ASX/MEDIA
ANNOUNCEMENT
13 NOVEMBER 2013
ASX Code: HOR Management
Mr Jeremy Shervington
Non-Executive Chairman
Mr Neil Marston
Managing Director
Mr Michael Fotios
Non-Executive Director
Mr Stuart Hall
Non-Executive Director
Mr Damian Delaney
Company Secretary
Issued Capital
Shares: 86.1 Million
Options:
5.4 Million (45c, exp 5/14)
5.4 Million (60c, exp 5/15) Performance Rights: 3.8 M
Share Price: $0.045
Market Capitalisation:
$3.9 Million
Cash at Bank
(30 September 2013)
$0.92 Million
GRAVITY SURVEY HIGHLIGHTS POTENTIALLY MINERALISED STRUCTURE AT KUMARINA COPPER PROJECT
SUMMARY
• Gravity survey recently completed at Kumarina Project on the Snell North and Kumarina Deeps Prospects.
• Survey designed to help define drill targets at both prospects.
• Survey was successful in identifying gravity low structure coinciding with interpreted magnetic dolerite intrusive and historical shafts at Snell North.
• Company to test these zones in next phase of drilling at Kumarina Project, planned to commence later this month.
• Drilling will be a 10 hole RC programme and will be the maiden drill programme at Snell North Prospect.
Horseshoe Metals Limited (ASX:HOR) ("Horseshoe" or "the Company") is pleased to announce results of its recently completed gravity survey programme at its 100% owned Kumarina Copper Project ("Kumarina Project"), located 100km north of Sandfire Resources NL's (ASX: SFR) DeGrussa Copper/Gold mine in Western Australia (see Figure 1).
The Company completed gravity surveys over the Snell North and Kumarina Deeps prospects at the Kumarina Project (see Figure 2), which were designed to help define targets for upcoming drill programmes at both prospects.
ABN 20 123 133 166
Unit 6/11 Colin Grove, West Perth PO Box 256 West Perth WA 6872
Ph (08) 9481 5866 Fax: (08) 9481 5966 www.horseshoemetals.com.au
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Survey Details
A high-resolution gravity survey was completed on a 50m x 50m grid pattern over a 500m x 1,000m area at the Snell North Prospect. The gravity survey was designed to look for structures and anomalies over an interpreted magnetic dolerite intrusive which appears to coincide with historical shafts recently located within the prospect area.
At the Kumarina Deeps Prospect, a gravity survey was completed on a 100m x 100m grid pattern over a 1,600m x 1,500m area. The survey was designed to detect a coincident gravity response to an interpreted deep magnetic intrusive identified from a previous high-resolution aeromagnetic survey completed by the Company (Figure 2).
Results
Snell North Prospect
The high resolution gravity survey was successful in delineating a north-east tending gravity low corridor, which coincides with an interpreted magnetic dolerite intrusive and recently identified historical copper prospecting shafts (see Figure 3). The newly identified gravity low structure also coincides to a geochemical copper anomaly from soil sampling, indicating that this structure may be related to copper mineralisation. The gravity low is thought to be related to the formation of low density minerals during hydrothermal mineralisation along the north-east trending structure, which is typical of copper mineralisation elsewhere in the Kumarina district.
The stronger gravity lows along the north-east structure may correspond to more intense zones of hydrothermal copper mineralisation, and the Company plans to test these zones in its next phase of drilling at the Kumarina Project, due to commence later this month.
Kumarina Deeps Prospect
The survey results from the Kumarina Deeps Prospect show a very flat gravity anomaly pattern over the strong magnetic high shown in Figure 2. This strong magnetic target was considered to have similarities to the Abra base metal deposit located 100 kms to the west of Kumarina and a similar geological setting (Figure 1). The Abra deposit was discovered by drilling into a coincident magnetic and gravity anomaly caused by the copper-lead-zinc mineralisation and associated alteration minerals.
The flat gravity response at the Kumarina Deeps Prospect downgrades this target for hosting Abra style base metal mineralisation; nonetheless the magnetic anomaly remains a priority target for future drilling.
