The Discovery of (Flying Fox &) Spotted Quoll Nickel Deposit Charles Wilkinson CET Discovery Day February 24, 2015 ASX:WSA 1
ACKNOWLEDGEMENTS Exploration is always a team effort and success is the result of the efforts of many people, from corporate management through to drillers. The leadership, drive and enthusiasm provided by Julian Hanna and Terry Streeter The geological and geophysical work relied heavily on the contribution of Newexco, in particular K.M. Frost, A.P. Black, W.J. Amann. ASX:WSA 2
ACKNOWLEDGEMENTS Management Geology Team Certificate of Approval for Spotted Quoll Mine Environmental Team Drillers ASX:WSA 3
ACKNOWLEDGEMENTS Shareholders and Joint Venture Partners Wives and Partners Project / Engineering Hyden Progress Association Members Newexco ASX:WSA 4
AGENDA Location Previous Work Pre Western Areas Forrestania Acquisition New Morning Spotted Quoll Flying Fox Spotted Quoll Flying Fox ASX:WSA 5
LOCATION Part of the Forrestania Greenstone Belt Southern End of Southern Cross Terrain 370km east of Perth ASX:WSA 6
FORMER OWNERS AMAX Forrestania Greenstone Belt had been explored for nickel since the late 1960s. Regional nickel exploration during the 1970s by Amax/Amoco leads to the discovery of nickel sulphide mineralization at New Morning, Flying Fox, Cosmic Boy, Digger Rocks, Mount Hope, Liquid Acrobat and Seagull. The successful Amax/Amoco regional exploration program involved geological mapping, ground magnetic surveys and extensive RAB pattern drilling. Flying Fox nickel deposit was discovered in 1976 during RAB drill testing of a weak narrow, ground magnetic anomaly. FFD 1 returned 15.9m @ 5.53% Ni Flying Fox New Morning Spotted Quoll WBD012 Amax geology map - 1976 ASX:WSA 7
FORMER OWNERS OUTOKUMPU Outokumpu active at Forrestania from 1989, conducting open cut and underground mining on three ore bodies between 1992 and August 1999. Flying Fox, Diggers Rocks, Cosmic Boy During this period, Outokumpu mined a total of 3.7Mt @2.0% Ni, producing 73,350 tonnes of nickel. In 1999, following a period of low nickel prices, Outokumpu ceased mining at Forrestania and moved the treatment plant to the high grade Black Swan mine located near Kalgoorlie. Flying Fox Cross Section Flying Fox Long Section ASX:WSA 8
WSA ACQUIRES FORRESTANIA WSA IPO Listed 27 th July 2000 Forrestania not part of IPO Tenements advertised in the newspaper Initially only wanted the New Morning lease but had to take all leases Nineteen of the Outokumpu JV tenements subject to plaints (including New Morning tenement) 17 Apr 2002 right to earn 75% in Forrestania Nickel Sulphide Project (earned by 18 02 03) acquired Viceroy's rights from administrators ($1.3M plus expenditure of $2M before 3/2005) Significant Infrastructure Power, Roads Containing a total of 55,500t nickel metal. Acquired remaining 25% (for $1M + 2% NSR) 19 May 03 ASX:WSA 9
WSA ACQUIRES FORRESTANIA Listed and acquired in low nickel price environment WSA LISTED ON ASX 28-07-00 WSA acquisition 17-04-02 ASX:WSA 10
FORRESTANIA GREENSTONE BELT Regional Geology Two main volcano sedimentary associations (ca 2.9Ga) ; Lowermost basalt(tholeiite) ultramafic (komatiite) BIF+ felsic metasediments Uppermost felsic metasediments + black shale. Six ultramafic belts Nickel sulphide deposits and most occurrences in two belts (Eastern and Western) Mid amphibolite facies metamorphism and polyphase deformation Granitic rocks intrude and exploit preexisting faults, and E W trending dolerite dikes crosscut the stratigraphy ASX:WSA 11
