barbara jv partners commit to expanded feasibility … · barbara project, particularly in the...
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ASX ANNOUNCEMENT – 21 January 2015
BARBARA JV PARTNERS COMMIT TO EXPANDED FEASIBILITY
STUDY FOR QUEENSLAND COPPER-GOLD PROJECT
New development approach set to deliver a range of benefits and project enhancements
Key Points:
• New development proposal for the Barbara Copper-Gold Project received from
CopperChem, resulting in a decision to significantly expand the scope of the current
Barbara Open Pit Feasibility Study.
• The key element of the CopperChem proposal and the expanded Feasibility Study is the
inclusion of on-site ore processing at Barbara using a transportable plant to be sourced,
installed and managed by CopperChem.
• CopperChem will continue to fully fund the expanded Feasibility Study until conclusion.
• This approach has the potential to unlock a number of compelling benefits for the JV in the
areas of operating costs, treatment, refining and selling charges, reduced upfront capital
expenditure and infrastructure investment, and an extended mine life.
• The expanded Feasibility Study will also fully incorporate recently identified additions to
the Barbara Mineral Resource inventory, including the maiden resource at Lillymay and
potential underground extensions at Barbara identified below the open pit.
• Drilling to resume in early 2015 targeting recently identified opportunities, including a
strong EM conductor at Barbara Deeps, extensions to Lillymay and more than a dozen
other prospects. The objective of this work is to establish a 5-7 year mine life at Barbara.
• The Barbara Project is highly leveraged both to improvements in the Australian Dollar
copper price as a result of a weakening currency and to increases in the resource
inventory.
Syndicated Metals Limited (ASX: SMD – “Syndicated” or “the Company”) is pleased to advise that it
has reached agreement with its joint venture partner CopperChem Limited to extend the scope of
the Feasibility Study on its Barbara Copper-Gold Project in North Queensland to incorporate a
number of recently identified enhancements to the project.
The new development approach – which is based on a proposal to undertake on-site processing
using a low-cost transportable facility – is expected to unlock a range of significant benefits for the
Barbara Project, particularly in the all-important areas of operating costs, treatment, refining and
selling charges for copper concentrate produced and upfront capital expenditure.
These improvements would, in turn, translate into enhanced economic and financial returns.
Assets, Experience, Growth
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The original scope for the Barbara Copper Project Feasibility Study was based on a two-year open pit
mining operation on the Barbara deposit only, with ore haulage to the CopperChem plant at
Cloncurry.
While the Open Pit Feasibility Study has been progressed to an advanced stage, the Joint Venture
has decided to expand its scope to incorporate the new on-site processing scenario and include
other additions to the Barbara Mineral Resource inventory which could provide significantly
improved financial returns based on a 5-7 year life-of-mine (LOM) plan.
The work completed to date as part of the Feasibility Study indicates that the Barbara Project is
highly leveraged both to improvements in the Australian Dollar copper price as a result of the
weakening currency and increases in the resource inventory. The expanded study will incorporate
updated assumptions for both the copper price and exchange rate, both of which have moved
considerably over the past six weeks.
CopperChem has agreed to continue to fund the expanded Feasibility focusing on the on-site
processing scenario, which includes initial treatment to a sulphide concentrate at Barbara followed
by optional further treatment at the Cloncurry plant.
The Barbara Joint Venture will undertake further drilling programmes at Barbara and at the
identified satellite deposits to deliver the Mineral Resources to support a 5-7 year LOM. The drilling
programmes will target extensions to the Barbara deposit into underground mining positions and
already identified satellite deposits.
The permitting and approvals process for the Barbara open pit operation is well advanced with
Landholder access agreements signed and Mining Lease applications under consideration.
The study work completed to date, including the permitting and approvals and the Mining Lease
application, will enable the Joint Venture partners to advance the project rapidly, pending a positive
result from the expanded Feasibility Study. It is anticipated that the expanded study will be
completed in Q3 2015.
