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KALAMAZOO RESOURCES LIMITED Regulatory Filings 2019

Apr 23, 2019

65210_rns_2019-04-23_f74108b8-e9a9-46c7-bab3-e8eaec8dbb0b.pdf

Regulatory Filings

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ASX Announcement and Media Release

24 April 2019

KALAMAZOO COMPLETES INITIAL DRILLING IN WA’S DOOLGUNNA REGION

Highlights

  • Kalamazoo has completed a reconnaissance drilling program at its Cork Tree Copper Project in WA’s highly prospective Doolgunna region.

  • Five anomalous copper zones were intersected (>500ppm Cu), all located within E52/2057 at the Cork Tree Copper Prospect.

  • In one of the zones there was an intersection of anomalous copper across a significant 32m width at shallow depth.

  • Maximum copper values of 2,140ppm (0.21% Cu) recorded.

  • Kalamazoo will now follow up the composite sampling with resampling of onemetre splits in the copper zones of interest and planning the next phase of exploration.

Copper-gold exploration company, Kalamazoo Resources Limited (ASX:KZR) (“ Kalamazoo ”), today announced it has completed a preliminary reverse circulation drill programme at its Cork Tree Copper Project, located in Western Australia’s highly prospective Doolgunna region (Figure 1).

Four holes (19CTWRC001 – CTWRC004) were drilled for 624 metres at the Elmo and Cork Tree Copper Prospects, within E52/2056 and E52/2057 respectively. Hole details are recorded in Table 1.

The Cork Tree Project consists of six granted exploration licences (E52/2056, E52/2057, E52/3042, E52/3514, E52/3515 and E52/3540), comprising 117 blocks and covering a contiguous area of approximately 370km[2] along the contact of the Yerrida Basin and the Earaheedy Basin (Figure 2).

The exploration area covers 40kms of strike and is located 30kms to the south-east of the DeGrussa and Monty mines owned by ASX-listed Sandfire Resources NL (ASX: SFR) (Figure 2).

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The Cork Tree Copper Project is bordered on three sides by Sandfire controlled tenure, which has now expanded to 6,674km[2 ] with 60,000m of drilling underway.[1]

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Figure 1: Location of the Cork Tree Project

Historical exploration at Cork Tree[2] has indicated very encouraging copper potential with a regional soil sampling program having defined an anomaly some 1,950m x 600m in extent with results ranging from 2ppm to 25ppm Cu. In addition, eight rock samples of ‘gossans’ have previously returned copper assay above 0.1% with a maximum of 1.42% copper.

1 Refer to ASX: SFR March 2019 Quarterly Presentation dated 18 April 2019

2 Refer to Independent Geologists Report in Section 5 of the Company’s Prospectus dated 3 October 2016

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Figure 2: Location of Cork Tree tenement package and significant deposits

Tenement Prospect Hole No Depth
(m)
Easting
(m)*
Northing
(m)*
RL
(m)*
Dip Azimuth
(M)
E52/2056 Elmo 19CTWRC001 156 785014 7170915 540 -90 -
E52/2056 Elmo 19CTWRC002 156 784827 7170974 536 -90 -
E52/2057 Cork Tree 19CTWRC003 156 761605 7160290 561 -90 -
E52/2057 Cork Tree 19CTWRC004 156 760691 7160626 561 -60 180
*Hand-held GPS survey, MGA94 Zone 50 (+/- 5m); RL (AHD)

Table 1: Drill hole details

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Figure 3: RC drill hole locations

Sampling

Samples were taken at one metre intervals but composited over four metre intervals with a duplicate every twentieth sample and a certified reference standard inserted every forty samples. A total of 156 composite and 12 QAQC samples were analysed by ALS in Perth for a 33 element suite by ICP Method ME-ICP61 after a four-acid digest: Ag, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cu, Fe, Ga, K, La, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, S, Sb, Sc, Sr, Th, Ti, Tl, U, V, W and Zn. Further analytical details are provided in the JORC table appended.

Geology

The lithologies intersected in the drilling were generally a monotonous sequence of laminated to brecciated dolomite, dolomitic siltstone, laminated arenaceous siltstone, black pyritic shale and/or siltstone, with variable depths of intensive weathering.

At the Elmo Prospect, up to 2m of colluvium overlies a variably leached clay zone with abundant silica after dolomite to depths ranging from 18-32m and then increasingly fresh dolomite with minor interbedded siltstone. Minor quartz veining occurs sporadically, and traces of very fine grained sulphide (pyrite).

