FIRST NIFTY STEP-OUT HOLE SHOWS POTENTIAL 1KM EXTENSION OF ORE SYSTEM

Transcription

1 ASX RELEASE 9 AUGUST 2017 FIRST NIFTY STEP-OUT HOLE SHOWS POTENTIAL 1KM EXTENSION OF ORE SYSTEM Metals X Limited (Metals X r the Cmpany) is pleased t advise that its first step-ut drill hle 1km dwn plunge f the current Nifty rebdy has intercepted multiple mineralisatin znes ver 30m. The first hle, aimed at cnfirming the mine sequence stratigraphy as interpreted by the recent gephysics, has cnfirmed bth the stratigraphy and has intercepted significant cpper mineralisatin in what is cnsidered t be the same mineralised limb currently being mined at Nifty. Multiple znes f cpper mineralisatin in 17NNMD001 have been intersected 30m dwnhle with higher grade znes including: 10.95m at 1.12% Cu frm m including: 4.34m at 1.50% Cu frm m 3.56m at 1.73% Cu frm m 2.23m at 2.15% Cu frm m The bjective f the current drilling prgram is t step ut and test the psitin f mineralisatin dwn-plunge f the current mining areas. The lcatin f the cmpleted drillhle is apprximately 1km east f the current mine wrkings, 700m frm the defined area f mineralisatin and remains relatively shallw, as shwn belw. LONG SECTION OF NIFTY UNDERGROUND COPPER MINE SHOWING RECENT EXPLORATION AND STEP-OUT DRILL HOLE Significantly, this first hle, as planned, has intersected the nrthern limb f the Nifty Syncline. A further hle will be drilled t target the syncline keel which is the key mineralised area f the Nifty re system. ASX Cde: MLX Level 3, Parliament Place receptin@metalsx.cm.au West Perth WA Australia

2 As is depicted in the lng sectin diagram abve, the nrthern limb in the current mine has prvided fr mre than 10 years f mining ver a dwn-plunge distance f nly 600m. The significance f such strng mineralisatin in the first f ur hles with a 1km step ut is highly encuraging with the bjective f mine-life extensins. Drilling is cntinuing. Managing Directr, Warren Hallam, said: This is an exceptinal and exciting result fr Metals X as it clearly shws that mineralisatin f Nifty cntinues dwn plunge well beynd the current rebdy, further demnstrating ur expectatins that Nifty will becme a very large lng-life mine. ENQUIRIES Warren Hallam Steve Rbinsn Managing Directr Executive Directr e: warren.hallam@metalsx.cm.au e: steve.rbinsn@metalsx.cm.au ASX ANNOUNCEMENT (ASX: MLX) 2

3 APPENDIX 1 SIGNIFICANT DRILL INTERSECTIONS Lde Hle Intercept N Intercept E Intercept RL Intercept (Dwnhle Width) Frm (m) Dip Azi Nifty - Nrth Limb 17NNMD001 7,603,147.5mN 353,445.2mE 10,300mRL 10.95m at 1.12% Cu ,603,147.1mN 353,446.1mE 9,795.6mRL Incl. 4.34m at 1.50% Cu Nifty Nrth Limb 17NNMD001 7,603,146.3mN 353,447.7mE 9,787.2mRL 3.56m at 1.73% Cu ,603,146.3mN 353,447.7mE 9,787.2mRL Incl. 2.23m at 2.15% Cu ASX ANNOUNCEMENT (ASX: MLX) 3

