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MATSA RESOURCES LIMITED — Capital/Financing Update 2016
Dec 13, 2016
65296_rns_2016-12-13_08f99751-1215-4165-a29b-54e636bc3a25.pdf
Capital/Financing Update
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Matsa Resources Limited
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LIMITED ABN 48 106 732 487
ASX Announcement
14[th] December 2016
Further High Grade Gold Results at Fortitude
Lake Carey Gold Project
Highlights
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Results from the last 12 diamond drill holes now received from the recently completed diamond drilling program at the Fortitude gold deposit
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Further significant high grade mineralisation has been intercepted in all holes with uncut results including:
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4.5m @ 21.8g/t Au from 147.5m including 0.8m @ 89.6g/t Au
CORPORATE SUMMARY
Executive Chairman
Paul Poli
Director
Frank Sibbel
Director & Company Secretary
Andrew Chapman
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10.3m @ 3.09g/t Au from 87.7m including 0.9m @ 14.5g/t Au
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35.3m @ 3.21g/t Au from 49.7m including 12.2m @ 6.12g/t Au from 50.3m which includes 1m @ 15.7g/t Au and 0.6m @ 23.2g/t Au
Shares on Issue
144.7 million
Unlisted Options
17.02 million @ $0.25 - $0.30
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This largely infill drilling program confirms the primary mineralisation styles and the occurrence of high grade zones within the ore body
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The resource model is currently being updated to include these drilling results and will be reported in Q1 2017
Top 20 shareholders Hold 52.15%
Share Price on 13[th] December 2016
19 cents
- A ~15,000m aircore exploration drilling program which commenced on 23[rd] November remains in progress
Market Capitalisation $27.49 million
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Matsa Resources Limited
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Matsa Resources Limited (“Matsa” or “the Company” ASX: MAT) is pleased to announce the results from the last 12 diamond drill holes at the Fortitude gold deposit within the Lake Carey Gold Project.
Drilling Summary
Matsa recently completed a 2,293m HQ3 diamond drilling program at the Fortitude gold deposit. A drill hole layout showing this program with historic drilling can be seen in Figure 5. This drilling is largely infill drilling and has been planned to:
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Confirm and update the geological interpretation
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Supply sufficient samples for metallurgical testwork
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Confirm inferred mineralisation within the anticipated mining area
Geological logging, sampling and the assay procedures carried out are included in Appendix 1.
Summary of Results
The following significant high grade results have been returned:
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4.5m @ 21.8g/t Au from 147.5m including 0.8m @ 89.6g/t Au (16LCDD004)
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10.3m @ 3.09g/t Au from 87.7m including 0.9m @ 14.5g/t Au (16LCDD012)
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35.3m @ 3.21g/t Au from 49.7m including 12.2m @ 6.12g/t Au from 50.3m which includes 1m @ 15.7g/t Au and 0.6m @ 23.2g/t Au (16LCDD013)
* All intervals are downhole lengths and not true widths
**No top cuts applied
Gold mineralisation grade can be directly correlated with quartz vein intensity and sulphide mineralisation. This is a low sulphide system with the occurrence of 2-3% pyrite being significant. Sulphide minerals consist of dominant pyrite with minor arsenopyrite. Boudinaged and sigmoidal quartz veins that are concordant with the foliation are well mineralised whereas discordant veins are barren. Mineralised veins occur within a zone of pervasive sericite-siderite alteration. Figures 1 and 2 show examples of high grade mineralised ore.
All significant drilling results have been listed in Table 1.
The resource model is currently being updated with the results of the recent drilling and is expected to be completed in Q1 2017.
Planning for commencement of mining activities on an as soon as practicable basis is continuing with hydrology and metallurgical testing now in progress.
