Planning advanced for diamond drill testing on the Kingsley target.

Transcription

1 Hampton Hill Mining NL ABN Quarterly Report Quarter ended 31 December 2006 HIGHLIGHTS Apollo Hill Gold Project Second phase of drilling successfully extended the mineralised system a further 70 metres to the north and down plunge at Apollo Hill. Weebacarry Bore Gold Project Scout RAB and aircore drilling returned some encouraging results including 15 metres of 0.8 grams per tonne gold from 15 metres down hole (including 5 metres of 2.1 grams per tonne) and a second intercept of 5 metres of 1.4 grams per tonne gold 45 metres down hole. Glenview Base Metal Project An 800 metre diamond drill hole was completed providing a necessary platform for a planned extensive down hole geophysical program, although only minor zinc and copper mineralization was intersected. Weld Range Iron Ore Project A detailed review of previous drilling of the Western Lenses has indicated that they have only limited potential and more drilling will be required to quantify their significance. Exploration focus will shift to the Eastern lenses. Wheatley Base Metal Project Planning advanced for diamond drill testing on the Kingsley target. Level 2, 9 Havelock Street Telephone: info@hamptonhill.com.au West Perth WA 6005 Facsimile: Website:

2 Apollo Hill Gold Project As announced in the last quarter, the first drilling program at Apollo Hill, carried out under the new joint venture with Apex Minerals NL, extended the known mineralization and revealed encouraging grades and widths. Three parallel trends have been outlined, namely the Western, Main and Eastern zones (see Figure 1) which remain open along strike and down dip. During the quarter, 2,620 metres of diamond drilling was completed with 9 further holes. This drilling focused on the Main Zone and has successfully extended the mineralised system a further 70 metres to the north and down plunge, albeit at a lower apparent grade than that reported from previous drilling. Key results from these holes are summarised below and are shown on the attached cross sections (figures 2,3 and 4) and long projection (Figure 5): g/t gold from 215 metres and g/t gold from 236 metres in AAHD16, drilled on section 17680N, some 70 metres north of all previous drilling on section 17610N g/t gold from metres and g/t gold from metres in AAHD15, drilled on section 17680N, some 120 metres down dip of AAHD16 (above) and 70 metres north of the previous intersection of g/t gold in AAHD10 on section 17610N g/t gold from 40.7 metres, and g/t gold from 65 metres, within a broad lower grade zone of g/t gold from 15.5 metres and g/t gold from 178 metres and g/t gold from 276 metres within a further broad lower grade zone of g/t gold from 128 metres in AAHD23, which was drilled down interpreted dip to check internal continuity. Where this hole remained within the alteration zone it successfully confirmed the presence of mineralisation, with several higher grade zones being associated with more intense quartz veining. It should be noted that these results are based on standard 50 gram fire assays, which may not necessarily reflect the true grade of samples in which coarse grained gold is present, as is the case at Apollo Hill. Consequently key samples will be reassayed using the 1000 gram Leachwell technique which is most suited to this style of mineralisation. Final assays will be reported separately if they are materially different to the preliminary assays quoted here. Preliminary threedimensional modelling of the Main Zone mineralisation shows that it remains open down plunge to the north, but on northernmost drilling sections is partially affected by a footwall shear zone which appears to have smeared and perhaps truncated the mineralisation. If this is the case, the mineralisation may be offset to some degree. Exploration Program The next stage of work at Apollo Hill will comprise detailed 3D modelling of the mineralisation and the fault which is interpreted to fault out the northern part of the mineralisation to determine optimum locations for further extensional drilling. In parallel with this, reconnaissance drilling will commence during the first quarter of 2007 to test additional targets identified beneath the transported cover along strike. Background Apex is manager of the joint venture and is earning a 51% interest. The project covers an area of 280 square kilometres, situated approximately 50 kilometres southeast of Leonora in the North Eastern Goldfields of Western Australia. Major gold mines in the region include Sons of Gwalia and Tarmoola to the northwest, Carosue Dam to the southeast, and in the adjoining Laverton area, Granny Smith, Wallaby and Sunrise Dam. The project straddles a major shear zone which is a component of the Keith Kilkenny Fault system. This shear zone is largely concealed beneath transported overburden associated with the Lake Raeside drainage system, and previous surface geochemical sampling and shallow RAB drilling has consequently been of limited effectiveness. Deeper drilling by previous explorers has largely focused on the only locality where this shear zone is exposed at surface, Apollo Hill itself, and also on a nearby parallel trend termed the Western trend. Hampton Hill Mining NL Quarterly Report December