4 APPENDIX 2 JORC TABLE 1 Infrmatin material t understanding the Explratin Results. JORC Cde, 2012 Editin JORC TABLE 1: THE INFORMATION IN THIS TABLE REFERS TO THE NIFTY SULPHIDE, NIFTY OXIDE AND NIFTY HEAP LEACH DEPOSITS AT THE NIFTY COPPER OPERATION Sectin 1: Sampling Techniques and Data (Criteria in this sectin apply t all succeeding sectins) Criteria JORC Cde explanatin Cmmentary Nature and quality f sampling (e.g. cut channels, randm chips, r specific specialised industry standard measurement tls apprpriate t the minerals under investigatin, such as dwn hle gamma sndes, r handheld XRF instruments, etc.). These examples shuld nt be taken as limiting the brad meaning f sampling. Include reference t measures taken t ensure sample representivity and the apprpriate calibratin f any measurement tls r systems used. Aspects f the determinatin f mineralisatin that are Material t the Public Reprt. In cases where industry standard wrk has been dne this wuld be relatively simple (e.g. reverse circulatin drilling was used t btain 1 m samples frm which 3 kg was pulverised t prduce a 30 g charge fr fire assay ). In ther cases mre explanatin may be required, such as where there is carse gld that has inherent sampling prblems. Unusual cmmdities r mineralisatin types (e.g. submarine ndules) may warrant disclsure f detailed infrmatin. Drill type (e.g. cre, reverse circulatin, pen-hle hammer, rtary air blast, auger, Bangka, snic, etc.) and details (e.g. cre diameter, triple r standard tube, depth f diamnd tails, face-sampling bit r ther type, whether cre is riented and if s, by what methd, etc.). Methd f recrding and assessing cre and chip sample recveries and results assessed. Measures taken t maximise sample recvery and ensure representative nature f the samples. Whether a relatinship exists between spectrmeter. sample recvery and grade and whether sample bias may have ccurred due t preferential lss/gain f fine/carse material. Sampling techniques Drilling techniques Drill sample recvery The depsit has been drilled and sampled using varius techniques with diamnd and reverse circulatin drilling utilised fr mineral estimatin. This infrmatin cmes frm surface and undergrund and is n variable spacing alng and acrss strike. The ttal metres within the immediate vicinity f the Depsit are 143,497m. The hles are drilled n mst ccasins t intersect as near as pssible perpendicularly the synclinal east plunge mineralisatin. The drilling prgrams have been nging since initial discvery t bth expand the mineralisatin and prvided cntrl fr mining. The hle cllars were surveyed by Cmpany emplyees/cntractrs with the rientatin recrded. Dwn hles survey is recrded using apprpriate equipment. The diamnd cre was lgged fr lithlgy and ther gelgical features. The diamnd cre varied frm HQ t NQ in diameter and mineralised intervals and adjacent lcatins were sampled by cutting the cre in 1/2 based n bservatin frm the cre phtgraphs. The RC samples were cllected frm the cyclne f the rig and spilt at site t apprximate 2 t 3Kg weight. The preparatin and analysis was undertaken at accredited cmmercial labratries, ALS r Intertek Genalysis. Bth labratries have attained ISO/IEC accreditatin. ALS uses the ME-ICP61 fur acid digest methds using a sample f 0.2g with an ICPAES finish. Over limit results (>1% Cu) are re-analysed using the ME- OG62 methd, which invlves subjecting a 40g sample t a fur acid digest with an ICPAES finish. Intertek Genalysis use a fur acid digest using a 0.2g sample with an ICP-OES finish. Over limit results (>1% Cu) are re-assayed using an re grade fur acid digestin f 0.2g sample, and an AAS finish. Mre recent assays may als use ALS Fusin / XRF (ME-XRF15c) using a 0.4g sample which is fused int a disk and analysed using a wavelength dispersive X-Ray flurescence The drilling was cmpleted using a cmbinatin f surface and undergrund drilling. In general the rientatin f the drilling is apprpriate given the given the strike and dip f the mineralisatin. The cre recvery is recrded in the database and in mst instances was in excess f 95%. This was assessed by measuring cre length against cre run. There is n recrd f the quantity (weight) f RC chips cllected per sample length. ASX ANNOUNCEMENT (ASX: MLX) 4

