For personal use only

Size: px

Start display at page:

Download "For personal use only"

Brent Walker
5 years ago
Views:

ASX Code: HDG Fully paid s hares: 74,854,029 Announcement to the Australian Stock Exchange 7 th June 2011 Unlisted options: 7,000,000 Increased Exploration Target of 1.4 to 1.

1 ASX Code: HDG Fully paid s hares: 74,854,029 Announcement to the Australian Stock Exchange 7 th June 2011 Unlisted options: 7,000,000 Increased Exploration Target of 1.4 to 1.6 Billion Tonnes of Coal for Moiyabana, Botswana. BOARD ME MBERS Peter Mullens Chairman Mark Major Managing Director Nathan McMahon Non-Exec Director Bryan Dixon Non-Exec Director C O R P O RA T E D I RE C T O RY Company secretary - Lisa Wynne Stock exchange listing: Australian Securities Exchange Code: HDG, HDGO Solicitors: Cardinals Ground Floor, 57 Havelock Street West Perth WA 6005 Auditors MGI Perth Level 7, The Quadrant 1 William Street Perth WA 600 Share registry Advanced Share Registry Services 110 Stirling Highway Nedlands WA 6009 Telephone (08) Facsimile (08) HEAD OFFICE Level 2, 38 Richardson St West Perth, WA 6005 Telephone : (08) Facsimile : (08) info@hodgesresources.com.au In situ coal exploration target estimate increases to between 1,400Mt and 1,650Mt 660Mt with potential for being amenable to open cast mining methods The deposit is amenable to a wide variety of bulk open cut mining methods Hodges Resources Ltd (ASX: HDG and Hodges ) is pleased to announce that the company has received the results of an independent geological and technical review of the Moiyabana Coal Project ( Moiyabana ) located in east central Botswana. Hodges has an option to acquire up to 90% of Moiyabana (PL93/2008 and PL94/2007). The independent technical review was completed by Runge Limited ( Runge ) as part of the Moiyabana Project Due Diligence process and designed principally to focus on reviewing the quantity and quality of the previously estimated coal exploration target and its mining potential. Among the key conclusions from the independent technical review, the total estimated in situ coal resource has increased materially from 800Mt-1,300Mt to the upgraded range of 1,400Mt-1,650Mt of in situ coal within the Exploration Target. This new Exploration Target is at a range of 35% to 45% raw ash based on a relative density of 1.6 and within an area for which there is reasonable confidence in modelling limits. 1

2 Figure 1 Location of Hodges Coal Projects in Botswana. In addition to the increase in the total estimated target resource, significantly, of the total in-situ coal there is an estimated 660 Mt with potential for open cast mining methods at present. Hodges Resource Managing Director, Mark Major said the company was extremely pleased to have received such a positive initial review of the Moiyabana Coal Project. The results of the independent review allow for a very confident outlook for the future of this potentially substantial coal project. We are now looking forward to undertaking the required exploration and definition studies to prove-up this target, delivering a higher level resource within the year. In this regard, we expect to announce a major drilling campaign in the immediate-term, Mr Major said. 2

3 The independent technical review was based on available historical exploration data collected over the prospecting license areas, which was then built into a structural database and modeled using Gemcom Minex software. This model was then used to help assist in the analysis of the deposit and to gain a better understanding of the current dataset limitations. KEY CONCLUSIONS FROM THE INDEPENDENT REVIEW Various deposit characteristics were reported and examined during the study including; yields, energy, ash content, sulphur content, seam thicknesses and vertical strip ratios. The key conclusions returned from the Independent Geological Review were as follows: There is an estimated 1,400Mt to 1,650Mt of in situ coal within the Exploration Target at a range of 35% to 45% raw ash based on a relative density of 1.6 and within an area for which there is reasonable confidence in modelling limits. Of the total in-situ coal there is an estimated 660 Mt with potential for open cast mining methods at present. The coal seams are shallow dipping and appear to be consistent throughout the lease area. No major faulting or displacements are currently evident from the data available; however there is the possibility that further drilling may delineate further structure. The structure of the deposit makes it amenable to a wide variety of bulk open cut mining methods. The coal is relatively homogenous over a large area. Depending on further coal studies, coal processing has the potential to be simple and low cost. The coal product is relatively low in sulphur averaging between 0.7% - 1.0% at a relative density of 1.6. KEY POINTS FOR FUTURE EXPLORATION AND DEVELOPMENT WORK The following strengths have been identified for the project: The deposit is structurally simple which will assist with lower mining costs. There is a large area of low strip-ratio coal as a potential open cut mining resource. The deposit s structure makes it amenable to a wide variety of bulk open cut mining methods. The coal is relatively homogenous over a large area. Depending on further studies, coal processing has the potential to be simple and low cost. The coal product is low in sulphur. Current drilling and test results provide a good basis for expansion of exploration. Botswana is politically stable and amenable to investment. 3

4 Figure 2 Moiyabana project with location of historical holes. The following are the main opportunities identified: There is potential for an open pit mining operation at low strip ratios for coal with higher than average yields Further exploration will increase confidence in the coal resource estimate A drilling program could raise the deposit to a JORC standard Resource and Reserve estimate Further exploration will improve knowledge of raw and product coal qualities, allowing for economic optimisation Future coal sampling could test for coking properties, particularly in the upper seams The relatively unexplored middle and upper seams have the potential to add value to the project. 4

