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VIKING MINES LIMITED — M&A Activity 2020
Nov 25, 2020
66007_rns_2020-11-25_1df716e7-b103-41ee-8d1e-98cf6a79ff08.pdf
M&A Activity
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26 November 2020
ACQUISITION OF HIGH-GRADE GOLD PROJECTS IN EASTERN GOLDFIELDS
OF WESTERN AUSTRALIA
ANNOUNCEMENT HIGHLIGHTS:
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Viking Mines Ltd ( ASX: VKA ) has entered into a conditional agreement to acquire 100% of Red Dirt Mining Pty Ltd ( Red Dirt ) the owner of the First Hit high grade gold exploration and development projects in Western Australia.
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The First Hit projects encompass the historical First Hit Mine and numerous advanced exploration targets , each with the potential to be repeats of the First Hit Mine as no mining or exploration has been undertaken on the project for ~ 18 years.
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First Hit is located 45km west of Menzies in the Eastern Goldfields , along the Mt Ida greenstone belt and northern extensions of the Zuleika shear zone.
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Gold mineralisation is confirmed to extend above, below and laterally adjacent of the historical resource providing the opportunity for expansion.
Intercepts[1] below the existing resource:
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4.9m @ 64.8 g/t Au from 62.1m (FHU045)
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3.7m @ 22.2 g/t Au from 64.3m (FHU058)
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4.5m @ 10.00 g/t Au from 55.8m (FHU055)
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3m @ 9.3 g/t Au from 273.0m (BFH114)
Intercepts laterally adjacent to historical resource:
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3m @ 77.6 g/t Au from 224.0m (BFH030)
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1m @ 66.7g/t Au from 164.0m (BFH074)
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1m @ 15.40 g/t Au from 255.0m (BFH115)
Intercepts above the mined workings include:
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4m @ 26.1 g/t Au from 58.0m (un-stoped area) (BFH005)
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2m @ 13.1 g/t Au from 27.0m (above the highest mined level) (BFH064)
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2m @ 5.1 g/t Au from 18.0m (near surface splay) (BFH096)
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4m @ 2.3 g/t Au from 38.0m (near surface splay) (BFH103)
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Production ceased due to gold price of sub US$325oz, cash cost at closure sub US$345oz
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First Hit mine operated 2001/2002, producing 30,830 oz Au[2] .
1 See Appendix 1 details of drill intersections and Appendix 2 JORC Table 1
2 Barra Resources Limited (2002), First Hit Mining Report December 2002 (Final Report) M30/99; Report No. BRLP 00107. Submitted to DMIRS
1
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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The Company believes that the remaining First Hit mineralisation that was initially mined in 2001/2002 is an excellent indication of the potential to identify extensions to the primary mineralised gold bearing structures.
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Vein-hosted with thickness up to 10m, and typically 1-4m wide .
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Gold mineralisation is hosted in simple quartz veins +/- minor sulphides with historical metallurgical process plant recoveries of 94.1%[3] .
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100% owned projects and granted Mining Lease valid until 2032 .
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The First Hit mine is within 50km of Ora Banda Mining’s Davyhurst Mill with up to 6 mills in relative proximity .
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Existing infrastructure for the project may potentially offer cost and time savings when recommencing production at the mine.
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Prior approvals and studies undertaken in 2001 for historical mining operations:
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Archaeological & Ethnological studies
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Ground Water, Soil & Environmental studies
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Fauna, Flora, and Heritage Surveys
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Exploration currently being designed to commence post completion of the transaction.
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The First Hit underground gold mine was only mined to ~220m below surface with a historical estimate that was reported in accordance with the 1999 JORC Code as a Measured Mineral Resource and subsequently as a diluted mineable reserve. The Company intends to review the data, complete additional exploration and provide updated disclosure in accordance with the 2012 JORC Code.
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Outside of the existing mine area, numerous clearly defined exploration targets are defined by historical data sets but are untested by modern exploration techniques.
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Additional exploration activities to advance these key exploration targets include close spaced aeromagnetic surveys, modern infill geochemistry and spectral analysis for drill target definition.
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Viking has received firm and binding commitments in a placement to sophisticated and professional investors, raising $750,000 at $0.01c per fully paid ordinary share. This raising will provide working capital to progress the Red Dirt Mining projects and shares will be issued in two tranches: Tranche 1 will be issued within 7 days and Tranche 2 will be issued subject to shareholder approval which will be sought at an extraordinary general meeting of the Company.
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In conjunction with the Capital Raising, the Company will be undertaking a rights issue to existing shareholders to raise $784,294.64 at a price of $0.01c per fully paid ordinary share (“Rights Issue”). The Rights Issue will be offered to existing shareholders (not including those participating in the placement referred to above) on a 1:4 basis.
3 Barra Resources Limited, ‘Second Quarter Activities & Cashflow Report’; ASX Announcement, 31 January 2003
(https://www.asx.com.au/asxpdf/20030131/pdf/00342277.pdf).
2
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Viking Mines Limited (ASX:VKA) (“Viking” or “the Company”) is pleased to announce that it has entered into a conditional agreement to acquire 100% of Red Dirt Mining Pty Ltd (“RD”), the owner of the First Hit high grade exploration and development projects. The First Hit project encompasses the historical First Hit Mine and 5 defined exploration targets, each with the potential to be repeats of First Hit.
The proposed acquisition supports the Company’s focus on high grade gold exploration in favourable mining jurisdictions. The First Hit acquisition is strategically aligned to the Company’s “business model” to identify and explore high grade gold projects with the potential to host significant resources.
The First Hit Mine was a historical underground operation commencing in the 1930s. It was subsequently redeveloped and mined by Barra Resources and Barminco between 2001 and 2002 via a decline extending to a depth of 180m below the box cut entrance. Prior to the commencement of operations in 2001, a Measured Mineral Resource of 180,000 tonnes grading @ 23.6g/t Au was reported in accordance with the 1999 JORC Code.[4] Barra Resources outlined a plan to mine 176,800 tonnes at 13.4 g/t Au[5] (also reported in accordance with the 1999 edition of the JORC Code; however production was reported to have been limited to 30,830oz attributed at the time to have been due to the depressed gold price of sub US$325oz and excessive dilution from utilizing fully mechanized mining activities).
In relation to the Barra 2001/2002 estimates provided above, the Company notes the following:
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the estimates of Mineral Resources or Ore Reserves are not reported in accordance with the JORC Code 2012;
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a Competent Person has not done sufficient work to classify the estimates of Mineral Resources or Ore Reserves in accordance with the JORC Code 2012;
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it is possible that following evaluation and/or further exploration work the currently reported estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2012;
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that nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the former owner’s estimates; but
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the Company has not independently validated the former owner’s estimates and therefore is not to be regarded as reporting, adopting or endorsing those estimates.
The First Hit mine and tenements are in the Mt Ida greenstone belt between the Kalgoorlie Terrane of the Eastern Goldfields Province and the Barlee Domain of the Southern Cross Province. The greenstone boundaries are defined by the crustal-scale Ida Lineament to the west and the northern extension of the Zuleika Shear to the east. The mineralisation within the First project mine and related anomalism are potentially related to splays emanating from these major shear zones (Figure 1). Subject to validation of Red Dirt’s proposed exploration program, it is Viking Mines’ intention to commence field operation in December 2020.
4 Barra Resources Limited, ‘Second Quarter Activities & Cashflow Report’; ASX Announcement, 29 January 2001 (see attached). 5 Barra Resources Limited, Third Quarter Activities & Cashflow Report’; ASX Announcement, 27 April 2001 (see attached).
3
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Figure 1: First Hit Gold Project location plan and regional geological setting[ 6]
6 Davyhurst plant capacity cited from Ora Banda September 2020 Quarterly Activities Report
4
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Initially drill programs will be planned to target unmined shallow and depth extensions to the mineralisation as well as the potential for lateral extensions (Figure 2 , Figure 3 and Figure 4). The potential for these areas is outlined by the historic drill intersections of unmined areas including.
Intercepts[7] below the existing resource:
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4.9m @ 64.8 g/t Au from 62.1m (FHU045)
-
3.7m @ 22.2 g/t Au from 64.3m (FHU058)
-
4.5m @ 10.00 g/t Au from 55.8m (FHU055)
-
3m @ 9.3 g/t Au from 273.0m (BFH114)
Intercepts laterally adjacent to historical resource:
-
3m @ 77.6 g/t Au from 224.0m (BFH030)
-
1m @ 66.7g/t Au from 164.0m (BFH074)
-
1m @ 15.40 g/t Au from 255.0m (BFH115)
-
Intercepts above the mined workings include:
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4m @ 26.1 g/t Au from 58.0m (un-stoped area) (BFH005)
-
2m @ 13.1 g/t Au from 27.0m (above the highest mined level) (BFH064)
-
2m @ 5.1 g/t Au from 18.0m (near surface splay) (BFH096)
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4m @ 2.3 g/t Au from 38.0m (near surface splay) (BFH103)
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Figure 2: First Hit Mine showing target areas above the mined out areas (A) and adjacent to, and below the existing mined areas (B) and simplified interpreted mineralisation.
7 Appendix 1: details of drill intersections and Appendix 2: JORC Table 1
5
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Figure 3: Unmined drill intersections near surface with interpreted mineralisation
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Figure 4: Drill Intersections below and peripheral to the mined workings.
6
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Based on successful drill confirmation of the strike, shallow and depth extensions to known mineralisation, the Company will evaluate the economics of the First Hit high-grade underground gold mine that is located within an advantageous trucking distance to active gold processing plants within the highly sought after and highly prospective Eastern Goldfields Province of the Western Australian Yilgarn Craton. The high-grade nature of the First Hit deposit significantly enhances the economic viability of a mining operation with the historical cash cost at closure being sub US$345oz.
PROJECT AREA
First Hit is situated approximately 45km west of the town of Menzies in Western Australia. The project area is strategically being within 50km of Ora Banda Mining’s Davyhurst Mill with 6 additional mills in relative proximity. Access to the project is via an all-weather road maintained by the Shire of Menzies.
First Hit lies on the northern end of the strike extensive Ida Fault, host to significant gold mineralisation along its strike including Bullabulling (3.2Moz)[8] , Mt Ida (571,000oz)[9] , the Davyhurst Mining Centre (2Moz)[10] , containing the Mulline (249,000oz)[11] and Riverina (322,000oz)[12] gold mines.
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Figure 5: Red Dirt Projects – M30/0099, M30/0091, P30/1125, P30/1144 & P30/1137
PROJECT BACKGROUND
Barminco Pty Ltd (Barminco) was the first modern operator of First Hit acquiring the project in 1996.