5 Criteria JORC Cde explanatin Cmmentary The grund cnditins in the mineralised zne are cmpetent. In areas f less cmpetent material cre return is maximised by cntrlling drill speed. In the case f RC samples areas f less cmpetent material are identified in the lg. Whilst n assessment has been reprted the cmpetency f the material sampled wuld tend t Lgging Sub-sampling techniques and sample preparatin Quality f assay data and labratry tests Whether cre and chip samples have been gelgically and getechnically lgged t a level f detail t supprt apprpriate Mineral Resurce estimatin, mining studies and metallurgical studies. Whether lgging is qualitative r quantitative in nature. Cre (r cstean, channel, etc.) phtgraphy. The ttal length and percentage f the relevant intersectins lgged. If cre, whether cut r sawn and whether quarter, half r all cre taken. If nn-cre, whether riffled, tube sampled, rtary split, etc. and whether sampled wet r dry. Fr all sample types, the nature, quality and apprpriateness f the sample preparatin technique. Quality cntrl prcedures adpted fr all sub-sampling stages t maximise representivity f samples. Measures taken t ensure that the sampling is representative f the in situ material cllected, including fr instance results fr field duplicate/secnd-half sampling. Whether sample sizes are apprpriate t the grain size f the material being sampled. The nature, quality and apprpriateness f the assaying and labratry prcedures used and whether the technique is cnsidered partial r ttal. Fr gephysical tls, spectrmeters, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and mdel, reading times, calibratins factrs applied and their derivatin, etc. Nature f quality cntrl prcedures adpted (e.g. standards, blanks, duplicates, external labratry checks) and whether acceptable levels f accuracy (i.e. lack f bias) and precisin have been established. preclude any ptential issue f sampling bias. The rutine lgging f cre and chips describes the general gelgy features including stratigraphy, lithlgy, mineralisatin, alteratin etc. Fr the majrity f hles this infrmatin is sufficient and apprpriate t apply mineralisatin cnstraints. Sme cre drilling is rientated and structural measurements f bedding, jints, veins etc. has ccurred as well as fracture densities. Gelgical lgging has recrded summary and detailed stratigraphy, lithlgy, mineralisatin cntent, and alteratin, sme angle t cre axis infrmatin, vein type, incidence and frequency, magnetic cntent. The entire length f all hles, apart frm surface casing, was lgged. All cre t be sampled was ½ cred using a mechanical saw. It is nt knwn if the cre was cnsistently taken frm the same side f the stick. RC chip samples are cllected via a cyclne which is cleaned with air blast between samples. The samples riffled t cllect between 2 and 3kg. Mst samples are dry with any misture nted n the lgs. Field sub-sampling fr chip samples appears apprpriate as is the use f cre cutting equipment fr the submitted cre. Prcedures adpted in the labratries are industry standard practises including that in the mine site facility. In field riffles are cleaned between sampling using cmpressed air. The diamnd cutting equipment is cleaned during the prcess using water. All labratries adpt apprpriate industry best practises t reduce sample size hmgeneusly t the required particle size. N field duplicate infrmatin was bserved. The style f mineralisatin and high sulphide cntent des nt rely n grain size as being influential n grade. Thus there is cnfidence in the verall grade f the depsit being fairly represented by the sampling. The assay techniques are apprpriate fr the determinatin f the level f mineralisatin in the sample. The technique is 4 acid digest with ICP finish. N gephysical tls were utilised t ascertain grade except where utlined in the sampling techniques sectin f this table. Standard and Blanks are included with all samples sent fr analysis in the rate f between 1 in 20 and 1 in 30. The mst recent reprting cvering the majrity f hles used in the estimate prvide supprt fr the quality f the Cu assays. ASX ANNOUNCEMENT (ASX: MLX) 5

