Exploration Update: Walhalla Polymetals Project

Transcription

1 ASX Announcement / Media Release 8 July 2013 Orion Gold Project Locations Exploration Update: Walhalla Polymetals Project Orion Gold NL (ASX: ORN) is pleased to present the attached Exploration Update with regards to exploration activities at the Walhalla Cu-Ni-PGE Project (the Walhalla Polymetals Project ). ASX Code: ORN Issued Capital: Ordinary Shares: 128.7M Options: 79.4M The presentation contains new exploration results from surface sampling, an Exploration Target for the Coopers Creek Prospect as well as giving investors further information about the geological model for the polymetallic mineralisation. The presentation also highlights the unique opportunity that the Company believes exists at the Walhalla Polymetals Project, namely to delineate a resource and develop a PGE-bearing deposit in a very supportive, first world location. The information in the presentation should be read in conjunction with the Disclaimers on slide 2 and the Competent Persons Statements on slide 21. Market Cap: ~$8M (at 6c) Directors: Denis Waddell Chairman Errol Smart Managing Director, CEO Alexander Haller Non-Executive Director Errol Smart Managing Director and CEO Management: Bill Oliver Chief Operating Officer Martin Bouwmeester CFO, Company Secretary Suite 302 Level 3, 488 Bourke Street Melbourne VIC 3000 T: F: E: info@oriongold.com.au ABN ASX Code: ORN W:

2 ASX Code: ORN Victoria Polymetal Exploration 4.08% Cu 0.1% Ni 0.74g/t Pt 0.73g/t Pd 0.62g/t Au 18g/t Ag Coopers Creek 1980 s drill core from mineralised keel (CC003; m) - note net textured sulphides 1

3 Disclaimer and Forward-Looking Statements Certain statements contained in this presentation, including information as to the future financial or operating performance of Orion Gold NL and its projects, are forward-looking statements. Such forward-looking statements: are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Orion Gold NL, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements; and may include, among other things, statements regarding targets, estimates and assumptions in respect of metal production and prices, operating costs and results, capital expenditures, mineral reserves and mineral resources and anticipated grades and recovery rates, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. Orion Gold NL disclaims any intent or obligation to update publicly any forward-looking statements whether as a result of new information, future events or results or otherwise. The words 'believe', 'expect', 'anticipate', 'indicate', 'contemplate', 'target', 'plan', 'intends', 'continue', 'budget', 'estimate', 'may', 'will', 'schedule' and similar expressions identify forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. All information in respect of Exploration Results, Exploration Targets and Mineral Resources should be read in conjunction with the Competent Person Statements at the end of this presentation. 2

4 Walhalla Project - Victoria Highly Prospective Region Walhalla-Woods Point Goldfield significant regional, historical high-grade gold production -3 rd largest goldfield in world class Victorian Gold Province - +4Moz >25g/t past production - ORN Existing total Indicated and Inferred Resource 440,000oz Au (refer Appendix 1) Historic high-grade Cu, Ni, PGE mining and drill intersections - mineralisation now understood to be related to gold mineralisation - historic drill intersections of up to 5.66g/t Au equivalent includes 11g/t Au equivalent / 6.4% Cu equivalent (refer to Appendix 2 for derivation of metal equivalent values) 3

5 Walhalla Polymetal - exploration rationale Walhalla Woods Point district is famous as the 3 rd largest goldfield in Victoria, but high grade copper nickel - PGE also known to occur within the district Both mineralisation styles are related to the Woods Point Dyke Swarm ( WPDS ) ~75 km long belt of ultramafic to felsic dykes The plumbing for a larger, now eroded, package of igneous rocks? Dykes of the WPDS and +1Moz Au deposits (i.e. Cohens, Morning Star, A1) share an intimate spatial association Recent studies support co-genetic model for Au and polymetallic mineralisation Au leached from earlier formed magmatic sulphides The key known Cu-Ni-PGE occurrences in the district (see Slide 7) relate to magmatic sulphides within dykes (bulges) which display a significant primitive (i.e. mantle-derived) component: Coopers Creek East Walhalla Maynard s Gully Shamrock New Loch Fyne The polymetal (Cu-Ni-PGE) potential of the WPDS has been largely ignored Several known Cu-Ni-PGE occurrences, including small-scale mines (Coopers Creek) Sporadic exploration in the 1970 s 1980 s (majority focused on Coopers Creek) Project being re-assessed as a result of new developments in the understanding of controls on magmatic sulphide mineralisation 4

