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MATSA RESOURCES LIMITED — Capital/Financing Update 2020
Nov 8, 2020
65296_rns_2020-11-08_26cad666-740a-45de-9176-5c4a8768612b.pdf
Capital/Financing Update
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Matsa Resources Limited
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ASX Announcement
9[th] November 2020
Further Outstanding High-Grade Results at Red October
Highlights
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Results received from a futher 14 Diamond Drill (DD) holes at Red October return excellent high-grade results
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Significant intersection include:
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Lionfish:
ROGC751: 0.28m @ 161.50 g/t Au
- Marlin 410:
ROGC757: 1.30m @ 8.14g/t Au ROGC758: 1.70m @ 51.68g/t Au
- Dory and Smurfette 320:
ROGC735: 0.81m @ 22.00g/t Au ROGC738: 7.00m @ 5.24g/t Au ROGC738: 4.04m @ 4.62g/t Au
CORPORATE SUMMARY
Executive Chairman
Paul Poli
Director
Frank Sibbel
Director & Company Secretary
Andrew Chapman
Shares on Issue
271.14 million
Unlisted Options
25.6 million @ $0.17 - $0.35
Top 20 shareholders
Hold 55.6%
- MH Fault:
ROGC741: 3.80m @ 30.98g/t Au ROGC742: 1.60m @ 5.94g/t Au (Previously unidentified lode)
- Results demonstrate strong potential for adding new ounces into the mine plan
Share Price on 6[th] November 2020
13.5 cents
Market Capitalisation
$36.60 million
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First phase of underground drilling at Red October now completed ahead of schedule with further assays still pending
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Phase 1 program designed to test continuity of lodes and high-grade shoots below previously mined areas, infill the existing resources and provide grade control for existing production
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The next phase of drilling is expected to resume in December/January
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Matsa Resources Limited
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Matsa Resources Limited (“Matsa” or “the Company”) ( ASX: MAT ) is pleased to provide an update on the underground drilling program currently progressing at Red October gold mine. Further to the previously released positive results including, 0.70m @ 137.50 g/t Au, 2.00m @ 16.14 g/t Au and 2.00m @ 28.97g/t Au[1] , these new results confirm the potential to add new ounces to the mine plan.
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Figure 1: Red October Location Map - Lake Carey Project Area
1 ASX Announcement - Excellent Early Drill Assay Results Red October Gold Project https://www.matsa.com.au/wp-content/uploads/2020/10/Red-October-Drilling-Results-061020_FINAL.pdf
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Matsa Resources Limited
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Figure 2: Aerial view of the Red October operation and mining tenements
The Phase 1 drilling program at Red October is designed to provide grade control near the current production area, and infill the existing resources to define and de-risk potential future mining areas.
Results received to date provide encouraging insights into the potential for Lionfish, Marlin 410 and Dory targets (refer to Figure 3 below) to add meaningful ounces to the mine plan in the near term, with all of the targets close to existing workings.
The MH Fault target area requires geological review of structural data to determine it’s continuity along strike and dip.
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487 Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Figure 3: Long Section Looking West - Drilling Target Areas
Lionfish Phase 1
The Lionfish Phase 1 program has been designed to test the continuity of lodes and high-grade shoots below the previously mined N-1255 level, with a view to completing the infill and defining mineable ounces.
High grades evident within the main Lionfish lodes (HW 357 and HW 356) and a subsidiary structure (Splay 555) down-plunge of the N-1255 level have been tested with four drillholes (ROGC747 to ROGC750 inclusive). A possible grade shoot north of the existing N-1255 level workings was also tested with one drillhole (ROGC751).
Drilling assay results received to date confirm the presence of the Lionfish lodes and discrete, highgrade shoots within them.
Significant intercepts from Lionfish Phase 1 include:
- ROGC751: 0.28m @ 161.50g/t Au from 37.50m (HW 356)
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487 Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Figure 4: Plan view of Lionfish Phase 1 drillholes
Results received provide further confidence on the potential for Lionfish to add additional ounces to the current mine plan building upon previously reported results[2] , including:
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ROGC747: 0.70m @ 137.50g/t Au from 29.50m (HW 357), and 0.90m @ 11.25g/t Au from 79.56m
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ROGC749 : 1.59m @ 5.04g/t Au from 24.65m (HW 357), and 2.00m @ 16.14g/t Au from 56.00m (Splay 555)
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ROGC750: 3.00m @ 3.50g/t Au from 63.40m (HW 356)
On the strength of the intercept in drillhole ROGC751, further drillholes have since been completed in this area with assays pending. If there is continuity of structures and grade shoots, this area is immediately accessible for mining.