FORRESTANIA LOCAL GEOLOGY Western Ultramafic Belt Steep east dipping and younging succession four units; Quartzo feldspathic metasedimentary rocks with basaltic rocks Cumulate rich compound komatiite flow sequence comprising a differentiated channel facies grading upward from ortho and mesocumulates to noncumulates, with massive sulfides located at or near the base of the package A komatiite basalt thin flow facies sequence, where noncumulate komatiites and high MgO basalts dominate. Hanging wall metasedimentary rocks ASX:WSA 12
DRILL TESTING NEW MORNING / DAYBREAK 2002 2003 Many significant intercepts NMD 097 5.9m @ 3.6% Ni from 319.1m including intervals of 1m @ 4.9% Ni, 1m @ 4.2% Ni and 0.8m @ 4.5% Ni. 03 Oct 2002. NMD098 3.6m @ 4.9% 17 Dec 2002. NMD 107 (W1) 19.2m @ 2.05% nickel from 531m downhole depth, 150m below the Daybreak deposit 24 Mar 2003. Recognition of horizontal fault offset with granite below known mineralisation. ASX:WSA 13
FLYING FOX TARGETING PARAMETERS (AUGUST 2003) Geophysical review completed during July/August 2003. Review of 1994 downhole TEM (DHEM) showed presence of strong conductors in drillholes FFD122, 123. DHEM re logging of holes in early September 2003 with new data clearly highlighting targets both above and below historic drilling. Upper 1 2 conductors explained by stratigraphic sulphidic and black shales. Lowermost conductor associated with Ultramafic Footwall metasediment contact, occurring at similar depth in both holes initially suspected one untested conductor at same depth in both drill holes. Flying Fox WSA LionOre 0.5km Flying Fox Interpreted Geology 1994 FFD124 NSI FFD122 8m @ 1.1% Ni FFD123 NSI ASX:WSA 14
FLYING FOX TARGETING PARAMETERS (AUGUST 2003) Interpreted Geology and DHTEM conductors, August 2003 FFD122 ASX:WSA 15
FLYING FOX T1 DISCOVERY Interpreted Geology and DHTEM conductors, August 2003 ASX:WSA 16
FLYING FOX T1 DISCOVERY Diamond Drill Hole FFD132 6.60m @ 7.90% Ni from 454.62m ASX:WSA 17
FLYING FOX MINE Production Summary First Flying Fox Ore Oct 2006 Three Years After Discovery First Ore T1 Dec Qtr 07 First Ore T5 Dec Qtr 09 Continuous high grade Nickel to 1300m T5 & T7 down dip extensions cross into Lounge Lizard and remain open Outokumpu produced ~8Kt Ni WSA has produced ~100Kt Ni ASX:WSA 18
FLYING FOX MINE Current Status High Grade (excluding disseminated sulphide resource) Mineral Resource: 1.72Mt @ 5.2% Ni containing 89,328 Ni Tonnes Ore Reserve: 1.44Mt @ 4.1% Ni containing 58,533 Ni Tonnes Underground drilling program to extend Mineral Resource remains a focus 1HFY15 129,219t @ 5.0% Ni for 6,498t Ni Recent exploration highlights in T5 and T6 include: T5 3.3m @ 9.5% nickel T6 3.5m @ 5.6% nickel ASX:WSA 19
SPOTTED QUOLL PRE DISCOVERY Long section of Western Ultramafic Belt Most work at New Morning / Flying Fox Sept 2007 ASX:WSA 20
SPOTTED QUOLL LOCAL GEOLOGY Part of the Western Ultramafic Belt 6km south of Flying Fox 2.8km south of New Morning Daybreak Locally hosted in layered quartz rich footwall metasediment sequence (>200m thick. 30 to 50m below hangingwall komatiite F Thin lenses of komatiite in hangingwall succession no thick cumulate unit Located 250m north of Willy Willy Channel? (1.5km x300m cumulate komatiite) Structurally hosted massive, matrix and stringer sulphide in lode parallel to layering in local sequence. ASX:WSA 21
