Mutooroo Magnetite Project Inferred Resource Estimate of the Muster Dam Magnetite Fe Deposit 2 nd December 2011 Andrew Burtt, Project Geologist 8 th SA Exploration and Mining Conference Adelaide, SA
Maiden JORC Inferred Resource 1.5 Billion Tonnes @ 15.2% DTR and 18.02% Fe (Head) at 10% DTR cut-off with 228 Mt of contained magnetite concentrate Concentrate Grade Fe 69.8% Al 2 O 3 0.4% P 2 O 5 0.002% S 0.002% SiO 2 2.8% LOI -3.3%
Location
Braemar Ironstones
Regional TMI
Heli-magnetics Area 1 Area 2 Area 3 3,497 line kilometres with flight line spacing of 50m and terrain clearance of 25m
Muster Dam Magnetic Anomaly Outcropping steeply east dipping, magnetitebearing diamictite and siltstone
Muster Dam TMI Anomaly - 3D magnetic modelling by MIRA Geoscience Magnetic Modelling
Muster Dam TMI Anomaly - 3D magnetic inversion by MIRA Geoscience Magnetic Modelling
Magnetic Modelling 3D Inversion of Muster Dam anomaly - 0.4 SI Magnetic Susceptibility iso surface
15 Sections Modelled 2D Forward Modelling Section: MDN001 Section: MDN001 Section: MDN001
Planned Resource Drillholes 36 planned RC drillholes for 10,600m on 400m sections 150m apart Section: MDN001
Resource Drilling 49 x RC drillholes for 13,031m 10 x Diamond drillholes for 2,883m Section: MDN001 Diamictite Siltstone
Resource Drilling Excellent correlation between modelled and drilling Section: MDN001 Section MDN001
Resource Drilling Excellent correlation between modelled and drilling Section: MDN001 Section MDN001
Davis Tube Recovery (DTR) 2,355 5m RC composite samples for DTR/XRF at 45µm grind size 558 5m ¼ core samples for DTR/XRF at 45µm grind size Magnetite concentrate sample recovered (DTR) Head sample input (20g) DTR or Mass Recovery = Wt Mag(g) / Wt Head(g)
QA/QC Created our own Standard as there are no commercially available magnetite Fe standards Mutooroo Magnetite Project Resource Drilling Standards 25 20 15 10 DTR% 5 0 0 10 20 30 Fe% head Standard 1 (High DTR) Standard 2 (Moderate DTR) 25 24 23 22 21 20 19 18 17 16 15 STD: STD1 553920 554140 554440 554620 554940 555140 555340 555620 555840 558120 556540 556740 556440 557020 557120 558240 558420 124040 558720 551540 DTR (%) Sample ID
QA/QC 13 18% QA/QC samples including standards, blanks, field duplicates and lab check samples Duplicate Sample DTR% 40 35 30 25 20 15 10 5 0 Field Duplicates DTR% 0 10 20 30 40 Alpha Sample DTR%
QA/QC Diamond Drillholes Twin of RC holes to confirm RC is representative Confirm dip of sequence Alpha-Beta measurements SG measurements DTR% 45 40 35 30 25 20 15 10 5 0 MDD001 vs MD003 DTR 0 50 100 150 200 250 300 350 Depth (m) MDD001 DTR% MD003 DTR%
Resource Modelling H&S Hellman & Schofield Pty Ltd Independent review by Hellman & Schofield to produce Inferred Resource: 2,913 x 5m DTR composites from drilling 280 estimated from magsus using Conditional Expectation statistical technique 1 2 Total of 3,193 x 5m composites used for resource estimation Due to curved nature of deposit 4 sub-domains modelled Unconstrained Ordinary Kriging used with 10% DTR cutoff and no top cut with a block size of 100 x 50 x 20m Av. density of 2.96 g/cm3 estimated from 2,357 x 5m downhole geophysics composites with density assigned to ore blocks 3 4 Only Fresh Rock resource reported
Resource Modelling H&S Model validation demonstrates that the block model honours the drill hole composite grades Section Plot of DTR_Mag Northing slice: 6409100.0 +/- 50.0 Plan Plot of DTR_Mag RL slice: 80.0 +/- 10.0 400 300 000 200 000 100 0 000-100 000 4-200 -300 489500 489600 489700 489800 489900 490000 490100 490200 East 000 487000 488000 489000 490000 491000 East
Resource Estimation Muster Dam Concentrate Grades Billion Magnetite Fe% Al 2 O 3 % P 2 O 5 % S % SiO 2 % LOI % Category Tonnes DTR % Inferred 1.5 15.2 69.8 0.4 0.002 0.002 2.8-3.3 DTR Mag Cut Off % BTonnes DTR Mag Recovery % Fe Head Grade % 6 1.60 14.84 17.96 8 1.58 14.93 18.02 10 1.51 15.18 18.20 12 1.36 15.64 18.57 14 1.02 16.47 19.17 16 0.54 17.74 20.01 18 0.18 19.38 20.77
Exploration Target Target Area No of Strike (km) Thickness Volume (Bill m 3 ) Tonnage (Bt) Bands (m) Muster Dam 1 5.5 to 6.5 100 to 325 0.30 to 0.45 1.0 to 1.5 Muster Catch 2 1.7 to 2.3 80 to 150 0.03 to 0.06 0.05 to 0.15 Muster South 1 1.7 to 2.3 80 to 120 0.03 to 0.06 0.05 to 0.15 Duffield 1 1 3.0 to 3.5 100 to 300 0.09 to 0.13 1.0 to 1.5 Duffield 2 2 1.5 to 2.5 80 to 100 0.25 to 0.40 0.1 to 0.3 Surrender Dam 4 3.0 to 3.5 80 to 150 0.10 to 0.15 0.2 to 0.4 Totals 16.4 to 20.6 80-325 0.80 to 1.25 2.4 to 4.0 The term Exploration Target should not be misconstrued as an estimate of Mineral Resources and Reserves as defined in the JORC Code (2004), and the term has not been used in that context. The term is conceptual in nature and it is uncertain if further exploration will result in the determination of a Mineral Resource. Refer Clause 18 of the JORC Code (2004).
Future JORC statement directly comparable to that for CAP s Hawson s Project 25km distant Grind optimisation & Scoping Study underway; for completion in February 2012 Measured resource at Muster Dam Inferred resource at Duffields
Acknowledgements Mutooroo Pastoral Company Sumitomo Metal and Mining Oceania Frank Walsh Drilling Macquarie Drilling ALS Laboratories AMDEL Hellman & Schofield Euro Exploration Minotaur personnel Adelaide University students
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