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KORAB RESOURCES LIMITED — Interim / Quarterly Report 2018
Oct 31, 2017
65198_rns_2017-10-31_fee8fb01-c343-4e3c-ad2e-cd66c945975e.pdf
Interim / Quarterly Report
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
31 Oc t ober 2017
QUARTE R LY A C TIVI T IES R E POR T TO 30 SEPT E MBE R 2017
KEY POINTS
-
Commenced cobalt, copper, gold, zinc, lead, and silver drilling program at Batchelor
-
Continued work on additional offtakes and sales of magnesium carbonate rock
-
Continued work on sales of phosphate rock from Geolsec quarry
-
Acquired direct 100% stake in 9 prospective Pilbara projects[1] 1
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
This i s a quarterly a ctivities repo r t for the peri o d from 1 July 2017 to 30 September 2 017 by Kora b Resources Ltd (“ Korab ”, or “ Company ”) ( ASX: KOR ) and it s subsidiaries (“ Korab Group ”). OPE R ATIONS – EXPL O RATION, EVALUA T ION AN D DEVEL O PMENT Win c hester M a gnesium C arbonate Project ( N orthern T erritory)
During the quarter K orab Group c ontinued the w ork on the W inchester pr o ject. Magnes i um carbonat e marke t continued t o strengthen, w ith prices f o r raw magne s ite and for m agnesia pro d ucts climbin g throug h the September quarter. C losures of m a gnesite mines and magne s ia plants in C hina have le d to a significant sho r tage of raw a nd intermediate materials and their pri c es continue to appreciate. Based on the infor m ation emergi n g from Chin a ’s main producing region s , this situatio n will probabl y contin u e into the se c ond half of 2 0 18.
Korab and its advis o rs continued t o work with C hinese coun t erparts on th e funding doc u mentation for the de v elopment of t he magnesium carbonate q uarry at Win c hester. The f unding is to b e provided b y way o f an equity i n jection into t he (currently ) wholly own e d Korab’s s u bsidiary Au s Mag Pty Ltd. Sever a l items of t h e subscripti o n and share h older agree m ents which will govern the rights an d obliga t ions of post - completion e quity partne r s in the pr o ject are still being finali s ed and their compl e tion will be r e ported in du e course. Ko r ab Group also continued d iscussion wi t h several en d users of magnesiu m carbonate rock regardi n g long term sales and o ff takes. Thes e discussions, whilst i ncomplete, a r e progressin g well.
For de t ails of the Winchester proj e ct see Appe n dix B.
Batchelor/Gre e n Alligat o r Polymet a llic Project (North e rn Territory)
During the quarter K orab comm e nced the drill i ng program a t Batchelor, t argeting cob a lt/copper/gol d and zinc/lead/silver mineralisati o n. Following the end of the quarter ( 31 October 2017), Kora b releas e d encouragi n g preliminary results of th e assays com p leted on the 6 meter com p osite sample s from 1 0 reverse circulation hol e s drilled at 2 of the 24 prospects w hich Korab plans to test. Anom a lous interval s of silver, le a d, gold, copper, cobalt, and antimony w ere intercept e d at prospect P16221. Anomalous intervals of gold, coba l t, and copp e r were inte r cepted at p r ospect P225. Interv a ls of copper and cobalt a nomalism w e re wider th a n anticipate d or predicte d by historic a l explor a tion data. Lab work will n o w include as s ays of single meter sampl e s from anom a lous interval s and, depending on single meter assay result s ; thin sectio n microscopy. During the q uarter, Kora b
1 See O perations - C o rporate
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 1
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
also c o ntinued othe r exploration o f the Batchelor and Green Alligator Pro j ects targetin g lithium, gold, base m etals, and ot h er minerals.
For ease of referen c e we provid e summary of the cobalt, c o pper, and go l d potential of the Batchelor Projec t in Appendi x C; summa r y of zinc, lead, and silv e r potential o f the Batch e lor Project i n Appendix D; and th e general outl i ne of inform a tion previous l y reported re g arding lithiu m at Batchelor Projec t is listed in A p pendix E.
Geol s ec Rock P hosphat e Project (Northern T erritory)
Following the end o f the quarter (25 October 2017), Kora b announced that it has cl e ared another hurdle to commerci a lisation of ph o sphate rock. Korab Grou p received a r e quest to pro v ide sample of phosp h ate rock from Geolsec P roject for fi n al grindabilit y tests follo w ing a long t e rm test-wor k program completed to date by a major chemi c al fertiliser p r oducer (CFP ) . Following o n the positiv e results of multiple t e sts run by t h is CFP on the rock already supplied (i n cluding most recently - th e reacti v ity tests), Ko r ab has been asked to provide final sa m ple of the r o ck in granule size in whic h this ro c k is to be u l timately sup p lied on a co m mercial basis so CFP c a n complete the grindabilit y tests.
