For personal use only

Transcription

1 ASX Announcement ASX Code: ARM Date: 28 October 2016 Aurora Minerals Group of Companies Diversified minerals exploration via direct and indirect interests Predictive Discovery Limited (ASX: PDI) -39.6% - Gold Exploration / Development in Burkina Faso Peninsula Mines Limited (ASX: PSM) 27.7% - Graphite, Lithium, Gold, Zinc-Silver Exploration in South Korea Aurora Western Australian Exploration 100% - Base metals, iron and gold exploration Contact Details Principal & Registered Office Suite 2, Level 2 20 Kings Park Road West Perth WA 6005 Martin Pyle Managing Director Tel: Karen Oswald Media and Investor Relations Tel: Ken Banks Investor Relations Tel: Website QUARTERLY ACTIVITIES REPORT Ending 30 September 2016 Aurora Minerals Limited ASX: ARM ("Aurora" or "the Company") and its subsidiary and associate companies conduct exploration across three continents with a focus on South Korea (Peninsula Mines Limited), West Africa (Predictive Discovery Limited) and Western Australia. Highlights: Peninsula Mines Limited (Peninsula) Post quarter end, $1.68M capital raising successfully completed D1 Ubeong Zinc-Silver Skarn sampling proves high-grade mineralisation from historical dump D2 Osu channel sampling and diamond drilling planned to test high grade gold target D3 Stream sediment sample results defined anomalous lithium zones at Tonggo and Daehyeon where further surface sampling is underway D4 Graphite petrography confirmed jumbo and very large flakes in two South Korean projects. Metallurgy is underway D5 Jon Dugdale appointed as CEO to lead exploration of the diversified portfolio D6 Predictive Discovery Limited (Predictive) Post quarter end, $3.0M capital raising successfully completed P7 Excellent RC results in drilling at Boundiali Permit, Côte D Ivoire, extended the mineralised zone to 1.2km P1,2,3 New soil anomalies and high grade rock chip samples were identified by Toro Gold at the Beriaboukro Permit in Côte D Ivoire P4 Corporate Aurora holds a 27.7% interest in Peninsula subsequent to that Company s successful Placement in October 2016, 39.6% holding in Predictive following Predictive s capital raising. Aurora subscribing to both raising Aurora cash at bank ~$4.6M (parent) and ~$5.5M (consolidated group) at end of quarter Value of cash and investments as at 30 September 2016 ~$16.2M (~13.8c/share)

2 Aurora's subsidiary and associate company investments and market valuations as at 30 September 2016 are shown in Table 1, below. Table 1: Aurora Minerals Group Investments Aurora Minerals Group Investments Shares (M) % Interest Price Mkt Val $M Predictive Discovery % $0.014 $8.0 Peninsula Mines % $0.024 $3.3 other $0.3 Subtotal $11.6 NTA c/share Total value of investments $ Cash as at 30 September2016 $ Total NTA $ Nb: Holdings in Peninsula and Predictive changed following quarter end (see below). Peninsula Mines Limited (Aurora 32%, reducing to 27.7% following Placement) Aurora retains a 27.7% interest in Peninsula Mines Limited (Peninsula) following the completion of that Company s successful Placement in early October Aurora continues to support Peninsula s diversified exploration programmes in South Korea, an economically advanced but mineralogically underexplored jurisdiction. To this end, Aurora has agreed to commit a further $250,000 to Peninsula as part of the Placement, and will receive an additional 11,904,761 shares in Peninsula subject to Peninsula shareholderholder approval at the Annual General Meeting to be held on 29 November At that pointaurora s interest will increase to 29.3%. Peninsula carries out exploration in South Korea through its wholly-owned South Korean subsidiary, Suyeon Mining Co. Ltd. (SMCL) which holds tenure over ground prospective for: Lithium at Daehyeon and Dongsugok Projects Zinc-silver at Ubeong Project Graphite at Wolmyeong, Daewon and Yongwon Projects Gold at Osu Project and Molybdenum-tungsten at Daehwa Project. Figure 1, below shows the distribution of the projects across the Korean Peninsula.

