ASX RELEASE:
8th April 2015
ASX : TAW
CORPORATE DIRECTORY Executive Chairman & CEO
Wayne Richards
Executive Director, CFO & Co. Sec.
Michael Naylor
Technical Director
Len Kolff
Mofe Creek Iron Ore Project - Liberia, West Africa
LIBERIA: Proven Iron Ore Country
LOCATION: Project located 20km from coast, adjacent to historic rail alignment, 85km to Port of Monrovia
LITHOLOGY: High grade +33% Fe friable itabirite resource of 61.9Mt with ability to produce a +64 to
68% Fe product
LOGISTICS: Private Haul Road, Transhipment or Direct ship loading
LEADERSHIP: Proven Executive Team with 'In-Country' Iron Ore expertise
Rakana JV (6.7%), South Africa Meletse Iron Ore and Avontuur Manganese JV managed by Baosteel Iron and Steel Group
Key Milestones:
- Scoping Study completion
- Maiden Resource Estimate announced
- Pre-Feasibility study commenced
- Mineral Development Agreement being negotiated
- PFS Drilling Program and Resource Extension Upgrade commenced
- Environmental and Social Impact
Assessment (ESIA) awarded
CONTACT DETAILS
288 Churchill Avenue
Subiaco Perth WA 6008
Email: [email protected] Website: www.tawana.com.au Phone: +61 8 9489 2600
New Mineralisation Discovery
- Extending Potential Resource Targets for the Mofe Creek Project
Tawana Resources NL (the Company) is very pleased to announce the discovery of new mineralisation as part of its ongoing exploration strategy over the Company's recently acquired, 100% owned MEL1223/14 Mofe Creek South licence.
New friable itabirite mineralisation has been defined in outcrops over a combined 1.4km strike length and at an average grade of
32.4% Fe. The mineralisation is within a 3km trucking distance of the Gofolo Main resource and is within immediate proximity to the planned road infrastructure corridor.
The mineralisation represents one of four additional high-priority target areas defined within the Mofe Creek South licence, which has similar geological characteristics to the 61.9Mt at 33% Fe maiden resource estimate, defined in 2014 (refer ASX release 31st March 2014)1.
Executive Chairman and Chief Executive Officer Mr Wayne Richards said "To define additional high-quality mineralisation within such close proximity to the Gofolo Main resource and adjacent to our potential first mining hub to be developed, is a fantastic result for the Company. This represents the first of a series of exciting new exploration targets which have the potential to add significant resource tonnes to the Project, and which are within short conveying or trucking distance to the proposed Gofolo-Zaway mining hubs". Mr Richards added, "The potential to add value to the Project at a low incremental cost, coupled with very low stripping ratios and forecast low OPEX costs is very compelling."
The Company has recently redeployed its full Liberian exploration contingent into the field to assess new targets to expand the resource footprint of the Project, and to confirm the potential quantum of mineralisation that may be present within the new targets. Mapping teams will rapidly assess the remaining exploration targets within the licence area, with the aim of prioritising drill targets.
Tawana continues its strategy of advancing its envisaged high margin, high-grade ore project, via such low-cost, value-accretive exploration work carried out by its in-house team. This strategy, in conjunction with the consistent progress of activities currently underway which include: advancing negotiations on the Mofe Creek Mineral Development Agreement; progressing the Project's Environmental and Social Impact Assessment activities; and negotiations for infrastructure and transport solutions with other third party developers/operators, distinguishes Tawana from other global iron ore companies during this period of low commodity pricing.
ASX RELEASE | 8th April 2015
MEL1223/14 Exploration Success
Three exploration teams have commenced a two-month mapping and rock-chip sampling program over MEL 1223/14 to define and quantify potential additional resource tonnage targets for the Mofe Creek Project.
All coincident topographic and magnetic anomaly highs are within a very short tramming, conveying or trucking distance of the planned Gofolo - Zaway production hub and are in close proximity to the proposed transport corridor to the coastal port location as shown in Figure 1 below.
Figure 1 | Southern licence exploration target areas (circled yellow) relative to known resource footprints (pink) and Northern license targets (red and orange), over a Digital Elevation Model (DEM) image background.
