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MRG METALS LIMITED — M&A Activity 2018
May 13, 2018
65374_rns_2018-05-13_857b744f-18f3-40a5-a7c6-ffc535b6eed1.pdf
M&A Activity
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14 MAY 2018 ASX ANNOUNCEMENT
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MRG TO ACQUIRE HIGH POTENTIAL HEAVY MINERAL SANDS PROJECTS IN MOZAMBIQUE
This announcement should be read in conjunction with the announcements of 11 April 2018 and 11 May 2018. During due diligence we identified relevant information in relation to the Foreign and Historic drill data background of the HMS Projects and now disclose that information. The previous announcement did not include the appropriate JORC disclosures.
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On 7 April 2018, MRG Metals (“MRG” or the “Company”) entered into a binding Heads of Agreement (“HoA”) to acquire three high potential Heavy Mineral Sands (“HMS”) Projects held by Sofala Resources Pty Ltd (“Sofala”).
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Due diligence has been successfully completed.
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Upon successful completion of MRG Shareholder approval (anticipated via a General Meeting prior to end of June 2018), the acquisition will provide MRG with a pipeline of permitted and applied for exploration projects in a World class HMS province, Southern Mozambique.
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These HMS Projects have delivered excellent past drill results. The most advanced HMS Project is the Corridor Project where all of the 35 wide spaced drillholes intersected HMS mineralisation; all included high grade assay intervals from surface up to 90m depth over an area of 14kms by 9kms on Corridor Central and 14kms by 6kms on Corridor South.
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Highlights include:
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Corridor Central
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DH CS100 - 36m @ 5.2%THM from surface.
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DH CS101- 39m @ 6.7%THM from surface; including 12m @ 9.8% THM from 21m.
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DH CSEX32- 87m @ 3.62%THM from surface to EOH; including 27m @ 6.8% THM from 39m.
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Linhuane
oDH LP1255 – 10.5m @ 15.8%THM from surface to EOHoDH LP1272 – 10.5m @ 17.9%THM from surface to EOH -
Titanium and zircon prices remain firm as demand continues to expand.
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Capital raising of $600K completed at $0.01 per MRQ share with an attached 1 for 2 MRQOB option. This raising was oversubscribed.
MRG Chairman, Andrew Van Der Zwan commented “The Company is pleased to announce that it has entered into a binding HoA to acquire these highly prospective Projects in a world class HMS mineral province. MRG has reviewed more than 70 projects in pursuit of a Company making project and this acquisition has the potential to meet this objective. The Projects have enormous scale potential and the acquisition price is based on significant project enhancing milestones, ensuring all shareholders will benefit from further successful drilling and project development”
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
MRG Metals Limited (ASX: MRQ) is pleased to announce that it has entered into a binding Heads of Agreement to acquire Sofala Resources Pty Ltd and Trophosys Pty Ltd. Subject to due diligence and MRG Shareholder approval, the acquisitions will see MRG holding a 100% interest in the Corridor, Linhuane and Marao/Marucca mineral sands Projects in the extensively endowed Xai Xai and Inhambane Provinces of south-east Mozambique (refer Figure 1).
Sofala has secured these highly prospective exploration projects and Sofala directors have an intimate knowledge of the mineral sands potential of Mozambique, providing Sofala and MRG with a significant first mover advantage.
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The Corridor Project consists of Corridor Central Exploration License (EL) 6620L and Corridor South Exploration Licence 6621L and cover 387km[2] . These areas were drilled by Southern Mining Corporation and comprise the most advanced project within the portfolio.
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Linhuane Project consists of Exploration Licence application 7423L and comprises 113km[2 ] of a palaeodune adjacent to the coast that Rio Tinto undertook shallow drilling on.
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Marao/Marruca Project consists of Exploration License applications 6842L and 6846L that cover 491km[2] of a palaeodune system that lies approximately 50km from the present coastline.
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Linhuane
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Figure 1: Project locations.
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
Foreign & Historic Drill Data Background
Corridor Project:
The foreign and historic drill information presented in this release was originally collected by Southern Mining Corporation (SMC), a company incorporated in the Republic of South Africa and a listed Company on the Securities Exchange in Johannesburg (JSE). SMC evaluated the globally significant Corridor Sands heavy mineral sand deposit between 1998 and 2003 and eventually progressed the project through to a Bankable Feasibility Study (BFS) in conjunction with their partners – Western Mining Corporation (WMC) in the year 2000. SMC was eventually purchased by WMC in 2003 which was in turn taken over by BHP in 2005. The main focus of SMC at that time was the main Corridor Deposit but between 1999 and 2000 the Company undertook additional exploration (35 historic drill holes referred to in this release) some 15 to 35km to the south and drilled the tenements now being considered for acquisition by MRG Metals.
Details pertaining to the reliability and quality of the foreign and historic data is presented in Appendix 1 – JORC Table 1 format compiled by Dr Mark Alvin. Dr Alvin has endeavoured, by making all reasonable enquires, to confirm the authenticity, accuracy and completeness of the technical information upon which this release is based. It has not been possible to access original records with the passing of almost 20 years. The exploration and resource activities undertaken by SMC and later WMC over the greater Corridor Sands project that includes the drill data on the Corridor Central and South licenses has been completed to BFS level. Since 2000 the work was primarily undertaken by WMC who was considered a global leader in exploring for and developing mines. WMC had a reputation of maintaining high geoscientific integrity and utilising world best practice in exploration and operations. Whilst it is not possible to completely verify the accuracy and quality of the drill information due to the historic nature of the drill data there is sufficient evidence confirming that the holes were accurately located on the tenements, the sample analysis was undertaken using industry standard techniques and reported to industry standard total heavy mineral and slimes contents. Furthermore, the exploration results show significant zones of heavy mineral sands mineralisation and allow the Company to potentially fast track and focus its exploration efforts post settlement.
It is on this basis that Dr Alvin considers the drill data presented in this release to be material to the assessment of the project being considered for acquisition by MRG Metals. Details of the proposed work plan to verify the historic drill data is presented in Appendix 1, and includes drilling new holes to confirm the depth and grades of mineralisation and to undertake rigorous QA/QC procedures to ensure that future drill information can comply with JORC 2012.
Corridor Project:
The Corridor Project consists of Corridor Central (EL6620L) and Corridor South (EL6621L) licenses. Foreign and Historic first pass RC drilling yielded elevated total heavy mineral (“THM”) assay intervals in all of 35 completed holes (Appendix 2). This wide spaced drilling on EL6620L encountered high grade mineralisation from surface to 90m depth over an area of 14km x 9km. Drilling on EL6621L has encountered high grade mineralisation over an area of 14km x 6km. Refer Appendix 2 for drill hole data.
