METALS X LIMITED PRESS RELEASE
5 MARCH 2015
HIGH GRADE GOLD FROM GREAT FINGALL AND PADDY'S FLAT DEEP DRILLING
Metals X is pleased to update the market in relation to exploration and development activities at its Central Murchison Gold Project (CMGP). As previously advised, the outcomes of the recently completed CMGP feasibility study have resulted in an initial development plan with a 13 year mine-life, and average annual gold production over the first 10 years of
200,000 oz. (Refer to ASX Announcement dated 29/01/2015). Two key components of this development plan are the long-life, high-grade underground mines at Great Fingall and Paddy's Flat, both of which have recently been a focus of exploration and resource development activities.
At both Great Fingall and Paddy's Flat, deep diamond drilling targeted towards extensions to the current mine plans has returned significant gold mineralisation including;
2.8 m at 13.64 g/t Au from 870.2 m in GCDD0027A at Great Fingall (Footwall Reef).
3.16 m at 9.23 g/t Au from 848.8 m in GCDD0027A2 at Great Fingall (Great Fingall Reef).
7.4 m at 10.96 g/t Au from 887 m in GCDD0027A2 at Great Fingall (Footwall Reef).
4.4 m at 5.75 g/t Au from 374.5 m in 14VIRD004 at Paddy's Flat (Vivian's Lode).
2 m at 20.28 g/t Au from 524 m in 14VIRD005 at Paddy's Flat (Vivian's Lode).
Metals X's CEO Peter Cook said,
"It is very pleasing to be able to announce results of this nature from Paddy's Flat and Great Fingall, both large, historic high-grade producers which have been overlooked in the modern era of bulk tonnage, low-grade open pit mining. Both of these projects are shaping up to be long-life, high-grade producers, which Metals X anticipates will contribute a substantial volume of high-margin ounces to our Central Murchison Gold Project."
ENQUIRIES | ||
Peter Cook Executive Director & CEO e: peter.cook@metalsx.com.au | Warren Hallam Executive Director e: warren.hallam@metalsx.com.au | Rod Corps Manager - Investor Relations e: rod.corps@metalsx.com.au |
ASX Code: MLX
OTCQX Code: MLXEF
Level 3, 18-32 Parliament Place
West Perth WA 6005
Australia
reception@metalsx.com.au www.metalsx.com.au
GREAT FINGALL - DAY DAWN GOLD MINING CENTRE
The Great Fingall mine is located 5 km south of Cue and was a prolific gold producer with recorded production of 1.2 million ounces at an average recovered grade of 18.5 g/t Au to approximately 750m vertical depth. Mining at Great Fingall ceased in 1914 with the onset of the Great War and mining the continuation of the down-plunge ore system has never re-started.
In September 2014 Metals X commenced a series of diamond drill holes into the Great Fingall Deeps with the objective of validating reef thickness and spatial continuity within areas contained within the mine plan, along with testing for the presence of a theorised footwall reef which would potentially add to the production profile without the need for any material additional to capital expenditure.
In this program, a parent and two daughter diamond holes were drilled which all intersected the Great Fingall Reef consisting of a well-developed quartz lode and halo mineralisation, including visible gold particles and associated minor sulphides. Of significance, each hole intersected the postulated secondary reef structure with excellent widths for mining. Again, these intercepts in the secondary lode revealed visible gold particles with minor accessory sulphides. Structural data suggests this secondary reef is sub-parallel to the Great Fingall Reef, which may substantially improve the 'ounce per vertical metre' profile of the resource upon modelling.
Lode Hole Collar N Collar E Collar Intercept (Downhole) From (m) Dip Azi RL | ||||||||
Great Fingall Reef | GCDD0027A | 6,961,950 | 583,963 | 431 | 4.2m at 8.97g/t Au | 839.0 | -80.0 | 030.5 |
Footwall Reef | 2.8m at 13.64g/t Au | 870.2 | - | - | ||||
Great Fingall Reef | GCDD0027A1 | 6,961,950 | 583,963 | 431 | 4m at 1.37g/t Au | 861.0 | -80.0 | 030.5 |
Footwall Reef | 4m at 1.67g/t Au | 895.0 | - | - | ||||
Shear Zone | 2m at 8.56g/t Au | 918.0 | - | - | ||||
Great Fingall Reef | GCDD0027A2 | 6,961,950 | 583,963 | 431 | 3.16m at 9.23g/t Au | 848.8 | -80.0 | 030.5 |
Footwall Reef | 7.4m at 10.96g/t Au | 887.0 | - | - |
Table 1: Great Fingall significant (>5 gram metres) intercepts.