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Figure 1: Diamond Core Hole 16LCDD004 showing high grade gold mineralisation up to 89.5g/t Au associated with intense quartz veining and associated sericite-siderite alteration
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Figure 2: Diamond Core Hole 16LCDD012 showing high grade gold mineralisation up to 14.5g/t broadly correlating with quartz vein intensity
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Table 1: Fortitude Diamond Drilling Results
| Hole_ID | m From | m To | Au_g/t | Intercept Aug/t | Comments |
|---|---|---|---|---|---|
| 16LCDD004 | 15 | 15.8 | 1.43 | 1.5m @ 1.34 | |
| 16LCDD004 | 15.8 | 16.5 | 1.23 | ||
| 16LCDD004 | 81.7 | 82.2 | 1.76 | 3.5m @ 2.24 | Includes 1m of internal dilution |
| 16LCDD004 | 107 | 107.5 | 4.45 | ||
| 16LCDD004 | 107.5 | 108 | 1.56 | ||
| 16LCDD004 | 108 | 109 | 0.25 | ||
| 16LCDD004 | 109 | 110 | 3.72 | ||
| 16LCDD004 | 119.5 | 120.2 | 1.26 | 8.5m @ 2.60 | Includes 1.1m of internal dilution |
| 16LCDD004 | 120.2 | 120.8 | 3.95 | ||
| 16LCDD004 | 120.8 | 121.8 | 3.12 | ||
| 16LCDD004 | 121.8 | 122.8 | 3.33 | ||
| 16LCDD004 | 122.8 | 123.9 | 6.82 | ||
| 16LCDD004 | 123.9 | 125 | 0.3 | ||
| 16LCDD004 | 125 | 126 | 0.02 | ||
| 16LCDD004 | 126 | 126.8 | 1.52 | ||
| 16LCDD004 | 126.8 | 128 | 2.8 | ||
| 16LCDD004 | 136.3 | 137 | 2.68 | ||
| 16LCDD004 | 139 | 139.9 | 3.1 | ||
| 16LCDD004 | 141.7 | 142.2 | 6.92 | 2.3m @ 8.57 | Includes 0.8m @ 13.6 g/t |
| 16LCDD004 | 142.2 | 143 | 13.6 | ||
| 16LCDD004 | 143 | 144 | 5.38 | ||
| 16LCDD004 | 147.5 | 148.2 | 1.82 | 4.5m @ 21.80 | Includes 0.8m @ 89.6 g/t |
| 16LCDD004 | 148.2 | 149 | 1.47 | ||
| 16LCDD004 | 149 | 150 | 2.41 | ||
| 16LCDD004 | 150 | 150.7 | 28.9 | ||
| 16LCDD004 | 150.7 | 151.5 | 89.6 | ||
| 16LCDD004 | 151.5 | 152 | 2.62 | ||
| 16LCDD004 | 198 | 198.9 | 1.82 | 2.8m @ 2.39 | |
| 16LCDD004 | 198.9 | 200.2 | 1.46 | ||
| 16LCDD004 | 200.2 | 200.8 | 5.27 | ||
| 16LCDD004 | 203.6 | 204.3 | 6.92 | 2.3m @ 3.05 | |
| 16LCDD004 | 220.4 | 221.5 | 1.33 | ||
| 16LCDD004 | 221.5 | 222 | 1.4 | ||
| 16LCDD005 | 125.5 | 126 | 9.79 | 6.7m @ 3.99 | |
| 16LCDD005 | 126 | 127 | 1.04 | ||
| 16LCDD005 | 127 | 127.6 | 0.56 | ||
| 16LCDD005 | 127.6 | 128.4 | 0.2 | ||
| 16LCDD005 | 128.4 | 129 | 6.2 | ||
| 16LCDD005 | 129 | 130 | 5.65 | ||
| 16LCDD005 | 130 | 130.5 | 2.48 | ||
| 16LCDD005 | 130.5 | 131.6 | 5.23 | ||
| 16LCDD005 | 131.6 | 132.2 | 6.54 | ||
| 16LCDD005 | 132.2 | 132.8 | 4.75 | ||
| 16LCDD005 | 136 | 137 | 2.52 | ||
| 16LCDD005 | 139.7 | 141 | 1.49 | 3.9m @ 3.31 | |
| 16LCDD005 | 141 | 141.5 | 0.02 | ||
| 16LCDD005 | 141.5 | 142 | 1.78 | ||
| 16LCDD005 | 142 | 143 | 6.55 | ||
| 16LCDD005 | 143 | 143.6 | 5.86 | ||
| 16LCDD005 | 148 | 148.3 | 1.01 | ||
| 16LCDD005 | 151.8 | 152.8 | 8.99 | ||
| 16LCDD005 | 167.2 | 168.4 | 1.33 | ||
| 16LCDD005 | 172 | 172.8 | 3.24 | 1.6m @ 2.86 | |
| 16LCDD005 | 172.8 | 173.6 | 2.48 | ||
| 16LCDD005 | 183.2 | 184 | 1.39 | ||
| 16LCDD005 | 185 | 185.6 | 1.46 | ||
| 16LCDD007 | 144.5 | 145 | 11.95 | 1.5m @ 7.84 | |
| 16LCDD007 | 145 | 145.5 | 0.01 | ||
| 16LCDD007 | 145.5 | 146 | 3.71 | ||
| 16LCDD007 | 149 | 149.5 | 7.63 | ||
| 16LCDD007 | 151.2 | 151.6 | 1.89 | ||
| 16LCDD007 | 162.7 | 163.2 | 10.2 | 2.3m @ 4.84 | |
| 16LCDD007 | 163.2 | 164 | 4.65 | ||
| 16LCDD007 | 164 | 164.5 | 1.42 | ||
| 16LCDD007 | 164.5 | 165 | 3.22 | ||
| 16LCDD007 | 171.5 | 172.4 | 1.82 |
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| Hole_ID | m From | m To | Au_g/t | Intercept Aug/t | Comments |