Better drill intercepts included: DH CS100 36m @ 5.2%THM from surface. DH CS101 39m @ 6.7%THM from surface; including 12m @ 9.8% THM from 21m. DH CSEX32 87m @ 3.62%THM from surface to EOH; including 27m @ 6.8% THM from 39m.
The mineralisation is associated with HMS sourced from the interior of Mozambique, deposited by the Limpopo River and suggests significant exploration upside to delineate a substantial resource.
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
Corridor Projects Drillhole Location
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Figure 2: Drillhole location plan over the Corridor South and Central tenements. Note: Every drill hole contained ore grade heavy mineral sand intersections
The Corridor Projects lie on the north-eastern side of the Limpopo River alluvial plain in a similar geological setting as the currently mined Corridor 1 and Chilubane deposits. The Corridor 1 deposit lies 10km north of the licences and the Chilubane deposit immediately to the south (refer Figure 3).
The globally significant Corridor 1 deposit, which is in production northwest of the Corridor Projects, is a US$471million JV between the Mozambique Government and a Chinese consortium led by Anhui Foreign Economic Construction Group.
The Chilubane deposit to the south of the Corridor Project is owned by Rio Tinto and is currently undergoing a feasibility study as a precursor to mining.
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
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Figure 3: Corridor 1 deposit and Chilubane deposit location map (orange polygons).
Note: The THM contours were derived from the drill programs conducted over the greater Corridor project that includes the drill information presented in this release.
Foreign & Historic Drill Data Background
Linhuane and Marao Projects
The foreign and historic drill information presented in this release was originally collected by Rio Tinto (RT) as part of their regional exploration programs in Mozambique. The drill data was collected between the years 2000 and 2001 from areas covering the Linhuane and Marao license areas. Details pertaining to the reliability and quality of the foreign and historic data is presented in Appendix 1 – JORC Table 1 format compiled by Dr Mark Alvin. Dr Alvin has endeavoured, by making all reasonable enquires, to confirm the authenticity, accuracy and completeness of the technical information upon which this release is based. It has not been possible to access original records with
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
the passing of almost 20 years. Rio Tinto is an internationally recognised explorer and producer that have a reputation of maintaining high geoscientific integrity and utilising world best practice in exploration and operations. Whilst it is not possible to completely verify the accuracy and quality of the auger drill information due to the historic nature of the drill data there is sufficient evidence presented in Appendix 1 to provide a high level of confidence the information is reliable and material to assessment of the project being considered for acquisition by MRG Metals. Once the tenure is granted the Company proposes to conduct further drilling activities – auger or AC to confirm the depth and grades of the mineralisation and undertake rigorous QA/QC procedures to ensure that future drill information can comply with JORC 2012.
Linhuane Project:
This Project is under application and is located in Gaza Province covering an area of 113km[2 ] including a 20km strike of a prospective palaeodune feature, adjacent to the present coast. Open file reports indicate Rio Tinto conducted shallow reconnaissance exploration drilling within the licence. Auger drill holes were reportedly 500m apart on drill traverses 3km apart. Results show continuous zones of high grade THM to depths of 10m @ 5% - 25% THM. No drilling information below 10.5m depth (refer Figure 4). Refer Appendix 3 for drill hole data.
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Figure 4: Linhuane project application area.
Marao/Marruca Project:
This project covers an ancient Heavy Mineral strandline. The Marao licence was previously drilled by Rio Tinto and the Marruca application along strike is untested. Open file reports show Rio Tinto undertook shallow reconnaissance exploration on a small portion of the Marao licence 6842L. Grades of 1.5%-2.0% THM from surface to 10.5m downhole, ending in 2.0% THM. Significant result includes 9m @ 2.85% THM with low slimes, typically 10% or less. Surface mineralisation extends up to 7km along strike with drill holes 1km apart. Combined prospective palaeodune strike length of 75km, inland from an interpreted palaeoshoreline. The extent of the mineralisation has never been systematically tested at depth or along strike. Refer Appendix 4 for drill hole data for Marao.
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
- Mozambique World class Titanium province:
Mozambique is a developing country with an emergent mining and exploration industry. It has an extensive 2,700km-long coastline that has proven to be highly prospective for large titanium and zircon heavy minerals sand deposits. Mozambique has the largest titanium feedstock resources in the world. Modern HMS exploration commenced in the 1980’s with discovery of deposits in Nampula (Namalope and Moebase deposits) and Gaza Provinces (Corridor Sands deposit). Early exploration was conducted by Western Mining Corporation & BHP Billiton (Corridor Project), Gencor, Anglo American, Iscor, Iluka Resources and Rio Tinto.
In 2014 the Mozambique government, Anhui Foreign Economic Construction Group (AFECC) and Yunnan Xinli Non-ferrous Metal Company (YXNM) formed the US$471 million Chibuto Joint Venture (CJV). AFECC is currently in production.
Kenmare Resources operates the Moma Mine on the northeast coast of Mozambique and is in production.
Rio Tinto through a joint venture with Savannah Resources is developing the Mutamba and Chilubane projects which are at the feasibility stage.
Other mineral sands explorers in Mozambique include Mozmin Resources, Regius Resources and Pathfinder Minerals.
Heads Of Agreement (“HOA”):
Under the HOA, MRG will have 30 days to carry out due diligence to satisfy itself to acquire all of the issued capital of Sofala and Trophosys.
Upon satisfaction of due diligence, approval by MRG Shareholders will be sought at a General Meeting. Following Shareholder and regulatory Approval and at Settlement of the transaction, MRG will:
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Reimburse Sofala loans (not to exceed US$100,000).
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Issue 175,000,000 MRQ fully paid ordinary shares and 175,000,000 MRQOB options to the Sofala and Trophosys shareholders.
Milestone payments and timeframe for payments:
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Within 24 months of Settlement and the achievement of a 350M tonne JORC 2012 compliant resource (minimum Total Heavy Minerals (THM) of 5%), MRG shall issue 240,000,000 MRQ fully paid ordinary shares to Sofala and Trophosys shareholders.
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Following completion of a Scoping Study on the HMS Projects showing positive economics combined with a MRG Board decision to commence a PFS at any time after Settlement or within 30 months MRG shall issue 480,000,000 MRQ fully paid ordinary shares to Sofala and Trophysys. Further, the Sofala and Trophosys shareholders will voluntarily escrow 240,000,000 of these shares, until such time that MRG achieves a Market Capitalisation greater than A$100M for greater than 30 days or for a period of 24 months from issue, whichever occurs first. If the HMS Projects are sold at a valuation greater than $100 million cash or based on consideration that is valued by an Independent Expert’s Report, prior to the completion of milestone 2, then all shares under milestones 1 and 2 will be issued.