5 FURTHER DETAILS: EXPLORATION TARGET MODELLING AND ESTIMATION A JORC Code compliant Exploration Target estimate was calculated using the results of 3 historical cored boreholes and the 13 recently completed diamond drill holes by Jaquar Ventures. Geologically it was found that three main seam correlations can be recognised within the deposit. These are, in stratigraphic order from top down, the MCZ, LCZ1 and LCZ2 seams. Historically, the upper MCZ seam has been of low economic value, and thus no quality data was available for modelling. The lower seams (LCZ1 and LCZ2) have been targeted by the most recent drilling and were correlated simplistically over the model and worked into a single unit for each seam. A confidence limit of 5000m was set for the respective observation points and the intersections of these were contoured to enable an area of influence to be defined. This was then limited by the licence boundaries and was found to cover an area approximately 140km 2. Table 1: Exploration Target Estimate Summary SEAM COAL AREA Km 2 COAL VOLUME M.m 3 INSITU (Mt) SEAM THICK (m) MCZ RAW ASH % LCZ LCZ TOTAL *All tonnages estimates based on 1.6RD A summary of coal quality characteristics for the LCZ1 and LCZ2seams at relative density of 1.8 is presented within tables 2 and 3. No bore hole quality data for Seam MCZ was available and it has only been modelled for seam thickness. Due to the relatively sparse cover of borehole data over the deposit, seam interpolations were utilized for quality and thickness modelling, especially with regard to the MCZ in which 5 borehole seam interpolations were made. LCZ1 was only interpolated in one borehole. Table 2: Quality of LCZ1 seam at 1.8 RD SEAM LCZ1 AT 1.8 RD SEAM (m) ASH CV (MJ/Kg) SULPHUR YIELD MIN MAX AVERAGE

6 Table 3: Quality of LCZ2 seam at 1.8 RD SEAM LCZ2 AT 1.8 RD SEAM (m) ASH CV (MJ/Kg) SULPHUR YIELD MIN MAX AVERAGE The stated exploration target above and the coal quality must be regarded as a provisional indication of likely tonnages and qualities only. Hodges intends to upgrade this target to a JORC inferred Resource within the next 6 months. The exploration target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. Mark Major Managing Director For Further Information Please contact Mark Major should you have any queries on this announcement. Telephone: (+618) info@hodgesresources.com.au For Media Enquiries Please contact Fortbridge on Bill Kemmery Luke Dean DISCLAIMER This announcement has been prepared relying on information provided by the vender. The report on the project was completed by Runge limited a recognised geological consultant group with extensive experience in coal. At the time of drafting this announcement, Hodges has not independently verified the information regarding the above mentioned project. Hodges has no reason to believe the information is not accurate and intends to verify the information whilst conducting due diligence on the projects. It is uncertain that following evaluation and/or further exploration that the exploration target define will be able to be reported as a resource or reserve in accordance with the JORC Code. 6

7 Runge Limited abn Level Ann Street Brisbane Qld 4000 GPO Box 2774 Brisbane Qld 4001 Telephone Facsimile runge@runge.com.au Website C o m p e t e n t P e r s o n s C o n s e n t F o r m Pursuant to the requirements of ASX Listing Rule 5.6 and clause 8 of the 2004 JORC Code (Written Consent Statement) Report Description Increased Exploration Target of 1.4 to 1.6 Billion Tonnes of Coal for Moiyabana, Botswana (Press Release, 06 June 2011,6:18pm) (insert name or heading of report to be publicly released) ( Report ) Hodges Resources Ltd (insert name of company releasing the Report) Moiyabana (Botswana) (insert name of the deposit to which the Report refers) If there is insufficient space, complete the following sheet and sign it in the same manner as this original sheet. 06 th June 2011 (Date of Report) I, Gordon Naidoo, confirm that: (insert full name) Statement I have read and understood the requirements of the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( 2004 JORC Code ). I am a Competent Person as defined by the 2004 JORC Code, having five years experience which is relevant to the style of mineralisation and type of deposit described in the Report, and to the activity for which I am accepting responsibility. I am a Member or Fellow of The Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists or a Recognised Overseas Professional Organisation ( ROPO ) included in a list promulgated by ASX from time to time. I have reviewed the Report to which this Consent Statement applies.

8 I am a full time employee of Runge Limited (insert company name) OR I am a consultant working for Runge Limited (insert company name) and have been engaged by Hodges Resources Pty Ltd (insert company name) to prepare the documentation for the Jaquar Ventures, Moijabana Exploration Target (insert deposit name) on which the Report is based, for the period April 2011 (insert date of resource/reserve statement) I verify that the Report is based on and fairly and accurately reflects in the form and context in which it appears, the information in my supporting documentation relating to Exploration Results (select as appropriate). CONSENT I consent to the release of the Report and this Consent Statement by the directors of: Hodges Resources Ltd (insert reporting company name) Signature of Competent Person: Date: 06/06/2011 Australasian Institute of Mining & Metallurgy Professional Membership: Membership Number: Signature of Witness: Print Witness Name and Residence (eg. Town/Suburb):

JV PROJECT UPDATE JORC COAL RESOURCE

29 May 2012 ASX Announcement JV PROJECT UPDATE JORC COAL RESOURCE Dynasty Metals Australia (ASX:DMA) holds a minority interest of approximately 8.65 in a joint venture company with a subsidiary of Tiaro