For Immediate Release
Exploration Office Unit 2 81 Harrison Road Dudley Park
SA 5008
ABN: 96 110 336 733
Tel: +61 8 8245 4900
Fax: +61 8 8245 4999
www.monaxmining.com.au
For Immediate Release
Thursday 13 November, 2014
ASX RELEASE
Potential Kimberlite Discovery in Northern South Australia
HIGHLIGHTS
• Potential kimberlite discovered at Margaret Dam project, located in northern
South Australia
• Detailed ground magnetic and gravity surveys completed
• Early 2015 drilling planned to confirm whether target is a diamondiferous kimberlite
Monax Mining Limited ("Monax") (ASX:MOX) is pleased to announce the discovery of a potential kimberlite on its Margaret Dam Exploration Licence (EL) 5347, located south of William Creek in northern South Australia (see Figure 1).
Monax originally selected EL 5347 to search for iron-oxide copper-gold (IOCG) targets within the basement of the Gawler Craton. A review of the available aeromagnetic data showed two small circular features located within the southern part of the licence area which is considered to be consistent with that of a kimberlite intrusion (Figure 2). Initial modelling showed this feature was relatively shallow and not likely to represent an IOCG target.
Monax recently completed detailed ground magnetic(1) and gravity surveys over the circular magnetic features to check the validity of the data, and assist with modelling the dimensions and depth of the target. The new ground magnetic data reveals a discrete elongate magnetic dipole with a SW-NE trend and a smaller magnetic anomaly located to the SW (Figure 3). The gravity data shows a subtle gravity response associated with the magnetic feature (Figure 4).
Geophysical Modelling
Geophysical modelling outlined a magnetic body at a depth of approximately 80m. The dimensions of an elliptical body 250m long 45m wide with a tapering root to 400m depth was outlined. The main feature (shown in blue on Figure 5) strikes 230o/50o (SW-NE) with a near vertical dip (see Figure 5). (Magnetic susceptibility χ = 0.015 SI units).
A small secondary anomaly (red) is located in the SW of the survey area at a depth of 75m and is characterised by an elliptical body geometry and is approximately 100m long by 30m wide. Strike direction is 300o/120o (WNW-ESE) - (see Figures 5 & 6). The gravity model suggests that the magnetic body has subtle density contrasts.
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Background
Macrodiamonds and kimberlitic indicator minerals have been found within close proximity to Monax's Margaret Dam project area. In 1894, a single ~1 carat (ct) Diamond was found in alluvial gold workings at Peake Creek, north of William Creek (see Figure 7) (Morris, 2003).
In the early 1980's, eight microdiamonds were reported from loam and stream sediment samples from Edwards Creek and two at Reedy Lagoon (Figure 7), along with numerous kimberlitic indicator minerals including picroilmenite, pyrope garnet and chrome spinel (Morris, 2003).
The Margaret Dam area has been explored for diamonds by several companies, most recently by Flinders Diamonds Ltd ("Flinders") on EL 2758. Flinders considered this area prospective for kimberlites because:
• Previously discovered indicator minerals from the area are fresh, suggesting the primary source rocks are in the general region;
• The interpreted palaeocurrent direction indicates fluviatile flow towards the north; and
• Exploration area (now EL 5347) falls on the G2 lineament (refer to Figure 7) (Flinders
Diamonds Ltd, 2007).
Flinders drilled 65 holes totalling 1690m with 29 samples collected for testing for indicator minerals. Holes which did not intersect the target Algebuckina Sandstone or intersected silicified rock were not sampled or tested (Flinders Diamonds Ltd, 2007). Figure 8 shows the location of drill holes within the vicinity of EL 5347 and shows the holes which reported indicator minerals.
Monax believes that past failures to locate kimberlite bodies on EL 5347 is due to the previous explorers focus on Diamond indicator studies and a lack of attention to the available geophysics. The magnetic anomaly is located in an area of positive Diamond indicators and may represent the source of the Diamond indicator minerals discovered by previous exploration.
Forward Program
Monax is assessing and integrating the newly acquired geophysics with open file Diamond exploration data and , at this stage is planning to undertake a shallow drilling program in early
2015 to confirm whether the target is a diamondiferous kimberlite.
Gary Ferris Managing Director, Monax Mining
Ph: (08) 8245 4900
Email: [email protected]
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies 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 Ferris consents to the inclusion of the information in this report in the form and context in which it appears.
(1) Ground magnetic survey was undertaken by two TAFE students as part of a 2nd year project for their Diploma of Geoscience. Gravity data was collected by Daishsat and provided to the students for their project.
References
Flinders Diamonds Ltd, 2007. Open file Envelope 9851. Government of South Australia. Department for
Manufacturing, Innovation, Trade, Resources and Energy.
Morris, B., 2003. Review of Diamond potential in South Australia. MESA Journal 29, p14-17.
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Figure 1. Monax tenement location pian highlighting EL 5347.
