Quarterly Activities Report for the Period Ended 31 March 2013

Transcription

1 Quarterly Activities Report for the Period Ended 31 March 2013 HIGHLIGHTS Reconnaissance mapping and sampling program completed at the Deflector Extended Gold Project. 30 samples are being analysed for gold, silver and base metals. Assay results received for the recent stream sediment sampling program at the Heemskirk Tin Project. MinRex is continuing to evaluate exploration and corporate opportunities that will complement its existing exploration portfolio. At the end of the March Quarter the Company had available cash of $2.64 million. About MinRex MinRex has two principal projects. The Deflector Extended Gold Project is located to the northnortheast of Perth, within the Gullewa Greenstone Belt of the Murchison Goldfield. Deposits of goldcopper mineralisation in primary quartzsulphide, veinhosted deposits and secondary goldenriched surficial deposits in clays and laterites have both been mined in the Gullewa area. Gold was discovered at Gullewa in 1894 and historic production occurred in the region, from 1897 to 1942; during this period a reported total of 36,000 ounces of gold was produced from a total of 24,000 tonnes of ore at an overall grade of 46.3 g/t Au. Mining recommenced in 1994 and by 2003 a total of 530,000 tonnes of ore at a grade of 2.6g/t Au had resulted in the production of some 39,000 ounces of gold, mainly from open cut mining but with a small underground component. The Deflector Extended Gold Project lies along strike from the Deflector and Golden Stream open cuts and has historically received cursory regional exploration including geochemical surveys, rock chip sampling and RAB / AC drilling. Overlapping structural and soil geochemistry anomalies at Deflector Extended are the compelling exploration targets to be investigated by MinRex. Within the Heemskirk Tin Project in northwestern Tasmania, historical exploration is limited to nonsystematic prospecting activities and has been focussed on surface mineralisation. The most substantial exploration efforts have focussed on the Peripatetic Mine which consists of five adits, three shafts and numerous small open pits. Within the Project area numerous historical workings, for tin, tungsten and copper, present a number of opportunities to evaluate. Detailed mapping and geochemical sampling has commenced across the prospect. The location of the Company s projects is shown in Figure 1. 1

2 Figure 1: Plan showing the location of the Deflector Extended and Heemskirk Projects Deflector Extended The Deflector Extended Project (E59/1657) is located approximately 370 km NNE of Perth and approximately 50 km southwest of Yalgoo, within the Archean Gullewa Greenstone Belt, of the Murchison Terrane of Western Australia. To the southwest of the Project area, the Deflector Central and Deflector West open pits have been mined for goldcopper mineralisation in shear zones in metabasalt, while the Golden Stream Mine has been mined for gold in shear zonehosted quartz veins in metabasalt. MinRex s Deflector Extended Project area has historically been examined by regional soil geochemistry surveys, rock chip sampling and limited RAB / AC drilling. Overlapping structural and soil geochemistry anomalies at Deflector Extended have been delineated and now provide the priority exploration targets to be investigated by MinRex. Roughly, three quarters of the Project area is covered by transported soil, colluvium and alluvium which effectively conceal any mineralisation present. Figure 2: Typical Deflector Extended Project Terrain 2

3 Following a comprehensive review of all available data field reconnaissance programs have now commenced and these will be followed with a limited program of RAB / AC drilling. Figure 3: Typical Cover on Deflector Extended Tenement In the March 2013 Quarter, a reconnaissance and preliminary evaluation of the Project area was conducted by MinRex s consulting geologist Mr Kieron Munro. All parts of the lease were visited and observations made of the geomorphology, soil types and rock outcrops; a total of 30 rock chip samples were also collected for analysis. The rock chip samples are of vein quartz, cherty sediments, aplite and ironstone outcrops, all potentially hosts to gold mineralisation. This sampling will supplement the earlier pattern auger and other geochemical surveys, where the large spacing of the sample points may have missed narrow mineralised structures. Further similar programs will probably be completed, to better define and hone in on the target areas, prior to the drilling program. Figure 4 shows the sample locations while Table 1 shows the data relating to the rock chip sampling. Assay results are expected in the next quarter. Figure 4: Plan Showing Rock Chip Sampling Sites at Deflector Extended Project 3