Bobrikovo Gol d and Silv e r Project (Ukraine)
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
During and followin g the end of the quarter K orab Group c ontinued en g agement with contractors, advisers, potential partners, inv e stors and v a rious stakeh o lders with t h e view to r e -commencin g operat i ons at this p roject. In ad d ition to that, Korab has b een in discu s sions with several partie s expre s sing interest i n providing f u nding for the project and/ o r acquiring e i ther a part, or the whole of the pr o ject.
Ash b urton Do w ns/Mt. El e phant Pr o ject (Wes t ern Aust r alia)
During and followin g the end of t h e quarter, K o rab continued exploration of the Mt. El e phant project focusi n g primarily o n its gold and base metals p otential. OPE R ATIONS – CORP O RATE
Following the end o f the quarter (18 October 2 017, and 31 October 201 7 ) Korab announced that it has a c quired[2] direct 100% stake i n 9 Pilbara projects. Pilba r a project por t folio consists of exploratio n licenc e application s E47/3902, E 47/3903, E 4 5/5047, E46 / 1212, E46/1 2 11, E47/38 6 6, E47/3863, E47/3 8 64, and E47 / 3865 coverin g approximat e ly 315 square kilometres, and providin g Korab with a good e ntry point int o the Pilbara . These proje c ts cover pro s pective strat i graphies tar g eted by other explor e rs in the Pilbara, including Hardey form a tion and basalts (as identi f ied in GSW A mapping an d in vari o us historical exploration r e ports on G S WA open files). Korab’s t a rgets for exploration withi n these 9 projects a r e gold (incl u ding Witwat e rsrand-style conglomerat e gold), lithiu m -tin-tantalu m pegm a tites, and co p per.
CONT A CT:
Andrej K. Karpinski, Executive C h airman - Aus t ralia: (08) 94 7 4 6166, Inter n ational: +61 8 9474 6166
ABOU T KORAB R E SOURCES
Korab Resources Ltd is an intern a tional minin g and exploration company with operatio n s in Australi a and E urope. Kora b ’s projects i nclude Winc h ester magn e sium carbo n ate deposit and Geolse c phosp h ate rock deposit at Batch e lor in the Northern Territor y of Australia as well as a g old and silver deposit at Bobriko v o in easter n Ukraine. T h e Company also explor e s for gold and copper at Ashbu r ton Downs/ M t. Elephant i n Western Au s tralia, and f o r gold, copp e r, lithium, tin, and tantalu m
2 All explorations lice n ce application s were acquire d through direct application.
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 2
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
at Karratha, and M a rble Bar/Nullagine in We s tern Australia. Korab als o explores fo r gold, cobalt, silver, lead, zinc, c o pper, nickel, lithium, and tin at Batch e lor and Gre e n Alligator in the Norther n Territory. More inf o rmation ab o ut Korab’s p rojects can be sourced from Korab ’ s website at www. k orab.com.au. Korab’s shar e s are traded on Australia n Securities E xchange (ASX) and on th e Berlin S tock Exchange (Berliner B örse) throug h Equiduct electronic tradin g platform.