Page 13
Figure 2. RTP image derived from SAEI C4 airborne magnetic survey. (NB
small magnetic anomalies outlined in yellow circle in the SW corner - no cultural features are obvious in available satellite imagery or from site survey).
Figure 3. Reduced to Pole magnetic image with 10 nanoteslas contours
(derived from ground magnetic data).
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Figure 4. High pass gravity image with magnetic contours.
Figure 5. Magnetic model showing size and calculated depth to potential main kimberlite body (shown in blue on the left side image).
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Figure 6. 3D model of two potential kimberlites on EL5347.
Figure 7. Diamond occurrences and tectonic setting in South Australia (source: MESA Journal 29, 2003). Approximate location of EL 5347 shown by black dot south of William Creek.
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Figure 8. Location of drilling for indicator minerals within the area surrounding EL 5347.
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JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques
Drilling techniques
Drill sample recovery
• Nature and quality of sampling (eg 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 (eg '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 (eg submarine nodules) may warrant disclosure of detailed information.
• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).
• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
• Not Applicable for ground magnetic and gravity surveys.
• Not Applicable for ground magnetic and gravity surveys.
• Not Applicable for ground magnetic and gravity surveys.
.
Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• Not Applicable for ground magnetic and gravity surveys.
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Criteria
|
JORC Code explanation
|
Commentary
|
• The total length and percentage of the relevant intersections logged.
|
Sub-sampling
techniques and sample preparation
|
• If core, whether cut or sawn and whether quarter, half or all core
taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.
|
• Not Applicable for ground magnetic and gravity surveys.
|
Quality of
assay data and laboratory
tests
|
• The nature, quality and appropriateness of the assaying and
laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
|
• Not Applicable for ground magnetic and gravity surveys.
|
Verification of
sampling and assaying
|
• The verification of significant intersections by either independent or
alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.
|
• Not Applicable for ground magnetic and gravity surveys.
|
Location of
data points
|
• Accuracy and quality of surveys used to locate drill holes (collar and
down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic control.
|
• Not Applicable for ground magnetic and gravity surveys.
• Magnetic and gravity data was collected using MGA Zone 53 (GDA94).
• Location data for the gravity survey was collected using a differential
GPS.
|
Data spacing
and distribution
|
• Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral
|
Envi proton magnetometer was used for both base station and roving
ground magnetic data collection. The roving Magnetometer data was collected using lines with separations of 100m and lengths of 3000m.
|
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Criteria JORC Code explanation Commentary
Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.
Readings were taken every 10m with Easting and Northing X-Y observations within the +/- 5m tolerances laid out in the project proposal, this was achieved using a Garmin GPSMap 60. A total of three east-west lines at 6765100N, 676500N and 6768100N points were carried to fulfill the 2 % station repeat requirement.
• Not applicable - data not used for resource estimation.
Orientation of data in relation to geological structure
• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
• Not Applicable for ground magnetic and gravity surveys.
• Not Applicable for ground magnetic and gravity surveys.
Sample security
Audits or reviews
• The measures taken to ensure sample security. • Not Applicable for ground magnetic and gravity surveys.
• The results of any audits or reviews of sampling techniques and data. • Not Applicable for ground magnetic and gravity surveys.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
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 surveys were undertaken on Exploration Licence 5347 which is
owned 100% by Monax Mining Limited. The tenement is located on
Anna Creek Pastoral Lease.
• The tenement is located within the green zone of the Woomera
Prohibited Area and within the Arabana Native Title Area.
|
Exploration
done by other parties
|
• Acknowledgment and appraisal of exploration by other parties.
|
• Several companies have explored for diamonds within the area.
Flinders Diamonds NL undertook a regional drilling program sampling the Algebuckina Sandstone for indicator minerals.
|
Geology
|
• Deposit type, geological setting and style of mineralisation.
|
• Kimberlite-hosted diamonds.
|
Drill hole
|
• A summary of all information material to the understanding of the
exploration results including a tabulation of the following information
|
• Not Applicable for ground magnetic and gravity surveys.
|
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Criteria JORC Code explanation Commentary
Information for all Material drill holes: .
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in
metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
• If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation methods
Relationship between mineralisation widths and intercept lengths
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
• These relationships are particularly important in the reporting of
Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
• Not Applicable for ground magnetic and gravity surveys.
• Not Applicable for ground magnetic and gravity surveys.
.
Diagrams • 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.
• Map showing location of survey area included in this report.
Balanced reporting
Other substantive exploration data
• 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.
• 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
• Not Applicable for ground magnetic and gravity surveys.
• Data from previous exploration has been previously released..
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Criteria
|
JORC Code explanation
|
Commentary
|
deleterious or contaminating substances.
|
Further work
|
• The nature and scale of planned further work (eg 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.
|
• Monax will review newly acquired magnetic and gravity data to assist
in determining the next phase of exploration.
|
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