The reconnaissance and value-enhancing exploratory work has been effectively coordinated using our in-house Liberian exploration team, in conjunction with our hand-held XRF machine for chemical analysis.
Mapping teams are rapidly assessing some of the potential exploration targets within the license area with the aim of prioritising drill targets with the highest potential to add significant tonnages to our global exploration target of 500 Mt (Refer ASX release
18th March 2013).2
ASX RELEASE | 8th April 2015
Figures 2 & 3 | Field mapping teams inspecting newly defined outcrops on Target 2.
Detailed mapping over the westernmost target has defined 1.4km combined strike length at an average of 32.4% Fe with low contaminant levels from 19 surface rock chip samples using handheld XRF (refer Figure 4 below).
Figure 4 | Rock chip sample locations and % Fe content defining new combined 1.4km strike itabirite target within 3km potential trucking distance of Gofolo Main. Itabirite outcrops (blue dots) with % Fe grade; background imagery semi-transparent DEM with magnetics ANSIG image below.
ASX RELEASE | 8th April 2015
The style of mineralisation and tenor observed is similar to the known resource footprints with friable, coarse grained itabirite at low contaminant levels occurring in outcrop along coincident magnetic and topographic highs.
Field mapping teams are continuing work along remaining targets towards the east and ongoing results will be reported as they become available.
About Tawana (ASX & JSE: TAW)
Tawana Resources NL is an iron ore focused ASX and JSE-listed company with its principal project in Liberia, West Africa. Tawana's 100%-owned Mofe Creek Project is a new discovery in the heart of Liberia's historic iron ore district, located 20km from the coast and 85km from the country's capital city and major port, Monrovia.
Tawana is committed to advancing the development of its 100% owned Mofe Creek Project, which covers 475km2 of highly prospective tenements in Grand Cape Mount County. The Project hosts high-grade friable itabirite mineralisation, which can be easily upgraded to a premium quality iron ore product of +64-68% Fe grade, via simple, low capital intensity beneficiation.
Detailed information on all aspects of Tawana's projects can be found on the
Company's website www.tawana.com.au.
For further information, contact:
Wayne Richards Executive Chairman Ph: +61 8 9489 2600
1
For more information on the Resource estimate, refer to ASX announcement dated 31 March 2014. Tawana Resources is not aware of any
new information or data that materially affects the information included in the said announcement.
2
* This information was prepared and first disclosed under JORC Code 2004. It has not been updated since to comply with the JORC Code
2012 on the basis that the information has not materially changed since it was last reported. The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will results in the estimate of a Mineral Resource.
The potential quantity and grade of an exploration target is conceptual in nature. There has been insufficient exploration to determine a mineral resources and there is no certainty that further exploration work will result in the determination of mineral resources. Refer ASX announcement of 18 March 2013 for further details.
Forward Looking Statement
This report may contain certain forward looking statements and projections regarding estimated, resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of Tawana Resources NL. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved.
ASX RELEASE | 8th April 2015
Tawana Resources NL does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims any obligation to update or revise any forward looking statements/projects based on new information, future events or otherwise except to the extent required by applicable laws. While the information contained in this report has been prepared in good faith, neither TAW or any of its directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of TAW, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation.
Competent Persons Statement
The information in this report that relates to Exploration Results and Resources is based on information compiled by Len Kolff, who is a member of the Australian Institute of Geoscientists. Len Kolff is a full-time employee of the Company and has sufficient experience which is 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'. Len Kolff consents to the inclusion of the matters in this report based on his information in the form and context in which it appears.
The information in this Report relating to the Mofe Creek Resource Estimate and Scoping Study are extracted from the 31 March 2014 Maiden Resource and 3 July 2014 Scoping Study announcements. The Company is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcements.
ASX RELEASE |8th April 2015
APPENDIX 1
The following extract from the JORC Code 2012 Table 1 is provided for compliance with the Code requirements for the reporting of Mineral Resources: (CP: LK Len Kolff)
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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Competent
Person
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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 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.
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Rock chip samples were collected in the field from outcrop, sub-crop and boulder float material.
Rock chip samples were analysed by handheld XRF.
