Microsoft Word - 20141211 ASX Announcement_Parndana_Project_Update

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 11 December, 2014

ASX RELEASE

Parndana Project Update

HIGHLIGHTS

 Soil sampling program completed

 Preliminary portable x-ray fluorescence (XRF) results received

 Coincident zinc and lead anomaly outlined

Monax Mining Limited ("Monax") (ASX:MOX) is pleased to provide an exploration update for its 100 per cent owned Parndana Project in South Australia (Figure 1).
Monax recently completed a detailed soil sampling program on the Vinco prospect, located approximately 1km east of the Bonaventura prospect, which are both part of the Parndana Project, on South Australia's Kangaroo Island.

Previous exploration at the Vinco prospect, included detailed gravity and induced polarisation (IP) surveys. Monax drilled two Diamond holes targeting the main gravity anomaly and a chargeable anomaly defined by the dipole-dipole IP survey.

Further refinement using a gradient array IP (GAIP) survey outlined a prominent NNW

trending chargeable and resistive anomaly in an area not targeted by the Diamond drilling.

Figure 2 shows the chargeability response from the GAIP survey and Figure 3 shows the resistivity anomaly outlined by the GAIP survey.

Figure 4 shows the combined lead and zinc soil results which show a strong correlation to the NNW trend of the GAIP anomalies.

"The new defined anomaly represents a genuine target for zinc and lead mineralisation similar to Bonaventura, and the next phase of drilling will target this feature," Monax Mining Managing Director, Mr Gary Ferris said.
"The correlation between the IP data and the soil results provides encouragement that this newly defined anomaly potentially represents a zone of mineralisation," he said.

Monax is planning a drilling program at its Parndana Project in the first half of 2015.

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Background

Monax's Parndana Project is located at the flexure within the Cygnet Snelling Shear Zone (CS- ZS), a prominent east-west trending crustal scale structure. The CS-SZ is the interpreted

southern margin of the Gawler Craton, and is marked by a clear zone of low magnetic intensity.

Mineralisation at Bonaventura comprises NNE trending zones of coarse sphalerite (zinc sulphide) and galena (lead sulphide) bearing quartz vein stockworks and disseminations within a silicified sandstone host rock. Exploration to date has focused around historical workings and near surface mineralisation.

Drilling by the former SA Department of Mines and Energy in 1990 reported several encouraging intersections of mineralisation in the Bonaventura area including:
 16m (10-26) @ 2.69% Zn, 0.45% Pb & 1.7 g/t Ag including 5m (16-21) @ 5.8% Zn (Hole
GRA 7).
(This information was prepared and first disclosed under the 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. Note: all lengths are downhole lengths; true width unknown).
Exploration by ASX-listed Havilah Resources at Bonaventura in 2003 involved a shallow drilling program which produced further encouraging results including:

 7m (14-21) @ 1.32% Zn, 3.16% Pb & 3.81 g/t Ag including 2m (16-18) @ 3.59% Zn,

9.46% Pb & 10 g/t Ag (Hole PRC01),

 18m (30-48) @ 1.69% Zn & 1.81 g/t Ag including 6m (42-48) @ 3.48% Zn, 0.51% Pb &

1.4 g/t Ag (Hole PRC04), and

 5m (26-31) @ 26.9% Zn, 10% Pb & 1.54 g/t Ag (Hole PRC31).

