ABN: 96 110 336 733
Exploration Office Unit 2 / 81 Harrison Road Dudley Park SA 5008 firstname.lastname@example.org
Tel: +61 8 8245 4900
Fax: +61 8 8245 4999
For Immediate Release
19 October 2015
2015 Annual Report, Notice of Annual General Meeting and Proxy Form
Attached are electronic copies of the Monax Mining Limited 2015 Annual Report, Notice of Annual General Meeting and Proxy Form which have been mailed to shareholders.
Virginia Suttell Company Secretary
2015 Annual Report
Annual General Meeting
The 2015 Annual General Meeting will be held at DMAW Lawyers, Level 6, 80 King William Street Adelaide, South Australia
On 17th November 2015 commencing at 11:00am.
A formal notice is mailed to shareholders with the distribution of this report.
Corporate Governance Statement
Under ASX Listing Rule 4.10.3 the Company's Corporate Governance Statement can be located at the URL on the Company's website: http://www.monaxmining.com.au/site/corporate/governance.html
ABN 96 110 336 733
Chairman's Report 2 Review of Operations 4
Project Highlights 5
Punt Hill 6
Western Gawler Craton 10
Phar Lap 11
Monax - Antofagasta Strategic Alliance
and Designated Projects 14
Other Projects 16 2015 Financial Report 18
Directors' Report 19
Auditor's Independence Declaration 31
Consolidated Statement of Profit or Loss
and Other Comprehensive Income 32 Consolidated Statement of
Financial Position 33
Consolidated Statement of
Changes in Equity 34
Consolidated Statement of Cash Flows 35
Notes to the Financial Statements 36
Directors' Declaration 64
Independent Auditor's Report 65 Shareholder Information 68 Tenement Status 70 Corporate Directory 71
Dear Fellow Shareholders
It gives me great pleasure to present to you the eleventh annual report for your Company for the 2014 - 2015 financial year.
Monax has continued to focus on exploration with four drilling programs either completed or commenced during the year, which for a junior exploration company is significant in the current capital constrained market conditions.
The Company is currently seeking a project and has been reviewing numerous opportunities with a view to finding a suitable project to take the Company forward.
During the 2014 - 2015 financial year, Monax completed drilling programs on the Punt Hill, Parndana and Margaret Dam Projects together with the Millers Creek Designated Project. Farm-In partner Western Areas Limited commenced drilling on the Western Gawler Craton Project in early July 2015.
Monax completed two drill holes at Punt Hill in late 2014 with further encouraging copper results reported from the Groundhog prospect. Joint Venture partner Antofagasta decided to withdraw from the Punt Hill Project in May 2015, returning the project back to Monax 100%. Monax secured up to $75,000 government funding for further drilling at Punt Hill and Monax remains committed to further drilling at
the Groundhog prospect, dependent upon securing further capital.
Two holes were completed on the Parndana Project targeting lead-zinc. The holes did not intersect significant mineralisation, but follow-up geophysical and soil sampling programs show the area is still prospective with a coincident lead-zinc soil anomaly and resistivity anomaly located between the two completed holes.
Drilling on the Margaret Dam Project did not intercept an interpreted kimberlite, however the hole was a technical success with a magnetite-bearing mafic intrusive intersected at the interpreted depth from the geophysical reviews.
A single drill hole was completed at the Oliffes Dam target on the Millers Creek Designated Project. This project was funded by Antofagasta and was the result of project generation work undertaken during the Strategic Alliance with Antofagasta.
The hole intersected a mafic intrusive at approximately 711m downhole and a review of the petrophysical data shows the rock can adequately explain the geophysical anomaly.
The Strategic Alliance with Antofagasta, the purpose of which was project generation in South Australia, was concluded at the end of the third year with many potential copper projects reviewed. Two Designated Projects were outlined during the Strategic Alliance, the Millers Creek and Musgrave Designated Projects. Antofagasta withdrew from both Designated Projects during the year.
