30th July 2015
ASX Release
ASX Code: SMC
QUARTERLY ACTIVITY REPORT FOR THE PERIOD ENDED
30th June 2015
W OOL G A R G OL D P R O J E C T QUE E N S L A N D
Highlights from the June Quarter include:
Updated resource for Big Vein South of 6.19MT at 2.14 g/t gold at a 0.75g/t gold cut-off containing
426,000 oz. For full details of these results, please refer to "Resource Update for Big Vein South and
Central" issued on 9th June 2015, available at www.stratmin.com.au.
Preparations for the 2015 field program, including:
Commissioning an Induced Polarisation (IP) geophysical survey, currently underway.
A comprehensive review of targets highlighted in the recent district-scale data review.
A Reverse Circulation (RC) drill program planned for the third quarter of 2015.
Continued internal review of the Woolgar District in order to build on the recent highly successful exploration programs and prioritise future exploration activities as part of a medium to long-term
corporate strategy.
Resource Update for Big Vein South and Central
On June 9th, 2015 , the company announced a substantial update to the resource at Big Vein South and
Central. Highlights include:
A global resource of 6.19MT at 2.14 g/t gold at a 0.75g/t gold cut-off containing 426,000 oz.
Category MTonnes Au g/t Au Kozs Density t/m3
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Measured
Indicated
Inferred
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0.17 2.35 13 2.59
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Measured
Indicated
Inferred
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2.90 2.12 197 2.69
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Measured
Indicated
Inferred
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3.13 2.15 216 2.71
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Total 6.19 2.14 426 2.70
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Strategic Minerals Corporation N.L.
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ι
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58 Jersey Street, Jolimont
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www.stratmin.com.au
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ASX Code: SMC
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Western Australia, 6014
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[email protected]
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ACN: 008 901 380
ABN: 35 008 901 380
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P.O. Box 66
Floreat Forum. WA 6014
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(08) 9284 1255
(08) 9387 7331
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STRATEGIC MINERALS CORPORATION NL
ABN 35 008 901 380
QUARTERLY REPORT 30 June 2015
Geological modelling indicates that the Big Vein South and Big Vein Central zones are a continuous structure with minor fault offsets, rather than discrete lenses.
Figure 1: Geological Interpretation of the Mineral Zones, showing drillhole location and the base of partial oxidation.
Figure 2: 2015 BVS Resource Estimate: Gold Block Grade Distribution (>0.75g/t), (upper figure: looking down to grid NE, lower figure: looking down to NW)
ASX:SMC 2 of 7
STRATEGIC MINERALS CORPORATION NL
ABN 35 008 901 380
QUARTERLY REPORT 30 June 2015
Grade-Tonnage
A series of grade-tonnage values for a range of gold cut off grades for the global estimates are presented as a plot of the grade-tonnage curves (Figure 4).
10.0
8.0
6.0
4.0
2.0
3.00
2.50
2.00
1.50
1.00
0.50
Figure 4: BVS Grade- Tonnage Curves.
Mt
Au g/t
0.0
0 0.5 1 1.5 2
Gold Cut-off Grade, g/t
0.00
Exploration Potential
Substantial exploration potential exists in the immediate vicinity of the mineral zones within the interpreted mineral wireframes. An Exploration Target at a 0.75g/t Au cut-off of 9 to 20Mt at 1.8 to 2.2g/t for 0.5 to 1.0Moz is defined by using the results from the third estimation run and the unfilled blocks within the mineral wireframes.
The potential quantity and grade of the Exploration Target is conceptual in nature, as there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of an expanded Mineral Resource.
Figure 3 : BVS Deep Exploration Potential, (colours = the 4 different mineral zones).
Future Work
Based on the Exploration Potential, additional targeted infill drilling programs in the BVS/BVC deposit are required to upgrade the resource estimates. It is anticipated that a limited amount of drilling will allow for a substantial expansion of the mineral resource albeit in the Inferred Category. Future improvements will include standardisation of the drillhole database and improved capture of relevant data which will assist
any upgrade in the classification of the estimates.
ASX:SMC 3 of 7
STRATEGIC MINERALS CORPORATION NL
ABN 35 008 901 380
QUARTERLY REPORT 30 June 2015
Additional Resource Estimates (2004 JORC Code & Guidelines)
The Woolgar Project also hosts further resource estimates published under the 2004 version of the JORC Code. These include resource estimates over epithermal and intrusion related styles of mineralisation, which differ in their characteristics from the mesothermal style mineralisation reported in this updated resource statement. There is insufficient information currently to determine whether these varying styles of mineralisation have compatible metallurgy, nor that further studies will determine this to be so and the Company makes no representation to this effect.
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.