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LK
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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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No drilling results are reported as part of this submission.
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LK
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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 grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
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No drilling results are reported as part of this submission.
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LK
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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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Rock chip samples were geologically logged for lithology, hardness, grain size, fabric and where possible dip/dip direction for structural interpretation.
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LK
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6
ASX RELEASE | 8th April 2015
Criteria JORC Code Explanation Commentary Competent
Person
Sub-sampling techniques and sample preparation
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.
All rock chip samples were dried prior to analysis at room temperature LK
Blanks and certified reference materials were inserted every 10th sample.
No sub sampling techniques were carried out on the original rock chip sample.
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.
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 acceptable levels of accuracy (ie lack of bias) and precision have been established.
Assaying was by handheld XRF instrument Olympus Delta Premium GeoChem (Mining LK Plus) Analyzer using geochem mode.
Reading time was 1 second per reading with a total of 4 readings per sample.
The instrument automatically calculated an average grade from the readings per sample.
The instrument automatically calibrates on a daily basis.
Blanks and certified reference material standards were inserted every 10th sample and acceptable levels of accuracy and precision have been established.
Verification of sampling and assaying
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.
It was noted that handheld XRF results reported were consistently lower when LK
compared with laboratory analysis reported previously.
No twinned holes are reported as part of this submission.
All mapping data is collected manually in the field and entered subsequently into excel spreadsheet mapping and rock chip database.
All handheld XRF data is collected in the field office and downloaded from the instrument to excel spreadsheet.
No adjustments have been made to the assay data.
Location of data points
Accuracy and quality of surveys used to locate drillholes (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.
All sampling points have been surveyed using handheld GPS instrument on WGS 84 UTM LK
zone 29N grid system.
No topographic control is reported as part of this submission.
ASX RELEASE | 8th April 2015
Criteria JORC Code Explanation Commentary Competent
Person
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Data spacing
and distribution
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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
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sampling is defined by the extent of outcrop available.
Sampling distribution is considered sufficient for reporting of exploration results. No sample compositing has been applied.
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LK
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Resource and Ore Reserve estimation procedure(s) and classifications
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applied.
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Whether sample compositing has been applied.
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Orientation of
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Whether the orientation of sampling achieves unbiased sampling of
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Sampling orientation is dictated by presence of outcrop. Where possible, rock chip
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LK
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data in relation
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possible structures and the extent to which this is known, considering the
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sampling has been conducted perpendicular to regional strike.
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to geological
structure
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deposit type.
If the relationship between the drilling orientation and the orientation of
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No drilling results are reported as part of this submission.
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key mineralised structures is considered to have introduced a sampling
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bias, this should be assessed and reported if material.
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Sample security
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The measures taken to ensure sample security.
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All rock chips have been securely stored at the project field office.
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LK
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Audits or
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The results of any audits or reviews of sampling techniques and data.
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Sampling techniques and data were regularly reviewed by internal company staff.
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LK
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reviews
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ASX RELEASE | 8th April 2015
SECTION 2 REPORTING OF EXPLORATION RESULTS (CRITERIA LISTED IN THE PRECEDING SECTION ALSO APPLY TO THIS SECTION).
Criteria JORC Code Explanation Commentary Competent
Person
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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 licence to operate in the area.
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MEL 1223/14 is located within the Grand Cape Mount county of Liberia and is 100% held by Tawana Liberia Inc, a wholly owned subsidiary of Tawana Resources NL.
There are no known impediments or material issues related to security of tenure at the time of reporting.
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LK
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Exploration
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Acknowledgment and appraisal of exploration by other parties.
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The Mofe Creek project is a grassroots discovery with no previous mineral
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LK
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done by other
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exploration or other work completed.
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parties
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Geology
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Deposit type, geological setting and style of mineralisation.
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The Mofe Creek project is characterised by a series of itabirite hosted iron
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LK
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ore deposits of likely Archean or Palaeproterozoic age as possible strike
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continuations of the historic Bomi Hills and Bong Range mines.
