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RIEDEL RESOURCES LIMITED Capital/Financing Update 2014
65702_rns_2014-11-24_3eb91469-d2bc-40db-932e-f3b5aa2727c8.pdf
Capital/Financing Update
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Suite 1, 45 Ord Street West Perth Western Australia 6005
Tel: +61 8 9226 0866 Fax: +61 8 9486 7375
PO Box 1559, West Perth Western Australia 6872
ABN: 91 143 042 022 ASX: RIE
25 November 2014
RIEDEL RESOURCES LIMITED AND AUSTRALIAN MINES LIMITED MARYMIA PROJECT FARM-IN AND JOINT VENTURE
Riedel Resources Limited (ASX: RIE) attaches a copy of Australian Mines Limited's (ASX: AUZ) announcement lodged with the ASX today.
Sue Symmons Company Secretary Riedel Resources Limited
25 November 2014
Coincident bedrock conductor with nickel-copper soil anomaly identified at Marymia
Australian Mines Limited ("Australian Mines" or "the Company") is pleased to report that the ongoing moving loop electromagnetic (EM) survey at Marymia has identified a discrete bedrock conductor within the interpreted extension of the Simmons ultramafic sequence.
Modelling of the Company's recently acquired geophysical data indicates that this conductive body has a strike length of 400 metres and is within 160 metres of the surface.
Significantly, this newly identified EM conductor coincides with a strong and coherent historic nickel-insoil anomaly (previously reported as geochemical target MM001), which covers an area of 1,200 x 800 metres1,2 .
Anomalous copper, platinum and palladium assays were similarly returned from the soil sampling survey of this target area3 .
Australian Mines is proposing to drill test this conductor in February 2015 in conjunction with the Company's maiden drill program of the Burton nickel prospect, where a strong bedrock conductor has recently been detected beneath a thick layer of nickel oxide mineralisation (see Australian Mines' announcement of 18 November 2014).
The Company's expanded EM survey is presently testing a number of priority nickel and copper target zones across the Marymia Project. This survey is anticipated to be completed by mid-December, with results expected within four weeks of the completion of the survey.
***ENDS***
For further information, shareholders and media please contact: Benjamin Bell Managing Director Ph: +61 8 9481 5811 E: [email protected]
1 Falcon Minerals Limited, AGM Presentation, released 9 November 2006
2 Australian Mines Limited, Quarterly Activities Report, released 30 October 2014
3 Falcon Minerals Limited, Annual Technical Report – Marymia Project, submitted to the Western Australian Department of Mines and Petroleum in November 2006
Figure 1: Indicative location of the reported bedrock conductor and coincident nickel-copper-PGE soil anomaly at Marymia. This target, together with the Burton nickel prospect, will be drill tested by Australian Mines from February 2015.
About Australian Mines:
Australian Mines (ASX: AUZ) is an Australian-listed resource company targeting nickel, copper and gold deposits. The company is currently acquiring an interest in the Marymia Project in Western Australia, which has demonstrated the potential to host gold and base metal mineralisation.
Marymia Nickel-Copper-Gold Project (Agreement to earn up to 80%)
Australian Mines signed a Heads of Agreement with Riedel Resources in April 2014 covering the Marymia nickel-copper-gold project, located 55 kilometres northeast and along strike of Sandfire Resources' world class DeGrussa Copper-Gold Mine.
In addition to targeting DeGrussa-style VMS copper-gold mineralisation, Australian Mines is also testing for nickel sulphide mineralisation across the Marymia Project as historic drilling of the oxide zone has returned encouraging results including 8m @ 1.05% Ni from 16m, 4m @ 1.07% Ni from 28m, and 13m @ 0.74% Ni from 28m. (AUZ release: 30 April 2014).
Under the terms of the Agreement announced on 30 April 2014, Australian Mines may acquire a 51% interest in the Marymia Project by spending $1 million on exploration within an initial two-year period. Following the acquisition of the initial 51%, Australian Mines may elect to acquire an additional 29% interest (taking the total to 80%) in the project by spending a further $2 million on exploration within a further 36-month period.