APPENDIX A
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu
Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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| silver, Territo www.k BerlinS APP lead, zinc, co ry. More info orab.com.au. tock Exchan ENDIXA pper, nickel, rmation abo Korab’s share ge (BerlinerB lithium, and ut Korab’sp s are traded örse) through tin at Batche rojects can on Australian Equiduct ele lor and Gree be sourced SecuritiesE ctronic trading n Alligator in from Korab’ xchange (AS platform. the Northern s website a X) and on the t |
silver, Territo www.k BerlinS APP lead, zinc, co ry. More info orab.com.au. tock Exchan ENDIXA pper, nickel, rmation abo Korab’s share ge (BerlinerB lithium, and ut Korab’sp s are traded örse) through tin at Batche rojects can on Australian Equiduct ele lor and Gree be sourced SecuritiesE ctronic trading n Alligator in from Korab’ xchange (AS platform. the Northern s website a X) and on the t |
silver, Territo www.k BerlinS APP lead, zinc, co ry. More info orab.com.au. tock Exchan ENDIXA pper, nickel, rmation abo Korab’s share ge (BerlinerB lithium, and ut Korab’sp s are traded örse) through tin at Batche rojects can on Australian Equiduct ele lor and Gree be sourced SecuritiesE ctronic trading n Alligator in from Korab’ xchange (AS platform. the Northern s website a X) and on the t |
silver, Territo www.k BerlinS APP lead, zinc, co ry. More info orab.com.au. tock Exchan ENDIXA pper, nickel, rmation abo Korab’s share ge (BerlinerB lithium, and ut Korab’sp s are traded örse) through tin at Batche rojects can on Australian Equiduct ele lor and Gree be sourced SecuritiesE ctronic trading n Alligator in from Korab’ xchange (AS platform. the Northern s website a X) and on the t |
silver, Territo www.k BerlinS APP lead, zinc, co ry. More info orab.com.au. tock Exchan ENDIXA pper, nickel, rmation abo Korab’s share ge (BerlinerB lithium, and ut Korab’sp s are traded örse) through tin at Batche rojects can on Australian Equiduct ele lor and Gree be sourced SecuritiesE ctronic trading n Alligator in from Korab’ xchange (AS platform. the Northern s website a X) and on the t |
|---|---|---|---|---|
| INTE RESTS INM INING TENE MENTS ASO F 30 SEPTEM BER 2017 |
||||
| Proj ect/Tenements |
Lo cation |
Held at end o quarter f |
Acquired qua during **rter ** |
D isposed during **quarter ** |
| Batchelo Project EL29550 MLN512 MLN513 MLN514 MLN515 MLN542 MLN543 EL31341 r/Green Alligato r |
Norther Au n Territory, stralia |
100% 100% 100% 100% 100% 100% 100% 100% |
||
| Winches ML3058 ter Project 7 |
Northe rn Territory |
100% | ||
| Geolsec ML2736 Project 2 |
Northe rn Territory |
100% | ||
| Bobrikov BKB169 4420381 1589 2730410 o Project 100646545 1 |
U kraine |
100% 100% 100% 100% |
||
| Ashburto E08/211 E08/230 E52/272 E08/275 E08/275 n Downs Projec 5 7 4 6 7 t: |
Wester Au n Australia, stralia |
100% 100% 100% 100% 100% |
||
| agreem Farm-in ents/Tenemen ts |
Lo cation |
Held at end o quarter f |
Acquired qua during **rter ** |
D isposed during **quarter ** |
| none | ||||
| agreem Farm-out ents/Tenemen ts |
Lo cation |
Held at end o quarter f |
Acquired qua during **rter ** |
D isposed during **quarter ** |
| none |
APPENDIX B
WINC H ESTER PR O JECT TECH N ICAL INFO R MATION
On 10 March 2015, Korab released the result s of the expa n ded pre-feas i bility study into Winchester magn e site quarry a n d its potentia l earnings, co s ts, free cash f low, and net p resent value.
Result s of this exp a nded study h ave shown t h at the proje c t has very a t tractive econ o mics with a n aggre g ate EBITDA of $395 ml n over quarry life and att r active long-r u n annual E B ITDA of $3 2 mln/year (at 800kt/ y ear of rock s ales). The c a pital and sta r t-up costs w e re estimated at around $ 4 mln (i n cluding quarry costs of ap p roximately $1.2 mln and a contingency of ~$1mln). F ull text of th e report can be acces s ed through t h e link below:
http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=016 0 6646 20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 3
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
Deposit is located a pproximatel y 85km south of the port o f Darwin in t he Northern Territory (se e Figure 7, Figure 8 a nd Figure 9) . It is less th a n a hundred meters from sealed road, and less tha n 5km fr o m railway line linking Win c hester with Darwin port an d major Austr a lian cities.
The C ompany con f irms that all material assumptions un d erpinning th e production target in that annou n cement cont i nue to apply a nd have not materially ch a nged. This e x panded study included th e estimates of revenues and vario u s additional m aterial costs such as hau l age, port ch a rges, interest, debt repayment, r o yalties, over h eads, etc. a nd evaluate d the econo m ics of Win c hester quarr y assuming its develo p ment as a di r ect shipping o re (DSO) op e ration.