New Development Pathway
The key elements which will now be incorporated in the expanded Barbara Feasibility Study include:
• As per the proposal received from CopperChem, a plan to develop Barbara using an
innovative, on-site but transportable processing facility which would result in the production
of copper concentrate on-site. This would significantly reduce the transportation and
treatment costs (TCs) which would otherwise be incurred by hauling ore to Cloncurry and/or
selling Barbara ores to existing operators in the region. TCs in the copper industry are
currently at a cyclical high;
• The on-site plant would be sourced, installed and managed by CopperChem;
• An option to produce rougher concentrate at Barbara and transport it to CopperChem’s
Cloncurry processing plant for final processing into high grade concentrate;
• The significant opportunity to increase the overall copper mineral resource inventory, both
at Barbara and in the surrounding area as a result of a number of recent developments,
including:
o The discovery of a strong EM conductor at depth between Barbara South Lode and
Barbara Mid Lode, which represents a priority target for extending the Barbara
Mineral Resources;
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o The establishment of satellite developments such as at the Lillymay deposit, for
which Syndicated recently announced a maiden Inferred Mineral Resource of
225,295t @ 2.33% Cu for 5,250 tonnes of contained copper (refer ASX
Announcement – 16 December 2014). The Joint Venture believes there is outstanding
potential to further increase the resource at Lillymay and define additional resources
at other regional prospects including Mt Olive, Greenback and Greenzone; and
o The delineation of a number of prospective new exploration targets, located both
within the Barbara Joint Venture tenure and 100%-owned ground.
2015 Exploration Program
Barbara
During 2014, Syndicated completed eight diamond drill holes targeting the Barbara Deeps project.
These holes intersected both the Southern Lode and Northern Lode mineralisation approximately
300m below surface (refer to Figure 1).
As part of this program, down-hole electromagnetic (DHEM) surveys were conducted from a number
of the deeper holes. These surveys have identified a significant EM conductor at depth below Mid
Lode, between South and North Lodes. Diamond drilling into Mid Lode indicates the presence of
vein-style chalcopyrite mineralisation immediately up-dip of the conductor, with assay results of 6m
at 2.23% Cu (BADD029) and 0.9m at 2.14% Cu (BADD030) (refer ASX Announcement 24 September
2014).
The Joint Venture partners are very encouraged by the presence of this additional conductor, which
is in an ideal location for future underground mining. The Company’s exploration team will test the
new EM conductor in early 2015 with a program of deep diamond drilling aimed at further
increasing the Barbara Deeps Mineral Resource inventory.
Figure 1 – Barbara Long Section indicating the location of the Barbara Underground drill holes and
DHEM plate below Mid Lode.
Lillymay
Syndicated has recently reported a maiden JORC Mineral Resource estimate for the high-grade
Lillymay Satellite deposit, located 4km south-west of Barbara (refer ASX Announcement – 16
December 2014). Lillymay has the potential to be a valuable source of high-grade mineralisation
feeding into the broader Barbara development.
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As part of the drilling program which defined the initial Mineral Resource, two DHEM plates were
located indicating the potential for significant extensions of the high-grade mineralisation below a
depth of 100m and into potential future underground mining positions (refer to Figure 2).
This work also highlighted potential extensions to the surface mineralisation both east and west of
the Resource (refer to Figure 3).
In light of these near-term exploration opportunities, the Company has maintained its Exploration
Target for Lillymay of 0.4-0.8 Mt @ 2-3% Cu based on the average true width and grade of the 18 RC
holes drilled to date extrapolated over 600m of strike to a depth of 125m below surface. The
Exploration Target at Lillymay is conceptual in nature and there has been insufficient exploration to
estimate a Mineral Resource in compliance with the JORC Code. It is uncertain if further exploration
will result in the estimation of a Mineral Resource as defined by the JORC code.
Drilling is scheduled to re-commence at Lillymay in February 2015.
Figure 2 – Long section showing pierce points through the Lillymay veins.
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Figure 3 – Plan showing Lillymay Prospect with Eastern and Western Extensions.
Greenback and Greenzone
The Greenback and Greenzone prospects lie at either end of the Barbara Shear Zone. Geologically
these prospects represent the intersection of the NW-SE oriented Barbara Shear Zone with the more
northerly Greenback and Greenzone shears.
Both prospects contain a number of previous RC drill intersections and represent attractive walk-up
drill targets to expand the Mineral Resources available to the Barbara Copper project.