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Near the Cork Tree Copper Prospect within E52/2057, hole 19CTWRC003 was positioned to test a weak moving loop EM conductor interpreted from a ground survey in 2016. One meter of soil and colluvium overlies intensively leached clays after argillaceous sediment, with very minor siliceous dolomite interbeds, to 58m vertical depth, underlain by strongly haematitic weathered argillaceous clays and minor dolomite to 148m before ending in grey weakly weathered dolomite. No fresh rock (such as carbonaceous shale) or sulphide source is evident for the EM anomaly.

Angled hole 19CTWRC004 at the western margin of the historic RAB drilling at the Cork Tree Copper Prospect was drilled to the south to undercut strongly anomalous copper in the first 20-30m of the weathered profile in the old holes. Strongly weathered clays and siliceous dolomite were intersected to 27m down hole, underlain by partially oxidised massive bedded dolomite to 47m and thereafter very weakly oxidised grey dolomite with occasional white quartz veining. A zone of oxidised limonite/haematite stained quartz veining occurs from 143-147m down hole.

Assay Results

There were five anomalous copper intersections of note (>500ppm Cu), all located within E52/2057 at the Cork Tree Copper Prospect, with three intervals reporting copper greater than 1,000ppm (0.1% Cu), with a maximum of 2,140ppm (0.21% Cu). There were no significant assays in the other base metals:

  • 19CTWRC003 – 56m-88m: 32m @ 700ppm Cu with the highest individual assay being 1,300ppm Cu. Apart from Fe, with assays up to 20.6%, there are no other base metal or mineralisation indicator elements that are anomalous. This zone was logged as extremely haematitic and limonitic shale and chert (after dolomite), with up to 30% limonitic vein quartz in a probable shear zone.

  • 19CTWRC003 – 144m–148m: 4m @ 660ppm Cu. Other than 1.01% Mn, there are no other anomalous elements. Logging indicates up to 30% vein quartz at the base of the haematite oxidation zone.

  • 19CTWRC004 – 8m–28m: 20m @ 740ppm Cu with the highest individual assay being 1,240ppm Cu. Apart from Fe, with assays up to 27.5%, there are variably weakly anomalous Co, Ni, Pb and Mn assays. This copper anomalism is within intensely weathered surficial material, extremely limonitic and ironstone-rich.

  • 19CTWRC004 – 128m–132m: 4m @ 630ppm Cu. The sample also assayed 3.6% Fe. From 126m to 132m the logging indicates quartz and feldsparrich (up to 80%) veins within grey-black shales/siltstone.

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  • 19CTWRC004 – 144m–148m: 4m @ 2,140ppm Cu. The sample also assayed 9.8% Fe and 0.15% S, the latter being slightly elevated relative to the other sulphur assays and this may indicate very low levels of copper sulphide – none was observed in logging. As noted above, the logging indicates an oxidised quartz vein zone (up to 80%) from 143m to 147m. No accompanying copper carbonates or oxides were observed.

A representative suite of multielement assays is shown in Table 2.

Discussion

Reconnaissance drilling at the southern end of the Elmo Prospect in E52/2056 has established that a substantial thickness of bedded dolomite bedrock underlies the extensive surface scree comprising siliceous boulders and breccias of secondary origin. No anomalous copper lead or zinc assays were recorded at the Elmo Prospect.

The source of the moving loop EM conductor located south east of the Cork Tree Copper Prospect in E52/2057 is not evident from the one hole completed. One possibility for the source is a structurally controlled ‘channel’ of deep weathering that has been shown to extend to at least 148m vertically.

Drilling below the shallow copper anomalies intersected in historic drilling at the western edge of the Cork Tree Copper Prospect has confirmed the anomalous response and an apparent association with strong clay weathering. Copper levels are generally lower in the underlying fresh bedrock except for a zone of oxidised quartz veining (143m-147m) that is associated with a 4m assay at 0.21% Cu from 144m-148m.

Next steps

Resampling of the anomalous copper intervals will be undertaken on a one metre basis together with the development of the next stage exploration program on the identified Cork Tree anomaly and its encouraging copper potential.

