New Copper Exploration Targets At Mt Remarkable

Microsoft Word - 20150521 Mt Remarkable Exploration Update Final.docx

Assets, Experience, Growth

ASX ANNOUNCEMENT - 21 May 2015

SYNDICATED OUTLINES EXTENSIVE NEW REGIONAL COPPER EXPLORATION TARGETS AT MT REMARKABLE

EXPANDS REGIONAL GROWTH PIPELINE WITHIN 15KM RADIUS OF BARBARA JV PROJECT

HIGHLIGHTS

• Soil sampling at the Ballara Saddle and Drought Master prospects, located 10km SE of the advanced Barbara Copper Project, reveals strong copper-in-soil anomalies.
• Airborne EM program scheduled to commence over both prospects in early June in conjunction with the Blockade Project VTEM program.
• Drilling scheduled to commence following completion of Airborne EM and VTEM
programs.
• New exploration programs are consistent with Syndicated's strategic objective of growing its copper inventory around the Barbara Project, where a Feasibility Study is being progressed by its JV partner, CopperChem Limited.
Syndicated Metals Limited (ASX: SMD - "Syndicated" or "the Company") is pleased to advise that it has delineated two extensive new regional copper exploration targets from successful soil sampling programs completed at its 100%-owned Mt Remarkable Project in North Queensland (see Figure 1).
The new targets, known as the Ballara Saddle and Drought Master prospects, are located approximately 10km south-east of the Barbara Copper Project and 5km north of the Company's Blockade Project, which also contains the Blue Star and Trey Bit prospects (see Figure 1).
Syndicated plans to fast-track the next stage of exploration of these priority prospects, with an airborne EM survey scheduled to commence in early June to assist in refinement of drill targets. Drilling is scheduled to commence following completion of these geophysical programs and will form part of a key regional drilling program over a number of prospects in the region.
The overall objective of these multi-pronged regional exploration programs is to delineate additional copper resources within a 15km radius of the Barbara Copper Project, where a Feasibility Study is being progressed by the Company's joint venture partner, CopperChem Limited.
Syndicated believes that its broader regional tenement holding in the Mt Isa-Cloncurry region is highly prospective for additional Barbara-style copper-gold discoveries as well as larger, IOCG style deposits.

Mt Remarkable Soil Sampling Program

The recent exploration program at Mt Remarkable had three key objectives:
• Define areas of elevated copper-in-soil geochemistry in line with the previously interpreted
IOCG-style mineralisation defined by Cyprus Gold Australia at Ballara Saddle;
• Define areas of elevated copper-in-soil geochemistry associated with high-grade, shear zone related mineralisation away from the historical Ballara Saddle and Drought Master workings; and
• Define the corridor most likely to host high-grade vein and/or IOCG-style copper mineralisation and characterize it with soil geochemistry and airborne geophysics incorporating the Company's understanding of the structural controls of mineralisation prevalent in the district.

Figure 1 - Project Location Plan

Ballara Saddle

The Ballara Saddle prospect straddles EPM19733 (100% SMD) and EPM14281 (80% SMD) and lies at the juncture of several important structures believed to control mineralisation in the district.
Syndicated has undertaken a comprehensive soil sampling program across the Ballara Saddle and
Drought Master tenements on a 400m by 50m grid.
The results, which were determined by portable hand-held XRF after screening soils to minus 0.2 mm, are presented in Figures 2 and 3 below.
Shown over regional geology in Figure 2, the results reveal anomalous values over the Ballara Saddle prospect, associated with north-east and north-west trending faults within Ballara Quartzite rocks.
At Drought Master anomalous copper-in-soils results are associated with Wonga Granite rocks in conjunction with north-east trending faults in Magna Lynne Basalt (see Figure 2).

Figure 2 - Ballara Saddle and Drought Master copper-in-soil results over regional geology
Mapping of regional magnetics shows an elevated magnetic response over the Ballara Saddle prospect coincident with the mapped magnetite-biotite-quartz alteration, as illustrated in Figure 3, suggesting an IOCG-style of mineralisation for the prospect. The underlying Ballara Quartzite rocks exhibit a generally subdued magnetic response away from faulted zones.
The Drought Master prospect shows a subdued magnetic response within higher background magnetics associated with the underlying Magna Lynne metabasalt rocks (see Figure 3).