SPOTTED QUOLL PREVIOUS EXPLORATION No Outcrop Three lines of RAB drilling Three holes, one DDH WBD012 DDH WBD012 drilled komatiitic ultramafic (no cumulates) and 40m in footwall sediments Geological compilation from previous drilling No ground electrical geophysics Targeted for MLEM survey F WBD012 ASX:WSA 22
SPOTTED QUOLL DISCOVERY MLEM SURVEY 2006 2006 MLEM survey Single line anomaly 240m spaced traverses 50m stations Spotted Quoll ASX:WSA 23
SPOTTED QUOLL DISCOVERY MLEM SURVEY 2006 Spotted Quoll ASX:WSA 24
SPOTTED QUOLL DISCOVERY DRILLING (2007) First drill hole WBD 18 6.2m @ 4.8% Ni, incl 3.6m @ 6.9% Ni (24 Oct 07) Strongly mineralised structure at shallow depth hidden under granite intrusion ASX:WSA 25
SPOTTED QUOLL DISCOVERY DRILLING (2007) First drill hole WBD 18 6.2m @ 4.8% Ni, incl 3.6m @ 6.9% Ni (119.9m 126.1m) Within sediment package remnant ultramafic ASX:WSA 26
SPOTTED QUOLL DISCOVERY DRILLING (2007) Flying Fox New Morning Spotted Quoll Long Section ASX:WSA 27
SPOTTED QUOLL DISCOVERY DRILLING (2007) Interpreted Geological Cross Section 6,403,460mN 400m 5.5m @ 3.9% Ni 8.2m @ 4.4% Ni 6.6m @ 4.9% Ni 5.0m @ 6.6% Ni 300m 6.2m @ 4.8% Ni 3.9m @ 4.5% Ni 200m 2.1m @ 3.6% Ni ASX:WSA 28
SPOTTED QUOLL DISCOVERY DRILLING (2008) February 2008 drilling intersections: 8.7m @ 11.4% nickel & 6.5m @ 9.4% Ni Recognition of North Fault ASX:WSA 29
SPOTTED QUOLL DISCOVERY DRILLING (SEPT 2008) MINERAL RESOURCE (2 September 2008) 1,045,900 tonnes @ 7.3% Ni containing 75,140 t Nickel to 300m vertical depth Recent intersections: 18.3m @ 10.4% Ni, 7m @ 11.4% Ni & 6.5m @ 9.4% Ni Establishing down dip continuity ASX:WSA 30
SPOTTED QUOLL DISCOVERY DRILLING (SEPT 2008) Spotted Quoll continuous high grades to 600m depth Sept 2008 ASX:WSA 31
SPOTTED QUOLL DISCOVERY DRILLING (OCT 2009) Recognition of possible fault zone step out drilling New high grade zone discovered 600m below resource October 2009 ASX:WSA 32
SPOTTED QUOLL DISCOVERY DRILLING (2009) Probable Ore Reserve open pit mine 390,000 @ 5.1% Ni containing 19,900t Nickel Mineral Resource 2Mt @ 6.2% Ni for 125,460t Nickel (to 640m depth) High grade nickel intersections in new nickel zone, 600m below mineral zone. Spotted Quoll Mine Longitudinal Section Oct 2009 ASX:WSA 33
SPOTTED QUOLL DISCOVERY Spotted Quoll Mine, Tim King open pit Opening 10th June 2010 Also shows deposit located on access road Flying Fox New Morning Flying Fox Arrowhead Access Track Spotted Quoll ASX:WSA 34
SPOTTED QUOLL DISCOVERY Photo of open pit 21 Feb 2012 showing west wall light colours are felsic rocks (granites) Top part of pit 8 Jan 2010 ASX:WSA 35
SPOTTED QUOLL DISCOVERY UNDER GROUND Thrust within sediment package remnant ultramafic High Grade massive ore on the 1230 ore drive Jan 2012 High Grade massive ore 940 ore drive Dec 2014 ASX:WSA 36
SPOTTED QUOLL MINE Current Status Mineral Resource: 3.11Mt @ 5.5% Ni containing 169,654 Ni tonnes Ore Reserve: 2.86Mt @ 4.1% Ni containing 116,222 Ni tonnes Remains open at depth and to the north Already around a 10 year mine life on Reserve Production Open Pit 487,742t @ 5.8% for 28,501Nit U/G 697,817t @ 5.0% for 34,749 Nit ASX:WSA 37
DISCOVERY SUMMARY Acquisition of a quality asset in low part of cycle Improved downhole EM techniques and data interpretation to target drilling Improved understanding of structural controls of remobilised massive sulphides Experienced nickel geologists Persistence ASX:WSA 38
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