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RUMBLE RESOURCES LIMITED Interim / Quarterly Report 2013
65736_rns_2013-07-30_f8c62a55-0f2e-417f-8f72-0824ad3e923a.pdf
Interim / Quarterly Report
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June 2013 Quarterly Activities Report
Highlights
- High priority Nickel and Copper target generated at newly acquired Fraser Range Project.
- Reprocessing of geophysical data highlights base metal potential at Leyland Project adjacent to Corazon Resources Ltd (ASX:CZN) Top Up Rise Project.
- Ground Geophysics at Derosa Project (Burkina Faso) confirms continuity between main artisanal sites.
- Rumble awarded $150k from the Government EIS grant to assist in drill testing the Kaos prospect which is a large 2.2km long airborne EM target.
Rumble Resources Ltd ("Rumble" or "the Company") is pleased to provide an update of the Company's activities. Rumble currently has 5 project areas in Western Australia and one in Burkina Faso, West Africa.
Rumble's activities for the quarter were focussed on the Derosa Project, a developing gold project in Burkina Faso, West Africa. Rumble also acquired an option to purchase a tenement in the Fraser Range region of WA and has been working through available data.
Primary Exploration Activities
Fraser Range Project West Australia (RTR option to purchase 100%)
Rumble announced during the quarter that it had acquired an option to purchase the
Fraser Range Project located within the highly prospective Fraser Complex of the Albany-Fraser Tectonic Zone.
The Fraser Range Project is prospective for sulphide Nickel and Copper mineralisation similar to the discovery of the Nova deposit just over 12 months ago by Sirius Resources Ltd (ASX: SIR).
Previous drilling on the Fraser Range Project consisted of 2 diamond drill holes completed by Teck Australia Pty Ltd (Teck) between 2007 and 2010 focussing on Cu-Au (IOCG style) mineralisation. The two diamond drill holes targeted a sub circular gravity anomaly and a magnetic anomaly (Figure 1). The exploration program did not identify IOCG style mineralisation and the project was relinquished. Of significance is that the exploration was completed prior to the recently discovered Nova Nickel Copper Massive Sulphide discovery by Sirius Resources NL.
Figure 1: Detailed view of Fraser Range Project with gravity target, Teck drill holes on airborne magnetic background.
Teck completed interpretation of the diamond drilling including geochemistry, petrographic studies and age dating of the various rock units. In reviewing this data, Rumble's technical team has identified that the previous exploration intersected metagabbro rock units which also host the Nova Nickel Copper discovery.
Rumble Resources Ltd
Suite 5, 26 Railway Road SUBIACO WA 6008
T +61 8 6555 3980
F +61 8 6555 3981
rumbleresources.com.au
ASX RTR
Executives & Management
Mr Shane Sikora CEO
Mr Terry Topping Executive Director
Mr Andrew McBain Non-executive Director
Mr Matthew Banks Non-executive Director
Mr Michael Smith Non-executive Director
Mr David Palumbo Company Secretary
Mr Andrew Jones Exploration Manager
Of importance is that the age dating of the rocks by the Geological Survey of WA (GSWA) suggests the metagabbro rock units at the Fraser Range Project are of a similar age to the Nova Discovery rock units.
Data supplied by the vendors has also included detailed airborne magnetics, two ground gravity surveys and regional geochemistry which will continue to be interpreted by the Rumble technical team.
The Rumble technical team has noted the second core hole drilled by Teck did not intersect the source of the gravity high anomaly and this will be a high priority target for further exploration which will include airborne and ground EM surveys, which are proven to be very effective at identifying massive sulphide bodies.
Leyland Project, Western Australia (RTR 100%)
Figure 2: Map showing Rumble's Prospective Gravity Features Figure 3: Map showing Rumble's Prospective Magnetic Features
In March 2013 Rumble applied for 3 tenements covering 1305 km² in the Gibson Desert region of Western Australia which is a large strategic holding adjacent to Corazon Mining Ltd's (ASX: CZN) Top Up Rise Project.
The Top Up Rise project is considered prospective for Olympic Dam/Prominent Hill style IOCG mineralisation and is one of the largest untested gravity anomalies in Australia, similar in size and more intense than the anomaly at Olympic Dam in South Australia.