Figure 3 - Ballara Saddle and Drought Master Cu-in-Soil results over regional magnetics
The Company is scheduled to commence an airborne VTEM survey over the area in early June to characterise the EM response of the prospect(s) before finalising a drilling program.
Previous exploration at Ballara Saddle has consisted of mapping, rock chip sampling, stream sediment sampling and limited ground magnetic surveys conducted by Cyprus Gold Australia prior to
1995. The previous exploration was confined to an area immediately adjacent to the Ballara Saddle historical workings and is reproduced and integrated with the Company's soil sampling results in Figure 4. The most significant results from this previous exploration included:
o Two channel samples over an outcropping malachite gossan located in the northern part of the mapped area which returned the following results:
▪ 15m continuous rock chip sample returning 6.6% Cu and 0.64g/t Au; and
▪ 10m continuous rock chip sample returning 5.6% Cu and 0.35g/t Au.
o A series of rock chip and channel samples up to 8.1% Cu and 0.5g/t Au from a zone of magnetite-quartz breccia in the southern part of the mapped area; and
o A zone of magnetite-biotite-quartz alteration containing numerous surface diggings, malachite stained scree and quartz-hematite breccia which has a surface extent of approximately 1000m by 150m and is contained within the SMD soil anomaly envelope illustrated in Figure 4.

Figure 4 - Cyprus Gold Australia mapping (1995) over the Ballara Saddle historical workings

Management Comment

Syndicated's Managing Director, Andrew Munckton, said recent regional exploration work had returned outstanding results from low-cost exploration, outlining two strong exploration targets on the Mt Remarkable tenements.
"The results from soil sampling and mapping at Ballara Saddle and Drought Master indicate the presence of high-grade copper mineralisation both at surface and in historical workings at both locations within the tenement," he said.
"The indications of widespread copper anomalism associated with magnetite-biotite alteration and high-grade surface rock chips in quartz hematite breccia and gossanous material at Ballara Saddle demonstrates that our belief that the area may contain several structurally controlled, high-grade copper mineralised lodes in a general IOCG mineralising environment is well founded.
"In addition, new zones of mineralisation south of the Ballara Saddle and north of Drought Master historical workings associated with the Wonga Granite intrusion and the associated fault structures provides the Company with additional exploration targets in the area.
"The next phase of work is to prioritise the most prospective zones with an airborne EM survey prior to initial drilling of the prospect(s). The EM work will commence in early June with several prospects in the region to be flown, including Ballara Saddle and Drought Master.
"In summary, we are very encouraged by the results of our systematic exploration work to date and with the discovery of these two new exciting prospects in particular. We strongly believe there are more high-grade copper-gold deposits to be discovered in this region and we are working diligently across our portfolio of tenements to identify them."
ENDS
For further information:

Investors

Andrew Munckton - Syndicated Metals
Mobile: 0435 635 598

Media

Nicholas Read - Read Corporate
Mobile: 0419 929 046

Competent Person's Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Andrew Munckton who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 (the "JORC Code"). Mr Munckton is a full-time employee of Syndicated Metals Limited and consents to the inclusion in the report of the Exploration Targets and Exploration Results in the form and context in which they appear.

Exploration Targets

This report comments on and discusses Syndicated Metals Limited's exploration in terms of target size and type. The information relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. The potential quantity and quality of material discussed as Exploration Targets is conceptual in nature since there has been insufficient work completed to define them as Mineral Resources or Ore Reserves. It is uncertain if further exploration work will result in the determination of a Mineral Resource or Ore Reserve.

