Dingo Range Nickel Project Western Australia

Transcription

1 14 April 2014 Dingo Range Nickel Project Western Australia Background to the project Prior to Inca Minerals Limited (the Company or Inca ) acquiring its flagship Chanape Porphyry project in Peru, the Company had assembled a large portfolio of projects prospective for nickel in Western Australia. Following the Peruvian acquisitions in March 2012 the Company reviewed all its original projects, resulting in retention of the Dingo Range Project as being highly prospective for nickel and gold. Inca s 100% owned Dingo Range Nickel Project (comprising E37/0975, E37/1124, E37/1352, E371377, E37/1380, E37/1407, E37/1421, E37/1447, E37/1663, P53/1573, P53/1574) covers the southern third of the Dingo Range-Mt Fisher Greenstone Belt, an area which has risen to prominence in recent years through the progressive release of headline nickel exploration results by Rox Resources (at their Mount Fisher Nickel Project) and through increased news-flow from Cullen Resources (at their Eureka Project). In late 2012 Rox Resources discovered nickel at their Mt Fisher Project, which is adjacent to Inca s Dingo Range Nickel Project, and were subsequently rewarded with their maiden Ni resource of 34,600t Ni at the Camelwood Prospect 2.2%Ni) (as announced by Rox 3 October 2013). On 10 January 2014, Rox Resources announced positive Ni assay results from two new discoveries, Musket and Cannonball Prospects. Rox concluded that there is strong regional potential for nickel, a view equally shared by Inca. Nickel exploration in Western Australia has been heightened in recent years by two significant discoveries, the Sirius discovery at Nova and the Rox discovery at Camelwood (recently reinforced by high nickel concentrate grades (14 17%) in metallurgical testing on samples from Camelwood reported in Rox s ASX announcement 8 April While Inca s principal focus remains the development of its porphyry deposit at Chanape in Peru, the Company recognises the tremendous potential of Dingo Range for nickel mineralisation a view with heightened expectancy in light of Rox s discovery in the same area. Cullen s Eureka Project Mount Keith Nickel Province containing 5.37Mt Ni metal Rox Resources Mt Fisher Nickel Project Inca s Dingo Range Nickel Project Figure 1: Regional Geology plan showing the location of the Company s Dingo Range Nickel Project, Rox Resources Mt Fisher Nickel Project and Cullen s Eureka Project. Page 1

2 Figure 2: Nickel mines and prospects of the Eastern Goldfields on a background of 1VD RTP magnetics. Inca s Dingo Range Nickel Project is shown in yellow outline; Rox s Mt Fisher Project is shown in magenta outline (Figure provided by G Osborne). Recent Developments at Dingo Range Commencement of Exploration In December 2013, the Company commissioned Grant Rocky Osborne to undertake detailed literature research with the purpose of critically assessing past exploration conducted in the broader Dingo Range Project area. Rocky was instrumental in the discovery the Rocky s Reward Ni deposit, located north of the Perseverance nickel mine (seen in Figure 2). A number of high priority nickel targets have been generated (Figure 3) and exploration is scheduled to commence at Dingo Range in April / May The principal target, referred to as the Jackal Prospect, is approximately 10km long and corresponds to an outcropping ultramafic with coincident strong Ni-Cu-Zn ratios and a surficial sample peak Ni value of 3,033ppm (with modest Cu [41ppm] and very low Zn [28ppm]). It occurs in an area of intense folding as seen in magnetic images (Figure 2 & 3a) which draws important analogies with other regional and global nickel occurrences (Figure 3b and 3c). The Jackal Prospect is located within a sequence of thick tholeiitic basalt flows and dolerites, interspersed by chlorite schists, talc schists, interflow sediments and minor komatiitic volcanics. This sequence is believed to be a chronostratigraphic equivalent [occurring at the same time within the geological sequence] of the Ni-bearing Windarra greenstone. The stratigraphic relationship of the komatiitic ultramafic overlying the sulphidic banded iron formation is known to host nickel sulphide mineralisation at Windarra, while exhalative sulphide bodies occur in the footwall to the nickel sulphide mineralisation at Leinster. The ultramafic at the Jackal Prospect has anomalous geochemistry (Ni, PGE, Au and S) and represents a strong target for nickel sulphide mineralisation that has hitherto been under-explored. Page 2