Plate 1: Hole GCDD0027A2 showing parralel Footwall Reef.
HIGH GRADE GOLD FROM GREAT FINGALL AND PADDY'S FLAT DEEP DRILLING 2
Mining Centre Schematic
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Figure 1: Great Finga/l- Golden Crown Jvlining Centre Schematic with inset showing recent drilling and projected para/le/ Footwa/1 Reef
HIGH GRADE GOLD FROM GREAT FINGALLAN D PADDY'S FLAT DEEP DRILLING 3
PADDY'S FLAT - MEEKATHARRA GOLD MINING CENTRE
In October 2014, a drill program commenced targeting zones beneath and along strike of the Vivian-Consols resource zone at Paddy's Flat. Three holes were drilled to target the Spur Lodes beneath the Consols area, one targeting the Spur Lodes at the northern end of the Vivian's area, and two holes targeting mineralisation to the north of the resource area beneath the previously mined Ingliston Pit.
In the Consols area 14VIRD001, 14VIRD001A and 14VIRD002 were ineffective due to excessive hole deviation, and are not considered an reasonable test of the target. Hole 14VIRD003 successfully intersected the lode confirming the presence of the mineralised structure beyond the boundaries of the current resource model. Pleasingly 14VIRD003 also intersected the proximal Fatts orebody returning a bulk intercept of 40m at 2.27g/t Au. It is important to note that Fatts is not included in the Metals X's current mine plans, although being immediately adjacent to planned development. This represents a significant opportunity to accelerate ounce delivery from the Paddy's Flat mine without any material increase in capital expenditure.
14VIRD004 was collared to the east of the Alberts Shaft targeting the northern part of the Vivian's Lode below the level of the Alberts workings. The hole successfully intersected mineralisation associated with coarse visible gold noted in veining at the target depth (4.4m at 5.75/t Au). This hole also intersected the East Lode further up the hole (4m at
3.35g/t).
14VIRD005 targeted the area beneath the historical Ingliston South main shaft, 150m to the north of 14VIRD004. This area is conspicuous due to a total lack of deep drilling along the extensions to the Paddys Flat "line of lode". 14VIRD005 encountered an extensive alteration zone in excess of 100m in downhole width, correlating with the Vivian, Central and East lodes. The Central Lode is a broad zone of mineralisation associated with strong fuchsite alteration and fine grained pyrite and visible gold. The Vivian Lode was evident as a zone of brecciation and veining and contains two veins with abundant grains of coarse gold (2m at 20.28g/t Au).
Plate 2: Hole 14VIRD005 showing gold-bearing "Spur" veins.
HIGH GRADE GOLD FROM GREAT FINGALL AND PADDY'S FLAT DEEP DRILLING 4
Figure 2: Paddy's Flat Long-Section showing recent drilling
Lode Hole Collar N Collar E Collar RL Intercept (Downhole) | From (m) Dip Azi | |||||||
Consols | 14VIRD001 | 7,055,773 | 650,217 | 523 | NSI | - | -60.0 | 287.7 |
Consols | 14VIRD001A | 7,055,768 | 650,215 | 523 | NSI | - | -60.0 | 287.7 |
Consols | 14VIRD002 | 7,055,990 | 650,360 | 516 | NSI | - | -59.8 | 287.7 |
Fatts | 14VIRD003 | 7,055,979 | 650,231 | 515 | 40m at 2.27g/t Au | 202 | -59.9 | 287.7 |
Fatts | 23m at 1.8g/t Au | 249 | ||||||
Vivian's | 14VIRC006 | 7,056,767 | 650,654 | 521 | NSI | - | -60.0 | 287.6 |
East | 14VIRD004 | 7,056,409 | 650,593 | 525 | 4m at 3.35g/t Au | 319 | -60.4 | 287.7 |
Vivian's | 4.4m at 5.75g/t Au | 374.5 | ||||||
Vivian's | 14VIRD005 | 7,056,560 | 650,646 | 524 | 2m at 20.28g/t Au | 347 | -60.4 | 287.7 |
Table 2: Paddy's Flat significant (>5 gram metres) intercepts.
HIGH GRADE GOLD FROM GREAT FINGALL AND PADDY'S FLAT DEEP DRILLING 5
CMGP REGIONAL
In addition to the deep diamond programs, work on open pits in the CMGP mining schedule has progressed, with the first tranche of pits in the Yaloginda area (adjacent to the Bluebird Mill) validated via resource drilling, and subsequently grade controlled.