The additional global resource estimates, excluding the previous and new resource estimates for the BVS area, are 25.4 MTonnes at 1.09 g/t gold for 795,400oz. of gold for a range of cut-offs between 0.4 and 1.0 g/t gold, see Table 1 in Appendix Two. For the complete JORC 2004 resource statement, please refer to "QUARTERLY ACTIVITY REPORT FOR THE PERIOD ENDED 31st MARCH 2013" published 30th April 2013, available at www.stratmin.com.au
Strategic Exploration Planning
During the Quarter the company has been building on the recent internal data review discussed in the March 2015 Quarterly report, in order to plan future on- going exploration programs. This has effectively delineated a three stage plan based on:
1. A short to medium term target generation and definition program to follow up on recent results and technical advances by testing and comparing numerous target to better prioritise ongoing exploration expenditure, including:
a. Geological mapping, geochemical sampling and alteration vectoring;
b. Geophysical methods, such as IP and aeromagnetometry; and c. Targeted scout drilling with RC only.
2. A medium term program of prospective drilling of the targets defined in Phase 1, including:
a. Follow-up drill programs with RC, or Diamond if required; and b. Close-spaced geophysics to help maximise drilling efficiency.
3. A long-term resource definition program of the successful discoveries from Phase 2. This will
involve:
a. Detailed RC and Diamond drilling;
b. Metallurgical studies;
c. Geotechnical and engineering studies;
d. Environmental and Social Impact studies; and e. Commercial scoping studies.
The first phase of this work has now commenced.
ASX:SMC 4 of 7
STRATEGIC MINERALS CORPORATION NL
ABN 35 008 901 380
QUARTERLY REPORT 30 June 2015
Preparation for 2015 Exploration Program
During the June Quarter, the Company planned and commissioned multiple programs for 2015. The most significant of these are the IP Geophysical survey and the RC drilling program. The IP survey has now commenced and the drilling program is scheduled to commence in the September Quarter.
IP Geophysical Survey
This program commenced in mid-July and will be completed prior to the RC drill program. The initial survey with limited IP lines over multiple prospects and styles of mineralisation is designed to first confirm the effectiveness of the survey technology to these styles and rock-types, and to potentially generate targets for drill testing.
The prospects and targets being tested are:
BVS: Testing depth and strike potential of the known mineralisation with two initial lines.
Mowbray, BVN, Ironclad and Mowbray NE: Testing the strength and potential of the Mowbray structure beneath the historic workings in the area of low-grade, shallow drill results, and testing the potential of the multiple sub-parallel structures locally through the area of flexure of the Woolgar Fault Zone.
Sandy Creek: Testing the depth potential beneath known shallow to mid depth resources and strike extension of several structures in the district.
Soapspar: Testing for depth potential beneath the known stacked mineral chutes.
Union and Perseverance: Testing the depth potential beneath significant historic workings in areas of low to moderate grade, shallow drill intercepts.
Drill Preparation
The 2015 drill program is expected to concentrate on resource infill and extension drilling on BVS and BVC, with a secondary aim of initial drill testing of significant IP anomalies in the Lower Camp.
Wally Martin
MANAGING DIRECTOR
COMPETENT PERSON STATEMENT
The information in the report to which this statement is attached that relates to Exploration Results is based on information compiled by Alistair Grahame, a Competent Person who is a Member of The Australian Institute of Geoscientists. Mr Grahame is a full-time employee of Strategic Mineral Corporation NL. Mr Grahame has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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'. Mr Grahame consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
ASX:SMC 5 of 7
STRATEGIC MINERALS CORPORATION NL
ABN 35 008 901 380
QUARTERLY REPORT 31 MARCH 2015
Appendix One: Project Overview
Figure 4: Location map of Woolgar, showing the regional provinces of northeast Queensland and significant gold deposits. As can be seen, the Woolgar Goldfield corresponds to an inlier (erosional window) of the highly prospective and historically productive Etheridge Province exposed within the overlying generally unprospective sedimentary cover sequences.
The Woolgar Project consists of exploration permits and mining leases, located approximately mid-way between Townsville and Mt Isa, north Queensland. The Woolgar district is an area of basement rocks exposed within younger sedimentary cover. Woolgar was the location of a gold rush in the 1880's, with intermittent alluvial and small-scale, shallow, reef mining thereafter. The widespread historic workings and subsequent exploration work has identified this district as having strong potential to host significant gold mineralisation, see Figure 3.
The mineralisation is associated with the Woolgar Fault Zone (WFZ), a regional-scale structure trending east-northeast through the Woolgar project area that is also related to the historic Kidston mine to the north, see Figure 3. Strategic has identified epithermal vein deposits in the Sandy Creek, mesothermal veins along the WFZ and intrusive related mineralisation at Soapspar, as well as the alluvial gold associated with
these.
