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1 ASX ANNOUNCEMENT 7 March 2012 High Priority Gold Drilling Targets at Marymia Project COMPANY DIRECTORS Mr Ian Tchacos Non-Executive Chairman Mr Bruce Franzen Executive Director HIGHLIGHTS High priority drilling targets have been identified within the Baumgarten Greenstone Belt. Drilling targets have emerged from the interpretation of recently completed field reconnaissance work and historic RAB drilling results at Baumgarten s Reward, including: g/t Au from surface; g/t Au from surface, and; g/t Au from 4 metres depth. Drilling target also identified at Baumgarten s South after rock chip sampling of an outcropping quartz vein returned 56.6g/t Au. Field checking of a 247ppb Au soil anomaly has confirmed the presence of a previously unknown shear zone hosted quartz vein which is prospective for gold mineralisation. A 90 hole aircore drilling programme to target highly prospective structural corridors is planned to commence in April Mr Jeffrey Moore Managing Director Mr Andrew Childs Non-Executive Director Mr Wolfgang Zimmer Non-Executive Director COMPANY SECRETARY Mr Bruce Franzen CONTACT DETAILS Principal & Registered Office Suite 1 45 Ord Street West Perth WA 6005 Australia Postal Address PO Box 1559, West Perth WA 6872 Website admin@riedelresources.com.au Phone Facsimile ABN: ASX CODE: RIE, RIEO First pass soil sampling over prospective regolith has now been completed over the entire project area and detailed geological mapping has been completed over a total area of 266 square km s. Riedel Resources is pleased to present an update on exploration activities and results from field work recently completed at the Company s Marymia Project area as well as a plan for future work (see Figure 1 for project location). Background Riedel holds two exploration licences (E52/2394 and E52/2395) covering an area of more than 425 square kilometres in the highly prospective Doolgunna-Thaduna region of the Proterozoic
2 volcano-sedimentary Bryah and Yerrida Basins and Archaean Baumgarten greenstone belt in the Marymia Inlier. The exploration licences are located approximately 55 kilometres north-east of Sandfire Resources NL s DeGrussa copper-gold mine, 12 kilometres east of Sipa Resources Limited s Thaduna copper prospect and 12 kilometres east-north-east of Ventnor Resources Limited s Green Dragon and Thaduna copper deposits in Western Australia s Mid-West region. Exploration Results and Update Figure 1: Marymia Project - Location Map During February 2012 exploration programmes including detailed geological mapping over 221 square kilometres and the collection of 1,860 geochemical soil samples were carried out over previously unexplored or underexplored areas within the Company s Marymia Project. In addition, nine rock chip samples were collected from several prospects within the Baumgarten Greenstone Belt. This work completes the first pass soil sampling programme on 400m x 200m centres over prospective regolith within the project area (see Figure 3). Assay results are pending for all of the soil samples collected during the month, however, assay results from the rock chip samples have been received, returning a maximum value of 56.6g/t Au from an outcropping quartz vein within the Baumgarten s South prospect. Baumgarten s South is located 2.5 kilometres due south of the Baumgarten s Reward prospect (see Figure 1). The vein will be mapped and sampled in more detail prior to drilling. In parallel with the field programmes, a comprehensive review of the historic exploration database was completed and the previous drilling results were reinterpreted to incorporate all of the field mapping observations collated from the recent field campaigns over the Baumgarten Greenstone Belt. Page 2
3 For personal use only Of particular significance is the reinterpretation of historic (1987) RAB drilling results at the Baumgarten s Reward prospect (see Figure 1). The reinterpretation suggests that the very high grade drilling intercepts, including: g/t Au from surface; g/t Au from surface, and; g/t Au from 4 metres depth have not yet been adequately tested with well targeted deeper drilling. The structural controls associated with the mineralisation appear complex but it is possible that previous RC drilling was largely ineffective due to the holes being drilled parallel to a series of stacked north-east trending quartz veins within an east west oriented mineralised corridor (see Figure 2). Figure 2: Baumgartens Reward historic drilling and interpreted structures on aeromagnetics The nature and distribution of the thick, high-grade RAB results suggests that good potential exists for the occurrence of shallow, irregular supergene-type gold mineralisation being developed over deeper, structurally-controlled primary gold mineralisation. Re-oriented angled aircore drilling will more effectively test this concept and test for the occurrence of north east trending veins. Drilling is planned to commence at the earliest opportunity following the completion of a heritage survey. In the south west corner of E52/2395 (see Figure 3), field checks of the 247ppb Au soil anomaly have confirmed the presence of a previously unrecognised significant shear zone with associated quartz veining that is prospective for gold mineralisation. Three rock chip samples were collected and submitted for assay and results are pending. Page 3
