SUMMARY
Pooraka ELs 6413 and 7564 plus new EL 8424:
Drilling of the best two TDEM targets, in ELs 6413 and 7564, was undertaken in late March 2017. Two RC percussion holes totaling 400m were completed and 290 samples submitted to ALS Orange for Au, Ag, Cu, Pb, Zn, S and As analysis. Results are due in early May 2017.
EL 6413 is due for renewal on 16th May, 2017 with no area reduction.
Koonenberry ELs 6400 & 6424
Deep drilling of gravity targets on EL 6424 is on hold pending finalization of an economic evaluation.
Application was made to renew EL 6400, with a 65% area reduction to 17 units, for 2 years from 31st March, 2017.
Figure 1 - List of Licences and their Locations in New South Wales, Australia
ACTIVITIES IN THE KOONENBERRY BELT Copper-Zinc-(Silver) and Gold ExplorationELs 6400 & 6424 - NSW (100% interest)
The Group holds a 100% interest in 2 ELs covering a total area of 128 km2 in the highly prospective and under-explored Koonenberry Belt in Western NSW, near Broken Hill.
Figure 2 - Locations of Koonenberry Exploration Licences Note: Line of mineralization - white; Faults- black
EL 6400 is of principal interest because it encompasses the Grasmere-Peveril Cu-Zn-(Ag) deposits. These have previously been assessed as having significant Indicated and Inferred JORC Code 2004 compliant Resources of 5.75mt @ 1.03% Cu, 0.35% Zn, 2.3g/t Ag and 0.05g/t Au (Inferred: 2.73 mt grading 0.9% Cu, 0.4% Zn, .04 g/t Au and 2.05 gt Ag. Indicated: 3.02 mt grading 1.15% copper, 0.3% Zn, 0.06 g/t Au and 2.53 g/t Ag). Information relating to the mineral resource was prepared and first reported in accordance with the JORC Code 2004 in 2006. 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 reported in 2006. Following the completion of 9 RC percussion holes in early 2015 (seeking WNW extensions to the Grasmere-Peveril line of lode), drilling data suggested that future work, to locate possible WNW extensions to the Grasmere-Peveril line of lode should involve drilling some 10 to 20 close spaced RAB or RC percussion holes of 80m to 100m depth along two SW running lines near Wilandra. Plans for that drilling were put on hold, and a data review and preliminary economic evaluation undertaken looking at
the potential for in situ leaching. Application was also made to renew EL 6400 with 65% area reduction for a further 2 years from 31st March, 2017. The Group is studying the possibility of applying in situ Cu (acid) or bacterial leaching technology which could possibly render the resource economic.
EL 6424 covers the Wertago copper diggings and Nutherungie silver field, where a detailed gravity survey in 2014 outlined several gravity lows (possible porphyry intrusions) considered by the Group to be worthy of deep drilling (see Figure 3).
Figure 3 - Proposed Drill Holes in EL 6424
Note: Anomalous (gravity low) target areas shown in purple
The silver field is suspected to be the epithermal zone above a concealed porphyry (Cu-Ag-Au) intrusive system, which would express as gravity lows. Regional gravity data revealed a broad gravity high over the silver field, but the detailed survey revealed several gravity lows, with interpreted intrusion tops (crowns) lying at relatively shallow depths (i.e. 250m -270m, and 320m) in the central-western part of the EL. The original plan was to test those with 2 steep drill holes (Holes 1 & 2, in Figure 3) of 400m and 450m length, however, and following re-consideration a third gravity low, in the Silverfield fault zone, a better proposal would involve a test of target (Hole 4) plus the larger of the two above mentioned targets (Hole 2) with 2 steeply inclined, RC pre-collared diamond holes, each of about 450m length. The silver field deposits are also of interest, since they were abandoned at shallow depths shortly after the nearby White Cliffs opal discovery. For example, one shallow digging, proximal to Wertago was abandoned in silver-rich galena (PbS) veins. That digging represents a possible stand-alone RC-drilling target (Hole 3 in Figure 3). Comparison with mineralization at Silverton silver field, near Broken Hill, suggests that this mineralization may persist to depth.