|---|---|---|---|---|---|
| 16LCDD007 | 201 | 201.5 | 1.61 | ||
| 16LCDD007 | 206.5 | 207.1 | 5.66 | 1m @ 4.31 | |
| 16LCDD007 | 207.1 | 207.5 | 2.28 | ||
| 16LCDD012 | 63.5 | 64.4 | 2.1 | ||
| 16LCDD012 | 66.6 | 67 | 1.28 | 4.4m @ 2.04 | |
| 16LCDD012 | 67 | 67.5 | 0.51 | ||
| 16LCDD012 | 67.5 | 68 | 3.45 | ||
| 16LCDD012 | 68 | 68.5 | 0.85 | ||
| 16LCDD012 | 68.5 | 69.1 | 1.74 | ||
| 16LCDD012 | 69.1 | 69.3 | 5.89 | ||
| 16LCDD012 | 69.3 | 69.5 | 2.17 | ||
| 16LCDD012 | 69.5 | 69.8 | 2.8 | ||
| 16LCDD012 | 69.8 | 70 | 0.51 | ||
| 16LCDD012 | 70 | 70.5 | 1.51 | ||
| 16LCDD012 | 70.5 | 71 | 3.42 | ||
| 16LCDD012 | 73 | 73.5 | 1.19 | ||
| 16LCDD012 | 74.9 | 75.3 | 1.82 | 0.8m @ 1.53 | |
| 16LCDD012 | 75.3 | 75.8 | 1.29 | ||
| 16LCDD012 | 79.4 | 80 | 2.31 | 1.6m @ 2.14 | |
| 16LCDD012 | 80 | 80.8 | 1.35 | ||
| 16LCDD012 | 80.8 | 81 | 4.82 | ||
| 16LCDD012 | 82.3 | 83 | 1.77 | ||
| 16LCDD012 | 87.7 | 88 | 4.13 | 10.3m @ 3.09 | Includes 0.9m @ 14.5 g/t |
| 16LCDD012 | 88 | 88.5 | 5.31 | ||
| 16LCDD012 | 88.5 | 89.2 | 1.53 | ||
| 16LCDD012 | 89.2 | 90.1 | 14.5 | ||
| 16LCDD012 | 90.1 | 91 | 0.71 | ||
| 16LCDD012 | 91 | 92 | 1.65 | ||
| 16LCDD012 | 92 | 92.5 | 1.13 | ||
| 16LCDD012 | 92.5 | 92.7 | 0.5 | ||
| 16LCDD012 | 92.7 | 93 | 2.09 | ||
| 16LCDD012 | 93 | 93.9 | 1.16 | ||
| 16LCDD012 | 93.9 | 94.25 | 0.13 | ||
| 16LCDD012 | 94.25 | 94.75 | 2.08 | ||
| 16LCDD012 | 94.75 | 95.05 | 0.05 | ||
| 16LCDD012 | 95.05 | 95.1 | Core Loss | ||
| 16LCDD012 | 95.1 | 95.9 | 7.24 | ||
| 16LCDD012 | 95.9 | 96.5 | 1.61 | ||
| 16LCDD012 | 96.5 | 97 | 0.21 | ||
| 16LCDD012 | 97 | 98 | 1.27 | ||
| 16LCDD012 | 101.5 | 102 | 2.77 | ||
| 16LCDD012 | 106.1 | 106.5 | 1.7 | ||
| 16LCDD013 | 49.7 | 50.3 | 0.72 | 12.2m @ 6.12 | Includes 1m @ 15.70 g/t and 0.6m @ 23.2 g/t |
| 16LCDD013 | 50.3 | 50.6 | 1.35 | ||
| 16LCDD013 | 50.6 | 51 | 1.24 | ||
| 16LCDD013 | 51 | 51.6 | 1.04 | ||
| 16LCDD013 | 51.6 | 51.9 | Core Loss | ||
| 16LCDD013 | 51.9 | 52.6 | 2.88 | ||
| 16LCDD013 | 52.6 | 53 | 0.9 | ||
| 16LCDD013 | 53 | 53.5 | 2.5 | ||
| 16LCDD013 | 53.5 | 54 | 16.55 | ||
| 16LCDD013 | 54 | 54.5 | 14.85 | ||
| 16LCDD013 | 54.5 | 54.9 | 23.6 | ||
| 16LCDD013 | 54.9 | 55.2 | 25 | ||
| 16LCDD013 | 55.2 | 55.8 | 23.2 | ||
| 16LCDD013 | 55.8 | 56 | 7.94 | ||
| 16LCDD013 | 56 | 56.5 | 6.39 | ||
| 16LCDD013 | 56.5 | 56.8 | 3.15 | ||
| 16LCDD013 | 56.8 | 57.3 | 1.49 | ||
| 16LCDD013 | 57.3 | 58 | 3.74 | ||
| 16LCDD013 | 58 | 58.5 | 8.87 | ||
| 16LCDD013 | 58.5 | 59 | 5.13 | ||
| 16LCDD013 | 59 | 59.5 | 2.21 | ||
| 16LCDD013 | 59.5 | 60 | 0.7 | ||
| 16LCDD013 | 60 | 60.5 | 3.12 | ||
| 16LCDD013 | 60.5 | 61 | 0.97 | ||
| 16LCDD013 | 61 | 61.5 | 0.61 | ||
| 16LCDD013 | 61.5 | 62 | 0.14 |
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| Hole_ID | m From | m To | Au_g/t | Intercept Aug/t | Comments |
|---|---|---|---|---|---|
| 16LCDD013 | 62 | 62.5 | 5.97 | ||
| 16LCDD013 | 62.5 | 63 | 0.14 | ||
| 16LCDD013 | 63 | 63.5 | 0.15 | ||
| 16LCDD013 | 63.5 | 64 | 0.04 | ||
| 16LCDD013 | 64 | 65 | 0.27 | ||
| 16LCDD013 | 65 | 65.5 | 2.42 | ||
| 16LCDD013 | 69.6 | 70 | 3.28 | 3.4m @ 4.08 | |
| 16LCDD013 | 70 | 70.5 | 2.61 | ||
| 16LCDD013 | 70.5 | 71 | 2.99 | ||
| 16LCDD013 | 71 | 71.5 | 3.45 | ||
| 16LCDD013 | 71.5 | 72 | 2.22 | ||
| 16LCDD013 | 72 | 72.5 | 3.85 | ||
| 16LCDD013 | 72.5 | 73 | 9.99 | ||
| 16LCDD013 | 73 | 73.2 | 0.32 | ||
| 16LCDD013 | 73.2 | 74 | 0.05 | ||
| 16LCDD013 | 74 | 75 | 0.09 | ||
| 16LCDD013 | 75 | 75.35 | 0.04 | ||
