Minotaur Exploration Limited ASX: MEP. Iron Oxide Copper-Gold Exploration : Cloncurry and Gawler Craton. A. P. Belperio

Transcription

1 Minotaur Exploration Limited ASX: MEP Iron Oxide Copper-Gold Exploration : Cloncurry and Gawler Craton A. P. Belperio SA Exploration and Mining Conference Adelaide, 7 December

2 An Active Exploration Platform 2

3 Fe-Cu-Au Deposit Styles PACE Discovery Drilling Highlights Proof of conceptual mineralisation models and identification of potential for new deposit types DPY9-42 Minotaur Exploration Limited, Mount Woods Iron sulphide copper gold (ISCG), eastern Gawler Craton. Minotaur Exploration discovered ISCG mineralisation, which, significantly, opens up a new exploration opportunities in South Australia. 3

4 Fe-Cu-Au Deposit Styles IOCG s whether magnetite or haematite dominated, are part of a larger family of Fe-Cu-Au deposit styles that include, where host strata/fluids are significantly reduced, an Iron Sulphide (ISCG) style where Fe is present largely as pyrrhotite. The ISCG style is well represented in Cloncurry and clearly requires a significantly different exploration toolbox. It has been surprisingly neglected in SA despite being recognised as far back as 2000 by Douglas Haynes. IOCG Deposit Examples Mineralisation Form of Iron Targeting Styles Methodology Ironstone Hosted Osborne (part), Starra, Peko, Geko Cu-Au-Bi Mag, Po, Hm Magnetics, Gravity Haematite Breccia Olympic Dam, Prominent Hill Cu-Au-U-REE Hm Gravity, IP Magnetite Breccia Ernest Henry, Candelaria, Salobo Cu-Au Mag, Bio Magnetics, Gravity Magnetite-Apatite Kiruna, Acropolis minor Mag Magnetics Iron Sulphide Eloise, Kulthor, Mt Dore, Osborne (part), Cormorant, Artemis, Iris Cu-Au-Co-Zn-Pb-Ag Po, Py Electrical Conductivity Cobaltiferous Nico Au-Bi-Co-Cu Mag, Hm, Bio Magnetics, Radiometrics Common Features: Bimodal igneous activity, mantle tapping structures, extensive regional Na and K alteration and widespread Fe metasomatism 4

5 The Cover Problem Ordinarily, exploration for a massive sulphide style deposit would not be a great challenge given advances being made in airborne and ground EM acquisition systems. But both Cloncurry and the Gawler Craton share a particularly problematic attribute a widespread blanket of Mesozoic marine shale cover (Bulldog Shale) that acts a barrier to effective geochemical and geophysical signal transmission. So although Po is one of the most conductive minerals, our ability to see through the highly reduced cover sequence and the ubiquitous occurrence of graphite in reduced carbonaceous terranes are major impediments. 5

6 CH6 CH7 CH8 CH9 CH10 (1.23 msec) CH11 CH12 CH13 CH14 CH15 (3.03 msec) CH16 CH17 CH18 CH19 CH20 (7.82 msec) CH21 CH22 CH23 CH24 CH25 (19.02 msec) CH26 CH27 CH28 CH29 CH30 (44.63) CH31 CH32 CH33 CH34 CH35 (102.23) CH36 CH37 ISCG Deposit Styles - Cloncurry Minotaur s work on ISCG styles began at the Cormorant Prospect in 2008 with : Recognition that mineralisation was associated with abundant pyrrhotite highly conductive, but only very weakly magnetic With m of ultra-conductive Mesozoic cover, research into the most useful EM systems was required and continues today. Line N SIROTEM Data 1995 CH1 CH2 Line N CH CH4 CH5 CH6 CH CH8 8 CH9 10 CH10 CH11 CH Asinh TEM 8 6 CH13 CH14 CH15 CH16 Asinh TEM CH17 CH18 CH CH20 2 CH21 CH22 CH Easting (m) CH24 CH25 CH26 CH Easting (m) No SIROTEM anomaly CH28 Good SQUIDEM anomaly 6