Corazon recently announced that exploration is underway at Top Up Rise, with a ground gravity survey underway which will be followed-up with a maiden drilling program in April/May 2013.
Previous exploration in the area by BHP Billiton Limited (1996 to 1999) and more recently by Toro Energy Limited (ASX:TOE). Toro Energy completed rock chip sampling on an adjacent tenement, which returned significant Fe up to 56% along with rare earths up to 4% TRE and anomalous copper (639ppm) and uranium oxide (82ppm).
Recent reprocessing of gravity data for the region has indicated that a significant portion of Rumble's Leyland Project area is underlain by rocks that have an elevated gravity response. The Top Up Rise project gravity anomaly appears to sit along a northeast – southwest trending gravity ridge which extends into Rumble's Leyland Project at both the northern and southern ends. The elevated gravity response through the area suggests that underlying rock units may include mafic (amphibolite) and ultramafic rock types. The most significant gravity high on the Leyland Project is a circular feature of nearly 10km in diameter that is a possible intrusive body and is located in the northern project area on tenement E 80/4767 (see Figure 2).
The magnetics data also highlights a major regional fault structure that is adjacent to the main TUR Project gravity anomaly which is currently being drilled by Corazon. This North-Northeast trending fault structure runs through Rumble's
Exploration Licence application 80/4780 and has two significant magnetic highs along the fault that are a priority for further exploration (see Figure 3).
Rumble is continuing work on the geophysics data and progressing approvals for ground exploration.
Derosa Project, Burkina Faso, West Africa (RTR earning 75%, CAY 25%)
During the quarter Rumble through SEMS Exploration ("SEMS") a leading mineral exploration and mining consultancy company in West Africa, continued exploration at the Bompela artisanal area (which forms part of the Derosa Project).
The Company has completed extensive field mapping of the workings produced by the artisanal miners. This only covers a small portion of the major regional structure outlined in the regional magnetics.
Shears filled with quartz veins and chlorite was observed in the artisanal open pit. These veins and the granitoid stock are being targeted by the artisanal miners. The gold mineralisation at Bompela occurs as a vein stockwork developed in competent granodiorite and granite and is typical of granitoid- hosted gold deposits.
Figure 4: Derosa Project Tenement Map Photo 1: Open pit recently excavated at the main Bompela artisanal site
The gold mineralisation at the Bompela workings is contained in quartz veins and the alteration zones adjacent to the veins. Most of the quartz veins are hosted by granitoid with hydrothermal alteration around the veins appearing to have altered the white granite to a red, or dark pink, granite. Sulphidation with the addition of pyrite and chalcopyrite is also present. The extent of alteration from the veins is still to be tested.
This style of mineralisation is similar to that of many other granitoid-hosted gold deposits of the Eburnian age in West Africa (Ghana especially). Examples include Perseus Mining Ltd.'s Edikan mine (ASX: PRU) and Xtra-Gold Resources deposit at Kibi (TSX: XTG).
Ground Geophysics Survey
The result of field mapping shows that the area is widely covered by alluvium and laterite ridges and plateaus. Alluvium covers large parts of the area of interest which hide the structures undercover. The artisanal miners are only targeting the outcropping laterite hills. A program of ground magnetics has been completed to compliment this data set by providing detailed magnetic data in order to determine geological continuity under these areas of alluvial cover.
SEMS completed a high resolution ground magnetic orientation survey over their Bompela prospect. The survey area in the vicinity of Sissilé, Burkina Faso, measured 3km x 2.5km, and an accumulated 170 line km were surveyed.
Data was collected on a 50m line spacing with two GEMSYS GSM-19TW v7.0 Standard Proton magnetometers equipped with integrated GPS were used to survey the areas. The fully integrated GPS was used for pre-programming the way points for each line. Data processing of the ground magnetic data has allowed mapping of several new structural lineaments as well as determining continuity under cover areas of previously mapped geological features.
Essentially this means that the rock unit which is hosting gold at the Bompela artisanal site is likely to be continuous under the alluvial cover, making the areas in between and underneath the two artisanal sites highly prospective.
Figure 4: Image of ground magnetic survey with areasof artisanal gold mining shown and the initial area to be drill tested with aircore.