| 16LCDD013 | 75.35 | 76 | 0.05 | ||
| 16LCDD013 | 76 | 76.7 | 0.22 | ||
| 16LCDD013 | 76.7 | 77.1 | 4.23 | 5.2m @ 2.78 | |
| 16LCDD013 | 77.1 | 77.5 | 1.71 | ||
| 16LCDD013 | 77.5 | 78 | 1.63 | ||
| 16LCDD013 | 78 | 78.3 | 1.2 | ||
| 16LCDD013 | 78.3 | 78.6 | 4.02 | ||
| 16LCDD013 | 78.6 | 79 | 1.97 | ||
| 16LCDD013 | 79 | 79.5 | 5.54 | ||
| 16LCDD013 | 79.5 | 80 | 0.49 | ||
| 16LCDD013 | 80 | 81 | 2.33 | ||
| 16LCDD013 | 81 | 81.2 | 0.34 | ||
| 16LCDD013 | 81.2 | 81.9 | 5.03 | ||
| 16LCDD013 | 81.9 | 82.1 | 0.03 | ||
| 16LCDD013 | 82.1 | 82.5 | 0.09 | ||
| 16LCDD013 | 82.5 | 83 | 0.07 | ||
| 16LCDD013 | 83 | 83.4 | 0.04 | ||
| 16LCDD013 | 83.4 | 84 | 0.05 | ||
| 16LCDD013 | 84 | 84.4 | 0.05 | ||
| 16LCDD013 | 84.4 | 85 | 7.43 | ||
| 16LCDD015 | 45.5 | 46 | 2.31 | ||
| 16LCDD015 | 54.1 | 54.7 | 5.74 | 1m @ 5.68 | |
| 16LCDD015 | 54.7 | 55.1 | 5.57 | ||
| 16LCDD015 | 58.3 | 58.7 | 3.01 | ||
| 16LCDD015 | 62.9 | 63.3 | 2.06 | ||
| 16LCDD015 | 65 | 65.5 | 2.63 | 4m @ 6.01 | |
| 16LCDD015 | 65.5 | 66 | 2.36 | ||
| 16LCDD015 | 66 | 66.5 | 1.73 | ||
| 16LCDD015 | 66.5 | 67.3 | 1.57 | ||
| 16LCDD015 | 67.3 | 67.7 | 26.8 | ||
| 16LCDD015 | 67.7 | 68 | 9.37 | ||
| 16LCDD015 | 68 | 68.5 | 10.6 | ||
| 16LCDD015 | 68.5 | 68.75 | 1.41 | ||
| 16LCDD015 | 68.75 | 69 | 1.81 | ||
| 16LCDD017 | 18.7 | 19.5 | 1.45 | ||
| 16LCDD017 | 49.2 | 49.8 | 1.02 | ||
| 16LCDD017 | 56.1 | 57 | 2.23 | ||
| Notes: 1. Intervals are downhole lengths, not true widths. 2. Parameters: 1g/t Au lower cut-off, discretionary internal waste included 3. No top cuts applied 4. Location data for the drill holes is provided in Appendix 2 |
Disclosure – Table 1 is a summary of all the significant diamond drilling results to date. The JORC 2012 compliance table for the reporting of exploration results (section 1 and section 2) is provided in Appendix 1.
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Figure 3: Fortitude Drill Hole Section 6757108m North (new drill results in red)
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Figure 4: Fortitude Drill Hole Section 6757208m North (new drill results in red)
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Matsa Resources Limited
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Figure 5: Fortitude Drill Hole layout
For further information please contact:
Paul Poli Executive Chairman Phone +61 8 9230 3555 Fax +61 8 9227 0370 Email [email protected] Web www.matsa.com.au
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Competent Person
The information in this report that relates to Exploration results, is based on information compiled by Richard Breyley, who is a Member of the Australasian Institute of Mining and Metallurgy. Richard Breyley is a full time employee of Matsa Resources Limited. Richard Breyley has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and 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’. Richard Breyley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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Appendix 1 - Matsa Resources Limited – Lake Carey Gold Project
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | JORC Code explanation Commentary |
|---|---|
| Sampling techniques |
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Matsa diamond sampling at Fortitude was carried out according to an industry standard procedure whereby the core was cut in half or quarters using an Almonte core saw. The core was sampled to logged geological boundaries with half core in oxide rock and quarter core in competent rock being submitted to the laboratory. Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘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 (eg submarine nodules) may warrant disclosure of detailed information. |
