7702f099-a5d6-4d4d-8efa-fa4648fafe9d.pdf
Capital Mining LimitedASX: CMY, CMYO
Level 11, 216 St Georges Tce
Perth WA 6000
Telephone +61 8 9481 0389
Fax +61 8 9463 6103
www.capitalmining.com.au
Directors
Mr Peter Torney Mr Peter Dykes
Mr Anthony Dunlop
Company Secretary
Mrs Elizabeth Hunt
ASX Release
1 July 2016
PROJECT UPDATE - CLARIFICATION
Capital Mining Limited (ASX: CMY) ("Capital" or "the Company") provides the attached announcement, replacing the announcement 'Project Update' released yesterday.
The replacement announcement contains additional information pertaining to the Chakola Project.
Peter Dykes
Director
Capital Mining Limited
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Capital Mining LimitedASX: CMY, CMYO
Level 11, 216 St Georges Tce
Perth WA 6000
Telephone +61 8 9481 0389
Fax +61 8 9463 6103
www.capitalmining.com.au
Directors
Mr Peter Torney Mr Peter Dykes
Mr Anthony Dunlop
Company Secretary
Mrs Elizabeth Hunt
ASX Release
1 July 2016
PROJECT UPDATE - CLARIFICATION
HIGHLIGHTS
Planning for next phase of exploration at Chakola Gold Project in NSW underway. Due Diligence on Lithium Project acquisitions ongoing.
Capital Mining Limited (ASX: CMY) ("Capital" or "the Company") is pleased to provide the following update on activities across its project portfolio.
Chakola Gold and Base Metals Project (EL 5697 - CMY 100%)
Capital has commenced planning for the next phase of exploration at its Chakola Project, located near Heron Resources' (ASX: HRR) major Woodlawn Zinc-Copper Project, in southern New South Wales (see Figure 1 - Chakola Project Location Map).
The Company has identified a polymetallic deposit at the Harnett Prospect where previous estimates have indicated the presence of significant gold and base metal mineralization. As indicated in the 2015 Annual Report, the deposit consists of:
1.22 million tonnes with a grade of 0.8g/t gold, 0.5% copper, 8.1g/t silver, 0.4% lead and 0.7% zinc in the Measured, Indicated and Inferred JORC compliant categories. The breakdown of these categories is outlined in Table 1.
It should be noted that the above resource estimate 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 deposit sits within a broader 8km-long horizon of high exploration potential. Mineralisation is open at depth and along strike. Early metallurgical studies have indicated that 80% of the gold and 90% of the copper may be recoverable in a bulk sulphide flotation concentrate (along with lead and zinc).
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Table 1: Resource categories
Figure 1: - Chakola Project Location Map
Capital plans to undertake additional work at the Chakola project to better assess the prospectivity of the Harnett deposit as well as a number of other identified prospects (Figure 2).
Regional exploration in the form of mapping and sampling programs, metallurgical and environmental studies will be continued during the course of 2016 to enhance the existing mineralization and identify any new priority targets.
Capital views Chakola as a potentially significant gold and base metal asset and will provide further details on progress of its exploration programs at the project in due course.
Figure 2: - EL 5697 license boundary (red) and prospects