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GREENWING RESOURCES LTD — Capital/Financing Update 2017
Jan 24, 2017
65029_rns_2017-01-24_12ee26af-6bbc-4267-a816-8c1378d84b68.pdf
Capital/Financing Update
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ASX ANNOUNCEMENT 25 JANUARY 2017
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BASS METALS DELIVERS EXPLORATION SUCCESS WITH ANDAPA DISCOVERY
Highlights
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Reconnaissance mapping and preliminary sampling has shown outcropping large flake graphite mineralisation at the Andapa discovery.
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Identification of three separate targets with significant strike lengths, hosted in soft, easily mineable, saprolitic mineralisation.
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Main target, known as Unit 2, revealed Fixed Carbon (FC) grades up to 7.74% at surface.
Bass Metals Limited (ASX: “BSM”) (the “Company”) is pleased to inform its shareholders that it has realised a material exploration success in eastern Madagascar. The discovery, known as ‘Andapa’ (Figure 2), is immediately south of the operating Antsirabe graphite mine, currently owned and operated by private Chinese mining interests, who ship their premium quality, large flake graphite concentrates directly to China.
Exploration success and a material increase in the Company’s resource inventory is a key component of Bass Metals strategy to deliver value for shareholders from the now 100% owned Graphmada large flake graphite mine and the Company’s broader permit holding.
The strategy has twin objectives of delivering increased steady state profitable production, while in parallel delivering a material increase in resource inventory. This initial but significant discovery made at Andapa is a pleasing progression while Bass continues to optimise the Graphmada
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mine. Figure 1: A large flake of graphite recovered from Andapa.
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783
Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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ASX ANNOUNCEMENT 25 JANUARY 2017
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Figure 2: Location map of the Andapa Project.
Exploration at the Andapa Project has demonstrated that the area contains at least three lenticular bodies of large flake graphite within the weathered profile. The three parallel striking graphitic units strike approximately northwest-southeast over strike distances varying between 1.3 km and 2.1 km. Sample analysis, detailed below in Table 1, returned values up to 6.26 %FC for graphite Unit 1, up to 7.74 %FC at graphite Unit 2 and at graphite Unit 3, values up to 3.95 %FC (Figure 3).
31 in-situ graphite samples for the Andapa Project were prepared, split and analysed by Bass Metals’ Graphmada Mine laboratory facility for Fixed Carbon using the Muffle Furnace method. The remaining split of the samples not used in the preliminary analysis at the Graphmada laboratory will be sent to a SANAS[1] accredited laboratory Bureau Veritas South Africa for Graphitic Carbon (GC), Total Carbon (TC) and Sulphur (S) grades.
1 South African National Accreditation System (SANAS)
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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Table 1: Preliminary Assay Results
| Insitu Sample ID |
Utm39sX | Utm39sY | From (m) | To (m) |
Interval (m) |
Lithology |
FC (%) |
|---|---|---|---|---|---|---|---|