7 ISCG Deposit Styles - Cormorant Minotaur s Cormorant Prospect work from 2008 Regional tracking and drill testing confirmed +15km, +20m thick tabular iron sulphide system, massive & breccia pyrrhotite, persistently mineralised. An epigenetic Fe system as large as Prominent Hill In addition to some areas of conventional magnetite alteration, by far the largest part of the mineralising system was attributed to an ISCG style within a reduced host rock terrane Weakly magnetic, highly conductive, structurally controlled, linear Ground EM techniques were honed and sharpened to the point where bedrock conductors could be confidently interpreted through up to 200m of conductive cover. Drill hole intercepts included: MIN04 : 0.2% Cu, 0.02% Co from 160m MIN07 : 0.1% Cu, 0.03 g/t Au from 186m MIN10 : 0.21% Cu, 0.02% Co from 414m Cormorant 7

8 ISCG Deposit Styles Eloise AEM Minotaur s next move into ISCG exploration was the area surrounding the Eloise mine in This was driven by: Recognition of Eloise as a pre-eminent example of a high grade ISCG style, with abundant prospects in the surrounding reduced terrane Eloise is pyrrhotite - chalcopyrite dominated with some 3.5% Cu, 0.93 g/t Au mined since 1996 Ability to test regional airborne (AEM) screening as a more effective exploration tool over large areas of thinner cover versus slower, more expensive ground EM over areas of deeper cover. AEM area selection Thin Cover (<50m) SQUIDEM area selection Thick Cover (50 250m) 8

9 ISCG Deposit Styles - Artemis This led to immediate success (the Artemis discovery in 2014) in regions with <50m of cover through a combination of: Regional AEM survey as a cost effective regional screening tool Effective line by line processing and prioritisation of targets Ground truthing of selected targets and integration with other available data Ground EM follow-up Drill testing Artemis 9

10 ISCG Deposit Styles - Artemis Artemis is: Artemis is a blind deposit of late fracture fill sulphide breccia (Fe-Cu-Co-Zn-Pb-Ag ) Limited alteration halo or host rock brecciation Steep, tabular body, structurally controlled No significant magnetic or gravity expression Highly responsive to Down-hole and Across-hole EM Drillhole EL14D09, 166.6m: coarse, massive sulphides including chalcopyrite (yellow), sphalerite (black), pyrrhotite (bronze) and calcite (white to pale grey) 1m assay: 2.7% Cu, 1.5 g/t Au, 6.7% Zn, 1.1% Pb, 111 g/t Ag, 36% Fe and 1240 ppm Co 10

11 ISCG Deposit Styles - Artemis Typical intercepts from Artemis drilling # Drillhole From To Interval(m) Cu% Au g/t Co % Zn % EL14D EL14D EL14D EL14D EL14D EL14D EL14D EL14D EL14D EL14D EL14D EL14D # Data previously released in Minotaur ASX Releases dated 31 July 2014, 15 August 2014, 29 August 2014, 20 November 2014, 11 December 2014, 8 January 2015 and MEP Quarterly Report for period ended 31 December

12 ISCG Deposit Styles Levuka Shear Zone From , under a new Minotaur-OZ Minerals JV, the focus area became the Levuka Shear Zone, as this is a known ISCG fluid conduit AEM area selection Thin Cover (<50m) hosting the Eloise Copper Mine (+10Mt production at 3.5% Cu + 0.9g/t Au FMR Investments is owner and operator), The deepened cover over the shear corridor (80 to 200m) necessitated a costlier ground-based screening methodology Systematic EM Surveying of an Entire Prospective Structural Corridor, the Levuka Shear Zone. SQUIDEM area selection Thick Cover (50 250m) 12