| Drilling techniques |
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Diamond drilling was carried out by Frontline Drilling using triple tube techniques and an HQ3 bit size. |
| Drill sample recovery |
Method of recording and assessing core and chip sample recoveries and results assessed. Sample recovery was calculated by measuring the core recovered against the run length. |
| Measures taken to maximise sample recovery and ensure representative nature of the samples. Drilling was by triple tube techniques. |
|
| 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. No evidence of excessive sample loss through mineralised zone. |
|
| Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Diamond core and RC chips are typically visually logged for lithology, regolith type, and alteration/mineralisation. Typically semi-quantitative logging is carried out using in-house logging codes and percentages. |
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| Criteria | JORC Code explanation Commentary |
|---|---|
| Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. The entire drill hole is logged. |
|
| Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken. Core was sawn in competent rock and split in less competent ground. Quarter core was sampled in competent rock with half core taken in less competent ground. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. The samples were dried, crushed and pulverized prior to analyses. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling Whether sample sizes are appropriate to the grain size of the material being sampled. |
| Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. All assays are carried out by fire assay techniques at ALS global in Kalgoorlie for gold only. |
| 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 procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. QAQC procedures adopted by Matsa include the insertion of one blank and one standard in the logged ore zones every 20 samples. 10% of samples are re-assayed at a umpire laboratory. No bias has been determined. |
|
| Verification of sampling and assaying |
The verification of significant intersections by either independent or alternative company personnel. Significant intersections have been independently verified by company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Geological logging was completed into Logchief software using company codes. Hard copy cut sheets are prepared for the samplers. Discuss any adjustment to assay data. |
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| Criteria | JORC Code explanation | JORC Code explanation | Commentary |
|---|---|---|---|
| Location of data | | Accuracy and quality of surveys used to locate drill holes (collar and down-hole | Holes are surveyed using a DGPS to an accuracy of +/-10cm. |
| points | surveys), trenches, mine workings and other locations used in Mineral Resource | ||
| estimation. | |||
| | Specification of the grid system used. | MGA94-Zone 51. | |
| | Quality and adequacy of topographic control. | ||
| Data spacing | | Data spacing for reporting of Exploration Results. | Drills holes are drilled at a nominal 25m by 25m grid. |
| and distribution | |||