6 Criteria JORC Cde explanatin Cmmentary The verificatin f significant intersectins by either independent r alternative cmpany persnnel. The use f twinned hles. Dcumentatin f primary data, data entry prcedures, data verificatin, data strage (physical and electrnic) prtcls. drilling results. Discuss any adjustment t assay data. Verificatin f sampling and assaying Lcatin f data pints Data spacing and distributin Orientatin f data in relatin t gelgical structure Sample security Audits r reviews Accuracy and quality f surveys used t lcate drill hles (cllar and dwn-hle surveys), trenches, mine wrkings and ther lcatins used in Mineral Resurce estimatin. Specificatin f the grid system used. Quality and adequacy f tpgraphic cntrl. Data spacing fr reprting f Explratin Results. Whether the data spacing and distributin is sufficient t establish the degree f gelgical and grade cntinuity apprpriate fr the Mineral Resurce and Ore Reserve estimatin prcedure(s) and classificatins applied. Whether sample cmpsiting has been applied. Whether the rientatin f sampling achieves unbiased sampling f pssible structures and the extent t which this is knwn, cnsidering the depsit type. If the relatinship between the drilling rientatin and the rientatin f key mineralised structures is cnsidered t have intrduced a sampling bias, this shuld be assessed and reprted if material. The measures taken t ensure sample security. The results f any audits r reviews f sampling techniques and data. The extensive data set has been reviewed by varius parties including Maxwell Gescience and DataGe and the intersectins within the mineralisatin have been cnfirmed. N twinned hles bserved but there is a significant amunt f clsely spaced supprtive Field data is captured electrnically, validated by the respnsible gelgist and stred n crprate cmputer facilities. Prtcls fr drilling, sampling and QAQC are cntained with the cmpany perating manuals. The infrmatin generated by the site gelgists is laded int a database by the cmpany database manager and underges further validatin at this pint against standard acceptable cdes fr all variables. The cllar psitins were resurveyed by the Cmpany surveyr r their cntractrs frm a knwn datum. The survey is n a knwn lcal grid with demnstrated cntrl. The rientatin and dip at the cllars is checked (aligned) by the gelgist and dwn hle recrding f azimuth and dip are taken at 30m intervals n mst ccasins using apprpriate equipment. The reginal grid is GDA94 Zne 50 and the drilling is laid ut n a lcal grid. Tpgraphic cntrl is frm surface survey - nte the depsit mdelled is ttally undergrund and is nt influenced by surface tpgraphy. The majrity f drilling utilised is n 40m x 20m grid specifically targeting lithlgical and hence mineralisatin sequence definitin. The gelgical sequence is well understd frm the mining which supprts the current drill spacing as adequate fr bth grade cntinuity assessment and lithlgical mdelling The sampling reflects the gelgical cnditins. Fr mineral resurce estimatin a 1m cmpsite length was chsen given that this is the dminant sample length in dataset. Given the shape f the sequence, the drilling as best as practically pssible, is rientated t intersect the sequence perpendicularly. This is limited t drill sites frm undergrund and surface. N sampling bias is cnsidered t have been intrduced. The samples nce cllected and numbered are stred in the lckable site cre yard. Each sample bag is securely tied with the sample number n the bag and inside n metal tags transprted by cmmercial cntractrs t Perth. Upn receipt at the labratry the samples are checked against the dispatch sheets t ensure all samples are present. Resurces and reserves are rutinely reviewed by the Metals X Crprate technical team. Database management cmpanies have ver the past 2 years audited the drill hle database and fund it representative f the infrmatin cntained. ASX ANNOUNCEMENT (ASX: MLX) 6