8 https://www.proactiveinvestors.com/companies/news/33256/ggg-resources-upgrades-bullabulling-gold-resource-to-32-mln-ounce-update-39608.html
9 https://smallcaps.com.au/alt-resources-receives-takeover-offer-private-investment-group/
10 https://kalkinemedia.com/au/ora-banda-mining-ltd-asxobm/ora-banda-minings-investor-presentation-recaptures-accomplishments-at-davyhurst-gold-project
11 https://www.orabandamining.com.au/projects/riverina/
12 https://www.mining-journal.com/gold-and-silver-news/news/1388480/riverina-resources-growing-for-ora-banda
7
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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After entering a strategic alliance with Barra Resources Ltd ( Barra ), Barminco and Barra undertook exploration drilling of the First Hit area in the late 1990s and continued to drill in and around the First Hit shear during their mining campaign between 2000-2002. Under their strategic alliance, Barminco acted as the underground mining contractor and were responsible for the transport & milling of the ore in its plant in Coolgardie.
The underground mining between 2000-2002 drove the decline to 200m below surface to access the First Hit orebody. Milling was completed through Barminco’s Greenfields mill at Coolgardie. Mill reconciliations reported good gold recoveries at 94.1%.
Operations terminated due to the prevailing gold price at the time operations were suspended. In the Barra Resources 2003 Annual Report[13] , they state that the suspension of mining operations has been undertaken in such a way that any future decision to recommence underground activities can be achieved in an orderly and cost-efficient manner.
INFRASTRUCTURE AND PRIOR APPROVALS & PERMITTING
Significant development infrastructure is present at the First Hit mine which potentially reduces the cost and time to re-commence production in the event of establishing a new mining operation. In December 2002 Barra Resources Limited ceased mining with development drives in place for extraction of gold mineralised material[14] . Mineralisation intercepted by drilling in the Evans lode and on a hangingwall splay beyond the last oredrive, based on underground drilling completed by Barra Resources towards the end of the operation.
The key infrastructure items include the following:
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Box cut
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Ventilation shaft
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1550m of 5.5m x 5.0m diameter decline
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Ore drives
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Development of raise bore, escapeways as required for mine safety
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Waste dump
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Water bores
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Haul & access roads
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Fuel storage facility
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Workshop area and mine office cement pads
Surface infrastructure has been inspected by VKA personal in November 2020 and are in good condition. The underground infrastructure will be inspected once dewatering has been completed.
13 Barra Resources Limited, ‘Annual Report 2003’; ASX Announcement, 27 October 2003 (https://www.asx.com.au/asxpdf/20031027/pdf/3jj2ftr025p0t.pdf)
14 Barra Resources Limited (2002), First Hit Mining Report December 2002 (Final Report) M30/99; Report No. BRLP 00107. Submitted to DMIRS
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Figure 6: Historical infrastructure at site that relates to previous mining operation
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Figure 7: Aerial view of boxcut (circled) for entry to underground and the historical mining infrastructure across the First Hit Mining Project location
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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GEOLOGY[15]
Regional Geology
The First Hit project area covers part of the Mount Ida greenstone belt which is a north striking belt of predominantly metamorphosed (upper greenschist- amphibolite facies) mafic and ultramafic rocks, which form the western boundary of the Eastern Goldfields geological terrane. The major structure in this belt is the Ida Fault, a deep mantle tapping crustal suture that trends north and dips to the east. It marks the western boundary of the Kalgoorlie Terrane (~2.7 Ga) of the Eastern Goldfields Province against the Barlee Terrane (~3.0 Ga) of the Southern Cross Province to the west. To the east the belt is bounded by the Ballard fault, a continuation of the strike extensive Zulieka shear.
Local Geology
The First Hit Mine is contained within a sequence of meta-basalts with minor intercalations of metasediments sandwiched between ultramafic rocks. All rocks display a northerly strike with near vertical dipping foliation throughout. Shear zones within the rock sequences are common and, where intense, they have been referred to as mylonite zones. The local geology within the First Hit Project area is dominated by relatively thin ultramafic units within a broad terrane of high magnesian basalt. A large proportion of the project area is covered by colluvium, alluvium, and laterite.
Numerous smaller gold occurrences are present within the project area and are intimately related to the structural geology of the area. Most gold mineralisation occurs in faults and fractures displaying brittle characteristics and occasionally in more ductile shear structures that coincide with north-striking ultramafic rocks.
Historical gold production in the greater area is approximately 80,000 ounces[16] with the majority coming from the Riverina and First Hit deposits. The mineralisation exploited to date has typically been narrow mesothermal anastomosing veins. These frequently have strike and dip dimensions able to sustain high-grade mining operations
The First Hit Gold Mine is hosted by a relatively thick north-northeast trending, steep-dipping massive meta-basalt unit, that is bounded to the east and west by ultramafic rocks. The meta- basalt unit is fine to medium-grained and has been partially overprinted by regional carbonate alteration away from the ore zone. This unit displays a weak to moderate foliation in places and has been intruded by numerous dolerite, intermediate, and felsic dykes. Both the dolerite and intermediate dykes occur as small discontinuous randomly oriented intrusions.
Several intermediate intrusives have been identified within the mine workings. These intermediate rocks are medium-grained, variably deformed, and generally composed of anhedral felspar phenocrysts within a quartz-biotite matrix (near the ore zone). Minor pyrrhotite, pyrite, and chalcopyrite are also common in this rock. Away from the ore zone these intermediate rocks generally display a quartz chlorite-amphibole matrix. The intermediate rocks observed within the mine sequence do not appear to host ore-grade mineralisation. Mineralisation typically thins out prior to intersecting the intermediate rocks and the mineralised structure continues as shear-only.
Gold mineralisation at First Hit occurs as a silica lode varying from 1m to 4m in thickness within a north-northeast trending shear zone. This gold mineralisation is hosted within a biotite- carbonatesilica hornblende schist within the meta-basalt. Higher-grade gold assays are associated with greenish quartz, diopside, pyrite, pyrrhotite, chalcopyrite, and visible gold.
15 Barra Resources Annual Technical Report: 1 July 2001 – 30 June 2002 Exploration Licence E30/193, Mining Lease M30/99, Mining Lease M30/118,
Prospecting Licence P30/869, Prospecting Licence P30/894
16 Spectrum Metals Limited Annual Report: 27th March 2019 to 26th March 2020: C61_2016_A2020_MM Annual Report
10
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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The First Hit deposit consists of two continuous and steep dipping ore shoots hosted within the shear zone. The main ore shoot is the Evans Lode whilst a smaller shoot to the north is the Kylies Lode. The Evans and Kylies Lodes are controlled by two separate structures named the Evans and Kylies Shears. The main or most pervasive shear is the Kylies Shear. This shear is generally oxidised in the mine area and most commonly hosts the Kylies Lode at or near its hanging-wall contact. In the southern half of the mine area the Evans Shear splays off the footwall of the Kylies Shear. The Evans Shear hosts the Evans Lode at its hanging-wall contact. Mining has also identified a third ore shoot named the CrossLode which is situated near the southern end of the mine. This lode is positioned between the Evans and Kylies Shears and forms a cross-link between these two structures.
Technical & Data Study
VKA is currently working with CSA Global on undertaking a detailed technical study of the historical mining operation, and structural re-model of the lode structure within the First Hit mine area and along strike to the north and south. Detailed modelling of the high-grade lode structures will enable an analysis of the occurrence of high grades from the drilling compared to the dip of the structure and the NNW striking faults. In general, high grade intersections from the historical drilling will be correlated with shallower dips on the First Hit structure, outlining the upside resource potential. Analysis of the additional mineralised splay structures are apparent and may also be important for delineating additional gold ounces.
It has already been interpreted that structural repeats of the high grade First Hit mineralisation may exist along strike at shallow levels and drill testing will be a priority focus for the Company. The technical analysis is focused around developing future programs of work to test for potential structural repeats of the First Hit mineralisation in what is a poorly drilled area to the south and at the site of an interpreted change in the orientation of the First Hit Shear, approximately 500m north of the underground portal.
Key analysis and next steps;
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Data review and modelling to highlight the relationship between changes in orientation in the shear structure that host the high grade First Hit gold mineralisation and defining further high-grade gold through additional drilling.
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Finalisation of an exploration model that and can be used as a predictive tool for structural thickening of the underground structure that will give rise to economic accumulations of gold mineralisation. Further interpretive work to be completed on the footwall structure found late in the mining campaign by Barra-Barminco as a pre-cursor to consideration of further drilling and re-establishment of mining operations.
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Review of historical surface exploration data sets to dovetail into a comprehensive drill program across the tenement package.
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Review of historical geophysical surveys and anomalous geochemistry to identify changes in orientation of the First Hit shear structure and confirm targets based on the coincidental geochemistry and structural flexures identified in the preliminary analysis.
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Finalisation of a multi-stage drilling program designed to grow underground resources and test for structural repeats of the First Hit mineralised structure north and south along strike.
11
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Data Verification
Historically Barra Resources planned to mine 176,800 tonnes at 13.4 g/t Au and technical work was prepared in accordance with JORC Code 1999. Subsequently, new studies would be required to define Pre-Feasibility or Feasibility level work in accordance with the 2012 edition of the JORC Code. VKA will undertake the appropriate level of study to report an Ore Reserve under JORC Code 2012, and in the interim considers that the Barra estimates from 2002 to be largely indicative of significant mineralisation potential at depth.
Reviews by VKA suggest that the Barra 2001/2002 estimate did not include a top cut and this may have an effect upon the resource estimate. Contemporary best practice would require that the assays be examined statistically, and appropriate top cuts applied to restrict the influence of very high grades on estimation. Further, the 2001/2002 initial mineral resource estimates were based on ID2 estimation techniques, which can misinterpret the metal content when drillholes are too far apart to adequately define the continuity of high-grade mineralisation. Contemporary estimation techniques such as ordinary kriging are more effective for modelling the variation of grade distributions in different orientations in three-dimensional space, restricting the influence of high grade mineralisation.
The 2001/2002 ID2 estimates are considered to be less effective for estimating volumes, compared to cotemporary algorithmic volumetric analysis, particularly in a narrow vein high grade environment. This may also have contributed to a degree of overvaluation in the proposed stope production volumes in the 2001/2002 mine plan.
The resource was updated in 2001 after drill spacing was increased to 20m x 20m. This mining reserve was reported to the ASX in the Barra Resources Limited March Quarterly Report 2001 (ASX report attached below). A further update with additional drilling was updated in September 2001. The data parameters used are described in the Compliance with ASX Listing Rules section below.
Regarding production costs, the large difference in the gold price (approximately <US$325/oz in 2001/2002 compared to approximately US$1,870 today) materially changes the economics for the First Hit project. Economic considerations that VKA will need to evaluate include gold price and contemporary costs for (but are not limited to):
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Fuel;
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Labour;
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underground mining:
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dilution;
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minimum widths;
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considerations for treatment of included Inferred Mineral Resources,
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ventilation;
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dewatering;
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geotechnical studies;
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metallurgical recoveries & deleterious elements;
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processing;
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management of tailings, and tailing storage facilities;
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refurbishing existing plant and infrastructure;
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the purchase of new replacement plant and infrastructure;
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financial considerations:
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project financing;
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exchange rates;
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forwards sales;
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royalties;
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smelter charges and agreements, and
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social and environmental issues which may have changed since 2001/2002.