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Hole
No
From
m
To
m
Cu
ppm
Pb
ppm
Zn
ppm
Ca
%
Mg
%
Mn
ppm
Fe
%
19CTWRC003 48 52 46 104 19 0.04 0.19 47 1.29
19CTWRC003 52 56 33 95 8 0.05 0.07 116 0.33
19CTWRC003 56 60 785 174 42 0.05 0.07 255 5.94
19CTWRC003 60 64 1300 36 108 0.05 0.08 434 20.6
19CTWRC003 64 68 781 35 151 0.06 0.09 1115 27.2
19CTWRC003 68 72 500 158 94 0.05 0.06 348 14
19CTWRC003 72 76 475 50 43 0.03 0.04 176 4.55
19CTWRC003 76 80 669 38 37 0.05 0.06 281 4.27
19CTWRC003 80 84 607 52 42 0.06 0.07 591 5.53
19CTWRC003 84 88 482 54 42 0.05 0.07 613 5.53
19CTWRC003 88 92 386 83 54 0.05 0.08 778 7.26
19CTWRC004 0 4 88 12 14 13 6.01 909 2.22
19CTWRC004 4 8 79 5 41 13.6 8.74 259 0.92
19CTWRC004 8 12 760 53 42 5.59 2.1 5640 15.5
19CTWRC004 12 16 1240 262 148 1.19 0.7 4690 27.5
19CTWRC004 16 20 268 77 38 0.97 2.49 1400 2.21
19CTWRC004 20 24 598 219 70 1.48 3.68 693 4.96
19CTWRC004 24 28 840 203 189 2.6 5.33 1830 10.75
19CTWRC004 28 32 153 9 28 17.6 11.85 726 1.13
19CTWRC004 136 140 159 <2 8 11.1 18.75 2970 1.31
19CTWRC004 140 144 484 39 49 15.65 10.35 2450 1.16
19CTWRC004 144 148 2140 12 111 3.53 2.32 2430 9.8
19CTWRC004 148 152 451 6 58 4.79 3 2870 4.75
19CTWRC004 152 156 102 <2 7 16.05 10.15 1410 0.64

Table 2: Anomalous copper zones – Cork Tree Copper Prospect (E52/2057)

For further information, please contact:

Luke Reinehr, Chairman [email protected]

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About Cork Tree Project

Kalamazoo’s copper asset is the Cork Tree Project, located 830km north east of Perth, 120 kms north-north west of Wiluna and 160 kms north east of Meekatharra, in the Mid-West region. It is situated within the Peak Hill Mineral Field, the Peak Hill (SG50-08) 1:250,000 map sheet and the Thaduna (2846) 1:100,000 map sheet. The project can be accessed from Meekatharra via the Great Northern Highway, then the graded Neds Creek Station road. It consists of six granted exploration licences. Access within the tenements is straightforward through relatively flat terrain using mining and exploration tracks.

Although the project is an exploration project some infrastructure exists in the area and reasonable proximity to Meekatharra and Wiluna provides access for some exploration supplies and services. Sandfire’s DeGrussa ore processing facility lies some 30km west of the project area.

Competent Persons Statement

The information in this release that relates to the exploration data is based on information compiled by Mr Lance Govey, a competent person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Govey is an employee of BinEx Consulting who is engaged as the Exploration Manager for the Company. Mr Govey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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’. Mr Govey consents to the inclusion in this document of the matters based on his information in the form and context in which it appears.

For additional and detailed information, please refer the Independent Geologist’s Report prepared by Ravensgate in Section 5 of the Company’s Prospectus dated 3 October 2016 and Supplementary Prospectus, dated 14 November 2016.

Forward Looking Statements

Statements regarding Kalamazoo’s plans with respect to its mineral properties and programmes are forwardlooking statements. There can be no assurance that Kalamazoo’s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Kalamazoo will be able to confirm the presence of additional mineral resources/reserves, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Kalamazoo’s mineral properties. The performance of Kalamazoo may be influenced by a number of factors which are outside the control of the Company and its Directors, staff and contractors.

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Table 1. JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
Sampling techniques Nature and quality of sampling
(e.g. cut channels, random
chips, or specific specialised

The prospects were sampled by
reverse circulation (RC) drilling - a
total of 4 holes for 624 metres.
industry standard
measurement tools
appropriate to the minerals
under investigation, such as
down hole gamma sondes, or
handheld XRF instruments,
RC drilling was sampled on 1m
intervals. The one metre samples
were
composited
over
4m
intervals by scoop sampling of
bulk samples for initial assaying.
etc.). These examples should Routine QAQC samples were
not be taken as limiting the inserted in the RC sample strings
broad meaning of sampling. comprising a base metal standard
Include reference to measures
(CRM or Certified Reference
taken to ensure sample Material) every forty samples.
representivity and the
appropriate calibration of any
measurement tools or
systems used.
Aspects of the determination
of mineralisation that are
Duplicate composite samples
were taken at a rate of one every
twenty samples.
Sampling practice is appropriate
to the geology and mineralisation
Material to the Public Report.
In cases where ‘industry
of the deposit and complies with
industry best practice.
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.
Drilling techniques Drill type (e.g. core, reverse
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 _
RC drilling was conducted with a
modern Schramm T64 drill rig
(owned
by
NDRC
Drilling))
utilising high pressure and high
volume compressed air and a
115mm
(4.5”)
diameter
face
sampling percussion hammer.