Drilling in the New Year has switched in focus to validation and grade control drilling of the Year 2 and 3 pits in the mining schedule (at Reedy and Day Dawn), and testing of the next round of underground targets at Reedy and Cuddingwarra.
ABOUT THE CENTRAL MURCHISON GOLD PROJECT ("CMGP")
The Central Murchison Gold Project will be the next Metals X's mining project that progresses into production. The CMGP has an initial 13 year mine-life with average annual gold production over the first 10 years estimated at 200,000oz from a combination of high-grade underground sources and supporting open pits.
With the CMGP, Metals X holds the dominant landholding in the Murchison Goldfield, Western Australia's second most prolific gold belt after the Eastern Goldfields. Metals X tenement's have realised 10Moz in past production and have a current Total Mineral Resource of 8.5Moz.
The seven major gold mining centres of Big Bell, Cuddingwarra, Day Dawn, Nannine, Paddy's Flat, Reedy and Yaloginda offer a huge range of prospective open pit and underground mining targets, which will be processed via the 2Mtpa Bluebird mill.
COMPETENT PERSONS STATEMENT
The information in this report that relates to Exploration Results is based on information compiled by Mr Jake Russell, B.Sc. (Hons) MAIG. Mr Russell has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities are being undertaken 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 (JORC 2012)".
Mr Russell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Mr Russell is a full-time senior executive of the Company and is eligible to, and may participate in short-term and long-term incentive plans of the Company as disclosed in its annual reports and disclosure documents.
HIGH GRADE GOLD FROM GREAT FINGALL AND PADDY'S FLAT DEEP DRILLING 6
APPENDIX 1 - JORC 2012 TABLE 1
SECTION 1 SAMPLING TECHNIQUES AND DATA
(Criteria in this section apply to all succeeding sections.)
APPENDIX 1 - JORC 2012 TABLE 1 7
Criteria | JORC Code Explanation | Commentary |
Logging | • 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. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged | • Diamond core is logged geologically and geotechnically. • RC / RAB / AC / Blast hole chips are logged geologically. • Development faces are mapped geologically. • Logging is quantitative in nature. • All diamond core is photographed prior to sampling. • All holes are logged completely, all faces are mapped completely. |
Sub-sampling techniques and sample preparation | • If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • 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. • Whether sample sizes are appropriate to the grain size of the material being sampled. | • Blast holes -Sampled via splitter tray per individual drill rods. • RAB / AC chips - Combined scoops from bucket dumps from cyclone for composite. Split samples taken from individual bucket dumps via scoop. • RC - Three tier riffle or cone splitter (approximately 3kg to 5kg sample). Samples generally dry. • Face Chips - Nominally chipped horizontally across the face from left to right, sub-set via geological features as appropriate. • Diamond Drilling - Half-core niche samples, sub-set via geological features as appro- priate. Grade control holes may be whole-cored to streamline the core handling pro- cess if required. • Chips / core chips undergo total preparation. • Samples undergo fine pulverisation of the entire sample by an LM5 type mill to achieve a 75µ product prior to splitting. • QA/QC is currently ensured during the sub-sampling stages process via the use of the systems of an independent NATA / ISO accredited laboratory contractor. A significant portion of the historical informing data has been processed by in-house laboratories. • The sample size is considered appropriate for the grain size of the material being sampled. • The un-sampled half of diamond core is retained for check sampling if required. • For RC chips regular field duplicates are collected and analysed for evidence of sampling bias. |
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. • 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. • 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. | • • Recent drilling was analysed by fire assay as outlined below; » A 50g sample undergoes fire assay lead collection followed by flame atomic adsorption spectrometry. » The laboratory includes a minimum of 1 project standard with every 22 samples analysed. » Quality control is ensured via the use of standards, blanks and dupli- cates. • No significant QA/QC issues have arisen in recent drilling results. • Historical drilling has used a combination of Fire Assay, Aqua Regia and PAL analysis. |
APPENDIX 1 - JORC 2012 TABLE 1 8
Criteria | JORC Code Explanation | Commentary |
Verification of sampling and assaying | • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. | • Anomalous intervals as well as random intervals are routinely checked assayed as part of the internal QA/QC process. • Virtual twinned holes have been drilled in several instances across all sites with no significant issues highlighted. Drillhole data has also routinely been confirmed by de- velopment assay data in the operating environment. • Primary data is loaded into the drillhole database system and then archived for ref- erence. • All data used in the calculation of resources and reserves are compiled in databases (underground and open pit) which are overseen and validated by senior geologists. • No primary assays data is modified in any way. |