6 Walhalla: A Model for Gold and Polymetallics Co-genetic model for Au + Polymetallics Modified after Jowitt, Keays, Jackson, Hoggart, Green : Journal Econ Geol

7 Host morphology - polymetallic deposits Geometry of the host intrusion is just as important as its petrology Trap sites are crucial in order to facilitate accumulation of the magmatic sulphides Gravity accumulation settling of sulphides & early-formed silicates from magma Changes in magma flow-rate dilation point or bend/choke point in intrusion Low to moderate angle basal contacts to intrusions Plunging dyke bulges (plunging base 60 o ) Sills/Lopoliths (sub-horizontal intrusions) Intrusions into low-angle reverse faults Intrusion into anticlinal folds Geophysics crucial in order to map subsurface geometry of prospective intrusions Note small surface expression of high grade mineralisation 6

8 WPDS: Key Polymetal prospects Prospect Historical Production 1 (Cu, Ni, PGE) Historic Grades 1.2 (Cu, Ni, PGE) Geology Coopers Creek 1594t Cu 258t Ni 177oz Pt 299oz Pd 122oz Au 1125oz Ag % Cu % Ni 2.2 g/t Pt 3.7 g/t Pd 1.5 g/t Au 14 g/t Ag North plunging dyke bulge; surface expression 150m x 30m Sulphide accumulations in basal keel of dyke, and displaced sulphides in parallel fault East Walhalla None recorded; small-scale mining evident 0.31% Cu 1.5g/t Pt 0.45g/t Au 3.3g/t Ag Dyke bulge with similar surface dimensions (100m x 30m) and composition to Coopers Creek. Copper carbonate staining of coarse grained ultramafic rocks Maynard s Gully None recorded 0.26g/t Pt 0.26g/t Au 1.75g/t Ag Dyke bulge (ca. 370m x 125m) at surface) of ultramafic mafic composition. Fine magmatic sulphides in ultramafic rocks New Loch Fyne (Outside Orion EL s) None recorded 2.3% Cu 2.46g/t Pt 2.79g/t Au 10.43g/t Ag Composite dyke bulge (ca. 220m x 85m at surface) Disseminated sulphides in basic dyke phase? Map of regional geology, Orion tenements, major dyke associated gold deposits and key polymetal prospects Shamrock (Outside Orion EL s) None recorded 1.0% Cu 0.84g/t Pt 0.19g/t Au 1.68g/t Ag Composite dyke bulge intermediate & basic phases Disseminated sulphides in basic dyke phase? 1) Historical Production figures sourced from Department of Primary Industry public records. 2) Junner,

9 Understanding The Opportunity Small, poorly understood surface expressions probably reduced historical interest Modern geological understanding emphasises the opportunity present in deposits of this style: In general the host intrusives have low but anomalous metal tenor at surface Only a small area within the intrusive contains significant concentrations of metals (at levels which are economically significant) These zones are likely to be relatively high grade and continuous down plunge (Coopers Creek deposit drilled to 300m below surface) The small footprint area of the deposit, facilitates access for exploration with small surface area disturbances - reduced exploration costs and environmental impact 8

10 Notional exploration target 25m (strike) x 125m (average width) Intersected in drilling 300 metres below surface Schematic Plan Section Notional Exploration Target SG: 3.2 t/m 3 Tonnes: 10,000t / vertical m Au equivalent grade: 5 6 g/t (based on CC003) Cu equivalent grade: 3-4% Cu (based on CC003) Therefore based on a vertical extent of between 200 and 400 metres the Exploration Target for the dyke keel is 2 4 million tonnes of copper nickel gold PGE mineralisation at a grade between 5 6 g/t Au equivalent or 3 4 % Cu equivalent. Exploration target is approximately 1,600oz Au / 300ton contained Cu equivalent per vertical m Over a 600m plunge extent this could represent a ca. 1Moz Au equivalent / 180,000 ton contained Cu equivalent Please refer to the Competent Persons Statement on slide 21. The information on this slide relating to Exploration Targets is consistent with the 2004 JORC Code and should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Schematic Long Section Notional Exploration Target 9