Australian Mines' Marymia Project is located approximately 850 kilometres north of Perth.
Section 1: Sampling Techniques and Data
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Samplingtechniques | Natureandqualityofsampling(e.g.cutchannels, random chips, or specific specialisedindustrystandardmeasurementtoolsappropriate to the minerals under investigation,such as down hole gamma sondes, or handheldXRF instruments, etc.). These examples shouldnot be taken as limiting the broad meaning ofsampling.Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibration of any measurement tools or systemsusedAspects of the determination of mineralisationthat are Material to the Public Report.In cases where 'industry standard' work hasbeen done this would be relatively simple (e.g.'reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In othercases more explanation may be required, suchas where there is coarse gold that has inherentsampling problems. Unusual commodities ormineralisation types (e.g. submarine nodules)may warrant disclosure of detailed information. | Gem Geophysicscommenceda ground-basedmoving loop electromagnetic survey over selectedtargets within the Marymia project area on behalfof Australian Mines in October 2014. This surveyis still in progress.The line spacing for this survey was 200 metres.The along line station spacing for the initial surveywas 100 metres. This station spacing tightened to50 metres along 100 metre spaced lines for thein-fill surveys.At least two readings were acquired at eachstation in order to ensure data repeatability.Quality assurance and quality control (QA/QC) oftheelectromagneticdatawasindependentlyverified by Southern Geoscience Consultants inPerth. |
| Drillingtechniques | Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka,sonic, etc.) and details (e.g. core diameter, tripleor standard tube, depth of diamond tails, facesampling bit or other type, whether core isoriented and if so, by what method, etc.) | This report does not contain any drill-relatedresults. |
| Australian Mines Limited | |||||
|---|---|---|---|---|---|
| Drill samplerecovery | Method of recording and assessing core andchip sample recoveries and results assessed. | This report does not contain any drill-relatedresults. | |||
| Measures taken to maximise sample recoveryand ensure representative nature of thesamples. | |||||
| Whether a relationship exists between samplerecovery and grade and whether sample biasmay have occurred due to preferential loss/gainof fine/coarse material. | |||||
| Logging | Whether core and chip samples have beengeologically and geotechnically logged to a levelof detail to support appropriate Mineral Resourceestimation, mining studies and metallurgicalstudies. | This report does not contain any drill-relatedresults. | |||
| Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc.)photography. | |||||
| The total length and percentage of the relevantintersections logged. | |||||
| Sub-samplingtechniquesand sample | If core, whether cut or sawn and whetherquarter, half or all core taken. | This report does not contain any drill-relatedresults. | |||
| preparation | If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry. | ||||
| For all sample types, the nature, quality andappropriateness of the sample preparationtechnique. | |||||
| Quality control procedures adopted for all sub-sampling stages to maximise representivity ofsamples. | |||||
| Measures taken to ensure that the sampling isrepresentative of the in situ material collected,including forinstanceresultsfor fieldduplicate/second-half sampling. | |||||
| Whether sample sizes are appropriate to thegrain size of the material being sampled. | |||||
| Australian Mines Limited | |||
|---|---|---|---|
| Quality ofassay dataandlaboratorytests | The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial ortotal. | geophysicalThesurveyparametersandequipment used by Gem Geophysics for theelectromagnetic survey at Marymia includes:Survey Parameters | |
| $\bullet$ | For geophysical tools, spectrometers, handheldXRF instruments, etc., the parameters used indetermining the analysis including instrumentmake and model, reading times, calibrations | Survey direction: northwest-southeastStation spacing: 200 metres (first-pass)50 metres (in-fill lines) | |
| factors applied and their derivation, etc. | ReceiverReceiver: SMARTem 24 | ||
| $\bullet$ | Nature of quality control procedures adopted(e.g. standards, blanks, duplicates, externallaboratory checks) and whether acceptable | dB/dt sensor: 3-component B-field magnetometerComponent: X, Y, Z | |
| levels of accuracy (i.e. lack of bias) andprecision have been established. | TransmitterTransmitter: Zonge ZT-3 (modified)Transmitter loop: 200 metres (first pass)Transmitter frequency: 1 HertzTransmitter current: 28 Amps | ||
| At least two readings were acquired at eachstation in order to ensure data repeatability. | |||
| The moving loop system is fully calibrated anddaily tests were carried out to ensure data quality. | |||