4 In the district, mineralisation occurs in shear zones which are focussed on structures within greenstones, or in structures on the margins of greenstones (i.e. along internal sediment horizons or near the contact with granites). The main structural trend is southwestnortheast, but some deposits are on otherwise orientated structures. The previously completed exploration work is encouraging, especially the early geochemistry and RAB drilling that shows some clearly anomalous point values within the tenement. The more recent auger MAGLAG geochemistry also supports the earlier work and shows some elevated values for gold, copper, arsenic and nickel that roughly correspond with the earlier anomalous areas. Once the new assay results are received and a thorough surface examination been made of the tenement area, then further staged surface work can commence. It is expected that careful observation of the geology, structure, depth of weathering, previous geochemistry and RAB drill results will be used to deduce the most favourable sites for small, highlytargeted drill programs. Table 1 Locations of 30 Rock Chip Samples Collected at Deflector Extended Project Sample Date Location Elevation No. Easting Northing m DEK001 12/03/ ,985 6,832, DEK002 12/03/ ,959 6,832, DEK003 12/03/ ,926 6,832, DEK004 12/03/ ,894 6,832, DEK005 12/03/ ,860 6,832, DEK006 12/03/ ,790 6,832, DEK007 12/03/ ,787 6,832, DEK008 12/03/ ,730 6,832, DEK009 12/03/ ,727 6,832, DEK010 12/03/ ,667 6,832, DEK011 12/03/ ,638 6,832, DEK012 12/03/ ,574 6,831, DEK013 12/03/ ,554 6,831, DEK014 12/03/ ,540 6,831, DEK015 12/03/ ,441 6,831, DEK016 12/03/ ,341 6,831, DEK017 12/03/ ,280 6,831, DEK018 12/03/ ,252 6,831, DEK019 12/03/ ,009 6,832, DEK020 12/03/ ,985 6,832, DEK021 12/03/ ,932 6,832, DEK022 13/03/ ,584 6,832,

5 DEK023 13/03/ ,584 6,832, DEK024 13/03/ ,584 6,832, DEK025 13/03/ ,102 6,832, DEK028 13/03/ ,086 6,832, DEK029 13/03/ ,318 6,832, DEK033 14/03/ ,356 6,832, DEK034 14/03/ ,528 6,830, DEK035 14/03/ ,262 6,830, Heemskirk Tin Project The Heemskirk Tin Project (E18/2011) covers 44 km² and is located in northwestern Tasmania and centred approximately 16 km WNW of Zeehan town. The area is thought to be highly prospective for tin mineralisation, but may also host copper, lead, zinc and bismuth mineralisation as sulphides. Preliminary work at Heemskirk in 2012 included interpretation by consultants, Southern Mineral Exploration Geophysics (SMEG), of airborne aeromagnetic and radiometric surveys, a review of previous sampling and mapping programs and analysis of other data sets. This work identified several areas for further followup sampling. Work completed in the December 2012 Quarter included the collection by Ron Gregory Prospecting of thirty (30) stream sediment samples (Figure 5) from around the historic McGuiness Tin Mine. The samples were transported from Tasmania to Perth, Western Australia for analysis by Bureau Veritas for the elements Au, Ag, W, Sn, Mo and As. Figure 5: Plan showing stream sediment sampling sites around the Historic McGuiness Mine. The assay results for the stream sediment sampling work have been received in the March 5