12
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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The primary focus for VKA in the short-term however, is to complete sufficient exploration to allow the Company to evaluate the extensional potential indicated by the Barra 2001/2002 estimates, as discussed in more detail further in this announcement. VKA then plans to review the existing estimates in conjunction with the new exploration data, with a view to being able to quantify, classify and report Mineral Resources in accordance with the JORC Code, and once that has been achieved to then investigate the potential to be able to define Ore Reserves.
The evaluation and exploration work is expected to occur over the coming months upon the successful completion of the transaction; with Mineral Resource and Ore Reserve estimation to follow, depending on the outcome of the exploration and evaluation programmes.
Key Commercial Terms of the Proposed Acquisition
Under a conditional share sale and purchase agreement (“VKA-RD Agreement”), the Company has agreed to purchase 100% of the issued capital of RD by the issue of a total of 410,000,000 fully paid ordinary shares in the capital of the Company (“VKA Shares”) to RD shareholders (all of whom are unrelated and non-associated parties) and 85,000,000 performance shares in VKA (“Performance Shares”) to the shareholders of RD (“Vendors”), which shall vest and convert into VKA Shares on a one-for-one basis, subject to achievement of one of the Agreed Milestones.
The Performance Shares will each vest and convert into fully paid ordinary shares on a one for one basis upon completion of one of the following milestones:
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(A) 200koz inferred resource at above 4g/t underground or 2g/t open pit combined calculated (for both underground or open pit combined) at a cut-off of 0.5g/t;
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(B) Undertaking 5000m of drilling on the project with 6 holes of more than 8g/t over 3 metres each;
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(C) Establishment of a toll treatment or ore production agreement with a mill within 180km of project; and
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(D) Completion of a feasibility study with an NPV of not less than $50m using discount rate of 10%.
The Performance Shares have an expiry date of five years from the date of issue.
The issue of Performance Shares remains subject to confirmation from ASX that their terms comply with Listing Rule 6.1.
The table below outlines the portion of VKA Shares and Performance Shares to be issued to the Vendors, each a non-associated entity of the Company, pursuant to the VKA-RD Agreement:
| Vendor | % interest in Red Dirt | Number of VKA Shares | Number of Performance Shares |
|---|---|---|---|
| ING Investment Fund PtyLtd |
23% | 94,300,000 | 19,550,000 |
| Vanguard Superannuation PtyLtd |
23% | 94,300,000 | 19,550,000 |
| Advantage Ventures PtyLtd |
14% | 57,400,000 | 11,900,000 |
| Janatar PtyLtd | 10% | 41,000,000 | 8,500,000 |
| Lilka Enterprises PtyLtd | 10% | 41,000,000 | 8,500,000 |
| Principal Global Investments PtyLtd |
10% | 41,000,000 | 8,500,000 |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Titus Investments (WA) PtyLtd |
10% | 41,000,000 | 8,500,000 |
|---|---|---|---|
| TOTAL | 100% | 410,000,000 | 85,000,000 |
Completion of the Proposed Acquisition is subject to various conditions, including:
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all conditions to the VKA-RD Agreement being satisfied or waived;
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raising a minimum of $1,500,000 in aggregate under the Placement and Rights Issue;
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the Company obtaining all required regulatory approvals to complete the acquisition of RD, including but not limited to obtaining all required shareholder approvals under Listing Rule 7.1 and LR 11.1.2 in respect of the issue of the VKA Shares; and
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there being no material adverse change or material breach of warranty prior to completion of the VKA-RD Agreement.
The Company has agreed to issue 33,000,000 fully paid ordinary shares in the Company to GTT Ventures Pty Ltd (or its nominee) being a party associated with a Director of VKA, Mr Charles Thomas, as consideration for the provision of advisory services to the Company in respect of its proposed acquisition of RD, to be issued on, and subject to, completion of the VKA-RD Agreement. The Company intends to seek shareholder approval for the issue the shares.
The Proposed Acquisition will complete within 5 business days of receiving shareholder approval at an extraordinary general meeting of shareholders for each of the resolutions contemplated by the VKA/RD Agreement.
Capital Raising
Viking has received firm and binding commitments via a placement to sophisticated and professional investors, raising $750,000 at $0.01c per fully paid ordinary share which will result in the issue of a further 75,000,000 fully paid ordinary shares in the capital of the Company (“Placement”). The Placement shares will be issued in two tranches: Tranche 1 will be issued within 7 days and comprise 47,057,678 shares utilising the Company’s available capacity under Listing Rule 7.1 and Tranche 2 will be issued subject to shareholder approval and will comprise 27,942,322 shares. The Company intends to use the funds raised under the Placement to provide working capital to progress the RD projects.
In conjunction with the Placement, the Company is also undertaking a rights issue to raise up to $784,294.64 (before costs and subject to rounding) at a price of $0.01c per fully paid ordinary share (“Rights Issue”). The Rights Issue will be offered to existing shareholders on a 1:4 basis. All shares under the Rights Issue will be issued under the relevant exception in Listing Rule 7.2 and will, therefore, not be subject to shareholder approval. An indicative timetable for the Rights Issue is as follows:
| Event | Date |
|---|---|
| Announcement of Entitlement Offer | Thursday, 26 November 2020 |
| Ex-date for Entitlement Offer | Tuesday, 1 December 2020 |
| Record Date | 7.00pm (AEDT) Wednesday, 2 December 2020 |
| Entitlement Offer opens Dispatch of Booklet and Entitlement and Acceptance Form |
Monday, 7 December 2020 |
| Entitlement Offer closes (Closing Date) | 5.00pm (AEDT) Wednesday, 16 December 2020 |
14
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Shares quoted on a deferred settlement basis | Thursday, 17 December 2020 |
|---|---|
| Announcement of results of the Entitlement Offer | Monday, 21 December 2020 |
| Issue and allotment of Offer Shares under the Entitlement Offer | Wednesday, 23 December 2020 |
| Dispatch of holding statements | Thursday, 24 December 2020 |
| Commencement of trading of new Offer Shares | Thursday, 24 December 2020 |
Funds raised under the Rights Issue will be used:
-
to pay the transaction costs connected with the Proposed Acquisition; and
-
to pay the costs of the Rights Issue.
Extraordinary General Meeting
The Company will hold an extraordinary general meeting as soon as practicable to pass certain resolutions in connection with the Proposed Acquisition, including:
-
approval for the Company to acquire 100% of the issued share capital in RD pursuant to Listing Rule 11.1.2;
-
approval to issue 410,000,000 fully paid ordinary shares in the Company to the Vendors pursuant to Listing Rule 7.1;
-
approval to issue 85,000,000 Performance Shares to the Vendors pursuant to Listing Rule 7.1; and
-
approval to issue 33,000,000 fully paid ordinary shares to GTT Ventures Pty Ltd (or its nominee), an entity associated with Mr Charles Thomas, a director of the Company, for broking and corporate services, pursuant to Listing Rule 10.11.
Viking’s Chairman Mr Ray Whitten said: “This is an extremely important acquisition for Viking Mines. After searching the world and reviewing numerous project opportunities, I am extremely happy that the Company has been able to acquire the high-grade First Hit Gold Mine as part of the Red Dirt Project package. This represents an excellent opportunity to add development assets (and ounces) to Viking’s existing greenfield exploration portfolio of mineral projects.
Given the Board’s view on where we think the gold price is heading in the coming years, we think this acquisition alongside our existing assets will expose our shareholders to the expected upside in the price of gold bullion.”
Compliance with ASX Listing Rules
The Company notes that the estimates of Mineral Resources or Ore Reserves included in this announcement (“Estimates”) were undertaken by a former owner of the Red Dirt Mining Pty Ltd assets, under a pre-2012 edition of the JORC Code. The Company is of the view that it is required under Listing Rule 3.1 to disclose this information given a reasonable person would expect this information to have a material effect on the price or value of its Shares.
The Company, therefore, makes the following disclosures:
-
the Estimates have been reported by a former owner of the Red Dirt Mining Pty Ltd assets, being Barra Resources Limited;
-
the source and date of the Estimates are footnoted within this announcement and copies of the material original ASX announcements are attached to this announcement;
15
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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-
the Estimates were originally reported under the JORC Code 1999 and therefore may not conform to the requirements in the JORC Code 2012;
-
the assets have produced gold and therefore the previously reported Ore Reserve is above a feasibility study level;
-
a competent person has not done sufficient work to classify the historical estimates as mineral resources or ore reserves in accordance with the JORC Code;
-
the following is a summary of the work programs on which the Estimates were based
-
drilling;
-
petrographic studies;
-
geotechnical drilling;
-
drill hole grouting; and
-
geological interpretation,
-
the following parameters were used for the diluted mining reserve:
-
ore outlines were interpreted using a 2.0 g/t Au lower cutoff;
-
up to 3m (downhole) of internal dilution has been allowed;
-
ore outlines were digitised per section and wire framed together to form a solid model of each of the separate ore zones;
-
a block model was created using a maximum cell size of 2m and a minimum cell size of 1m;
-
grades were then estimated using the inverse distance squared technique. An unbiased search ellipsoid of 40m x 40m in both the vertical and horizontal directions was used in the grade estimation;
-
an S.G. of 2.8 for all the ore has been used. (Ascertained from metallurgical test work);
-
no upper cut was applied;
-
the maximum number of informing samples was set to 15;
-
the minimum informing samples was set to 3;
-
the grade estimation technique for each mineralised zone was constrained to the wire framed model for that particular ore zone;
-
dilution has been added manually for the stopes at a selvedge grade of 0.40g/t Au;
-
dilution for the ore drives has been calculated using Surpac, at a grade of 0.40 g/t Au,
-
the estimation methodology employed was ID2,
-
the Company is not aware of more recent available estimates or data relevant to the reported mineralisation;
16
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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-
the Competent Person considers that it is uncertain that following evaluation and/or further exploration work that the historical estimates will be reported as mineral resources or ore reserves in accordance with the JORC Code 2012;
-
the Company anticipates RC drilling will be undertaken as soon as practicable following completion of the Proposed Acquisition, using funds raised under the Placement; and
-
the Competent Person, Ian Stockton from CSA Global, considers that the information is an accurate representation of the available data and studies for the material mining project.
This announcement has been authorised for release by the board of directors of Viking Mines Ltd.
For further information, please contact: Viking Mines Limited
Dean Jagger Company Secretary 02 8072 1447
17
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Attachment 1: Barra Resources Limited, ‘Second Quarter Activities & Cashflow Report’; ASX Announcement, 29 January 2001
Document date: Mon 29 Jan 2001 Published: Mon 29 Jan 2001 00:00:00 Document No: 190707 Document part: A Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-01-29 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
SUMMARY
* Barra Resources Limited officially listed on the Australian Stock
Exchange on 12 December 2000 raising $5m through the issue of 20
million shares and 20 million attaching options at $0.25. The issue,
underwritten by CIBC World Markets Securities Australia, closed early
and oversubscribed.
* Reverse circulation drilling at the First Hit Prospect to 24
January 2001 has to date established a Measured Mineral Resource of
180,000 tonnes grading 23.6 grams per tonne gold for 136,576 ounces.