3 3a) 3b) Jackal High Priority Nickel Targets Dingo 3c) Figure 3a): RTP Image of the southern tenements comprising Inca s Dingo Range Nickel Project. High priority nickel targets have been recognised in association with folded ultramafic units that occur throughout the project area. Figure 3b): Plan-view of Rocky s Reward nickel deposit, showing the folded Ni ore body which is repeated by virtue of complex multiple phase folding. Figure 3c): Cross section view of the Thompson nickel deposit (in Canada) showing a similarly complexly folded Ni ore body. The Thompson Nickel Deposit contains approximately 700Mt of Ni metal 2.8% Ni). (Figures provided by G. Osborne). Page 3

4 The Company s initial exploration program on the Dingo Range Ni targets includes low cost detailed geological mapping and rock-chip/soil sampling. Follow-up work would involve geophysics and drill testing and, whilst the Chanape Project remains the principal focus of Inca, the Company intends to unlock the tremendous potential of Ni sulphide at the Dingo Range Project. Inca s Flagship Chanape Porphyry Project Drilling is set to resume at the Company s flagship Chanape Porphyry Project in Peru. The hydrothermal clay mapping analysis of the second and third deep holes (CH-DDH008 and CH-DDH011 respectively) is complete. Careful interpretation of the clay assemblages over the next week will assist in the design of the immediate porphyry drilling program, which will investigate a large 750m x 750m SP anomaly, into which three deep holes have all intersected porphyry mineralisation on the southern edge of the anomaly. Ross Brown Managing Director Office: +61 (0) address: info@incaminerals.com.au Competent Person Statements The information in this report that relates primarily to nickel mineralisation hosted by ultramafic sequences in Western Australia and to a lesser extent gold, copper, silver, zinc epithermal and porphyry style mineralisation for the Chanape Project, located in Peru, The information was compiled by Mr Ross Brown BSc (Hons), MAusIMM, SEG, MAICD Managing Director, Inca Minerals Limited, who is a Member of the Australian Institute of Mining and Metallurgy. He has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Brown is a full time employee of Inca Minerals Limited and consents to the report being issued in the form and context in which it appears. Some of the information in this report may relate to previously released reports/data regarding nickel mineralisation hosted by ultramafic sequences in Western Australia and subsequently prepared and first disclosed under the JORC Code It has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported, and is based on the information compiled by Mr Ross Brown BSc (Hons), MAusIMM, SEG, MAICD Managing Director, Inca Minerals Limited, who is a Member of the Australian Institute of Mining and Metallurgy. He has sufficient experience, which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Brown is a full time employee of Inca Minerals Limited and consents to the report being issued in the form and context in which it appears. Page 4

5 Appendix The following information is provided to comply with the JORC Code (2012) requirements for the reporting previous exploration results on Western Australian tenements. Section 1 Sampling Techniques and Data CRITERIA JORC CODE EXPLANATION COMMENTARY Sampling techniques Drilling techniques Drill sample recovery Logging Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or hand-held XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (e.g. reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised to produce a 30g charge for fire assay ). In other cases more explanation may be required, such as where there is a coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been geologically and geo-technically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. The total length and percentage of the relevant This ASX announcement refers to past exploration conducted within the tenement area as listed on Page 1. A single sample is specifically referred to as a peak value from previous auger drilling. The auger drilling is a past program (information of which was obtained from archival data-bases). The single reference to a Ni peak value is one of an unknown number of samples collected from archival data-bases. No significant mineralisation has been referred to in this announcement. A single peak value should be seen in the context as demonstrating that Ni occurs in the sampled unit. No representations of grade or deposit size have been made. The drilling technique used in the generation of the single peak value sample was Auger Drilling. The auger drilling is a past program (information of which was obtained from archival databases). archival data-bases. archival data-bases. Not applicable: no significant mineralisation is announced. archival data-bases. archival data-bases. Page 5