Future Activities
Drilling
The maiden drilling programme at the Snell North Prospect is due to commence later this month. An initial programme of 10 Reverse Circulation ("RC") drill holes is planned with the collar locations shown in Figure 3. The design of the programme may change depending upon the results of the initial holes.
ENDS
Page 2 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
For further information please contact:
Neil Marston James Moses
Managing Director Media and Investor Relations
Horseshoe Metals Limited Mandate Corporate
T: +61 8 9481 5866 M: +61 420 991 574
M: +61 427 188 768 T: +61 2 8211 0612
E: [email protected] E: [email protected]
About Horseshoe Metals Limited
Horseshoe Metals Limited (ASX:HOR) is a copper and gold focused company with a package of tenements covering approximately 300km2 in the highly prospective Peak Hill Mineral Field, located north of Meekatharra in Western Australia. The Company's projects are the Horseshoe Lights Project and the Kumarina Project (see Figure 1).
About the Horseshoe Lights Project
The Horseshoe Lights Project includes the old open pit of the Horseshoe Lights copper-gold mine which operated up until
1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper including over 110,000 tonnes of Direct Shipping
Ore (DSO) which graded between 20-30% copper.
The Horseshoe Lights ore body is interpreted as a deformed Volcanogenic Hosted Massive Sulphide (VMS) deposit that has undergone supergene alteration to generate the gold-enriched and copper-depleted cap that was the target of initial mining. The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation, which also host Sandfire Resources' DeGrussa copper/gold mine.
Past mining was focused on the Main Zone, a series of lensoid ore zones which passed with depth from a gold-rich oxide zone through zones of high-grade chalcocite mineralisation into massive pyrite-chalcopyrite. To the west and east of the Main Zone, copper mineralisation in the Northwest Stringer Zone and Motters Zone consists of veins and disseminations of chalcopyrite and pyrite and their upper oxide copper extensions.
A Mineral Resource Estimate for the Horseshoe Lights deposit was completed by the Company in June 2013 (see 30 June
2013 Quarterly Report announced on 31 July 2013). The Mineral Resource Estimate meets the reporting requirements of the new 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves"
The total Measured, Indicated and Inferred Mineral Resource Estimate is 12.85 million tonnes @ 1.00% Cu and 0.1 g/t Au
for 128,600 tonnes Cu and 36,000 oz Au (using a cut-off grade of 0.5% Cu).
About the Kumarina Project
The copper deposits at the Kumarina Project were discovered in 1913 and worked intermittently until 1973. The workings extend over nearly 5km as a series of pits, shafts and shallow open cuts. At the main Kumarina Copper Mine, the workings are entirely underground with drives from the main shaft extending for some 200m in the upper levels and for about 100m in the lower levels at a depth of 49m below surface.
Incomplete records post-1960s make it difficult to estimate the total copper production from the workings. However, indications are that the Kumarina Copper mine was the second largest producer in the Bangemall Basin group of copper mines. Recorded production to the late 1960s is 481t of copper ore at a high-grade of 37.0% Cu and 2,340t at a grade of
17.51% Cu.
A Mineral Resource Estimate for the Rinaldi deposit was completed by the Company in June 2013 (see 30 June 2013
Quarterly Report announced on 31 July 2013). The Mineral Resource Estimate meets the reporting requirements of the new
2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves"
The total Measured, Indicated and Inferred Mineral Resource Estimate is 835,000 tonnes @ 1.3% Cu for 10,600 tonnes Cu
(using a cut-off grade of 0.5% Cu).
Page 3 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Figure 1 - Project Location Plan
Page 4 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Figure 2 - Kumarina Project - Prospect Locations over Aeromagnetic Image with interpreted shears and faults
Page 5 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Figure 3 - Snell North Gravity Survey showing a north-east trending gravity low associated with a newly identified Cu mineralised trend
Page 6 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Table 1 - JORC Code Reporting Criteria
Section 2 Reporting of Exploration Results
|
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 Kumarina Project comprises one Mining Lease (M52/27) and one Exploration Licence (E52/1998) covering an area of approximately
217km2. Current registered holder of the
tenements is Murchison Copper Mines Pty Ltd which is a wholly owned subsidiary of Horseshoe Metals Limited.