7 Sectin 2: Reprting f Explratin Results (Criteria listed in the preceding sectin als apply t this sectin.) Criteria JORC Cde explanatin Cmmentary Type, reference name/number, lcatin and wnership including agreements r material issues with third parties such as jint ventures, partnerships, verriding ryalties, native title interests, histrical sites, wilderness r natinal park and envirnmental settings. The security f the tenure held at the time f reprting alng with any knwn impediments Mineral tenement and land tenure status Explratin dne by ther parties Gelgy Drill hle Infrmatin t btaining a licence t perate in the area. Acknwledgment and appraisal f explratin by ther parties. Depsit type, gelgical setting and style f mineralisatin. A summary f all infrmatin material t the understanding f the explratin results including a tabulatin f the fllwing infrmatin fr all Material drill hles: easting and nrthing f the drill hle cllar elevatin r RL (Reduced Level elevatin abve sea level in metres) f the drill hle cllar dip and azimuth f the hle The Nifty depsit is situated n mining lease M271/SA, which is 100% held by Nifty Cpper Pty Ltd, a whlly wned subsidiary f Metals X. WMC Resurces Ltd discvered Nifty in 1980 by using reginal irnstne sampling and recnnaissance gelgy. Malachite staining f an utcrp and Cu-anmalus irnstnes frm dune swale recnnaissance sampling were the initial indicatrs. This was fllwed up by lag sampling n a 500 x 50m grid that detected a 2.5 x 1.5km Cu-Pb anmaly. Secndary Cu mineralisatin was intersected in percussin drilling in mid-1981, with high grade primary re (20.8m at 3.8% Cu) discvered in WMC cmmenced pen pit mining f the secndary xide re in 1992 and cntinued mining until September 1998 when Nifty was sld t Straits Resurces. The prject was subsequently purchased frm Straits Resurces by Aditya Birla Minerals Ltd in Open pit mining ceased in June Cpper extractin using heap leaching ceased in January Undergrund mining f the primary (chalcpyrite) mineralisatin started in The prject was purchased frm Aditya Birla in 2016 by Metals X Ltd. The Nifty depsit is hsted within the flded late-prterzic Bradhurst Frmatin which is part f the Yeneena Grup. The Bradhurst Frmatin is between 1000 m t 2000 m thick and cnsists f a stacked series f carbnaceus shales, turbiditic sandstnes, dlmite and limestne. Structurally, the dminant feature is the Nifty Syncline which strikes apprximately sutheast-nrthwest and plunges at abut 6-12 degrees t the sutheast. The stratabund cpper mineralisatin ccurs as a structurally cntrlled, chalcpyrite-quartz- dlmite replacement f carbnaceus and dlmitic shale within the flded sequence. The bulk f the primary mineralisatin which is currently being mined is largely hsted within the keel and nrthern limb f the Syncline. Cllar Details (GDA MGA94, Zne 51 Nrthing: - 7,603,080.8mN Easting: - 353,428.3mE RL: - 10,300.0mRL Dip: Azimuth: Ttal Length: m Intersectin Depth: m t 561.8m ASX ANNOUNCEMENT (ASX: MLX) 7

8 Criteria JORC Cde explanatin Cmmentary Data aggregatin methds Relatinship between mineralisatin widths and intercept lengths Diagrams Balanced reprting Other substantive explratin data Further wrk dwn hle length and interceptin depth hle length. If the exclusin f this infrmatin is justified n the basis that the infrmatin is nt Material and this exclusin des nt detract frm the understanding f the reprt, the Cmpetent Persn shuld clearly explain why this is the case. In reprting Explratin Results, weighting averaging techniques, maximum and/r minimum grade truncatins (e.g. cutting f high grades) and cut-ff grades are usually Material and shuld be stated. Where aggregate intercepts incrprate shrt lengths f high grade results and lnger lengths f lw grade results, the prcedure used fr such aggregatin shuld be stated and sme typical examples f such aggregatins shuld be shwn in detail. The assumptins used fr any reprting f metal equivalent values shuld be clearly stated. These relatinships are particularly imprtant in the reprting f Explratin Results. If the gemetry f the mineralisatin with respect t the drill hle angle is knwn, its nature shuld be reprted. If it is nt knwn and nly the dwn hle lengths are reprted, there shuld be a clear statement t this effect (e.g. dwn hle length, true width nt knwn ). Apprpriate maps and sectins (with scales) and tabulatins f intercepts shuld be included fr any significant discvery being reprted These shuld include, but nt be limited t a plan view f drill hle cllar lcatins and apprpriate sectinal views. Where cmprehensive reprting f all Explratin Results is nt practicable, representative reprting f bth lw and high grades and/r widths shuld be practiced t avid misleading reprting f Explratin Results. Other explratin data, if meaningful and material, shuld be reprted including (but nt limited t): gelgical bservatins; gephysical survey results; gechemical survey results; bulk samples size and methd f treatment; metallurgical test results; bulk density, grundwater, getechnical and rck characteristics; ptential deleterius r cntaminating substances. The nature and scale f planned further wrk (e.g. tests fr lateral extensins r depth extensins r large-scale step-ut drilling). Diagrams clearly highlighting the areas f pssible extensins, including the main gelgical interpretatins and future drilling areas, prvided this infrmatin is nt cmmercially sensitive. NA NA Included in attached release NA NA Open pit and undergrund feasibility wrks; Validatin drilling in areas f ptential ecnmic mineralisatin; Infill drill areas f data paucity prximal t the undergrund develpment. This will increase resurce cnfidence and resultant classificatins. Validatin f the undergrund vid mdel. ASX ANNOUNCEMENT (ASX: MLX) 8