This p re-feasibility study was b a sed on the indicated mineral resour c e only. Current estimate d miner a l resources a t Winchester, including bo t h indicated and inferred c a tegories, ar e shown in th e followi n g table:
Table 1 Mineral resources estimate
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co
Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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| At 40% MgO Cu t-Off |
MgCO Mass |
MgO grade |
|---|---|---|
| ‘000 To nnes |
% | |
| Indicated Resources |
12,2 00 |
43.1 |
| InferredR esources |
4,4 00 |
43.6 |
| Total | 16,6 00 |
43.2 |
There has been no change to th e Winchester m ineral resource estimate s ince it was l a st reported i n the A n nual Report 2 016. This in f ormation wa s prepared a n d first disclo s ed under th e JORC Cod e 2004 o n 17 July 2007. It has no t been updat e d since to c o mply with th e JORC Cod e 2012 on th e basis t hat the infor m ation has n o t materially c hanged sinc e it was last re ported. The author of thi s report is not aware of any new i n formation or d ata that materially affects the informati o n included i n the re p ort released on 17 July 2007 and, in the case of mineral res o urces that all the materi a l assumptions and te c hnical para m eters underpinning the es t imates in the report relea s ed on 17 Jul y 2007 c ontinue to apply and have not materiall y changed. T h e form and c o ntext in whi c h the finding s of the r eport releas e d on 17 July 2 007 are presented have n o t been mate r ially modified .
Marke t for magnesium carbonat e has been g rowing at a s trong histori c al trend rat e over sever a l decad e s with the tr e nd pointing t o yet higher consumption over coming years. The main uses for magn e site is in pro d uction of vari o us types of m agnesium o x ides. Magne s ium carbona t e is also use d to pro d uce magnes i um metal w h ich is the lig h test of all m e tals, being a bout two-thir d s lighter tha n aluminium but stronger then ste e l. Magnesiu m is non-toxic, non-magneti c , has high-i m pact strengt h and is resistant to d e nting.
The main sectors w here magne s ium oxide is used include: refractory b r icks which are used to lin e steel a nd iron furn a ces; produc t ion of flame retardants; production of fire resistant and moistur e resistant building materials like m ag-wall, Mg O board and mag-cement ; production o f magnesiu m alloys used exte n sively in c a rs, airplane s , tanks, A P C-s and o ther defenc e equipment; hydro m etallurgy (primarily for nic k el and cobal t production); water purific a tion and soil treatment an d feedst o ck.
Experts expect that the market fo r magnesium carbonate will continue to e xpand due t o the growth i n all the s e sectors, h o wever the p o tential game changer is the recent dev e lopment of m agnesium-io n batteri e s which hav e 8 to 12 tim e s greater ca p acity than lit h ium-ion batt e ries and can be charged i n as littl e as 36 minut e s. Magnesium-ion battery ' s charge/dis c harge efficie n cy is 5 times higher than a lithium-ion battery. Another adv a ntage of m a gnesium-ion batteries is their ability t o perform at tempe r atures as lo w as -30°C a n d as high as +55°C whereas lithium-ion batteries ce a se to functio n at aro u nd -15°C. A d ditional ben e fit of magne s ium-ion batteries is that th e y do not us e graphite an d conse q uently are n o t dependant o n supply of t h is relatively e xpensive ma t erial.
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 4
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
The k e y determinant of the succ e ss of a magnesite project is the quality o f its magnes i um carbonat e rock a n d its proximi t y to transpor t infrastructur e . Winchester magnesite p r oject has th e advantage of being one of the highest grade magnesium carbonate d e posits and a lso being lo c ated in clos e proxi m ity to rail, ro a ds, and a m ajor deep s e a port. The d eposit is a s hallow, flat l y ing ore bod y cover e d by approxi m ately 5m of c lay overburden and it ca n be mined u s ing easy op e n cut method, essen t ially as a qua r ry.
APPENDIX C
COBA L T, COPPER AND GOLD P OTENTIAL O F BATCHEL O R PROJEC T
On 1 0 February 2 0 17 Korab reported result s from the r e view of hist o rical drilling and samplin g enco m passing geo c hemical assessment of 78 4 RAB drillholes, 20 RC dr i llholes, 2,95 0 soil samples, and 6 8 6 rock chip s a mples.
Excer p ts from the r e port are sho w n below for r e ference. Full report can b e accessed at: http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 2 7144
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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There has been no material cha n ge to these h istorical exploration result s since they w ere originall y report e d on 10 February 2017.