Placement:
MRG is pleased to announce that it has successfully raised $600K, before costs via a share placement. The share placement was undertaken at an issue price of 1c cent per share Shares with an attaching 1:2 listed option (MRQOB) exercisable at 1c, with an expiry date of 20 December, 2020. The placement was oversubscribed. The placement was made via the Company’s existing additional placement capacity under ASX Listing Rule 7.1 (30M MRQOB) and 7.1A (60M MRQ), to sophisticated investors and retail private clients of PEAK Asset Management Pty Ltd.
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
Forward looking statements
Some of the statements appearing in this document may be in the nature of forward looking statements. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement and such deviations are both normal and to be expected.
Neither the Company nor any of its officers, or any person named in this document or involved in the preparation of this document, make any representation or warranty (either express or implied) as to the accuracy or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, and prospective investors are cautioned not to place undue reliance on those statements.
The forward looking statements in this document reflect views held only as at the date of this document. The Company does not have an obligation to disseminate after the date of this document any updates or revisions to any such statements to reflect any change in expectations in relation to those statements or any change in events, conditions or circumstances on which any of those statements are based unless required to do so under the Corporations Act to update or correct this document or pursuant to the Company’s continuous disclosure obligations under the ASX Listing Rules and the Corporations Act.
Competent Person’s Statement
The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation prepared by Dr Mark Alvin, who does not work for MRG Metals. Dr Alvin is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which has been undertaken to qualify as Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Alvin consents to the inclusion in this release of the matters based on the information in the form and context in which they appear. Dr Alvin is a shareholder of Sofala Resources and does not hold any shares in MRG Metals.
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
Appendix 1
JORC Code, 2012 Edition – Table 1
Section 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, random chips, or | Corridor Central and South |
| techniques | specific specialised industry standard measurement tools appropriate | •Aircore drilling was undertaken to obtain samples for analysis at 3m |
| to the minerals under investigation, such as down hole gamma | intervals (1 drill rod) and less commonly 6m intervals (2 drill rod | |
| sondes, or handheld XRF instruments, etc). These examples should | lengths) | |
| not be taken as limiting the broad meaning of sampling. | •Full details of the sampling techniques are not known due to the | |
| • Include reference to measures taken to ensure sample representivity | foreign and historic nature of the drilling information. | |
| and the appropriate calibration of any measurement tools or systems | •3m or 6m samples were taken and submitted for THM and slimes | |
| used. | content analysis | |
| • Aspects of the determination of mineralisation that are Material to the | Linhuane and Marao | |
| Public Report. | •Auger drilling was undertaken to obtain samples for analysis at 1.5m | |
| • In cases where ‘industry standard’ work has been done this would be | intervals (one and a half drill rod lengths) | |
| relatively simple (eg ‘reverse circulation drilling was used to obtain 1 | •The auger drill spoil was quarter-cone split in the field to produce a 1 | |
| m samples from which 3 kg was pulverised to produce a 30 g charge | to 2kg sample that was submitted for THM, Oversize and Slimes | |
| for fire assay’). In other cases more explanation may be required, | analysis | |
| 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 | • Drill type (eg core, reverse circulation, open-hole hammer, rotary air | Corridor Central and South |
| techniques | blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple | •Aircore (AC) drilling was used |
| or standard tube, depth of diamond tails, face-sampling bit or other | •Wallis Drilling and Westside Drill Companies were engaged to | |
| type, whether core is oriented and if so, by what method, etc). | undertake the drilling over the Corridor Central and South tenements | |
| and also over the main Corridor Sands deposit | ||
| •Aircore is considered a standard industry technique for HMS | ||
| mineralization. Aircore drilling is a form of reverse circulation drilling | ||
| where the sample is collected at the face and returned inside the | ||
| inner tube | ||
| •Aircore drilling is a face sampling technique | ||
| All drill holes were vertical | ||
| Linhuane and Marao | ||
| •Augerdrilling using amanualsystembyDormer Engineering |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| •Drill rods are 1m long | ||
| •62mm open hole drilling technique | ||
| •There is potential for contamination in open hole drilling techniques | ||
| •All drill holes were vertical | ||
| Drill sample | • Method of recording and assessing core and chip sample recoveries | Corridor Central and South |
| recovery | and results assessed. | •Full details of the drill recoveries are not known due to foreign and |
| • Measures taken to maximise sample recovery and ensure | historic nature of the drilling information. | |
| representative nature of the samples. | •It is not known if the recoveries affected sample bias in the | |
| • Whether a relationship exists between sample recovery and grade | determination of grade analysis | |
| and whether sample bias may have occurred due to preferential | Linhuane and Marao | |
| loss/gain of fine/coarse material. | •Auger drilling is considered to be an early stage relatively | |
| unsophisticated technique of drilling | ||
| •It is open hole and drill recoveries are estimated according to the | ||
| volume of drill spoils that forms from the interval piles. | ||
