25 November 2014
Coincident bedrock conductor with
nickel-copper soil anomaly identified at Marymia
Australian Mines Limited ("Australian Mines" or "the Company") is pleased to report that the ongoing moving loop electromagnetic (EM) survey at Marymia has identified a discrete bedrock conductor within the interpreted extension of the Simmons ultramafic sequence.
Modelling of the Company's recently acquired geophysical data indicates that this conductive body has a strike length of 400 metres and is within 160 metres of the surface.
Significantly, this newly identified EM conductor coincides with a strong and coherent historic nickel-in- soil anomaly (previously reported as geochemical target MM001), which covers an area of 1,200 x 800 metres1,2.
Anomalous copper, platinum and palladium assays were similarly returned from the soil sampling survey of this target area3.
Australian Mines is proposing to drill test this conductor in February 2015 in conjunction with the Company's maiden drill program of the Burton nickel prospect, where a strong bedrock conductor has recently been detected beneath a thick layer of nickel oxide mineralisation (see Australian Mines' announcement of 18 November 2014).
The Company's expanded EM survey is presently testing a number of priority nickel and copper target zones across the Marymia Project. This survey is anticipated to be completed by mid-December, with results expected within four weeks of the completion of the survey.
***ENDS***
For further information, shareholders and media please contact:
Benjamin Bell Managing Director Ph: +61 8 9481 5811
E: [email protected]
1 Falcon Minerals Limited, AGM Presentation, released 9 November 2006
2 Australian Mines Limited, Quarterly Activities Report, released 30 October 2014
3 Falcon Minerals Limited, Annual Technical Report - Marymia Project, submitted to the Western Australian Department of
Mines and Petroleum in November 2006
Figure 1: Indicative location of the reported bedrock conductor and coincident nickel-copper-PGE soil anomaly at
Marymia. This target, together with the Burton nickel prospect, will be drill tested by Australian Mines from February
2015.
About Australian Mines:
Australian Mines (ASX: AUZ) is an Australian-listed resource company targeting nickel, copper and gold deposits. The company is currently acquiring an interest in the Marymia Project in Western Australia, which has demonstrated the potential to host gold and base metal mineralisation.
Marymia Nickel-Copper-Gold Project (Agreement to earn up to 80%)
Australian Mines signed a Heads of Agreement with Riedel Resources in April 2014 covering the Marymia nickel-copper-gold project, located 55 kilometres northeast and along strike of Sandfire Resources' world class DeGrussa Copper-Gold Mine.
In addition to targeting DeGrussa-style VMS copper-gold mineralisation, Australian Mines is also testing for nickel sulphide mineralisation across the Marymia Project as historic drilling of the oxide zone has returned encouraging results including
8m @ 1.05% Ni from 16m, 4m @ 1.07% Ni from 28m, and 13m @ 0.74% Ni from 28m. (AUZ release: 30 April 2014).
Under the terms of the Agreement announced on 30 April 2014, Australian Mines may acquire a 51% interest in the Marymia Project by spending $1 million on exploration within an initial two-year period. Following the acquisition of the initial 51%, Australian Mines may elect to acquire an additional 29% interest (taking the total to 80%) in the project by spending a furth er $2 million on exploration within a further 36-month period.
Australian Mines' Marymia Project is located approximately 850 kilometres north of Perth.
Appendix 1: JORC Code, 2012 Edition
Section 1: Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling techniques
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where 'industry standard' work has
been done this would be relatively simple (e.g.
'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules)
may warrant disclosure of detailed information.
Gem Geophysics commenced a ground-based moving loop electromagnetic survey over selected targets within the Marymia project area on behalf of Australian Mines in October 2014. This survey is still in progress.
The line spacing for this survey was 200 metres. The along line station spacing for the initial survey was 100 metres. This station spacing tightened to
50 metres along 100 metre spaced lines for the in-fill surveys.
At least two readings were acquired at each station in order to ensure data repeatability.
Quality assurance and quality control (QA/QC) of the electromagnetic data was independently verified by Southern Geoscience Consultants in Perth.
Drilling techniques
Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of Diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc.)
This report does not contain any drill-related results.
Section 2: Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
The Marymia Project is located within the Western Australian exploration licences of E52/2394 and E52/2395.
On 30 April 2014, Australian Mines announced it had signed a Heads of Agreement with Riedel Resources Limited (ASX code: RIE) in relation to the Marymia Project.
Exploration licences E52/2394 and E52/2395 are within the Marymia and Ned's Creek Pastoral Leases and contained within the Native Title Claim boundaries of the Gingirana (WAD6002/03) and Yugunga-Nya (WAD6132/98) Traditional Owners.
Exploration activities on E52/2394 and E52/2395 are permitted under agreements dated; 7
October 2010 between Audax Resources Ltd (a
subsidiary of Riedel Resources) and the Yamatji Marlpa Aboriginal Corporation as agent for the Yugunga-Nya people; and 23 October 2010 between Audax Resources and Gingirana Pty Ltd. Australian Mines is permitted to operate under these agreements as the company is joint venturing with Riedel Resources on this project.
Exploration licences E52/2394 and E52/2395 are in good standing with no impediments to
exploration known to exist at the time of writing.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
Limited exploration and drilling programs have previously been undertaken across the Marymia Project by other companies.
A summary of the historic anomalous nickel intersections are outlined in the Prospectus released by Riedel Resources Limited on
23 November 2010.
Geology Deposit type, geological setting and style of mineralisation.
Australian Mines are targeting three types of mineral deposits at Marymia;
(i) Kambalda-style komatiite-hosted nickel sulphide,
(ii) DeGrussa-style volcanogenic massive sulphide (VMS) copper-gold, and
(iii) Plutonic-style Archaean gold.
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Diagrams
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Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
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Appropriate maps and sections are included in the body of this report.
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Balanced reporting
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Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
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The accompanying document is considered to represent a balanced report.
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Other substantive exploration data
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Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
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The electromagnetic survey referred to in this report is the first exploration activity conducted by Australian Mines across this target area.
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Further work
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The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
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Further work may include a reverse circulation (RC) drill program to test the nature of the bedrock conductor identified at Marymia.
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Competent Person's Statement
Information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Benjamin Bell who is a member of the Australian Institute of Geoscientists. Mr Bell is a full-time employee and Managing Director of Australian Mines Limited. Mr Bell has sufficient experience that is relevant to the style of mineralisat ion 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 Bell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.