Ground Floor 17 Ord Street West Perth WA 6005 Australia. PO Box 117 West Perth WA 6872 Australia. T: +61 (0) 8 9216 9011 F: +61 (0) 8 9481 0288 E: [email protected] W: www.millenniumminerals.com.au ABN 85 003 257 556 13 July 2010 Manager Company Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000 Via Electronic Lodgement Dear Sir/Madam Clarification _ High Grade Gold Intersections from Shearers and Otways Show potential for pit extensions and increased Mineral Resources • Spectacular gold zone intersections at Shearers, and shallow high grade gold intersections at Otways; • Significant gold intercepts include: 1. Shearers o 41 metres at 4.2 g/t Au from 89 metres, including 3 metres at 29.6 g/t Au from 119 metres; o 14 metres at 6.57 g/t Au from 106 metres, including 2 metres at 29.5 g/t Au from 107 metres; o 4 metres at 4.09 g/t Au from 100 metres; 2. Otways o 17 metres at 3.72 g/t Au from 16 metres, including 1 metre at 44.1 g/t Au from 17 metres; o 7 metres at 5.39 g/t Au from 79 metres, including 1 metre at 31.5 g/t Au from 83 metres; o 5 metres at 3.87 g/t Au from 2 metres; o 6 metres at 2.66 g/t Au from 23 metres; o 9 metres at 2.04 g/t Au from 0 metres; o 19 metres at 1.46 g/t Au from 0 metres; • At Shearers the new results, just 20 metres below the current proposed southern open pit, show very strong potential to expand the pit design with further infill drilling; • At Otways, shallow strong grades show continuity for 200 metres along strike from previous drilling (mineralisation still open to east).
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Shearers Otways ASX release Clarification No letter · Page 5 of 11 Figure 1: Nullagine Location Plan Table A: Nullagine Gold Project Mineral Resource Estimate November 2009 Measured
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Ground Floor 17 Ord Street West Perth WA 6005 Australia. PO Box 117 West Perth WA 6872 Australia.
13 July 2010 Manager Company Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000
Via Electronic Lodgement
Dear Sir/Madam
Clarification _ High Grade Gold Intersections from Shearers and Otways
Show potential for pit extensions and increased Mineral Resources
• Spectacular gold zone intersections at Shearers, and shallow high grade gold intersections at Otways;
• Significant gold intercepts include:
1. Shearers
o 41 metres at 4.2 g/t Au from 89 metres, including 3 metres at 29.6 g/t Au from
119 metres;
o 14 metres at 6.57 g/t Au from 106 metres, including 2 metres at 29.5 g/t Au
from 107 metres;
o 4 metres at 4.09 g/t Au from 100 metres;
2. Otways
o 17 metres at 3.72 g/t Au from 16 metres, including 1 metre at 44.1 g/t Au from
17 metres;
o 7 metres at 5.39 g/t Au from 79 metres, including 1 metre at 31.5 g/t Au from
83 metres;
o 5 metres at 3.87 g/t Au from 2 metres;
o 6 metres at 2.66 g/t Au from 23 metres;
o 9 metres at 2.04 g/t Au from 0 metres;
o 19 metres at 1.46 g/t Au from 0 metres;
• At Shearers the new results, just 20 metres below the current proposed southern
open pit, show very strong potential to expand the pit design with further infill drilling;
• At Otways, shallow strong grades show continuity for 200 metres along strike from previous drilling (mineralisation still open to east).
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Introduction Millennium Minerals Limited (“Millennium” or “the Company”) is pleased to report further results to date from a completed RC drilling programme at its Nullagine Gold Project, in the East Pilbara District of Western Australia. The initial drilling programme was designed to test for extensions to mineralisation outside the margins of the current pit designs at Golden Eagle and Shearers, targeting Inferred Mineral Resources not included in the designs. In addition, the drilling targeted gold mineralisation at the Otways prospect, located adjacent to the Shearers pit. This drilling is aimed at upgrading the Inferred Mineral Resource estimate to Measured and Indicated Final assay results have now been received for Shearers and Otways. Outstanding assay results from the final 12 holes at Golden Eagle will be reported as they come to hand.