| •It is not known if the recoveries affected sample bias in the | ||
| determination of grade analysis | ||
| Logging | • Whether core and chip samples have been geologically and | Corridor Central and South |
| geotechnically logged to a level of detail to support appropriate | •3 metre or 6 metre drill logging was carried out describing the geology | |
| Mineral Resource estimation, mining studies and metallurgical | (sand, clay or silt) colour and grainsize | |
| studies. | •The logging is considered qualitative and subject to variation | |
| • Whether logging is qualitative or quantitative in nature. Core (or | depending on the geologist logging the hole | |
| costean, channel, etc) photography. | •Every drillhole was logged from top of the hole to the end of the hole | |
| • The total length and percentage of the relevant intersections logged. | •Full details of the logging process is not known due to the foreign and | |
| historic nature of the drilling information | ||
| Linhuane and Marao | ||
| •The 1.5m auger intervals were each qualitatively logged and entered | ||
| into a field pocket PC prior to validation and uploading into a master | ||
| database | ||
| •The samples were logged for lithology, colour, grainsize, rounding, | ||
| sorting, hardness, estimated THM%, and any relevant comments‐ | ||
| such as slope, vegetation, or cultural activity | ||
| •Every drillholeisloggedin full | ||
| Sub-sampling | • If core, whether cut or sawn and whether quarter, half or all core |
Corridor Central and South |
| techniques | taken. | •Full details of the sub-sampling techniques and sample preparation |
| and sample | • If non-core, whether riffled, tube sampled, rotary split, etc and | and specifically ensuring sample representivity are not known due to |
| preparation | whether sampled wet or dry. | foreign and historic nature of the drilling information |
| • For allsample types, the nature, quality and appropriateness of the | •SamplingAC derived material is considered appropriate and industry |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| sample preparation technique. | standard when exploring and drilling out mineral sand anomalies or | |
| • Quality control procedures adopted for all sub-sampling stages to | orebodies | |
| maximise representivity of samples. | Linhuane and Marao | |
| • Measures taken to ensure that the sampling is representative of the in | •The homogenized 1.5m drill spoil composites were quarter-coned |
|
| situ material collected, including for instance results for field | onsite | |
| duplicate/second-half sampling. | •A total of 1 to 2kg was collected into a calico bag and sent to the | |
| • Whether sample sizes are appropriate to the grain size of the material | internal Rio Tinto laboratory for THM%, Oversize% and Slimes% |
|
| being sampled. | analysis | |
| •At the laboratory the sample was riffle split by single tier riffler to | ||
| about a 300gm sub-sample | ||
| •Full details of the sub-sampling techniques and sample preparation | ||
| and specifically ensuring sample representivity are not known due to | ||
| foreign and historic nature of the drilling information | ||
| •Sampling auger derived material is considered appropriate and | ||
| industry standard for the initial evaluation of prospective areas prior to | ||
| more targeted follow-up with AC drilling | ||
| Quality of | • The nature, quality and appropriateness of the assaying and | Corridor Central and South |
| assay data | laboratory procedures used and whether the technique is considered | •The Aircore samples were first screened for removal and |
| and | partial or total. | determination of silt content (slimes) and the remainder of the sample |
| laboratory | • For geophysical tools, spectrometers, handheld XRF instruments, etc, | was analysed for total heavy mineral (THM %) content by heavy liquid |
| tests | the parameters used in determining the analysis including instrument | separation |
| make and model, reading times, calibrations factors applied and their | •This is an industry standard technique for determining insitu heavy | |
| derivation, etc. | mineral sand content | |
| • Nature of quality control procedures adopted (eg standards, blanks, | •Full details the quality control procedures adopted during the drilling | |
| duplicates, external laboratory checks) and whether acceptable levels | and sampling assessment specifically issues around accuracy and |
|
| of accuracy (ie lack of bias) and precision have been established. | precision are not known due to the foreign and historic nature of the | |
| drilling information | ||
| •Refer to SRK review in the verification of sampling and assay | ||
| Linhuane and Marao | ||
| •The initial 1 to 2kg auger samples were split progressively down to | ||
| 300 to 400g. | ||
| •The 300 to 400g samples were attritioned to break up any clay | ||
| particles adhering to the minerals | ||
| •The attritioned sample was then screened for removal and | ||
| determination of slimes content ( minus 45micron) | ||
| •The sand fraction was screened to remove the oversize (plus 1mm | ||
| fraction) | ||
| •Theremainderofthe sample (-45umto1mm)was split a second time |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| with a Jones micro riffle splitter to produce a 100 to 160g sample | ||
| which was analysed for total heavy mineral (THM %) content by | ||
| heavy liquid separation using LST (density 2.85) | ||
| •This is an industry standard technique for determining insitu heavy | ||
| mineral sand content | ||
| •Laboratory duplicates were processed every 25thsample and | ||
| monitored daily against defined precision values | ||
| •No standards were used | ||
| Verification of | • The verification of significant intersections by either independent or |
Corridor Central and South |
| sampling and | alternative company personnel. | •As published in the Annual Report submitted the Johannesburg Stock |
| assaying | • The use of twinned holes. | exchange for the year 2000. Leading independent consultant SRK |
| • Documentation of primary data, data entry procedures, data | was engaged by SMC to twin a number of boreholes from the greater | |