Next Steps Leading to a Maiden RC Drilling Program Underway
The mapping and sampling highlighted the potential of the Bompela area and helped develop the next stage of exploration. A staged program is now underway to ensure drill testing of the main artisanal and regional targets is fast tracked.
- Step 1. Conduct infill geochemical surveying to delineate targets and assist with understanding the structure of the mineralised zones. (Completed)
- Step 2. Undertake a ground magnetic survey over the main area of interest which will detect the magnetic differences in the amphibolites and granites and assist with targeting. (Completed)
- Step 3. Step out from the main artisanal areas with Aircore drilling to test beneath areas of alluvial cover
- Step 4. RC drilling to test for depth extensions
Beadell Project, Western Australia (RTR 80%, CXU 20%)
The Beadell Project is located 450km east of Newman in the Paterson Orogen of central north Western Australia. The Paterson Orogen is host to significant mineral deposits including the Telfer Gold Mine, Nifty Copper Mine and the Kintyre Uranium Deposit.
In December 2012, Rumble Resources Ltd completed a program of 16 RC drill holes, including 6 holes which had diamond tails. Five of the diamond holes were drilled at the Maxwell prospect and 1 was drilled at the Ninety Nine prospect for a total of 3,416 metres.
Rumble is continuing to review the geochemistry and will arrange detailed petrography to better determine mineral associations to help understand the style of mineralisation. The initial results indicate that Maxwell is a large system with Sedimentary Exhalative (SEDEX) characteristics. These results haven given the Company an indication that the Rudall Complex can host this style of mineralisation and has confirmed that the geophysics employed can locate these systems. Work is now being completed to enable Rumble to continue exploration of this significant sedimentary sequence for copper, lead and zinc mineralisation.
Figure 5: Beadell Prospects
During the quarter rumble was awarded $150k from the Government EIS grant to assist in drill testing the Kaos prospect which is a large 2.2km long airborne EM target.
Canegrass Project (RTR 90%), Western Australia
The Canegrass project consists of one granted exploration license, E29/783, located 100km north of Kalgoorlie and covering over 100km2 of greenstone belt. The geology is dominated by a sequence of mafic and ultramafic rocks with minor felsic rocks and metasediments. This sequence has been intruded by fine grained felsic porphyry dykes and quartz veins. The Canegrass Project is prospective for copper, gold, nickel and VHMS-style base metal mineralisation.
During the quarter Rumble completed a first pass auger geochemistry program with completed with assay results identifying an area with high copper anomalism (Peak 3,080ppm Cu), two areas of coincident Cu-Zn anomalism and an area with widespread low level gold anomalism.
In addition, elevated nickel and chrome values confirm Rumbles interpretation that the ultramafic sequence hosting nickel to the south extends into the project area over a strike length of at least 11km and it is also this mafic-ultramafic contact where gold is occurring to the south.
The auger geochemistry program is the first exploration undertaken by the Company at the project. Little previous exploration is recorded at Canegrass despite the presence of gold and nickel deposits and operating mines immediately to the south of the project area. Work completed by Rumble indicates that the ultramafic sequence hosting nickel to the south extends into the project area over a strike length of at least 11km and it is also this maficultramafic contact where gold is occurring to the south. The Canegrass Project is prospective for nickel, gold and VHMS-style base metal mineralisation.
Figure 1: Map showing tenement holdings at the Canegrass Project.
Ashburton Project Area (includes Paulsens South and Boolaloo), Western Australia
Paulsens South Project, Western Australia (RTR earning 75%, VMS 25%)
The Paulsens South Project consists of five granted exploration licences and one exploration licence application covering 91km2 of the Archaean to Proterozoic-aged Wyloo Dome located 150km northwest of Paraburdoo in Western Australia.
The Paulsens Gold Mine which is operated by Northern Star Resources (ASX: NST) and contains a Measured, Indicated and Inferred Mineral Resource of 2,306,000t at 4.3 g/t for 318,000oz gold and produced 80,000oz of gold in 2011 at an average grade of 7.9 g/t occurs on the Melrose Fault Zone 12km along strike from Rumble's E47/1765 exploration licence.
No exploration was completed during the quarter.
Boolaloo (RTR 80%; CXU 20%), Western Australia
The Boolaloo Project forms part of the larger Ashburton Project and covers rocks of the Proterozoic Ashburton Basin and the Boolaloo granite which is the most northerly extent of the Gascoyne complex. No exploration was completed during the quarter.