Previous RC drill results at Greenzone include :
• 10m @ 0.96% Cu from 82m down-hole in GZRC002
• 24m @ 0.83% Cu from 32m down-hole in GZRC003
• 8m @ 1.05% Cu from 56m down-hole in GZRC006
• 8m @ 1.81% Cu from 6m down-hole in GZRC020
Previous RC drill results at Greenback include:
• 2m @ 0.98% Cu from 72m down-hole in GBRC003
• 9m @ 0.93% Cu from 40m down-hole in GBRC005
These prospects were drilled by Syndicated in 2010 and 2011 and have been re-interpreted using
the enhanced geological knowledge of the area developed from the significant geological work
completed at Barbara throughout 2013/2014. Refer to Table 1 and the JORC table attached.
Other Prospects Within Barbara JV
The Barbara Copper Project consists of 100km2 of tenure over three tenements (refer to Figure 4).
Soil geochemical surveys conducted in 2013 and 2014 have highlighted an additional 15 prospects
within the JV tenure that are yet to undergo any drill testing. Many of these prospects contain
historical workings that indicate high-grade oxide copper mineralisation at surface.
The 2015 exploration program will assess these prospects and rank them according to prospectivity
once the source of the copper-in-soil anomaly has been established. Those prospects that warrant
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drilling will be further assessed with an initial RC drilling program to determine the controls on the
mineralisation and potential deposit size and grade.
Figure 4 – Project Location Plan highlighting the large number of exploration prospects within the
Barbara JV tenure and surrounding Barbara.
Summary and Outlook
Syndicated’s Managing Director, Andrew Munckton, said the decision to expand the scope of the
Feasibility Study beyond the initial open pit operation marked an important turning point for the
Barbara Project.
“The presentation of an alternative development pathway by CopperChem in the form of an on-site
processing operation utilising modular, transportable equipment is a compelling opportunity for the
joint venture to consider, and one that we believe will ultimately deliver a range of benefits to the
project in a number of key areas.
“These include lower operating costs, a far more palatable arrangement in terms of transport and
treatment charges and the potential to reduce the upfront capital outlay. These improvements could
substantially improve the economic and financial returns from Barbara, particularly when combined
with the possibility of extensions to the resource inventory as a result of further exploration at a
number of prospects.”
“In particular, we have recently confirmed with our geophysical consultant the presence of an
exciting exploration target in the form of a strong down-hole conductor at the Barbara Mid Lode.
This target will be a priority for drilling in early 2015, along with further work to expand the resource
at Lillymay and test other satellite exploration targets.
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“In conclusion, we believe the decision to extend the Feasibility Study will ultimately deliver greater
benefits to our shareholders. We also believe that the decision not to rush into a short-life open pit
operation at Barbara in a volatile and challenging market environment will in hindsight be seen as a
wise one.”
ENDS
For further information:
Investors
Andrew Munckton – Syndicated Metals
Mobile: 0435 635 598
Media
Nicholas Read – Read Corporate
Mobile: 0419 929 046
Competent Person’s Statement
The information in this report that relates to Mineral Resources is based on information compiled by Mr Jim Whitelock and
Mr Michael Martin. Both Mr Whitelock and Mr Martin are Members of The Australasian Institute of Geoscientists (AIG) and
both has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the
activity which they are 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 (the “JORC Code”). Mr Whitelock is a full-
time employee of Exco Resources Limited a 100% owned subsidiary of CopperChem Limited and Mr Martin is a full time
employee of Syndicated Metals Limited. Both Mr Whitelock and Mr Martin consent to the inclusion in the report of the
Mineral Resources in the form and context in which they appear.
The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled
by Mr Andrew Munckton who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has
sufficient experience 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 (the “JORC Code”). Mr Munckton is a full-time
employee of Syndicated Metals Limited and consents to the inclusion in the report of the Exploration Targets and
Exploration Results in the form and context in which they appear.
Exploration Targets
This report comments on and discusses Syndicated Metals Limited’s exploration in terms of target size and type. The
information relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral
Resources or Ore Reserves. The potential quantity and quality of material discussed as Exploration Targets is conceptual in
nature since there has been insufficient work completed to define them as Mineral Resources or Ore Reserves. It is
uncertain if further exploration work will result in the determination of a Mineral Resource or Ore Reserve.