11 Coopers Creek Mined sporadically for Cu, records of Ni, Pt, Pd, Au, Ag content from 1865 to 1913 Total material mined: ca. 13,200t Two styles of sulphide mineralisation evident Accumulation of polymetal sulphides within interpreted keel of north-plunging dyke bulge; Sulphide injection within a dyke-parallel fault Historic 1980 s exploration drilling directly tested the keel model, intersecting 1.75% Cu, 0.2% Ni, 0.78g/t Pt, 1.08g/t Pd, 0.39g/t Au, 8.6g/t Ag including 3.23% Cu, 0.53% Ni, 1.16g/t Pt, 1.64g/t Pd, 1.3g/t Au, 14.4g/t Ag This mineralisation remains open down plunge to the north Dyke bulge expanding at depth Remnant drill core available at GSV core library for logging, geochemical and petrological analysis crucial to development of both prospect-scale and district-scale exploration models 10

12 Coopers Creek Modified after Hazeldene,1996 Modified after Hazeldene,

13 Coopers Creek schematic 3D view of dyke and drilling CC002 Drills across dyke bulge, but above keel zone. No significant assays Note small surface expression of high grade mineralisation DH81_ML001 Intersects thin dyke, below and to south of bulge keel Large bulge with anomalous, low grade mineralisation CC % Cu 0.2% Ni 0.78g/t Pt 1.08g/t Pd 0.39g/t Au 8.8g/t Ag from 303m 12

14 East Walhalla Dyke bulge (100m long x 30m wide on surface) of ultramafic to intermediate composition No recorded production Mineralisation evident as copper carbonate staining (after primary copper sulphides) Soil sampling (1970 s) highlighted a Cu+Ni in soils anomaly 1 One drill hole (1970 s location unknown) reportedly returned 0.35% Cu, 1.5g/t Pd, 0.5g/t Pt, 450ppm Ni 1 (selective sample only minor sulphides noted throughout the drilled dyke interval) Grab samples by Orion (May 2013) return up to 0.2% Cu, 374ppm Ni, 520ppb Pd, 315ppb Pt Similar results to poorly mineralized portion of Coopers Creek dyke (i.e. hole CC002) Poorly explored analogue to Coopers Creek? 1) Historical reports sourced from Department of Primary Industry public records. 13

15 Maynard s Gully Dyke bulge (370m long x 125m wide on surface) of ultramafic to mafic composition Size is encouraging approaching 3 x surface expression of Coopers Creek or East Walhalla No recorded production Mineralisation evident as disseminated chalcopyrite-pyrrhotite in medium grained ultramafic rock Has there been accumulation of sulphides within a suitable trap at depth? Surface sampling and bulldozer trenching (1970 s) highlighted copper anomalism about the western (footwall) contact of the dyke 1 Four shallow drill holes (1970 s) returned best result of 1.41% Cu, 0.19% Ni 1 (not analysed for PGE s). Orion grab samples (May 2013) return up to 0.48% Cu, 684ppm Ni, 24ppb Pt, 21ppb Pd Similar results to poorly mineralized portion of Coopers Creek dyke (i.e. hole CC002) 1) Historical reports sourced from Department of Primary Industry public records. 14

16 Comparisons Samples of comparable facies and positions in three different WPDS dykes Coopers Creek dyke Other Polymetal bearing dykes where keels not identified / tested Maynard s Gully 0.27% Cu 28ppb Pt 90ppb Pd 15ppb Au <1ppm Ag 0.48% Cu 684ppm Ni 24ppb Pt 21ppb Pd 9ppb Au 0.5g/t Ag (above mineralised keel) East Walhalla 4.08% Cu 0.1% Ni 0.74g/t Pt 0.73g/t Pd 0.62g/t Au 18g/t Ag (In mineralised keel) Coopers Creek 1980 s drill core (CC003; m) 0.2% Cu 374ppm Ni 315ppb Pt 520ppb Pd 31ppb Au 0.5g/t Ag 15