13 ISCG Deposit Styles L.S.Z. Iris-Electra In 2016, the focus was the Levuka Shear Zone north of the Source: Channel 35 X component, Plan view, ground EM image Eloise mine. Regional and selected infill EM lines using the most advanced EM sensors available resulted in delineation of Iris South, Iris North and Electra conductive targets over a 2.7km conductive target trend. All drillholes intersected veinlet and breccia hosted pyrrhotite with chalcopyrite highly reminiscent of early intercepts at what is now the Eloise mine. Intercepts included 0.47% Cu and 0.08g/t Au from 166m in EL16D05, and 0.73% Cu, 0.61g/t Au from 168m in EL16D08 Eloise Deposit Iris North EL16D04 13

14 ISCG Deposit Styles L.S.Z. Jericho In 2017, the focus has been south of the Eloise mine with ground EM completed along 17km of Levuka Shear Field data highlighted the large Jericho conductive target less than 5km of Eloise mine Diamond drilling over the past 2 months (10 scout holes upsized from 4) designed to test 3 high priority, shallow EM targets Jericho: 8 scout holes - multiple intersections of copper sulphides across 3 parallel horizons Arlington: 1 scout hole - showed encouraging sulphides; to be followed up St Louis: 1 scout hole - showed encouraging sulphides; to be followed up Priority EM drill targets to south of Eloise mine; EM image is channel 30 X- component, over RTP1VD magnetics 14

15 ISCG Deposit Styles Jericho Jericho target comprises multiple conductive plates with cumulative 8km strike extent Jericho drill holes and EM conductors and accentuated magnetics Two holes drilled in October 2017 at Jericho successfully intersected 3 parallel EM conductors representing 1.4km of strike First assay results (hole D06) confirmed high grade coppergold mineralisation, including: 4.23% Cu and 0.42g/t Au 3.83% Cu and 1.73g/t Au Drill campaign of 10 scout holes completed 7 December 2017, final assays awaited 15

16 ISCG Deposit Styles Jericho Pyrrhotite-Chalcopyrite intersected in all 3 horizons along 300m of strike Central Cross-section at Jericho prospect showing holes D06, D08 and D14 Three conductors at Jericho: Western (J1), Central (J2) and Eastern (J3) conductors First Hole D06 confirmed Po-Cu-Au in all three conductor positions, including a stunning 2.42% Cu and 0.71 g/t Au from 435m at the J2 conductor Three drill sections 150m apart Assays are pending for other holes Photo: Massive chalcopyrite and pyrrhotite from hole EL17D06 at 461m (J2 plate) 16

17 ISCG Deposit Styles Jericho Chalcopyrite intersected 150m south (of initial collars D06, D08) Southern Cross-section at Jericho prospect showing holes D09 and D12 D12 progress report : copper sulphides intersected over 25.8m at J1 and 2.8m at J2 Assays imminent for hole D09 and pending for D12 17

18 ISCG Deposit Styles Jericho Chalcopyrite intersected 150m north (of initial collars D06, D08) Northern Cross-section at Jericho prospect showing holes D10 and D13 D13 progress report : copper sulphides intersected over 2 separate 14m intervals around J1 and over 9m proximal to J2 Assays pending for holes D10 and D13 Clearly Jericho is a large, multi-horizon ISCG system 18

19 ISCG Exploration on the Gawler Craton SA Exploration toolbox dominated by magnetics and gravity (IOCG model). Can/should we also be exploring for ISCG s? Mt Woods selected as appropriate terrane (IOCG fluids, structural conduits, reduced host rocks) Alliance with Oz Minerals: Minotaur generates targets from Oz database, jointly drill test jointly agreed targets Persistent evidence of ISCG alteration in database. Numerous targets selected together with followup ground geophysics Late drill tested 4 regional sites, including Taurus and Jupiter (with PACE drilling support from SA Government) Prominent Hill Jupiter Taurus 19