| ANTS_001 | 301,918 | 7,974,258 | 0.00 | 0.00 | 0.00 | SAPROLITH | 0.91 |
| ANTS_002 | 302,324 | 7,974,350 | 0.00 | 0.00 | 0.00 | SAPROLITH | 2.25 |
| ANTS_003 | 301,507 | 7,974,142 | 0.00 | 1.00 | 1.00 | PEDOLITH | 1.69 |
| ANTS_004 | 301,888 | 7,974,208 | 0.00 | 1.20 | 1.20 | PEDOLITH | 0.51 |
| ANTS_005 | 302,337 | 7,974,348 | 0.00 | 1.00 | 1.00 | PEDOLITH | 3.03 |
| ANTS_006 | 302,411 | 7,974,397 | 0.00 | 1.50 | 1.50 | SAPROLITH | 0.93 |
| ANTS_007 | 302,458 | 7,974,494 | 0.00 | 1.00 | 1.00 | PEDOLITH | 1.09 |
| ANTS_008 | 302,174 | 7,974,432 | 0.00 | 0.90 | 0.90 | PEDOLITH | 7.74 |
| ANTS_009 | 301,991 | 7,974,147 | 0.00 | 1.10 | 1.10 | PEDOLITH | 0.20 |
| ANTS_010 | 301,938 | 7,974,196 | 0.00 | 1.50 | 1.50 | SAPROLITH | 0.91 |
| ANTS_011 | 301,872 | 7,974,397 | 0.00 | 1.00 | 1.00 | PEDOLITH | 1.46 |
| ANTS_012 | 301,240 | 7,974,367 | 0.00 | 1.00 | 1.00 | PEDOLITH | 0.82 |
| ANTS_013 | 301,754 | 7,974,305 | 0.00 | 1.00 | 1.00 | PEDOLITH | 1.52 |
| ANTS_014 | 302,692 | 7,974,436 | 0.00 | 0.70 | 0.70 | PEDOLITH | 1.50 |
| ANTS_015 | 302,685 | 7,975,575 | 0.00 | 0.50 | 0.50 | PEDOLITH | 1.92 |
| ANTS_016 | 302,418 | 7,975,681 | 0.00 | 0.90 | 0.90 | PEDOLITH | 1.28 |
| ANTS_017 | 302,360 | 7,975,791 | 0.00 | 1.20 | 1.20 | PEDOLITH | 2.50 |
| ANTS_018 | 302,370 | 7,975,791 | 0.00 | 1.00 | 1.00 | PEDOLITH | 2.26 |
| ANTS_019 | 302,390 | 7,975,790 | 0.00 | 1.20 | 1.20 | PEDOLITH | 1.75 |
| ANTS_020 | 302,556 | 7,975,861 | 0.00 | 1.00 | 1.00 | PEDOLITH | 2.69 |
| ANTS_021 | 302,528 | 7,975,932 | 0.00 | 1.00 | 1.00 | PEDOLITH | 1.87 |
| ANTS_022 | 302,169 | 7,975,645 | 0.00 | 1.10 | 1.10 | PEDOLITH | 0.91 |
| ANTS_023 | 302,136 | 7,975,598 | 0.00 | 1.10 | 1.10 | PEDOLITH | 1.19 |
| ANTS_024 | 302,110 | 7,975,706 | 0.00 | 1.00 | 1.00 | PEDOLITH | 4.31 |
| ANTS_025 | 302,095 | 7,975,730 | 0.00 | 1.00 | 1.00 | PEDOLITH | 2.88 |
| ANTS_026 | 301,945 | 7,975,104 | 0.00 | 0.80 | 0.80 | PEDOLITH | 1.02 |
| ANTS_027 | 300,438 | 7,974,330 | 0.00 | 1.20 | 1.20 | PEDOLITH | 3.95 |
| ANTS_028 | 300,388 | 7,974,699 | 0.00 | 1.40 | 1.40 | PEDOLITH | 2.14 |
| ANTS_029 | 301,797 | 7,975,988 | 0.00 | 0.00 | 0.00 | SAPROLITH | 5.65 |
| ANTS_030 | 302,326 | 7,975,799 | 0.00 | 0.00 | 0.00 | SAPROLITH | 6.26 |
| ANTS_031 | 302,524 | 7,975,610 | 0.00 | 0.00 | 0.00 | SAPROLITH | 6.16 |
Table 1: Table showing graphite sample results at the Andapa Project.
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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Figure 3: Map showing selected sample results at the Andapa Project.
A systematic exploration program will be planned over the three graphitic units, including an auger and pitting program with sampling. To be followed by a potential drilling and sampling program for grade estimation, flake size distribution and metallurgical testing.
In addition, the Company has recently completed the first phase of a significant drilling program currently being undertaken at the Mahefedok deposit, which is immediately adjacent to the Graphmada mine infrastructure. Assays results are currently pending from Bureau Veritas South Africa.
Bass Metals CEO, Mr Tim McManus:
“The team is excited at this discovery, especially as it’s directly south along strike of a long operating large flake graphite mine. We obtained this permit as part of the Graphmada transaction but initially did not prioritise any work on the permit given our primary focus of optimising the premium asset of Graphmada. Given these reconnaissance results we will aim to demonstrate we have a very similar asset to Graphmada; a long term low cost mining operation of premium quality large flake graphite.”
