RED HAWK MINING LIMITED For the quarter ending 30 September 2015
HIGHLIGHTS
PIOP Option and Sale Agreement with Todd Corporation rejected by shareholders at general meeting on 24 September 2015
Ongoing discussions with Todd Corporation prior to the expiry of the Alliance Agreement on 31 December 2015
Follow-up exploration completed at the Canegrass Project in WA
WA
Pilbara Iron Ore Project
Tom Price
CORPORATE
Magnet
Canegrass Gold ProjectTodd Transaction
On 11 May 2015, Flinders Mines announced it had signed an Option and Sale Agreement with a
subsidiary of New Zealand's Todd Corporation for the 100% sale of Flinders' Pilbara Iron Ore Project (PIOP) (refer to ASX announcement dated 11/05/2015). This proposed transaction was rejected by shareholders at a general meeting held in Adelaide on 24 September 2015.
Future Outlook
The Company continues to hold meetings with Todd Corporation to discuss adding further value to the project within the framework of the existing Alliance Agreement. If no beneficial outcome is agreed by
31 December 2015, then Flinders will commence discussions with other parties in respect to developing the project.
Flinders also plans to reinvigorate its discussions with Chinese steel mills in respect to finalising offtake agreements and potential project investment.
Corporate Costs
The Company has completed a number of cost reduction measures during the quarter including a significant reduction in staff numbers and other corporate costs. The Directors, including the
Managing Director, have agreed to reduce their fees and salary by 20% from 1 November 2015.
PROJECTS
Pilbara Iron Ore Project (PIOP) - WA
During the quarter, the Company received approval from the Environment Minister in Western Australia for the expanded project. Further assessments and approvals are progressing with the State Minister for Aboriginal Affairs and the Federal Government.
EXPLORATION AND EVALUATION ACTIVITIES
WESTERN AUSTRALIA
Pilbara Iron Ore Project
There were no exploration and evaluation activities carried out on the Company's Pilbara Iron Ore Project tenements during the September 2015 quarter.
Canegrass Gold Project
During the quarter a small follow up air-core (AC)
118°
-28°
Mt Magnet
Project Area Prospect Homestead
0 10 km
Challa HS
Mt Magnet -
118°30'
Sandstone Rd
Honeypot
E58/236
E58/282 E58/232
drilling program was undertaken at the Honeypot gold prospect (Figure 1). A total of 31 holes for 428m were drilled (Figure 2 and Table 1).
The drilling was designed to cover the intersection of a major shear zone and a secondary fault to the
north of a significant intersection of 8m @ 2.03 g/t Au from 12m in hole HAC022 drilled earlier this year. Hole HAC022 is located at the northern end of a trend of
Figure 1 : Canegrass Gold Project is located approximately 60km SE from Mt Magnet, Western Australia.
Target
Zone
Felsic
anomalous holes that intersected a deformed and foliated mafic schist as well as late stage undeformed granitic dykes and quartz veining.
Dyke
All assays from the current round of drilling have
Zone
HAC0226,868,000 mN
now been received and there were no significant intersections.
SOUTH AUSTRALIA
There were no exploration and evaluation activities carried out on the Company's South Australian tenements during the September 2015 quarter.
Ian Gordon Managing Director 30 October 2015
Fault
E58/236 E58/282
0 200 m
8m @ 2.01 g/t AuAnomalous Zones
6,867,000 mN
AC drillhole - Aug 2015 AC drillhole - Mar 2015
639,000 mE
640,000 mE
Shear
Figure 2 : Honeypot prospect AC drillholes over ground TMI (magnetic) image.
Contact us Ian Gordon
Managing Director
Ph: (08) 8132 7950
Email: info@flindersmines.com
Investor Relations Duncan Gordon
Executive Director - Adelaide Equity Partners
Ph: (08) 8232 8800 or 0404 006 444
Email: dgordon@adelaideequity.com.au
Head Office
Level 1, 135 Fullarton Road Rose Park
South Australia 5067
PO Box 4031
Norwood South South Australia 5067
Ph: (08) 8132 7950
Fax: (08) 8132 7999
Email: info@flindersmines.com
www.flindersmines.com
Qualifying Statements
Forward-looking statements
This release may include forward-looking statements. These forward- looking statements are based on management's expectations and beliefs concerning future events as of the time of the release of this document. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, some of which are outside the control of Flinders Mines Limited, that could cause actual results to differ materially from such statements. Flinders Mines Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.
