FOR
IMMEDIATE RELEASE:
April
30, 2008
Mineral Resources Upgraded and Feasibility
Study Nearing Completion at Woodlawn Tailings Re-Treatment Project, Woodlawn,
NSW
Tri Origin
Exploration Ltd. (TOE:TSX-V) is pleased to report on progress made by
the Company’s Australian subsidiary, Tri Origin Minerals Ltd
(“TRO”) at the Woodlawn Zinc-Copper Projects in New south Wales. Mineral
Resources at the Woodlawn Tailings Re-treatment Project (WRP) have been
significantly increased and an initial draft of the Bankable Feasibility Study
(BFS) is being reviewed and updated with the new mineral resource estimates.
The following report has been summarized from TRO’s Quarterly Report for
the period ended March 31, 2008 and Appendix 5B – Mineral Exploration
Entity Quarterly Report which has been filed by TRO with the ASX.
Key Points
·
WRP Mineral Resources have been increased by 36% to 9.4
Mt of Measured and Indicated Resource grading 2.3% zinc, 0.5% copper, 1.4%
lead, 0.3 g/t gold, and 32 g/t silver and an additional 2.3 Mt of Inferred
Resource at similar grades with completion of the North Tailings Dam Mineral
Resource estimate and a revision of the estimated South and West Tailings Dam
Mineral Resources, following additional drilling.
·
First draft of the WRP feasibility study completed.
Development decision to be taken in second quarter 2008.
·
Feasibility study of integrated WRP and Woodlawn
Underground Project (WUP) to be completed following completion of the
stand-alone WRP feasibility study.
·
Project financing alternatives for WRP have been
canvassed and preferred funding plan being finalised.
·
Exploration around Woodlawn and in regional New South Wales is
ongoing with EM and drilling scheduled.
·
At 31 March 2008, TRO’s cash on deposit
amounted to $3,785,000.
Woodlawn Zinc
Copper Projects Overview
A decision was taken in April 2007 to start work on a
bankable feasibility study (BFS) at Woodlawn, the site of a significant
past-producing copper, lead, zinc and silver mine located 200 kilometres
southwest of Sydney, with the aim of completing the study by the first quarter
of 2008.
The initial intent of the BFS was to study the
feasibility of a stand-alone Woodlawn Underground Project (WUP) which involved
reopening the Woodlawn underground mine to access high grade mineralisation
that remained when the operation ceased in 1998. Since then, following positive
outcomes from metallurgical test work, the scope of the study has been expanded
to also evaluate the feasibility of a stand-alone Woodlawn Re-treatment Project
(WRP) involving reclaiming and processing the tailings that were produced from
the previous Woodlawn open cut and underground operations.
By early 2008, the respective stand-alone studies of
the WUP and WRP had progressed to a point where a decision was taken to focus
on evaluating a staged development scenario which commences with the
development of a stand-alone tailings re-treatment project followed by an
incremental expansion into a fully integrated processing operation that treats
both tailings and ore extracted by an underground mining operation. The
integrated approach was taken to introduce a desired level of flexibility
into the operation, provide a more capital efficient approach to project
development than would be possible with two stand alone operations and achieve
certain unit capital and operating cost advantages, particularly with the
underground project.
WRP Feasibility Study:
The first draft of the feasibility study based on the
published Measured, Indicated and Inferred Resource of 8.6 million tonnes of
tailings from the South and West Tailings Dams has been completed by TRO’s
consultants. Before taking a development decision based on this study, TRO will
incorporate into the study:
·
The additional Measured, Indicated and Inferred North
Tailings Dam Resource of 3.1 Mt (i.e. an increase of 36%). Metallurgical test
work is in progress to confirm the expectation that the metallurgy of the
material contained in the North Tailings Dam is consistent with tailings from
the South and West Tailings Dams.
·
Results from a technical peer review process that
will be undertaken to ensure optimum outcomes in terms of engineering, procurement
and contracting strategy.
·
Results of discussions with potential off-takers of
zinc, copper, and lead concentrates to firm up the potential marketing arrangements.
·
Results of review of alternative funding strategies
and the selection of a preferred funding strategy.
A development decision on the stand-alone WRP is
expected to be made during the second quarter of 2008.