A decision on infilling the remainder of Lionfish Phase 1 shall be made prior to the drill rig returning to site in December/January.
2 ASX Announcement - Excellent Early Drill Assay Results Red October Gold Project https://www.matsa.com.au/wp-content/uploads/2020/10/Red-October-Drilling-Results-061020_FINAL.pdf
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Figure 5: Oblique view – Lionfish HW 356 lode results vs. Saracen 2016 Resource Model
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Figure 6: Oblique view – Lionfish HW 357 lode results vs. Saracen 2016 Resource Model
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Figure 7: Lionfish HW 357 - visible gold in drillhole ROGC751 (0.28m @ 161.50g/t Au from 37.5m)
Marlin 410
The Marlin 410 program aims to infill two potential mining levels below the previously mined S-842 level. This area presents a compelling mining opportunity and is easily accessible by continuing the South Decline downwards, with all mining infrastructure in place. Ten drillholes have been completed for this purpose, with five drillholes still pending assays.
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Figure 8: Plan view of Marlin 410 drillholes
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Matsa Resources Limited
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Drillholes ROGC757 and ROGC758 have returned very high-grades intersected at the expected lode position:
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ROGC757: 1.30m @ 8.14g/t Au from 99.50m (Marlin 410), incl. 0.40m @ 23.30g/t Au from 100.40m (Marlin 410)
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ROGC758: 1.70m @ 51.68g/t Au from 97.00m (Marlin 410), incl. 1.00m @ 58.10g/t Au from 97.00m (Marlin 410)
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Figure 9: Oblique view – Marlin 410 lode results to date vs. Saracen 2016 Resource Model
Dory (HW 353) and Smurfette 320
The Dory and Smurfette program were designed to infill a developed area for stope design and production.
The Dory lode is a narrow structure, containing poddy (elongated, lens shaped) very high grade gold shoots within it. The Smurfette 320 lode sits adjacent to the Dory lode and also presents an opportunity for future production. It is generally broader in width, with moderate gold grades.
Drillhole ROGC738 passed through the Smurfette 320 at the collar position, and again further down the drill trace. Results include:
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ROGC735: 0.81m @ 22.00g/t Au from 34.00m (Dory HW353)
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ROGC738: 7.00m @ 5.24g/t Au from 0.00m (Smurfette 320), and 4.04m @ 4.62g/t Au from 25.96m – Smurfette 320
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Figure 10: Plan view of Dory & Smurfette drillholes
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Figure 11: Oblique view – Dory and Smurfette lode results to date vs. 2017 Grade Control Model
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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MH Fault
Initially, this area was being tested for other lodes (Splay 533), however high grade intercepts were recorded on the modelled MH Fault position and also on an unknown lode.
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Figure 12: Plan view of MH Fault drillholes
Further assays are pending, and analysis of recent logging data is required to determine the MH Fault’s geometry and potential for continuity of both structure and grade.
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ROGC741: 3.80m @ 30.98g/t Au from 97.20m (MH Fault), incl. 1.00m @ 102.50g/t Au from 99.00m (MH Fault)
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ROGC742: 1.60m @ 5.94g/t Au from 72.00m (Previously unidentified lode)
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Matsa Resources Limited
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Red October Mine Geology Background
The Red October deposit is hosted within a lithology package that dips steeply to the northwest that is interpreted to be the northern limb of a district scale NE-trending antiform. The deposit is centred on a shale unit that separates a footwall of tholeiitic pillowed basalts and a hanging wall succession of talc-carbonate to serpentinised ultramafic and high-Mg basalt with sparse interflow sediments. Near the top of the ultramafic-high Mg basalt sequence are thinly bedded iron-rich chert sedimentary units with variable sulphide content.
The ore system throughout Red October gold mine is structurally-hosted, with mineralised moderate-steeply dipping structures present in three main orientations (in RO Local grid); north striking, north-east striking, north-west striking.
Mineralisation occurs as shear-hosted lodes or shear vein/breccia style lodes, with both styles quite visible in contrast to the host rock. Mineralisation is associated with moderate-strong wall-rock hydrothermal alteration assemblages and sulphides, with biotite, muscovite, sericite, quartzcarbonate-calcite and pyrite commonly observed. Rheology contrasts, structural junctions and dilational zones have provided fluid pathways and opportunities for deposition of gold-bearing sulphides and coarse gold.
Further updates will be provided as more information comes to hand as the drilling program continues and assay results are returned.