| verification, data storage (physical and electronic) protocols. | Corridor Sands project previously drilled by SMC. The samples were | |
| • Discuss any adjustment to assay data. | submitted to another independent laboratory that was used by SMC | |
| with the intention of verifying the drill data. The evaluation concluded | ||
| the project represents a world class resource in size, grade and | ||
| product quality. | ||
| •The drill data from the Corridor central and south tenements was | ||
| drilled as part of the greater Corridor Sands project | ||
| •If the project is acquired by MRG Metals, as part of its future drill | ||
| programs it will be conducting its own drill programs to verify the | ||
| foreign and historic data. | ||
| Linhuane and Marao | ||
| •An external duplicate was sent to Lakefield in South Africa at a rate or | ||
| 1 per day and submitted every 14 days | ||
| •The internal and external THM%, Oversize% and Slimes% data was | ||
| reviewed using a set of internal guidelines established by Rio Tinto. | ||
| •No detailed information has been assessed that reviews the | ||
| performance of the internal laboratory | ||
| Location of | • Accuracy and quality of surveys used to locate drill holes (collar and | Corridor Central and South |
| data points | down-hole surveys), trenches, mine workings and other locations | •The holes were drilled over successive field campaigns in 1999 and |
| used in Mineral Resource estimation. | 2000 (August and Sept). | |
| • Specification of the grid system used. | •The collar information is recorded in UTM zone 36 south WGS 84 to 2 | |
| • Quality and adequacy of topographic control. | decimal places | |
| •The collar information is also recorded in Lat/Long WGS84 to 4 | ||
| decimal places | ||
| •Down hole surveys are generally not required for vertical holes | ||
| •Whilstfulldetails ofthelocationofthe data pointsisnotknowndue to |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| the foreign and historic nature of the drilling information the hole | ||
| locations were crossed checked in a GIS against publically reported | ||
| maps and plans and peer-reviewed scientific papers showing the | ||
| location of heavy mineral sand anomalies within the tenements. It | ||
| was determined that the higher grade THM hole locations match the | ||
| locations of the high grade anomalies and provided strong confidence | ||
| in the drill collar locations. | ||
| Linhuane and Marao | ||
| •The auger holes were drilled over successive field campaigns in 2000 | ||
| and 2001. | ||
| •The collar information is recorded in UTM zone 36 south WGS 84 to 0 | ||
| decimal places | ||
| •A hand held Garmin 12XL GPS was used to record the information. | ||
| The degree of accuracy using GPS at the time is estimated at 10 to | ||
| 15m | ||
| •This degree of accuracy is appropriate for first pass auger drilling | ||
| exploration | ||
| Data spacing | • Data spacing for reporting of Exploration Results. | Corridor Central and South |
| and | • Whether the data spacing and distribution is sufficient to establish the | •The drill holes are wide spaced 1km to 5km apart and have been |
| distribution | degree of geological and grade continuity appropriate for the Mineral | designed to delineate large zones of mineralization |
| Resource and Ore Reserve estimation procedure(s) and | •The drill spacing and distribution is sufficient to establish a degree of | |
| classifications applied. | geological and grade continuity even at 1km spaced drill holes. | |
| • Whether sample compositing has been applied. | Linhuane and Marao | |
| •The auger drilling spacing at Linhuane is 500 x 2500m and targeted | ||
| along a significant dunal feature. The mineralization and geological | ||
| continuity is evident along the dunal feature. | ||
| •The auger drilling at Marao was dictated by access tracks with holes | ||
| drilled every 1km and is not considered a systematic test to determine | ||
| geological or grade continuity | ||
| Orientation of | • Whether the orientation of sampling achieves unbiased sampling of | Corridor Central and South |
| data in | possible structures and the extent to which this is known, considering | •With wide spaced drill holes and the intention to discover broad zones |
| relation to | the deposit type. | of homogenous thick zones of THM mineralization the orientation of |
| geological | • If the relationship between the drilling orientation and the orientation | the first pass drill program is not considered relevant. |
| structure | of key mineralised structures is considered to have introduced a | •Future close spaced drill programs may discover grade variations |
| sampling bias, this should be assessed and reported if material. | associated with dip or cross strike high grade zones of mineralization. | |
| •Drill holes were vertical and the nature of the mineralisation is | ||
| relatively horizontal | ||
| •The orientationofthe drillingis considered appropriatefortesting the |
5
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| lateral and vertical extent of homogenous HM mineralization without | ||
| bias | ||
| Linhuane and Marao | ||
| •At Linhuane the auger drill testing was oriented to cross the | ||
| mineralized dunal feature in a perpendicular fashion | ||
| •At Marao the auger drill lines were located approximately | ||
| perpendicular to the strike of the palaeoshoreline | ||
| Sample | • The measures taken to ensure sample security. | Corridor Central and South |
| security | •Full details regarding the sample security are not known due to | |
| foreign and historic nature of the drilling information | ||
| Linhuane and Marao | ||
| •Samples were transported from the field by Rio Tinto employees to | ||
| the Rio Tinto Inhambane laboratory. Samples were signed for by the | ||
| laboratory manager after checking. | ||
| •Samples sent to Lakefield South Africa were transported by Rio Tinto | ||
| employees from the Inhambane laboratory to Maputo office. The | ||
| samples were then transported by DHL to South Africa. | ||
| Audits or | • The results of any audits or reviews of sampling techniques and data. | Corridor Central and South |