The resource underpins the early transition of the Company from
explorer to producer. Although significant additional work is
required to establish reserves and to bring the deposit into
production, a preliminary review based on mining costs and rates at
similar orebodies using a gold price of $A470 per ounce, estimates a
mine life of approximately 18 months with a minimum operating surplus
of $30 million.
* The drilling at First Hit has clearly demonstrated the structural
controls on mineralisation, which are identical to the controls at
the Riverina Gold Mine. Between the First Hit Prospect and the
Riverina Gold Mine, a distance of 8 kms, detailed aeromagnetics
reveals four similar structural settings.
* Drilling will commence next quarter at the Riverina Gold Mine to
follow up existing viable intersections with the objective of
expanding known high grade resources.
MORE TO FOLLOW
Document date: Mon 29 Jan 2001 Published: Mon 29 Jan 2001 00:00:00 Document No: 190707 Document part: B Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-01-29 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
PROJECTS
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1. RIVERINA
DRILLING
At the First Hit Prospect, Reverse Circulation drilling commenced on
4 December 2000 and to 24 January 2001, 19 holes totalling 4,300m
have been completed.
All results are presented in Table 1. Figure 1 presents a drill hole
location plan showing drill hole direction. All holes are angled at
-60 degrees. Figure 2 presents a longitudinal section showing all
pierce points, downhole intersections and gold grades utilised in
resource calculations.
Drilling has outlined a high grade gold shoot designated the
Evans-Vujcich Lode in recognition of Tom and Arthur Evans who
discovered the First Hit Mine and George Vujcich and his father who
worked the mine from the mid 1950's.
GEOLOGY
Geology is highly continuous comprising
amphibole-biotite-silica-carbonate schist with high grade assays
consistently relating to greenish quartz, very fine pyrite and high
biotite content.
The lode dips at 65deg east and varies from 2m to 8m in width, with a
strike length of 60m. Drilling to date has tested the Evans-Vujcich
Lode to 250m vertical depth.
RESOURCE ESTIMATE
The uncut Measured Mineral Resource of 180,000 tonnes grading 23.60
g/t Au for 136,576 ounces is based on dry Reverse Circulation
drilling on a 20m x 50m pattern. The estimate was by cross sectional
polygons, with the application of a minimum 2m mining width, the
inclusion of a maximum 2m width of waste and a bulk density of 2.8
tonnes per cubic metre. With the exception of holes 38 to 43 all
intersections have been re-sampled and re-assayed. Correlation is
excellent.
No cutting of high grade assays has been undertaken at this stage due
to the excellent continuity of geology and high grade assays. Infill
drilling to a 20m x 25m pattern will determine if some form of
cutting or restricting the influence of high grade assays is
necessary.
FUTURE POTENTIAL
Holes BFH 35 and 36 were drilled to ascertain if the controlling
east-west structure was mineralised, with negative results.
Holes BFH39 and 40 (See Figure 2) intersected the lode zone which was
severely disrupted by late stage porphyry intrusions. Hole 43
intersected strong mineralisation with only anomolous gold assays.
Holes 38 and 41 are geologically and economically encouraging. There
appears to be some structural disruption to the deposit near to the
250m level but current interpretation indicates the deposit will live
in depth.
Both infil drilling to enable mineable reserves to be calculated and
exploratory drilling to test the deposit to 400m vertical depth will
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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continue.
Composite samples from First Hit drilling for metallurgical testwork
have been prepared. Results will be available mid March 2001.
2. BURBANKS
No work was undertaken during the quarter.
3. PHILLIPS FIND
No work during the quarter. Drilling on the main coincident
geochemical and structural targets is expected to commence mid to
late February 2001.
4. QUINNS
A detailed low level aeromagnetic survey has been commissioned over
the entire tenement area (40kms x 6 kms). The survey will enable the
definition of soil covered greenstone belts adjacent to the Mt Ida
Fault and provide the structural setting for known mineralisation in
the area and any potential repetitions.
R G Colville
MANAGING DIRECTOR
A full copy of the Maps is available for purchase from ASX Customer
Service on 1 300 300 279. Charges apply.
MORE TO FOLLOW
Document date: Mon 29 Jan 2001 Published: Mon 29 Jan 2001 00:00:00 Document No: 190707 Document part: C Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-01-29 ASX-SIGNAL-G
+++++++++++++++++++++++++
TABLE 1 - First Hit prospect - significant drill hole intersection
assay results
HOLE ID FROM (m) TO (m) ASSAY INTERSECTIONS
(g/t Au) (g/t Au)
BFH026 No Significant Assay
BFH027 164 165 4.90 2m @ 4.29 g/t
165 166 3.68
BFHO28 No Significant Assay
BFHO29 152 153 42.47 8m @ 12.58 g/t
153 154 1.39
154 155 3.97
155 156 0.41
156 157 0.25
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157 158 3.42
158 159 6.09
159 160 42.6
168 169 1.88 3m @ 18.40 g/t
169 170 0.16
170 171 53.15
BFHO30 224 225 219.67 3m @ 74.66 g/t
225 226 2.71
226 227 1.61
BFHO31 No Significant Assay
BFHO32 221 222 55.33 3m @ 35.01 g/t
222 223 16.30
223 224 33.40
228 229 4.04 4m @ 1.71 g/t
229 230 0.33
230 231 0.07
231 232 2.39
BFHO33 212 213 3.41 4m @ 22.68 g/t
213 214 0.46
214 215 75.67
215 216 11.19
219 220 1.54 3m @ 7.96 g/t
220 221 21.00
221 222 1.33
BFHO34 228 229 4.87 1 m @ 4.87 g/t
BFHO35 Drilled different direction to test cross cutting shear
- No Significant Assays
BFHO36 Drilled different direction to test cross cutting shear
- No Significant Assays
BFHO37 117 118 9.33 1 m @ 9.33 g/t
BFHO38 241 242 99.6 4m @ 35.84 g/t
242 243 0.10
243 244 0.04
244 245 43.6
BFHO39 279 280 1.43 1 m @ 1.43 g/t
BFHO40 285 286 2.03 1 m @ 2.03 g/t
BFHO41 255 256 6.60 1 m @ 6.60 g/t
BFHO42 160 161 1.97 2m @ 1.28 g/t
161 162 0.59
BFH043 No Significant Assay
MORE TO FOLLOW
Document date: Mon 29 Jan 2001 Published: Mon 29 Jan 2001 00:00:00 Document No: 190707 Document part: D
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Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-01-29 ASX-SIGNAL-G
+++++++++++++++++++++++++
MINING EXPLORATION ENTITY QUARTERLY REPORT
Name of entity
Barra Resources Limited
ACN or ARBN Quarter ended ("current quarter")
093 396 859 31/12/2000
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows related to Current Year to date
operating activities Quarter (6 months)
AUD'000 AUD'000
1.1 Receipts from product sales
and related debtors - -
1.2 Payments for
(a) exploration and evaluation - -
(b) development - -
(c) production - -
(d) administration (3) (3)
1.3 Dividends received - -
1.4 Interest and other items of
a similar nature received 10 10
1.5 Interest and other costs of
finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows 7 7
Cash flows related to investing activities
1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.9 Proceeds from sale of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows - -
1.13 Total operating and
investing cash flows 7 7
Cash flows related to financing activities
1.14 Proceeds from issues of
shares, options, etc. 5,000 5,250
1.15 Proceeds from sale of
forfeited shares - -
1.16 Proceeds from borrowings - -
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1.17 Repayment of borrowings - -
1.18 Dividends paid - -
1.19 Other (provide details if material)
Underwriting Fee (250) (250)
Net financing cash flows 4,750 5,000
Net increase (decrease) in cash held 4,757 5,007
1.20 Cash at beginning of quarter/
year to date 250 -
1.21 Exchange rate adjustments to item 1.20 - -
1.22 Cash at end of quarter 5,007 5,007
PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS
PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE RELATED ENTITIES
Current Quarter
AUD'000
1.23 Aggregate amount of payments to
the parties included in item 1.2 -
1.24 Aggregate amount of loans to the
parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
-
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
During the quarter the Company issued a total of 22,500,000 fully
paid ordinary shares and 20,000,000 options to vendors of mining
properties pursuant to the Prospectus dated 27 October 2000
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
-
FINANCING FACILITIES AVAILABLE
Add notes as necessary for an understanding of the position.
available used
AUD'000 AUD'000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
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ESTIMATED CASH OUTFLOWS FOR NEXT QUARTER AUD'000
4.1 Exploration and evaluation 552
4.2 Development -
Total 552
NB: This includes exploration expenditure incurred and not paid for
the period 12 December 2000 to 31 December 2000.
RECONCILIATION OF CASH
Reconciliation of cash at the end Current Previous
of the quarter (as shown in the quarter quarter
consolidated statement of cash flows) AUD'000 AUD'000
to the related items in the accounts
is as follows.
5.1 Cash on hand and at bank 1,029 250
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other (provide details) 3,978 -
Bank Bills
Total: cash at end of quarter (item 1.22) 5,007 250
CHANGES IN INTERESTS IN MINING TENEMENTS
Tenement Nature of Interest at Interest
reference interest beginning at end of
(note(2)) of quarter quarter
6.1 Interests in
mining tenements
relinquished,
reduced or lapsed Refer - -
Prospectus
Dated 27/10/2000
6.2 Interests in
mining tenements
acquired or
increased - - - -
ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD
Description includes rate of interest and any redemption or
conversion rights together with prices and dates.
Category of Number Number Issue Paid-up
securities issued quoted Price value
(cents) (cents)
7.1 Preference
securities
(description) - - - -
7.2 Changes during
current period
(a) increases through
issues - - - -
(b) decreases through
24
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returns of capital
buybacks,
redemptions - - - -
7.3 Ordinary
securities 52,500,001 21,000,001 - -
7.4 Changes during
current period
(a) increases through
issues 42,500,000 20,000,000 25 25
(b) decreases through
returns of capital
buybacks - - - -
7.5 Convertible debt
securities
(description and
conversion factor) - - - -
7.6 Changes during
current period
(a) increases through
issues - - - -
(b) decreases through
securities matured,
converted - - - -
7.7 Options (description Exercise Expiry
and conversion factor) price date
(cents)
2,500,000 - 25 04/12/2003
22,000,000 20,000,000 25 31/08/2003
20,000,000 - 25 04/12/2003
7.8 Issued during
current period 2,500,000 - 25 04/12/2003
22,000,000 20,000,000 25 31/08/2003
20,000,000 - 25 04/12/2003
7.9 Exercised during
current period - - - -
7.10 Expired during
current period - - - -
7.11 Debentures
(totals only) - -
7.12 Unsecured notes
(totals only) - -
25
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COMPLIANCE STATEMENT
-
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX. -
2 This statement does give a true and fair view of the matters disclosed.
G J Mooney Date: 29/01/2001
COMPANY SECRETARY
26
Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Attachment 2: Barra Resources Limited, ‘Third Quarter Activities & Cashflow Reports’; ASX Announcement, 27 April 2001
Document date: Fri 27 Apr 2001 Published: Fri 27 Apr 2001 00:00:00 Document No: 195253 Document part: A Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-04-27 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
SUMMARY
* Focus for the quarter has been to advance the First Hit discovery
to mining as soon as possible. Mining is expected to commence at
First Hit in August 2001.