| | Whether the data spacing and distribution is sufficient to establish the degree of | Not applicable. | |
| geological and grade continuity appropriate for the Mineral Resource and Ore | |||
| Reserve estimation procedure(s) and classifications applied. | |||
| | Whether sample compositing has been applied. | ||
| Orientation of | | Whether the orientation of sampling achieves unbiased sampling of possible | Drill holes are planned to intersect the mineralizing structures at a high angle. |
| data in relation | structures and the extent to which this is known, considering the deposit type. | ||
| to geological | |||
| structure | |||
| | If the relationship between the drilling orientation and the orientation of key | No bias has been recognised. | |
| 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 sample security. | Core and samples are in the position of Matsa personnel and are hand delivered to the |
| laboratoryfor analyses. | |||
| Audits or reviews | |
The results of any audits or reviews of sampling techniques and data. | No audits carried out. |
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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 | |
|---|---|---|---|
| Mineral | Type, reference name/number, location and ownership including | All drilling is carried out on granted mining tenements in the state of Western | |
| tenement and | agreements or material issues with third parties such as joint ventures, | Australia. The tenements are wholly owned by Matsa Gold Pty Ltd, a wholly | |
| land tenure | partnerships, overriding royalties, native title interests, historical sites, | owned subsidiary of Matsa Resources Ltd. | |
| status | wilderness or national park and environmental settings. | ||
| The security of the tenure held at the time of reporting along with any | |||
| known impediments to obtaining a license to operate in the area. | |||
| Exploration done | Acknowledgment and appraisal of exploration by other parties. | Previous drilling was carried out by Aurora and Midas Resources. | |
| by other parties | |||
| Geology | Deposit type, geological setting and style of mineralisation. | Structurally controlled orogenic quartz vein hosted gold mineralisation. | |
| Drill hole | A summary of all information material to the understanding of the | Summarised in a table in the body of the text. | |
| Information | 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 | |||
o dip and azimuth of the hole |
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o down hole length and interception depth |
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o hole 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. | |||
| Data | In reporting Exploration Results, weighting averaging techniques, | Intersections are reported above 1ppm Au. Now top cuts have been used. | |
| aggregation | maximum and/or minimum grade truncations (eg cutting of high grades) | Where short lengths of very high grade material are included in has been | |
| methods | and cut-off grades are usually material and should be stated. | reported in Table 1. Internal waste has been included on a discretional basis. | |
| Where aggregate intercepts incorporate short lengths of high grade | Zones of core loss were assigned a nominal grade of 0.00ppm Au. | ||
| results and longer lengths of low grade results, the procedure used for | |||
| such aggregation should be stated and some typical examples of such | |||