| reviews | •This Table 1 summary represents the first review of the foreign and | |
| historic data | ||
| Linhuane and Marao | ||
| •This Table 1 summary represents the first review of the foreign and | ||
| historic data |
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
6
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral | • Type, reference name/number, location and ownership including | Corridor Central and South (granted) |
| tenement and | agreements or material issues with third parties such as joint |
•The foreign and historic drill exploration results were originally drilled |
| land tenure | ventures, partnerships, overriding royalties, native title interests, | on tenements owned by SMC |
| status | historical sites, wilderness or national park and environmental | •The tenements and project was subsequently bought by Western |
| settings. | Mining Corporation under a protracted purchase agreement between | |
| • The security of the tenure held at the time of reporting along with any | 2002 and finalized in 2003. The asset was then bought by BHP | |
| known impediments to obtaining a license to operate in the area. | through the US$7.3b takeover of WMC in addition to many other | |
| assets held by WMC at the time. | ||
| • The current tenements of Corridor Central and South are owned | ||
| 100% by Sofala Mining and Exploration Limitada | ||
| • Traditional landowners and village Chiefs of the affected villages will | ||
| be consulted prior to accessing the areas for on the ground | ||
| exploration activities. | ||
| Linhuane and Marao (in application) | ||
| •The foreign and historic drill exploration results were originally drilled | ||
| on tenements (565R) owned by Rio Tinto | ||
| • The current tenement applications of Linhuane and Marao are owned | ||
| 100% by Sofala Mining and Exploration Limitada | ||
| Exploration | • Acknowledgment and appraisal of exploration by other parties. | Corridor Central and South |
| done by other | •The data presented in this release was originally drilled by SMC | |
| parties | between 1999 and 2000. No other historic exploration work has been | |
| found over the Corridor Central and South projects. | ||
| Linhuane and Marao | ||
| •The data presented in this release was originally drilled by Rio Tinto | ||
| between 2000 and 2001 | ||
| •The data was accessed from the open file records available at the | ||
| MEM | ||
| Geology | • Deposit type, geological setting and style of mineralisation. | Corridor Central and South |
| •The Corridor Sands heavy mineral sand (HMS) ilmenite - zircon - | ||
| rutile deposit is located just to the north-east of the Limpopo river, | ||
| near the town of Chibuto, some 190 km north-east of Maputo and 50 | ||
| km inland from the Indian Ocean coast in Gaza Province of southern | ||
| Mozambique. Corridor is hosted within deltaic, estuarine and | ||
| shoreline sediments deposited at the mouth of the palaeo-Limpopo | ||
| River, when it also carried the outflow of the Zambezi, Sashi and | ||
| Kafuerivers. Theheavyminerals transportedfrom inlandwere |
7
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| winnowed by both longshore currents and onshore winds to produce | ||
| heavy mineral concentrations in high aeolian sand palaeo-dunes. | ||
| Subsequent structural uplift associated with the Rift Valley, has both | ||
| redirected the Zambezi-Kafue river system from the Limpopo valley | ||
| and resulted in a regression such that the Corridor HMS | ||
| accumulations are now stranded some 50 km inland from the coast. | ||
| •The mineralization drilled on the Corridor Central and South | ||
| tenements is part of the greater Corridor heavy mineral sands system | ||
| Linhuane and Marao | ||
| •The geology of the Linhuane tenement is dominated by modern | ||
| dunes that extend along the coastline of this region. The dunes range | ||
| from 30 to 60m high and have been created from consistent NW | ||
| directed winds from the Indian Ocean. | ||
| •The geology of the Marao area is thought to represent palaeodunes | ||
| formed at a similar time to the main Corridor 1 deposit. | ||
| Drill hole | • A summary of all information material to the understanding of the | Corridor Central and South |
| Information | exploration results including a tabulation of the following information | •All of the historic drill holes from the Corridor Central and South |
| for all Material drill holes: | tenements are reported in Appendix 2. | |
o easting and northing of the drill hole collar |
•Since all of the holes contain mineralised THM intervals they are | |
o elevation or RL (Reduced Level – elevation above sea level in |
considered material to this release. | |
| metres) of the drill hole collar | Linhuane and Marao | |
o dip and azimuth of the hole |
•All of the historic drill holes from the Linhuane and Marao tenements | |
o down hole length and interception depth |
are reported in Appendix 3 and 4 respectively. | |
o hole length. |
•Since all of the auger holes contain some mineralised THM intervals | |
| • If the exclusion of this information is justified on the basis that the | they are considered material to this release | |
| 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, | Corridor Central and South |
| aggregation | maximum and/or minimum grade truncations (eg cutting of high | •Length weighted intervals are reported in full for each hole (Appendix |
| methods | grades) and cut-off grades are usually Material and should be stated. | 2) |
| • Where aggregate intercepts incorporate short lengths of high grade | Linhuane and Marao | |
| results and longer lengths of low grade results, the procedure used | •Length weighted intervals are reported in full for each hole (Appendix | |
| for such aggregation should be stated and some typical examples of | 3 and 4) | |
| 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 inthe reporting of _ | Corridor Central and South |
8
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| between | Exploration Results. | •The nature of the mineralisation is broadly horizontal, thus vertical |
| mineralisation | • If the geometry of the mineralisation with respect to the drill hole |