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Criteria JORC Code explanation Commentary
type, whether core is oriented
and if so, by what method,
_etc.). _
Drill sample recovery Method of recording and RC sample recovery and sample
assessing core and chip condition (dry, moist or wet) was
sample recoveries and results visually logged on the original drill
assessed. logs and transferred to the digital
Measures taken to maximise drill hole database. Most
sample recovery and ensure samples were logged as dry with
representative nature of the good recovery.
samples.
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.
Logging Whether core and chip All RC chips were geologically
samples have been logged. Lithology, veining,
geologically and sulphide occurrence, oxidation
geotechnically logged to a and weathering are recorded in
level of detail to support the geology table of the drill hole
appropriate Mineral Resource database.
estimation, mining studies and
metallurgical studies.
Whether logging is qualitative

RC logging is qualitative and
descriptive in nature.
or quantitative in nature. Core Representative chip samples for
(or costean, channel, etc.) every metre drilled are stored for
photography. reference in plastic chip trays and
The total length and were photographed.
percentage of the relevant
_intersections logged. _
Sub-sampling techniques and If core, whether cut or sawn RC bulk samples were sub-
sample preparation and whether quarter, half or all
sampled using a rig mounted
core taken. cone splitter to produce original
If non-core, whether riffled, split samples for every metre of
tube sampled, rotary split, etc.
approximately 3kg weight, a
and whether sampled wet or standard industry practice.
dry. Duplicate splits of one metre
For all sample types, the intervals were taken every 20m
nature, quality and and stored on site.
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 splitter was routinely cleaned
at the end of each drill rod (6m)
or as needed if damp material
clung to the splitter.
For initial analysis, four metre
composite samples were
the sampling is representative
of the in situ material
collected by scoop from the bulk
one metre material.
collected, including for
instance results for field
Duplicate samples were collected
whensplittingRC onemetre

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Criteria JORC Code explanation Commentary
duplicate/second-half samples to assess the sampling
sampling. precision. Duplicate composite
Whether sample sizes are samples were also collected.
appropriate to the grain size of
the material being sampled.

Sample size assessment was not
conducted but used sampling
size typical for WA
reconnaissance exploration.
Quality of assay data and The nature, quality and RC composite samples were
laboratory tests appropriateness of the prepared and assayed at NATA
assaying and laboratory accredited ALS Geochemistry in
procedures used and whether Perth.
the technique is considered
partial or total.
For geophysical tools,
spectrometers, handheld XRF
instruments, etc., the
parameters used in
determining the analysis
including instrument make and
model, reading times,
calibrations factors applied
and their derivation, etc.
Nature of quality control

RC composite samples were
weighed, dried, and pulverized in
total to nominal 85% passing 75
microns and a 0.25g pulp sub
sample assayed for 33 elements
after a four acid digest by method
ME-ICP61. Elements were: Ag,
As, Ba, Be, Bi, Ca, Cd, Co, Cr,
Cu, Fe, Ga, K, La, Mg, Mn, Mo,
Na, Nb, Ni, P, Pb, S, Sb, Sc, Sr,
Th, Ti, Tl, U, V, W and Zn.
procedures adopted (e.g. In addition to the Company
standards, blanks, duplicates, QAQC samples included within
external laboratory checks) the batch the laboratory included
and whether acceptable levels
its own CRM’s, blanks and
of accuracy (i.e. lack of bias) duplicates.
and precision have been
_established. _
Verification of sampling and The verification of significant Intersection assays were
assaying intersections by either documented by a professional
independent or alternative contractor to Kalamazoo
company personnel. Resources Ltd and independently
The use of twinned holes. verified by an experienced
Documentation of primary
data, data entry procedures,
professional Exploration Manager
at Kalamazoo Resources.
data verification, data storage
(physical and electronic)
protocols.
Discuss any adjustment to
All assay data were received in
electronic format from ALS,
checked and verified by
Kalamazoo Resources Ltd.
assay data. No twinned drilling was
conducted.
Data files are exported to
independent data management
consultants, RockSolid Data
Consultancy, in Perth for final
verification and secure digital
storage.