Murchison Copper Mines Pty Ltd has 100%
interest in the tenements.
Native title interests exist over E52/1998 but have been extinguished in regards to Mining Lease 52/27.
There are no known historical or environmentally significant sites on E52/1998.
|
|
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.
|
M52/27 and E52/1998 are both in good standing
and the Company is unaware of any
impediments to it obtaining a licence to operate in the area.
|
|
Exploration done by
other parties
|
Acknowledgment and appraisal of exploration
by other parties.
|
The Kumarina copper deposits were discovered
in 1913 and worked intermittently till 1973. The Kumarina Copper Mine was the second largest producer in the Bangemall Basin group of copper mines. Recorded production to the late
1960s is 481 tonnes of copper ore at a high-grade of 37.0% Cu and 2,340 tonnes at a grade of
17.5% Cu. No underground working plans are available and only limited descriptions of the workings are provide in 1979 GSWA Mineral Resource Bulletin 13.
Carpentaria Exploration Ltd drilled 2 diamond drill holes at the Rinaldi deposit in 1962. The first hole was drilled underneath the main workings and intersected 6.7m @ 5.6% Cu from 30.5m downhole. The second hole was drilled approx
50m to the north but failed to intersect significant mineralisation. No detailed information or core is available for this drilling.
Westfield Minerals (WA) NL drilled a diamond drillhole beneath the lowest level of the Kumarina copper mine underground workings in
1965 but failed to intersect significant
mineralisation. No detailed information or core is available for this drilling.
|
Page 7 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
|
Criteria
|
JORC-Code Explanation
|
Commentary
|
|
Exploration done by other parties
|
Acknowledgment and appraisal of exploration by other parties.(continued)
|
St Barbara Mines Ltd completed limited exploration over the Kumarina area between
1992 and 1998 and focused on the Kumarina and
Rinaldi workings. Activities included geological mapping, gridding and rock sampling. In 1998, 51 aircore holes for 2,062m were completed at the Kumarina and Rinaldi workings and sample composites over 6 metres were assayed for Cu, Au, Ag, Co, As, Pb and Mg. Four holes intersected multiple lodes that returned assays from composited samples between 1.15% and
3.50% Cu. Detailed information is available for this drilling and has been incorporated into the Kumarina Drillhole database.
Murchison Copper Mines Pty Ltd applied for exploration licence E52/1998 in 2006 and focused on interpretation of aeromagnetic and radiometric data to generate a structural and lithological base model. They also collected Quickbird satellite imagery to enhance structural information and to assess alteration data with the aim of generated exploration targets.
|
|
Geology
|
Deposit type, geological setting and style of
mineralisation.
|
The Kumarina project lies entirely within the
Mesoproterozoic Collier Basin in the Backdoor Formation and overlying Calyie Sandstone. Both of these units belong to the Collier Group.
The Backdoor Formation is the dominant sedimentary bedrock occurring in the centre of the project area and forms the base of the Collier Group. It is comprised of a relatively undeformed sequence of gently north-dipping siltstones, with interacted layers of sandstone and shale, and occasionally carbonate inter-beds.
The Calyie Sandstone sits over the Backdoor Formation and consists of predominant quartz arenites with layers of conglomerate, siltstone and shale. It occurs in the NW, NE and SE part of the project area, indicating that the centre of the survey area has been structurally uplifted or formed a paleo-topographic high.
The other major rock type within the project area is mafic to intermediate intrusions.
|
Page 8 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Criteria JORC-Code Explanation Commentary
Geology Deposit type, geological setting and style of mineralisation (continued).
Regolith deposits include colluvium, alluvium and laterite, with lesser amounts of calcrete and sandplain. Most of survey area is mapped as colluvium and there has been no exploration in the covered areas.
The copper mineralisation occurs as structurally controlled hydrothermal veins of quartz and copper sulphide, with no other significant base metals or precious metals discovered to date. The host rocks are fine grained sediments of the Backdoor Formation or deformed intermediate intrusions. The copper mineralisation is not stratabound or restricted to any particular host rock or horizon.