* Calculation of First Hit's diluted Mineable Reserves to 240 metres
vertical depth with associated mine planning, mine scheduling and
financial analysis conclude 176,800 t grading 13.4 g/t Au for 76,170
ounces. Expected mine life is 18 months.
* The mine is expected to generate a strong cash flow which will
provide the ability to continue to aggressively test the very
exciting Riverina area and provide funds for other corporate and
project opportunities.
* All metallurgical, flora and fauna, hydrological, archaeological,
enthnographic, mine planning and environmental studies at First Hit
have been completed. Geotechnical studies are in progress.
Preparation of documentation for Department of Minerals and Energy,
Western Australia mining approvals is nearing completion.
* Negotiations are progressing for Barminco Pty Ltd to mine the
deposit and treat material at their Greenfields Treatment Plant at
Coolgardie. Barminco will provide the finance and mining expertise.
Barra will be responsible for all geological and grade control
aspects of the operation.
* Drilling will continue with the objective to expand the mineable
reserves both along strike and at depth.
* Drilling commenced during March at the Riverina Gold Mine 8 kms
south of First Hit with encouraging results comprising 5m @ 12.9 g/t
Au, 2m at 7.7 g/t Au, 1 m at 11.6 g/t Au, 3m @ 3.0 g/t Au and 1 m @
11.0 g/t Au. Drilling will continue during the June quarter.
MORE TO FOLLOW
Document date: Fri 27 Apr 2001 Published: Mon 30 Apr 2001 00:00:00 Document No: 195253 Document part: B
27
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Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-04-27 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++
PROJECTS
1. RIVERINA
FIRST HIT
DRILLING
At the First Hit Prospect reverse circulation drilling continued to
infil the previous 50m x 20m pattern to a 25m x 20m pattern and
during the quarter comprised 45 holes totalling 6094 m.
Total reverse circulation drilling at First Hit comprises 89 holes
totalling 13,328m, with 44 holes for 7234m pre and during the
December 2000 quarter and 45 holes for 6094m during the March 2001
quarter.
All results for the March quarter are presented in Table 1. Figure 1
presents a drill hole location plan. Figure 2 presents a longitudinal
section showing all pierce points, downhole intersections and gold
grades utilised in resource calculations.
Drilling has defined two shoots, the main shoot designated the
Evans-Vujcich Lode and a small shoot to the north designated Kylies
Lode after Kylie Thompson, the previous owner of the First Hit
tenement.
RESOURCE ESTIMATES
The infil drilling to a 20m x 25m pattern has down graded the
previous uncut geological resource estimate. Major factors in this
downgrade were less tonnes on the perimeter of the deposit than
indicated by the broader spaced drilling and the presence of a low
grade zone centrally located within the deposit.
Using cross sectional polygons, with the application of a minimum 2m
mining width, the inclusion of a minimum 2m of waste and a bulk
density of 2.8 tonnes per cubic metre the uncut Measured Mineral
Resource based on 20m x 25m pattern is 147,500 t grading 23.2 g/t Au
for 110,000 ounces.
MINEABLE RESERVES
A computer generated constrained unbiased block model utilising 35
drill hole intersections and 127 assays estimated a proven ore
reserve of 143,500 t grading 16.7 g/t Au for 77,050 ounces. The model
incorporated a minimum 2m mining width, the inclusion of a maximum
2.5m internal waste, and a bulk density of 2.82 determined form
metallurgical test work. Ore outlines were interpreted using a 2.0
g/t Au lower cut off. The model conservatively but realistically
confines high grade intercepts.
A detailed mine plan based on decline access resulted in a diluted
mining reserve of 176,800 t grading 13.4 g/t Au for 76,170 ounces.
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Narrow longhole open stoping is the proposed mining method, with 20m
(vertical) levels.
METALLURGY
Ammtec Ltd undertook comprehensive metallurgical test work on a 70kg
composite sample from each hole within the 20m x 50m drill pattern.
The bulk sample screen fire assayed 21.2 g/t Au.
Average recoveries for all tests was 95% with 55% of the gold
reporting to gravity separation and 40% to cyanide leach within 8
hours. Grind size was 80% passing 75 microns.
The First Hit ore possesses metallurgical characteristics highly
amenable to the Greenfields Treatment Plant.
RIVERINA GOLD MINE
Reverse circulation drilling commenced at the Riverina Gold Mine to
test extensions to and infil between previous viable intersections.
Table 2 presents all significant results for the March quarter. Fig 3
presents a longitudinal section showing previous drilling and hole
pierce points for the March quarter drilling.
The Company is in the early stages of testing of the 1.5 km strike
length of mineralisation at Riverina. Results to date are highly
encouraging as most drill holes have intersected altered shear zones
containing anomalous or significant gold.
2. BURBANKS
No work was undertaken during the quarter.
3. PHILLIPS FIND
No work was undertaken during the quarter. Drilling at Phillips Find
has been delayed due to all efforts being focused on First Hit and
Riverina.
4. QUINNS
Results of a detailed low level aeromagnetic survey undertaken during
the quarter over the entire tenement area (40kms x 6 kms) are
awaited. The survey results will enable the definition of soil
covered greenstone belts adjacent to the Mt Ida Fault and provide the
structural setting for known mineralisation in the area and for any
potential repetitions.
R G Colville
MANAGING DIRECTOR
This information is based on and accurately reflected, information
compiled by Robert George Colville, who is a Member of the
Australasian Institute of Mining and Metallurgy.
MORE TO FOLLOW
29
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Document date: Fri 27 Apr 2001 Published: Mon 30 Apr 2001 00:00:00 Document No: 195253 Document part: C Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-04-27 ASX-SIGNAL-G
+++++++++++++++++++++++++
TABLE 1 - FIRST HIT PROSPECT - SIGNIFICANT DRILL HOLE INTERSECTION
ASSAY RESULTS
HOLE ID FROM (m) TO (m) ASSAY INTERSECTIONS
(g/t Au) (g/t Au)
BFH043 292 293 0.50 1m @ 0.50 g/t
BFH045 307 308 1.06 1m @ 1.06 g/t
BFH048 245 246 10.67
246 247 2.20
247 248 1.98 3m @ 4.95 g/t
BFH049 131 132 10.7
132 133 8.98 2m @ 9.84 g/t
143 144 1.15 1m @ 1.15 g/t
147 148 1.65
148 149 2.45 2m @ 2.05 g/t
BFH050 192 193 13.95
193 194 6.30
194 195 0.92
195 196 15.80
196 197 14.55 5m @ 10.30 g/t
BFH51 188 189 2.65
189 190 1.23
190 191 0.35
191 192 81.47
192 193 138.50
193 194 5.20
194 195 2.05
195 196 0.55
196 197 4.27 9m @ 26.25 g/t
BFH052 193 194 4.03
194 195 7.33 2m @ 5.68 g/t
BFH053 45 46 6.74 1m @ 6.74 g/t
BFH054 103 104 13.70
104 105 0.15
105 106 1.25 3m @ 5.03 g/t
BFH055 125 126 3.58
126 127 13.60
127 128 1.55 3m @ 6.24 g/t
140 141 11.40 1m @ 11.40 g/t
BFH056 108 109 0.70
109 110 22.8 2m @ 11.80 gA
BFH058 100 101 3.96
101 102 2.14 2m @ 3.05 g/t
BFH061 210 211 0.64 1m @ 0.64 g/t
BFH062 181 182 0.75
182 183 1.92 2m @ 1.34 g/t
BFH063 47 48 26.20
48 49 0.44 2m @ 13.32 g/t
BFH064 27 28 37.75
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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28 29 1.62 2m @ 19.69 g/t
BFH065 48 49 3.30
49 50 2.08 2m @ 2.69 g/t
BFH066 14 15 2.45 1m @ 2.45 g/t
BFH067 45 46 0.55 1m @ 0.55 g/t
BFH069 47 48 222.36
48 49 5.89
49 50 0.61 3m @ 76.34 g/t
BFH072 121 122 3.24
122 123 13.80
123 124 9.13 3m @ 8.72 g/t
BFH073 161 162 2.10
162 163 1.15 2m @ 1.63 g/t
BFH074 164 165 87.37
165 166 0.16 2m @ 43.76 g/t
BFH078 31 32 0.72 1m @ 0.72 g/t
BFH079 46 47 1.98
47 48 0.32
48 49 2.10 3m @ 1.47 g/t
BFH081 29 30 221.67
30 31 8.42
31 32 1.10 3m @ 77.06 g/t
BFH082 26 27 59.00
27 28 1.91 2m @ 30.45 g/t
BFH084 24 25 0.69 1m @ 0.69 g/t
BFH087 157 158 0.96 1m @ 0.96 g/t
MORE TO FOLLOW
Document date: Fri 27 Apr 2001 Published: Mon 30 Apr 2001 00:00:00 Document No: 195253 Document part: D Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-04-27 ASX-SIGNAL-G
+++++++++++++++++++++++++
TABLE 2 - RIVERINA PROSPECT - SIGNIFICANT DRILL HOLE INTERSECTION
ASSAY RESULTS
HOLE ID FROM(M) TO(M) ASSAY (G/T AU) INTERSECTIONS (G/T AU)
BRV010 97 98 12.30
98 99 3.0 2m @ 7.65 g/t
109 110 1.81
110 111 1.29 2m @ 1.55 g/t
121 122 5.06 1m @ 5.06 g/t
129 130 5.69 1m @ 5.69 g/t
140 141 1.52
141 142 3.58 2m @ 2.55 g/t
145 146 1.04 1m @ 1.04 g/t
BRV011 134 135 1.66
135 136 2.35 2m @ 2.00 g/t
153 154 1.05 1m @ 1.05 g/t
BRV012 107 108 3.56 1m @ 3.56 g/t
127 128 11.57 1m @ 11.57 g/t
BRV013 121 127 0.67 6m Alteration Zone
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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BRV014 214 215 6.86 1m @ 6.86 g/t
230 231 1.05
231 232 4.42
232 233 6.87
233 234 11.80
234 245 40.10 5m @ 12.85 g/t
BRV017 263 264 2.00
264 265 2.44
265 266 4.49 3m @ 2.98 g/t
BRV018 244 245 2.47 1m @ 2.47 g/t
BRV019 249 250 11.01 1m @ 11.01 g/t
A full copy of the Figures 1, 2 & 3 are available for purchase from
ASX Customer Service on 1 300 300 279. Charges apply.