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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“We are also pleased with the progress at Mahefedok and look forward to receiving the assay results from Bureau Veritas with the aim of completing a maiden resource estimate for the deposit.”
“Having only taken operational control of the Graphmada mine in August 2016, we continue to make significant progress in executing our strategy.”
For more information, please contact: Tim McManus Chief Executive Officer Phone: (07) 3221 0783 Email: [email protected] Please visit us at: www.bassmetals.com.au
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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ASX ANNOUNCEMENT 25 JANUARY 2017
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ABOUT THE GRAPHMADA LARGE FLAKE GRAPHITE MINE
Bass Metals Ltd. is one of only five publicly listed graphite producers in the world. The company owns and operates the Graphmada large flake graphite mine, Bass’ flagship project, located in eastern Madagascar. Madagascar has been a recognized producer and exporter of graphite since 1907 and sets the world standard for product quality and flake size.
The Graphmada mine has 40-year mining permits in place, containing
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four premium quality, large flake, graphite deposits hosted in weathered graphitic gneiss, a soft, easily minable rock that incurs low mining costs. With all associated mining infrastructure and logistics in place, the mine currently produces and sells a range of graphite concentrates into multiple market segments, to customers in India, the United States and Europe.
Generating revenue through ongoing lowest quartile cost production, the mine is currently being optimised by an experienced management team to 6000 tonnes per annum with improved final graphite concentrate grades, in order to grow cash margins.
Graphmada also has significant potential for low capital intensity expansion. Bass plans to invest capital to expand production to greater than 20,000 tonnes per annum of graphite concentrate sales by late 2018.
The Company has also made the strategic decision, in parallel with the optimisation at Graphmada, to actively explore and develop deposits in the immediate proximity to the mine, with a view to materially expanding existing resource inventories.
The Loharano deposit has provided the bulk of the feed to the Graphmada processing plant and has total JORC compliant Indicated and Inferred resources of 5.7Mt @ 4.1% Grade with a 2% cut-off[2] . These resources are to a depth of only 6 meters, and mineralization is known to go to depth with increasing grade, and is open in all directions.
With the Company having a strong community engagement program and being well down the path in achieving its optimisation plans and growing its resource inventory, the team at Bass is confident of its plans for expansion and its future value creation for shareholders.
2 These estimates were prepared and first disclosed by Stratmin Global Resource PLC under the JORC Code 2004. The estimates have not been updated to JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Reference is made to the Company's announcement of 2 September 2015, which provides further detail regarding this information.
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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DISCLAIMER & CAUTIONARY STATEMENTS
Disclaimer
This document has been prepared by Bass Metals Limited (the “Company”). It should not be considered as an invitation or offer to subscribe for or purchase any securities in the Company or as an inducement to make an invitation or offer with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this document. This document is provided on the basis that neither the Company nor its officers, shareholders, related bodies corporate, partners, affiliates, employees, representatives and advisers make any representation or warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the document and nothing contained in the document is, or may be relied upon as a promise, representation or warranty, whether as to the past or the future. The Company hereby excludes all warranties that can be excluded by law.
Forward Looking Statements
This document may contain certain forward-looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. Actual events or results may differ materially from the events or results expected or implied in any forward-looking statement. The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward looking statements will be or are likely to be fulfilled. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities exchange disclosure requirements). The information in this document does not take into account the objectives, financial situation or particular needs of any person. Nothing contained in this document constitutes investment, legal, tax or other advice.
Competent Person Statement
The information in this document that relates to Exploration Results and Mineral Resources is based on information compiled by Tim McManus, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy and a full-time employee of the Company.
Tim McManus has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
Tim McManus consents to the inclusion of the information in this document in the form and context in which it appears.