(This information was prepared and first disclosed under the 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. Note: all lengths are downhole lengths; true width unknown).
Monax undertook drilling programs at Bonaventura in 2006 and 2008 aimed at understanding the structural setting to better target high-grade zones (see ASX Release 27 March 2014 for drill hole details). Significant intersections from the 2006 drilling program include:

 6m (52-58) @ 1.96% Zn & 0.26% Pb including 2m (54-56) @ 3.65% Zn (Hole BVRC02),

 4m (16-20) @ 2.06% Zn & 2.15% Pb (Hole BVRC03),

 16m (34-50) @ 3.43% Zn & 0.66% Pb including 6m (40-46) @ 6.3% Zn (Hole BVRC03),

 23m (62-85) @ 1.16% Zn (Hole BVRC08 - ended in mineralisation),

 1m (56-57) @ 3.3% Zn & 4.58% Pb (Hole BVRC10),

 4m (91-95) @ 3.94% Zn including 1m (93-94) @ 7.1% Zn (Hole BVRC10),

 23m (98-121) @ 1.22% Zn (Hole BVRC10 - ended in mineralisation); and

 1m (76-77) @ 2.31% Zn & 1.09% Pb (Hole BVRC11).

(This information was prepared and first disclosed under the 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 - see Monax ASX Release 24 July 2006 for details. Note: all lengths are downhole lengths; true width unknown).
Significant intersections from Monax's 2008 drilling program include:

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 29.9m (16.1-46) @ 1.79% Zn including 10m (27-37) @ 3.22% Zn, 1.62% Pb & 1.53 g/t
Ag; and 3.9m (16.1-20) @ 2.13% Pb & 2.04 g/t Ag (Hole BVDD004)
 10m (81-91) @ 2.13% Zn, 0.45% Pb & 0.83 g/t Ag including 6m (85-91) @ 2.97% Zn,
0.65% Pb & 1.08 g/t Ag (Hole BVDD007),
 12m (94-106) @ 2.59% Zn including 5m (97-102) @ 4.0% Zn (Hole BVDD007), and
 11m (58-69) @ 1.64% Zn & 1.2% Pb including 2m (61-63) @ 6.96% Zn, 5.06% Pb &

2.5 g/t Ag (Hole BVDD008).

(Note: all lengths are downhole lengths; true width unknown. Full results are presented in ASX Release 27 March 2014)).

Gary Ferris Managing Director, Monax Mining

Ph: (08) 8245 4900

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.

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Figure 2. Parndana Project - Gradient array IP survey chargeability results with soil sampling grid.

Figure 3. Parndana Project - Gradient array IP survey resistivity results with soil sampling grid. Chargeability contours overlay.

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Figure 4. Parndana Project - Combined lead and zinc soil sample results.

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JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques	 	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	 	Soil samples comprised bulk samples collected at a nominal depth of 10-30cm depth on a 25m x 25m grid within the central area of interest grading to a 50m x 50m grid on the edge of the grid area. Bulk samples were sieved to remove the >3mm (coarse) fraction.
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		The samples were collected dry and field sieved and approximately 300g was collected for analysis. A sub-sample was taken and hand crushed in a mortar and pestle to produce a fine powder which is then pressed into a disc suitable for the portable XRF machine.
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.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer, rotary air		Not Applicable, no drilling was undertaken as part of the soil sampling
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	program.
or standard tube, depth of Diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc).
Drill sample		Method of recording and assessing core and chip sample recoveries		Not Applicable, no drilling was undertaken as part of the soil sampling
recovery	and results assessed.	program.
	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.
Logging		Whether core and chip samples have been geologically and		Not Applicable, no drilling was undertaken as part of the soil sampling
geotechnically logged to a level of detail to support appropriate	program.
Mineral Resource estimation, mining studies and metallurgical
studies.
	Whether logging is qualitative or quantitative in nature. Core (or
costean, channel, etc) photography.

