Microsoft Word - 20151015_ASX_Announcement_New_NT_Project
Exploration Office
Unit 2, 81 Harrison Road
Dudley Park
SA 5008
ABN: 96 110 336 733
Tel: +61 8 8245 4900
Fax: +61 8 8245 4999
www.monaxmining.com.au
For Immediate Release Thursday 15 October 2015
ASX RELEASE
Landmark Acquisition of NT Gold Project
HIGHLIGHTS
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Monax signs landmark deals to take control of multiple mining and exploration leases in NT's Pine Creek gold camp
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Visible gold observed in reconnaissance samples
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Assays of up to 257 g/t gold from reconnaissance rock chip sampling
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Monax planning further work in 2015 with a view to drilling in early 2016
Monax Mining Ltd ('Monax') (ASX:MOX) is pleased to announce it has agreed to terms with several private holders of Mining Leases and Exploration Licences in the Mt Ringwood area, approximately 120km south of Darwin (Figure 1).
This outcome is the culmination of significant efforts in bringing together a number of tenements held by private interests into what Monax views as a significant gold project. The Pine Creek area is renowned for in hosting shallow, high grade gold mineralisation. Mining in the area has taken place more or less continuously since the 'gold rush' in the area during the 1870's.
Monax conducted field reconnaissance visits to inspect the leases and exploration tenements and visible gold was observed in samples collected by one of the leaseholders (Plate 1). Further visible gold was observed within another lease from several old prospecting pit (Plate 2).
Plate 1. Example of Gold collected on ML 30232 by leaseholder (all of the rocks shown have visible gold - not assayed or included in reported results)
Plate 2. Visible gold within quartz from Mt Ringwood Mining Leases (Note: none of the samples above have been assayed and are not included in samples reported below). These samples were collected during a one day field reconnaissance undertaken by Monax.
'Monax is excited about the new project and is looking forward to commencing exploration with a view to drilling early in 2016' Monax Mining Managing Director, Gary Ferris, said today.
'The Pine Creek area is highly prospective for gold and was a key area Monax was targeting for a new project. The history of discovery and current mining operations suggests the area still has potential for further discoveries' he said.
'Monax was seeking a project with a cheap entry and the ability to quickly be in a position to undertake a drilling program in the search for a potential discovery. The area is currently being prospected by private individuals with specimen gold being found, providing confidence that these quartz reefs still have potential for a major discovery of a high-grade system' he said.
Monax undertook a one day reconnaissance and collected six rock chip samples on the Mining Leases. The results are shown below, with one sample reporting 257 g/t gold.
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Sample No.
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Easting
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Northing
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Au (g/t)
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295104
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762395
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8538576
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0.09
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295105
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762424
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8538524
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0.98
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295106
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762374
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8538429
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0.44
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295107
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762374
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8538429
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257
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295108
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762525
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8538606
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4.33
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295109
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762622
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8538666
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10.4
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(Note: Sample details, laboratory details included in Table 1)
'Monax is excited about the results from the initial inspection and the observation of visible gold at the surface is seen as highly encouraging' Monax Mining Managing Director, Gary Ferris, said today.
A review of historical exploration shows limited exploration across the tenements. Anglogold Australia explored part of the eastern part of the area between 1993 to 2001. They collected rock chip samples within the eastern part of EL 29966 with some elevated gold reported. Two samples reported >10g/t gold and four samples reported >1 g/t gold (Figure 2). These areas
were not visited as part of the reconnaissance trip, but will be inspected during the next field inspection.
Transaction Details
Monax has negotiated an Option to Purchase arrangement with the four leaseholders whereby total upfront consideration payable by Monax equals the issue of 14,000,000 shares in the Company to the vendors. Completion of these transactions is conditional upon the approval of the issue and allotment of 14,000,000 shares to the vendors by the Company's shareholders at the Annual General Meeting (AGM). The shares will be issued to the vendors within five business days of the approval of the resolution and in any event no later than 3 months after the date of the AGM.
The table below summarises the transaction details for the Option to Purchase arrangements.
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Details
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Agreement
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Agreement
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Agreement
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Agreement
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Vendor
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Glen Teece
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NT Gold Pty Ltd
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Wladimir Falko
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CR & E Pty Ltd
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Shares to be issued
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2,571,429
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4,428,571
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4,428,571
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2,571,429
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Mining leases
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MLN894 MLN893
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ML30232
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ML30232
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ML29978
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The Option to Purchase arrangements allows Monax to explore the tenements for two years and if Monax elects to purchase the tenements outright, Monax will pay each vendor an agreed cash settlement.
Monax has also negotiated a Farm-In deal with North Queensland Mining Pty Ltd (NQM) for two Exploration Licences (EL 29966 & EL 29976). Under the Farm-In deal, Monax is required to spend $200,000 over 4 years to earn a 90% interest in the Exploration Licences. If Monax holds a 90% interest in the Exploration Licences, NQM can elect to contribute to future spending based on a 10% interest or convert its interest to a 1% NSR.
Monax is currently preparing documentation for the abovementioned transactions.
