Mt Ararat Resource

In the Ararat Project, the total Mineral Resources estimate for the Mt Ararat Besshi-style Vocanic Massive Sulphide (VMS) copper-gold-zinc deposit 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 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.