Matsa Resources Limited
LIMITED
ABN 48 106 732 487
ASX Announcement 20 May 2015
Drilling Update at Symons Hill
Highlights
Diamond drillhole 15DDSH07 has tested conductor C56 and is expected to be completed today. The rig will immediately commence drillhole
15DDSH08.
Preliminary portable XRF (PXRF) results through the sulphide sequence at this location have detected up to 0.2% Ni and 0.8% Cu. The presence of magmatic sulphides at Symons Hill is highly encouraging.
Downhole EM is planned to better define the in-hole conductors and to test for the presence of nearby conductors which may host Ni-Cu sulphide mineralisation.
The targeted conductor has been intersected and is interpreted as a 1m zone of magmatic semi-massive pyrrhotite mineralisation in gabbro from 199m downhole.
The high powered ground EM survey which has identified these 2 conductors is approximately 55% complete. Matsa is confident that more high priority conductors will be identified in the course of the programme.
CORPORATE SUMMARY
Executive Chairman
Paul Poli Director Frank Sibbel
Director & Company Secretary
Andrew Chapman
Shares on Issue
144.15 million
Unlisted Options
14.85 million @ $0.25 - $0.43
Top 20 shareholders
Hold 50.36%
Share Price on 19 May 2015
27 cents
Market Capitalisation
$38.92 million
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Head Office:
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Suite 11, 139 Newcastle Street, Perth Western Australia 6000
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Tel: +61 8 9230 3555 Fax: +61 8 9227 0370
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Bangkok Office:
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Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110
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Tel: +66 0 2653 0258 Fax: +66 0 2653 0258
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[email protected]www.matsa.com.au
Matsa Resources Limited
Matsa reports that Diamond drillhole 15DDSH007 testing conductor C56 has intersected 1m of semi- massive pyrrhotite (iron sulphides) from 199m. This intersection confirms the presence of a magmatic sulphide source for conductor C56, one of two recently discovered high priority conductors (C42 and C56) at Symons Hill.
The high powered EM survey which identified these 2 conductors is now approximately 55% complete and is still ongoing. Matsa is confident that more high priority conductors will be identified in the course of the program.
The presence of magmatic sulphides at Symons Hill is highly encouraging for Ni-Cu mineralisation. Matsa is looking forward to the results from the second hole in the programme which is designed to intersect a stronger conductor at greater depth which is associated with an isolated gravity and magnetic anomalies.
Downhole EM surveys are planned for each drillhole in order to better define any in-hole conductors and to detect off- hole conductors which may have not been intersected.
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Drillhole
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Status
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Target
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East
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North
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Depth
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Azimuth
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Dip
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Target
Depth
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15SHDD07
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In Progress
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C56
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517150
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6469020
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308.5
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135
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60
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230.7
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15SHDD08
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Planned
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C42
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518400
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6473700
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500-
550
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145
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60
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300-
450
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Table 1: Drillhole location
Figure 1: Core at 200m, matrix textured pyrrhotite in an olivine gabbro.
Preliminary spot handheld XRF results over selected locations on Diamond drill core detect up to 0.2% Ni and 0.8% Cu. Handheld XRF results for Ni and Cu at selected points along core are tabulated in Appendix 1. A description of handheld XRF methodology is presented in Appendix 2.
Hand held XRF results in core are spot location results and do not represent actual downhole core interval values.
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Matsa Resources Limited
Symons Hill Project Background
The Symons Hill Project is located within Matsa's 100% owned E69/3070 with an area of 96km2. The project is located within the Fraser Range Tectonic zone, 6kms SSW of Sirius Resources Ltd's (ASX: SIR) Nova nickel mine. Matsa has been actively exploring the project since 2012 with aircore, RC and Diamond drilling confirming the presence of nickel anomalous (0.2 - 0.3% Ni) olivine bearing gabbro at targets SHG02, SHG03 and SHG11, which exhibit near surface enrichment in the weathered profile of up to 1.3% Ni.
Matsa commenced a regional, high powered (150-200A) EM survey in December 2014 which has been designed to cover the majority of the Symons Hill Project area. The survey is being carried out as part of a research and development project which is designed to develop and improve state of the art EM equipment to explore for massive sulphide deposits of Nova-Bollinger type, to a depth of >700m below surface.