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| aggregations should be shown in detail. | ||
| The assumptions used for any reporting of metal equivalent values should | ||
| be clearly stated. | ||
| Relationship | These relationships are particularly important in the reporting of | All drill hole intercepts measured in down hole metres. |
| between | Exploration Results. | |
| mineralisation | If the geometry of the mineralisation with respect to the drill hole angle is | |
| widths and | known, its nature should be reported. | |
| intercept lengths | If it is not known and only the down hole lengths are reported, there | |
| should be a clear statement to this effect (eg ‘down hole length, true | ||
| _width not known’). _ | ||
| Diagrams | Appropriate maps and sections (with scales) and tabulations of intercepts | Suitable maps and section are included in the body of the report. |
| 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 Exploration Results is not | All significant results >1ppm Au have been reported. |
| reporting | practicable, representative reporting of both low and high grades and/or | |
| widths should be practiced to avoid misleading reporting of Exploration | ||
| Results. | ||
| Other | Other exploration data, if meaningful and material, should be reported | |
| substantive | including (but not limited to): geological observations; geophysical survey | |
| exploration data | results; geochemical survey results; bulk samples – size and method of | |
| treatment; metallurgical test results; bulk density, groundwater, | ||
| geotechnical and rock characteristics; potential deleterious or |
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| contaminating substances. | ||
| Further work | The nature and scale of planned further work (eg tests for lateral | |
| extensions or depth extensions or large-scale step-out 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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Appendix 2 – Drill Hole Location
| Hole_ID | Type | **MGA East ** | MGA North | RL | **Depth ** | **Azimuth ** | Dip |
|---|---|---|---|---|---|---|---|
| 16LCDD001 | DD | 457014 | 6757033 | 400.5 | 130 | 90 | -60 |
| 16LCDD002 | DD | 457000 | 6757058 | 400.5 | 150.8 | 90 | -60 |
| 16LCDD003 | DD | 457001 | 6757083 | 400.5 | 160.8 | 90 | -60 |
| 16LCDD004 | DD | 456990 | 6757108 | 401 | 240.6 | 90 | -60 |
| 16LCDD005 | DD | 456968 | 6757133 | 402 | 211 | 90 | -60 |
| 16LCDD006 | DD | 457226 | 6756683 | 400.4 | 30 | 90 | -90 |
| 16LCDD007 | DD | 456949 | 6757183 | 403.5 | 210.8 | 90 | -60 |
| 16LCDD008 | DD | 457223 | 6756758 | 400 | 87.8 | 90 | -90 |
| 16LCDD009 | DD | 457072 | 6756958 | 401.6 | 30 | 90 | -90 |
| 16LCDD010 | DD | 457076 | 6756983 | 401.5 | 35.4 | 90 | -90 |
| 16LCDD011 | DD | 457067 | 6757009 | 401.4 | 65 | 90 | -90 |
| 16LCDD012 | DD | 457004 | 6757158 | 402 | 140 | 90 | -60 |
| 16LCDD013 | DD | 457006 | 6757211 | 399 | 100 | 90 | -60 |
| 16LCDD014 | DD | 457388 | 6756608 | 400 | 35 | 270 | -60 |
| 16LCDD015 | DD | 456998 | 6757283 | 399 | 85 | 90 | -60 |
| 16LCDD016 | DD | 457048 | 6757083 | 399 | 100 | 90 | -60 |
| 16LCDD017 | DD | 457423 | 6756608 | 399 | 70 | 270 | -60 |
| GT001 | DD | 456963 | 6757083 | 399 | 70 | 240 | -55 |
| GT002 | DD | 456983 | 6756993 | 399 | 125.7 | 50 | -55 |
| GT003 | DD | 457088 | 6757183 | 399 | 105 | 60 | -60 |
| GT004 | DD | 457038 | 6757233 | 399 | 110 | 35 | -50 |
| TOTAL | 2292.9 |
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