Shearers
At Shearers, final fire assay results for the last 9 holes have been received from Ultra Trace in Perth. All results to date have been collated in conjunction with QAQC results (Certified Reference Material standards, field and laboratory duplicates), which demonstrated acceptable performance. Significant Shearers gold results include:
• SHX022: 41 metres at 4.2 g/t Au from 89 metres, including 3 metres at 29.6 g/t, 1 metre
at 9.67 g/t Au, and 1 metre at 12 g/t Au;
• SHX023: 14 metres at 6.57 g/t Au from 106 metres, including 2 metres at 29.5 g/t Au
and 1 metre at 13 g/t Au;
• SHX024: 4 metres at 4.09 g/t Au from 100 metres;
• SHX025: 9 metres at 1.17 g/t Au from 73 metres;
• SHX026: 9 metres at 1.19 g/t Au from 88 metres;
• SHX028: 7 metres at 1.04 g/t Au from 89 metres;
• SHX030: 11 metres at 1.06 g/t Au from 71 metres;
The full results from the drilling are presented in Table 1. Figure 2 details collar locations, including previous drilling, and the current proposed pits design. Intervals are expressed as metres down hole and are not true width. Many of the new and very strong intersections fall outside the current southern pit design. The results to date confirm that there are several zones with potential to expand Shearers mineral resources. Wide, locally very high grade gold intersections have now been demonstrated along over 80+ metres of strike, within the broader current southern pit design. The recent results show excellent continuity with mineralisation incorporated within current pit designs. However most of these new intersections are spatially located beneath the current southern pit design and some of the highest grades lie only 20 vertical metres below the currently designed pit floor e.g. in holes SHX022 & SHX023.
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These, and previously released results also show potential to merge the current southern and northern pit designs. With further infill drilling, it is anticipated that Measured and Indicated Mineral Resources will be defined in this area with the view to deepening the southern pit and materially increasing contained gold ounces. Gold mineralisation at Shearers is hosted by bedding semi‐conformable, northerly trending thin quartz stringers predominantly within weakly metamorphosed conglomerate, mudstone and sandstone units of the Mosquito Creek Formation and dips between 70 and 90 degrees to the west (Figure 3).
Otways
At Otways, located approximately 300 metres to the southeast of Shearers, the results of the 22 hole RC programme have now been received from Ultra Trace. All results to date have been collated in conjunction with QAQC results (Certified Reference Material standards, field and laboratory duplicates), which demonstrated acceptable performance. Significant Otways gold results include:
• OWX021: 17 metres at 3.72 g/t Au from 16 metres, including 1 metre at 44.1 g/t Au from 17 metres;
• OWX001: 7 metres at 5.39 g/t Au from 79 metres, including 1 metre at 31.5 g/t Au from 83 metres;
• OWX003: 5 metres at 3.87 g/t Au from 2 metres, including 1 metre at 13.5 g/t Au from 3 metres;
• OWX012: 19 metres at 1.46 g/t Au from 0 metres, including 2 metres at 4.91 g/t Au from 0 metres;
• OWX010: 6 metres at 2.66 g/t Au from 23 metres;
• OWX021: 9 metres at 2.04 g/t Au from 0 metres;
• OWX001: 6 metres at 1.78 g/t Au from 68 metres;
• OWX001: 5 metres at 1.89 g/t Au from 96 metres, including 1 metre at 5.26 g/t Au from 99 metres;
• OWX018: 6 metres at 1.35 g/t Au from 28 metres;
• OWX002: 13 metres at 1.25 g/t Au from 107 metres;
The full results from the drilling are presented in Table 2. Figure 4 details collar locations, including previous drilling, and the current proposed pits design. Intervals are expressed as metres down hole and are not true width. Results show moderate to broad zones of shallow mineralisation which, with further planned extension and infill drilling, has potential to further upgrade the current Indicated and Inferred Mineral Resource estimate to Measured and Indicated. The assays confirm that the mineralisation strikes for over 600 metres, and provides good support for potential extension a further 150 metres further to the east. Gold mineralisation at Otways is hosted by east‐north easterly trending quartz veins within siltstone, sandstones and conglomerates of the Mosquito Creek Formation and dips between 80 and 90 degrees to the northwest (Figure 5).