MORE TO FOLLOW
Document date: Fri 27 Apr 2001 Published: Fri 27 Apr 2001 00:00:00 Document No: 195253 Document part: E Market Flag: Y Classification:
BARRA RESOURCES LIMITED 2001-04-27 ASX-SIGNAL-G
+++++++++++++++++++++++++
MINING EXPLORATION ENTITY QUARTERLY REPORT
Name of entity
Barra Resources Limited
ACN or ARBN Quarter ended ("current quarter")
093 396 859 31/03/2001
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows related to Current Year to date
operating activities Quarter (9 months)
AUD'000 AUD'000
1.1 Receipts from product sales
and related debtors - -
1.2 Payments for
(a) exploration and evaluation (607) (607)
(b) development - -
(c) production - -
(d) administration (135) (138)
1.3 Dividends received - -
1.4 Interest and other items of
a similar nature received 52 62
1.5 Interest and other costs of
finance paid - -
1.6 Income taxes paid - -
1.7 Other (provide details if material) - -
Net Operating Cash Flows (690) (683)
Cash flows related to investing activities
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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1.8 Payment for purchases of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets (10) (10)
1.9 Proceeds from sale of:
(a) prospects - -
(b) equity investments - -
(c) other fixed assets - -
1.10 Loans to other entities - -
1.11 Loans repaid by other entities - -
1.12 Other (provide details if material) - -
Net investing cash flows (10) (10)
1.13 Total operating and
investing cash flows (700) (693)
Cash flows related to financing activities
1.14 Proceeds from issues of
shares, options, etc. - 5,250
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: Inderwriting Fee/Cost Issue (434) (684)
Net financing cash flows (434) 4,566
Net increase (decrease) in cash held (1,134) 3,873
1.20 Cash at beginning of quarter/
year to date 5,007 -
1.21 Exchange rate adjustments to item 1.20 - -
1.22 Cash at end of quarter 3,873 3,873
PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS
PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE RELATED ENTITIES
Current Quarter
AUD'000
1.23 Aggregate amount of payments to
the parties included in item 1.2 65
1.24 Aggregate amount of loans to the
parties included in item 1.10 -
1.25 Explanation necessary for an understanding
of the transactions
Salaries, superannuation and directors fees paid to 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
Nil
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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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
Nil
FINANCING FACILITIES AVAILABLE
Add notes as necessary for an understanding of the position.
Amount Amount
available used
AUD'000 AUD'000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
ESTIMATED CASH OUTFLOWS FOR NEXT QUARTER AUD'000
4.1 Exploration and evaluation 606
4.2 Development -
Total 606
RECONCILIATION OF CASH
Reconciliation of cash at the end Current Previous
of the quarter (as shown in the quarter quarter
consolidated statement of cash flows) AUD'000 AUD'000
to the related items in the accounts
is as follows.
5.1 Cash on hand and at bank 891 1,029
5.2 Deposits at call - -
5.3 Bank overdraft - -
5.4 Other: Bank Bills 2,982 3,978
Total: cash at end of quarter (item 1.22) 3,873 5,007
CHANGES IN INTERESTS IN MINING TENEMENTS
Tenement Nature of Interest at Interest
reference interest beginning at end of
(note(2)) of quarter quarter
6.1 Interests in
mining tenements
relinquished,
reduced or lapsed - - - -
6.2 Interests in
mining tenements
acquired or
increased M29/284 Application - 100%
M30/178 Application - 100%
ISSUED AND QUOTED SECURITIES AT END OF CURRENT PERIOD
Description includes rate of interest and any redemption or
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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conversion rights together with prices and dates.
Category of Number Number Issue Paid-up
securities issued quoted Price value
(cents) (cents)
7.1 Preference
securities
(description) - - - -
7.2 Changes during
current period
(a) increases through
issues - - - -
(b) decreases through
returns of capital
buybacks,
redemptions - - - -
7.3 Ordinary
securities 52,500,001 21,000,001 - -
7.4 Changes during
current period
(a) increases through
issues - - - -
(b) decreases through
returns of capital
buybacks - - - -
7.5 Convertible debt
securities
(description and
conversion factor) - - - -
7.6 Changes during
current period
(a) increases through
issues - - - -
(b) decreases through
securities matured,
converted - - - -
7.7 Options (description Exercise Expiry
and conversion factor) price date
(cents)
2,500,000 - 25 04/12/2003
22,000,000 20,000,000 25 31/08/2003
20,000,000 - 25 04/12/2003
7.8 Issued during
current period - - - -
7.9 Exercised during
current period - - - -
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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7.10 Expired during
current period - - - -
7.11 Debentures
(totals only) - -
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 Law or other standards acceptable to ASX. -
2 This statement does/does not give a true and fair view of the matters disclosed.
G J Mooney Date: 27/04/2001
COMPANY SECRETARY
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Competent Persons Statement
Information in this release that relates to Exploration Results on the Western Australian projects is based on information compiled by Mr Ian Stockton, who is a Member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Stockton is a full-time employee of CSA Global. Mr Stockton is engaged by Viking Mining Limited as an independent consultant. Mr Stockton has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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’. Mr Stockton consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.
Appendix 1: Summary of Drill Hole Intersections Quoted in Text
| Hole ID | Easting (mN) |
Northing (mN) |
Elevation (mRL) |
Hole Length (m) |
Azimuth (Coll) |
Dip (Coll) |
Depth From (m) |
Down hole Length (m) |
Au Grade (g/t) |
Notes: | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Intercepts | |||||||||||
| b | elow the existing resource: | ||||||||||
| FHU045 | 265,619 | 6,714,754 | 263 | 94.2 | 289.5 | -72 | 62.1 | 4.9 | 64.8 | Overall Intercept | |
| FHU045 | - | - | - | - | - | - | 62.1 | 0.2 | 6.9 | Underground drill hole | |
| FHU045 | - | - | - | - | - | - | 62.3 | 0.7 | 3.6 | - | |
| FHU045 | - | - | - | - | - | - | 63.0 | 1.0 | 0.3 | - | |
| FHU045 | - | - | - | - | - | - | 64.0 | 1.1 | 0.3 | - | |
| FHU045 | - | - | - | - | - | - | 65.1 | 0.3 | 94.7 | - | |
| FHU045 | - | - | - | - | - | - | 65.4 | 0.8 | 1.4 | - | |
| FHU045 | - | - | - | - | - | - | 66.2 | 0.5 | 0.5 | - | |
| FHU045 | - | - | - | - | - | - | 66.7 | 0.3 | 1,088 | - | |
| FHU055 | 265,620 | 6,714,758 | 264 | 71.05 | 310 | -58 | 55.8 | 4.5 | 10.0 | Overall Intercept | |
| FHU055 | - | - | - | - | - | - | 55.8 | 0.5 | 2.7 | Underground drill hole | |
| FHU055 | - | - | - | - | - | - | 56.2 | 0.3 | 21.0 | - | |
| FHU055 | - | - | - | - | - | - | 56.5 | 0.4 | 1.4 | - | |
| FHU055 | - | - | - | - | - | - | 56.9 | 0.4 | 7.2 | - | |
| FHU055 | - | - | - | - | - | - | 57.3 | 0.4 | 42.0 | - | |
| FHU055 | - | - | - | - | - | - | 57.7 | 0.5 | 1.9 | - | |
| FHU055 | - | - | - | - | - | - | 58.2 | 0.6 | 1.2 | - | |
| FHU055 | - | - | - | - | - | - | 58.8 | 0.3 | 8.5 | - | |
| FHU055 | - | - | - | - | - | - | 59.1 | 0.5 | 2.9 | - | |
| FHU055 | - | - | - | - | - | - | 59.6 | 0.5 | 5.0 | - | |
| FHU055 | - | - | - | - | - | - | 60.0 | 0.3 | 28.0 | - | |
| BFH114 | 265,705 | 6,714,742 | 437 | 288 | 290 | -60 | 273.0 | 3.0 | 9.3 | Overall Intercept | |
| BFH114 | - | - | - | - | - | - | 273.0 | 1.0 | 3.5 | - | |
| BFH114 | - | - | - | - | - | - | 274.0 | 1.0 | 0.2 | - | |
| BFH114 | - | - | - | - | - | - | 275.0 | 1.0 | 24.3 | - | |
| FHU058 | 265,618 | 6,714,753 | 263 | 89.3 | 302 | -71 | 64.3 | 3.7 | 22.2 | Overall Intercept | |
| FHU058 | - | - | - | - | - | - | 64.3 | 0.4 | 1.8 | Underground drill hole | |
| FHU058 | - | - | - | - | - | - | 64.7 | 0.3 | 1.0 | - | |
| FHU058 | - | - | - | - | - | - | 65.0 | 0.4 | 1.5 | - | |
| FHU058 | - | - | - | - | - | - | 65.4 | 0.4 | 1.3 | - | |
| FHU058 | - | - | - | - | - | - | 65.8 | 0.2 | 37.9 | - | |
| FHU058 | - | - | - | - | - | - | 65.9 | 0.3 | 3.4 | - |
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| Hole ID | Easting (mN) |
Northing (mN) |
Elevation (mRL) |
Hole Length (m) |
Azimuth (Coll) |
Dip (Coll) |
Depth From (m) |
Down hole Length (m) |
Au Grade (g/t) |
Notes: |
|---|---|---|---|---|---|---|---|---|---|---|
| FHU058 | - | - | - | - | - | - | 66.2 | 0.3 | 30.8 | - |
| FHU058 | - | - | - | - | - | - | 66.5 | 0.4 | 68.6 | - |
| FHU058 | - | - | - | - | - | - | 66.9 | 0.4 | 76.3 | - |
| FHU058 | - | - | - | - | - | - | 67.3 | 0.3 | 37.0 | - |
| FHU058 | - | - | - | - | - | - | 67.5 | 0.5 | 1.6 | - |
| Intercepts laterally adjacent to existing r | Intercepts laterally adjacent to existing r | Intercepts laterally adjacent to existing r | esource: | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BFH030 | 265,688 | 6,714,817 | 439 | 259 | 290 | -59 | 224.0 | 3.0 | 77.6 | Overall Intercept | |
| BFH030 | - | - | - | - | - | - | 224.0 | 1.0 | 225.0 | - | |
| BFH030 | - | - | - | - | - | - | 225.0 | 1.0 | 5.2 | - | |
| BFH030 | - | - | - | - | - | - | 226.0 | 1.0 | 2.5 | - | |
| BFH115 | 265,704 | 6,714,813 | 439 | 270 | 290 | -60 | 255.0 | 1.0 | 15.4 | - | |
| BFH074 | 265,662 | 6,714,911 | 441 | 205 | 290 | -60 | 164.0 | 1.0 | 66.7 | - | |
| Up dipfrom | the mined sto | pe areas inclu | de: | ||||||||
| BFH005 | 265,563 | 6,714,904 | 446 | 88 | 292 | -62 | 58.0 | 4.0 | 26.1 | Overall Intercept | |
| BFH005 | - | - | - | - | - | - | 58.0 | 1.0 | 86.2 | Un-stoped area | |
| BFH005 | - | - | - | - | - | - | 59.0 | 1.0 | 1.2 | - | |
| BFH005 | - | - | - | - | - | - | 60.0 | 1.0 | 0.2 | - | |
| BFH005 | - | - | - | - | - | - | 61.0 | 1.0 | 16.8 | - | |
| BFH064 | 265,523 | 6,714,934 | 448 | 40 | 290 | -60 | 27.0 | 2.0 | 13.1 | Overall Intercept | |
| BFH064 | - | - | - | - | - | - | 27.0 | 1.0 | 23.0 | Above the highest mined level | |
| BFH064 | - | - | - | - | - | - | 28.0 | 1.0 | 3.2 | - | |
| BFH103 | 265,536 | 6,714,922 | 446 | 60 | 290 | -60 | 38.0 | 4.0 | 2.3 | Overall Intercept | |
| BFH103 | - | - | - | - | - | - | 38.0 | 1.0 | 7.1 | Near surface splay | |
| BFH103 | - | - | - | - | - | - | 39.0 | 1.0 | 1.1 | - | |
| BFH103 | - | - | - | - | - | - | 40.0 | 1.0 | 0.0 | - | |
| BFH103 | - | - | - | - | - | - | 41.0 | 1.0 | 1.1 | - | |
| BFH096 | 265,551 | 6,715,032 | 446 | 30 | 290 | -60 | 18.0 | 2.0 | 5.1 | Overall Intercept | |
| BFH096 | - | - | - | - | - | - | 18.0 | 1.0 | 8.7 | Near surface splay- | |
| BFH096 | - | - | - | - | - | - | 19.0 | 1.0 | 1.5 | - |
Note 1: Grid reference GDA94Z51
Note2: The intervals selected are geologically defined and reflect the various mineralised veins that are present in the First Hit Mine. No specific cut off grades have been applied to these intervals.