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Table 1: Drill-Hole Summary and Significant Intercepts
Hole ID Northing
(m)
Easting
(m)
Depth
(m)
Dip Azi From
(m)
To
(m)
Interval
(m)
Cu
(%)
Au
(ppm)
Ag
(ppm)
Co
(ppm)
S
(%)
GBRC001 7739696 381233 84 -60 262.9 30 34 4 0.51 0.04 0.23 946 1.8
63 64 1 1.46 0.15 1.1 71 1.6
72 73 1 0.55 0.04 0 91 0.91
77 78 1 0.56 0.04 0.3 60 1.17
GBRC002 7739717 381216 75 -59 27.9 No Significant assays
GBRC003 7739798 381131 96 -60 14.9 62 65 3 0.7 0.09 0.53 593 2.63
72 74 2 0.98 0.09 3.25 325 1.21
78 79 1 1.25 0.29 3.2 181 2.06
GBRC004 7740115 381005 6 -63 50.9 Abandoned
GBRC005 7740119 381002 72 -63 48.9 40 49 9 0.93 0.07 1.41 284 1.4
GBRC006 7740117 381001 108 -82 67.9 62 71 9 0.55 0.03 0.48 279 1.06
GZRC001 7742272 379434 94 -60 270.9 56 60 4 1.01 0 0.28 34.5 1.34
67 79 12 0.6 0.01 0.23 44.83 1.21
GZRC002 7742075 379349 130 -60 270.9 55 60 5 0.78 0.01 0.42 47.6 1.3
82 92 10 0.96 0.02 0.36 106 2.58
GZRC003 7742306 379423 84 -60 270.9 32 56 24 0.83 0.01 0.44 72.92 1.75
67 68 1 0.85 0.02 1.2 52 1.48
GZRC004 7742238 379412 84 -60 270 44 54 10 0.68 0 0.52 87 1.62
GZRC005 7742152 379359 84 -60 270 59 60 1 0.51 0.01 0.4 95 2.17
64 69 5 0.6 0.03 0.26 103 1.86
GZRC006 7742111 379348 126 -60 270 56 64 8 1.05 0.01 0.29 55 1.73
GZRC007 7742031 379334 114 -60 270 60 61 1 0.55 0.06 0.3 42 1.08
GZRC008 7741990 379337 126 -60 126 54 55 1 1.39 0.03 0.5 42 2.2
59 60 1 0.93 0.01 0.4 17 1.27
63 65 2 1.02 0.04 0.25 82 2.75
GZRC009 7742352 379427 118 -60 273 34 37 3 0.69 0 0.4 45.33 1.26
58 67 9 0.98 0.02 0.48 52.56 2.18
93 94 1 0.53 0.01 0.7 52 1.22
GZRC010 7742383 379431 124 -60 273 46 51 5 1.02 0.01 0.36 48.9 1.39
74 76 2 0.59 0 0.25 35.5 0.78
80 84 4 0.97 0 0.4 32 1.14
GZRC011 7741963 379293 58 -60 90 No Significant assays
GZRC012 7742001 379290 40 -60 90 27 28 1 0.6 0.01 0.3 139 2.08
GZRC013 7742042 379298 58 -60 90 No Significant assays
GZRC014 7742079 379299 60 -60 90 36 41 5 0.89 0 0.26 39 1.27
GZRC015 7742125 379302 46 -60 90 1 5 4 0.71 0.03 0.05 160.5 0.01
22 25 3 1.35 0.01 0.27 42 2.15
30 31 1 0.53 0 0.2 183 2.88
GZRC016 7742159 379316 40 -60 90 9 15 6 0.84 0 0.38 86.83 1.32
18 22 4 1.1 0.11 0.45 81 3.05
25 32 7 0.93 0.01 0.54 91.14 2.81
GZRC017 7742202 379371 76 -60 90 13 14 1 0.6 0.04 0 56 0.01
GZRC018 7742205 379351 60 -60 90 No Significant assays
GZRC019 7742204 379323 100 -60 90 No Significant assays
GZRC020 7742240 379387 46 -60 90 6 14 8 1.81 0.01 0.34 80.5 0.19
GZRC021 7742325 379400 40 -60 90 7 9 2 0.63 0.05 0.1 80 0.57
GZRC022 7742283 379385 52 -60 90 12 14 2 0.64 0.01 0.1 35 1.03
22 26 4 0.65 0.01 0.05 41.75 1.38
19 29 10 0.7 0 0.14 55.1 1.57
38 42 4 1.08 0 0.18 62.25 2.19
GZRC023 7742357 379386 58 -60 90 47 51 4 1.06 0 0.43 63 1.95
GZRC024 7742402 379395 46 -60 96.4 29 30 1 0.54 0.03 0 47 0.77
GZRC025 7742444 379368 100 -60 88.4 67 71 4 0.89 0 0.13 36.75 1.28
Note : The mineralised interval length of intercepts shown in the table are down-hole distances and are not corrected for
angle of dip. A cut-off grade of 0.5% Cu was used for calculating mineralised intervals. Downhole widths are reported. True
width is approximately 80-85% of Downhole width.