This ASX announcement is authorised for release by the Board of Matsa Resources Limited.
For further information please contact:
Paul Poli Executive Chairman T 08 9230 3555 E [email protected]
Competent Person
The exploration information in this report is based on information compiled by Rhianna Farrell, who is a Member of the Australasian Institute of Geoscientists (AIG). Rhianna Farrell is a full-time employee of Matsa Resources Limited. Rhianna Farrell has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Rhianna Farrell consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487
Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Matsa Resources Limited
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Appendix 1
Table 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
| Criteria | JORC Code explanation | Commentary | |
|---|---|---|---|
| Sampling | Nature and quality of sampling (eg cut channels, | Sampling activities conducted at Red October by Saracen included reverse circulation (RC), |
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| techniques | random chips, or specific specialised industry | surface and underground diamond drilling (DD) and underground face chip sampling. Historic |
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| standard measurement tools appropriate to the | sampling methods conducted since 1989 have included aircore (AC), rotary air blast (RAB), RC |
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| minerals under investigation, such as down hole | and surface and underground DD holes. |
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| gamma sondes, or handheld XRF instruments, | Sampling for RC, DD and face chip sampling is carried out as specified within Saracen sampling |
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| etc). These examples should not be taken as | and QAQC procedures as per industry standard. RC chips and NQ diamond core provide high |
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| limiting the broad meaning of sampling. | quality representative samples for analysis. RC, RAB, AC and surface DD drilling completed by | ||
| Include reference to measures taken to ensure | previous holders is assumed to adhere to industry standard at that time 1989- 2004. |
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| sample representivity and the appropriate |
Saracen sampling activities were carried out to industry standard. Reverse circulation drilling is |
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| calibration of any measurement tools or systems | used to obtain 1 m samples, diamond core is sampled to geological intervals (0.2m to 1.2m) |
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| used. | and cut into half core and UG faces are chip sampled to geological intervals (0.2 to 1m), with | ||
| Aspects of the determination of mineralisation | all methods producing representative samples weighing less than 3kg. Samples are selected to |
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| that are Material to the Public Report. | weigh less than 3 kg to ensure total sample inclusion at the pulverisation stage. Saracen core | ||
| In cases where ‘industry standard’ work has been | and chip samples were crushed, dried and pulverised to a nominal 90o/o passing 75μm to |
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| done this would be relatively simple (eg ‘reverse | produce a 40 g sub sample for analysis by FA/AAS. Visible gold is occasionally encountered in |
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| circulation drilling was used to obtain 1 m samples | drill core and face samples. Historical AC, RAB, RC and diamond sampling are assumed to have |
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| from which 3 kg was pulverised to produce a 30 g | been carried out to industry standard at that time. Analysis methods include fire assay, aqua |
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| charge for fire assay’). In other cases more | regia and unspecified methods. |
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| explanation may be required, such as where there | Matsa sampling activities for diamond core; a mixture of whole-core and half-core sampling. |
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| is coarse gold that has inherent sampling | Core cut in half and sampled to geological intervals (0.2 – 1.3m) resulted in most samples |
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| problems. Unusual commodities or mineralisation | weighing =<3 kg. Core that was whole-core sampled and weighed >3kg was crushed and split |
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| types (eg submarine nodules) may warrant | at the laboratory. Samples were crushed, dried and pulverised to a nominal 85% passing 75μm |
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| disclosure of detailed information. | to produce a 50g sub sample for analysis by FA/AAS. FA results >100g/t trigger a Gravimetric | ||
| Finish to achieve an accurate result. Visible gold samples’ pulp residue are later assayed again | |||
| via Leachwell Bottle Roll. Standard QAQC practices are utilised to detect sample preparation | |||
