Suite 60, Level 6 Tower Building
Chatswood Village
47-53 Neridah Street
Chatswood NSW 2067
T: + 61 2 8223 3744
F: + 61 2 8223 3799
E: [email protected]www.zamia.com.au
25 March 2015
ASX Limited, Centralised Company Announcements Office
Exchange Centre 20 Bridge Street
Sydney NSW 2000
SUBSTANTIAL GOLD ANOMALIES IN SOIL - EPM 17703 DISNEY TENEMENT
Highlights:
Zamia is progressing its exploration work on the EPM 17703 (Disney) tenement in parallel with the preparation for follow-up drilling of the Belyando Gold Project (EPM 15145 - Mazeppa Extended)
Gold assays recently returned on south Disney soil targets indicate a 1.2 kilometre ('km') long gold- in-soil anomaly with a distinct northeast-southwest trend
The anomaly is significantly larger than the original footprint of the Big Red prospect defined by
BMA Gold in 2005 (originally
The consistent gold anomaly reaches a maximum of 200 parts per billion ('ppb') or 0.2 grams per
ton ('g/t') gold in soil and remains open to the southwest and northeast
Anomalous gold assays are associated with elevated values of arsenic, molybdenum, antimony, tellurium and thallium
The anomaly overlies a northeast-southwest magnetic low visible in regional aeromagnetic data
The trend of the coincident gold and magnetic anomaly is perpendicular to the local strike of geological units, suggesting that the target represents a mineralised tectonic structure
Follow-up work is being planned to establish a vector towards the likely centre of mineralisation
Soil Sampling Program
In 2013 Zamia undertook large scale soil sampling over EPM 17703 - Disney (Figure 1). The sampling programme encompassed 1215 b-horizon
200m sample spacing, covering an area of approximately 22 square km. To curtail costs, assaying was initially limited to selected pathfinder elements characteristic of Drummond Basin gold deposits (see Table
1). The survey succeeded in detecting the anomalous surface geochemistry of previously drilled gold targets Apache and Big Red (ELP 2008, QDEX CR52303) and new poly-metallic anomalies Kenai, Koda and Pelican Creek (ASX: ZGM 30 April 2014). In October 2014, 87 samples from the large scale soil sampling programme were selected to test each of the detected anomalies. These samples were re-assayed for gold using aqua regia digest of sample pulp finished by atomic absorption spectroscopy ('AAS') analysis. Promising gold assay results (ASX: ZGM 30 January 2015) led to the dispatch of a second group of 81 samples, centred on the 'Big Red' gold target. Results determined by the same method of analyses were returned in March 2015.
ZAMIA Metals Limited ABN 73 120 348 683
Page 2
Figure 1: Zamia Metals exploration tenements shown on simplified regional geology. Location of the Big Red prospect and Belyando Project are highlighted. Coordinates given are WGS 84.
Table 1: Anomalous element suite across Drummond Basin epithermal gold deposits and Zamia gold prospects on EPM 17703 - Disney.
Known Deposit Au Ag As Ba Bi Cu F Hg Mo Pb Te Tl Sb Sn Zn Reference
Pajingo Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Parks & Robertson (2003) Mt Coolon Yes Yes Morrison & Beams (1998) Wirralie Yes Yes Yes Yes Yes Morrison & Beams (1998) Yandan Yes Yes Yes Yes Yes Yes Yes Carver & Chenoworth (2003) Twin Hills Yes Yes Yes Yes Yes Yes Yes Yes Yes Morrison & Beams (1998) Zamia Prospect
Apache Yes No Yes No No Yes No Yes No Yes No No Zamia (2013, unpublished)
Bendee Yes No Yes No No No Zamia (2012, unpublished) Big Red Yes No Yes No No Yes No Yes Yes Yes No No Zamia (2013, unpublished) WMT Yes No Yes No Yes Yes Yes No Yes Yes No Yes Zamia (2012, unpublished) Kenai No Yes Yes No No No Yes No No Yes No No Zamia (2013, unpublished) Koda No No No Yes No Yes No Yes No No No No Zamia (2013, unpublished)
Pelican Creek No Yes No No Yes No Yes No Yes No Yes Yes Zamia (2013, unpublished)
ZAMIA Metals Limited ABN 73 120 348 683
Page 3
Gold Assay Results
Gold assay results returned in November 2014 were analysed using statistical methods and showed a good correlation with anomalous stream sediment and soil thresholds established at the regionally relevant Yandan project (Carver & Chenoweth, CRC LEME 2003). Based on this study, soil assays of 7 ppb gold or higher are considered anomalous over an observed regional background of 2 ppb gold. Using this threshold, the established gold targets Apache and Big Red produced samples with anomalous gold assays (7-36 ppb gold; Figure 2). Samples from the Big Red prospect returned the highest gold values (maximum of 36 ppb) and anomalous samples were observed along a north-south spread of 800m. This geochemical footprint was regarded as significantly larger than the 300m east-west strike length reported by previous explorers (ELP 2008, QDEX CR52303). To follow-up this result, Zamia submitted a further 81 samples from the Big Red target for gold assaying.
Figure 2: Classified gold assay results from Zamia 2013 conventional b-horizon
ZAMIA Metals Limited ABN 73 120 348 683
Page 4
Results returned in March 2014 indicate a 1.2 km long gold-in-soil anomaly with a distinct northeast- southwest trend (Figure 2). The anomaly is significantly larger than the original footprint of the Big Red prospect as defined by BMA Gold in 2005 (originally
Figure 3: Classified gold assay results from Zamia 2013 conventional b-horizon
55S.