Highli g hts (above 7 0 0ppm Co) f r om Reverse Circulation d r illing include following mu l tiple zones of cobalt, copper and g old (where a v ailable) mineralisation:
| HOLE _ID |
FROM_M | TO_M | CO_PPM | CU_ PPM |
AU_PPM |
|---|---|---|---|---|---|
| BRC2 | 41 | 42 | 725 | 120 | n/a |
| BRC2 | 43 | 44 | 1,090 | 152 | n/a |
| BRC2 | 44 | 45 | 895 | 146 | n/a |
| BRC5 | 46 | 47 | 880 | 800 | 3.45 |
| BRC5 | 56 | 57 | 1,460 | 10,000 | 2.29 |
| BRC5 | 57 | 58 | 1,300 | 12,100 | 1.31 |
| BRC5 | 58 | 59 | 1,040 | 16,900 | 1.36 |
| BRC5 | 65 | 66 | 765 | 9,420 | 1.69 |
| BRC6 | 103 | 104 | 795 | 250 | 1.64 |
Cobalt mineralisation appears to be pervasiv e , extending over multiple z ones of significant surfici a l extent, covering in a ggregate an a rea of appro x imately 13.9 mln m[2] . The largest single mineralisatio n zone c overs 10.3 m ln m[2] . In the northern zo n es cobalt ap p ears to be a ssociated wi t h copper an d gold, i n the southe r n and centr a l zones it appears to be a ssociated wi t h copper an d nickel. Hig h grade cobalt miner a lisation is l o cated either on top of, or near inters e ctions of deep faults an d crosscutting faults and fractures (see Figure 1 and Figure 2). All of the el e vated cobalt drill intercept s are associated with surface geo c hemical an o malies present in soil, ro c k chips, and shallow RA B drilling.
Highli g hts (above 5 0 0ppm Co) fr o m surface sa m pling includ e following hi g h grade cobalt samples:
| TYPE | CO_PP M |
CU_PPM | NI_PPM | |
|---|---|---|---|---|
| rockchip | 4,9 50 |
|||
| rockchip | 4,0 33 |
|||
| rockchip | 2,6 60 |
1,61 0 |
700 | |
| rockchip | 2,1 02 |
|||
| rockchip | 2,0 00 |
94 5 |
460 |
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 5
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
| rockchip | 1,9 10 |
26 0 |
1,020 | |
|---|---|---|---|---|
| rockchip | 1,5 10 |
1,05 0 |
620 | |
| rockchip | 1,4 40 |
|||
| rockchip | 1,4 10 |
80 0 |
455 | |
| rockchip | 1,1 58 |
|||
| rockchip | 1,0 20 |
|||
| rockchip | 7 50 |
|||
| rockchip | 6 70 |
|||
| rockchip | 6 33 |
10 0 |
1 | |
| rockchip | 5 70 |
|||
| rockchip | 5 45 |
1,90 0 |
820 |
Highli g hts (above 5 00 ppm C o ) from shallow RAB drilling include following zo n es of cobalt miner a lisation:
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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| minera lisation: |
|||||
|---|---|---|---|---|---|
| HOLE _ID |
FROM_M | TO_M | CO_PPM | CU_PPM | NI_PPM |
| MGR2 30 |
1 | 3 | 2,400 | 1,14 0 |
570 |
| MGR2 30 |
3 | 5 | 2,700 | 1,54 0 |
735 |
| MGR2 30 |
5 | 7 | 1,500 | 1,08 0 |
630 |
| MGR2 30 |
7 | 9 | 1,420 | 80 0 |
455 |
| MGR7 66 |
9 | 11 | 1,030 | 7 2 |
239 |
| MGR2 27 |
7 | 9 | 685 | 2,26 0 |
1,040 |
Diagram below illu s trates in 3D near surface cobalt value s in shallow R AB drilling w ith faults an d fractur e s.
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Figure 1 3D image of cobalt values in gridded shallow RAB drilling with overlayed faults and fractures (near surface drill-chip values, height and colour reflects Co grade in ppm).
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 6
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Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu
Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
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Figure 2 3D image of cobalt values above 30ppm Co in gridded geochemical soil survey with overlayed faults and fractures (height and colour reflects Co grade in ppm).
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Figure 3 Location map showing soil samples and drill collars overlayed on tenements and regional map
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 7
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
APPENDIX D
ZINC, SILVER AN D LEAD POTENTIAL OF B A TCHELOR PROJECT
Signifi c ant drill int e rcepts (whic h were repo r ted on 23 N ovember 2 0 16) are sho w n below for refere n ce. Full repo r t can be acc e ssed at:
http:// w ww.asx.com.au/asx/statist i cs/displayAn n ouncement. d o?display=p d f&idsId=018 0 5134
There has been no material cha n ge to these h istorical exploration result s since they w ere originall y report e d on 23 Nov e mber 2016.