For further Information please contact:
Paul Poli
Executive Chairman
Phone +61 8 9230 3555
Fax +61 8 9227 0370
Email [email protected]
Web www.matsa.com.au
Exploration results
The information in this report that relates to Exploration results, is based on information compiled by Richard Breyley, who is a Member of the Australasian Institute of Mining and Metallurgy. Richard Breyley is a full time employee of Matsa Resources Limited. Richard Breyley has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration an d the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Cod e for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Richard Breyley consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
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Matsa Resources Limited
Appendix 1: Handheld XRF Assays for Ni and Cu at selected points on Core
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Reading
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Depth
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Elapsed
Time 1
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Elapsed
Time 2
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Ni %
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Cu %
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Rock Description
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#1
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200m
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29.57
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29.29
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0.0284
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0.0415
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semi-massive PO
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#2
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199m
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29.51
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29.18
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0.0374
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0.021
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banded PO
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#3
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225m
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29.44
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29.47
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0.0085
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0.0111
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PO and PY in quartz vein
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#4
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225m
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29.15
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29.68
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0.0058
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PO and PY in quartz vein
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#5
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225m
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29.1
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29.65
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0.0085
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PO and PY in quartz vein
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#6
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220.8m
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29.47
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29.04
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0.1966
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0.8087
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large PO grain/ vein
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#7
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220.8m
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29.5
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29.11
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0.1918
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0.7228
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large PO grain/ vein
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#8
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197.1m
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29.55
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29.48
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0.0116
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0.032
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banded PO
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#9
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220.8m
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29.51
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29.11
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0.1749
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0.1858
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large PO grain/vein
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#10
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220.8m
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29.51
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29.09
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0.1399
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0.2242
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large PO grain/vein
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Matsa Resources Limited
Appendix 2: 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.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any
measurement tools or systems used.
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 (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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XRF Analysis on HQ core using a handheld Olympus Innovx
Delta Premium (DP4000C model) XRF analyser. Measurements were taken on surface of the core and depth
intervals recorded.
Cutting and sampling of core still to be carried out.
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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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Core drilling carried out by Frontline drilling using a track- mounted Desco 7000 Diamond drill rig. Mud rotary bit used
from surface down to the weathered zone and changed to triple tube HQ from fresh rock to end of hole. Core is oriented using
Reflex ACT II RD digital core orientation tool.
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Drill sample
recovery
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Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and
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Core is currently logged and recovery will be measured.
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Matsa Resources Limited
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Criteria
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JORC Code explanation
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Commentary
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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.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
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Geologic and geotechnical logging carried out on the core.
Logging recorded as qualitative description of colour, lithological type, grain size, structures, minerals and alteration.
All cores are photograpped using a digital camera.
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Sub-
sampling techniques and sample preparation
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If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
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.
Whether sample sizes are appropriate to the grain size of the material being sampled.
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Cores to be sawn and quarter core splits to be sampled and submitted to the lab. Sampling intervals still to be determined.
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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.
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.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether
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Olympus Innovx Delta Premium (DP4000C model) handheld
XRF analyser.
Reading times employed was 30 sec/beam for a total of 60 sec using Mining Mode.
Handheld XRF QAQC includes duplicates, standards and blanks.
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Matsa Resources Limited
Criteria JORC Code explanation Commentary
acceptable levels of accuracy (ie lack of bias) and precision have been established.
Verification of sampling and assaying
Location of data points
Data
spacing and distribution
Orientation of data in relation to geological structure
The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
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.
Specification of the grid system used.
Quality and adequacy of topographic control.
Data spacing for reporting of Exploration Results.
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.
Whether sample compositing has been applied.
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
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.
Not carried out because laboratory QA QC procedures are regarded as sufficient for surface samples.
Data entry carried out by field personnel thus minimizing transcription or other errors. Trial plots in field and rigorous
database procedures ensure that field and assay data are merged accurately.
Drill collars are surveyed by modern hand held GPS units with accuracy of 5m which is sufficient accuracy for the purpose of compiling and interpreting results.
Topographic control 2-5m accuracy using published maps or
Shuttle Radar data is sufficient to evaluate topographic effects on assay distribution.
Not known at this stage.
Diamond drill hole is oriented at -60o and due SE targeting a modelled EM conductor.
More information on the mineralized intersection upon completion of geological and geotechnical logging.
Sample security
The measures taken to ensure sample security. Sampling intervals to be marked up on core accompanied by separate printed cutting interval sheet. Core trays to be secured with steel straps on a pallet for transport to the core cutting contractor. Samples to the laboratory will be placed in
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Matsa Resources Limited
Criteria JORC Code explanation Commentary
calico bags then onto green bags. The green bags will be sealed with cable ties for transport to the laboratory.
Audits or reviews
The results of any audits or reviews of sampling techniques and data.
N/A
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.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate
in the area.
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The project consists of 1 EL.
The Project is Located on Vacant Crown Land.
The project is located within Native Title Claim No. 99/002 by the Ngadju people.
A heritage agreement has been signed and exploration is carried out within the terms of that agreement.
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Exploration
done by other parties
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Acknowledgment and appraisal of exploration by other parties.
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Very little modern exploration has taken place on this tenement
prior to Matsa's ownership.
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Geology
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Deposit type, geological setting and style of mineralisation.
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The target is "Nova" or Thompson belt style magmatic Ni-Cu mineralization.
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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:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level
in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
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Co ordinates and other attributes of Diamond drillholes are included in the text as table 1..
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Matsa Resources Limited
Criteria JORC Code explanation Commentary
Data aggregation methods
Relationship between mineralisatio n widths and intercept lengths
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.
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.
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').
Downhole assay values will be reported when they become available.
All intercepts reported are measured in down hole metres.
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.
Not required at this stage.
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.
Not required at this stage.
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Matsa Resources Limited
Criteria JORC Code explanation Commentary
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.
Geological observation included in the text and appendix 1.
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.
Down hole TEM (DHTEM) is planned after the completion of the hole.
Further DD drilling to test other conductors is planned.
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