The EL is proximal to a national park, and also contains indigenous artifacts and other evidence of past indigenous habitation. A recent data review and preliminary economic evaluation by the Group has highlighted the remoteness and environmental sensitivity of the area. EL 6424 is due for renewal on 25th May, 2017 and the Group is assessing the desirability of renewal.
ACTIVITIES NEAR COBAR Gold, Silver and Base Metal ExplorationELs 6413, 7564 and 8424 - NSW (100% interest)
Figure 4 - Pooraka ELs showing Drill Holes 1 and 2
Figure 5 - Geology and Prospect Locations - Pooraka Project
Drilling of the best two TDEM targets (conductors), in ELs 6413 and 7564, was undertaken in late March 2017. Two RC percussion holes totaling 400m were completed on 29th March, 2017 and 290 samples have been submitted for Au, Ag, Cu, Pb, Zn, S and As analysis. The results are due in early May. The targets were as follows:
Drill Hole 1, Langbein - Langbein West. Comprising a broad formational conductive zone identified by TDEM which includes a small discreet conductor (open to the east) proximal to where the Group's 2009 RC-percussion drilling encountered low grade mineralization in bedrock. This anomaly lies along strike from the Mt Boppy gold-sulphide mine (NSW's largest operational gold mine in 1908), located 6 km to the
south). The drill Hole 1 was designed to perpendicularly intersect geological dip with a 60o plunge to the
east to a total length of 150m.
Drill Hole 2, Mc Guiness This was located near the surface expression of the Gilmore Suture, where TDEM identified a large, strong, discreet, north running 1200m X 800m conductor. Historic (1980s and 1990s) air drilling and shallow pitting in the area detected patches of low grade gold mineralization. For example Epoch Minerals in the 1990s drilled 17 RC and 46 air core holes outlining an inferred resource of 18,000t @ 2 g/t gold in 3 pods labelled A to C to a depth of 12m. This drill hole will establish whether the conductivity is due to the presence, at depth, of sulphide mineralization associated with gold. Drill
Hole 2 was designed to perpendicularly intersect geological dip with a 60o plunge to the west to a length
of approximately 250m.
Hole 1 (150m) was drilled and sampled on March 18th and 19th. The RC-percussion rig was then moved and set up to drill Hole 2 (250m) on March 20th & 21st, but heavy rains intervened preventing access. When tracks dried out Hole 2 was quickly drilled on March 28th, and sampled on March 28th and 29th.
Sampling of both holes was at 1m intervals-generating 400 X 25Kg PVC bags of drill returns plus 400 X 1.5-2 Kg bags of split samples. The latter were dispatched by road freight to ALS in Orange on March 29th. Those samples are being analyzed for known key elements- Au, Ag, Cu, Pb, Zn, As and S, and results are expected in early May. Samples selected for analysis, 290 of the 400 collected- covered the
down-hole extents of the two TDEM target zones which also closely matched logged zones of interest in both holes. Samples selected for analysis were 1 to 110 in Hole 1 and 1 to 180 in Hole 2.
In both holes leached and weathered rocks were intersected from about 2 m depth to end of holes. Shales and acid to intermediate volcanic rocks were noted to be less weathered, with RC returns containing fines plus recognizable chips, however what were considered to be weathered felsic volcanic rocks consisted almost entirely of fines-mainly clays of varying colors and hues-light to dark brown, khaki, red-brown, and purple-brown. No sulphide minerals or gold specks were noted in returns-as might be expected in such intensely weathered environments. Nevertheless signs of potential mineralization--quartz veins, very dark clays, black flecks, iron-staining, and alteration were noted in many returns when logging. In summary the following lithologies were noted in returns from the 2 holes (depths down hole)
Hole 1 intersected clay-rich brown/yellow/khaki weathered felsic volcanics to 41m, weathered andesitic volcanics to 50m, less weathered andesitic volcanics to 97m, a chert-shale "transition zone" to 107m, then monotonous dark grey shales to 150m end of hole.
Hole 2 intersected light brown--grey shales to 29m, clay rich brown/yellow/khaki weathered felsic volcanics to 104m, medium grained rhyodacitic volcanics to 143m, a weathered transition zone of similar but altered rhyodacitic volcanics to 152m, clay-rich felsic volcanics as before (with interesting dark bands) to 170m, an altered rhyodacitic transition zone to 180m, rhyodacitic volcanics (as above) to 232m, then monotonous dark fine grained acid (rhyolitic) volcanics to 250m end of hole.
