76c09257-6921-46e5-a92b-607996658777.pdf



MINOTAUR EXPLORATION LIMITED ACN 108 483 601 ASX: MEP


24 February 2016


MINOTAUR

EXPLORATION


ASX Release


Maiden Inferred Resource reported for the Lake Purdilla gypsum deposit

Highlights


  • Maiden Inferred Resource (JORC 2012) of 87 million tonnes at 91% gypsum;

  • Eminently suitable for plasterboard, cement and agricultural applications;

  • South Australia's largest undeveloped gypsum deposit;

  • Shallow occurrence with surface expression;

  • Located 130 km from existing bulk handling port;

  • Immediately adjacent to a potential bulk handling port development site.


Lake Purdilla inferred gypsum resource estimate


The Lake Purdilla gypsum deposits1 occur in western South Australia on tenement EL 5398 held 100% by a subsidiary of Minotaur Exploration (ASX: MEP). The deposits are sited approximately 130 km southeast of the bulk handling facility at Port Thevenard (Ceduna) and within 15 km of a potential deepwater port development location.

An Inferred Resource (JORC 2012) for the Lake Purdilla deposits of 87 million tonnes at purity of 91% gypsum (gypsarenite and selenite CaSO4.2H2O) has been estimated (refer to JORC Table 1 in Appendix for details).


The average gypsum thickness is 2m with localised basins up to 7m thick from surface level. The lake

deposits, which extend across 35 km2, formed by marine flooding of coastal depressions and subsequent infill through precipitation of gypsum.


In addition to the infilling deposits of crystalline lake gypsum (selenite), an extensive system of wind-blown gypsum dunes (gypsarenite) occurs on or adjacent to the lake surface. The dunes represent an economic advantage as the gypsum is unconsolidated and likely to be easily excavated for immediate transport to the market.


1 Adjacent Lake Toorna deposit included under Lake Purdilla, for convenience; refer to JORC Table 1 in Appendix


LEVEL 1, 8 BEULAH ROAD, NORWOOD, SOUTH AUSTRALIA 5067 T +61 8 8132 3400 F +61 8 8132 3499 E admin@minaturexploration.com.au

www.minotaurexploration.com.au


Location of gypsum lakes (red) within EL 5398 east of Sceale Bay in western South Australia.


Lake Purdilla2 Inferred Gypsum Resource



An Exploration Target of 50-60 million tonnes at 85-90% gypsum, supported by historic drilling data pre- dating 1970, was announced in 20122. Recent acquisition of additional historic data collected during extensive drilling programmes across the Lake Purdilla3 lake and dune gypsum deposits in 1988, 1996 and 1997 supports the upgrade to Inferred Resource category.


510 holes of the total utilised dataset tested the extensive system of wind-blown lunette dunes of gypsum which extend across Lakes Purdilla and Toorna. The dunes across Lake Purdilla were sampled by 358 holes in 1988, 37 holes in 1996 and 6 holes in 1997. The central dune system on Lake Toorna was sampled by regularly spaced traverses of 109 auger holes in 1988.


The inclusion of the 1988-1997 dune traverse drilling data into Minotaur's dataset, further supported by a dune elevation survey conducted by Minotaur in 2015, has increased confidence in dune volumes and contained gypsum grades.


A total of 185 drillholes have tested the gypsiferous sediments infilling Lake Purdilla. The northeastern and southeastern quadrants of the lake were grid-drilled (250-400m spacing) in 1996-1997. Drillholes across the western side of the lake surface were irregularly spaced. Lake Toorna was sampled in 1959 by 17 drillholes; no further drill testing of the lake gypsum has subsequently occurred.


  1. Exploration Target determined for Lake Purdilla gypsum deposit, ASX release 2 March 2012

  2. Adjacent Lake Toona deposit included under Lake Purdilla, for convenience


    Lake Purdilla block model showing extent of dune gypsum blocks at 0mRL (orange blocks >80% gypsum, red blocks

    >90% gypsum) relative to drillhole collars and satellite imagery


    Lake Purdilla block model showing lake gypsum blocks at -1 to -2mRL (orange blocks >80% gypsum, red blocks >90% gypsum) relative to drillhole collars and satellite imagery


    The inclusion of 1996-1997 drilling data

    has increased Minotaur's confidence in the extent and continuity of the Lake Purdilla gypsum deposits. Costean-scale lake gypsum sampling undertaken in late 2014 on Lake Purdilla confirmed gypsum quality, provided bulk density measurements used to estimate tonnage, and provided a 5 tonne gypsum sample for independent processing test work by a raw gypsum consumer.


    Gypsum grade (%) of the Lake Purdilla deposits was estimated by Minotaur using Inverse Distance Squared methodology.

    A review of the block model by H&S Consultants Pty Ltd included a check model using Ordinary Kriging on 1m composites for a 2.5D model of gypsum grade and mineral

    thickness for the lake and dune deposits at Lake Purdilla. H&S Consultants' results are reasonable and comparable to the Minotaur model and support classification of resource estimates as Inferred. Extensive detail of the historic dataset, the resource modelling and any assumptions are included in the JORC Table 1 (see Appendix).


    Minotaur is of the opinion that a small amount of infill drilling, including hole twinning, would support upgrade of a

    substantial part of the deposit to Indicated Resource classification.



    Gypsum market and transport


    Lake Purdilla gypsum - coarse selenite crystals to 25 mm width - excavated from 2014 costean


    Lake Purdilla is the largest known undeveloped gypsum resource in South Australia. It is envisaged that a mining rate of 1 million tonnes per year could support an export operation for more than 50 years. Current gypsum production in South Australia is approximately 4 million tonnes per year, accounting for about 80% of Australia's production and supplying most of the country's domestic requirements (73% plasterboard manufacture, 20% cement manufacture, 7% agricultural use). The gypsum at Lake Purdilla is suitable for

    all these purposes. Beyond the domestic market, gypsum consumption in Southeast Asia - particularly in Indonesia, Vietnam, Malaysia and India, is expanding strongly - driven by burgeoning cement and

    plasterboard production.


    A 2015 port trans-shipment study4 indicates that a cost effective logistics solution could be built adjacent to the Lake Purdilla site, potentially providing economies of operation to shipping of gypsum, Minotaur's nearby kaolin and halloysite assets, and grain produced regionally.


    Next Steps


    Minotaur considers the publication of the Maiden Inferred Resource (JORC 2012) for Lake Purdilla will clarify its economic value for various raw gypsum consumers. Accordingly, Minotaur intends to divest the asset and work with the new owner to progress the port solution to the benefit of the diverse user base envisaged.


  3. MEP terminates gypsum sale agreement, ASX release 7 May 2015

Minotaur Exploration Ltd. issued this content on 24 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 February 2016 23:36:05 UTC

Original Document: http://www.minotaurexploration.com.au/sites/default/files/documents/MEP_ASX_Lake Purdilla Gypsum_24Feb2016.pdf