Subsequent Public Reporting
The information for the JORC Mineral Resource Summary is extracted from the ASX Announcement “Strategic investment in producing graphite asset” released 2 September 2015, which is available to view on www.asx.com.au. Bass Metals Ltd. confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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JORC Code, 2012 Edition – Table 1
Discussion and results within this appendix relate to the Bass Metals Ltd – Andapa Project, Madagascar Section 1 Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| • | Nature and quality of sampling (e.g. cut channels, random chips, or | • | Outcrop and regolith samples were collected on surface and included | |
| specific specialised industry standard measurement tools appropriate to | in-situ composite samples of the graphite bearing host rocks. Visual | |||
| the minerals under investigation, such as down hole gamma sounds, or | estimation of graphite percentages and flake sizes have been used to | |||
| handheld XRF instruments, etc.). These examples should not be taken as | define mineralisation prior to return of assays. The samples were | |||
| limiting the broad meaning of sampling | solar dried, manually crushed, split twice through a 50/50 riffle splitter | |||
| to obtain a representative sub-sample, weighing between 100-150g | ||||
| • | Include reference to measures taken to ensure sample representivity and | that was sent to the Bass Metals in-house laboratory for preliminary | ||
| Sampling | the appropriate calibration of any measurement tools or systems used. | Fixed Carbon analysis. The reject pulp samples will also be sent to a | ||
| techniques | SANAS accredited laboratory (Bureau Veritas) in South Africa for | |||
| • | Aspects of the determination of mineralisation that are Material to the | Graphitic Carbon (GC), Total Carbon (TC) and Sulphur (S) grades. | ||
| Public Report. In cases where ‘industry standard’ work has been done this | ||||
| would be relatively simple (e.g. ‘reverse circulation drilling was used to | ||||
| obtain 1 m samples from which 3 kg was pulverised to produce a 30 g | ||||
| charge for fire assay’). In other cases 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. | ||||
| • | Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air | • | Not Applicable | |
| Drilling | blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or | |||
| techniques | standard tube, depth of diamond tails, face-sampling bit or other type, | |||
| whether core is oriented and if so, by what method, etc.). | ||||
| • | Method of recording and assessing core and chip sample recoveries and | • | Not Applicable | |
| Drill sample | results assessed. | |||
| recovery | • | Measures taken to maximise sample recovery and ensure representative | ||
| nature of the samples. |
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| • | Whether a relationship exists between sample recovery and grade and | |||
| whether sample bias may have occurred due to preferential loss/gain of | ||||
| fine/coarse material. | ||||
| • | Whether core and chip samples have been geologically and | • | Outcrop and regolith samples were all geologically logged and | |
| geotechnically logged to a level of detail to support appropriate Mineral | photographed, and geological recording of relevant data was captured on | |||
| Resource estimation, mining studies and metallurgical studies. | Bass Metals logging templates. All data was codified to a set company | |||
| Logging | • | Whether logging is qualitative or quantitative in nature. Core (or costean, | • | codes system as per sampling and logging procedures which are in place. All logging included lithological features, estimates of graphite percentages |
| channel, etc.) photography. | and flake sizes which is quantitative and is recorded on the logging sheets. | |||
| Photographs have been taken as a qualitative check on logging when the | ||||
| • | The total length and percentage of the relevant intersections logged. | need arises. | ||
| • | If core, whether cut or sawn and whether quarter, half or all core taken. | • | Outcrop and regolith samples were solar dried, crushed and split twice | |
| using a 50:50 riffle splitter. The crushing and splitting equipment was | ||||
| • | If non-core, whether riffled, tube sampled, rotary split, etc. and whether | cleaned according to best practice procedures prior to every run. | ||
| sampled wet or dry. | • | Each sample was manually crushed to nominal -2mm and approximately | ||
| • | For all sample types, the nature, quality and appropriateness of the | 100-150g sub-samples was collected and send to the Bass Metals in-house | ||
| Sub-sampling techniques and |
sample preparation technique. | laboratory in Madagascar. The in-house laboratory then pulverized such that 80% of the sample is -75 micron or less in size. |
||
