 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5091 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5092 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5093 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5103 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5104 | Bardoc,WA | Bardoc | 100% | Application |
| P 24/5105 | Bardoc,WA | Bardoc | 100% | Application |
| M 26/572 | Zuleika,WA | Zuleika JV | Earning49% | Purchase |
| M 37/1305 | Leonora,WA | Mt StirlingWell | 100% | Application |
| M 37/1306 | Leonora,WA | Mt StirlingJV | 51% | Application |
| M 37/1307 | Leonora,WA | Mt Cutmore JV | 51% | Application |
| P 37/8623 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8624 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8626 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8627 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8630 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8631 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8632 | Leonora,WA | Mt Stewart JV | 51% | Purchase and Grant |
| P 37/8646 | Leonora,WA | Mt Cutmore JV | 51% | Purchase Application |
| P 37/8647 | Leonora,WA | Mt Cutmore JV | 51% | Purchase Application |
| P 37/8648 | Leonora,WA | Mt George JV | 51% | Purchase Application |
| P 37/8649 | Leonora,WA | Braemore JV | 51% | Purchase Application |
| P 37/8650 | Leonora,WA | Rabbit Warren South | 100% | Purchase Application |
| P 37/8651 | Leonora,WA | Braemore JV | 51% | Purchase Application |
| P 37/8652 | Leonora,WA | Rabbit Warren South | 100% | Purchase Application |
| P 37/8653 | Leonora,WA | Rabbit Warren South | 100% | Purchase Application |
| P 37/8659 | Leonora,WA | Braemore JV | 51% | Purchase Application |
| P 37/8660 | Leonora,WA | Braemore JV | 51% | Purchase Application |
| P 37/8661 | Leonora,WA | Braemore JV | 51% | Purchase Application |
| P 37/8662 | Leonora,WA | Mt George JV | 51% | Purchase Application |
| P 37/8663 | Leonora,WA | Rabbit Warren South | 100% | Purchase Application |
| P 37/8664 | Leonora,WA | Rabbit Warren South | 100% | Purchase Application |
| P 37/8665 | Leonora,WA | Rabbit Warren South | 100% | Purchase Application |
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Disposals during the quarter:
| TENEMENT | LOCATION | NAME OF PROJECT/JV | INTEREST |
|---|---|---|---|
| P 37/6996 | Leonora,WA | Malcolm JV | 51% |
| P 37/6997 | Leonora,WA | Malcolm JV | 51% |
| P 37/6998 | Leonora,WA | Malcolm JV | 51% |
| P 37/6999 | Leonora,WA | Malcolm JV | 51% |
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