| errors and grade smearing (blanks and quartz flushes). All historical methods are as described | |||
| above. | |||
| Drilling | Drill type (eg core, reverse circulation, open-hole | The deposit was initially sampled by 495 AC holes, 73 RAB holes, 391 RC holes (assumed |
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| hammer, rotary air blast, auger, Bangka, sonic, | standard 5 %" bit size)and 159 surface diamond NQand HQcore holes. 5 RC holes were | ||
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| Criteria | JORC Code explanation | Commentary | |
|---|---|---|---|
| techniques | etc) and details (eg core diameter, triple or | drilled using a 143mm diameter bit with a face sampling hammer. The rig was equipped with | |
| standard tube, depth of diamond tails, face- | an external auxiliary/ booster. Saracen has previously completed 6 reverse circulation drill | ||
| sampling bit or other type, whether core is | holes, 9 surface HQ and NQ diamond drill holes, 839 underground NQ diamond drill holes and | ||
| oriented and if so, by what method, etc). | sampled 2931 underground faces. Diamond drill core has been oriented using several | ||
| different methods which include Ezi-Mark, ACT, Ori-Finder, and more recently Reflex ACTII | |||
| and Reflex ACTIII . Some historic surface diamond drill core appears to have been oriented by | |||
| unknown methods. | |||
| Drill sample | Method of recording and assessing core and chip | RC chip recoveries are recorded in the database as a percentage based on a visual weight | |
| recovery | sample recoveries and results assessed. | estimate. Underground and surface diamond core recoveries are recorded as percentages | |
| Measures taken to maximise sample recovery and | calculated from measured core versus drilled metres, and intervals are logged and recorded in | ||
| ensure representative nature of the samples. | the database. Diamond core recoveries average >90%. Limited historic surface sampling and | ||
| Whether a relationship exists between sample | surface diamond recoveries have been recorded. | ||
| recovery and grade and whether sample bias may | During RC drilling daily rig inspections are carried out to check splitter condition, general site | ||
| have occurred due to preferential loss/gain of | and address general issues. Ground condition concerns led to extensive hole conditioning | ||
| fine/coarse material. | meaning contamination was minimised and particular attention was paid to sample recovery. | ||
| Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation | |||
| marking. Depths are checked against depth given on the core blocks. UG faces are sampled | |||
| left to right across the face allowing a representative sample to be taken due to the vertical | |||
| nature of the orebody. Historical AC, RAB, RC and diamond drilling to industry standard at that | |||
| time. | |||
| There is no known relationship between sample recovery and grade for RC drilling. Diamond | |||
| drilling has high recoveries due to the competent nature of the ground meaning loss of | |||
| material is minimal. Anyhistorical relationshipis not known. | |||
| Logging | Whether core and chip samples have been | Logging of all RC chips and diamond drill core is carried out. Logging records lithology, | |
| geologically and geotechnically logged to a level | mineralogy, texture, mineralisation, weathering, alteration and veining. | ||
| of detail to support appropriate Mineral Resource | Logging is both qualitative and quantitative in nature. Geotechnical and structural logging is | ||
| estimation, mining studies and metallurgical | carried out on resource definition and exploration diamond core holes to record recovery, | ||
| studies. | RQD, defect number, type, fill material, shape and roughness and alpha and beta angles. Core | ||
| Whether logging is qualitative or quantitative in | is photographed in both dry and wet state. All faces are photographed and mapped. | ||
| nature. Core (or costean, channel, etc) |
Qualitative and quantitative logging of historic data varies in its completeness. Some surface | ||
| photography. | diamond drill photography has been preserved. | ||
| The total length and percentage of the relevant | All RC and diamond drill holes are logged and all faces are mapped. Historical logging is | ||
| intersections logged. | approximately95% complete,some AC,RAB and RCpre-collar information is unavailable. | ||
| Sub-sampling | If core, whether cut or sawn and whetherquarter, | Resource definition and exploration diamond core is cut in half on-site usingan automatic | |
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| Criteria | JORC Code explanation | Commentary | |
|---|---|---|---|
| techniques | half or all core taken. | core saw. Samples are always collected from the same side. Grade control core is either | |
| and sample | If non-core, whether riffled, tube sampled, rotary | whole core sampled or cut in half on-site using an automatic core saw. |
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| preparation | split, etc and whether sampled wet or dry. | RC drilling has been cone split and was dry sampled. UG faces are chip sampled using a | |
| For all sample types, the nature, quality and | hammer. AC, RAB and RC drilling has been sampled using spear, grab, riffle and unknown |
