2871b0ad-6ce3-4b62-b591-c03a10218243.pdf
40 Murray Road North Welshpool WA 6106, Australia
PO Box 235, Welshpool DC WA 6986, Australia Telephone: 61 8 6253 1100
10 November 2015
Australian Securities Exchange Company Announcements Office
PROSPECTING RIGHT AWARDED AND UPDATE ON EXPLORATION ACTIVITES
Mineral Commodities Ltd ('MRC') is pleased to advise that it's South African Subsidiary, Mineral Sands Resources Pty Ltd (MSR) has been granted a new prospecting right by the Department of Mineral Resources - South Africa. Official signing of the prospecting right is set to occur on 13 November 2015.
The awarded prospecting right (WC 30/5/1/2/2/10199 PR - Figure 1) represents an area ~10 500ha in size seaward from its current mining (Tormin mine) and prospecting area's (WC 30/5/1/1/2/10036 PR).
The awarding of this right extends MSR's prospecting area up to 10km offshore from its current mining area. The prospecting area is to be investigated for its offshore heavy mineral sand potential that is currently the source of replenishment taking place on the beach held under mining rights (WC 30/5/1/2/2/162 & 163 MR).
MSR has conducted a bathymetric and sub-bottom sea floor profiling geophysical survey over the surf zone area held under PR 10036. The survey, conducted by an independent firm, will provide detailed information that is to be used to plan an underwater exploration drill sampling campaign. This survey is in support of the aeromagnetic and radiometric aerial survey work done during 2014 by Xcalibur Geophysics. The 2014 survey identified off-shore heavy mineral sand exploration targets (Fig. 2).
The company is finalising offshore drilling investigations with various contractors which will enable it to commence resource definition commencing in the surf zone in early 2016.
In addition to the awarded rights, MSR has lodged a new prospecting and bulk sampling application (WC 30/5/1/2/10226 PR) along the beach and surf zone north of its current mining operations (Fig. 3). This application represents a target area of ~24km along the coastline. Historical exploration work by non-related parties have indicated the area to be prospective for heavy mineral sand deposits. This application is current subject to a full public participation process and an environmental impact assessment for bulk sampling as is required under South African legislation.
The above activities are indicative of the long term plans of MSR to extend the heavy mineral sand resource of its Tormin mining operation and underpin the economic viability of its current operations.
For enquiries regarding this report please contact: Mark Caruso - Executive Chairman
+61 8 6253 1100
Figure 1 - Newly awarded prospecting area in green
Figure 2 : Aeromagnetic and high clipped uranium survey data
Figure 3 : Area subject to a new prospecting application
Competent Person
The information in this announcement which relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Adriaan du Toit, who is a Member of the Australian Institute of Mining & Metallurgy ('AusIMM') and independent consultant to the Company. Mr du Toit is the Director and principal geologist of A E MC O Pty Ltd and has over 23 years of exploration and mining experience in a variety of mineral deposit styles. Mr du Toit 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, Exploration Targets, Mineral Resources and Ore Reserves' (JORC Code, 2012 Edition).