20 ISCG Exploration on the Gawler Craton That work confirmed pyrrhotite-associated mineralisation (ISCG style) at Taurus and Jupiter Jupiter: ISCG style of pyrrhotite-matrix breccia synchronous with late brittle faults. Mineralised intercepts 0.21% Cu from 225m Jupiter DD16JUP m Po Cpybreccia Taurus: ISCG style pyrrhotite-matrix breccia and veins, synchronous with late brittle faults overprints an earlier IOCG style magnetite-pyrite-chalcopyrite event. Mineralised intercepts include: 0.41% Cu from 242m Achieved Proof-of-Concept that ISCG style mineralisation occurs in the Mt Woods area For 2017, the Minotaur-Oz Minerals alliance focus then became the Skylark Shear Zone which hosts these two prospects. Taurus DD16TUR m Po-Cpybreccia 20

21 ISCG Exploration on the Gawler Craton Systematic EM survey was then initiated along the Skylark Shear Complex - unfortunately, a significant part of the shear zone complex could not be surveyed due to aboriginal heritage restrictions Drill testing 3 selected targets, Maverick, Nexus and Bellatrix East, Nov-Dec, results expected shortly Location of EM anomalies along the Skylark Shear Zone. Background image is RTP magnetics; EM image within the red outline is gridded Z component, channel 30 data 21

22 ISCG Exploration on the Gawler Craton So in conclusion, we can confidently predict that high grade, pyrrhotitechalcopyrite ISCG deposit styles should exist on the Gawler Craton in Such deposits will be: Along structural corridors that have acted as conduits for IOCG fluids In magnetically quiet, reduced terranes (carbonaceous and graphitic sequences) Tabular bodies following fault structures and rheological contacts With iron largely in the form of pyrrhotite may be completely non magnetic They will present no regional gravity anomalism Strong ground EM anomalies There will be negative impacts of graphitic responses Prominent Hill Ernest Henry So explorers should adapt their exploration models and toolboxes accordingly In addition, we strongly recommend the Geological Survey consider precompetitive but targeted electrical geophysical data collection (in consultation with industry) as one way of accelerating exploration for high grade ISCG style deposits in the Gawler Craton Taurus Eloise 22

23 ISCG Qld Collaborative Exploration Initiative Notification received of Minotaur s successful grant application through Queensland Geological Survey for up to 70% support for a large scale SYSTEMATIC EM SURVEY OF A PROSPECTIVE STRUCTURAL CORRIDOR between Osborne and Cannington using advanced SQUID EM sensors. Based on forward modelling of +20 Mt targets, m cover, an optimum line spacing vs cost configuration of 1km spaced regional lines with near-real time data processing and infill of ranked targets 23

24 Acknowledgements and Disclaimer ACKNOWLEDGEMENTS Disclaimer The Minotaur technical team under Exploration Manager Glen Little OZ Minerals JV partnership at Eloise and Exploration Alliance at Mt Woods PACE Drilling support for Proof of Concept drill testing of Mt Woods targets ARC Linkage Project through University of South Australia Source to spectrum: Finding deposits beyond the Fe-oxide Cu-Au envelope which will look deeper into the academic reasoning This presentation has been prepared by the management of Minotaur Exploration Limited ( Minotaur, ASX: MEP) for the general benefit of analysts, brokers and investors and does not constitute specific advice to any particular party or persons. Information herein is based on publicly available information, internally developed data and other sources. Where an opinion, projection or forward looking statement is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations are made or implied as to origin, validity, accuracy, completeness, currency or reliability of the information. Minotaur specifically disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where Minotaur expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such projected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from projected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and government regulatory outcomes. MEP disclaims any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast. Competent Person s Statement Information in this presentation that relates to exploration results for Minotaur Exploration Ltd is based on information compiled by Dr. A. P. Belperio, who is a Director and full-time employee of the Company and a Fellow of the Australian Institute of Mining and Metallurgy. Dr. Belperio has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity that he has 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 (JORC Code). Dr. Belperio consents to inclusion of this information in the form and context in which it appears. 24