3 Figure 1: Location Plan of Peninsula s South Korean Projects Lithium Projects Peninsula s lithium projects Daehyeon and Dongsugok, are located in the east of the country. Pegmatites in the vicinity were historically mined for tin and the Boam Lithium Mine, which consists of small, artisanal, underground workings, remains active. The map of regional geochemical stream sampling conducted by KIGAM (Korea Institute of Geoscience and Mineral Resources) showed elevated lithium In the vicinity of Boam Mine, which coincided with geologically mapped pegmatites. SMCL secured the available ground to conduct detailed stream sediment sampling in May and June A1 The 339 stream sediment samples collected included an orientation survey to define the lithium signature in the vicinity of Boam Mine, where ore samples assayed 2.49% and 1.52% LiO 2. The sampling programme generated two major anomalies in line with regional trends: - NE-SW at Tonggo (Dongsugok Project, see Figure 2, below), where up to 219ppm Li was recorded; and - N-S along the ridge of large pegmatites mapped at Daehyeon, where 124ppm Li was recorded. D4 Follow-up surface sampling is underway over these two anomalies, consisting of rock chip, stream sediment and ridgeand-spur soil sampling. Ground geophysical surveys are also being considered. D4

4 Figure 2: Tonggo Lithium Anomaly in Stream Sediments from Dongsugok Project D4 Figure 3: Daehyeon Lithium Anomaly in Stream Sediments from N-S Trending Pegmatite Corridor

5 Ubeong Zinc Silver Project Peninsula s stream sediment sampling for lithium generated zinc and arsenic anomalism at the Ubeong prospect. Follow-up reconnaissance work encountered extensive historical mine workings over a limestone skarn where massive sulphide mineralisation was sampled in outcrop and mine dumps. The following assay results confirmed the high-grade nature of the mineralisation: D2 Historical Adit S#UR3001: 5.41% Zn, 200 g/t Ag, 2.31% Pb Historical Adit S#UR3002: 12.7% Zn, 669 g/t Ag, 19.1% Pb Main Zinc Mine S#UR3011: 25.6% Zn, 215 g/t Ag, 1.14% Pb D2 The limestone unit has been mapped over 12km, from the active Kumho Zinc Mine in the west, to Ubeong in the east. SMCL has now secured 10km of this strike under tenement applications. Follow-up work is underway in the form of rock chip, stream sediment and ridge-and-spur soil sampling. A ground magnetic survey is under consideration as a way to define the magnetite alteration signature seen in the aeromagnetic imagery. Figure 4: Ubeong Zinc-Silver Project tenure, sample locations and limestone/skarn outcrop over regional TMI-RTP aeromagnetic imagery D2 Osu High-Grade Gold Project Historical mining on the flanks of Mount Pal Gong in the central south of the Korean Peninsula targeted high-grade gold and silver, as evidenced by the assay results from sampling the historical dump material, with Au up to 15.5g/t; Ag up to 579g/t; Cu up to 1.4%; Pb up to 3.3%; and Zn up to 2.4%. The high-grade nature of the dumps, the 1.6km strike of historical adits and the promising surface outcrops and regional geophysical signature provideencouragement to warrant the 1,000m diamond drilling programme planned for , pending approvals. D3 Figure 5, below, illustrates the proposed drilling program in relation to the underground workings. The Google Earth image clearly shows the mine dumps. Surface channel sampling is underway to transect the multiple veins outcropping in a 30 to 40m wide corridor, which were likely to have been the target of the historical underground mining.

6 Figure 5: Osu historical adits (yellow), mapped structures (red) and planned drill holes (blue) on Google Earth image D3 Rock chip Results 18.5 g/t Au, 318 g/t Ag 9.17 g/t Au, 509 g/t Ag 20.3 g/t Au, 153 g/t Ag Drilling, 1 3 holes planned Graphite Projects Townend Mineralogy Laboratory was commissioned to analyse the petrography of ore samples from Yongwon and Daewon Graphite Projects in South Korea. This work confirmed that coarse, oriented graphite flakes dominate, with jumbo size flakes (>300µm) at Yongwon (see Figure 6, below) and very large flakes at Daewon (see Figure 7, below). With ore grades of up to 18% and 24.8% Total Graphitic Carbon (TGC) respectively, the petrography provides further encouragement of the viability of these two graphite projects, where channel sampling is underway and metallurgical test work is in progress. D5 Figure 6: Photomicrograph of jumbo graphite flakes (>300um) from Yongwon Graphite Project D5