17 Forward Program Near term Review, sampling and analysis of historic drill core from Coopers Creek Preliminary assessment of other dyke bulge prospects on Orion leases Eureka, Tubal Cain Trial soil and stream geochemical sampling at East Walhalla / Maynard s Gully Trial ground geophysics (IP, Magnetics) at Coopers Creek, Maynard s Gully, East Walhalla Confirmatory drilling at Coopers Creek Ongoing Test bulge dimensions down plunge Studies into the Cu-Ni-PGE prospectivity of the broader WPDS developing a means of fingerprinting fertile dyke bodies 16

18 APPENDIX 1 REPORTED GOLD RESOURCES 17

19 Orion Gold Deposit Cut-off Au g/t Orion Gold NL In situ Mineral Resources at 30 June 2012 Measured Indicated Inferred Total Tonnes Au g/t Tonnes Au g/t Tonnes Au g/t Tonnes Au g/t Ounces Au Tubal Cain , , , ,400 Eureka , , , ,200 Cohen s 3 80, , , , ,100 Total 80, , ,007, ,688, ,800 Notes: Tonnes are rounded to the nearest 000, grade is rounded to the nearest 0.1, the ounces Au rounded to the nearest 100 The cut-off grades for Tubal Cain and Eureka are set at values required to report only that part of the total in situ Mineral Resource which it is believed has potential to be mined economically by underground methods suitable for narrow vein deposits The cut-off grade for the Cohen s Deposit (previously referred to as the Cohen s Stockwork Deposit) is set so as to report only that part of the Mineral Resource which it is believed has potential to be mined economically by underground bulk mining methods These Mineral Resources are exclusive of areas of these deposits which are known to have been previously mined. The Mineral Resources have been classified into Measured, Indicated and Inferred categories in accordance with JORC guidelines based variably on the assessment of geological continuity, grade continuity, drill data density and grade estimation error. Competent Persons: The information relating to the Mineral Resource is based on and accurately reflects grade estimation and modelling undertaken by Mr P. Ball B Sc MAusIMM for Orion Gold NL in his capacity as Consultant Geologist to Orion Gold. The Mineral Resource information has undergone review by external consultants. The reported resources are in the process of remodelling and re-estimation as a result of new information and interpretations and changed economics. Mr Ball has sufficient experience in relation to the style of mineralisation under consideration 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 Ball consents to the inclusion of the mineral resource information in the form and context in which it appears. The information relating to the Cohens Mineral Resource is based on and accurately reflects grade estimation and modelling undertaken again by Mr Ball and is compliant with the 1999 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. 18

20 Orion Gold Deposit Cut-off Au g/t Orion Gold NL In situ Mineral Resources at 30 June 2012 Measured Indicated Inferred Total Tonnes Au g/t Tonnes Au g/t Tonnes Au g/t Tonnes Au g/t Ounces Au Tubal Cain , , , ,400 Eureka , , , ,200 Cohen s 3 80, , , , ,100 Total 80, , ,007, ,688, ,800 Notes: Tonnes are rounded to the nearest 000, grade is rounded to the nearest 0.1, the ounces Au rounded to the nearest 100 The cut-off grades for Tubal Cain and Eureka are set at values required to report only that part of the total in situ Mineral Resource which it is believed has potential to be mined economically by underground methods suitable for narrow vein deposits The cut-off grade for the Cohen s Deposit (previously referred to as the Cohen s Stockwork Deposit) is set so as to report only that part of the Mineral Resource which it is believed has potential to be mined economically by underground bulk mining methods These Mineral Resources are exclusive of areas of these deposits which are known to have been previously mined. The Mineral Resources have been classified into Measured, Indicated and Inferred categories in accordance with JORC guidelines based variably on the assessment of geological continuity, grade continuity, drill data density and grade estimation error. Competent Persons: The information relating to the Mineral Resource is based on and accurately reflects grade estimation and modelling undertaken by Mr P. Ball B Sc MAusIMM for Orion Gold NL in his capacity as Consultant Geologist to Orion Gold. The Mineral Resource APPENDIX information has undergone review 2by external consultants. The reported resources are in the process of remodelling and re-estimation as a result of new information and interpretations and changed economics. Mr Ball has sufficient experience in relation to the style of mineralisation under consideration 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 Ball consents to the inclusion of the mineral resource information in the form and context in which it appears. The information relating to the Cohens Mineral Resource is based on and accurately reflects grade estimation and modelling undertaken again by Mr Ball and is compliant with the 1999 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. HISTORIC DRILL ASSAYS TABLES 19