| sample | • | Quality control procedures adopted for all sub-sampling stages to | • | Reject pulp samples will be sent to a SANAS accredited laboratory (Bureau |
| preparation | maximise representivity of samples. | Veritas) in South Africa for further analysis. | ||
| • | Certified graphite standards (GC-09 and GC-10) and silica blanks | |||
| • | 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. |
(AMIS0439) will be inserted with the dispatch of the samples to the SANAS accredited laboratory (Bureau Veritas) in South Africa. |
||
| • | Bureau Veritas Laboratory will insert check samples (blanks, standards and | |||
| • | Whether sample sizes are appropriate to the grain size of the material | duplicates) to maintain QAQC standards. | ||
| being sampled. | ||||
| Quality of assay | • | The nature, quality and appropriateness of the assaying and laboratory | • | Samples were analysed at the Bass Metals in-house laboratory for a |
| data and | procedures used and whether the technique is considered partial or | preliminary evaluation of the carbon grade. The Muffle Furnace method | ||
| laboratory tests | total. | was used to determine Loss on Ignition (LoI), Volatile Matter (VM) and Fixed |
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| Carbon (FC). | ||||
| • | For geophysical tools, spectrometers, handheld XRF instruments, etc., the | • | LoI Test: a crucible is placed on an electronic balance, primarily zeroed and | |
| parameters used in determining the analysis including instrument make | the weight recorded. 1 gram +- 0.01 of the sample are added, the weight of | |||
| and model, reading times, calibrations factors applied and their | crucible + sample are recorded. The crucible is placed in the Muffle Furnace | |||
| derivation, etc. | at 950°C +-25°C for 8 hours continuously. After the crucible is removed and | |||
| cooled, the ash + crucible is then weighed and recorded. The LoI % is | ||||
| • | Nature of quality control procedures adopted (e.g. standards, blanks, | calculated as follows: | ||
| duplicates, external laboratory checks) and whether acceptable levels of | ||||
| accuracy (i.e. lack of bias) and precision have been established. | LOI % = (1 - !"#$%& () +% !"#$% () (,#$#-. +*/0." ) × 100 |
|||
| • | VM Test: a crucible is placed on an electronic balance, primarily zeroed and | |||
| the weight recorded. 2 grams +- 0.01 of the sample are added, the weight | ||||
| of crucible + sample are recorded. The crucible is placed in the Muffle | ||||
| Furnace at 950°C +- 25°C for 7 minutes. After the crucible is removed and | ||||
| cooled, the ash + crucible is then weighed and recorded. The VM % is | ||||
| calculated as follows: | ||||
| V M % = (1 - !"#$%& () +% !"#$% () (,#$#-. +*/0." ) × 100 |
||||
| • | The FC % of the sample is calculated as follows: | |||
| FC % = (LOI % - VM %) | ||||
| • | Analysis by the SANAS Accredited Laboratory (Bureau Veritas) in South | |||
| Africa may include sub-sample preparation included sorting and pulverizing | ||||
| such that 80% of the sample is -75 micron or less in size. | ||||
| • | A split of the sub-sample will be analysed using a LECO Analyser to | |||
| determine Total Carbon (TC), Sulphur (S) and Graphitic Carbon (GC) | ||||
| contents (these are considered both partial and total digestion analyses). | ||||
| • | For TC and S, a stream of oxygen passes through a prepared sample (0.05 to |
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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| Criteria | JORC Code explanation | JORC Code explanation | Commentary | ||
|---|---|---|---|---|---|
| 0.6g), it is heated in a furnace to approximately 1350°C and the sulphur | |||||
| dioxide and carbon dioxide released from the sample are measured with | |||||
| infrared detection. | |||||
| • | For GC, a 0.1g sample is leached with dilute hydrochloric acid to remove | ||||
| inorganic carbon. After filtering, washing and drying, the remaining sample | |||||
| residue is roasted at 425°C to remove organic carbon. The roasted residue | |||||
| is analysed for Carbon - High temperature LECO furnace with infra-red | |||||
| detection. | |||||
| • | Internal Laboratory check samples (blanks, standards and duplicates) are | ||||
| also analysed as per normal laboratory practice. | |||||
| • | The verification of significant intersections by either independent or | • | All data was collected initially on paper log sheets by Bass Metals personnel. | ||
| alternative company personnel. | This data was hand entered into spreadsheets and validated by an external | ||||
| Verification of sampling and |
• | The use of twinned holes. | consultant. All paper log sheets were scanned, and electronic spreadsheets stored together with the photographs of the geological features logged. |
||
| assaying | • | Documentation of primary data, data entry procedures, data verification, | • | The master collar, lithology and assay database with all photographs are | |