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Mineralisation is hosted within banded iron formations (BIFs) that have
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undergone regional metamorphism and recrystallization to itabirite and
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likely additional recrystallization to coarse grained, coarsely banded
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magnetite-hematite itabirite as seen today. A minimum of one and up to
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three major itabirite bands are recognised stratigraphically of both silicate
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and oxide iron formation facies and interbedded with metasediments
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(variably garnet overprinted), Fe rich mafics and quartzites. Collectively the
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iron units and interbedded metasediments can be considered a 'greenstone'
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belt that unconformably overlies granite/gneiss basement.
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The sequence has been folded and faulted through at least two major
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phases of deformation causing recrystallization, increase in average grain
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size and potential enrichment of the itabirite units.
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The sequence has then been subject to intense tropical weathering causing
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oxidation of magnetite to hematite, and variable hydration to goethite and
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limonite within the upper 30-60m thick weathering profile.
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Some minor faults are recognised in the Gofolo Main prospect but are not
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considered to have a major influence on the currently established resource;
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they will be incorporated into resource modelling when further infill
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drilling has become available.
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Drillhole
|
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A summary of all information material to the understanding of
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No drill hole results are reported as part of this submission.
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LK
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Information
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the exploration results including a tabulation of the following
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information for all Material drillholes:
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easting and northing of the drillhole collar
elevation or RL (Reduced Level - elevation above sea level in
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ASX RELEASE | 8th April 2015
Criteria JORC Code Explanation Commentary Competent
Person
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metres) of the drillhole collar
dip and azimuth of the hole
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down hole length and interception depth
hole length
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If the exclusion of this information is justified on the basis that
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the information is not Material and this exclusion does not
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detract from the understanding of the report, the Competent
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Person should clearly explain why this is the case.
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Data
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In reporting Exploration Results, weighting averaging techniques,
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Arithmetic averages of iron grade were calculated for all rock chip samples
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LK
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aggregation
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maximum and/or minimum grade truncations (eg cutting of high
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occurring within the interpreted iron formation target footprints.
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methods
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grades) and cut-off grades are usually Material and should be
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No weighted average grades have been reported.
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stated.
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No metal equivalent grades have been reported.
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Where aggregate intercepts incorporate short lengths of high
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grade results and longer lengths of low grade results, the
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procedure used for such aggregation should be stated and some
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typical examples of such aggregations should be shown in detail.
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The assumptions used for any reporting of metal equivalent
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values should be clearly stated.
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Relationship
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These relationships are particularly important in the reporting of
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No drill hole results are reported as part of this submission.
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LK
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between
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Exploration Results.
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True width of mineralisation is not known.
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mineralisation
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If the geometry of the mineralisation with respect to the drillhole
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widths and
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angle is known, its nature should be reported.
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intercept
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If it is not known and only the down hole lengths are reported,
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lengths
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there should be a clear statement to this effect (eg 'down hole
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length, true width not known').
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Diagrams
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Appropriate maps and sections (with scales) and tabulations of
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All relevant plan maps have been included in the body of the
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LK
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intercepts should be included for any significant discovery being
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announcement.
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reported These should include, but not be limited to a plan view
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of drillhole collar locations and appropriate sectional views.
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Balanced
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Where comprehensive reporting of all Exploration Results is not
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Where surface rock chip samples are reported, the total number of samples
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LK
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reporting
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practicable, representative reporting of both low and high grades
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collected, the average and a range of assay results have been reported.
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and/or widths should be practiced to avoid misleading reporting
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of Exploration Results.
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Other
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Other exploration data, if meaningful and material, should be
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All relevant regional and prospect scale geological observations and
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LK
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substantive
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reported including (but not limited to): geological observations;
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geophysical survey results are included in relevant announcements
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exploration data
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geophysical survey results; geochemical survey results; bulk
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accordingly.
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samples - size and method of treatment; metallurgical test
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results; bulk density, groundwater, geotechnical and rock
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characteristics; potential deleterious or contaminating
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substances.
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ASX RELEASE | 8th April 2015
Criteria JORC Code Explanation Commentary Competent
Person
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.
Ongoing mapping and rock chip sampling along additional target footprints LK
will continue.
Exploration drilling will be planned along defined exploration targets post completion of access tracks and assessment of geology exposed in road cuttings resulting from this work.