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Criteria JORC Code explanation Commentary

	The total length and percentage of the relevant intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core		Not Applicable, no drilling was undertaken as part of the soil sampling
techniques and	taken.	program.
sample		If non-core, whether riffled, tube sampled, rotary split, etc and
preparation	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		Not Applicable, no drilling was undertaken as part of the soil sampling program.
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		Sample size is considered appropriate to the grain size of the material sampled.
being sampled.
Quality of		The nature, quality and appropriateness of the assaying and		Soil samples were assayed using an Olympus X-5000 Portable XRF
assay data and	laboratory procedures used and whether the technique is considered	machine.
laboratory	partial or total.		Portable XRF allows for more accurate analysis of samples over
tests		For geophysical tools, spectrometers, handheld XRF instruments, etc,	longer beam times when sampling which allows for lower detection
the parameters used in determining the analysis including instrument	limits of elements and can detect lighter elements with more accuracy
make and model, reading times, calibrations factors applied and their	than handheld XRF.
derivation, etc.		Standard samples were used for calibration. Monax also analysed 25
	Nature of quality control procedures adopted (eg standards, blanks,	soil pulp samples (laboratory returns) from a previous soil sampling
duplicates, external laboratory checks) and whether acceptable levels	program from the nearby Bonaventura prospect through the portable
of accuracy (ie lack of bias) and precision have been established.	XRF machine to provide an independent check on the results.

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.

 Not Applicable, no drilling was undertaken as part of the soil sampling

program.

 No twinned holes.

 Field data was entered on to a paper template and transferred into an electronic copy back in the Office.

 No adjustment was made to the assay data.

Location of		Accuracy and quality of surveys used to locate drill holes (collar and		Not Applicable for soil sampling program.
data points	down-hole surveys), trenches, mine workings and other locations
used in Mineral Resource estimation.		Soil sample sites were located using MGA Zone 53 (GDA94).
	Specification of the grid system used.		Location data for the soil sites was collected using a hand held GPS
	Quality and adequacy of topographic control.	with +/- 5m accuracy.
Data spacing		Data spacing for reporting of Exploration Results.		Soil samples were collected mostly at 25m spacing with some

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Criteria JORC Code explanation Commentary

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. Whether sample compositing has been applied.	 	collected at 50m spacing. Not applicable - data not used for resource estimation. No sample compositing was undertaken.
Orientation of		Whether the orientation of sampling achieves unbiased sampling of		The sampling grid was predominantly 25m x25m which increased to
data in relation	possible structures and the extent to which this is known, considering	50m x 50m on the margins of the grid. In Monax's view the relatively
to geological	the deposit type.	detailed grid achieves and unbiased sampling program appropriate
structure		If the relationship between the drilling orientation and the orientation	for the style of mineralisation.
of key mineralised structures is considered to have introduced a		Not Applicable, no drilling was undertaken.
sampling bias, this should be assessed and reported if material.
Sample		The measures taken to ensure sample security.		Samples were collected and then taken back to the field camp each
security	night. The samples were transported back to the Monax Office by the
field contractors. Soil sampling program was undertaken by Euro
Exploration who are experienced in this type of sampling program.

Audits or

reviews

 The results of any audits or reviews of sampling techniques and data.  No audits were undertaken.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation Commentary

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 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 soil sampling program was undertaken on Exploration Licence

4581 which is owned 100% by Monax Mining Limited. The tenement is located on Freehold Land.

 The tenement is free of any known impediments.

Exploration done by other parties

 Acknowledgment and appraisal of exploration by other parties.  Initial drilling in the Bonaventura area was undertaken by the South Australian Department of Mines and Energy in 1991. Havilah Resources undertook regional soil and stream geochemical surveys, followed by a drilling program in 2003. Several companies prior to

1990 undertook soil sampling programs in the region. No evidence of any mineral exploration at the soil sampling site has been reported.

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Criteria JORC Code explanation Commentary

metres) of the drill hole collar

 The assumptions used for any reporting of metal equivalent values should be clearly stated.

 No metal equivalent values have been reported.

Relationship between mineralisation widths and intercept lengths	  	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').	 .	Not Applicable for soil sampling program.
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.		Map showing location of survey area included in this report.
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.		Only results relevant to the discussion on the style of mineralisation presented.

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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.		Data from previous exploration has been previously released..
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.		Monax will review newly acquired data to assist in determining the next phase of exploration.

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