| data storage (physical and electronic) protocols. | backed-up and stored on an external hard drive. | ||||
| • | No adjustments were made to the assay data. | ||||
| • | Discuss any adjustment to assay data. | ||||
| • | Accuracy and quality of surveys used to locate drill holes (collar and | • | Hand-held Garmin GPS’s were used to locate surface locations, and final | ||
| down-hole surveys), trenches, mine workings and other locations used in | location coordinates were completed taking average readings up to 5 | ||||
| Location of data | Mineral Resource estimation. | minutes and with estimated positional errors between 1 and 3 meters. | |||
| points | • | The WGS84 UTM Zone 39S projection system is used at the Andapa Project. | |||
| • | Specification of the grid system used. | ||||
| • | Quality and adequacy of topographic control. | ||||
| • | Data spacing for reporting of Exploration Results. | • | Outcrop and regolith samples were collected along 3 historical mapped | ||
| Data spacing and | graphitic units. The purpose of the sample locations was to confirm the | ||||
| distribution | • | Whether the data spacing and distribution is sufficient to establish the | presence of the historical mapped graphitic units within the project area. | ||
| degree of geological and grade continuity appropriate for the Mineral | • | The data collected is insufficient to determine a Mineral Resource and are |
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783
Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| Resource and Ore Reserve estimation procedure(s) and classifications | considered preliminary exploration results only. | |||
| applied. | • | Sample compositing has not been applied. | ||
| • | Whether sample compositing has been applied. | |||
| • | Whether the orientation of sampling achieves unbiased sampling of | • | Not Applicable | |
| Orientation of | possible structures and the extent to which this is known, considering the | |||
| data in relation | deposit type. | |||
| to geological | ||||
| 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. | ||||
| • | The measures taken to ensure sample security. | • | Samples were stored in a secure storage area at the Bass Metals sample | |
| Sample security | storage facility. | |||
| • | Samples bags were sealed as soon as sub-sampling was completed, and | |||
| stored securely until dispatch to the laboratory in South Africa via courier. | ||||
| Audits or reviews | • | The results of any audits or reviews of sampling techniques and data. | • | Not Applicable |
BASS METALS LTD. (ASX: BSM) Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| • | Type, reference name/number, location and ownership including | • | Exploitation permit no PE 24730 is located in the Toamasina Province | |
| agreements or material issues with third parties such as joint ventures, | of Madagascar and held by the Malagasy company, Graph-Mada SARL | |||
| partnerships, overriding royalties, native title interests, historical sites, | which is a wholly owned subsidiary of the ASX listed company, Bass | |||
| Mineral tenement and | wilderness or national park and environmental settings. | Metals Ltd. Permit no PE 24730 was granted on 18/01/2007 and is | ||
| land tenure status | valid for 40 years. | |||
| • | The security of the tenure held at the time of reporting along with any | • | The permit is in good standing, and all statuary approvals are in place | |
| known impediments to obtaining a license to operate in the area. | to conduct exploration and exploitation activities throughout this | |||
| permit area, including mining. | ||||
| Exploration done by | • | Acknowledgment and appraisal of exploration by other parties. | • | Not applicable as no previous exploration has been carried out. |
| other parties | ||||
| • | Deposit type, geological setting and style of mineralisation. | • | Crystalline “hard rock” flake graphite deposits occur in graphitic | |
| gneisses within Neoproterozoic metasedimentary type rocks and | ||||
| include accessory minerals of biotite (± sillimanite / kyanite, ± garnet). | ||||
| • | Due to the tropical climate and because graphite is comparatively | |||
| inert, weathering of the “hard rock” graphitic gneiss units further | ||||
| concentrate the graphite to form residual regolith-hosted |
||||
| accumulations within the weathered profile. | ||||
| Geology | • | Regolith refers to weathered material that occurs above unweathered | ||
| bedrock. Two primary subdivisions are the pedolith (PED) and the | ||||
| saprolith (SAP). Secondary subdivisions of the pedolith, from the | ||||
| surface downwards, include soil (SL), ferruginous zone (FZ), and the | ||||
| mottled zone (MZ). Secondary subdivisions of the saprolith, include | ||||
| saprolite (SP) and saprock (SR). | ||||
| • | The Andapa Project contains at least 3 lenticular bodies of flake | |||