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Criteria JORC Code explanation
Exploration Results
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 Barbara, Lillymay, Greenzone and Greenback
deposits are located within EPM16112 and EPM19733.
The current registered holder for EPM16112 and
EPM19733 is Syndicated Metals Limited (SMD). These
tenements are currently in the process of being
transferred to the CopperChem/Syndicated Metals JV.
The area covered by the Barbara Resource and the
Greenzone deposit is subject to Mining Lease application
ML 90241 application submitted to DNRM on 7 May
2014.
EPM16112, EPM19733 and ML90241 are subject to the
Barbara Joint Venture Agreement with CopperChem
Limited (CopperChem) for the joint evaluation,
development, mining and processing of the Barbara
Resource. CopperChem Limited have a 50% interest in
EPM16112, a portion of EPM19733 and ML 90241.
The tenements sit within the Kalkadoon People #4 Native
Title claim.
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 tenements are in good standing and no known
impediments exist.
Exploration
done by other
parties
Acknowledgment and appraisal of exploration by other
parties.
No work by other parties is reported as part of this
announcement.
Geology
Deposit type, geological setting and style of mineralisation. The Barbara deposit is a shear hosted deposit within acid
volcanics within the Kalkadoon-Leichhardt belt of the Mt
Isa Inlier. The NW striking lode dips at approximately
60°to the south west, and varies from 2m to 30m true
thickness.
The Lillymay deposit is a shear hosted vein style deposit
within acid volcanics within the Kalkadoon-Leichhardt
belt of the Mt Isa Inlier.
The Greenzone prospect is a shear hosted vein style
deposit hosted within mafic rocks in the Greenzone shear
located on the contact of the Leichhardt Volcanics and
the Argylla Formation.
The Greenback prospect is located on the southern
continuation of the Barbara Shear Zone. The prospect is
hosted with the metabasalt and interbedded carbonate
rocks of the Magna Lynn formation.
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:
Refer to attached Table 1.
Easting and northing of the drill hole collar Refer to attached Table 1.
Elevation or RL (Reduced Level – elevation above sea level
in metres) of the drill hole collar
RL Derived from LIDAR survey results not included in
Table 1. Average RL at Greenback is 364mRL, Average RL
at Greenzone is 317mRL
Dip and azimuth of the hole Refer to attached Table 1.
Down hole length and interception depth Refer to attached Table 1.
Hole length. Refer to attached Table 1.
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.
Refer to attached Table 1.
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Data
aggregation
methods
In reporting Exploration Results, weighting averaging
techniques, maximum and/or minimum grade truncations
(eg cutting of high grades) and cut-off grades are usually
Material and should be stated.
Refer to attached Table 1.
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 high grades in the exploration results have not been
cut. Lower cut off is nominally 0.5%Cu with a maximum
of 3m sub 0.5% Cu internal dilution to make up the full
intersection.
The assumptions used for any reporting of metal equivalent
values should be clearly stated.
No metal equivalent values are used for reporting
exploration results.
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.
At Greenzone two directions of drilling have been
completed. Holes have been drilled at azimuths of 90 and
270 degrees and dips of -60. The ore zone dips at
approximately 85 degrees to the west. The intersection
angle between the ore zone and drilling are between 55
and 65 degrees to the mineralised zones. Therefore
reported downhole intersections for -60 degree holes can
be on average 30% to 50% greater than the true width.