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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Appendix 2: JORC Table 1
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Sampling techniques |
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. |
Surface Geochemistry WMC mining completed several phases of soil geochemistry between 1990 and 1992 with 2,836 samples collected. This included: • Stream sediment geochemistry from active streams from contemporary lags within stream beds. • 2 kg pan concentrate samples collected from trap sites in active drainage channels. • Soil samples collected from 5-15 cm depth or 15-30 cm depth depending on soil thickness and passed through -10#, +36#, -80# or 120# meshes. Surface soil sampling was sieved through a 6 mm mesh. Barminco Pty Ltd undertook 2 geochemical soil geochemistry programs on the northern part of M30/99 between 1995 and 2000. The first soil survey completed was designed to test areas of residual soil and outcrop, whereas the second soil survey tested areas covered by shallow transported cover. In areas of residual soil and outcrop –80 mesh soil samples were collected on a 50 m x 50 m spaced grid and analysed for gold and arsenic. In areas of transported cover, a preliminary 100 m x 400 m spaced auger soil sampling program was undertaken. The details of the sampling methods and horizons tested for the -80# mesh soil sampling and auger sampling are not described. WMC collected ironstone float rock chip samples (number unknown) across the tenements. Barminco completed undertook rock chip sampling between 1996 and 2002, though the number of samples collected is unknown. Rock chips are described as being collected also taken in areas with cover, laterite development and recent drainage areas for pathfinder and mapping purposes. Surface Drilling |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| WMC completed 13 RC drill holes and one diamond drill hole during their tenure between 1990 and 1992. No descriptions of the nature of the sampling are available. Barminco completed core and diamond drilling with percussion and core drilling of holes up to 346 metres deep below surface has been undertaken over time over the First Hit Project area mineralisation. And 21 RC holes north and south along strike from the deposit testing for repeats of the First Hit mineralisation. Percussion samples were split at the drill sites and a 2-5 kg sample was taken for processing and analysis. Probable waste zones were sampled by compositing over 2-4 metres and individual samples were retested if the composites were anomalous. Core from drilling was split length ways and half was used for initial analysis whilst the remaining half was used for reference material (kept used for metallurgical testing as required). Underground Ore Control and Definition: Underground resource definition drilling using drill core provided solid core samples for analysis. During mining operations face channels and production drill holes were used to assist with ore definition and control. Whole core was sampled from UG drill core. |
||
| Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
The entire RC sample was extracted prior to subsampling at surface next to the rig; samples from diamond drilling were subsampled in a core handling facility. Diamond and RC field duplicates were taken on selected intervals within the interpreted mineralised horizons to measure representativity of sample splits. |
|
| Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information |
The breakdown in drilling method yielding each sample type is included in the table below. Sample preparation consisted of coarse crushing a maximum of 3 kg of the submitted sample, pulverising to >85% passing 75 microns and homogenising the pulp for all sample types. 50 g sample sizes were chosen for analysis of gold, with fire assay fusion and detection by atomic absorption spectrometry (AAS). |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Drilling techniques |
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). |
Drillhole data over the First Hit Project area comprised 295 holes, consisting of 187 RC, 3 surface diamond holes, 55 RAB holes, and 50 UG DDH holes, with an additional 504 UG face channel samples (collected as horizontal channels across the ore drive headings). RC samples were collected using a face-sampling, 4.5-inch diameter bit via the inner return tube to a sample splitter. Surface diamond core drilling utilised an NQ2 size (50.6 mm) drill bit. The core diameter for underground drilling could not be obtained from available reports however from the core photos the core size appears to be NQ. Total - holes & (m) % of total holes & (m) % of total holes & (m) % of total holes & (m) % of total holes & (m) % of total - 187 23% 3 0% 55 7% 50 6% 504 63% 799 24,132 78% 545 2% 2,091 7% 2,190 7% 2,094 7% 31,052 UG_DDH UG_CNHL Underground Diamond Core Drilling Underground Channel/Face Sampling Reverse Circulation RC DDH RAB Surface Diamond Core Drilling Rotary Air Blast |
| Drill sample recovery |
Method of recording and assessing core and chip sample recoveries and results assessed. |
No documentation regarding the measurement of drill core or RC recoveries could be found in the various reports and tables in the available data. The following comment is extracted from the 2001 First Hit Mine Ore Resource and Mining Report: “Sample recoveries throughout the drilling programs has been excellent (majority greater than 80%) with no major problems encountered” CSA Global briefly reviewed historical drill core stored on site (holes un-labelled) and core photographs of underground drill holes (FHU001, FHU019, FHU041, FHU044, FHU045, FHU046, FHU052, FHU055) and noted that core was in good condition with long intervals of unbroken core and no evidence of poor recoveries. CSA Global through examining core photos is satisfied that core recoveries were adequate though better documentation by the original project owners in this regard would have been more conclusive. |
| Measures taken to maximise sample recovery and ensure representative nature of the samples. |
Sampling techniques were chosen as appropriate for ground conditions to maximise sample recovery. There is no additional record of measures in place to maximise recovery. |
|
| Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
Insufficient information on sample recovery is available to establish whether a relationship between sample recovery and grade exists. |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Logging | Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. |
All RC and diamond drillholes were geologically logged to an industry standard appropriate for the mineralisation present at the project. All RC drill chip samples were geologically logged at 1 m intervals from surface to the end of each drillhole. Diamond core was photographed, and RC chips were retained in chip trays for future reference. Ausdrill completed three, NQ2 diamond drill holes at the First Hit deposit for geotechnical assessment prior to mining. The holes were designed in consultation with Golder Associates Pty Ltd and were targeted into the mineralised zones and continued on average 30 m into the footwall to assess the likely ground conditions for the decline and ore accesses. Approximately 70 metres of core was drilled for each hole allowing the hangingwall, the ore zone and the footwall zone to be assessed. Golders Associates Pty Ltd were commissioned to undertake the geotechnical assessment. The Competent Person considers that the level of detail is sufficient for the reporting. |
| Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. |
Lithological logging is qualitative in nature. Logged intervals were compared to the quantitative geochemical analyses to validate the logging. The Competent Person considers that the availability of qualitative and quantitative logging has appropriately informed the geological modelling, including weathering and oxidation, water table level and rock type. |
|
| The total length and percentage of the relevant intersections logged. |
The total length of all drilling was geologically logged. | |
| Subsampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken. |
Diamond core was cut into two halves using a diamond core saw for surface drilling. One of the halves was placed into a numbered calico bag, which was tied and placed in a plastic/poly-weave bags for assaying. Underground DDH samples were whole core sampled. |
| If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. |
RC samples were collected via a splitter to yield sub samples of approximately 3 kg from a 1 m downhole sample length. Expected waste zones were initially sampled as 2 m or 4 m composites and later resampled at 1 m intervals if anomalous assay results were returned. Re-sampling was undertaken using the spear sampling method |
|
| For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
The Competent Person considers these methods appropriate for this style of mineralisation. | |
| Quality control procedures adopted for all subsampling stages to maximise representivity of samples. |
CSA Global were unable to establish QAQC processes involving the use of CRM, including blanks and standards. The following is described from the First Hit Mine Ore Resources and Mining Report, 2001 and indicates duplicates were used to inform the resource model. |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| “Several samples were often submitted for each positive assay. These were taken on site and submitted to the same laboratory under a different sample number and then assayed using the same technique. An average of these results for each interval has been used within the ore resource calculations”. CSA Global does not consider the above process to be suitable as a form of QAQC. The lack of CRMs is not industry practice. CSA Global recommends the application of industry standard QAQC to all future drilling programs. |
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| Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. |
Barminco Pty Ltd See comments above regarding the use of duplicates by Barminco. Several samples were often submitted for each positive assay. These were taken on site and submitted to the same laboratory under a different sample number and then assayed using the same technique. An average of these results for each interval has been used within the ore resource calculations. |
|
| Whether sample sizes are appropriate to the grain size of the material being sampled. |
The First Hit Project mineralisation and targets within the associated tenements are expected to be coarse grained and nuggety gold. Further exploration will need to consider the grain size of gold and distribution of particles. No previous petrology reports were found, and future work will include petrological studies in the early stage of exploration. |
|
| Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. |
7,865 samples were prepared for Fire Assay and tested by Kalgoorlie Assay Laboratory. There are incomplete records for the remaining 2,150 samples. Fire Assay is considered a total digest and whilst generally appropriate for the type of mineralisation, cyanide bottle roll leach test work may be recommended for exploration should coarse gold be encountered in future exploration. |
| For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. |
No non-destructive tools or devices are recorded as being used. | |
| Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. |
CSA Global has not been able to obtain the original assay certificates for exploration and resource drilling on the First Hit Project tenements. As recorded in the QC procedure section duplicates were used as a way of informing the resource model. For future exploration it is recommended that standard CRMS, blanks and duplicates be used for QAQC. |
|
| Verification of sampling |
The verification of significant intersections by either independent or alternative company personnel. |
Due to the samples being sampled and collected 20 years ago, independent verification is difficult and has not been undertaken. CSA Global recommend unpacking the remaining drill core on site and reviewing the geology, alteration, structure and mineralisation. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| and assaying |
The use of twinned holes. | No twin drilling has been undertaken; however, significant reported underground development and sampling has verified the information provided by the surface drilling. Some twinning of drill holes for exploration purposes is recommended by CSA Global. |
| Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
The data entry, storage and documentation of primary data was completed in Microsoft Access databases and assembled by CSA Global into a central database for future purposes. The majority of the data reviewed by CSA Global has been summarised from primary sources. |
|
| Discuss any adjustment to assay data. | No adjustments or calibrations have been made to any assay data. | |
| Location of data points |
Accuracy and quality of surveys used to locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. |
All drill hole collars were surveyed by differential global positioning system (DGPS) or by the mine operations survey equipment. The following extract from the 2001 First Hit Mine Ore Resource and Mining report states the following: Down hole surveying of drill holes were undertaken on the majority of holes whilst being drilled. This has enabled only dip readings to be collected as the instrument was used within the drill string. Several programs of downhole surveying using a single shot Eastman camera have been completed for all available holes in the First Hit area and have been incorporated into the database. Where downhole surveys were unavailable due to the collapse of the hole, survey estimates at regular intervals have been applied. These are based on the deviation of the surrounding drill holes. Drill holes greater than 100 m in depth deviated consistently in the azimuth to the southwest (against rotation). The dip angle in most cases steepened and in some of the deeper holes this was quite dramatic. Drill string stabilizers were tried at various times in an attempt to help alleviate this problem but no consistent results were achieved. |