21 Orion Gold Metal equivalent grade calculations for drill hole CC003 (Coopers Creek), drilled by Ausplat Minerals NL, 1988 Over 36 metres ( m) Over 3.5 metres ( m) Metal Price Grade US$ value/tonne Au equivalent Cu equivalent Grade US$ value/tonne Au equivalent Cu equivalent Au US$1, g/t g/t 0.23% 1.3g/t g/t 0.75% Pt US$1, g/t g/t 0.49% 1.16g/t g/t 0.73% Pd US$ g/t g/t 0.34% 1.64g/t g/t 0.52% Ag US$ g/t g/t 0.08% 14.4g/t g/t 0.13% Cu US$6, % g/t 1.75% 3.23% g/t 3.23% Ni US$13, % g/t 0.40% 0.53% g/t 1.06% Total $ g/t 3.29% $ g/t 6.42% Notes: Orion has considered the in-situ grades reported in the context of the current metal prices as reported by Kitco.com and the London Metal Exchange on 3 July The gangue and ore mineral assemblage as reported for the intersection is typical of PGE ores commonly mined in Southern Africa where >90% of world PGE production takes place. The metals and minerals identified are conventionally recoverable to a sulphide concentrate with standard metallurgical practices and a reasonable expectation of recovering >90% of each of the ore minerals. The concentrates produced can be expected to have composition typical of those commonly purchases and/or toll treated by base metal + PGE refineries in South Africa. The Competent Person is thus of the opinion that the metal equivalent estimate is a reasonable approach as an initial indication of economic merit of the mineral occurrence. The metal equivalence is stated as gold equivalence for Orion, which is a gold exploration and development company and has reported JORC compliant gold resources on the same tenement. Copper equivalence is also states since copper is the metal contributing most economic value in the intersection. 20

22 Orion Gold Competent Persons Statement The information relating to the Tubal Cain and Eureka Mineral Resource is based on and accurately reflects grade estimation and modelling undertaken by Mr P Ball BSc MAusIMM for Orion Gold NL in the capacity as Consultant Geologist to Orion Gold. The Mineral Resource information has undergone review by external consultants. Mr Ball has sufficient experience in relation to the style of mineralisation under consideration 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. The information relating to the Cohens Mineral Resource is based on and accurately reflects grade estimation and modelling undertaken again by Mr Ball and is compliant with the 1999 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Exploration Results, Exploration Targets and other technical information in this report has been compiled and assessed under the supervision of Mr Errol Smart, Orion Gold NL s Managing Director, from historical records and field investigation. Mr Smart (PrSciNat) is registered with the South African Council for Natural Scientific Professionals, a ROPO for JORC purposes and has experience in the identification and exploration of mineralisation of this style. Mr Smart consents to the public release of the information in the context contained within this release as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC Code ). Mr Smart consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this announcement relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) and Reserve(s) have not been used in this context in this announcement. The potential quantities presented in this announcement as Exploration Targets are conceptual in nature. It should be noted that there has been insufficient exploration to define a Mineral Resource which complies with the JORC code, and it is uncertain if further exploration will result in the determination of a Mineral Resource. Orion Gold NL intends to carry out an exploration programme to systematically test the Exploration Target for each of the Prospects. 21