6 Quarter. Figure 5 shows the sample locations while Table 2 shows the full results of the stream sediment sampling. No exceptional results were received from this work, the best being 118 ppm tin (Sn) and 155 ppm tungsten (W). Low gold (5.4 ppb), silver (1 ppm) and molybdenum (1.2 ppm) values are not considered anomalous. This work will now be reviewed, along with the earlier sampling with the view of devising a followon sampling and exploration program. The Heemskirk Tin Project area is large (44 km²) and there remain many areas with old workings and known tin anomalism that are yet to be tested. Further field programs, and possibly geophysics, will be planned to hone in on potential mineralisation. Table 2 Full Assay Results for 30 Stream Sediment Samples Collected at the Heemskirk Project Sample Location Au (AR) Ag As Mo Sn W No. Easting Northing ppb ppm ppm ppm ppm ppm ,721 5,366, ,729 5,366, ,665 5,366, ,287 5,366, ,294 5,366, ,229 5,366, ,472 5,366, ,570 5,366, ,724 5,365, ,820 5,365, ,739 5,365, ,860 5,365, ,894 5,365, ,265 5,365, ,266 5,365, ,172 5,365, ,303 5,365, ,315 5,365, ,359 5,365, ,418 5,365, ,361 5,365, ,923 5,365, ,956 5,365, ,140 5,365, ,252 5,364, ,214 5,364, ,335 5,364, ,443 5,364, ,788 5,364, ,789 5,364,

7 Followup Exploration Activities: Exploration activities planned by the Company over the next Quarter for both its project areas in Western Australia and Tasmania are given below. Deflector Extended The Company is currently awaiting the results of the recent sampling program (30 rock chip samples). Further field work will then be completed to better delineate potential targets prior to potentially (results being positive enough) a drilling and sampling program on structural and geochemical targets within the Deflector Extended Project. Heemskirk Further assessment of the results received to date will be made prior to planning follow up field sampling. It is considered that the prospectivity of the area warrants further work and a followup sampling program will be designed to further test the Heemskirk Project area. Corporate As at 31 March 2013, the Company had available cash of $2.64 million. The Company is also continuing to assess a broad range of exploration and corporate opportunities that have the potential to complement the existing tenement portfolio. During the quarter, Mr Pierre Malherbe resigned from position of Company Secretary. Mr Simon Durack, who is currently a non executive director and is ably qualified to undertake this role, has replaced Mr Malherbe as Company Secretary. For further information, please contact: Richard Procter NonExecutive Chairman T: F: info@minrex.com.au Competent Persons Statement: The information in this announcement that relates to Exploration Results is based on information compiled by Mr Kieron Munro, Consulting Geologist. Mr Munro is employed as a consultant for MinRex and is also a Member of the Australian Institute of Geoscientists and has sufficient experience which 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Munro consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 7

8 Appendix 5B Mining exploration entity quarterly report Appendix 5B Rule 5.3 Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10 Name of entity MINREX RESOURCES NL ABN Quarter ended ( current quarter ) MARCH 2013 Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from product sales and related debtors Current quarter Year to date ( 9. months) 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration (9) (94) (61) (349) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) 9 28 Net Operating Cash Flows (75) (315) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (75) (315) + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 1

9 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (75) (315) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Net financing cash flows Net increase (decrease) in cash held (75) (315) 1.20 Cash at beginning of quarter/year to date 2,716 2, Exchange rate adjustments to item Cash at end of quarter 2,641 2,641 Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Current quarter $A' Aggregate amount of payments to the parties included in item Aggregate amount of loans to the parties included in item Explanation necessary for an understanding of the transactions Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest + See chapter 19 for defined terms. Appendix 5B Page 2 17/12/2010

10 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. Amount available Amount used 3.1 Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next quarter 4.1 Exploration and evaluation Development 4.3 Production 4.4 Administration 60 Total 180 Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current quarter Previous quarter 5.1 Cash on hand and at bank Deposits at call 2,639 2, Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter (item 1.22) 2,641 2,716 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased Tenement reference Nature of interest (note (2)) Interest at beginning of quarter Interest at end of quarter + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 3

11 Appendix 5B Mining exploration entity quarterly report Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. 7.1 Preference + securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buybacks Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (totals only) Total number Number quoted Issue price per security (see note 3) (cents) 17,500,001 17,500,000 17,500, cents Amount paid up per security (see note 3) (cents) Exercise price Expiry date 1 cent + See chapter 19 for defined terms. Appendix 5B Page 4 17/12/2010

12 Appendix 5B Mining exploration entity quarterly report 7.12 Unsecured notes (totals only) Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here:... Date:...24 April Director Print name: Simon Durack... Notes 1 The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. == == == == == + See chapter 19 for defined terms. 17/12/2010 Appendix 5B Page 5