7 Figure 7: Photomicrograph of large flakes (>180um) from the Daewon Graphite Project D5 At Wolmyeong Graphite Project, where assays generated up to 76% TGC, petrography has confirmed two phases of graphite in the metamorphosed coal seams. Microcrystalline graphite dominates ( graphite 1 in Figure 8, below) with rims of coarser flake graphite remobilised by metamorphosis ( graphite 2 in Figure 8, below). Metallurgical test work, currently underway, suggests that separating the two graphite morphologies may not be viable, in which case the ore would be best suited for use in the steel and foundry industries, as it was historically. Nevertheless, Peninsula is investigating high grade zones in the ore, such as in fold hinges and near to intrusive contact margins. D5 Figure 8: Photomicrograph of the two phases of graphite at Wolmyeong, Graphite 1 microcrystalline and Graphite 2 remobilised flake D5

8 Predictive Discovery (Aurora 41.7% reducing to 39.6% following Capital Raising) Aurora retains a 39.6% interest in Predictive Discovery Limited (Predictive) following the completion of that Company s successful capital raising in early October 2016 P7. Aurora continues to support Predictive s diversified exploration programmes in Burkina Faso and Cote D Ivoire, and agreed to take a placement of 75 million shares ($750,000) in Predictive in the capital raising. Côte D Ivoire Predictive has a significant presence in Côte D Ivoire, holding key tenure across the fertile Birimian age greenstone belts of that country (dark red/brown permits in Figure 9, below). Predictive s joint venture agreement with UK-based Toro Gold Limited has enabled the rapid advancement of these projects due to Toro having maintained an aggressive exploration program, generating significant results for the JV during the Quarter. Predictive has been actively expanding its gold tenure during 2016, through acquisition and JV agreement. Thus, the ground operated under the Toro JV has doubled to include tenure held by Gold Ivoire Minerals (GIV) SARL an Ivorian company with which Predictive has established a joint venture P5 (blue projects in Figure 9, below). Additionally, Predictive is farming into the Bobosso Project (held by XMI SARL) through active exploration P6 (red permits in Figure 9, below). Figure 9: Location of PDI s Côte D Ivoire exploration permits operated under JV with XMI, GIV and Toro Gold Limited

9 Boundiali Permit During the Quarter, Toro Gold have been progressively generating results from the completed RC drilling at the Nyangboue Prospect including: - 9m at 7.9g/t Au from 99m P1-7m at 3.8g/t Au from 33m P1-20m at 10.5g/t Au from 38m P2-10m at 3.3g/t Au from 1m P2 Panning of RC chips generated visible gold in some holes. P1 The RC drilling programme totalled 5,496m for 92 holes, drilled 40m apart on eight east-west orientated lines, spaced at 160m or 320m (See Figure 10, below). Despite the wide spacing, the drilling has defined a clear mineralised shear zone extending for at least 1.2km and open to the south, with good line to line correlation and further parallel zones likely. Assay results from 15 drill holes are awaited. P3 Mr Paul Roberts, Predictive s Managing Director said: The Nyangboue prospect has a number of positive characteristics including (1) gold intercepts from surface, (2) individual high grades in most intercepts, suggesting that a plus 2g/t Au bulk grade is a strong possibility, (3) abundant visible gold in higher grade intervals suggesting simple metallurgy and (4) initial indications of good continuity in the controlling structure(s). There are also several other good prospects on the permit which are, as yet, untested by drilling. P3 Figure 10: RC drill hole collar locations on a gold-in-soil geochemical contour plan superimposed on satellite imagery in the southern 2km portion of the Nyangboue Prospect. The surface outline of gold mineralisation is shown in red P3

10 Beriaboukro Permit The Beriaboukro Permit was secured through JV in March 2016 as an extension to the Kokoumbo Permit, where Toro Gold were carrying out diamond drilling during the last Quarter. A1 The Beriaboukro Permit is located just north of the active Bonikro Mine (Newcrest) along the same major NNE trending structure. The fertile greenstone belt also accommodates the Agbaou Mine (Endeavour). P3 During this Quarter, the initial phase of surface sampling completed by Toro Gold on the Beriaboukro Permit generated high gold grades in rock chips including 726g/t Au and 13.1g/t Au at the site of artisanal workings. Three new gold-insoil anomalies were also identified on a widely spaced (800m x 200m) reconnaissance soil sampling grid (see Figure 11, below). With such promising initial results, the Beriaboukro Permit will continue to be actively explored by Toro as part of the Kokoumbo Permit, commencing with infill soil sampling in Q4, P4 Figure 11: Location of soil samples and gold-in-soil anomalies at Beriaboukro Permit