Upgraded WRP Mineral Resources
Following receipt of assays from drilling completed
in December 2007, Mineral Resource estimates have now been finalised and or
revised for the three Tailings Dams from which tailings will be recovered and
processed as part of the WRP. Based on an independent assessment
performed by GeoRes1 the combined tonnage of Measured, Indicated and
Inferred Resource contained in the North, South and West Tailings Dams has been
increased by 36%, and is made up as follows:
Resource Category
|
Tonnes (million)
|
Cu (%)
|
Pb (%)
|
Zn (%)
|
Au
(g/t)
|
Ag
(g/t)
|
North Tailings
Dam
|
|
|
|
|
|
|
|
Inferred
|
0.9
|
0.3
|
1.3
|
2.0
|
0.25
|
37
|
|
Indicated
|
1.4
|
0.5
|
1.4
|
2.7
|
0.29
|
40
|
|
Measured
|
0.8
|
0.4
|
1.4
|
2.4
|
0.29
|
35
|
|
Sub-Total
|
3.1
|
0.4
|
1.4
|
2.4
|
0.28 |
38
|
South Tailings
Dam
|
|
|
|
|
|
|
|
Inferred
|
0.9
|
0.5
|
1.2
|
2.3
|
0.23
|
24
|
|
Indicated
|
1.2
|
0.5
|
1.2
|
2.4
|
0.22
|
23
|
|
Measured
|
2.4
|
0.5
|
1.2
|
2.6
|
0.22
|
25
|
|
Sub-Total
|
4.5
|
0.5
|
1.2
|
2.5
|
0.22 |
24
|
West Tailings Dam
|
|
|
|
|
|
|
|
Inferred
|
0.5
|
0.6
|
1.5
|
1.8
|
0.38
|
34
|
|
Indicated
|
1.5
|
0.6
|
1.5
|
1.9
|
0.39
|
37
|
|
Measured
|
2.1
|
0.6
|
1.5
|
2.0
|
0.39
|
36
|
|
Sub-Total
|
4.1
|
0.6
|
1.5
|
2.0
|
0.39 |
36
|
Total
WRP Resources
|
|
|
|
|
|
|
|
Inferred
|
2.3
|
0.4
|
1.3
|
2.1
|
0.27
|
31
|
|
Indicated
|
4.1
|
0.5
|
1.4
|
2.3
|
0.31
|
34
|
|
Measured
|
5.3
|
0.5
|
1.3
|
2.3
|
0.30
|
31
|
Total
|
11.7 |
0.5
|
1.4
|
2.3
|
0.30 |
32
|
WUP Feasibility Study
As part of the ongoing BFS for the WUP, two diamond
holes were drilled in order to gain samples for metallurgical test work. Both
holes targeted remnant mineralisation in pillars associated with old workings
in the Woodlawn Underground Mine. The previously reported hole WLTD004 was
designed to intersect part of C Lens, while hole WLTD005 was designed to
intersect A and B1 Lenses.
Drill Hole WLTD005
Additional samples for metallurgical test work were
obtained by drilling hole WLTD005 through remnant pillars in the A and B1
Lenses (Refer to Table 1 for details of drill results). The hole
intersected relatively high-grade zinc-rich mineralisation associated with A
Lens from 353 m to 371 m. Average core recovery through this interval was about
40%.
Similar mineralisation was intersected from 417 m to 427
m which represents B1 Lens. Core recovery through this interval averaged about
45%. Core recoveries have not been factored into the assays or associated
intercept calculations, however, the widths and grades of mineralisation
reported are consistent with adjacent holes drilled by previous operators.
A 5m wide zone (427 m to 432 m) of copper
mineralisation was intersected in the immediate footwall of B1 Lens. Additional
copper-rich mineralisation was also intersected deeper in the footwall of B1
Lens from 441 m to 446 m.
Significant intersections2, 3 included:
Hole
|
Lens |
From (m)
|
To (m)
|
Interval (m)
|
Cu (%)
|
Pb (%)
|
Zn (%)
|
Ag (g/t)
|
Au (g/t)
|
WLTD005
|
A
|
353.0
|
371.0
|
18.0
|
0.70
|
4.66
|
11.48
|
88
|
0.56
|
|
WLTD005
|
B1
|
417.0
|
427.0
|
10.0
|
0.57
|
5.13
|
10.74
|
124
|
0.32
|
|
WLTD005
|
B1*
|
427.0
|
432.0
|
5.0
|
4.01
|
0.14
|
1.34
|
19
|
0.09
|
|
WLTD005
|
B1*
|
441.0
|
446.0
|
5.0
|
2.14
|
0.09
|
0.25
|
9
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Footwall
of B1 Lens
Integrated WRP / WUP Feasibility Study
The feasibility study of the integrated project
involving both the tailings re-treatment and an underground mining and
processing operation will be finalized following a development decision on the
WRP which is expected in the second quarter of 2008. The study is intended to
demonstrate the feasibility of an integrated operation producing up to 80,000
tonnes of concentrates per year from underground ore giving total integrated
project output of between 120,000 and 140,000 tonnes of concentrates per year.
Statutory Approvals:
Work towards obtaining Part 3A approvals is
progressing and appropriate consultants are working towards satisfaction of the
Director General of the NSW Department of Planning’s requirements
(“Director General’s Requirements”) prior to commencement of
community consultation.
Transfer of Project
Title
Discussions with Veolia Environmental Services Pty
Limited, the operator of the Woodlawn Bioreactor and Waste Management Facility
located in the disused Woodlawn pit void, have continued regarding final project
boundaries and areas of operations. It is expected that documentation of the
transfer of Special Mining Lease 20 (“SML 20”) and certain freehold
property relating to SML 20 to TRO will be finalised prior to receipt of
development consents.
