9d925f0d-a5ed-45c3-b251-5a2aa8cb8cc9.pdf
Matsa Resources Limited
LIMITED
ABN 48 106 732 487
ASX Announcement 19th January 2016
Siam Copper Project Thailand Exploration Update
HIGHLIGHTS
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Diamond drillhole 16SCDD002 intersected trace amounts of visible, finely disseminated native copper mineralisation in andesite lavas, from 53m to its current depth of 83m
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The native copper mineralized lavas observed so far in 16SCDD002 were intersected well above the IP target depth of ~200m
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Drilling has been temporarily suspended on a voluntary basis because of a local issue concerning land ownership over parts of the Matsa tenements within the current area of drilling
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Matsa expects a prompt resolution to the matter
CORPORATE SUMMARY
Executive Chairman
Paul Poli Director Frank Sibbel
Director & Company Secretary
Andrew Chapman
Shares on Issue
144.15 million
Unlisted Options
8.44 million @ $0.25 - $0.40
Top 20 shareholders
Hold 51.78%
Share Price on 18 January 2016
15.5 cents
Market Capitalisation
$22.34 million
Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Tel: +61 8 9230 3555 Fax: +61 8 9227 0370
Bangkok Office: Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Tel: +66 0 2653 0258 Fax: +66 0 2653 0258 [email protected] www.matsa.com.au
DIAMOND DRILLING PROGRAMME
Matsa Resources Limited ("Matsa" or "the Company" ASX:MAT) is pleased to provide an update on diamond drilling at the Company's Siam 1 copper prospect in Central Thailand. A total of 9 diamond drillholes for a total of 1,500 - 2,300m of drilling is planned to test 5 high priority IP anomalies. (Refer MAT announcements to ASX 16th November 2015 and 11th December 2015).
The objective of the drilling is to test the concept that IP targets represent copper sulphide mineralisation underlying/adjacent to areas of copper mineralised float and associated soil copper anomalies. A description of exploration methods used, tenement status and assay procedures is provided as Appendix 1.
Drilling completed to date is summarised in Table 1.
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Prospect
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Drillhole
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Target
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East
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North
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Dip
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Azimuth
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Depth
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Siam1W
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15SCDD001
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5
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7695
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74196
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-60
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140
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227.1
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Siam1W
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16SCDD002
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3
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7387
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75243
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-60
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90
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83
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Table 1: Siam 1W, diamond drillhole progress
Drillhole 15SCDD001 was designed to test IP target 5. Poor ground conditions led to the hole being stopped at 227.1m which coincides approximately with the depth at which the IP target was expected to be intersected. Pyrite (iron sulphide) rich sediments were intersected below 53m to the end of the drillhole and are interpreted to be the likely source of IP anomaly 5.
Drillhole 16SCDD002 was located to test IP target 3. This drillhole intersected basaltic andesite lavas to its current depth of 83m, which is well above the depth of 200m at which the IP target is expected to be intersected. Visible finely disseminated native copper mineralisation with grain size generally
A local dispute concerning which provincial government department has jurisdiction over the land underlying the current drill site location emerged after commencement of drillhole 16SCDD002. As such, Matsa has voluntarily suspended drilling until the issue is resolved. Matsa is co-operating will all parties and expects the matter to be resolved within a short timeframe.
Executive Chairman Mr Paul Poli stated, "We are very encouraged with the first geological observations coming from the diamond core and are very pleased with progress so far."
Mr Poli added, "a significant majority of locals and business persons understand the significant economic, health and life style benefits that would be delivered to all persons in the region should a successful mine be developed in the area. The large majority of Thai's are keen to see the land management matter resolved."
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SIAM COPPER PROJECT BACKGROUND
The Siam Copper project comprises 20 SPL's and 29 SPL applications for an area of 635 km2. The licences cover strongly anomalous copper values seen in regional stream sediment samples which were collected by the Thailand Department of Mineral Resources (DMR). The area comprises mostly cleared farmland with well-developed infrastructure including all weather roads and power supply.
Subsequent stream sediment sampling carried out by Matsa confirmed key results with copper values up to 326ppm Cu as previously announced (eg MAT report to ASX 31st July 2011).
Based on this data, a number of stream sediment anomalies were identified for detailed evaluation with Matsa's initial focus on the Siam 1 and Siam 2 prospects.
For further Information please contact:
Paul Poli Frank Sibbel
Executive Chairman Director
Phone +61 8 9230 3555
Fax +61 8 9227 0370
Email [email protected]
Exploration results
The information in this report that relates to Exploration results is based on information compiled by David Fielding, who is a Fellow of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and 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'. David Fielding consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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Matsa Resources Limited
Appendix 1 - Matsa Resources Limited
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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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.
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Thailand: Sampling carried out according to well established procedure. Soil samples are taken as close as possible to the top of the weathered rock profile rather than in overlying vegetation rich A horizon material. Auger soil samples were collected using a portable power auger during the quarter. A sample is collected at a reasonably consistent colour change interpreted the base of residual soil over weathered rock. Typically auger sample depths are > 0.5m. Stream sediments samples represent active bed load in defined drainage channels Pool sampling refers to collection of samples in flat lying heavily cultivated areas (eg areas of rice cultivation) where there is a strong possibility of extensive overbank silt accumulation at surface, masking normal geochemical dispersion. Pools are the local term for excavations for water management.
These sites contain exposures of the weathered profile enabling collection of typically a vertical channel sample of B horizon material equivalent to the auger sample above and well below transported overbank silts.
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Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
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Surface geochemical sample locations are picked up using hand held GPS and recorded onto database.
Soils and streams: Sufficient bulk (unscreened) sample is bagged in the field to provide 100g of -80# fraction at the laboratory and to enable selection of duplicates to be run for QA QC purposes.
Rocks, typically 1-2kg collected, and submitted for crushing and grinding at lab. Rock samples may not be representative but are selected as being visually interesting and distinctive.
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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 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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Stream Sediment Samples and soil samples (Thailand)
Bulk samples of active stream silt and B horizon soils were submitted for assay where samples were dried and further reduced by screening with assays carried out on the -80# fraction. A 0.5gram sample of the -80# fraction digested by Aqua regia acid digest and 23 elements including Cu were read by ICP OES to a reported detection limit of 1ppm Cu.
Auger Samples are assayed using a 4 acid digest and read by ICP OES. This provides significantly lower detection limits than the three acid digest above for target base metals and selected pathfinder assay. All auger assays to date have been carried out by ALS Global Perth.
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