3 Apollo Hill Gold Project (Continued) Figure 1: Apollo Hill Gold Project Hampton Hill Mining NL Quarterly Report December

4 Apollo Hill Gold Project (Continued) Figure 2: Schematic cross section 17540N, Main zone. Hampton Hill Mining NL Quarterly Report December

5 Apollo Hill Gold Project (Continued) Figure 3: Schematic cross section 17610N, Main zone Hampton Hill Mining NL Quarterly Report December

6 Apollo Hill Gold Project (Continued) Figure 4: Schematic cross section 17680N, Main zone Hampton Hill Mining NL Quarterly Report December

7 Apollo Hill Gold Project (Continued) Figure 5: Schematic long projection, Main Zone Wheatley Base Metal Project Hampton shares this joint venture equally with a subsidiary of Teck Cominco Ltd of Canada and is well advanced with negotiations for a new joint venture arrangement with Teck Cominco that will allow Hampton to assume management and commence planned diamond drilling. The project comprises four groups of tenements in joint venture with or under option from third parties. The tenements are situated between the townships of Manjimup and Greenbushes in the south west of Western Australia. The project covers sequences thought to be highly prospective for base metals and previous work has defined several aerial electromagnetic anomalies which have not as yet been fully tested. Of particular interest is the Kingsley anomaly where previous diamond drilling has confirmed the presence of zinc mineralization associated with massive sulphides. Hampton has planned a 6 hole diamond drill program to evaluate this target that it hopes to implement during the next quarter. Hampton Hill Mining NL Quarterly Report December

8 Weebacarry Bore Gold Project This project together with the Ryansville project is in joint venture with Aurora Minerals Ltd as managers. Hampton has a 49% free carry for the first $1 million of expenditure. The project covers the central part of a regional northeasttrending shear zone between the abandoned Big Bell gold mine (3.9 million oz gold production) in the south and the Meekatharra gold mines (2.4 million oz gold production) to the north. The shear zone is known locally as the Jungar Bore Shear Zone ( JBSZ ). As reported last week, a scout drilling program has been completed including 1,704 metres (20 holes) of RAB drilling and 2,101 metres (28 holes) of aircore drilling on 6 lines at 250 metres to 800 metres spacing between lines. All holes were drilled at 60 0 towards the southeast (135 0 ). The holes ranged in depth from 45 to 141 metres with an average depth of 79 metres. The majority of the holes successfully drilled the thick saprolite zone and reached their target depth of blade refusal. The focus of the exploration was the projected northerly extension of the Miss Jane mineralization (see Figure 6). The drilling returned encouraging intersections from two holes, AWAC007 and AWRB104. AWAC007 returned two significant intercepts, the first being 15 metres of 0.8 g/t gold from 15 metres down hole (including 5 metres of 2.1 g/t gold) and the second being 5 metres of 1.4 g/t gold from 45 metres down hole. AWRB104 returned 5 metres of 0.15 g/t gold from 70 metres down hole. All of the holes from this program were scoop/grab sampled as 5 metre composite samples and submitted to Ultra Trace Laboratories in Perth for lowlevel gold and base metal analysis. The results will be assessed in the weeks ahead prior to further exploration planning. Figure 6: Weebacarry Bore Gold Project Hampton Hill Mining NL Quarterly Report December