At Greenback, majority of drillholes completed at -60
degrees to both the east and west. The ore zone dips at
70 degrees to the south west. The intersection angle
range from 40 to 60 degrees from the perpendicular.
Therefore reported downhole intersections for the holes
can be on average 30% to 60% greater than the true
width.
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’).
See above.
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.
Refer to Figures 1, 2, 3 and 4.
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.
All results are reported.
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.
Exploration drill results only reported at this time.
Further work
The nature and scale of planned further work (eg tests for
lateral extensions or depth extensions or large-scale step-
out drilling).
Planning of drillholes targeting extension to the
Greenzone and Greenback prospects is underway as part
of exploration review.
Diagrams clearly highlighting the areas of possible
extensions, including the main geological interpretations
and future drilling areas, provided this information is not
commercially sensitive.
Planning of drillholes targeting extension to the
Greenzone and Greenback prospects is underway as part
of the prospect review. Please refer to figure 4 for the
location of the Greenzone and Greenback prospects.
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Criteria JORC Code explanation
Sampling Techniques and Data
Sa
mp
lin
g t
ech
niq
ue
s
Nature and quality of sampling (e.g. 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.
Sampled 1m intervals using a rig mounted cyclone and
87.5-12.5 riffle splitter to collect a 3.5kg to 4kg sample.
All 1m samples are analysed using handheld XRF and
then all samples over 0.05% copper are sent to ALS
laboratories for Au and multi-element analysis. Reject
sample retained on site.
Include reference to measures taken to ensure sample
representivity and the appropriate calibration of any
measurement tools or systems used
Sampling was carried out under Syndicated Metals
protocols and QAQC procedures.
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
RC drilling was used to obtain a 1 m sample from a 3.5 to
4 kg sample which was pulverised by an LM2 to produce
two subsamples, for multielement analysis in Mt Isa and
gold analysis in Townsville.
Drilling
techniques
Drill type (eg core, reverse circulation, open-hole hammer,
rotary air blast, auger, Bangka, sonic, etc) and details (eg
core diameter, triple or standard tube, depth of diamond
tails, face-sampling bit or other type, whether core is
oriented and if so, by what method, etc).
Reverse Circulation Drilling has been undertaken using a
face sampling percussion hammer with 5 1/4" bits
Drill sample
recovery
Method of recording and assessing core and chip sample
recoveries and results assessed.
Reverse Circulation recoveries are monitored using visual
means, approximating bag weight to theoretical weight
and checking sample loss though outside return and
sampling equipment.
Measures taken to maximise sample recovery and ensure
representative nature of the samples.
Reverse Circulation holes are collared with a well-fitting
stuffing box, material to outside return minimized.
Drilling is undertaken using auxiliary compressors and
boosters to keep hole dry and lift the sample to the
sampling equipment. Cyclone and sampling equipment is
checked regularly and cleaned. Hole is flushed at end of
each sample and end of rod.
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.
Recovery is visually checked and sample loss of the fine
or coarse fraction is attempted to be minimized using
SMD RC drilling protocols.
Log
gin
g
Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support
appropriate Mineral Resource estimation, mining studies
and metallurgical studies.
Logging is carried out by a geologist, using SMD logging
system which has developed to accurately reflect the
geology of the area and mineralisation styles.
With very few geologists having worked on the
project, the level of consistency of logging remains high.
Whether logging is qualitative or quantitative in nature.
Core (or costean, channel, etc) photography.
Reverse Circulation logging is both qualitative and
quantitative in nature and captures downhole depth,
colour, lithology, texture, alteration, sulphide type,
sulphide percentage, structure. Core logging also
captures RQD, Recovery, and orientated structures.
Magnetic susceptibility also collected.
The total length and percentage of the relevant
intersections logged.
All drillholes are logged in full.
Sub-sampling
techniques and
sample
preparation
If core, whether cut or sawn and whether quarter, half or
all core taken.
No core holes drilled at Greenzone or Greenback
If non-core, whether riffled, tube sampled, rotary split, etc
and whether sampled wet or dry.
