Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

RED MOUNTAIN MINING LIMITED Regulatory Filings 2019

Oct 28, 2019

65719_rns_2019-10-28_7d0931c7-3db5-4584-af32-47c56ba52ddc.pdf

Regulatory Filings

Open in viewer

Opens in your device viewer

==> picture [282 x 85] intentionally omitted <==

29th October 2019

ADDITIONAL GROUND PROSPECTIVE FOR HEAVY RARE EARTHS AT MT MANSBRIDGE

  • New Exploration License E80/5413 at Mt Mansbridge Project area applied for

  • Additional tenure captures remaining prospective REE host geology and increases the unconformity target strike length to 33km for a total tenement area of 280 km[2]

  • Previous work shows the presence of anomalous yttrium and heavy lanthanide element dysprosium.

Red Mountain Mining (“the Company”) is pleased to advise that it has expanded the Company’s tenure at the Mt Mansbridge Project in the East Kimberly through the application of exploration license E80/5413.

Outcropping geology within the new tenement contains the prospective Archean sedimentary Killi Killi Beds which are unconformably overlain by the younger Proterozoic Gardiner Sandstone. The contact of these sedimentary units is separated by a regional unconformity which now extends over 30 kms at the Mt Mansbridge Project (Figure 1).

==> picture [455 x 396] intentionally omitted <==

Figure 1: Tenement application E80/5413 with target unconformity and new REE prospect

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Previous reconnaissance activities undertaken on tenement E80/5413 by Northern Minerals in 2011 (WAMEX Report A92909) has identified presence of anomalous yttrium and heavy lanthanide element dysprosium within a strongly silicified siltstone unit within the Archean Killi Killi beds. Rock chip sample GTRK000002 was taken from the outcropping unit for geochemical analysis, which returned anomalous Dysprosium value of 222.32 ppm and Yttrium value of 1552 ppm (further assay information in Appendix 1).

This sample was the only sample collected for REE mineralisation with other samples being taken from quartz veins and assayed to test for gold mineralisation.

Rock chip sample GTRK000002 is located approximately 10 kms to the south-west of the Killi Killi REE prospect in close proximity to the regional unconformity. The identification of heavy rare earth elements highlights the REE prospectivity of the Mt Mansbridge Project and the potential for additional targets that warrant further exploration.

Director Jeremy King Commented:

“Having moved quickly to secure 100% of Mt Mansbridge we are delighted to have picked up the additional ground at Mt Mansbridge. In light of recent discussions between the United States and Australia regarding rare earths supply and China’s domination of the heavy rare earths market in particular, we consider that Mt Mansbridge Project has the potential to be a strategic asset, prospective for critical and high value heavy rare earth elements.”

When granted, the new tenement package will increase the Mt Mansbridge Project area to 280 km[2] and increases the unconformity target strike length to 33km. The Killi Killi Rare Earths project is one of the few Australian rare earth projects prospective for heavy rare earths with known occurrences of xenotime, which hosts the heavy rare earth dysprosium.

The company considers the land package to be of strategic importance and notes recent talks between the United States and Australia regarding supply of rare earths and critical minerals, particularly those used in weapons guidance systems, a key use of dysprosium.

RMX has the right to acquire 100% of the Mt Mansbridge project, which hosts the Killi Killi Rare Earths Prospect. A notice of meeting to approve the transaction is to be dispatched to shareholders in the near term.

Moving forward, the Company will look to systematically review all available technical information and, coupled with field programs, will rank and prioritise drilling targets.

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

About the Mt Mansbridge Project

Located in the East Kimberly the Mt Mansbridge Project hosts three targets, the Killi Killi Rare Earths Project, the Déjà vu nickel-copper-cobalt prospect and the Cow Creek prospect.

Previous work at the Killi Killi prospect has delineated an extensive rare earth element anomaly which is coincident with historically reported heavy rare earth element xenotime mineralisation in rock chip samples (refer ASX Announcement 12 August 2019). The REE anomalism is unconformity-related suggesting a similar mineralisation model to unconformity deposits in the East Kimberly region.

Historic drilling at the Déjà vu ultramafic intrusion has intersected high-grade primary cobalt mineralisation in drilling from 70-100m, with mineralisation open at depth and along strike. Déjà vu is also prospective for nickel and copper.

==> picture [452 x 432] intentionally omitted <==

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Appendix 1 - Significant Assays from historic rock chip sample GTRK000002

Sample ID
GTRK000002
La
(ppm)
Ce
(ppm)
Pr
(ppm)
Nd
(ppm)
Sm
(ppm)
Eu
(ppm)
Gd
(ppm)
Tb
(ppm)
Dy
(ppm)
Y
(ppm)
31.7 51.8 6.83 24.8 8.71 4.11 61.09 24.76 222.32 1551.8
Sample ID
Ho
(ppm)
Er
(ppm)
Tm
(ppm)
Yb
(ppm)
Lu
(ppm)
GTRK000002
50.23
138.29
17.65
92.47
11.62
Sample ID Ho
(ppm)
Er
(ppm)
Tm
(ppm)
Yb
(ppm)
Lu
(ppm)
GTRK000002 50.23 138.29 17.65 92.47 11.62

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Appendix 2 - The following Tables are provided to ensure compliance with the JORC Code (2012 Edition) requirements for the reporting of Exploration Results at tenement E80/5413.