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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| Hole | Fro m (m) To (m) Int erval (m) Ag (ppm) |
Fro m (m) To (m) Int erval (m) Ag (ppm) |
Fro m (m) To (m) Int erval (m) Ag (ppm) |
Fro m (m) To (m) Int erval (m) Ag (ppm) |
Fro m (m) To (m) Int erval (m) Ag (ppm) |
Zn (%) | Pb (%) |
|---|---|---|---|---|---|---|---|
| BRC12 | 68 | 81 | 13 | 4 | 4.71 | 0.38 | |
| In cluding |
78 79 80 |
79 80 81 |
1 1 1 |
15 10 4 |
20.60 11.80 7.35 |
0.32 1.53 0.39 |
|
| BRC12 | 88 | 101 | 13 | 4 | 3.14 | 0.11 | |
| In cluding |
90 93 94 97 |
91 94 95 98 |
1 1 1 1 |
8 14 4 4 |
5.34 7.79 4.15 6.38 |
0.05 0.15 0.14 0.09 |
|
| WBD06 | 36 | 58 | 22 | 78 | 0.21 | 3.16 | |
| In cluding |
42 44 48 50 |
44 46 50 52 |
2 2 2 2 |
210 135 99 115 |
0.16 0.16 0.79 0.21 |
8.38 13.50 2.36 2.08 |
|
| WBP01 | 101 | 124 | 23 | 15 | 4.98 | 1.60 | |
| In cluding |
104 107 108 111 115 116 117 118 119 120 |
105 108 109 112 116 117 118 119 120 121 |
1 1 1 1 1 1 1 1 1 1 |
10 7 10 10 45 19 110 50 40 13 |
5.74 5.94 12.40 9.50 13.60 7.04 24.30 14.60 8.66 3.08 |
0.11 0.85 1.13 0.49 0.98 0.29 17.30 5.60 2.70 1.41 |
Figure 4 Drilling results highlights
As pr e viously repo r ted Korab, h as secured o riginal drill l o gs, plans, s e ctions, labo r atory assays, partial pulps and drill chips and a ssociated m a terials. Drill logs show th a t the mineralisation occur s as sp h alerite (zinc s ulphide) an d galena (lea d sulphide) with occasionally large amounts of silver. Simila r ly to Woodc u tters, mineralisation occur s primarily in a chlorite-car b onate altere d dolerite wit h associ a ted significa n t faulting an d fracturing. Korab has previou s ly reported t hat the abo v e zinc/lead/silver drilling r esults are v e ry significant becau s e they pres e nt potential f or finding di s cordant, str u cturally emp l aced zinc, l e ad and silver
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252
PAGE 8
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
orebo d ies and als o present po s sibility for l a rge stratifor m , or stratab o und zinc, lead and silver deposits.
It is i m portant to n o te that there is evidence o f both styles of mineralis a tion in commercially mine d deposits nearby. Discordant, str u cturally emp l aced orebodies were disc o vered at th e Woodcutter s zinc, l e ad and silver mine and a t Area 44 some 8km to t h e north from Korab’s White Bomb/Gle n Luckie prospects. L arge stratiform or strata b ound base m etal deposi t s were disc o vered in th e Emba y ment Area a t Rum Jungl e (Browns, M t . Fitch and W hites) some 15-20km to the north west from W hite Bomb/G l en Luckie pr o spects.
Wood c utters Ag-Pb - Zn base met a l deposit wa s discovered in 1966 by B M R when the y drill-tested a promi n ent soil geo c hemical ano m aly. Open p it mining co m menced in 1 985 and w a s followed b y under g round development in late 1986. The mine operated for 14 years a n d closed in M ay 1999. Or e produ c tion totalled 4 .65 Million to n nes at 12.28 % Zn, 5.65% Pb, and 87 g/ t Ag.
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu
Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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The p o ssibility of a large zinc, lead and sil v er deposit i n the White B omb/Glen L uckie area i s sugge s ted by simil a rity of its s e tting to Wo o dcutters min e , the great t hicknesses o f significantl y miner a lised graphitic and pyritic sediments d rilled and th e large later a l extent of t h e associate d promi n ent soil geoc h emical ano m aly.
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Figure 5 Location of Winchester magnesium carbonate open pit relative to historical RC and DD drilling and soil Zn anomalies reported on 23 November 2016 (overlayed on a 3D soil Zn grid)
White Bomb is loc a ted on a mi n eralised tren d extending over 4km, which is part of a 16 km lon g target horizon and i n cludes the n e arby prospe c ts of White Bomb East, th e CRAE lead-zinc prospect, and p o ssibly the Oc c idental lead- z inc prospect .
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 9
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Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu
Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
White Bomb/Glen L uckie prosp e cts are in close proximit y to the ma g nesium carbonate deposit alread y discovered at Winches t er which is located within the adjac e nt mining lease, just fe w kilome t res to the n o rth-west and which is cur r ently nearing developmen t . This proxi m ity to Korab’ s other m ining and exploration ass e ts will provid e for conside r able logistic a nd operational advantage s during both the expl o ration phase and (should a discovery b e made) durin g any future d evelopment.