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Criteria JORC Code explanation Commentary
No assay adjustment was
applied.
Location of data points Accuracy and quality of All drill hole collars were
surveys used to locate drill surveyed post drilling using hand
holes (collar and down-hole held GPS to x-y accuracy of 5m
surveys), trenches, mine and height (z) relative to AHD.
workings and other locations
used in Mineral Resource
estimation.
Specification of the grid
system used.
Quality and adequacy of
All collar location data is in UTM
grid (MGA94 Zone 50). Three
holes were drilled vertical, and
one to magnetic south at -60
degrees.
topographic control. No downhole surveys were
taken.
Data spacing and distribution Data spacing for reporting of Holes are widely spaced at
Exploration Results. irregular intervals peripheral to
Whether the data spacing and
historic RAB drilling for three of
distribution is sufficient to the four holes completed.
establish the degree of
geological and grade
continuity appropriate for the
Mineral Resource and Ore
Reserve estimation
Current reporting is for
progressive exploration results
and not for Mineral Resource
estimation.
procedure(s) and Sample compositing and assay
classifications applied. over 4m intervals has been
Whether sample compositing applied for initial appraisal of
has been applied. geochemical results.
Orientation of data in relation Whether the orientation of Drill holes are reconnaissance in
to geological structure sampling achieves unbiased nature and not targeted at
sampling of possible specific structures or known
structures and the extent to trends of mineralisation.
which this is known,
considering the deposit type.
If the relationship between the
drilling orientation and the

No bias is considered to have
been introduced by the existing
sampling orientation.
orientation of key mineralised
structures is considered to
have introduced a sampling
bias, this should be assessed
and reported if material.
Sample security The measures taken to ensure
Samples were secured in closed
sample security. polyweave sacks and hand
delivered to the laboratory.
Audits or reviews The results of any audits or No external audits or reviews
reviews of sampling have been completed on behalf
techniques and data. of Kalamazoo Resources Limited.

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Section 2 Reporting of Exploration Results

Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location Results reported are from E52/2056 and
tenement and
and ownership including agreements or
E52/2057, granted exploration licences
land tenure material issues with third parties such as within the Cork Tree Project area, owned
status joint ventures, partnerships, overriding 100% by Kalamazoo Resources Limited.
royalties, native title interests, historical
sites, wilderness or national park and
environmental settings.
The security of the tenure held at the time
Both licences are in good standing and
no impediment is foreseen to obtaining a
licence to operate.
of reporting along with any known
impediments to obtaining a licence to
_operate inthe area. _
Exploration Acknowledgment and appraisal of Historical exploration was undertaken by
done by other
exploration by other parties.
Western Mining Corporation, CRA
parties Exploration and Kalamazoo Resources.
Geology Deposit type, geological setting and style Sediment hosted base metal
of mineralisation. mineralization is the target, located in the
western Earaheedy Basin, Doolgunna
district.
Drill hole A summary of all information material to All requisite drill hole information is
Information the understanding of the exploration tabulated elsewhere in this release.
results including a tabulation of the
following information for all Material drill
holes:
o easting and northing of the drill hole
collar
o elevation or RL (Reduced Level –
elevation above sea level in metres) of
the drill hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o 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 In reporting Exploration Results, weighting
Drill hole intersections are reported
aggregation averaging techniques, maximum and/or above a nominal lower cut-off grade of
methods minimum grade truncations (e.g. cutting of
500ppm Cu and no upper cut-off grade
high grades) and cut-off grades are has been applied. Internal dilution has
usually Material and should be stated. been included.
Where aggregate intercepts incorporate
short lengths of high grade results and
longer lengths of low grade results, the
No metal equivalent reporting has been
applied.
procedure used for such aggregation
should be stated and some typical
examples of such aggregations should be

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Criteria JORC Code explanation Commentary
shown in detail.
The assumptions used for any reporting of
metal equivalent values should be clearly
_stated. _
Relationship These relationships are particularly Only down hole lengths are reported, no
between important in the reporting of Exploration true widths are known
mineralisatio Results.
n 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 Included elsewhere in this release.
scales) and tabulations of intercepts
should be included for any significant
discovery being reported These should
include, but not be limited to a plan view
of drill hole collar locations and
_appropriate sectional views. _
Balanced Where comprehensive reporting of all All results above 1m at 500m Cu and
reporting Exploration Results is not practicable, selected base metals from the 33
representative reporting of both low and elements analysed have been reported.
high grades and/or widths should be
practiced to avoid misleading reporting of
_Exploration Results. _
Other Other exploration data, if meaningful and None to report with this release.
substantive material, should be reported including (but
exploration not limited to): geological observations;
data 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 Further drilling may be planned to for
work (e.g. tests for lateral extensions or parts of the area not the subject of this
depth extensions or large-scale step-out program.
drilling).
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future
drilling areas, provided this information is
not commercially sensitive.

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