aircore holes are thought to represent close to true thicknesses of the |
| widths and | angle is known, its nature should be reported. | mineralisation |
| intercept | • If it is not known and only the down hole lengths are reported, there | •Downhole widths are reported |
| lengths | should be a clear statement to this effect (eg ‘down hole length, true | Linhuane and Marao |
| width not known’). | •The nature of the mineralisation is broadly horizontal, thus vertical | |
| auger holes are thought to represent close to true thicknesses of the | ||
| mineralisation | ||
| •Downhole widths are reported | ||
| Diagrams | • Appropriate maps and sections (with scales) and tabulations of | Corridor Central and South |
| intercepts should be included for any significant discovery being | •Figures and plans are displayed in the main text of the Release | |
| reported These should include, but not be limited to a plan view of | Linhuane and Marao | |
| drill hole collar locations and appropriate sectional views. | •Figures and plans are displayed in the main text of the Release | |
| Balanced | • Where comprehensive reporting of all Exploration Results is not | Corridor Central and South |
| reporting | practicable, representative reporting of both low and high grades | •All results are considered material and have been reported and |
| and/or widths should be practiced to avoid misleading reporting of | tabulated in Appendix 2. | |
| Exploration Results. | Linhuane and Marao | |
| •Figures and plans are displayed in the main text of the Release | ||
| Other | • Other exploration data, if meaningful and material, should be reported | Corridor Central and South |
| substantive | including (but not limited to): geological observations; geophysical | •Mineral assemblage work based on magnetic separation techniques |
| exploration | survey results; geochemical survey results; bulk samples – size and | and XRF analysis has also been completed from the heavy mineral |
| data | method of treatment; metallurgical test results; bulk density, | concentrate sample. Full details of the techniques used to derive the |
| groundwater, geotechnical and rock characteristics; potential | mineral assemblage work and chemical analysis are not known due | |
| deleterious or contaminating substances. | the foreign and historic nature of the drill information but the level of | |
| detailed analytical information does provide confidence in the quality | ||
| of the data. | ||
| Linhuane and Marao | ||
| •No other substantive historic work has been accessed | ||
| Further work | • The nature and scale of planned further work (eg tests for lateral | Corridor Central and South |
| extensions or depth extensions or large-scale step-out drilling). | •The drill plan shown in the main body of the text shows the tenure | |
| • Diagrams clearly highlighting the areas of possible extensions, | has had limited drill testing in a systematic manner. Should the | |
| including the main geological interpretations and future drilling areas, | acquisition of the Sofala project proceed then MRG Metals should | |
| provided this information is not commercially sensitive. | plan additional AC drilling to assist in delineating coherent zones of | |
| mineralization | ||
| •The drill targeting will be assisted by the foreign and historic drilling | ||
| presented in this release and potentially enhanced with the flying of a | ||
| detailed aerial magnetic,radiometric and topographic survey |
9
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Linhuane and Marao | ||
| •Future drill targeting will be assisted by the foreign and historic drilling | ||
| presented in this release and potentially enhanced with the flying of a | ||
| detailed aerial magnetic, radiometric and topographic survey |
10
Appendix 2. Corridor Central and South projects foreign and historic AC drill data
| HOLE_ID | UTM E (WGS84) |
UTM N (WGS84) |
EOH (m) | DIP | AZIMUT H |
FROM (m) |
TO (m) |
COMPLETE DH THM INTERSECT & AVERAGE SILT% |
|---|---|---|---|---|---|---|---|---|
| CS97 | 565300.88 | 7257634.27 | 48 | -90 | 360 | 0 | 48 | 48m @ 3.7% THM & 23.7% silt |
| CS98 | 565340.88 | 7256584.27 | 54 | -90 | 360 | 0 | 54 | 54m @ 4.0% THM & 24.7% silt |
| CS99 | 565280.88 | 7258534.27 | 40 | -90 | 360 | 0 | 40 | 40m @ 3.2% THM & 25.7% silt |
| CS100 | 564152.88 | 7257624.27 | 36 | -90 | 360 | 0 | 36 | 36m @ 5.2% THM & 26.6% silt |
| CS101 | 566140.88 | 7257834.27 | 63 | -90 | 360 | 0 | 63 | 63m @ 5.8% THM & 23.3% silt |
| CS102 | 567240.88 | 7257734.27 | 30 | -90 | 360 | 0 | 30 | 27m @ 4.7% THM & 27.6% silt |
| CS103 | 566140.88 | 7258734.27 | 48 | -90 | 360 | 0 | 48 | 48m @ 4.5% THM & 25.3% silt |
| CS108 | 566040.88 | 7256934.27 | 42 | -90 | 360 | 0 | 42 | 42m @ 4.4% THM & 24.4% silt |
| CSEX22 | 570274.87 | 7264338.3 | 93 | -90 | 360 | 0 | 93 | 93m @ 3.6% THM & 14.4% silt |
| CSEX23 | 572751.87 | 7264627.3 | 75 | -90 | 360 | 0 | 75 | 75m @ 3.4% THM & 18.9% silt |
| CSEX24 | 567842.87 | 7260696.3 | 90 | -90 | 360 | 0 | 90 | 54m @ 3.7% THM & 19.9% silt |
| CSEX25 | 567837.87 | 7262735.3 | 75 | -90 | 360 | 0 | 75 | 60m @ 4.6% THM & 16.6% silt |
| CSEX26 | 568455.87 | 7258924.3 | 81 | -90 | 360 | 0 | 81 | 69m @ 3.5% THM & 21.4% silt |
| CSEX27 | 569134.87 | 7257084.3 | 90 | -90 | 360 | 0 | 90 | 90m @ 3.5% THM & 19.9% silt |
| CSEX28 | 571120.87 | 7257577.3 | 90 | -90 | 360 | 0 | 90 | 66m @ 2.4% THM & 18.5% silt |
| CSEX30 | 566136.87 | 7254441.3 | 63 | -90 | 360 | 0 | 63 | 48m @ 4.4% THM & 25.2% silt |
| CSEX31 | 571595.87 | 7256858.3 | 75 | -90 | 360 | 0 | 75 | 30m @ 3.9% THM & 15.6% silt |
| CSEX32 | 570951.87 | 7253990.27 | 87 | -90 | 360 | 0 | 87 | 81m @ 3.6% THM & 24.6% silt |
| CSEX33 | 570533.87 | 7251442.27 | 81 | -90 | 360 | 0 | 81 | 30m @ 3.1% THM & 22.4% silt |
| CSEX34 | 569961.87 | 7253628.27 | 78 | -90 | 360 | 0 | 78 | 42m @ 3.4% THM & 22.4% silt |
| CSEX35 | 573945.87 | 7253020.27 | 78 | -90 | 360 | 0 | 78 | 18m @ 1.7% THM & 12.4% silt |
| CSEX36 | 573100.87 | 7249405.27 | 75 | -90 | 360 | 0 | 75 | 48m @ 4.5% THM & 21.3% silt |
| CSEX37 | 571890.87 | 7246045.27 | 75 | -90 | 360 | 0 | 75 | 42m @ 3.3% THM & 23.6% silt |
| CSEX38 | 570261.87 | 7246633.27 | 60 | -90 | 360 | 0 | 60 | 24m @ 3.1% THM & 14.9% silt |