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Gary Ferris Duncan Gordon
Managing Director Adelaide Equity Partners
Monax Mining Investor Relations
Ph: (08) 8245 4900 Ph: 0404 006 444
Email: [email protected]
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies 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 Ferris consents to the inclusion of the information in this report in the form and context in which it appears.
Figure 1. Location of Mt Ringwood Project
Figure 2. Location of historical rock chip samples on Exploration Licences from NT Geological Survey database highlighting anomalous gold samples. Red dots are samples collected by Monax and included in the report.
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
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Criteria
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JORC Code explanation
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Commentary
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Sampling techniques
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Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
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Aspects of the determination of mineralisation that are Material to the Public Report.
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In cases where 'industry standard' work has been done this would be relatively simple (eg '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 (eg submarine nodules) may warrant disclosure of detailed information.
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Drilling techniques
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Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).
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Drill sample recovery
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Method of recording and assessing core and chip sample recoveries and results assessed.
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Measures taken to maximise sample recovery and ensure representative nature of the samples.
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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.
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Logging
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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.
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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
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The total length and percentage of the relevant intersections logged.
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Sub-sampling techniques and sample
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If core, whether cut or sawn and whether quarter, half or all core taken.
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If non-core, whether riffled, tube sampled, rotary split, etc and
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Criteria
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JORC Code explanation
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Commentary
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preparation
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whether sampled wet or dry.
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For all sample types, the nature, quality and appropriateness of the sample preparation technique.
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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
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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.
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Whether sample sizes are appropriate to the grain size of the material being sampled.
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The laboratory assay duplicates and standards as a standard procedure with all results within error of expected results.
The sample sizes are considered appropriate for reconnaissance sampling of quartz reefs.
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Quality of assay data and laboratory tests
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The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
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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.
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Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
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Rock chips were assayed in a commercial laboratory using standard methods for gold.
Gold was determined by fire assay with a nominal 40g charge analysed. Au is determined with AAS finish.
Laboratory QA/QC samples and sample duplicates were assayed by the laboratory with all results within expected error range. Samples were assayed at Bureau Veritas in Adelaide.
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Verification of sampling and assaying
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The verification of significant intersections by either independent or alternative company personnel.
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The use of twinned holes.
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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
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Discuss any adjustment to assay data.
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Not Applicable - no drilling results reported. No assay results have been adjusted.
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Location of data points
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Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
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Specification of the grid system used.
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Quality and adequacy of topographic control.
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Rock chip sample locations were collected using a hand held Garmin GPS (+/- 5m accuracy).
MGA94 (Zone 52)
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Data spacing and distribution
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Data spacing for reporting of Exploration Results.
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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.
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Whether sample compositing has been applied.
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The data is not appropriate for use in estimating a Mineral Resource and is not intended for such use.
No sample compositing was undertaken.
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Orientation of data in relation to geological structure
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Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
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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.
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The samples were collected at selected sites and is is unknown if this results in biased or unbiased sampling.
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Criteria
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JORC Code explanation
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Commentary
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Sample
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security
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company for delivery to the Adelaide Laboratory by a Monax
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representative. All appropriates measures were taken for sample
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security.
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Audits or reviews
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Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
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Criteria
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JORC Code explanation
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Commentary
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Mineral tenement and land tenure status
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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.
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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.
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The areas sampled are located on Mining Leases held by private individuals. Monax has negotiated an Option to Purchase deal with each leaseholder the details of which are outlined within this ASX Release.
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The Leases are free of any known impediments.
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Exploration done by other parties
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A variety of exploration companies have undertaken work within the area of the two Exploration Licences. Western Mining (EL 2362) undertook exploration along the western boundary of the area. Exploration comprised helicopter reconnaissance and rock chip sampling, mapping, soil sampling and costeaning. Western Mining drilled 3 Diamond holes at C3 anomaly and 5 RC holes at C4 anomaly with some elevated gold values reported. Anglogold Australasia and Acacia Resources explored the eastern part of the area. Limited rock chip sampling reported some elevated gold up to 10.9 g/t (CR 2001- 0225). The Goodall Gold Mine located adjacent to EL 29966 produced 4095 kg of gold with a head grade of 1.99 g/t Au between 1988-1993.
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Geology
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Drill hole Information
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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:
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easting and northing of the drill hole collar
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elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
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dip and azimuth of the hole
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down hole length and interception depth
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hole length.
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If the exclusion of this information is justified on the basis that the
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Criteria
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JORC Code explanation
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Commentary
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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.
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Data aggregation methods
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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.
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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.
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The assumptions used for any reporting of metal equivalent values should be clearly stated.
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Not Applicable - no drilling results reported.
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Relationship between mineralisation widths and intercept lengths
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These relationships are particularly important in the reporting of Exploration Results.
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If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
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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').
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Not Applicable - no drilling results reported.
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Diagrams
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Map showing tenement locations is included in Release and results are presented in Table format within the Release.
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Balanced reporting
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Results of all samples are included in Table within ASX Release.
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Other substantive exploration data
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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.
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Historical rock chip results are discussed in the text.
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Further work
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The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
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Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
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Monax is planning detailed mapping and sampling with a view to possible drilling in early 2016.
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