ASX:SMC Page 6 of 7
STRATEGIC MINERALS CORPORATION NL
ABN 35 OOB 901 330
QUARTERLY REPORT 31 MARCH 2015
The current focus is on the mesothermal veins in the Lower Camp area, situated at the southern end of the extensive mesothermal vein field associated with the WFZ. Here, the WFZ undergoes localised flexure through an intersection with district-scale structures. This style of structural location is considered highly prospective due to its potential to create geologica! conditions favourable far the emplacement and deposition of mineralisation.
LEGEND
- - Roads • M•jor, IAi10r
Drailage
Strategie Minerals Tenement•
-- -EPM
--- Mining Lease
- - -Mining Lease Applicalion
Geologica!Features
--- Vein Zanes
--- OidWor1
- - -Pnn:ipalFaults
Regionol Geology
c::==::::J Qua(emi>')' Aluvium
c::==::::J JurSand;tone,Conglomerélte
c::==::::J Proterozoic Gneiss schGranle
Scale 1 : 150 000
O 2km 5km
LJuW l
Roc&JCADfle· SIA_WlG_Ol.DWG
r--------------, l l l l l l
l l
r --- - 1 l
l
l
l l l l
781 m
l l l l l l l
l
l l l l l
l l l
L---- - --
EPM 14060
780IJIX)I)m
Figure 5: Simplified geological map ofthe Woolgar Project,highlighting the five main sectors {camps) and the Big Vein South and
Centrai prospects drilled in the 2014 campaign.
Page 7 of 7
Appendix 5B Mining exploration entity quarterly report
Appendix 5B
Mining exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013
Name of entity
STRATEGIC MINERALS CORPORATION NL (SMC)
Rule 5.3
ABN Quarter ended ("current quarter")
35 008 901 380 30 June 2015
Consolidated statement of cash flows
Cash flows related to operating activities
1.1 Receipts from product sales and related debtors
1.2 Payments for: (a) exploration & evaluation
(b) development
(c) production
(d) administration
(e) project development costs
1.3 Dividends received
1.4 Interest and other items of a similar nature received
1.5 Interest and other costs of finance paid
1.6 Income taxes paid
1.7 Other
Net Operating Cash Flows
Appendix 5B Page 1
Appendix 5B
Mining exploration entity quarterly report
1.13 Total operating and investing cash flows (brought forward)
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(361)
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(625)
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Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. net of costs
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other (provide details if material)
Net financing cash flows
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-
-
-
-
-
-
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-
-
-
-
-
-
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Cash flows related to financing activities
1.14 Proceeds from issues of shares, options, etc. net of costs
1.15 Proceeds from sale of forfeited shares
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other (provide details if material)
Net financing cash flows
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-
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-
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Net increase (decrease) in cash held
1.20 Cash at beginning of quarter/year to date
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter
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(361)
1,516
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(625)
1,780
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Net increase (decrease) in cash held
1.20 Cash at beginning of quarter/year to date
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter
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1,155
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1,155
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Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities
Current quarter
$A'000
1.23 Aggregate amount of payments to the parties included in item 1.2 63
1.24 Aggregate amount of loans to the parties included in item 1.10 -
1.25 Explanation necessary for an understanding of the transactions
Directors payments, corporate management fees paid to associated company
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
Nil
2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest
Nil
Financing facilities available
Add notes as necessary for an understanding of the position.
3.1 Loan facilities
3.2 Credit standby arrangements
Appendix 5B Page 2
Estimated cash outflows for next quarter
Appendix 5B Mining exploration entity quarterly report
4.1 Exploration and evaluation
4.2 Development
4.3 Production
4.4 Administration
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.
Interests in Mining Tenements
Disclosure in accordance with ASX Listing Rule 5.3.3
Project / Tenements
Woolgar Gold Project
EPM 11886 Woolgar W
EPM 9599 Woolgar C
EPM 14209 Woolgar S
EPM 14060 Woolgar E
EPM 13942 Steam Engine
ML 2642 Soapspar 1
ML 2793 Soapspar 2
ML 2729 Mowbray 3
ML 2739 Mowbray
Woolgar Uranium Project
ML 2728 Perseverance
ML 90044 Sandy Creek Dam
ML 90122 Sandy Creek Plant
(1) Owned through control of Alpha Uranium Limited (wholly owned subsidiary of Strategic)
Farm-in Agreements / Tenements
Appendix 5B Page 3
Appendix 5B
Mining exploration entity quarterly report
Farm-out Agreements / Tenements
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
7.12 Unsecured notes
(totals only)
Appendix 5B Page 4
Compliance statement
Appendix 5B Mining exploration entity quarterly report
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).
2 This statement does give a true and fair view of the matters disclosed.
Signed: Dated: Thursday, 30 July 2015
Company Secretary
Print name: JAY STEPHENSON
Notes
1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
3 Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash
Flows apply to this report.
5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.
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Appendix 5B Page 5