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| appropriateness of the sample preparation |
methods. |
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| technique. | The sample preparation of RC chips, diamond core and UG face chips adhere to industry best | ||
| Quality control procedures adopted for all sub- | practice. It is conducted by a commercial laboratory and involves oven drying, coarse crushing | ||
| sampling stages to maximise representivity of | then total grinding using an LM5 to a grind size of 85% passing 75 microns. Best practice is |
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| samples. | assumed at the time of historic sampling. | ||
| Measures taken to ensure that the sampling is | All subsampling activities are carried out by commercial laboratory and are considered to be |
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| representative of the in situ material collected, | satisfactory. Sampling by previous holders is assumed to adhere to industry standard at the |
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| including for instance results for field |
time. |
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| duplicate/second-half sampling. | RC field duplicate samples are carried out at a rate of 1:20 and are sampled directly from the | ||
| Whether sample sizes are appropriate to the grain | on-board splitter on the rig. These are submitted for the same assay process as the original |
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| size of the material being sampled. | samples and the laboratory are unaware of such submissions. No duplicates have been taken | ||
| of UG diamond core; face samples are duplicated on ore structures. Sampling by previous | |||
| holders assumed to be industry standard at the time. | |||
| Sample sizes of 3kg are considered to be appropriate given the grain size (85% passing 75 | |||
| microns)of size of the material of the material sampled. | |||
| Quality of | The nature, quality and appropriateness of the | A 50 gram fire assay with AA finish is used to determine the gold concentration for UG |
|
| assay data and | assaying and laboratory procedures used and |
diamond core and face chip samples and a gravimetric finish for assays >100g/t. For samples |
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| laboratory | whether the technique is considered partial or | with visible gold, Screen Fire Assay or Leachwell Bottle Roll may be used to gain a more |
|
| tests | total. | accurate and precise assay. These methods are considered the most suitable for determining | |
| For geophysical tools, spectrometers, handheld | gold concentrations in rock and are total digest methods. Historic sampling includes fire assay, |
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| XRF instruments, etc, the parameters used in | aqua regia and unknown methods. |
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| determining the analysis including instrument | No geophysical tools were utilised for reporting gold mineralisation. |
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| make and model, reading times, calibrations | Certified reference material (standards and blanks) with a wide range of values are inserted |
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| factors applied and their derivation, etc. | into every RC, diamond drill hole (1 in 30) and UG face jobs to assess laboratory accuracy and | ||
| Nature of quality control procedures adopted (eg | precision and possible contamination. These are not identifiable to the laboratory. Blanks are |
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| standards, blanks, duplicates, external laboratory | also included at a rate of 1 in 30 for diamond drill core and one per lab dispatch for face |
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| checks) and whether acceptable levels of accuracy | samples. Quartz flush samples are requested after each sample with visible gold, or estimated |
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| (ie lack of bias) and precision have been | high grade. QAQC data returned are checked against pass/fail limits and are passed or failed |
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| established. | on import. A report is generated and reviewed by the geologist as necessary upon failure to | ||
| determine further action.QAQC data is reportedper campaign and demonstrates sufficient | |||
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| Criteria JORC Code explanation |
Commentary |
|---|---|
| levels of accuracy and precision. Sample preparation checks for fineness are carried out to ensure a grind size of 85o/o passing 75 microns. The laboratory performs a number of internal processes including standards, blanks, repeats and checks. Industry best practice is assumed forprevious holders. HistoricQAQC data is stored in the database but not reviewed. |
|
| Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. |