9 Glenview Base Metal Project During the quarter Hampton continued with base metal exploration of its 100% owned tenements where no royalty is payable to Midwest. The Company completed an 801 metre diamond drill hole which intersected combinations of copper, lead and zinc mineralisation in veins and disseminations accompanied by moderate to strong alteration mainly over 170 metres downhole from 536 metres. The geology is similar in type and age to that of the Golden Grove volcanogenic massive base metal sulphide deposits, located 200 kilometres to the south west. A major down hole geophysical survey to look for off hole conductors from this recent and other selected diamond drill holes of the Glenview Project is planned to start in late January Weld Range Iron Ore Project Midwest Corporation Limited spent the last quarter reviewing the results of the 17 RC drill holes which were drilled in the previous quarter. This drilling which undertook a first pass test of 5 of the 6 known iron ore lenses in the western portion of the Hampton s Weld Range tenements intersected some high grade iron mineralisation. However, a preliminary review of the drilling indicates that there is only potential for a limited tonnage of mineable iron ore in these lenses. There is still good potential for iron ore in the remaining four known untested lenses within Hampton s tenements as shown in Figure 7. Three of these lenses are grouped together in the eastern portion of the Weld Range where previous drilling has revealed the presence of more extensive high grade hematite alteration than on the western portion of the range. Two of the lenses (W20 and W6) extend discontinuously over about 2 kilometres of strike with portions of both lenses extending into ground held by Midwest as shown in Figure 7. Drilling on these lenses and the western lens (W17) is planned to be undertaken when access is available. Figure 7: Weld Range Iron Ore Project Hampton Hill Mining NL Quarterly Report December

10 Leinster Nickel Project Breakaway Resources NL is the manager of the joint venture and Hampton has an 18.73% free carried interest for $500,000 of exploration expenditure. Breakaway completed 94 RAB holes and 26 aircore holes for a total of 4,510 metres of drilling which infilled to 400 metre line spacing the bedrock geochemical testing of the prospective Weebo ultramafic trend and also tested some magnetic anomalies. Preliminary assessment of results suggests the program has not located any substantial nickel pathfinder anomalism. A detailed interpretation is underway to fully assess the results. Manyingee North Uranium Project Last year Hampton entered into an option with private interests giving Hampton the right to purchase two exploration licenses, which cover 445 square kilometres in the Manyingee North area located about 30 kilometres southeast of Onslow. These tenements, which have recently been granted, are located 40 kilometres north of Paladin Resources Ltd s Manyingee deposit. The data from a helicopter borne EM geophysical survey completed for Hampton was used together with aeromagnetic data, ground based gravity data and previous exploration drilling results to define a series of buried river channels within a north west trending, fault bounded depression which is 9 kilometres wide. Of particular interest is a magnetic and gravity high, the Sea Dragon Prospect, which appears to obstruct the northwest trend of the channels and may have acted as a roll front drop out point for uranium. Changes in the direction of buried channels appear to be important in the deposition of uranium roll front deposits at Manyingee. Native Title heritage surveying was postponed due to extensive bushfires and inclement weather and is now planned to be completed after the wet season. Hampton intends to carry out a RAB/aircore drilling program aimed at confirming the presence of the buried channels and locating within the channels the oxide/reduction interface where any uranium mineralization, if present, can be anticipated. The timing of the drilling will also be dependent on rig availability and it is anticipated that drilling will take place during the second quarter of Ryansville Gold and Iron Ore Project Aeromagnetic data suggest that the northern portion of the Ryansville project includes 4 kilometres of strike of banded iron formation in the Weld Range that is partly masked by colluvium. The banded iron formation hosts iron ore lenses in other parts of the Weld Range in tenements held by Midwest and Hampton. Aurora Minerals Limited, as manager, plans to RC drill test this portion of the Ryansville project for iron ore commencing when a rig is available. Other Projects No fieldwork was carried out on the Capricorn base metal project or the Sylvania and Remarkable Hill uranium projects in the reporting period. During the quarter Hampton decided not to extend the option on the Griffins Find gold project after the Company s last drilling program failed to intersect the lode 120 metres down dip from the old open cut mine. This negative result severely constrained the resource potential in the vicinity of the open pit which is now considered unlikely to support a mining operation on a stand alone basis. The Polelle gold and base metal project tenements were surrendered after reconnaissance sampling returned no encouraging results. Hampton Hill Mining NL Quarterly Report December