Criteria JORC Code explanation Commentary
Sampling
technique
s
Nature and quality of sampling (eg cut
channels, random chips, or specific
specialised industry standard measurement
tools appropriate to the minerals under
investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc).
These examples should not be taken as
limiting the broad meaning of sampling.
Include reference to measures taken to
ensure sample representivity and the
appropriate calibration of any measurement
tools or systems used.
Aspects of the determination of
mineralisation that are Material to the Public
Report.
In cases where ‘industry standard’ work has
been done this would be relatively simple
(eg ‘reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was
pulverised to produce a 30 g charge for fire
assay’). In other cases more explanation
may be required, such as where there is
coarse gold that has inherent sampling
problems. Unusual commodities or
mineralisation types (eg submarine
nodules) may warrant disclosure of detailed
information.
Results from the following exploration activities
are presented in this announcement and were
carried out by Northern Minerals.
1 conventional rock chip geochemical sample.
Drilling
technique
s
Drill type (eg core, reverse circulation,
open-hole hammer, rotary air blast, auger,
Bangka, sonic, etc) and details (eg core
diameter, triple or standard tube, depth of
diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by
what method, etc).
No drilling results are being discussed.
Drill
sample
recovery
Method of recording and assessing core
and chip sample recoveries and results
assessed.
Measures taken to maximise sample
recovery and ensure representative nature
of the samples.
Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to
preferential loss/gain of fine/coarse
material.
No drilling results are being discussed.
Logging Whether core and chip samples have been
geologically and geotechnically logged to a
No drilling results are being discussed.

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Criteria JORC Code explanation Commentary
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.
Sub-
sampling
technique
s and
sample
preparatio
n
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.
Standard lab preparation and sub sampling
techniques used.
Appropriate protocols were used for
reconnaissance sampling.
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.
Conventional rock samples were analysed by
Genalysis in Perth (a quality certified laboratory).
Sample GTRK000002 was taken from a
siliceous/cherty unit and analysed using a 10g
four-acid digest ICP-OES/ICP-MS package for
33 elements (analytical code 4A/OE01), plus a
lithium borate fusion rare earth package
(analytical code FB6/MS33).
These assay methods are considered
appropriate for the metals being investigated.
Verificatio
n 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.
No verification has been completed as only
primary data used.
Data was compiled directly from laboratory
certificates into datasheets compiled by the
consultant geologists. Checks against field notes
and spatially utilising GIS software were
completed.

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Criteria JORC Code explanation Commentary
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 samples are located with a handheld GPS
and an accuracy of +/- 5m.
Grid used for the sample is MGA94 Zone 52.
Topographic control is provided by publicly
available data.
Data
spacing
and
distributio
n
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.
Being one isolated rock chip sample, the data
spacing is not applicable.
Orientatio
n 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.
Being one isolated rock chip sample, the data
spacing is not applicable.
Sample
security
The measures taken to ensure sample
security.
All samples were submitted directly to the lab, or
to a freight contractor to carry directly to the lab.
Audits or
reviews
The results of any audits or reviews of
sampling techniques and data.
None completed to date.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral
tenement
and land
tenure
status
Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint
ventures, partnerships, overriding royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
The security of the tenure held at the time
of reporting along with any known
impediments to obtaining a licence to
operate in the area.
The Mt Mansbridge Project comprises of two
contiguous granted exploration licenses
E80/5111 and E80/5229 and one application
license E80/5413 covering an area of 280km2.
The tenure is within land where native title has
been determined. The traditional owners of the
land are the Tjurabalan People.
Heritage survey will need to be completed prior
to commencing exploration activities.

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Criteria JORC Code explanation Commentary
Exploratio
n done by
other
parties
Acknowledgment and appraisal of
exploration by other parties.
All data presented within this announcement is
of historical nature. Exploration of the Killi Killi
prospect was first undertaken by BHP and
subsequently followed up by Quantum
Resources and Northern Minerals.
Geology Deposit type, geological setting and style of
mineralisation.
The deposit type and main target mineralisation
model is of an “unconformity-related” system
withdepositionof REE.
Drill hole
Informatio
n
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:
o easting and northing of the drill hole
collar
o elevation or RL (Reduced Level –
elevation above sea level in metres)
of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception
depth
o 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.
No drilling results are being discussed.
Data
aggregatio
n 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.
No data aggregation or metal equivalents have
been used.
Relationsh
ip between
mineralisat
ion 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’).
No drilling results are being discussed.

==> picture [595 x 42] intentionally omitted <==

==> picture [282 x 85] intentionally omitted <==

Criteria JORC Code explanation Commentary
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.
Maps and appropriate plans are included in this
announcement.
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.
All results are tabulated in the Appendices and
shown on figures in this announcement.
Other
substantiv
e
exploratio
n 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.
Other work completed by Northern Minerals
during the recognisance programme comprised
12 other rock chip samples being taken from
quartz veins and assayed for gold and field
geological mapping. Further data collection and
validation is still in progress.
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.
Follow up exploration program is being
designed.
All relevant diagrams and inferences have been
illustrated in this report.

==> picture [595 x 42] intentionally omitted <==