Resources

Thursday’s Gossan Resource

Thursday’s Gossan Chalcocite Blanket has an estimated (using a 0.2% Cu grade lower cut-off) – 28Mt at 0.4% copper for a contained 110kt of contained copper 1. The resource is a near surface secondary chalcocite enriched blanket over a porphyry copper deposit. Thursday’s Gossan copper mineralisation was discovered in the 1970s with a small gossan at surface located just north of a railway cutting.

 In August 2015 the annual review of the Thursday’s Gossan Mineral Resources was undertaken.  While drilling was conducted during the 2015 financial year  in the area, targeting well-developed primary porphyry copper-gold mineralisation at depth, no drilling was completed in the area of the existing secondary-enriched copper mineralisation. Consequently, the Mineral Resources at Thursday’s Gossan were reviewed in the context of the assumptions underpinning the 2013 Mineral Resources estimate. This review concluded that: The Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2015, remains unchanged from the Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2013. There has been no additional data collected from the deposit and although economic circumstances affecting the mining industry have changed since 2013 the assumptions utilised in 2013 remain valid, if not for the current situation but for future situations.“

The Thursday’s Gossan Chalcocite deposit (TGC) is more appropriately a supergene enrichment of primary porphyry-style copper mineralisation. Mineralisation is characterised by chalcopyrite, covellite and chalcocite copper sulphide mineralisation within a sericite, illite and kaolin clay alteration assemblage. Copper mineralisation is within a flat lying enriched ‘blanket’ of overall dimensions of 4 kilometres north-south by up to 1.5 kilometres east-west by up to 60 metres thick with an average thickness of approximately 20 metres commencing at an average depth below surface of approximately 30 metres. The majority (circa 60%) of the Mineral Resources reside within a higher grade zone of approximate dimensions of 1 kilometre x 300 metres by 35 metres thick.

Reporting of Thursday’s Gossan Chalcocite Copper Resource against criteria in Table 1 JORC Code 2012

Summary:

The Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2015, remains unchanged from the Thursday Gossan Chalcocite Copper Inferred Resource Estimate, August 2013.  There has been no additional data collected from the deposit and although economic circumstances affecting the mining industry have changed since 2013 the assumptions utilised in 2013 remain valid, if not for the current situation but for future situations.  Stavely Minerals have advised that tenure over the Thursday Gossan Chalcocite deposit is in good standing and that there are no impediments to undertaking further evaluation of the deposit.

Details of the 2013 resource estimate have been reported in “Thursday Gossan Copper, Victoria, Australia, 2013 Resource Estimate Report” prepared for Northern Platinum Pty Ltd, a forerunner for Stavely Minerals Limited who now hold tenure over the project area.  The following summary of the 2013 Inferred Resource Estimate applies to the 2015 resources publically stated by Stavely and is repeated here unchanged to support their statement.  The reader can substitute 2015 for 2013 and Stavely Minerals for Northern Platinum in the text on the following pages.

The Thursday’s Gossan Chalcocite Copper August 2013 Inferred Resource Estimate is an inverse distance squared Cu estimate of the tabular sub-horizontal supergene style mineralisation of the deposit and is tabulated below. The estimate was undertaken, classified and reported according to the guidelines set out in The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve (the JORC Code, 2012 Edition).

The Thursday’s Gossan Chalcocite Copper August 2013 Inferred Resource Estimate:

Thursday Gossan Chalcocite

Table shows rounded estimates. This rounding may cause apparent computational discrepancies. Significant figures do not imply precision. Nominal copper grade reporting cuts applied. Three mineralised thicknesses reported as varied economic factors are likely to be applicable to each.

 The Estimate:

  • Is based on historic drilling data of unknown reliability and quality however there are no obvious reasons to question that the holes were drilled to test a flat lying supergene copper deposit.
  • Extends intermittently for a strike length of 4000m (NS) a breadth of 1500m and vertically up to 60m thick. The model includes prospects known as Thursday Gossan Chalcocite Copper, Junction and Drysdale.
  • Is underpinned by 2355 Cu assays from 225 holes (1493 nominal 3m composites). Cu grades were interpolated without any cuts or restrictions. A tonnage factor of 2.10g/cc was applied to all mineralised blocks.
  • Reconciles well both statistically and spatially with the source assay data.
  • Was undertaken by Duncan Hackman who is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 (The JORC Code, 2012 Edition).

Click to view the Thursday’s Gossan  JORC 2012 Table 1, Sections 1, 2 and 3 criteria.

 

Mt Ararat Resource

The Total Mineral Resources estimate for the Mt Ararat Besshi-style Vocanic Massive Sulphide (VMS) copper-gold-zinc deposit (using a 1% Cu lower cut-off) is 1.3 million tonnes grading 2.0% copper, 0.5 g/t gold, 0.4% zinc and 6 g/t silver including 0.25 million tonnes grading 2.2% copper in the Indicated Resources category with the remainder classified as Inferred Resources. The 2015 Mt Ararat Copper Resource Estimate has been classified as Indicated and Inferred Resources under guidelines set out in the JORC Code (2012 Edition). The Mt Ararat Mineral Resource hosts an estimated 26,000 of contained copper, 21,000 ounces of contained gold, 5,300t of contained zinc and 242,000 ounces of contained silver.

Drilling completed during the 2015 financial year has provided additional data, defining an extension of the existing mineralisation at Mt Ararat further to the north. In addition, the increased data density and confirmation of historical drill-hole grades and widths by more recent drilling has also provided an increase in the confidence of a portion of the deposit, allowing elevation of some of the copper resources into the Indicated Resource classification.

VMS deposits are stratiform to strata-bound concentrations of copper, zinc, lead, gold and silver massive sulphide deposits formed at or near the sea floor during submarine hydrothermal activity. VMS deposits formed in dominantly basalt sequences in back-arc tectonic settings tend to be copper- and zinc- rich and are referred to as “Besshi” type.

Reporting of Mt Ararat Resource against criteria in Table 1 JORC Code 2012

Summary:

The Mount Ararat August 2015 Inferred Resource Estimate is an inverse distance squared Cu, Au, Ag and Zn estimate of the planar, steeply dipping VMS style mineralisation of the deposit and is tabulated below.  The estimate was undertaken, classified and reported according to the guidelines set out in The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve (the JORC Code, 2012 Edition).

The Mount Ararat August 2015 Inferred Resource Estimate:

Table shows rounded estimates. This rounding may cause apparent computational discrepancies. Significant figures do not imply precision. Nominal copper grade reporting cuts applied. Three material types reported as varied economic factors will be applicable to the deposit base on reported material types.

The estimate:

  • Is based on recent 2014-15 Stavely Minerals drilling and historic drilling data which is of unknown reliability and quality that tests a discrete steeply dipping body of base metal mineralisation.
  • Extends for a strike length of 830m (towards 335deg), vertically for 350m and ranges mostly between 1m and 3m thick (total massive + sub-massive + stringer mineralisation).  The mineralisation is modelled between 4m and 14m thick in the upper 50m (this may be real, due to supergene actions or introduced due to the suspected wet/difficult RC drilling conditions).
  • Is underpinned by 309 Cu assays from 64 holes (271 nominal 1m composites).  High grade restrictions are applied to the Cu, Au, Ag and Zn grade interpolations (55m radius of influence).  A tonnage factor of 3.17g/cc was applied to all mineralised blocks.
  • Reconciles well both statistically and spatially with the source assay data.
  • Was undertaken by Duncan Hackman who is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 (The JORC Code, 2012 Edition).

Click to view the Mt Ararat  JORC 2012 Table 1, Sections 1, 2 and 3 criteria.