Exploration
TRO continues to conduct exploration programs at a
number of prospects within the Woodlawn district. This includes drilling and
geophysical surveying nearby the Cowley Hills deposit which was mined by
Denehurst Limited in 1990 and produced approximately 40,000 tonnes at 1.8% Cu,
2.9% Pb, 4.7% Zn, 118 g/t Ag and 1.9 g/t Au and geophysical surveying and
drilling at the Woodlawn Northwest and Woodlawn West prospects. TRO will also
be conducting ground based EM surveys and or drilling programmes at its Overflow,
Lewis Ponds and Cullerin projects during the coming quarter.
Cash Position
At 31 March 2008, TRO’s cash balance amounted
to $3,785,000 a decrease of approximately $1,631,000 since the end of the
previous quarter. During the quarter, TRO’s cash burn rate has been
maintained at elevated levels as work on the WZP BFS and development consents
has continued in line with expectations.
Plans for the
Current Quarter
·
Optimise the WRP feasibility study by:
o
Incorporating tailings from the North Tailings Dam
into the production schedule;
o
Completing a technical peer review process that will
be undertaken to ensure optimum outcomes in terms of engineering, procurement and
contracting strategy;
o
Finalising a concentrate marketing strategy.
·
Finalise and commence implementation of a financing
plan for the WRP.
·
Make WRP development decision.
·
Finalise underground metallurgical test work for
inclusion in the WUP BFS.
·
Finalise documentation for the transfer of SML 20 and
freehold property relevant to SML 20 to TRO.
·
Advance work programs associated with the Part 3A
environmental approval process for the projects.
·
Commence front end engineering and design
(“FEED”) requirements to enable the early placement of orders for
long lead items of equipment.
Notes:
1. TRO appointed Mr Robin Rankin
of GeoRes as the competent person under the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves 2004 Edition (the
‘JORC code’), to conduct the Resource estimate. He also completed
the Resource estimate for the WUP while employed with another consultancy
group. GeoRes provides geological consulting services to the mineral
exploration and mining industry. In
accordance with the ASX Limited Listing Rules Appendix 5A, the
information in the release prepared by TRO that relates to Mineral Resources or
Ore Reserves is based on information compiled by Robin Rankin, a Member of the
AusIMM, and registered as a Chartered Professional Geologist (CPGeo).
Robin Rankin is Principal Consulting Geologist and operator of GeoRes. He
has sufficient experience relevant to the style of mineralization and type of
deposit under consideration, and to the activity which he is undertaking, to
qualify as a Competent Person as defined by JORC. He consents to the inclusion
in the report of the matters based on his information in the form and context
in which it appears.
2. In accordance with the ASX
Limited Listing Rules Appendix 5A, the information in the report prepared by
TRO that relates to Exploration Results is based on information compiled by Mr
David Hobby, an employee of the Company, who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Hobby has
sufficient experience which is relevant to the style of mineralisation and type
of deposit under consideration and to the activities which he is undertaking to
qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Hobby consents to the inclusion in the report
of the matters in the form and context in which they appear based on
information derived from his technical work.
- With respect the
exploration results quoted above, true widths are approximately 90% of
down-hole widths. Analyses were obtained by crushing the whole core
(typically 4-7kg) to -3.35mm. A sub-sample was obtained by rotary
splitting and pulverised for analysis. Samples to be analysed for Cu, Pb,
Zn are subjected to a mixed acid digest with ICP finish. Ag assays are
obtained by mixed acid digest with AAS finish. Gold is analysed by fire
assay with AAS finish.
This release was prepared by
Tri Origin Exploration Ltd. from information supplied by its subsidiary Tri
Origin Minerals Ltd (TRO). TRO’s news release can be accessed at www.asx.com.au under Listed Company Documents
filed by TRO. TRO’s reporting of mineral resources, exploration results
and qualifications of competent persons are in accordance with the 2004 Edition
of the Australasian Code for Reporting of Exploration Results and the JORC Code
of December 17, 2004. Although these codes may differ in some regards to
Canadian Standards including NI 43-101, it is the opinion of TOE management
that statements made in the TRO report are, in all material regards, compliant
with NI 43-101 standards.
For further information please
contact:
Tri Origin Exploration Ltd.
Dr. Robert Valliant, President
Tel: (905) 294-9942
Web page: www.triorigin.com
E-mail: invest@triorigin.com
Tri Origin
Exploration Ltd. is publicly
listed on the TSX Venture Exchange under the trading symbol TOE. Tri Origin has
leveraged exposure to mineral discoveries in Australia through its 51% equity
interest in its subsidiary, Tri Origin Minerals Ltd.; a publicly traded company
listed on the Australian Securities Exchange under the symbol TRO.