| Verification ofsampling andassaying | The verification of significant intersections byeither independent or alternative companypersonnel. | All primary analytical data acquired by GemGeophysics during the electromagnetic surveywere recorded digitally and sent in electronicformat to Southern Geoscience Consultants in | |
| The use of twinned holes. | Perth for independent quality control andevaluation. | ||
| Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols. | |||
| Discuss any adjustment to assay data. | |||
| Location ofdata points | Accuracy and quality of surveys used to locatedrill holes (collar and down-hole surveys),trenches, mine workings and other locationsused in Mineral Resource estimation. | pointsGemGeophysics'Thedataofelectromagnetic survey were located usingstandard GPS positioning. | |
| Specification of the grid system used. | The expected accuracy is $+/-$ 5 metres for eastingand northings and 10 metres for elevationcoordinates. Elevation values were in AHD. | ||
| Quality and adequacy of topographic control. | The grid system used is Map Grid of Australia | ||
| (MGA) GDA94 Zone 50. |
Australian Mines Limited
| Data spacinganddistribution | Data spacing for reporting of ExplorationResults.Whether the data spacing and distribution is$\bullet$sufficient to establish the degree of geologicaland grade continuity appropriate for the MineralResourceandOreReserveestimationprocedure(s) and classifications applied.Whether sample compositing has been applied.$\bullet$ | spacing for themovingThelineloopelectromagnetic survey was 200 metres. Thealong line station spacing for the initial survey was100 metres. This station spacing tightened to 50metres for the in-fill survey lines. |
|---|---|---|
| Orientation ofdata inrelation togeologicalstructure | Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.If the relationship between the drilling orientation$\bullet$and the orientation of key mineralised structuresis considered to have introduced a samplingbias, this should be assessed and reported ifmaterial. | This report does not contain any drill-relatedresults.Thelinespacingforthemovingloopelectromagnetic survey was 200 metres. Thealong line station spacing for the initial survey was100 metres. This station spacing tightened to 50metres for the in-fill survey lines. |
| Samplesecurity | The measures taken to ensure sample security. | The chain of custody is managed by AustralianMines. |
| Audits orreviews | The results of any audits or reviews of samplingtechniques and data. | SouthernExperiencedgeophysicistsatGeoscience Consultants in Perth independentlyallrevieweddataacquiredfromtheelectromagnetic survey at Marymia. |
Section 2: Reporting of Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineraltenement andland tenurestatus | Type,referencename/number,locationandownershipincludingagreementsormaterialissues with third parties such as joint ventures,partnerships, overriding royalties, native titleinterests, historical sites, wilderness or nationalpark and environmental settings.The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area. | The Marymia Project is located within theWesternAustralianexplorationlicencesofE52/2394 and E52/2395.On 30 April 2014, Australian Mines announced ithad signed a Heads of Agreement with RiedelResources Limited (ASX code: RIE) in relation tothe Marymia Project.Exploration licences E52/2394 and E52/2395 arewithin the Marymia and Ned's Creek PastoralLeases and contained within the Native TitleClaimboundariesoftheGingirana(WAD6002/03) and Yugunga-Nya (WAD6132/98)Traditional Owners.Exploration activities on E52/2394 and E52/2395arepermittedunderagreementsdated;7October 2010 between Audax Resources Ltd (asubsidiary of Riedel Resources) and the YamatjiMarlpa Aboriginal Corporation as agent for theYugunga-Nya people; and 23 October 2010between Audax Resources and Gingirana PtyLtd. Australian Mines is permitted to operateunder these agreements as the company is jointventuring with Riedel Resources on this project.Exploration licences E52/2394 and E52/2395 areingoodstandingwithnoimpedimentstoexploration known to exist at the time of writing. |
| Explorationdone by otherparties | Acknowledgment and appraisal of exploration byother parties. | Limited exploration and drilling programs havepreviously been undertaken across the MarymiaProject by other companies.A summary of the historic anomalous nickelintersections are outlined in the ProspectusreleasedbyRiedelResourcesLimitedon23 November 2010. |
| Geology | Deposit type, geological setting and style ofmineralisation. | Australian Mines are targeting three types ofmineral deposits at Marymia;(i)Kambalda-style komatiite-hosted nickelsulphide,(ii)DeGrussa-style volcanogenic massivesulphide (VMS) copper-gold, and(iii)Plutonic-style Archaean gold. |
The Marymia project overlies the Baumgarten Greenstone Belt, which is the interpreted northern extension of the Eastern Goldfields Province of the Yilgarn Craton. The geology of the Marymia project comprises an Archaean greenstone sequence of basalts and komatiitic ultramafic rocks.
