ASX
ASX Announcement
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ASX Code: ARM
Date: 29 April 2016
Aurora Minerals Group of Companies
Diversified minerals exploration via direct and indirect interests
Predictive Discovery Limited (ASX: PDI) - 43.1%
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Gold Exploration / Development in Burkina Faso
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Graphite, Lithium, Gold, Silver, Base Metals, Molybdenum and Tungsten Exploration in South Korea
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Gold Exploration/ Development in Burkina Faso
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Base metals, iron and gold exploration
Peninsula Mines Limited (ASX: PSM) - 32.3%
Golden Rim Resources Ltd (ASX: GMR) - 13.4%
Aurora Western Australian Exploration - 100%
Contact Details
Principal & Registered Office
Suite 2, Level 2
20 Kings Park Road West Perth WA 6005
Martin Pyle - Managing Director Tel: +61 8 6143 1840
Karen Oswald - Media and Investor Relations Tel: +61 423 602 353
Ken Banks - Investor Relations Tel: +61 402 079 999
Website
www.auroraminerals.com
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QUARTERLY ACTIVITIES REPORT
ENDING 31 MARCH 2016
Aurora Minerals Limited ASX: ARM ("Aurora" or "the Company") and its subsidiary and associate companies conduct exploration across three continents with a focus on South Korea (Peninsula Mines Limited), West Africa (Predictive Discovery Limited and Golden Rim Resources Limited) and Western Australia (Aurora Minerals Limited).
Highlights:
Highlights from the quarter to 31 March 2016 are as follows:
Peninsula Mines Limited (Peninsula)
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Multiple hard rock lithium and graphite projects have been secured under tenure applications in South Korea with high- impact exploration programs underway.D1,2,3
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High grade graphite was recorded from historical sampling at Daewon and Wolmyeong. Field checking is underway and will include sampling for metallurgical analysis.D5,6
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Lithium tenements cover prospective geology adjacent to the Boam Lithium Mine where an aeromagnetic high is interpreted to represent the igneous intrusive source.D7
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A share placement was oversubscribed and enabled Peninsula to raise
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Aurora's loan to be converted to equity subject following PSM shareholder approval (granted 28 April) on same terms as share placement. D4
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Encouraging new gold results in drilling by Cape Clear (CCM) at the British Banner JV in Victoria were announced mid-April 2016. P1
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Toro Gold limited, through their JV with Predictive, has commenced Diamond drilling on the Kokoumbo permit in Côte D'Ivoire.P2
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Soil sampling by Toro has extended the gold-in-soil anomaly at Boundiali permit, Côte D'Ivoire.P3
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A joint venture agreement with an Ivorian company has doubled the area of ground operated under the Toro JV in prime Birimian Greenstones.P4
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Golden Rim has renegotiated the Balogo sale agreement with MNG Group to include other Burkina Faso projects. The sale concluded on 31 March 2016 with a final payment of US$3.15M.G1
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Golden Rim has also entered into a JV with MNG to develop Korongou, thereby retaining an interest in their most promising Burkina Faso project.G1
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Aurora cash at bank ~$3.3M (parent) and ~$5.5M (consolidated group) at end of quarter.
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Value of cash and investments as at 31 March 2016 ~$8M (~7c/share).
$1.58M which will be applied to lithium and graphite exploration in the high-tech industrial jurisdiction of South Korea.D4
Predictive Discovery Limited (Predictive)
Golden Rim Resources Limited (Golden Rim)
Corporate
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A table of Aurora's subsidiary and associate company investments and market valuations as at 31 March 2016 is shown below.
Aurora Minerals Group Investments
Aurora Minerals Group Investments
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Shares (M)
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%
Interest
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Price
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Mkt Val
$M
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Totals
$M
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NTA
c/share
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Golden Rim
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193
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13.4%
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$0.005
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$1.0
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Predictive Discovery
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572
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43.1%
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$0.004
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$2.3
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Peninsula Mines*
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139
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32.3%
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$0.016
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$2.2
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Subtotal
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$5.5
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$5.5
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Total value of investments
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4.7
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Cash as at March 2016
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$3.3
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2.8
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Total NTA
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$8.8
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7.5
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Value of Cash and investments approximately 7.5c per share as at 31 March 2016.
*Included in the above table are an additional 31M PSM shares to be issued to Aurora to convert its $0.5M loan into Peninsula fpo shares at
$0.016c/share (shareholder approval for which was granted on 28 April 2016).
At the date of this report the market value of the above investments has risen substantially such that the NTA approximates $10M or 9c/shares.
Peninsula Mines Limited (Aurora 32.3%)
Peninsula Mines' focus of exploration is South Korea, where its wholly owned Korean subsidiary, Suyeon Mining Co. Ltd. (SMCL), holds tenure over ground prospective for:
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Lithium near the Boam Lithium Mine, in the east of the country
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Graphite, including tenure over Korea's largest historical graphite mine at Wolmyeong,
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Molybdenum-tungsten at the Daehwa Project, and
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Gold and base metals at the Osu Project. See Figure 1, below.
Exploration on the graphite and lithium prospects has commenced with historical data review, mapping and sampling, to be followed by geophysics and drilling on the prospects deemed most prospective. Exploration of the Daehwa and Osu Projects was ongoing.
Figure 1: Location Plan of Peninsula's South Korean Projects
NB: Tonggo and Ubeong Lithum Prospects not shown on this map are located adjacent to the Dongsugok Prospect
Lithium: D8
Peninsula's Korean subsidiary, SMCL, has filed tenement applications over several blocks adjacent to and in the vicinity of the Boam Lithium Mine, where pegmatites are considered prospective for lithium and tin mineralisation. This area is referred to as the Dongsugok Project.
The ore at the Boam mine is described as greisen style mineralisation associated with a blind intrusive body, evident from regional aero magnetics, see Figures 3 and 4 below. The lithium at Boam occurs as spodumene and lepidolite mica in brecciated quartz veins associated with pegmatite and aplite dykes. Historically, pegmatites in the area were mined for tin, with a number of small tin mines located to the north and west of Boam mine.
Korean statewide geochemistry shows significant lithium anomalism to the northwest of Boam Mine, (See Figure 5 below) where SMCL has applied for 53 tenements over seven pegmatitic lithium prospects making up the Daehyeon Project.
Each of the Korean tenement blocks covers an area of approximately 275 hectares each.
Exploration is underway and the prospects will each be reviewed on their merits and prioritised accordingly.
Figure 2: Lithium mineralised breccia sample, Boam Mine (not an asset of the company)