| graphite within the weathered profile described above. The 3 parallel | ||||
| striking graphitic units strike approx. northwest - southeast over strike |
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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ASX ANNOUNCEMENT 25 JANUARY 2017
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| Criteria | JORC Code explanation | JORC Code explanation | Commentary | ||
|---|---|---|---|---|---|
| distances varying between 1.3 km and 2.1 km. | |||||
| • | A summary of all information material to the understanding of the | • | Not Applicable | ||
| exploration results including a tabulation of the following information for | |||||
| all Material drill holes: | |||||
o easting and northing of the drill hole collar |
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o elevation or RL (Reduced Level – elevation above sea level in metres) |
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| of the drill hole collar | |||||
| Drill hole Information | o dip and azimuth of the hole |
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o down hole length and interception depth |
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o Drillhole length. |
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| • | 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. | |||||
| • | In reporting Exploration Results, weighting averaging techniques, | • | Outcrop and regolith samples from surface have been reported as in- | ||
| maximum and/or minimum grade truncations (e.g. cutting of high grades) | situ Fixed Carbon grades as analysed by the Bass Metals in-house | ||||
| and cut-off grades are usually Material and should be stated. | laboratory. | ||||
| • | No Metal Equivalents have been stated. | ||||
| Data aggregation | • | Where aggregate intercepts incorporate | short lengths of high grade | ||
| methods | results and 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 between | • | These relationships are particularly important in the reporting of | • | Not Applicable | |
| mineralisation widths | Exploration Results. | ||||
| and intercept lengths |
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
14
ASX ANNOUNCEMENT 25 JANUARY 2017
==> picture [136 x 49] intentionally omitted <==
| Criteria | JORC Code explanation | Commentary | Commentary | ||||||
|---|---|---|---|---|---|---|---|---|---|
| • | If the geometry of the mineralisation with respect to the drillhole angle is | ||||||||
| known, its 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’). | |||||||||
| • | Appropriate maps and sections (with scales) and tabulations of intercepts | • | This information |
has | been | accurately | represented | in the |
|
| Diagrams | should be included for any significant discovery being reported. | announcement and | contains all relevant information required for the | ||||||
| • | These should include, but not be limited to a plan view of drill hole collar | reader to understand the scale, orientation | and nature | of the 3 | |||||
| locations and appropriate sectional views. | graphitic units and sample locations. | ||||||||
| • | Where comprehensive reporting of all Exploration Results is not | • | The summary table of | all the outcrop and | regolith samples are | ||||
| Balanced reporting | practicable, representative reporting of both low and high grades and/or | contained within the announcement. | |||||||
| widths should be practiced to avoid misleading reporting of Exploration | |||||||||
| Results. | |||||||||
| • | Other exploration data, if meaningful and material, should be reported | • | Not Applicable | ||||||
| including (but not limited to): geological observations; geophysical survey | |||||||||
| Other substantive | results; geochemical survey results; bulk samples – size and method of | ||||||||
| exploration data | treatment; metallurgical test results; bulk density, groundwater, | ||||||||
| geotechnical and rock characteristics; potential deleterious or |
|||||||||
| contaminating substances. | |||||||||
| • | The nature and scale of planned further work (e.g. tests for lateral | • | A systematic exploration program | will be planned over the 3 graphitic | |||||
| extensions or depth extensions or large-scale step-out drilling). | units, including an | auger and pitting program | with sampling, to be | ||||||
| Further work | followed by a potential | drilling | and sampling program | for grade | |||||
| • | Diagrams clearly highlighting the areas of possible extensions, including | estimation, flake size distribution and metallurgical testing. | |||||||
| the main geological interpretations and future drilling areas, provided this | |||||||||
| information is not commercially sensitive. |
BASS METALS LTD. (ASX: BSM)
Email: [email protected] Phone: (07) 3221 0783 Post: PO Box 1048, Subiaco WA 6904 Web: www.bassmetals.com.au
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