11 COMPLIANCE STATEMENTS Apollo Hill Gold Project The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Dr. Mark Bennett, a Member of the Australasian Institute of Mining and Metallurgy, who has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Bennett consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Weebacarry Gold Project The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves from the Weebacarry Gold Project is based on information compiled by Dr Robert S Taylor, a Member of The Institute of Materials, Minerals and Mining, and Mr Garry P O Hara, a corporate member of the Australasian Institute of Mining and Metallurgy. Robert Taylor and Garry O Hara are both executive directors of Aurora Minerals Limited and consult to the Company through their respective consulting companies Able Kids Pty Ltd and Anketell Pty Ltd and consent to the inclusion in this report of the matters based on information in the form and context in which it appears. Weld Range Iron Ore Project The information in the above report that relates to Exploration Results from the Weld Range Iron Ore Project is based on information compiled by Mr John Warner, who is a Member of the Australian Institute of Geoscientists. Mr Warner is an employee of the Sinosteel Midwest JV and has sufficient experience which is relevant to the style of mineralisation and the types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Warner consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Other Projects Other than in the portions of this report that relate to the Apollo Hill Gold Project, Weebacarry Gold Project and the Weld Range Iron Ore Project, the information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Wilson Forte who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Forte is a fulltime employee of the Company 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 Forte consents to the inclusion in the report of the matters based on his information in the form and context in which they appear. Hampton Hill Mining NL Quarterly Report December

12 Appendix 5B Mining exploration entity quarterly report Appendix 5B Rule 5.3 Mining exploration entity quarterly report Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001. Name of entity HAMPTON HILL MINING NL ABN Quarter ended ( current quarter ) December 2006 Consolidated statement of cash flows Cash flows related to operating activities Current quarter $A 000 Year to date (6 months) $A Receipts from product sales and related debtors 1.2 Payments for (a) Exploration & evaluation (b) Development (c) Production (d) Administration (134) (71) (270) (116) 1.3 Dividends received 1.4 Interest and other items of a similar nature received Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material): Receipts 6 10 Net Operating Cash Flows (171) (328) 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) Payment Net investing cash flows 1.13 Total operating and investing cash flows (carried forward) (171) (328) Appendix 5B Page 1

13 Appendix 5B Mining exploration entity quarterly report 1.13 Total operating and investing cash flows (brought forward) (171) (328) 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 1 1 Net increase (decrease) in cash held (170) (327) 1.20 Cash at beginning of quarter/year to date 1,654 1, Exchange rate adjustments to item Cash at end of quarter 1,484 1,484 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 The proceeds from the issue of shares arise from the issue of 500,000 ordinary partly paid shares issued at 20 cents per share paid to 0.1 cents per share to a director of the Company following shareholder approval at the AGM 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 Appendix 5B Page 2

14 Appendix 5B Mining exploration entity quarterly report Financing facilities available Add notes as necessary for an understanding of the position. 3.1 Loan facilities 3.2 Credit standby arrangements Amount available $A 000 Amount used $A 000 Nil Nil Estimated cash outflows for next quarter 4.1 Exploration and evaluation 4.2 Development $A Total 350 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 $A 000 Previous quarter $A Cash on hand and at bank Deposits at call Bank overdraft (13) 5.4 Term Deposit 5.5 Other (Bank accepted bills) 1,243 1,482 Total: cash at end of quarter (item 1.22) 1,484 1,654 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced or lapsed Tenement reference E51/0979 M36/0505 M36/0506 Nature of interest (note (2)) Relinquished Relinquished Relinquished Interest at beginning of quarter 100% 18.73% 18.73% Interest at end of quarter 0% 0% 0% 6.2 Interests in mining tenements acquired or increased NIL Appendix 5B Page 3

15 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 112,473, , , , , , Changes during quarter (a) Increases through issues Total number Number quoted Issue price per security (see note 3) (cents) 112,473, cents 20 cents 25 cents 20 cents 20 cents Amount paid up per security (see note 3) (cents) Fully Paid Part Paid to 0.1 cent Part Paid to 0.1 cent Part Paid to 0.1 cent Part Paid to 0.1 cent Part Paid to 0.1 cent 500, cents Part Paid to 0.1 cent (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) 7.12 Unsecured notes (totals only) Exercise price Expiry date Appendix 5B Page 4

16 Appendix 5B Mining exploration entity quarterly report 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 4). 2 This statement does give a true and fair view of the matters disclosed. Peter Ruttledge Sign here: (Company secretary) Date: 29 January 2007 Print name: Peter Ruttledge 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 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Accounting 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. == == == == == Appendix 5B Page 5