ASX/MEDIA
ANNOUNCEMENT
10 DECEMBER 2013
ASX Code: HOR Management
Mr Jeremy Shervington
Non-Executive Chairman
Mr Neil Marston
Managing Director
Mr Michael Fotios
Non-Executive Director
Mr Stuart Hall
Non-Executive Director
Mr Damian Delaney
Company Secretary
Issued Capital
Shares: 86.1 Million
Options:
5.4 Million (45c, exp 5/14)
5.4 Million (60c, exp 5/15) Performance Rights: 3.8 M
Share Price: $0.04
Market Capitalisation:
$3.4 Million
Cash at Bank
(30 September 2013)
$0.92 Million
HORSESHOE METALS AWARDED WA
GOVERNMENT GRANT FOR KUMARINA DEEPS DRILLING PROGRAMME
Highlights
• Horseshoe Metals Limited selected to receive $100,000
Western Australian Government co-funded drilling grant.
• Funds to be utilised to drill the untested magnetic anomaly at Kumarina Deeps Prospect, at the Kumarina Project.
• Drilling programme expected to commence in H1 2014. Horseshoe Metals Limited (ASX:HOR) ("Horseshoe" or "the
Company") is pleased to announce it has been awarded a $100,000
Western Australian Government grant to support a drilling programme on its 100% owned Kumarina Copper Project ("Kumarina Project").
The project is located 95km north of Sandfire Resources NL's (ASX:SFR) DeGrussa Copper-Gold mine, in the Gascoyne region of Western Australia (see Figure 1).
The funding is through the highly successful Co-funded Drilling program, a flagship program of the Exploration Incentive Scheme (EIS), which is a State Government initiative supported by Royalties for Regions.
The co-funding will be utilised on a deep RC (Reverse Circulation Percussion) drilling programme, targeting an untested magnetic anomaly, known as the Kumarina Deeps Prospect. It is situated within the Backdoor Formation of the Collier Group and is thought to be prospective for a deep intrusive-related base metal system (see Figure 2).
The drilling programme will test for mineralised zones within the Backdoor Formation that was previously not considered as a prospective host rock unit.
ABN 20 123 133 166
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Unit 6/11 Colin Grove, West Perth PO Box 256 West Perth WA 6872
Ph (08) 9481 5866 Fax: (08) 9481 5966 www.horseshoemetals.com.au
ASX ANNOUNCEMENT 10 DECEMBER 2013
Horseshoe is very pleased to have been selected to receive this co-funded grant after meeting the strict criteria provided by the Western Australian Government. The Company believes the award of this grant is a strong vindication for the work it is doing at the Kumarina Project.
The drilling programme is targeted to commence in the first half of 2014. The pre-requisite heritage survey and Programme of Works - Exploration clearances for the drilling have already been obtained by the Company.
Future Activities
The planned RC drilling programme at the Snell North Prospect, within the Kumarina Project, will now be conducted in early 2014.
ENDS
For further information please contact:
Neil Marston James Moses
Managing Director Media and Investor Relations
Horseshoe Metals Limited Mandate Corporate
T: +61 8 9481 5866 M: +61 420 991 574
M: +61 427 188 768 T: +61 2 8211 0612
E: [email protected] E: [email protected]
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ASX ANNOUNCEMENT 10 DECEMBER 2013
About Horseshoe Metals Limited
Horseshoe Metals Limited (ASX:HOR) is a copper and gold focused company with a package of tenements covering approximately 300km2 in the highly prospective Peak Hill Mineral Field, located north of Meekatharra in Western Australia. The Company's projects are the Horseshoe Lights Project and the Kumarina Project (see Figure 1).
About the Horseshoe Lights Project
The Horseshoe Lights Project includes the old open pit of the Horseshoe Lights copper-gold mine which operated up until 1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper including over
110,000 tonnes of Direct Shipping Ore (DSO) which graded between 20-30% copper.
The Horseshoe Lights ore body is interpreted as a deformed Volcanogenic Hosted Massive Sulphide (VMS) deposit that has undergone supergene alteration to generate the gold-enriched and copper-depleted cap that was the target of initial mining. The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation, which also host Sandfire Resources' DeGrussa copper/gold mine.