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Figure 6 Location of the Winchester open pit and the mining lease relative to the Zn anomalies reported on 23 November 2016 (overlayed on a 3D topography grid).
For de t ails of Wood c utters-style m ineralisation see the repor t of 23 Nove m ber 2016.
White Bomb pros p ect present s all feature s present in the explor a tion model for Zn/Pb/A g miner a lisation base d on the resul t s of the Woo d cutters struc t ural study:
-
Proximity t o regional sc a le basement d omes.
-
The inters e ction of regio n al scale anti c lines and tra n spressional f a ult zones. Localised f ault-induced changes in t h e orientation of anticlinal axis or changes in plung e directions.
-
Presence o f fault-related medium to s m all scale fol d s, especially d isharmonic folds.
-
Fault (she a r) zones cont a ining deformed lamproph y re dykes or s u lphidic quart z veins. Localised f a ult bends an d dilational fa u lt jogs.
-
Fault zone s with associ a ted cross cut t ing mineralis e d quartz vein arrays.
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 10
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
APPENDIX E
LITHI U M POTENTIAL OF BATCHELOR PRO J ECT
During the previous quarter, Korab reported th a t it has com m enced evalu a tion of Batch e lor project for lithium following the discoveries o f lithium min e ralisation an d pegmatite s w arms by Co r e Exploration, Lionto w n Resource s and Lithium Australia to t h e west and north-west fro m Batchelor p r oject, and th e recent “pegging” activity by Cor e Exploration t o the west and north-wes t from Korab Group minin g and e x ploration lea s es. For detai l s of other co m panies’ exp l oration resul t s see ASX r e ports by Cor e Explor a tion, Lionto w n Resources and Lithium A ustralia over the last 9 mo n ths.
The K o rab is under t aking a robu s t review of a l l geological, g eochemical, mineralogical, petrographi c and g e ophysical da t a covering t h e project ar e a with a spe c ific focus on lithium. The results will b e report e d when avail a ble.
Batch e lor project is located on t h e eastern li m b of the rock formation containing the F inniss project where lithium and p egmatites w e re reported b y Core Expl o ration, Liont o wn Resourc e s and Lithiu m Australia). Both Bat c helor and Fi n niss are loc a ted within th e western par t of the Pine C reek Oroge n (PCO) just south of D arwin in the Northern Ter r itory.
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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Accor d ing to North e rn Territory G eological Su r vey (NTGS) r eports, lithiu m mineralisati o n in the are a is rela t ed to tin and t antalum occ u rrences and o ccurs primarily in pegmati t e dykes and sills within th e Burrell Creek Form a tion of the Fi n niss River Group. Whilst g overnment r e ports show p resence of ti n within Korab’s grou n d and NTGS reports peg m atite and quartz being pre s ent at surfac e and at dept h within t he area (qu a rtz is often what remains from pegmatit e after a prol o nged weath e ring process), histori c al exploratio n by previous tenement holders was lim i ted to other m etals (primarily gold, bas e metals, uranium an d magnesite). Consequentl y , they have n ot tested the pegmatites f o r tin or lithiu m and h a ve not follow e d-up these p r eviously disc o vered occur r ences.
Korab has in the past primarily t a rgeted nickel, copper and PGM in the a rea. Conseq u ently, most of our ex p loration was limited to tes t ing mafic an d ultramafic u n its within th e area which a re considere d to be t h e primary host rocks for nickel minerali s ation.
Notwit h standing the above, our r eview of the geology of t h e area of int e rest and of t he geologic a l setting of the rece n t lithium dis c overies to t h e north-west suggests su f ficient poten t ial for lithiu m miner a lisation to w a rrant a further examinatio n . As part of t h e initial pha s e of the expl o ration, Kora b will co n tinue detaile d review of hi s torical explo r ation data, s u rface and do w nhole geoc h emistry, RAB, RC an d diamond core drill logs a n d outcrop m a pping. Korab will also und e rtake its ow n mapping an d sampling program. Proximity of t he rocks wit h in Korab’s g r ound (which are shown t o be the mai n lithium hosting rock s at Finniss pr o ject) to S-ty p e granites of the Rum Jun g le and Waterhouse graniti c dome s further enhances this pot e ntial. Accor d ing to NTGS and USGS r eports, S-typ e granites ar e often a ssociated with LCT pegm a tites and mu l tiple wide-sp r ead pegmatit e dykes and o utcrops hav e been reported by N T GS near the margins of t h ese granitic d omes. The L C T pegmatit e s are typicall y associ a ted with lat e tectonic pe r aluminous granites, are s o me distance from the so u rce and their empla c ement is co n trolled at le a st in part by shear zones. Quartz and f eldspars are the dominant miner a ls that crystallize from granitic melts, a n d the rare elements are h ighly incomp a tible in thes e miner a ls. Thus, ext r eme fraction a tion resultin g from extend e d crystalliza t ion of quartz and feldspar s can g e nerate very high conce n trations of r a re elements in residual melts. Simil a rly, individu a l pegm a tites also co n sist largely o f quartz and feldspar, an d the rare el e ments are c o ncentrated i n small v olumes. The ionic radius of Li is muc h smaller tha n that of the other alkali m etals, and L i partiti o ns into micas, cordierite, a n d amphibole s via coupled substitution r e actions.
