1 ASX/Media Release (ASX: MZN) 28 th April 2017 Marindi Metals Ltd ABN 84 118 522 124 Level 3, 35 Havelock Street West Perth WA 6005 Australia Contact: Joe Treacy Managing Director Phone: 08 9322 2338 Email: [email protected]Directors: Ross Ashton John Hutton Geoff Jones Joe Treacy Issued Capital: 1,327m fully paid ordinary shares, 64m unlisted options Ex. 2.5c Expiring 31 December 2019 March 2017 Quarterly Activities Report HIGHLIGHTS • The Company moved to 100% ownership of the Prairie Pb Zn Project with the final payment of $325,000 being made to Prairie Mining Ltd during the quarter. • Positive metallurgical results received from beneficiation (HMS) sampling of the large Wolf deposit with further test work planned. • CSIRO report on the Caranbirini project received and has outlined several new target areas for follow up. • Scoping studies commenced on the Prairie deposit to review a mine truck and treat option given the strong zinc price environment. • Several high priority targets identified at the Yalco JV expected to be tested this year. • The Company finished the quarter with $3.5m in cash. For personal use only
23
Embed
March 2017 Quarterly For personal use only - ASX2017/04/28 · As disclosed to the ASX on the 20 December 2016, Kidman Resources Ltd (ASX: KDR) largest shareholder Capri Trading Pty
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
64m unlisted options Ex. 2.5c Expiring 31 December 2019
March 2017 Quarterly Activities Report
HIGHLIGHTS
• The Company moved to 100% ownership of the Prairie Pb Zn Project with the final payment of $325,000 being made to Prairie Mining Ltd during the quarter.
• Positive metallurgical results received from
beneficiation (HMS) sampling of the large Wolf deposit with further test work planned.
• CSIRO report on the Caranbirini project received
and has outlined several new target areas for follow up.
• Scoping studies commenced on the Prairie
deposit to review a mine truck and treat option given the strong zinc price environment.
• Several high priority targets identified at the
Yalco JV expected to be tested this year.
• The Company finished the quarter with $3.5m in cash.
For
per
sona
l use
onl
y
2
Newman Base Metal Project (Marindi 100%) During the quarter Marindi made its final payment of $325,000 to Prairie Mining Limited (ASX: PDZ; “Prairie” to complete acquisition of 100% of the Newman Base Metal Project in WA. Under the terms of the acquisition Prairie will maintain a 2.5% Net Smelter Return (“NSR”) Royalty over the project. Marindi believes strongly in the potential of the Newman Project to host a major base metal deposit. Moving to 100% ownership will provide greater exposure to any discovery as well as allowing the Company to evaluate development options for the Prairie deposit and Wolf prospect against the backdrop of a continued improvement in the zinc price. The Company has commenced scoping study work including an optimisation on the Prairie resource to examine the potential economics of a mine, truck and treat scenario. If this initial work is encouraging then baseline environmental surveys will commence this quarter. Prior to Marindi’s ownership, approximately $16 million was expended on the Newman Base Metal Project in the period 2006 - 20081. During this period, the Prairie deposit was the subject of a feasibility study, however the Global Financial Crisis and falling metal prices meant the study was never completed. Marindi retains the benefit of the data generated from the substantial geological, metallurgical and other work that was undertaken at this time. Wolf Prospect Metallurgical Test work The Wolf prospect is located approximately 3km north west of the Prairie Deposit, and has been a primary focus of Marindi’s attention due to the identification of a very large accumulation of zinc metal, primarily in the form of the zinc chlorite mineral baileychlore, over a strike of 1.75km and up to 400m in width. Metallurgical test work on the baileychlore-hosted zinc is now being managed by Core Resources, a Brisbane based specialty process and resource consultancy with specific experience in zinc oxides. Results from beneficiation test work, including heavy media separation have been encouraging and Marindi will now review this work prior to committing to a new phase of test work. The geological review of the project was delayed due to other work commitments but is expected to be completed this quarter. Upon the completion of the geological review and metallurgical test work, the Company will be in a strong position to determine the appropriate follow up program at the Prairie Downs Base Metal Project which is likely to include drilling at Wolf and Prairie prospects, drilling of regional geochemical, structural and geophysical targets proximal to the Prairie Downs Fault Zone and a mining scoping study over the Prairie and Wolf prospects. Forrestania Lithium Project
Summary The drilling at the Gem pegmatite mining lease tested 5 different pegmatite intrusives. All dipped to the east or were sub vertical with the exception of the Phantom pegmatite which dipped to the west and this, coupled with the westerly drilling direction, resulted in the significant original intersection reported in GPRC06 (30m@3% Li2O). Subsequent drilling confirmed that zone to be a maximum of 10m thick and follow up drilling indicated limited depth potential (refer ASX release 27 March 2017). Drilling along strike has verified the limited strike potential with low grade mineralisation being
1 Refer ASX release dated 25 May 2015
For
per
sona
l use
onl
y
3
returned from the latest round of drilling. The potential of the mining lease to host significant Li2O mineralisation has been substantially downgraded. The disseminated nickel sulphide target remains to be tested. Gem Pegmatite drilling. As reported to the ASX on 27 March 2017 the first phase of drilling (totalling 1519 metres) was completed in early March with the completion of 13 holes, of which all but hole GPRC21 were located on the northern portion of the lease. Results above 1% Li2O were returned from holes GPRC25 and GPRC26. After the first round of drilling a further 9 holes GPRC 32-40 were drilled at various locations on the northern part of the lease which are shown on the attached plan and detailed in Table 1. Holes GPRC32 to GPRC35 were drilled at 40m and 80m along strike of GPRC06 to intersect the Phantom pegmatite along strike and at depth, and also to test for a plunge component to the high-grade mineralisation intersected in GPRC06. No significant Li2O assays were returned although the fractionated nature of the LCT pegmatite was confirmed by the anomalous suite of associated elements (refer Table 2). Holes GPRC36 and GPRC37 were drilled to test down dip of a series of costeans hosting LCT pegmatite. The drilling confirmed the gentle easterly dip however no significant assays were returned. Holes GPRC38 to-GPRC40 were drilled to test pegmatite and rubellite reported from historic RAB drilling over 180m distance associated with anomalous tantalum in soils. Anomalous but low grade results were returned from all holes and a series of flat lying pegmatites are interpreted to be the source of the surface mineralisation.