Significant intercepts are verified by the Geology Manager and corporate personnel. No specific twinned holes have been drilled at Red October but underground diamond drilling has confirmed the width and grade of previous exploration drilling. Primary data is collated in a set of excel templates. This data is forwarded to the Database Administrator for entry into a secure SQL database with inbuilt validation functions. Chips from RC drill holes are stored in chip trays for future reference. Remaining half core is stored in core trays and archived on site. Hard copies of face mapping, backs mapping and sampling records are kept on site. Digital scans are also kept on the corporate server. Data from previous owners was taken from a database compilation and was validated as much as practicable before entry into the Matsa database. No adjustments have been made to assay data. First gold assay has been utilised by Saracen for resource estimation. Re-assays carried out due to failed QAQC will replace original results, though both are stored in the database. |
| Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. |
All drill hole collars are picked up by certified surveyors using a Leica Theodolite with an expected accuracy of +/~2mm. A DHS DeviGyro OX Kit was used for rig setups in addition to surveyed collar positions. Underground faces are located using a Leica Disto with an accuracy of+/-1mm from a known survey point. Surveys are carried out downhole during diamond drilling using a DHS DeviGyro OX Kit. Previous holders' survey accuracy and quality is generally unknown. Saracen’s surface exploration campaigns involved RC holes being gyroscopically downhole surveyed by ABIMS where possible once drilling was completed. A local grid system (Red October) is used. It is rotated 44.19 degrees east of MGA_GDA94.The two-point conversion to MGA_GDA94 zone 51 is: ROEast RONorth RL MGAEast MGANorth RL Point 1 5890.71 10826.86 0 444223.25 6767834.66 0 Point2 3969.83 9946.71 0 442233.31 6768542.17 0 Historic data is converted to Red October local grid on export from the database DGPS survey has been used to establish topographic surface |
| Data spacing and Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is |
The nominal spacing for the reported results are not uniform and therefore a definitive drill spacingwill not bequoted. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| distribution | sufficient to establish the degree of geological and | Not all data reported meets the required continuity measures to be considered for inclusion in |
| grade continuity appropriate for the Mineral | a resource estimate. Holes reported inside or within 40m of the resource will be incorporated |
|
| Resource and Ore Reserve estimation procedure(s) | into the resource model, or if sufficient density of data confirms continuity, it will be |
|
| and classifications applied. | considered for inclusion in the resource. | |
| Whether sample compositing has been applied. | RC drill holes are sampled to 1 m intervals and underground core and faces are sampled to | |
| geological intervals; compositing is not applied until the estimation stage. Some historic RAB | ||
| and RC sampling was composited into 3-4m samples with areas of interest resampled to 1 m | ||
| intervals. It is unknown at what threshold this occurred. | ||
| Orientation of | Whether the orientation of sampling achieves | RC drilling was carried out at the most appropriate angle possible. The mineralisation is |
| data in | unbiased sampling of possible structures and the | intersected at closely as possible to perpendicular. The steeply dipping nature of the |
| relation to | extent to which this is known, considering the | mineralisation means that most holes pass through mineralisation at lower angles than ideal. |
| geological | deposit type. | Production reconciliation and underground observations indicate that there is limited |
| structure | If the relationship between the drilling orientation | sampling bias. Underground diamond drilling is designed to intersect the orebody in the best |
| and the orientation of key mineralised structures is | possible orientation given the constraints of underground drill locations. UG faces are sampled |
|
| considered to have introduced a sampling bias, | left to right across the face allowing a representative sample to be taken due to the vertical |
|
| this should be assessed and reported if material. | nature of the orebody. | |
| No significant sampling bias has been recognised due to orientation of drilling in regards to | ||
| mineralised structures. | ||
| Sample | The measures taken to ensure sample security. | Samples are prepared on site under supervision of company geological staff. Samples are |
| security | selected, bagged into tied numbered calico bags then grouped into larger secured bags and | |
| delivered to the laboratorybyMatsapersonnel. | ||
| Audits or | The results of any audits or reviews of sampling | An internal review of sampling methodologies was conducted to create the current sampling |
| reviews | techniques and data. | and QAQC procedures. No external audits or reviews have been conducted. |
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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 | Red October is wholly located within Mining Lease M39/412. Mining Lease M39/412 has a |
|
| tenement and | ownership including agreements or material issues | 21 year life (held until 2019) and is renewable for a further 21 years on a continuing basis. |