Two main styles of mineralisation have been recorded in the area. The Kumarina Copper mine and all other surface workings display copper bearing quartz veins occurring along kaolinised NE trending faults near contacts with dolerite dykes and sills. Quartz veins have sub-vertical dips, and have average widths of 1-2 m, with a maximum of 9 m. They are brecciated in places and can form parallel vein sets. In the near surface, the copper minerals are mostly chrysocolla, malachite, azurite and native copper.
At the Rinaldi Deposit the copper is hosted in a sub-vertical N-S trending fault which has deformed a quartz diorite sill intruded within locally deformed siltstones. No associated alteration is evident at Rinaldi. Copper oxide mineralisation at surface grades downward into cuprite and chalcocite, before chalcopyrite in unweathered rocks at depths greater than 50m.
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:
• easting and northing of the drill hole collar
• elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
• dip and azimuth of the hole
• down hole length and interception depth
• hole length.
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.
Not applicable.
Page 9 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Criteria JORC-Code Explanation Commentary
Data aggregation methods
Relationship between mineralisation widths and intercept lengths
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should be clearly stated.
These relationships are particularly important in the reporting of Exploration Results.
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').
Not Applicable.
Not Applicable.
Not applicable. Not applicable.
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.
Balanced reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Not applicable.
Not applicable.
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.
The Snell North drill programme is based on an anomalous aeromagnetic and gravity zone which is interpreted to be a NNE trending fault zone. Geochemical observations from Auger soil sampling in 2012 also show coincident copper anomalism in this area. Three recently discovered prospecting shafts about 10m deep access ore drives along this trend and historically worked high grade copper oxide mineralisation.
Further work The nature and scale of planned further work (e.g. 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.
The company will continue to interpret geochemical and geophysical data to outline drill targets over the tenement area. It also plans to drill test depth and lateral extensions at Rinaldi and the historical Kumarina Copper Mine.
See body of text and previous announcements.
Page 10 of 11
ASX ANNOUNCEMENT 13 NOVEMBER 2013
Competent Persons Statement
The information in this release that relates to Exploration Results is based on information compiled by Dr Jayson Meyers who is a Fellow of the Australian Institute of Geoscientists. Dr Meyers is a consultant to Horseshoe Metals Limited 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". Dr Meyers consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.
The information in this report that relates to the Horseshoe Lights Project Mineral Resources is based on information compiled by Mr. Dmitry Pertel, who is a member of the Australian Institute of Geoscientists. Mr. Pertel is an employee of CSA Global Pty Ltd. The information was previously issued with the written consent of Mr Dmitry Pertel in the Company's 30 June 2013 Quarterly Report released to the ASX on 31 July 2013. The Company confirms that:
(a) the form and context in which Mr. Dmitry Pertel's findings are presented have not been materially modified.
(b) it is not aware of any new information or data that materially affects the information included in the 31
July 2013 ASX announcement and that all the material assumptions and technical parameters underpinning the estimate in the 31 July 2013 ASX announcement continue to apply and have not materially changed.
(c) it is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as mineral resources in accordance with the JORC Code.
The information in this report that relates to the Kumarina Project (Rinaldi Prospect) Mineral Resources is based on information compiled by or under the supervision of Mr Robert Spiers, who is a member of the Australian Institute of Geoscientists. Mr Robert Spiers is an independent consultant to Horseshoe Metals Limited and a full time employee and Director of H&S Consultants Pty Ltd (formerly Hellman & Schofield Pty Ltd). The information was previously issued with the written consent of Mr Robert Spiers in the Company's 30
June 2013 Quarterly Report released to the ASX on 31 July 2013. The Company confirms that:
(a) the form and context in which Mr Robert Spiers' findings are presented have not been materially modified. (b) it is not aware of any new information or data that materially affects the information included in the 31
July 2013 ASX announcement and that all the material assumptions and technical parameters
underpinning the estimate in the 31 July 2013 ASX announcement continue to apply and have not materially changed.
(c) it is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as mineral resources in accordance with the JORC Code.
Page 11 of 11