Robert M Kennedy
The relationship with Antofagasta over the last four years has been of great importance for Monax and the Company has benefited significantly from the opportunities presented through the association with a major mining company.
Reviewing numerous projects within South Australia and compilation of geophysical datasets has provided Monax with future opportunities. Monax currently has two active joint venture projects fully funded by its partners.
Western Australian nickel producer Western Areas Limited is sole funding exploration on the Western Gawler Craton Project. Since signing the Farm-In Agreement in September 2014, Western Areas have completed a high-resolution aeromagnetic survey over the project area and commenced a major drilling program in early July 2015.
Monax signed a Farm-In and Exploration Joint Venture Agreement with Iluka Resources Limited for the Phar Lap iron-oxide copper-gold (IOCG) Project on EL 5123. Under the terms of the Agreement, Iluka can earn 80% interest in EL 5123
by spending $2 million over 4 years. Iluka is planning detailed gravity over three areas with drilling to follow if the gravity surveys are positive.
Exploration on the Western Gawler Craton and Phar Lap projects is fully funded by its partners, providing Monax with further opportunities to make a significant discovery which will benefit shareholders.
I take this opportunity to thank the small but dedicated staff of Monax, as well as my fellow Directors, who provided commitment to the Company.
Finally, I'd like to thank all of our shareholders for your continuing support. Your Board will continue to work hard to create further shareholder value in the upcoming year.
During the 2015 financial year, Monax Mining Limited ('Monax') was active with four
drilling programs completed and a further drilling program commenced in early July 2015.
Monax maintained its focus on exploration for copper-gold with funding provided by with a wholly-owned subsidiary of Chilean copper producer, Antofagasta plc ('Antofagasta') on the Punt Hill Project and Millers Creek Designated Project.
Monax also undertook drilling programs on the Parndana
Project and Margaret Dam kimberlite target.
In October 2014, Monax signed a Farm-In Agreement with Western Areas Limited ('Western Areas') for the
Western Gawler Craton Project. Western Areas completed a high-resolution aeromagnetic survey in January 2015 and commenced a major drilling program in early July 2015.
Drilling at Punt Hill provided further encouraging copper results with 96m @ 0.47% Cu, 0.12g/t Au and 5.3g/t Ag, including 26m @ 1.0% Cu, 0.23g/t Au & 8.5g/t Ag including 1m
@ 7.3% Cu and 1.6g/t Au reported from hole PHDD1402 at the Groundhog prospect (refer to ASX Release 4 December 2014 for drill hole details including Table 1).
At Punt Hill, Antofagasta reached its 51% earn in, but after expending a further ~$700,000 decided not to continue to sole fund exploration, providing Monax with an opportunity to secure 100% ownership of the project if Antofagasta made such a decision.
The Strategic Alliance with Antofagasta for project generation in South Australia was concluded at the end of the third
year with many potential copper projects reviewed. Two Designated Projects were outlined during the Strategic Alliance.
The Millers Creek Designated Project located within the Woomera Prohibited Area (WPA) comprised three Monax Alliance tenements together with four Maximus Resources Limited (ASX: MXR) tenements.
Monax undertook several ground gravity programs and a detailed heil-borne magnetic survey and defined a target at Oliffes Dam. Monax drilled the Oliffes Dam target in April 2015 and intersected a mafic intrusive which potentially explains the geophysical target. Based on the drilling, the Millers Creek Designated Project was terminated.
The Musgrave Designated Project comprised four tenement applications located within the Musgrave Province. No work was undertaken prior to Antofagasta deciding to withdraw from the project.
Two diamond drill holes were completed at the Vinco prospect on the Parndana Project in late 2014, targeting a prominent gravity and induced polarisation anomaly.
Subsequent refinement of the geophysical data and a detailed soil sampling program showed the main anomaly is located between the two drill holes and this anomaly is untested by drilling.