4 Figure 3: Marymia Project Geochemical sample locations and anomalies Forthcoming Exploration Programmes Field work planned for March and April includes: Drilling to test for the presence of primary mineralised structures which may be related to the historic high-grade supergene RAB drilling intersections at Baumgarten s Reward; Drilling programmes comprising approximately 90 vertical aircore holes to test key structural corridors. These areas are interpreted as being unsuitable for geochemical soil sampling due to the presence of transported sediment cover within drainage systems, most likely preferentially developed over the structural corridors. Drilling is planned to commence in April following heritage clearance surveys (see Figure 4 for completed and planned exploration programmes); Close spaced, infill soil sampling around significant geochemical anomalies after all assay results have been received; Detailed geological mapping over the remaining 56 square kilometres in the north of E52/2395 to better define lithological and structural controls on mineralisation (see Figure 4), and; Detailed mapping and rock chip sampling of a mineralised quartz vein that produced a rock chip assay result of 56.6g/t Au at the Baumgarten s South prospect. Page 4
5 Figure 4: Work programmes completed and planned Geological Setting Riedel s Marymia exploration licences hold potential for the discovery of mineral deposits including: Sedimentary-hosted copper deposits in Proterozoic Yerrida Basin stratigraphy which onlaps the Marymia Dome, and; Structurally controlled gold, copper and nickel deposits in the Baumgarten Greenstone Belt of the Archaean Marymia Inlier. Yerrida Basin Recent exploration results reported by Sipa and Ventnor highlighted the discovery of significant sedimentary-hosted (the Enigma Prospect) and structurally-controlled copper mineralisation (Thaduna and Green Dragon deposits) in Yerrida Group sedimentary rocks. Yerrida Group sedimentary rocks are present in the south-western portion of Riedel s tenements and in the eastern and northern areas prospective Proterozoic sedimentary rocks are also present, onlapping and marginal to the Marymia Inlier (see Figure 5). Since the recent DeGrussa, Enigma and Thaduna discoveries, the Proterozoic rock suite surrounding the Marymia Inlier has become increasingly important and Riedel s tenements may hold potential for both sediment-hosted copper and SEDEX-type lead-zinc-silver deposits. Important precursors and associations for the formation of significant sedimenthosted and/or SEDEX deposits which are apparent in Riedel s tenements include: Page 5
6 Proximity to major regional structures to provide fluid pathways; Proximity to long-lived, stable basement highs to focus fluid flow; Prospective host sedimentary rocks, and; Presence of igneous intrusive or deep-seated magmatic rocks to provide the heat source to drive long-lived hydrothermal systems. Additionally, the south-eastern part of E52/2394 overlies the Proterozoic Frere Formation which has been shown to host significant iron-ore mineralisation in other locations to the south and east of the tenement. Figure 5: Marymia Project - Regional Geological Map Baumgarten Greenstone Belt Riedel s exploration licences cover the entire Baumgarten Greenstone Belt ( BGB ). The greenstone belt forms the eastern domain of the Marymia Inlier, an Archaean granitegreenstone terrane which hosts numerous significant gold deposits and mines in the western portion (the Plutonic Well Greenstone Belt), including gold production of more than 4.7M ounces since production commenced in 1990 (see Figure 5). Previous exploration over the eastern BGB is relatively sparse due to the relatively poor geological understanding of the area and the presence of extensive, weathered cover sequences which may mask the location of important regional structures and any associated buried deposits. Notwithstanding, previous exploration drilling has returned significant gold and anomalous nickel intersections, demonstrating the strong prospectivity for structurallycontrolled gold, copper and nickel deposits below cover or in deeply weathered regions. Page 6
7 For further information please contact: Bruce Franzen Jeffrey Moore Executive Director Managing Director Riedel Resources Limited Riedel Resources Limited Tel: Tel: bruce.franzen@riedelresources.com.au j.moore@riedelresources.com.au Competent Person s Statement The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Ed Turner, who is a Member of The Australian Institute of Geoscientists. Mr Turner has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves. Mr Turner consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. About Riedel Resources Limited Riedel Resources Limited is an Australian-based exploration company established to explore for and develop mineral deposits. Since listing on ASX on 31 January 2011 the Company has successfully secured the services of a core team of experienced corporate and technical professionals, experienced in all facets of exploring and developing minerals deposits in Australia and overseas. Further information can be found on Riedel Resources at the Company s website Page 7
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