Other Exploration Activities
During the quarter the company completed a rationalisation of its current projects. A decision was made to relinquish the Kooline, Dooley Downs and Forrestania projects.
Corporate
During the quarter Mr Shane Sikora was appointed CEO of the company replacing Mr Andrew McBain. Mr McBain will remain a non-executive director and Mr Terry Topping continues as an Executive Director.
Mr Sikora is a founding member of the Rumble team and has been employed in the role of General Manager since early 2011. Along with Mr McBain, Mr Sikora has been instrumental in establishing Rumble including a successful listing of the Company in 2011 as well as advancing key projects and securing financial partners since that time.
As at June 30 2013, Rumble has $260k Cash, with additional current liquid investments held for sale and receivables valued in total at $270k totalling $530k cash and cash equivalents.
- ENDS -
For further information visit rumbleresources.com.au or contact [email protected].
Shane Sikora CEO
About Rumble Resources Ltd
Rumble Resources Ltd is an Australian based exploration company, officially admitted to the ASX on the 1st July 2011. Rumble was established with the aim of adding significant value to its current gold and base metal assets and will continue to look at mineral acquisition opportunities both in Australia and abroad.
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information compiled by Mr Terry Topping, who is a Member of the Australasian Institute of Mining & Metallurgy and the Australian Institute of Geoscientists. Mr Topping is a fulltime employee of Rumble Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Topping consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity
Rumble Resources Limited
| ABN | Quarter ended ("current quarter") |
|---|---|
| 74 148 214 260 | 30 June 2013 |
Consolidated statement of cash flows
| Current quarter | Year to date | ||
|---|---|---|---|
| Cash flows related to operating activities | $A'000 | (12 months)$A'000 | |
| 1.1 | Receipts from product sales and related debtors | - | - |
| 1.2 | Payments for(a) exploration and evaluation(b) development(c) production | (278)-- | (2,345)-- |
| 1.3 | (d) administrationDividends received | (152)- | (857)- |
| 1.41.51.6 | Interest and other items of a similar nature receivedInterest and other costs of finance paidIncome taxes paid | 2-- | 37-- |
| 1.7 | Other – grant income | - | 132 |
| Net Operating Cash Flows | (428) | (3,033) | |
| 1.8 | Cash flows related to investing activitiesPayment for purchases of:(a)prospects | (107) | (414) |
| (b)equity investments(c)other fixed assets | -- | (125)(44) | |
| 1.9 | Proceeds from sale of:(a)prospects(b)equity investments(c)other fixed assets | -(100)- | -130- |
| 1.101.111.12 | Loans to other entitiesLoans repaid by other entitiesOther - rental bond | --- | -85- |
| Net investing cash flows | (207) | (368) | |
| 1.13 | Total operating and investing cash flows (carriedforward) | (635) | (3,401) |
+ See chapter 19 for defined terms.
| 1.13 | Total operating and investing cash flows (broughtforward) | (635) | (3,401) |
|---|---|---|---|
| Cash flows related to financing activities | |||
| 1.14 | Proceeds from issues of shares, options, etc. | 442 | 2,199 |
| 1.15 | Proceeds from sale of forfeited shares | - | - |
| 1.16 | Proceeds from borrowings | - | - |
| 1.17 | Repayment of borrowings | - | - |
| 1.18 | Dividends paid | - | - |
| 1.19 | Other – proceeds for intended issue of securities | - | - |
| return of proceeds | - | - | |
| proceeds for convertible note | - | - | |
| 1.20 | Other – costs of share issues | (26) | (161) |
| Net financing cash flows | 416 | 2,038 | |
| Net increase (decrease) in cash held | (219) | (1,363) | |
| 1.20 | Cash at beginning of quarter/year to date | 478 | 1,622 |
| 1.21 | Exchange rate adjustments to item 1.20 | - | - |
| 1.22 | Cash at end of quarter | 259 | 259 |
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
| Current quarter$A'000 | ||
|---|---|---|
| 1.23 | Aggregate amount of payments to the parties included in item 1.2 | 154 |
| 1.24 | Aggregate amount of loans to the parties included in item 1.10 | - |
1.25 Explanation necessary for an understanding of the transactions
1.23 includes director's fees and salaries for executive and non-executive directors
Non-cash financing and investing activities
- 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
- 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
+ See chapter 19 for defined terms.