Monax commenced drilling at the Margaret Dam kimberlite target at the end of the financial year with the hole completed in early July 2015.
In May 2015, Monax announced the signing of a Farm- In and Exploration Joint Venture Agreement with Iluka
Resources Limited ('Iluka') for Monax's Phar Lap iron-oxide copper-gold (IOCG) Project on EL 5123. Under the terms
of the Agreement, Iluka can earn 80% interest in EL 5123 by
spending $2 million over 4 years.
Punt Hill Copper-Gold Project
Monax completed two drill holes
Drill hole PHDD1402 reported 96m @ 0.47% Cu, 0.12g/t Au and 5.3g/t Ag (including 26m @ 1.0% Cu, 0.23g/t Au & 8.5g/t Ag including 1m @ 7.3% Cu and 1.6g/t Au
Monax secured up to $75,000 collaborative drill funding from South Australian Government as part of the Plan for Accelerating Exploration (PACE) for further drilling at Punt Hill
Continued research by the SA Geological Survey provided more insights on the geology and mineralisation at Punt Hill
Potential kimberlite discovered at Margaret Dam project, located in northern South Australia
Detailed ground magnetic and gravity surveys completed
Monax secured up to $70,000 collaborative drill funding
from PACE initiative for drilling Margaret Dam target
Drilling completed July 2015
Western Gawler Craton Project
Monax signed a Farm-In Agreement with Western Areas for
Western Gawler Craton Project
Western Areas completed high-resolution aeromagnetic
survey over project area
Aboriginal heritage clearance undertaken and major drilling program commenced in early July 2015 with up to 85 holes planned
Farm-In partners, Western Areas, are eligible for up to
$100,000 under the PACE initiative for drilling on Western Gawler Craton Project
Phar Lap Copper-Gold Project
Monax completed detailed gravity survey over two iron- oxide copper gold (IOCG) targets at Phar Lap
Farm-In and Exploration Joint Venture Agreement
signed with Iluka for the Phar Lap Project
Under the terms of the Agreement, Iluka to earn 80%
interest in EL 5123 by spending $2 million over 4 years
Parndana Lead-Zinc Project
Monax completed two drill holes at the Vinco prospect
Soil sampling outlined coherent lead-zinc anomaly coincident with significant induced polarisation anomaly
Millers Creek Designated Project
Monax Alliance completed one drill hole at Oliffes Dam
Melton Copper-Gold Project (Monax 25% interest)
Airborne electromagnetic (AEM) survey completed over
the Melton Central target
Disclaimer: The information in the Annual Report that relates to Exploration results, Mineral Resources, Ore Reserves or targets is based on information compiled by Mr G M Ferris, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Ferris consents to the inclusion of the information in this report in the form and context in which it appears.
Punt Hill Project
The Punt Hill Project is located within the highly prospective Olympic Iron Oxide
copper-gold (IOCG) Province on the eastern margin of the Gawler Craton (Figure 1). This province is host to the world class Olympic Dam Mine, as well the Prominent Hill Mine and Carrapateena and Hillside deposits.
In late 2014, Monax completed drill hole PHDD1402 at the Groundhog prospect. The drill hole was collared approximately 455m to the north of drill hole GHDD2 and was drilled at
60o to the SSW, and was designed as a step-out from the previous Groundhog drill holes. The hole intersected Gawler Range Volcanics at 782m (downhole depth). The prospective Wandearah Metasediments were intersected at 903.38m and continued to 997.5m (downhole depth).
Overall, the metasedimentary sequence assayed 96m @ 0.47% copper, 0.12g/t Au, 5.3g/t Ag and 0.37% Zn (903m - 999m - downhole length) (see Figure 1). Within this sequence were several higher grade intercepts with the best zone reporting 26m
@ 1.0% Cu, 0.23g/t Au, 8.5g/t Ag and 0.48% Zn (969m - 995m - downhole length).