Percussion chips from GPRC25, 73-76m grading 0.84% Li2O and containing Rubellite (gem tourmaline) crystals.
The general impression is of flat easterly dipping and lesser sub vertical to westerly dipping pegmatites in the range of 1-5m thick, commonly weathered to 50m vertical depth. Where intersected below the level of oxidation the pegmatites host modest grade lithium oxide mineralisation, typically in the range 1% to2%. The potential to develop a significant tonnage of Li2O bearing pegmatitic material within the mining lease is now considered low.
For
per
sona
l use
onl
y
4
Nickel Potential The Company is yet to drill test the disseminated nickel sulphides intersected in historic diamond drill hole MHD14 and this is likely to occur next quarter. As previously reported2 Marindi has determined that diamond hole MHD14 drilled in the 1970’s by a previous explorer terminated in disseminated nickel sulphide mineralisation at a depth of 396.25m. The last 2.75m of the hole was logged as containing disseminated pentlandite (nickel sulphide and native copper) within a dunitic unit and averaged 0.47% Ni to the end of hole. The Gem pegmatite lease has been in private hands since the mid 1980’s and as such has not been subject to any modern nickel exploration techniques or exploration activity. Regional Exploration (Marindi 100%) The Forrestania Belt is emerging as a world class lithium district and Marindi has over 850 square kilometres under application, the largest tenement holding in the Forrestania Belt 3, and where active exploration and resource delineation programs by Kidman Resources (ASX KDR) are ongoing. The Mt Hope mining lease hosting the Gem prospect comprises less than 0.5% of Marindi’s tenure and as such represents a small portion of our holdings in the belt and does not alter the prospectivity and strategy behind the original decision to acquire the tenements. The first of seven Exploration Licence applications within the Forrestania Lithium Project (EL74/592) has been granted with the remainder expected to be granted within the next few months. Upon grant a first pass soil sampling program to test known pegmatites is planned. The Company continues to increase its footprint in the area and recently applied for EL15/1565 on the neighbouring Johnson Lake greenstone belt where open file data indicates the presence of Li bearing pegmatites. Northern Territory Projects Caranbirini Project (Marindi 100%) Subsequent to the quarter the CSIRO completed their preliminary report and the Company is currently assessing its implications. The report included a 3D geological model with a re-interpretation of airborne EM data flown by Marindi previously. This data, coupled with the recently acquired ground gravity data and a structural interpretation has significantly altered the geological understanding of the Caranbirini area. Several new target areas have been identified and Marindi will make an announcement regarding the exploration for this field season once the final report has been received and the new information considered. Yalco (Teck Australia earning 70%) Several high-quality targets have been identified and an application to the Northern Territory Geological Survey (NTGS) for co-funding has been submitted. If successful, drilling may be undertaken in the coming field season.