| Specification of the grid system used. | Topographic data for the mine drilling were captured in MGA Zone 51 grid. A local grid has been established at First Hit, which is orthogonal to the known mineralised trend of the area (020 degrees). The grid orientation is at 290 degrees magnetic which is optimal for this deposit. The conversion from local to AMG 84 grid is presented in the table below. |
|
| Quality and adequacy of topographic control. | Historical survey work for the First Hit Mine was conducted via differential global positioning system (DGPS) and is appropriate as an industry standard method. A topographic surface used for coding the block model was built from a system using a detailed drone survey. The Competent Person considers that the surface is suitable for future exploration activities. |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Data spacing and distribution |
Data spacing for reporting of Exploration Results. | The majority of the data on the tenements is surface geochemistry which are adequate for defining anomalies for future exploration. |
| Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. |
Existing drilling on the periphery of historically mined areas is suitable for defining additional drill targets laterally, down dip and in the near surface environment. |
|
| Whether sample compositing has been applied. | Sample composting was applied in initial exploration drilling at the First Hit Project and always followed up by detailed sampling at 1 m interval, or less for core drilling. |
|
| Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. |
The regular spaced drilling on consistent sections, and the orientations orthogonal to the strike of the lodes, has provided consistent support to intersections of mineralisation to eliminate any bias or influence of hole angles on grades. |
| If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. |
No relationship has been noted between drillhole orientation and mineralisation. | |
| Sample security |
The measures taken to ensure sample security. | The competent person is unaware of measures taken to ensure sample security during past exploration. Chain of custody procedures are recommended for future exploration. |
| Audits or reviews |
The results of any audits or reviews of sampling techniques and data. |
No external audit of sampling techniques and data could be sourced from the documents provided to CSA Global. |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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JORC 2012 Table 1 Section 2 – Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineral tenement and land tenure status |
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. |
Tenements and location The First Hit Project tenements are located approximately 50 km due west of the town of Menzies, Western Australia on the Menzies (05) 1:250,000 and Riverina 3038 1:100,000 topographic map sheets, and include: Tenement Name Holder Grant Date Expiry Date Area (Ha) Commitments ($) M30/0099 First Hit Red Dirt Mining 27/12/1990 26/12/2032 388.7 $38,900 M30/0091 First Hit Red Dirt Mining 16/03/1990 15/03/2031 6.57 $10,000 P30/1125 First Hit Red Dirt Mining 14/05/1990 13/05/2032 54.9 $2,200 P30/1137 First Hit Red Dirt Mining 17/07/1990 16/07/2023 117 $4,680 P30/1144 First Hit Red Dirt Mining 27/02/2020 26/07/2024 7.29 $2,000 Third Party Interests The nickel rights to M30/99 & M30/91 are held by Riverina Resources Limited and Barra Resources Limited Red Dirt Mining are not aware of any material 3rd party interests or royalties. Native Title, Historical sites and Wilderness Archaeological and ethnographic studies were undertaken for M30/99 prior to further development in 2001. These studies involved an examination of the existing ethnographic data base pertaining to the mining area and an examination of known ethnographic site distribution. The studies concluded that it was unlikely that the developments will impact any sites of Aboriginal significance. This information was submitted to the Department of Aboriginal Affairs. A recent search of the Department of Aboriginal Affairs (DAA) Heritage Inquiry System indicates there are no registered Aboriginal Heritage Sites identified within any tenement covered under this MCP (DAA 2019). The mining lease was granted prior to the Native Title Act being enforced. |
| The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
The tenements are held in good standing by Red Dirt Mining Pty Ltd. |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
The Red Dirt tenements have been actively explored and mined since 1886 with the arrival of prospecting parties during the initial Western Australia gold rush. Arthur and Tom Evans founded the First Hit gold mine in 1938. Tom and Arthur worked the mine until Tom sold his share to Riverina station owner Bill Skathorpe in late 1953. Arthur and Bill worked the mine until Bill's death in 1954. George Vujcich Senior bought the mine from Arthur and Bill's estate in late 1955. George and then his son George operated the mine intermittently over a 40-year period. Barminco purchased the First Hit tenement from George's daughter in late 1996. Regional exploration activities were undertaken by Western Mining Corporation (WMC) and Consolidated Gold Operations prior to 1996 including geochemical sampling, lag sampling and auger programs. The programs covered the various regolith features with a purpose of defining broad geochemical anomalies. From 1996 to 2002 exploration and development was undertaken by Barra Resource or Barminco. Barminco Pty Ltd undertook geochemical soil geochemistry on the northern part of M30/99 between 1995 and 2000. Various combinations of multielement geochemistry were completed historically, ranging from gold-only assays to 42 element geochemistry. The following extract from the Barra Resources mine closure and production report provides an insight to the exploration and discovery of the First Hit deposit: “Barminco Pty Ltd acquired the First Hit tenement in August 1996, with the objective of exploring for and developing moderate sized high grade gold deposits. Because of Barminco’s mining and exploration activities at Two Boys, Karonie, Jenny Wren, Gordon Sirdar and Bacchus Gift mines the period between August 1996 and June 2000 saw only intermittent work at First Hit. Twenty RC drill holes were completed demonstrating the potential for high-grade underground resources. The First Hit deposit was effectively discovered in June 2000 with drill hole BFH 025 which returned 3 zones of mineralisation including 5m @ 60 g/t, 7m @ 9.0 g/t and 2m @ 3.7 g/t”. Barra Resources subsequently completed a 20 m x 25 m drill out to 240 m in depth, combined with a detailed feasibility study, culminating in the commencement of mining operations in August 2001. Barra Resources also completed RC drill programs at three prospects within the First Hit Project leases, referred to as First Hit North, First Hit South and Clarkes Well. Minor gold mineralisation was intersected in a small number of holes, but no further exploration was completed. The leases have since been owned by several companies and private operators without much additional exploration. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| _Ge_ology | Deposit type, geological setting and style of mineralisation | Regional Geology The area of interest lies on the 1:100,000 Riverina geological sheet 3038 (Wyche, 1999). The Mt Ida greenstone belt is a north-striking belt of predominantly metamorphosed (upper greenschist- amphibolite facies) mafic and ultramafic rocks that form the western boundary of the Eastern Goldfields geological terrane. The major structure in this belt is the Mt Ida Fault, a deep mantle tapping crustal suture that trends north-south and dips to the east. It marks the western boundary of the Kalgoorlie Terrane (~2.7 Ga) of the Eastern Goldfields Province against the Barlee Terrane (~3.0 Ga) of the Southern Cross Province to the west. To the east the belt is bounded by the Ballard Fault, a continuation of the strike extensive Zulieka Shear. The Mt Ida belt is widely mineralised, predominantly with discordant vein gold deposits. Associated element anomalism typically includes copper and arsenic but neither have been identified in economic concentrations. There is some nickel sulfide mineralisation associated with the komatiite component of the supracrustal rocks and the area includes a locally significant beryl deposit sporadically mined for emeralds. In the Riverina area the outcrop position of the Ida Fault is equivocal, and it is best regarded as a corridor of related structures with an axis central to the belt. The Riverina and First Hit Project area dominantly comprises metabasalts and metadolerites of tholeiitic parentage with lesser metagabbros and komatiites. Small post-tectonic granitoids intrude the sequence with locally higher-grade metamorphic conditions. Structurally, the dominant features are north-striking, east-dipping reverse faults and associated anastomosing strain zones. A conjugate set of late brittle structures striking northeast and northwest is also evident. Historical gold production in the area has been nearly 80,000 ounces with the majority coming from the Riverina South and Riverina deposits. The mineralisation exploited to date has typically been narrow mesothermal anastomosing veins. These frequently have strike and dip dimensions able to sustain small high-grade mining operations. Local Geology The local geology of the First Hit Project area comprises north-striking ultramafics, komatiites and peridotites with some sediments in the eastern part of the block. To the west there is a metabasalt unit including a prominent gabbro and further west again more peridotite with amphibolite. The general strike trend drifts to the north-northwest then back to north. The sequence includes a small felsic intrusive west of the Emerald workings and a zone of felsic schists within the eastern ultramafics. Felsic intrusives occur in the northwest corner. The local strike fabric trends north then north-northeast. The First Hit mineralisation occurs as a quartz lode varying to 4 m in thickness dipping at 70º to the east. The lode is hosted in biotite-carbonate schist within metabasalt and plunges to the south at around 50º. Numerous shafts, prospecting pits and costeans exist on the tenements and recorded production for the First Hit and First Hit North areas in the period 1930-1974 was |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| ~7478 oz Au from 6091 tonnes mined. The First Hit North workings are 130 m further to the north-northeast. References Wyche, S.1(1995). Geology of the Mulline and Riverina 1:100,000 Sheets. Geological Survey of Western Australia Grey, A.R (2002) Annual Technical Reporting, 1 July 2000 to 30 June 2001, E30/193, M30/99, M30/118, P30/869, P30/894, Riverina 1:100,000 Sheet 3038 Barra Resources Limited |
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| Drill hole Information |
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • easting and northing of the drill hole collar • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • 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. |
A summary of the relevant drillhole information has been included in Appendix 1 in this report. |
| Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. 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. |
All drilling exploration assay results are reported as weighted averages. |
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| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Relationship between mineralisation widths and intercept lengths |
• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). |
The drilling programs at the First Hit deposit reported herein are variably oblique to the true width of the deposit. All drill holes are reported as down hole widths as the true width cannot be determined. |
| Diagrams | Appropriate maps and sections (with scales) and 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 |
All appropriate maps and plans are included in the body of the report. |
| Balanced reporting |
Where comprehensive reporting of all Exploration 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. |
The assay intervals reported in Appendix 1 contain both the high grade and low-grade assay intervals. |
| Other substantive exploration data |
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances |
All information considered by the competent person to be of a material nature has been included in the body of the report. |
| Further work | The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
Exploration programs are currently being designed to test the up dip, lateral and down dip extensions of the mineralisation at the First Hit deposit. Regional multielement geochemical programs are being designed to supplement the existing geochemistry, however, advances in geochemical analysis mean that that lower level detection limits can be obtained for more elements than in previous geochemical surveys. Previous geophysical data is being obtained with a view to reprocessing the data. |
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Viking Mines Limited (ASX:VKA) ACN 126 200 280 Level 5, 126 Phillip Street Sydney NSW 2000 Ph: 02 8072 1400