Towards the base of the sequence, a 5m zone reported 3.0% Cu, 0.7g/t Au, 14.6g/t Ag and 1.3% Zn (see Table below) which included 1m @ 7.3% Cu, 1.6 g/t Au, 36 g/t Ag and 4.1% Zn (downhole length).
In August 2010, Monax signed a Farm-In Agreement ('Agreement') with Antofagasta for the Punt Hill Project. Under the terms of the initial agreement and subsequent amendments, Antofagasta earned a 51% equity position in
the project by expending US$4 million. Antofagasta funded a further approximately US$700,000 before electing not to sole fund additional exploration on the project.
In December 2013, an amendment to the Agreement provided Monax with an opportunity to secure 100% ownership of the project if Antofagasta made such a decision. Under the terms of the amended Agreement, Monax can elect to issue Antofagasta 9.99% of the company's shares and Antofagasta will transfer back its 51% of the project to Monax.
Over the past 24 months, the Department of State Development
(DSD), in conjunction with Monax, has been undertaking
a comprehensive mineral system study at Punt Hill, with particular emphasis on the Groundhog drill holes. New detailed geochemical, petrophysical and hyperspectral (HyLogger)
data has been used to vector to zones of possible higher-grade
Monax is eligible for up to $75,000 in funding under the PACE initiative for drilling on the Punt Hill Project. Monax has developed a structurally controlled model for its Groundhog prospect at Punt Hill, where sediments are juxtaposed against granite, with the structure acting as the primary pathway for hot magmatic mineralising fluids ascending from deeper Hiltaba Suite granitic intrusions.
Monax is planning a further drill hole at Groundhog, targeting an interpreted major structure located between drill holes GHDD2 and NNDD1.
Punt Hill Project
Figure 1: PHDD1402 drill hole trace showing simplified geology showing copper and gold mineralisation intervals (drill hole intercept is a down hole length - true width unknown).
(This information was prepared and first disclosed under the JORC Code 2004. It has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Punt Hill drill hole intercept is a down hole length - true width unknown).
(100% MONAX )
Monax completed detailed ground magnetic and gravity surveys over the circular
magnetic features on EL 5347, assisting with modelling the dimensions and depth of the potential kimberlite target. The ground magnetic data revealed a discrete elongate
magnetic dipole with a SW-NE trend and a smaller magnetic anomaly located to the SW (Figure 2). The gravity data shows a subtle gravity response associated with the magnetic feature.
A review of the available aeromagnetic data showed two circular features located within the southern part of the licence area,
which Monax considers to be consistent with that of a kimberlite intrusion (Figure 3).
Geophysical modelling outlined a magnetic body at a depth of approximately 80m. The dimensions of an elliptical body approximately 250m long by 45m wide, with a tapering root to 400m depth was outlined. The main feature (shown in blue on Figure 4) strikes 230o/50o (SW-NE) with a near vertical dip (see Figure 4). (Magnetic susceptibility = 0.015 SI units).
A small secondary anomaly (red) is located in the SW of the survey area at a depth of 75m and is characterised by elliptical body geometry and is approximately 100m long by 30m wide. Strike direction is 300o/120o (WNW-ESE) - (see Figure 4). This information was prepared and first disclosed under JORC 2012 Code and has not materially changed since it was last reported.
Monax is eligible for up to $70,000 in PACE funding on this project and one drill hole was completed in July 2015. Drill hole MDD1501 was completed to a depth of 108.17m with a mafic intrusive intersected at approximately 76m below the surface.
Figure 2: Reduced to Pole magnetic image with 10 nanoteslas contours (derived from ground magnetic data).
Kimberlite Project (continued)
Figure 3: Reduced to Pole image derived from SAEI C4 airborne magnetic survey. (NB small magnetic anomalies outlined in yellow circle in the SW corner).
Figure 4: Magnetic model showing size and calculated depth to potential main kimberlite body (shown in blue on the left side image).