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Summary The Company is very pleased with the results from the RC drilling at Shearers and Otways. The primary objective for this round of drilling was to improve the confidence levels of the mineral resources estimates at Shearers. At Otways the objective is to upgrade the confidence levels of the Mineral Resource estimates. These objectives are now more likely to be achieved. The potential for continuing development of prospectivity indicated by the drilling to date in and around Golden Eagle, Shearers and Otways also continues to be encouraging, and will warrant further exploration work both on strike and at depth Outstanding assay results from Golden Eagle will be reported as they come to hand. The geological data collected from the work at all three deposits will now be added to the existing databases so that revised Mineral Resource estimates can be determined. This work is expected to take approximately 8 weeks from receipt of final assay results.
Background ‐ Nullagine Gold Project
The Nullagine Gold Project is a 1.15 million ounce JORC compliant gold resource contained within 7 deposits on granted mining leases. The largest deposit is Golden Eagle located approximately 10 km south of the township of Nullagine (Figure 1) and contains 68% of the total Mineral Resource inventory. Much of the permitting and design work for an average 1.15 million tonne per annum Carbon‐In‐Leach (CIL) processing facility has been completed.
Brian Rear CEO ENQUIRIES: Brian Rear
Telephone: +61 (8) 9216 9011
Competent Persons Statement
The information in this report that relates to exploration results was compiled by Mr I Hay (MAIG), a geologist employed full‐time by Millennium Minerals Limited. Mr Hay is a member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to this style of mineralization and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Codes for Reporting of Mineral Resources and Ore Reserves”. Mr Hay consents to the inclusion in the report of the matters in the form and context in which it appears.
Qualifying Statement
This release may include forward‐looking statements. These forward‐looking statements are based on Millennium’s expectations and beliefs concerning future events. Forward‐looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Millennium, which could cause actual results to differ materially from such statements. Millennium makes no undertaking to subsequently update or revise the forward‐looking statements made in this release, to reflect the circumstances or events after the date of this release
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Figure 1: Nullagine Location Plan
Table A: Nullagine Gold Project Mineral Resource Estimate November 2009
1. Figures in Table may not sum due to rounding. 2. The Mineral Resources were estimated using Multiple Indicator Kriging methodology for grade estimation by Hellman and
Schofield Pty Ltd. 3. The Otways, Little Wonder and Golden Gate satellite deposits namely Falcon, Harrier, Crow, G-Reef and Condor were
estimated using Ordinary Kriging methodology for grade estimation by CSA Global. 4. The table excludes royalties payable to third parties. 5. The Golden Gate and Bartons deposits are the subject of a mining licence agreement whereby Millennium has the sole and
exclusive right to explore and mine gold and other minerals. Millennium then is required to pay 25% of the net proceeds to the tenement owners (Livestock Marketing Pty Ltd, Duncan Thomas Young, Simba Holdings Pty Ltd and Ronald Lane Swinney) after mining and processing cost deductions.
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Compliance Statements
The reported Mineral Resource as it relates to Golden Eagle, Bartons, Shearers, All Nations, Little Wonder and Golden Gate ABCD reefs has been compiled by Mr Nic Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. The Competent Persons listed consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. The reported Mineral Resource as it relates to the Otways, Little Wonder and Golden Gate satellite deposits was completed under the overall supervision and direction of Steven Hodgson, MAIG, of CSA Global who is a Competent Person as defined by the Australasian Code for the Reporting of Exploration Results, Mineral Resources or Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this report that relates to in-situ Mineral Resources based on information provided by Millennium Minerals Limited. The Mineral Resource estimate was compiled by Steven Hodgson, MAIG, of CSA Global. David Williams, MAusIMM, of CSA Global was responsible for the technical review of the Mineral Resource estimate.
Figure 2: Shearers Deposit with historical & recent drilling, mineralisation and current proposed pit outline
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Figure 3: Shearers cross section SHX023
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Figure 4: Otways Deposit with historical & recent drilling, and mineralisation trends
1. Cut offs for reported results are: minimum 2 metres at ≥0.5 g/t Au, or 1 metre ≥ 1.0 g/t Au. 2. All holes drilled with Reverse Circulation with face sampling hammer. 3. Easting and Northing is based on the GDA 94 datum. 4. Collar co‐ordinates are accurate to ≤5 metres (multipoint averages with handheld GPS),
or licensed surveyor (accurate to ≤0.1 metres but rounded in tables; 5. Azimuths are expressed as magnetic (true north vs. magnetic <1.5 degrees). 6. Intervals are expressed as metres down hole and are not true width 7. Assay method is 40g fire assay, AAS finish. 8. NSA – No Significant Assays