Past mining was focused on the Main Zone, a series of lensoid ore zones which passed with depth from a gold- rich oxide zone through zones of high-grade chalcocite mineralisation into massive pyrite-chalcopyrite. To the west and east of the Main Zone, copper mineralisation in the Northwest Stringer Zone and Motters Zone consists of veins and disseminations of chalcopyrite and pyrite and their upper oxide copper extensions.
A Mineral Resource Estimate for the Horseshoe Lights deposit was completed by the Company in June 2013 (see
30 June 2013 Quarterly Report announced on 31 July 2013). The Mineral Resource Estimate meets the reporting requirements of the new 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves"
The total Measured, Indicated and Inferred Mineral Resource Estimate is 12.85 million tonnes @ 1.00% Cu and
0.1 g/t Au for 128,600 tonnes Cu and 36,000 oz Au (using a cut-off grade of 0.5% Cu).
About the Kumarina Project
The copper deposits at the Kumarina Project were discovered in 1913 and worked intermittently until 1973. The workings extend over nearly 5km as a series of pits, shafts and shallow open cuts. At the main Kumarina Copper Mine, the workings are entirely underground with drives from the main shaft extending for some 200m in the upper levels and for about 100m in the lower levels at a depth of 49m below surface.
Incomplete records post-1960s make it difficult to estimate the total copper production from the workings. However, indications are that the Kumarina Copper mine was the second largest producer in the Bangemall Basin group of copper mines. Recorded production to the late 1960s is 481t of copper ore at a high-grade of
37.0% Cu and 2,340t at a grade of 17.51% Cu.
A Mineral Resource Estimate for the Rinaldi deposit was completed by the Company in June 2013 (see 30 June
2013 Quarterly Report announced on 31 July 2013). The Mineral Resource Estimate meets the reporting requirements of the new 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves"
The total Measured, Indicated and Inferred Mineral Resource Estimate is 835,000 tonnes @ 1.3% Cu for 10,600 tonnes Cu (using a cut-off grade of 0.5% Cu).
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ASX ANNOUNCEMENT 10 DECEMBER 2013
HORSESHOE METAlS
HORSESHOE METALS
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ASX ANNOUNCEMENT 10 DECEMBER 2013
Figure 2 -Kumarina Project - Prospects Location Plan
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ASX ANNOUNCEMENT 10 DECEMBER 2013
Competent Persons Statement
The information in the report to which this statement is attached that relates to Exploration Results is based on information compiled by Mr Geoff Willetts, BSc. (Hons) MSc. who is a Member of the Australian Institute of Geoscientists. Geoff Willetts is employed full-time by Horseshoe Metals Limited. Geoff Willetts has sufficient experience which is relevant to the style of mineralisation 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'. Geoff Willetts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the Horseshoe Lights Project Mineral Resources is based on information compiled by Mr Dmitry Pertel, who is a member of the Australian Institute of Geoscientists. Mr Pertel is an employee of CSA Global Pty Ltd. The information was previously issued with the written consent of Mr Dmitry Pertel in the Company's 30 June 2013 Quarterly Report released to the ASX on 31 July 2013. The Company confirms that:
(a) the form and context in which Mr Dmitry Pertel's findings are presented have not been materially modified.
(b) it is not aware of any new information or data that materially affects the information included in the 31
July 2013 ASX announcement and that all the material assumptions and technical parameters underpinning the estimate in the 31 July 2013 ASX announcement continue to apply and have not materially changed.
(c) it is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as mineral resources in accordance with the JORC Code.
The information in this report that relates to the Kumarina Project (Rinaldi Prospect) Mineral Resources is based on information compiled by or under the supervision of Mr Robert Spiers, who is a member of the Australian Institute of Geoscientists. Mr Robert Spiers is an independent consultant to Horseshoe Metals Limited and a full time employee and Director of H&S Consultants Pty Ltd (formerly Hellman & Schofield Pty Ltd). The information was previously issued with the written consent of Mr Robert Spiers in the Company's 30
June 2013 Quarterly Report released to the ASX on 31 July 2013. The Company confirms that:
(a) the form and context in which Mr Robert Spiers' findings are presented have not been materially modified. (b) it is not aware of any new information or data that materially affects the information included in the 31
July 2013 ASX announcement and that all the material assumptions and technical parameters underpinning the estimate in the 31 July 2013 ASX announcement continue to apply and have not materially changed.
(c) it is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as mineral resources in accordance with the JORC Code.
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