Competent Persons
The information in this report that relates to Exploration Targets, Exploration Results, or Mineral Resources is based on information compiled by Dr Graeme McDonald who is a member of the Australian Institute of Mining and Metallurgy and a full-time employee of Flinders Mines Limited. Graeme McDonald has sufficient experience that is relevant to the styles of mineralisation and types of deposits 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. Graeme McDonald consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Table 1 : Summary of Honeypot Prospect aircore holes drilled in August 2015.
Hole ID | Prospect | Tenement | Easting (MGA z50) | Northing (MGA z50) | RL (m) | Dip | Azimuth | Total Depth (m) |
HAC108 | Honeypot | E58/282 | 6867843 | 639464 | 460 | -90 | 0 | 13 |
HAC109 | Honeypot | E58/282 | 6867846 | 639365 | 460 | -90 | 0 | 21 |
HAC110 | Honeypot | E58/282 | 6867832 | 639263 | 460 | -90 | 0 | 26 |
HAC111 | Honeypot | E58/282 | 6867942 | 639567 | 460 | -90 | 0 | 9 |
HAC112 | Honeypot | E58/282 | 6867953 | 639518 | 460 | -90 | 0 | 5 |
HAC113 | Honeypot | E58/282 | 6867951 | 639465 | 460 | -90 | 0 | 10 |
HAC114 | Honeypot | E58/282 | 6867952 | 639415 | 460 | -90 | 0 | 56 |
HAC115 | Honeypot | E58/282 | 6867955 | 639364 | 460 | -90 | 0 | 15 |
HAC116 | Honeypot | E58/282 | 6867949 | 639319 | 460 | -90 | 0 | 10 |
HAC117 | Honeypot | E58/282 | 6867951 | 639267 | 460 | -90 | 0 | 10 |
HAC118 | Honeypot | E58/282 | 6868042 | 639564 | 460 | -90 | 0 | 4 |
HAC119 | Honeypot | E58/282 | 6868044 | 639515 | 460 | -90 | 0 | 18 |
HAC120 | Honeypot | E58/282 | 6868051 | 639463 | 460 | -90 | 0 | 14 |
HAC121 | Honeypot | E58/282 | 6868056 | 639413 | 460 | -90 | 0 | 16 |
HAC122 | Honeypot | E58/282 | 6868059 | 639362 | 460 | -90 | 0 | 4 |
HAC123 | Honeypot | E58/282 | 6868053 | 639317 | 460 | -90 | 0 | 18 |
HAC124 | Honeypot | E58/282 | 6868054 | 639264 | 460 | -90 | 0 | 2 |
HAC125 | Honeypot | E58/282 | 6868149 | 639564 | 460 | -90 | 0 | 3 |
HAC126 | Honeypot | E58/282 | 6868148 | 639517 | 460 | -90 | 0 | 2 |
HAC127 | Honeypot | E58/282 | 6868152 | 639466 | 460 | -90 | 0 | 4 |
HAC128 | Honeypot | E58/282 | 6868152 | 639417 | 460 | -90 | 0 | 14 |
HAC129 | Honeypot | E58/282 | 6868148 | 639365 | 460 | -90 | 0 | 10 |
HAC130 | Honeypot | E58/282 | 6868143 | 639318 | 460 | -90 | 0 | 4 |
HAC131 | Honeypot | E58/282 | 6868252 | 639559 | 460 | -90 | 0 | 10 |
HAC132 | Honeypot | E58/282 | 6868244 | 639516 | 460 | -90 | 0 | 22 |
HAC133 | Honeypot | E58/282 | 6868249 | 639465 | 460 | -90 | 0 | 30 |
HAC134 | Honeypot | E58/282 | 6868247 | 639415 | 460 | -90 | 0 | 12 |
HAC135 | Honeypot | E58/282 | 6868242 | 639364 | 460 | -90 | 0 | 13 |
HAC136 | Honeypot | E58/282 | 6868243 | 639346 | 460 | -90 | 0 | 11 |
HAC137 | Honeypot | E58/282 | 6868258 | 639316 | 460 | -90 | 0 | 16 |
HAC138 | Honeypot | E58/282 | 6868257 | 639342 | 460 | -90 | 0 | 26 |
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