Cyprus Gold Australia - Rock Chip Summary

Sample_ID	Comments	Local East	Local North	MGA Easting	MGA Northing	Cu (ppm)	Au (ppm)	Pb (ppm)	Zn (ppm)	Ag (ppm)	Ni (ppm)	Co (ppm)
45119	15m continuous sample	5030	15110	382803	7729767	66000	0.64		22	4	78
55401	2m grab	5415	14380	382917	7728949	2000			24		44	54
55406	2m grab	5000	14920	382711	7729598	6000	0.09		21		210	181
55409	20m semi continuous sample	5050	14950	382768	7729609	582	0.05		10		17	18
55410	20m continuous sample	5060	14950	382777	7729606	280	0.03		11		15	16
55411	boulder grab	4700	14985	382450	7729761	104		14	25		27	24
55412	10m grab	4890	14955	382619	7729669	73		5	51		50	38
55419	20m semi continuous sample	4715	15120	382510	7729883	33			8		7	11
55423	15m semi continuous sample	5000	14950	382721	7729626	118			16
55424	20m continuous sample	5000	14900	382704	7729579	746			11
55425	15m continuous sample	5200	14800	382858	7729417	100			19
55426	15m semi continuous sample	4965	15270	382797	7729939	438	0.26		26		27	110
55427	10m continuous sample	5030	15110	382803	7729767	56000	0.34		20	2	60	101
55428	2m continuous sample	5010	15075	382773	7729741	17800	0.74		33		119	329
55429	10m square grab	5060	1500	378202	7716948	669	0.08		11		34	35
55430	10m semi continuous sample	5075	14860	382761	7729516	193			9		49	163
55431	5m semi continuous sample	5075	14850	382757	7729507	463			10		62	167
55432	5m semi continuous sample	5300	14525	382859	7729124	4130	0.14		15		40	21
55433	10m semi continuous sample	5280	14525	382840	7729131	756			13		47	23
55434	30m continuous sample	5320	14455	382854	7729052	11200	0.24		30		72	82
55435	10m square grab	5400	14400	382910	7728973	990	0.21		16		21	71
55436	20m square grab	5420	14380	382922	7728947	1300			24		34	46
55437	10m square grab	5590	14170	383011	7728692	752			7		32	5
55438	15m semi continuous sample	5440	14340	382927	7728903	1010			18		35	55
55439	3m continuous sample	5270	14360	382774	7728979	23500	0.06		11		17	35
55440	20m semi continuous sample	5255	14520	382815	7729135	4370	0.79		26		83	92
55441	10m semi continuous sample	5030	14780	382691	7729456	1600	0.21		7		28	13
59499	mullock grab	5380	13995	382754	7728598	81000	0.51		34	7	79	142
59500	mullock grab	5230	14485	382779	7729111	21000	0.14		18		94	66

JORC Code, 2012 Edition - Table 1

Criteria JORC Code explanation
Section 1 - Sampling Techniques and Data
Sampling techniques	Nature and quality of sampling (e.g. 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.	Soil samples were collected via the following process. An area 1m x 1m was cleared to remove crust and vegetation. Within this clearing a hole was dug to a depth of approx. 25cm and homogenized. From within the hole a sample was scooped from 2 to 25 cm and dry sieved to collect 100gms at 0.25mm (-60mesh). Rock chips collected by chipping outcrop with hammer along traverse length.
Sampling techniques	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Sampling was carried out using Syndicated Metals Limited (SMD) sampling protocols and QAQC procedures.
Sampling techniques	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 1m samples from which 3kg was pulverised to produce a 30g 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.	Each soil sample was analysed using a Niton Portable XRF for multi element determination. Rock Chips were sent to ALS in Townsville for a G001 analysis (perchloric acid digestion) for Cu, Pb, Zn, Ag, Ni and Co and Au was determined by PM202 (Aqua Regia with AAS finish)
Drilling techniques	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).	N/A
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	N/A
Drill sample recovery	Measures taken to maximise sample recovery and ensure representative nature of the samples.	N/A
Drill sample recovery	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.	N/A
Logging	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.	N/A
Logging	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	N/A
Logging	The total length and percentage of the relevant intersections logged.	N/A
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	N/A
Sub-sampling techniques and sample preparation	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	N/A
Sub-sampling techniques and sample preparation	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	The rock chips samples were sent to ALS, an accredited laboratory, for sample preparation and analysis. Soil samples were analysed by a hand held Niton XRF
Sub-sampling techniques and sample preparation	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	For the analysis of soil samples the Quality Control (QC) procedures involved the use of certified reference material and duplicates to determine accuracy and precision. The Standards used were prepared by Ore Research and Exploration Pty Ltd and were analysed at a rate of 1 per 20 and duplicate soil samples were a separate soil sample collected within a metre of the original sample. Duplicate samples were collected at a