RC samples are riffle split, when dry. If sample is wet, the
sample is dried and split or a scoop is used.
For all sample types, the nature, quality and
appropriateness of the sample preparation technique.
The samples are prepared using an accredited laboratory
and follow industry best standard including, oven drying,
coarse crushing of core, followed by pulverization of the
entire sample in a LM2 to a grind size of 85% passing 75
micron.
Quality control procedures adopted for all sub-sampling
stages to maximise representivity of samples.
Field QC procedures involve the use of certified reference
material as assay standards, along with blanks and
duplicates.
R:\ADM_Administration\ASX\ASX Releases & Confirmations\2014 Announcements
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.
Reverse circulation field duplicates are taken 2 in 100
samples.
Whether sample sizes are appropriate to the grain size of
the material being sampled.
The sample sizes are believed to be appropriate to
correctly represent the style, thickness of copper, gold
mineralisation in the Mt Isa Inlier.
Quality of assay
data and
laboratory tests
The nature, quality and appropriateness of the assaying
and laboratory procedures used and whether the technique
is considered partial or total.
Analysis of Cu, Fe and S was completed at Mt Isa using
the ICP41 scheme, while Au was analysed by ALS in
Townsville using fire assay AA25.
For geophysical tools, spectrometers, handheld XRF
instruments, etc, the parameters used in determining the
analysis including instrument make and model, reading
times, calibrations factors applied and their derivation, etc.
No geophysical tools were used to determine any
element concentrations used in this resource estimate.
A handheld XRF instrument was used to determine
samples to be sent off for wet chemical analysis.
Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory checks)
and whether acceptable levels of accuracy (ie lack of bias)
and precision have been established.
ALS laboratories QAQC includes insertion of certified
standards, blanks and check samples and fineness checks
to ensure grind size of 85% passing 75 micron as part of
their own internal procedures.
Syndicated Metals inserts certified standards and
duplicates into the sample sequence. Field duplicates and
standard control samples have been used at a frequency
of 2 field duplicates and 6 standards per 100 samples.
Verification of
sampling and
assaying
The verification of significant intersections by either
independent or alternative company personnel.
The ore intersections at Greenzone have been checked
by Runge during their 2011 resource estimation of
Greenzone.
The use of twinned holes. Twinned holes have not yet been used.
Documentation of primary data, data entry procedures,
data verification, data storage (physical and electronic)
protocols.
Geological, Geotechnical and sampling information is
initially collected through an electronic logging system.
Discuss any adjustment to assay data. No adjustments or calibrations were made to any assay
data used in this estimate.
Location of data
points
Accuracy and quality of surveys used to locate drill holes
(collar and down-hole surveys), trenches, mine workings
and other locations used in Mineral Resource estimation.
All SMD drill holes have been accurately surveyed by
contract surveyors using a DGPS instrument. For the
majority of holes, downhole surveys have been
conducted at regular intervals using single shot cameras.
Specification of the grid system used. GDA94 MGA Zone 54 datum North.
Quality and adequacy of topographic control. A LIDAR topographic survey has been undertaken and is
nominally accurate to +/- 0.3m on flat terrain.
Data spacing
and distribution
Data spacing for reporting of Exploration Results. The Drill spacing was considered adequate to establish
both geological and grade continuity.
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.
The Drill spacing was considered adequate to establish
both geological and grade continuity.
Whether sample compositing has been applied. All samples were collected as 1m samples. No
compositing was necessary.
Orientation of
data in relation
to geological
structure
Whether the orientation of sampling achieves unbiased
sampling of possible structures and the extent to which this
is known, considering the deposit type.
The drill orientation has not been optimal. Two directions
of drilling completed. No section, with ore grade
intercepts, has more than one hole in the same direction.
If the relationship between the drilling orientation and the
orientation of key mineralised structures is considered to
have introduced a sampling bias, this should be assessed
and reported if material.
No bias is currently known.
Sample security
The measures taken to ensure sample security. Samples are stored on site and transported to ALS
laboratories in Mt Isa by Syndicated Metals for
Preparation. Sample numbers used for drilling.
Audits or
reviews
The results of any audits or reviews of sampling techniques
and data.
No site visit undertaken.