2 Refer ASX release 10 November 2016 3 Refer ASX release dated 17 May 2016
For
per
sona
l use
onl
y
5
Oakover Manganese Project (Marindi 100%) The Oakover Manganese Project lies approximately 80km east of Newman in Western Australia’s East Pilbara Manganese Province, 100km south of the Ant Hill Manganese Deposit owned by Mineral Resources Ltd and about 50km from the Nicholas Downs Manganese Deposit. A Scoping Study report on the project has been received and concludes that the project is not considered economic at current manganese prices. The Company is considering its options regarding this project. Corporate Kidman Action Marindi lodged its claim on 5th December 2016. Court-supervised mediation commenced on 18 April 2017 and has been adjourned. A date for further mediation discussions has not yet been set. In the absence of a resolution through mediation, the matter remains listed for trial in Supreme Court of Western Australia commencing 29 May 2017. More information on the Company’s claim is detailed in Marindi’s ASX announcement dated 14 November 2016. Rox Action Marindi lodged its claim on the 13th December 2016. Court supervised mediation is scheduled for 12 May 2017. More information on the Company’s claim is contained in Marindi’s ASX announcement dated 14 November 2016 Capri Action As disclosed to the ASX on the 20 December 2016, Kidman Resources Ltd (ASX: KDR) largest shareholder Capri Trading Pty Ltd acquired 50,000 shares in Marindi on 28 November 2016 for a total consideration of approximately $800. Capri Trading Pty Ltd subsequently issued a summons against the directors of Marindi individually for orders for a pre-action discovery pursuant to Order 26A Rule 4 of the Supreme Court Rules, which was served on 8 December 2016. The Court heard the case on 17 February 2017 and Master Sanderson handed down his judgement on 28 February 2017. The ruling found in the Marindi directors’ favour and the claim by Capri was dismissed and costs awarded to Marindi. Finance
During the quarter the Company completed its part underwriting agreement with Argonaut Securities with respect to the exercise of 100 million options at 2c per share for a total consideration of A$2m. Cash at the end of the quarter was $3.516m including a payment of $325,000 to Prairie Mining Ltd as part of the completion of the acquisition of the Prairie Downs Project. The Company’s issued share capital was 1,327,050,994 following both the issue of shares as part of underwriting agreement and the issue of 4,076,641 shares as consideration for acquisition of interest in the Gem Mining Lease.
For
per
sona
l use
onl
y
6
Joe Treacy Managing Director Marindi Metals Ltd Competent Persons Statement Information in this release that relates to Exploration Results is based on information prepared by Mr Joseph Treacy a Member of the Australasian Institution of Mining and Metallurgy and the Australian Institute of Geoscientists Mt Treacy is the Managing Director of Marindi Metals Ltd, a full time employee and shareholder. Mr Treacy has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities 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 Treacy consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.
For
per
sona
l use
onl
y
7
Table 1 – Tenements as at 31 March 2017
Lease Lease Holder Locality Status Current Area
(blocks) Interest E46/1140 Forrestania Pty Ltd WA Granted 23 100% E74/0591 Forrestania Pty Ltd WA Application 70 100%
E77/2364 Forrestania Pty Ltd WA Application 20 100%
E74/0592 Forrestania Pty Ltd WA Granted 70 100%
E74/0586 Forrestania Pty Ltd WA Application 20 100%
E77/2361 Forrestania Pty Ltd WA Application 3 100%
E77/2348 Forrestania Pty Ltd WA Application 70 100%
E46/1104 Forrestania Pty Ltd WA Granted 47 100%
E46/1105 Forrestania Pty Ltd WA Granted 26 100%
E77/2345 Forrestania Pty Ltd WA Application 20 100%
E77/2346 Forrestania Pty Ltd WA Application 20 100%
E15/1565 Forrestania Pty Ltd WA Application 23 100%
E52/1939-I Marindi Metals Limited WA Granted 20 100%
A0648 Marindi Metals Limited NT Granted 0 100%
EL29021 Marindi Metals Limited NT Granted 46 100%
EL28951 Marindi Metals Limited NT Granted 3 100%
EL28007 Marindi Metals Limited NT Granted 13 100%
EL28006 Marindi Metals Limited NT Granted 19 100%
EL25467 Marindi Metals Limited NT Granted 100 100%
EL28952 Marindi Metals Limited NT Granted 3 100%
EL25313 Marindi Metals Limited NT Granted 8 100%
E52/3119 Marindi Metals Operations Pty Ltd WA Application 47 100%
E52/3344 Marindi Metals Operations Pty Ltd WA Granted 101 100%
E52/3345 Marindi Metals Operations Pty Ltd WA Granted 42 100%
E52/3362 Marindi Metals Operations Pty Ltd WA Application 30 100%
E52/3411 Marindi Metals Operations Pty Ltd WA Application 99 100%
E52/3415 Marindi Metals Operations Pty Ltd WA Granted 8 100%
E52/3491 Marindi Metals Operations Pty Ltd WA Application 30 100%
E52/3444 Marindi Metals Operations Pty Ltd WA Application 31 100%
E52/1758 Marindi Metals Operations Pty Ltd WA Granted 68 100%
E52/1926 Marindi Metals Operations Pty Ltd WA Granted 44 100%
E52/3103 Marindi Metals Operations Pty Ltd WA Granted 75 100%
E52/3230 Marindi Metals Operations Pty Ltd WA Granted 9 100%
E52/3231 Marindi Metals Operations Pty Ltd WA Granted 17 100%
E52/3241 Marindi Metals Operations Pty Ltd WA Granted 32 100%
E52/3283 Marindi Metals Operations Pty Ltd WA Granted 57 100%
E52/3284 Marindi Metals Operations Pty Ltd WA Granted 72 100%
E52/3410 Marindi Metals Operations Pty Ltd WA Granted 68 100%