Within the Pine Cr e ek Orogen t h e target mi n eralization is associated w ith granitic i n trusives. Th e majori t y of deposit s are found i n quartz vei n s and peg m atite dykes h osted by E a rly to Middl e Proter o zoic metas e diments. T h e metasedi m entary rocks are inter b edded shal e , sandstone,
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 11
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
conglomerate and fl y shoid sedim e nts of the B u rrell Creek F o rmation of th e Finniss Riv e r Group.. Th e pegm a tites intrude the metasediments and h a ve originate d from the S - Type Two S isters Granit e which f orms a large discordant b a tholith in the western porti o n of the Byn o e district. Likewise, quartz - tourm a line veins are fairly co m mon at the margins of the Rum Ju n gle Complex and in th e surrou n ding metase d iments.
Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
The m a jority of the F inniss pegm a tite veins are zoned, lenticular in shape , irregular in distribution an d intrud e at least in p art along th e foliation an d bedding planes of the c o untry rock. T he pegmatit e dykes and quartz v eins have pr e ferentially i n truded the less competen t shale units of the Burrell Creek Formation. In outcrop, the pegmatite dy k es are weat h ered to quar t z rubble, kaolinitic clay an d muscovite. Tertiary processes h a ve leached a nd intensely weathered t h e pegmatite s to depths i n exces s of 20 m. Th e decompose d nature of t h e pegmatites provided ea s y exploitatio n by tin miner s at the turn of last century but h as hindered an understanding of thei r petrology, c hemistry an d morph o logy. The bulk mineralo g y of unweathered pegm a tite consists of microclin e , perthite, K - feldsp a r, albite, m u scovite and quartz. Mino r component s include ca s siterite, tant a lite-columbite, ambly g onite, magn e tite, zircon, ilmenite, garnet and tourmaline. In out c rop, primary mineralogy i s preser v ed only in q u artz-rich sa m ples that eith e r consist sol e ly of quartz a nd muscovit e , or consist of feldsp a r that is pr o tected from decompositi o n by quartz-mica shielding. Feldspar is otherwis e reduc e d to kaolin. A t surface, ve i ns and dyke s of pegmatit e at the Rum Jungle Com p lex appear t o consis t mainly of microcline and q uartz, with s m all but varyi n g amounts o f muscovite. N TGS and th e Commonwealth Bu r eau of Mine r al Resource s further rep o rt that there is also incr e ased level of tungst e n and reported presence of tourmaline in drill cuttin g s taken fro m this area pr o viding further evidence of the are a ’s prospectivi t y.
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3)
Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu
Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252 PAGE 12
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Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
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Figure 7 Location of proposed Winchester quarry relative to East Arm Wharf at Darwin Port
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Figure 8 Location of Geolsec and Winchester relative to local infrastructure, roads and rail
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252
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Issue d Capital
Shares: 288 mln Options: 4 mln Last Price: 3.0 cents Market Cap : $8.64 Mln ASX: KOR BERLIN: C6S.BE
P rojects
Winchester (Rum Jungle, NT) Magne s ium carbonate (MgCO3) Geolsec (Rum Jungle, NT) P hosphate rock (P2O5)
Batchelor (Rum Jungle, NT) Au, Ag, Zn, Pb, Ni, Cu, Co Mt. Elephant (Ashburton, WA) Au, Cu Karratha (Pilbara, WA) Au, Co, Cu Marble Bar/Nullagine (Pilbara, WA) Au, Co, Cu, Li Bobrikovo (UKR) Au, Ag, Pb
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K O RA B R E SO U RC E S LIMI T ED KORAB H OUSE www.korab.co m .au
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Figure 9 Site locality plan
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Figure 10 Zinc/base metals horizon at Batchelor
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20 P R OWSE STRE E T, WEST PE R TH, WA, 600 5 , AUSTRALIA PO B OX 1958, WE S T PERTH, W A , 6872, AUST R ALIA TEL ( 08) 9474 6166 FAX (08) 93 2 2 6333 ACN 082 140 252
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