6 CRITERIA JORC CODE EXPLANATION COMMENTARY Logging cont intersections logged. Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests Verification of sampling and assaying If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all subsampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, hand-held XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, date verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Not applicable no core sample results are reported in this announcement. No significant mineralisation announced. Not applicable no twin drill data was made part of this announcement. No significant mineralisation announced. announcement is from archival databases and no significant mineralisation announcement. Page 6

7 CRITERIA JORC CODE EXPLANATION COMMENTARY Verification of sampling and assaying cont Location of data points Data spacing and distribution Orientation of data in relation to geological structure Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. Not applicable No drill data was referred to in this announcement. Maps reproduced as figures in this announcement are drawn to Datum GDA94, UTM Zone 51S. Maps reproduced as figures in this announcement are drawn to Datum GDA94, UTM Zone 51S. No representations of extensions, extrapolations or otherwise continuity of grade are made in this announcement. announcement is from archival databases and no significant mineralisation was made part of this announcement. announcement is from archival databases and no significant mineralisation was made part of this announcement. Sample security The measures taken to ensure sample security. Audits or reviews The results of any audits or reviews of sampling techniques and data. Page 7

8 Section 2 Reporting of Exploration Results CRITERIA JORC CODE EXPLANATION COMMENTARY Mineral tenement and land tenure status Exploration done by other parties Geology Drill hole information Data aggregation methods Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the land tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Acknowledgement and appraisal of exploration by other parties. Deposit type, geological setting and style of mineralisation. A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: Easting and northing of the drill hole collar Elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar. Dip and azimuth of the hole. Down hole length and interception depth. Hole length. If the exclusion of this information is justified on the basis that the information is not material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical Tenement Type: Western Australian Exploration Licence and Prospecting Licence. E37/0975, E37/1124, E37/1352, E371377, E37/1380, E37/1407, E37/1421, E37/1447, E37/1663, P53/1573, P53/1574 Ownership: 100% Inca Minerals. With further reference to above and Table 1, the exploration Licences and Prospecting Licences are in good standing at the time of writing. archival data-bases. The Company makes clear that archival data was not necessarily acquired by the Company. The project area, covered by tenements listed in Table 1, is approximately 400km 2 and comprises granites and greenstone belt rocks of the Kurnalpi Terrane. This project area is considered prospective for Mt Keith-Windara style nickel sulphide mineralisation. Not applicable no drill data was made part of this announcement. Not applicable no drill data was made part of this announcement. Not applicable no weighting averages nor maximum/minimum truncations were applied. Not applicable no weighting averages nor maximum/minimum truncations were applied. No significant mineralisation was made part of this announcement. Page 8

9 CRITERIA JORC CODE EXPLANATION COMMENTARY Data aggregation methods cont Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting Other substantive exploration data Further work examples of such aggregations shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. down hole length, true width not known ). Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not limited to a plan view of drill hole collar locations and appropriate sectional vie ws. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Not applicable no equivalents were made part of this announcement. Not applicable - no significant mineralisation was made part of this announcement. Maps, at appropriate scales, are made part of this announcement to illustrate the position of tenements, regional geology and prospectivityl of this project. The Company believes the ASX announcement provides a balanced report as to the Ni potential of the project area. This announcement uses archival data that was assessed by a suitably qualified, competent person, considered a leading commentator in Ni mineralisation. Observations pertain to prospectivity and not to mineralisation. By nature of early phase exploration, further work is necessary to better understand the mineralisation systems that appear characteristic of this area. Maps, at appropriate scales, are made part of this announcement to illustrate the position of the tenements, regional geology and prospective targets. ***** Page 9