Financing facilities available
Add notes as necessary for an understanding of the position.
| Amount available$A'000 | Amount used$A'000 | ||
|---|---|---|---|
| 3.1 | Loan facilities | - | - |
| 3.2 | Credit standby arrangements | - | - |
Estimated cash outflows for next quarter
| $A'000 | ||
|---|---|---|
| 4.1 | Exploration and evaluation | 300 |
| 4.2 | Development | - |
| 4.3 | Production | - |
| 4.4 | Administration | 125 |
| Total | 425 |
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows. | Current quarter$A'000 | Previous quarter$A'000 | |
|---|---|---|---|
| 5.1 | Cash on hand and at bank | 206 | 426 |
| 5.2 | Deposits at call | 53 | 52 |
| 5.3 | Bank overdraft | - | - |
| 5.4 | Other – proceeds for intended issue of securities | - | - |
| Total: cash at end of quarter (item 1.22) | 259 | 478 |
Changes in interests in mining tenements
| Tenement | Nature of interest | Interest at | Interest at | ||
|---|---|---|---|---|---|
| reference | (note (2)) | beginning | end of | ||
| of quarter | quarter | ||||
| 6.1 | Interests in mining | E45/2406 | 80% | - | |
| tenements relinquished, | E08/1756 | 80% | - | ||
| reduced or lapsed | E77/1513 | 100% | - | ||
| E77/1514 | 100% | - | |||
| E77/1635 | 100% | - | |||
| E08/2309 | 100% | - | |||
| 6.2 | Interests in mining | E08/2256 | - | 100% | |
| tenements acquired or | |||||
| increased | |||||
+ See chapter 19 for defined terms.
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
| Total number | Number quoted | Issuepriceper | Amount paid up per | ||
|---|---|---|---|---|---|
| security (see note | security (see note 3) | ||||
| 3) (cents) | (cents) | ||||
| 7.1 | Preference | ||||
| +securities | |||||
| (description) | |||||
| 7.2 | Changes during | ||||
| quarter | |||||
| (a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| through returns | |||||
| of capital, buy | |||||
| backs, | |||||
| redemptions | |||||
| 7.3 | +Ordinary | 52,178,361 | 52,178,361 | ||
| securities | |||||
| 7.4 | Changes during | ||||
| quarter(a) Increases | |||||
| through issues | 9,824,358 | 9,824,358 | |||
| (b) Decreases | |||||
| through returns | |||||
| of capital, buy | |||||
| backs | |||||
| (c) Release from | - | 7,700,000 | |||
| escrow | |||||
| 7.5 | +Convertible | ||||
| debt securities | |||||
| (description) | |||||
| 7.6 | Changes during | ||||
| quarter | |||||
| (a) Increases | |||||
| through issues | |||||
| (b) Decreases | |||||
| throughsecurities | |||||
| matured, | |||||
| converted | |||||
| 7.7 | Options | Exercise price | Expiry date | ||
| (description and | 4,912,184 | 4,912,184 | 8 cents | 30 June 2015 | |
| conversion | 6,600,000 | - | 25 cents | 31 July 2014 | |
| factor) | 12,258,333 | 12,258,333 | 25 cents | 31 July 2014 | |
| 6,926,996 | 6,926,996 | 35 cents | 31 October 2015 | ||
| 3,600,000 | - | 35 cents | 31 October 2015 | ||
| 4,500,000 | - | 45 cents | 31 October 2015 | ||
| 7.8 | Issued during | 4,912,184 | 4,912,184 | 8 cents | 30 June 2015 |
| quarter | |||||
| 7.9 | Exercised during | ||||
| quarter | |||||
| 7.10 | Expired during | ||||
| quarter | |||||
| 7.11 | Debentures(totals only) |
+ See chapter 19 for defined terms.
7.12 Unsecured notes (totals only)
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
2 This statement does give a true and fair view of the matters disclosed.
(Director)
Sign here: Andrew McBain Date: 31 July 2013
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities*.*
4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
== == == == ==
+ See chapter 19 for defined terms.