11 Aurora Minerals Western Australian Projects Limited exploration activities were undertaken during the quarter. Corporate Aurora cash at bank ~$4.6M (parent) and ~$5.5M (consolidated group) at end of quarter. As advised in the June Quarterly Activities Report, the Company continues to reduce its holding in Golden Rim Resources Limited, selling 154,400,000 shares in Golden Rim during the quarter, retaining 27.3 million shares in that company at the end of the September quarter. Martin Pyle Managing Director +61(0) Competent Person Statement The information in this report that relates to the exploration results and Mineral Resources of Aurora, Peninsula and Predictive is summarised from publicly available reports as released to the ASX of the respective companies. The results are duly referenced in the text of this report and the source documents listed below. The exploration results reported herein relating to Predictive Discovery Limited are based on information compiled by Mr Paul Roberts (Fellow of the Australian Institute of Geoscientists). Mr Roberts is a full-time employee of that company and has sufficient experience relevant to the style of mineralisation and type of deposits being considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Roberts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Exploration Results for Peninsula Mines Limited is based on information compiled by Mr Daniel Noonan, a Member of the Australian Institute of Mining and Metallurgy. Mr Noonan is employed as a consultant. Mr Noonan 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Noonan consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. All the information in this release that is based on information compiled prior to 1 December 2013 was produced under the reporting directions as set out in the 2004 ed. JORC code. All subsequent releases have been compiled under the guidelines for reporting as set down under the 2012ed. JORC code. The information summarised herein has not changed materially from the greater detail that was originally disclosed in earlier public releases and which has been duly referenced in this release. The Company confirms that it is not aware of any new information or data that materially affects the information included in this report.

12 APPENDIX 1 Western Australian Mineral Tenement Information (as at 30 September 2016) PROJECT TENEMENT PERCENT HOLDING TITLE HOLDER/APPLICANT JOINT VENTURE Glenburgh E52/ % Aurora Resources Pty Ltd Camel Hills E09/ % Aurora Resources Pty Ltd JV with Peninsula Mines APPENDIX 2 List of Announcements to the Australian Securities Exchange which are referenced in this release: A1 Aurora Minerals ASX Announcement, 29 July 2016 Quarterly Activities Report to 30 June 2016 D1 D2 D3 D4 D5 D6 P1 P2 P3 P4 P5 P6 P7 Peninsula Mines ASX Announcement, 6 October Peninsula Completes $1.68M Placement to Accelerate South Korean Exploration Peninsula Mines ASX Announcement, 13 September Exceptional Zinc-Silver Grades from Newly Acquired Project, South Korea Peninsula Mines ASX Announcement, 1 August Osu Drilling Campaign High-Grade Gold Target Peninsula Mines ASX Announcement, 31 August Strongly Anomalous Lithium Results Peninsula Mines ASX Announcement, 20 September Jumbo and Very Large Identified at South Korean Graphite Projects Peninsula Mines ASX Announcement, 9 August Appointment of CEO Predictive ASX Announcement, 25 July 2016 More Good Drill Results from Boundiali, Côte d Ivoire Predictive ASX Announcement, 8 August 2016 More High Gold Grades from Boundiali Drilling, Côte D Ivoire Predictive ASX Announcement, 12 September 2016 Drilling Extends Boundiali Gold Mineralised Zone to at Least 1.2km Predictive ASX Announcement, 21 September 2016 New Soil Anomalies and High Grade Rock Chip Samples, Côte D Ivoire Predictive ASX Announcement, 29 March 2016 PDI- Toro JV Doubles the Area of Cote D Ivoire Ground Predictive ASX Announcement, 28 October 2015 Predictive Enters Agreement on Major Gold Mineralised System in Cote D Ivoire Predictive ASX Announcement, 6 October Predictive Announces Completion of Capital Raising