| Drill holeInformation | A summary of all information material to theThis report does not contain any drill-relatedunderstanding of the exploration results includingresults.a tabulation of the following information for allMaterial drill holes:oeasting and northing of the drill hole collaroelevation or RL (Reduced Level – elevationabove sea level in metres) of the drill holecollarodip and azimuth of the holeodown hole length and interception depthohole length.If the exclusion of this information is justified onthe basis that the information is not Material andthisexclusiondoesnotdetractfromtheunderstanding of the report, the CompetentPerson should clearly explain why this is thecase. |
|---|---|
| Dataaggregationmethods | This report does not contain any drill-relatedInreportingExplorationResults,weightingresultsaveraging techniques, maximum and/or minimumgrade truncations (e.g. cutting of high grades) andcut-off grades are usually Material and should bestated.Where aggregate intercepts incorporate shortlengths of high grade results and longer lengthsof low grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shownin detail.The assumptions used for any reporting of metalequivalent values should be clearly stated. |
| Relationshipbetweenmineralisationwidths andinterceptlengths | This report does not contain any drill-relatedThese relationships are particularly important inresultsthe reporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature shouldbe reported.If it is not known and only the down hole lengthsare reported, there should be a clear statement tothis effect (e.g. 'down hole length, true width notknown'). |
| Diagrams | | Appropriate maps and sections (with scales) andtabulations of intercepts should be included forany significant discovery being reported Theseshould include, but not be limited to a plan view ofdrillholecollarlocationsandappropriatesectional views. | | Appropriate maps and sections are included inthe body of this report. |
|---|---|---|---|---|
| Balancedreporting | | Where comprehensive reporting of all ExplorationResultsisnotpracticable,representativereporting of both low and high grades and/orwidths should be practiced to avoid misleadingreporting of Exploration Results. | | The accompanying document is considered torepresent a balanced report. |
| Othersubstantiveexplorationdata | | Otherexplorationdata,ifmeaningfulandmaterial, should be reported including (but notlimited to): geological observations; geophysicalsurvey results; geochemical survey results; bulksamples–sizeandmethodoftreatment;metallurgicaltestresults;bulkdensity,groundwater,geotechnicalandrockcharacteristics;potentialdeleteriousorcontaminating substances. | | The electromagnetic survey referred to in thisreport is the first exploration activity conducted byAustralian Mines across this target area. |
| Further work | | The nature and scale of planned further work(e.g.testsforlateralextensionsordepthextensions or large-scale step-out drilling). | | Further work may include a reverse circulation(RC) drill program to test the nature of thebedrock conductor identified at Marymia. |
| | Diagramsclearlyhighlightingtheareasofpossibleextensions,includingthemaingeologicalinterpretationsandfuturedrillingareas,providedthisinformationisnotcommercially sensitive. |
Competent Person's Statement
Information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Benjamin Bell who is a member of the Australian Institute of Geoscientists. Mr Bell is a full-time employee and Managing Director of Australian Mines Limited. Mr Bell has sufficient experience that is relevant to the style of mineralisation and type of deposit 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." Mr Bell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.