| CSEX39 | 571227.87 | 7246739.27 | 60 | -90 | 360 | 0 | 60 | 42m @ 3.7% THM & 22.4% silt |
| CSEX40 | 574022.87 | 7245827.27 | 84 | -90 | 360 | 0 | 84 | 72m @ 3.5% THM & 22.7% silt |
| CSEX41 | 576371.87 | 7241827.27 | 87 | -90 | 360 | 0 | 87 | 87m @ 3.1% THM & 20.1% silt |
| CSEX42 | 574537.87 | 7244741.27 | 84 | -90 | 360 | 0 | 84 | 78m @ 3.0% THM & 19.0% silt |
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
| CSEX43 | 576863.87 | 7239129.27 | 78 | -90 | 360 | 0 | 78 | 60m @ 2.3% THM & 19.1% slit |
|---|---|---|---|---|---|---|---|---|
| CSEX44 | 578178.87 | 7236736.27 | 75 | -90 | 360 | 0 | 75 | 54m @ 2.7% THM & 15.3% silt |
| CSEX45 | 579063.87 | 7235162.27 | 78 | -90 | 360 | 0 | 78 | 78m @ 2.3% THM & 15.3% silt |
| CSEX46 | 580035.87 | 7233271.27 | 66 | -90 | 360 | 0 | 66 | 66m @ 2.1% THM & 13.5% silt |
| CSEX47 | 578879.87 | 7233235.27 | 63 | -90 | 360 | 0 | 63 | 30m @ 1.5% THM & 10.0% silt |
| CSEX48 | 580954.87 | 7234587.27 | 87 | -90 | 360 | 0 | 87 | 87m @ 3.1% THM & 15.0% silt |
| CSEX49 | 582313.87 | 7235879.27 | 87 | -90 | 360 | 0 | 87 | 87m @ 2.5% THM & 16.9% silt |
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
Appendix 3. Linhuane foreign and historic auger drill data
| HOLE_ID | UTM E (WGS84) |
UTM N (WGS84) |
EOH | DIP | AZIMUTH | FROM | TO | THM (%) | SLIMES (%) |
|---|---|---|---|---|---|---|---|---|---|
| M119 | 675335 | 7266218 | 6 | -90 | 360 | 0 | 6 | 1.0 | 11.3 |
| M120 | 675125 | 7267213 | 6 | -90 | 360 | 0 | 6 | 1.3 | 6.4 |
| M313 | 679804 | 7266897 | 6 | -90 | 360 | 0 | 6 | 1.3 | 12.1 |
| M314 | 679976 | 7267402 | 6 | -90 | 360 | 0 | 6 | 1.6 | 6.6 |
| M315 | 680129 | 7267902 | 6 | -90 | 360 | 0 | 6 | 2.3 | 5.6 |
| M316 | 680265 | 7268401 | 15 | -90 | 360 | 0 | 15 | 1.9 | 6.3 |
| M322 | 679780 | 7266560 | 9 | -90 | 360 | 0 | 9 | 0.9 | 10.9 |
| M324 | 679900 | 7265600 | 9 | -90 | 360 | 0 | 9 | 1.1 | 13.5 |
| LP1238 | 682506 | 7261660 | 6 | -90 | 360 | 0 | 6 | 3.1 | 2.2 |
| LP1239 | 682326 | 7262085 | 10.5 | -90 | 360 | 0 | 10.5 | 5.9 | 2.1 |
| LP1240 | 682162 | 7262578 | 10.5 | -90 | 360 | 0 | 10.5 | 2.2 | 6.6 |
| LP1241 | 682028 | 7263092 | 10.5 | -90 | 360 | 0 | 10.5 | 2.2 | 7.3 |
| LP1245 | 684372 | 7264286 | 10.5 | -90 | 360 | 0 | 10.5 | 2.7 | 6.6 |
| LP1246 | 684597 | 7263685 | 9 | -90 | 360 | 0 | 9 | 11.8 | 0.9 |
| LP1247 | 684729 | 7263201 | 10.5 | -90 | 360 | 0 | 10.5 | 4.4 | 4.0 |
| LP1248 | 684936 | 7262800 | 7.5 | -90 | 360 | 0 | 7.5 | 3.8 | 2.6 |
| LP1249 | 686590 | 7265212 | 10.5 | -90 | 360 | 0 | 10.5 | 2.7 | 6.8 |
| LP1250 | 686963 | 7264785 | 9 | -90 | 360 | 0 | 9 | 9.6 | 1.2 |
| LP1251 | 687306 | 7264112 | 10.5 | -90 | 360 | 0 | 10.5 | 7.7 | 1.2 |
| LP1252 | 689131 | 7264701 | 10.5 | -90 | 360 | 0 | 10.5 | 5.2 | 0.6 |
| LP1253 | 688946 | 7265161 | 6 | -90 | 360 | 0 | 6 | 7.1 | 1.1 |
| LP1254 | 688602 | 7265680 | 10.5 | -90 | 360 | 0 | 10.5 | 10.8 | 0.8 |
| LP1255 | 688197 | 7265634 | 10.5 | -90 | 360 | 0 | 10.5 | 15.8 | 0.7 |
| LP1256 | 691168 | 7265820 | 9 | -90 | 360 | 0 | 9 | 4.2 | 0.5 |
| LP1257 | 690898 | 7266226 | 9 | -90 | 360 | 0 | 9 | 5.6 | 0.9 |
| LP1258 | 690566 | 7266534 | 10.5 | -90 | 360 | 0 | 10.5 | 9.9 | 0.8 |
| LP1260 | 692928 | 7266709 | 7.5 | -90 | 360 | 0 | 7.5 | 4.6 | 0.6 |
| LP1261 | 692913 | 7267143 | 6 | -90 | 360 | 0 | 6 | 6.2 | 0.8 |
| LP1262 | 700133 | 7269672 | 10.5 | -90 | 360 | 0 | 10.5 | 7.0 | 0.6 |
| LP1264 | 697913 | 7268690 | 7.5 | -90 | 360 | 0 | 7.5 | 4.6 | 0.7 |
| LP1265 | 697540 | 7269248 | 10.5 | -90 | 360 | 0 | 10.5 | 8.2 | 1.3 |
| LP1266 | 695254 | 7267621 | 9 | -90 | 360 | 0 | 9 | 4.1 | 0.6 |
| LP1269 | 679764 | 7260600 | 10.5 | -90 | 360 | 0 | 10.5 | 7.1 | 5.6 |
| LP1270 | 679515 | 7261030 | 10.5 | -90 | 360 | 0 | 10.5 | 15.6 | 1.4 |
| LP1271 | 676984 | 7259583 | 10.5 | -90 | 360 | 0 | 10.5 | 4.4 | 5.7 |
| LP1272 | 676785 | 7260185 | 10.5 | -90 | 360 | 0 | 10.5 | 17.9 | 1.0 |
| LP1273 | 674004 | 7258566 | 10.5 | -90 | 360 | 0 | 10.5 | 5.5 | 2.4 |
| LP1274 | 673741 | 7259018 | 10.5 | -90 | 360 | 0 | 10.5 | 7.3 | 2.1 |
| LP1275 | 671250 | 7257679 | 10.5 | -90 | 360 | 0 | 10.5 | 2.2 | 6.2 |
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890
12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]
Appendix 4. Marao foreign and historic auger drill data
| HOLE_ID | UTM E (WGS84) |
UTM N (WGS84) |
EOH | DIP | AZIMUTH | FROM | TO | THM (%) | SLIMES (%) |
|---|---|---|---|---|---|---|---|---|---|
| MC383 | 597516 | 7291471 | 9 | -90 | 360 | 0 | 9 | 2.3 | 10.6 |
| MC384 | 597402 | 7292460 | 9 | -90 | 360 | 0 | 9 | 2.2 | 10.8 |
| MC385 | 597338 | 7293523 | 9 | -90 | 360 | 0 | 9 | 2.5 | 12.1 |
| MC386 | 597335 | 7294450 | 9 | -90 | 360 | 0 | 9 | 2.9 | 13.2 |
| MC387 | 597249 | 7295448 | 9 | -90 | 360 | 0 | 9 | 1.8 | 11.5 |
| MC388 | 597107 | 7296342 | 9 | -90 | 360 | 0 | 9 | 2.5 | 10.4 |
| MC389 | 596748 | 7295374 | 9 | -90 | 360 | 0 | 9 | 2.3 | 12.1 |
| MC390 | 597740 | 7295444 | 9 | -90 | 360 | 0 | 9 | 2.0 | 9.6 |
| MC391 | 596818 | 7297340 | 9 | -90 | 360 | 0 | 9 | 1.4 | 9.9 |
| MC392 | 596729 | 7298268 | 9 | -90 | 360 | 0 | 9 | 1.2 | 8.4 |
| MC394 | 598175 | 7297447 | 9 | -90 | 360 | 0 | 9 | 0.2 | 1.1 |
| MC406 | 604047 | 7306068 | 6 | -90 | 360 | 0 | 6 | 1.0 | 8.3 |
| MC407 | 604062 | 7305125 | 6 | -90 | 360 | 0 | 6 | 1.2 | 4.7 |
| MC408 | 604048 | 7304212 | 6 | -90 | 360 | 0 | 6 | 2.9 | 9.5 |
| MC410 | 604040 | 7302313 | 6 | -90 | 360 | 0 | 6 | 0.7 | 2.1 |
| MC418 | 605130 | 7301594 | 6 | -90 | 360 | 0 | 6 | 1.3 | 10.6 |
| MC419 | 605867 | 7302284 | 6 | -90 | 360 | 0 | 6 | 2.5 | 11.8 |
| MC420 | 606526 | 7302900 | 7.5 | -90 | 360 | 0 | 7.5 | 2.3 | 11.4 |
| MC421 | 607238 | 7303506 | 6 | -90 | 360 | 0 | 6 | 1.0 | 27.6 |
| MC422 | 608020 | 7304110 | 6 | -90 | 360 | 0 | 6 | 1.5 | 10.2 |
| MC423 | 608929 | 7304441 | 6 | -90 | 360 | 0 | 6 | 0.8 | 6.2 |
| MC440 | 594820 | 7291510 | 7.5 | -90 | 360 | 0 | 7.5 | 1.6 | 2.9 |
| MC441 | 593850 | 7291480 | 7.5 | -90 | 360 | 0 | 7.5 | 1.2 | 10.3 |
| MC442 | 592861 | 7291366 | 7.5 | -90 | 360 | 0 | 7.5 | 1.3 | 11.2 |
| MC443 | 591891 | 7291410 | 7.5 | -90 | 360 | 0 | 7.5 | 1.4 | 9.5 |
MRG Metals Limited ABN: 83 148 938 532 / ASX Code: MRQ Phone: +61 3 5330 5800 / Fax: +61 3 5330 5890 12 Anderson Street West, Ballarat VIC 3350 / PO Box 237 Ballarat VIC 3353 www.mrgmetals.com.au / [email protected]