MATSA RESOURCES LIMITED LIMITED
ABN 48 106 732 487
Diamond Drilling Commenced at Symons Hill
Diamond Drilling has commenced today on the first of at least two planned diamond drillholes at Symons Hill Fraser Range.
Drilling will determine whether C11 and VA15 are associated with Nova- Bollinger style Ni-Cu sulphide mineralisation.
A minimum of one diamond hole at each target is to be completed
A 650m drillhole to test EM Conductor VA15a under strongly nickel enriched weathered olivine gabbros of 8m @ 0.81% Ni, at SHG02.
A 600m drillhole to test EM Conductor C11 adjacent to anomalous bedrock nickel values at SHG10.
Downhole EM surveys to be carried out to confirm in-hole conductors and to detect off-hole conductors up to 200m away.
Additional drilling is planned to immediately follow up any encouraging results.
Paul Poli Director Frank Sibbel
Director & Company SecretaryAndrew Chapman
Shares on Issue144.15 million
Unlisted Options13.94 million @ $0.25 - $0.43
Top 20 shareholdersHold 51.88%
Share Price on 30 November 201518.5 cents
Market Capitalisation$26.67 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 reception@matsa.com.au www.matsa.com.au
Matsa is very pleased to report that diamond drilling has recommenced at Symons Hill. Drilling is planned to test EM Conductor targets VA15 and C11 as potential Nova Bollinger style Ni Cu mineralisation. (Figure 1)
A description of EM survey methods is included in Appendix 1. The discovery and EM survey work carried out on these conductors has previously been released to the market. (Conductor VA15, MAT announcements to the ASX 22nd December 2014 and 31st January 2015, Conductor C11, MAT announcement to the ASX 23rd September 2015).
The programme will consist of a minimum of 2 holes (one per target) for approximately 1,250m of diamond drilling undertaken on a single shift per day basis. It is anticipated that drilling will take approximately 4 weeks to complete. Downhole EM surveys will be carried out on each hole completed in order to confirm any in-hole conductors and to detect off-hole conductors which may have not been intersected.
Matsa Executive Chairman Mr Poli said 'We are keen to see the results of this diamond drill programme. We have now spent some 2 years exploring the Symons Hill project and we have not yet found the prize but remain encouraged by the geology of the area and will continue our work diligently and determinedly. We can learn from the recent success of Sandfire Resources at the Monty discovery, who have demonstrated that patience and persistence rewards those who are prepared to give it a go. Matsa believes that the Symons Hill Project is the premier location in the Fraser Range and guts and determination will be rewarded.'
Mr Poli added,' Where there is smoke there is fire, and the Symons Hill project has numerous target areas. We are fortunate in that we have a fantastic cash position which allows us the freedom to continue with our exploration programmes in earnest.'
Figure 1: Symons Hill Planned Drilling Dec 2015
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VA 15, Planned Diamond Drillhole PDD02 (Figures 1 and 2)
The VA15 Target was originally discovered by Matsa's 2012 airborne VTEM survey and subsequently confirmed by ground EM surveys including the high powered FLTEM survey which is currently still in progress.
The more recent HPFLEM survey carried out over the VA15 VTEM target was able to better define the target for drilling than earlier EM surveys in 2012 and 2013.
Results of the new HPFLEM survey were modeled and the final interpretation now confirms 2 NNW trending moderate strength (conductance 250-500S) conductors, VA15a and VA15b both dipping steeply towards the NE. These conductors underlie strongly enriched nickel values in weathered olivine gabbros as determined by aircore and shallow RC drillholes of the SHG02 geochemical target (Figure 2). These conductors are interpreted as potential Ni-Cu sulphide mineralisation of Nova Bollinger type. Of particular interest is their close correlation to the anomalous Ni values directly above.
Both conductors are essentially similar, but modelling of the northern anomaly VA15a produced a more robust interpretation and a 650m angled diamond drillhole is planned to be test VA15a at a vertical depth of 500m below surface.
Figure 2: Conductor Plate VA15a (red) on interpretive cross section showing planned drillhole VA15A
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C11 Conductor Planned Diamond Drillhole (Figures 1 and 3)
C11 is a moderate strength (~250-500S) bedrock conductor located under anomalous bedrock Ni values >300ppm Ni in weathered bedrock with nickel values of up to 0.2% Ni in an RC drillhole which intersected mafic ultramafic gabbro (Target SHG10).
Figure 3: Conductor C11, Interpretive cross section showing planned diamond drillhole trace
Preliminary modelling indicates that C11 is a steep ENE dipping conductor plate. The conductive source is interpreted to extend approximately 500m along strike and down dip with a vertical depth of ~150-200m to the top of the conductor.
A 600m angled diamond drillhole (DIA) was designed to intersect all 4 possible conductor plates at vertical depths of between 400m and 500m below surface.
Symons Hill Project BackgroundThe Symons Hill Project is located within Matsa's 100% owned E69/3070 with an area of 96km2. The project is located within the Fraser Range Tectonic zone, 6kms SSW of Independence Group Ltd's (ASX: IGO) Nova nickel mine. Matsa has been actively exploring the project since 2012 with aircore, RC and diamond drilling confirming the presence of nickel anomalous (0.2 - 0.3% Ni) olivine bearing gabbro at targets SHG02, SHG03 and SHG11, which exhibit near surface enrichment in the weathered profile of up to 1.3% Ni.
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