rate of 1 per 50 samples. No QAQC information is available for the rock chip analysis. ALS is a commercial laboratory which have routine QAQC protocols which were industry standard at time of analysis.
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.	Field sample duplicates were taken at a rate of 1 per 50 samples. The field duplicate was a separate sample collected in the field within close proximity to the original sample.
Whether sample sizes are appropriate to the grain size of the material being sampled.	The sample sizes are believed to be appropriate to correctly represent the style of copper and gold mineralisation in the Mt Isa Inlier.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	The use of perchloric acid digestion and aqua regia are believed to be appropriate for the rock chip assay. These assays are considered to be partial. The use of hand held Niton XRF analysis is believed to be appropriate for soil sample analysis in determining anomalous base metal locations.
Quality of assay data and laboratory tests	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibration factors applied and their derivation, etc.	No geophysical tools were used to determine any element concentrations used in the resource estimate. A handheld XRF instrument was used to determine base metal concentration in soil samples.
Quality of assay data and laboratory tests	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.	Syndicated Metals inserted certified standards and duplicates into the sample sequence. Field duplicates and standard control samples have been used at a frequency of 2 field duplicates and 5 standards per 100 samples. ALS is a commercial laboratory which have routine QAQC protocols which were industry standard at the time of analysis.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	N/A
Verification of sampling and assaying	The use of twinned holes.	N/A
Verification of sampling and assaying	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Geological and sampling information was collected using an electronic system through GPS location capture and Niton data interface.
Verification of sampling and assaying	Discuss any adjustment to assay data.	None undertaken in this program.
Location of data points	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.	Soil sample locations were determined by handheld GPS device. Rock chips by Cyprus were located within a pegged local grid.
Location of data points	Specification of the grid system used.	GDA94 MGA Zone 54 datum.
Location of data points	Quality and adequacy of topographic control.	GPS and SRTM information available.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Sample spacing in this program is at approximately 400m x 50m (northing x easting).
Data spacing and distribution	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.	N/A
Data spacing and distribution	Whether sample compositing has been applied.	All samples were collected as single point intervals.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	N/A
Orientation of data in relation to geological structure	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.	NA
Sample security	The measures taken to ensure sample security.	Soil samples were only handled by SMD employees.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been undertaken.

Criteria JORC Code explanation
Section 2 - Reporting of Exploration Results
Mineral tenement and land tenure status	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 Ballara Saddle and Drought Master prospects are located within EPM19733 and EPM14281. The current registered holder for EPM19733 is Syndicated Metals Limited (SMD). EPM14281 is subject to the Mt Isa Other Metals JV with Deep Yellow Limited and Superior Uranium Pty Ltd. Syndicated Metals is a beneficial owner of 80% of the metals other than uranium on EPM14281. The tenements sit within the Kalkadoon People #4 Native Title claim.
Mineral tenement and land tenure status	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.	The tenements are in good standing and no known impediments exist.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Exploration work completed by Cyprus Gold Australia is reported from open file report Number 823 dated January 1995.
Geology	Deposit type, geological setting and style of mineralisation.	The deposit(s) are shear hosted deposits within acid volcanics within the Kalkadoon-Leichhardt belt of the Mt Isa Inlier. The N and NW striking surface expressions of copper and gold mineralisation indicate near vertical dips associated with shear zones, and varies from 2m to 30m true thickness within an alteration zone generally considered to be typical of IOCG mineralisation found elsewhere in the Mt Isa inlier.
Drill hole Information	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:	N/A
Drill hole Information	Easting and northing of the drill hole collar	N/A
Drill hole Information	Elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar	N/A
Drill hole Information	Dip and azimuth of the hole	N/A
Drill hole Information	Down hole length and interception depth	N/A
Drill hole Information	Hole length.	N/A
Drill hole Information	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.	N/A
Data aggregation methods	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.	N/A
Data aggregation methods	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.	N/A
Data aggregation methods	The assumptions used for any reporting of metal equivalent values should be clearly stated.	N/A
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	No metal equivalent values are used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	N/A
Relationship between mineralisation widths and intercept lengths	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').	N/A

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.	Refer to Figures 1, 2, 3 and 4.
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.	All results are reported.
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.	N/A
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step- out drilling).	Refer to Figures 2, 3 and 4.
Further work	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Refer to Figures 2, 3 and 4.

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Syndicated Metals Ltd.

New Copper Exploration Targets At Mt Remarkable

New Copper Exploration Targets At Mt Remarkable

Syndicated Metals Ltd.