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. • Specification of the grid system used. • Quality and adequacy of topographic control. | • All data is spatially oriented by survey controls via direct pickups by the survey de- partment. Drillholes are all surveyed downhole, deeper holes with a Gyro tool if re- quired, the majority with single / multishot cameras. • All drilling and resource estimation is undertaken in local mine grid at the various sites. • Topographic control is generated from a combination of remote sensing methods and ground-based surveys. This methodology is adequate for the resource in question. |
Data spacing and distribution | • Data spacing for reporting of Exploration Results. • 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. • Whether sample compositing has been applied. | • Data spacing is variable dependent upon the individual orebody under consideration. A lengthy history of mining has shown that this approach is appropriate for the Min- eral Resource estimation process and to allow for classification of the resource as it stands. • Compositing is carried out based upon the modal sample length of each individual domain. |
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. • 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. | • Drilling intersections are nominally designed to be normal to the orebody as far as underground infrastructure constraints / topography allows. • Development sampling is nominally undertaken normal to the various orebodies. • It is not considered that drilling orientation has introduced an appreciable sampling. |
Sample security | • The measures taken to ensure sample security. | • Samples are delivered to a third party transport service, who in turn relay them to the independent laboratory contractor. Samples are stored securely until they leave site. |
Audits or reviews | • The results of any audits or reviews of sampling techniques and data | • Site generated resources and reserves and the parent geological data is routinely reviewed by the Metals X Corporate technical team. |
APPENDIX 1 - JORC 2012 TABLE 1 9
SECTION 2 REPORTING OF EXPLORATION RESULTS
(Criteria listed in the preceding section also apply to this section.)
APPENDIX 1 - JORC 2012 TABLE 1 10
Criteria | JORC Code Explanation | Commentary |
• The Paddy's Flat area is located on the western limb of a regional fold, the Polelle Syn- cline, within a sequence of mafic to ultramafic volcanics with minor interflow sed- iments and banded iron-formation. The sequence has also been intruded by felsic porphyry dykes prior to mineralisation. Mineralisation is located along four sub-par- allel trends at Paddy's Flat which can be summarized as containing three dominant mineralisation styles: • Sulphide replacement BIF hosted gold. • Quartz vein hosted shear-related gold. • Quartz-carbonate-sulphide stockwork vein and alteration related gold. • The Yaloginda area is a gold-bearing Archaean greenstone belt situated ~15km s at the sheared contacts of dolerite, basalt, ultramafic schist, quartz-feldspar porphyry, and shale. • The Nannine Gold Project is located in the Murchison goldfield approximately 30km SSE of Meekatharra. The Nannine area is the site of the first reliably documented discovery of gold in the Murchison in June 1890, and since that time has produced in excess of 200,000 oz of gold. Bedrock gold mineralisation at Nannine is controlled by the development of brittle faults that cross-cut both the volcano-sedimentary sequences and the syn-tectonic Nannine Tonalite and Norie Pluton. • The Yaloginda area is a gold-bearing Archaean greenstone belt situated ~15km south of Meekatharra. The deposits in the area are hosted in a strained and metamor- phosed volcanic sequence that consists primarily of ultramafic and high-magnesium basalt with minor komatiite, peridotite, gabbro, tholeiitic basalt and interflow sedi- ments. The sequence was intruded by a variety of felsic porphyry and intermediate sills and dykes. | ||
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: » easting and northing of the drill hole collar » elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar » dip and azimuth of the hole » down hole length and interception depth » hole length. • 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. | • Presented in tables above. • Excluded results are non-significant and do not materially affect understanding of the CMGP deposits.. |
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. • 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 assumptions used for any reporting of metal equivalent values should be clearly stated. | • Results are reported on a length weighted average basis. • Results are reported above a 5g/m Au cut-off. • Results reported may include up to two metres of internal dilution below a 0.5g/t Au cut-off. • No metal equivalent values are reported. |
APPENDIX 1 - JORC 2012 TABLE 1 11
Criteria | JORC Code Explanation | Commentary |
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. • 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'). | • Interval widths are downhole width unless otherwise stated. |
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. | • Images are presented in the body of the text as appropriate. |
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. | • Excluded results are non-significant and do not materially affect understanding of the CMGP deposit. |
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. | • Relevant information presented in the body of the text above. |
Further work | • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. | • Exploration and mine planning assessment continues to take place at the CMGP. |
APPENDIX 1 - JORC 2012 TABLE 1 12
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