|
| land tenure | with third parties such as joint ventures, | There is one Registered Native Title Claim over M39/412 for the Kurrku group (WC10/18), |
|
| status | partnerships, overriding royalties, native title | lodged December 2010. Mining Lease M39/412 was granted prior to registration of the |
|
| interests, historical sites, wilderness or national | Claim and is not affected by the Claim. Aboriginal Heritage sites within the tenement (Site |
||
| park and environmental settings. | Numbers WO 2442, 2447, 2448, 2451, 2452 and 2457) are not affected by current mining | ||
| The security of the tenure held at the time of | practices. Third party royalties are payable on the tenement. A Royalty is payable under |
||
| reporting along with any known impediments to | Royalty Deed M39/411, 412, 413 based on a percentage of deemed revenue (minus |
||
| obtaining a licence to operate in the area. | allowable costs) on gold produced in excess of 160,000 ounces. A Royalty is payable based | ||
| on a percentage of proceeds of sale or percentage of mineral value. All production is subject | |||
| to a Western Australian state government NSR royalty of 2.5%. | |||
| The tenement is ingood standingand the licence to operate alreadyexists. | |||
| Exploration | Acknowledgment and appraisal of exploration by | Mount Martin carried out exploration including RAB and RC drilling in 1989. This along with |
|
| done by other | other parties. | ground magnetics was used to delineate a number of anomalies on islands to the immediate | |
| parties | north and south of Red October. Mount Burgess Gold Mining identified a north east trending | ||
| magnetic anomaly on Lake Carey between the islands considered analogous to Sunrise Dam | |||
| in 1993. Aircore and RC drilling was carried out to define what would become the Red | |||
| October pit. Sons of Gwalia entered into a joint venture with Mount Burgess, carrying out RC | |||
| and diamond drilling to define a pittable reserve before purchasing Mount Burgess' | |||
| remaining equity. Saracen conducted extension RC and diamond drilling from within and | |||
| around the pit defined the potential underground resource. Saracen then further extended, | |||
| defined andgrade controlled via underground drilling. | |||
| Geology | Deposit type, geological setting and style of | Red October gold mine is situated within an Archaean greenstone belt of the Laverton |
|
| mineralisation. | Tectonic Zone. The stratigraphic sequence consists of footwall tholeiitic basalts, mineralised | ||
| shale (containing ductile textures defined by pyrite mineralisation) and a hanging wall | |||
| dominated by ultramafic flows interbedded with high-Mg basalts. Prehnite- pumpellyite | |||
| facies are evident within both the tholeiitic basalts and komatiite flows. Sulphide | |||
| mineralisation is hypothesised to have been caused from interaction with an auriferous | |||
| quartz vein, which has caused the intense pyrite-defined ductile textures of the shale in the | |||
| upper levels. The fluid is believed to have been sourced from the intruding granitoid to the | |||
| (grid)south of the deposit. | |||
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| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| Drill hole | A summary of all information material to the | All material data is periodically released on the ASX:07/12/2016, 07/09/2016, 27/07/2016, |
||
| Information | understanding of the exploration results including | 11/05/2016, 25/05/2015, 0/03/2015,25/05/2015,16/01/2014,14/10/2013, 23/07/2013, |
||
| a tabulation of the following information for all | 17/04/2013, 25/01/2013, 14/06/2012, 27/04/2012, 28/07/2011, 03/06/2011 |
|||
| 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 |
All significant intercepts have been length weighted. No high-grade or low-grade cut is |
||
| aggregation | averaging techniques, maximum and/or minimum | applied. |
||
| methods | grade truncations (eg cutting of high grades) and | Intercepts are aggregated and include internal dilution. Where stand out higher grade zone |
||
| cut-off grades are usually Material and should be | exist with in the broader mineralised zone, the higher-grade interval is reported also. |
|||
| stated. | No metal equivalents are reported. | |||
| Where aggregate intercepts incorporate short | ||||
| lengths of high grade results and longer lengths of | ||||
| low grade results, the procedure used for such | ||||
| aggregation should be stated and some typical | ||||
| examples of such aggregations should be shown in | ||||
| detail. | ||||
| The assumptions used for any reporting of metal | ||||
| equivalent values should be clearly stated. | ||||
| Relationship | These relationships are particularly important in | The geometry of the mineralisation is highly variable and the complex nature of |
the ore | |
| between | the reporting of Exploration Results. | bodies makes the definitive calculation of true thickness difficult. Drilling has been | ||
| mineralisation | If the geometry of the mineralisation with respect | orientated to intersect the various ore bodies at most optimum angle where possible. This |
||
| widths and | to the drill hole angle is known, its nature should | has not always been achieved. Where holes have drilled parallel to or within |