LICENCES STATUSPursuant to ASX Listing Rule 5.4.3 the Company reports as follows in relation to minerals tenements held at the end of the March 2017 quarter and acquired or disposed of during that quarter and their locations.
Tenement | Project Name | Location | Beneficial Interest | Expiry |
EL 6400 | Koonenberry | NSW | 100% | 31 March 2017 (Renewal applied for) |
EL 6424 | Koonenberry | NSW | 100% | 25 May 2017 |
EL 6413 | Pooraka 1 | NSW | 100% | 16 May 2017 |
EL 7564 | Pooraka 2 | NSW | 100% | 7 June 2017 |
EL 8424 | Pooraka 3 | NSW | 100% | 17 February 2019 |
There were no other tenements acquired or disposed of or change in beneficial interests under farm-in or farm-out agreements during the quarter.
(The information in the report above that relates to Exploration Results is based on information compiled by Dr Pieter Moeskops, a member of The Australasian Institute of Mining and Metallurgy.
Dr Moeskops has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2004 and 2012 Editions of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Moeskops consents to the inclusion in this report of matters based on his information in the form and context in which it appears.)
John Wang Managing Director
27 April 2017
Appendix 5B+Rule 5.5
Mining exploration entity and oil and gas exploration entity quarterly reportIntroduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
AUSMON RESOURCES LIMITED
ABN Quarter ended ("current quarter")
88 134 358 964 31 MARCH 2017
Consolidated statement of cash flows Currentquarter$A'000
-
Cash flows from operating activities
Receipts from customers
Payments for
Year to date (9 months)
$A'000
exploration & evaluation
development
production
(12) (29)
staff costs (17) (181)
administration and corporate costs (35) (151)
Dividends received (see note 3)
Interest received 2 4
Interest and other costs of finance paid
Income taxes paid
Research and development refunds
Other (GST) 23 (2)
1.9 Net cash from / (used in) operating activities
(39) (359)
-
Cash flows from investing activities
Payments to acquire:
property, plant and equipment
tenements (see item 10)
investments
other non-current assets
Consolidated statement of cash flows Currentquarter$A'000
Proceeds from the disposal of:
property, plant and equipment
tenements (see item 10)
investments
other non-current assets
Cash flows from loans to other entities
Dividends received (see note 3)
Year to date (9 months)
$A'000
Other (Security deposit refund) 10 10
2.6 Net cash from / (used in) investing activities
10 10
-
Cash flows from financing activities
Proceeds from issues of shares
Proceeds from issue of convertible notes
Proceeds from exercise of share options
Transaction costs related to issues of shares, convertible notes or options
Proceeds from borrowings
Repayment of borrowings
Transaction costs related to loans and borrowings
Dividends paid
Other (provide details if material)
3.10 Net cash from / (used in) financing activities
- 537
- (88)
- 449
-
Net increase / (decrease) in cash and cash equivalents for the period
Cash and cash equivalents at beginning of period
Net cash from / (used in) operating activities (item 1.9 above)
Net cash from / (used in) investing activities (item 2.6 above)
Net cash from / (used in) financing activities (item 3.10 above)
Effect of movement in exchange rates on cash held
4.6 Cash and cash equivalents at end of period
677 548
(39) (359)
10 10
- 449
648 648
-
Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
Current quarter
$A'000
Previous quarter
$A'000
Bank balances 198 238
Call deposits 450 439
Bank overdrafts
Other (provide details)
5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)
648 677
-
Payments to directors of the entity and their associates Currentquarter
$A'000
Aggregate amount of payments to these parties included in item 1.2 10
Aggregate amount of cash flow from loans to these parties included in item 2.3
Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
Office rent contribution to a related entity of Managing Director John Wang.
Director superannuation.
-
Payments to related entities of the entity and their associates
Aggregate amount of payments to these parties included in item 1.2
Aggregate amount of cash flow from loans to these parties included in item 2.3
Current quarter
$A'000
Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
Ausmon Resources Ltd. published this content on 27 April 2017 and is solely responsible for the information contained herein.
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