a lode, | |
| intercept | be reported. | additional holes have been drilled at a more suitable orientation to account for thepoor | ||
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| Criteria | JORC Code explanation | Commentary | |
|---|---|---|---|
| lengths | If it is not known and only the down hole lengths | angle. | |
| are reported, there should be a clear statement to | As such, downhole lengths are reported as true widths are difficult to calculate accurately. | ||
| this effect (e.g. ‘down hole length, true width not | |||
| _known’). _ | |||
| Diagrams | Appropriate maps and sections (with scales) and | Diagrams are referenced in the body of the release | |
| 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 Exploration | All results equal to and above 2g/t have been reported. | |
| reporting | Results is not 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 | Dr John McLellan from GMEX Pty Ltd carried out a stress modelling study on the Red | |
| substantive | material, should be reported including (but not | October deposit in 2018. | |
| exploration | limited to): geological observations; geophysical | Multi-element data continues to be collected from underground samples and core samples | |
| data | survey results; geochemical survey results; bulk | to bolster the geochemistry dataset and for ongoing geo-metallurgical purposes. | |
| samples – size and method of treatment; | Red October ore is processed through the Sunrise Dam processing plant, with metallurgical | ||
| metallurgical test results; bulk density, |
recoveries in line with metal recovery assumptions of ~70% – 90%. | ||
| groundwater, geotechnical and rock |
|||
| characteristics; potential deleterious or |
|||
| contaminating substances. | |||
| Further work | The nature and scale of planned further work (eg | Red October is currently under review. | |
| tests for lateral extensions or depth extensions or | Initial targets generated from the geomechanical study are included in previous ASX releases | ||
| large-scale step-out drilling). | (MAT announcement to ASX 18thFebruary 2019). | ||
| 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: Red October Gold Mine Underground Drill Hole Collar Locations
| Hole_ID | **Type ** | Grid | East | North | RL | Depth | Azimuth | Dip |
|---|---|---|---|---|---|---|---|---|
| ROGC734B | Diamond | Mine/Local | 5013.261 | 9884.100 | 1093.212 | 51 | 122 | 1 |
| ROGC735 | Diamond | Mine/Local | 5014.766 | 9866.448 | 1091.525 | 50 | 113 | 5 |
| ROGC736 | Diamond | Mine/Local | 5024.601 | 9853.499 | 1088.099 | 102 | 157 | -2 |
| ROGC737 | Diamond | Mine/Local | 5014.250 | 9886.263 | 1093.178 | 60 | 115 | -22 |
| ROGC738 | Diamond | Mine/Local | 5014.827 | 9866.422 | 1089.996 | 51 | 107 | -19 |
| ROGC739 | Diamond | Mine/Local | 5084.269 | 9903.282 | 1159.873 | 101 | 154 | -12 |
| ROGC740 | Diamond | Mine/Local | 5084.269 | 9903.282 | 1159.873 | 104 | 160 | -7 |
| ROGC741 | Diamond | Mine/Local | 5084.269 | 9903.282 | 1159.873 | 104 | 159 | -21 |
| ROGC742 | Diamond | Mine/Local | 5084.269 | 9903.282 | 1159.873 | 109 | 164 | -19 |
| ROGC751 | Diamond | Mine/Local | 4922.571 | 10176.191 | 1260.680 | 62 | 313 | 20 |
| ROGC756 | Diamond | Mine/Local | 4997.055 | 9943.114 | 841.412 | 75 | 264 | -11 |
| ROGC757 | Diamond | Mine/Local | 4996.992 | 9940.251 | 841.286 | 140 | 245 | -19 |
| ROGC758 | Diamond | Mine/Local | 4996.992 | 9940.251 | 841.286 | 146 | 241 | -7 |
| ROGC795 | Diamond | Mine/Local | 4966.637 | 10180.091 | 1259.633 | 153 | 336 | 12 |
Matsa Resources Limited | www.matsa.com.au | ABN 48 106 732 487 Head office: 11/139 Newcastle Street, Perth Western Australia 6000 | T 08 9230 3555 | [email protected] Bangkok Office: Unit 1801, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 | T +66 0 2653 0258
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Appendix 3: Red October Gold Mine gold assays >=2.0 g/t Au (downhole lengths stated)
| Hole ID | Lode | From (m) |
To (m) |
Thickness (m) |
**Aug/t ** |
|---|---|---|---|---|---|
| ROGC734B | Dory HW353 | 38.00 | 38.30 | 0.30 | 7.09 |
| ROGC735 | Dory HW353 | 34.00 | 34.81 | 0.81 | 22.00 |
| ROGC738 | Smurfette 320 | 0.00 | 7.00 | 7.00 | 5.24 |
| ROGC738 | Smurf 314 | 19.55 | 21.00 | 1.45 | 3.49 |
| ROGC738 | Smurfette 320 | 25.96 | 30.00 | 4.04 | 4.62 |
| ROGC739 | Smurf 310 | 54.00 | 55.00 | 1.00 | 2.30 |
| ROGC740 | Unmodelled lode | 90.00 | 91.00 | 1.00 | 5.98 |
| ROGC741 | Unmodelled lode | 90.00 | 92.00 | 2.00 | 3.26 |
| ROGC741 | MH Fault | 97.20 | 101.00 | 3.80 | 30.98 |
| ROGC742 | Unmodelled lode | 72.00 | 73.60 | 1.60 | 5.94 |
| ROGC751 | Lionfish HW356 | 37.50 | 37.78 | 0.28 | 161.50 |
| ROGC751 | Lionfish HW 357 | 20.00 | 20.33 | 0.33 | 6.41 |
| ROGC756 | Marlin 410 | 53.16 | 54.91 | 1.75 | 2.11 |
| ROGC757 | Anchor 336 | 44.23 | 44.55 | 0.32 | 2.73 |
| ROGC757 | Marlin 410 | 99.50 | 100.80 | 1.30 | 8.14 |
| ROGC757 | Unmodelled lode | 125.40 | 125.60 | 0.20 | 2.15 |
| ROGC758 | Marlin 410 | 97.00 | 98.70 | 1.70 | 51.68 |
| ROGC758 | Unmodelled lode | 126.50 | 127.10 | 0.60 | 3.81 |
| ROGC758 | Unmodelled lode | 139.70 | 140.30 | 0.60 | 3.35 |
| ROGC795 | Unmodelled lode | 75.95 | 76.35 | 0.40 | 3.52 |
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