ZAMIA Metals Limited ABN 73 120 348 683
Page 5
Recommendation of Follow-Up Exploration
The Company plans to submit additional sample pulps for gold assaying with the aim to close off the gold anomaly to the south-west. Follow-up work should also consist of further mapping, infill soil sampling (50m centres) and rock chip sampling with the aim to establish a vector towards the likely centre of mineralisation. Fieldwork should result in a proposal for RAB drill testing then potentially RC and diamond drilling over the anomalies.
Richard Keevers
Chairman, Zamia Metals Limited
Mr Richard Keevers MAIG FAusIMM, Chairman and Director of Zamia Metals Limited, compiled the geological technical aspects of this report. He has sufficient experience 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 Keevers consents to the inclusion of the matters in the form and context in which they appear and takes responsibility for the data quality.
ZAMIA Metals Limited ABN 73 120 348 683
Page 6
Background of EPM 17703 - Disney's Big Red Prospect
The Big Red gold prospect (Figure 4), located 5 km south of Evolution Mining's Lone Sister deposit, was discovered by BMA Gold Ltd during reconnaissance traversing in 2004. A zone of north-northeast trending hydrothermal breccia vein float and sub-crop was identified on a subdued rise of red brown granitic soils. Shallow costeaning returned anomalous assays between 0.28 ppm and 0.92 ppm gold from up to 30 cm wide quartz veins trending 040° (magnetic), which splay off a main silicified structure trending 015° (magnetic). Mineralised veins are reported to feature silica-sericite alteration selvage up to 4m wide.
In 2005, three reverse circulation drill holes were drilled to test the zone outlined above to 120m vertical depth. All three holes intersected a quartz veined zone within variably weathered and altered quartz-biotite granite. Drill hole locations and anomalous intervals are summarised in Table 2. Detailed drilling results are not available on open file. The highest gold intervals occurred within or adjacent to the main quartz vein zone within crustiform to comb-textured milky quartz±pyrite veinlets. In all holes, the quartz zones occur within silica-sericite altered granite. The lower depths of drill hole WBRRC001 are reported to contain trace fluorite.
Table 2: Details and significant gold intersections of BMA Gold Ltd 2005 RC percussion drill holes on the
Big Red prospect. Coordinates given are AMG66, Zone 55S. Note that the hole collar locations are less than
100m apart.
Hole ID Easting [m] Northing [m] Azimuth [º] Dip [º] Length [m] Best Gold Intercept WBRRC001 508500 7563845 285 -60 88 8m @ 0.42 ppm from 72m WBRRC002 508518 7563837 285 -60 118 3m @ 0.34 ppm from 68m WBRRC003 508546 7563829 205 -60 178 1m @ 1.78 ppm from 126m
BMA Gold Ltd relinquished the tenement containing the Big Red prospect in June 2008. No further work has been reported.
Figure 4: Panorama of the Big Red prospect, looking towards the northeast. Note the concreted collar of a
BMA RC percussion drill hole in the centre left of the picture.
ZAMIA Metals Limited ABN 73 120 348 683
JORC Code, 2012 Edition - Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
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Sampling
techniques
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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.
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Conventional b-horizon
Thresholds used to determine the relevance of results are discussed in detail within the announcement.
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Drilling Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, Drilling data quoted in the announcement refers to reverse-circulation
techniques auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard drilling conducted by BMA Gold Ltd in 2005 and is directly quoted
tube, depth of diamond tails, face-sampling bit or other type, whether core from:
is oriented and if so, by what method, etc). Environmental & Licensing Professionals Pty Ltd ('ELP'), 2008: Twin Hills Operations Pty Ltd, EPM 12012, Partial Relinquishment Report for 75 Sub-Bocks. QDEX Company Report No. 52303
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Drill sample
recovery
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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.
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Not known.
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Logging Whether core and chip samples have been geologically and geotechnically Not known.
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.
The total length and percentage of the relevant intersections logged.
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Criteria JORC Code explanation Commentary
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Sub-sampling
techniques and sample preparation
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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.
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Soil samples were dried, pulverised and screened to
duplicates were employed.
Techniques not known for BMA Gold Ltd 2005 RC drilling.
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Quality of assay The nature, quality and appropriateness of the assaying and laboratory Aqua regia dissolution was used to extract the assayed element from data and procedures used and whether the technique is considered partial or total. the pulverised sample. This is considered a partial leach method. laboratory tests For geophysical tools, spectrometers, handheld XRF instruments, etc, the No geophysical data has been used to prepare this report.
parameters used in determining the analysis including instrument make Internal laboratory standards and blanks were used to control the and model, reading times, calibrations factors applied and their derivation, quality of soil assays. Acceptable levels of accuracy and precision etc. were established.
Nature of quality control procedures adopted (eg standards, blanks, Laboratory techniques and quality control procedures not known for
duplicates, external laboratory checks) and whether acceptable levels of BMA Gold Ltd 2005 RC drilling.
accuracy (ie lack of bias) and precision have been established.
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Verification of
sampling and assaying
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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.
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Assay results were received from the laboratory in digital form and stored directly on the company file server. No adjustments have been made to the reported assay data.
Not known for BMA Gold Ltd 2005 RC drilling.
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Location of data Accuracy and quality of surveys used to locate drill holes (collar and down- All soil samples were located using a hand-held GPS receiver with an
points hole surveys), trenches, mine workings and other locations used in Mineral accuracy of 4m. The grid system used in the field was MGA94, Zone
Resource estimation. 55S. Grid systems used in the figures and tables presented are
Specification of the grid system used. stated in the captions.
Quality and adequacy of topographic control. Not known for BMA Gold Ltd 2005 RC drilling.
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Data spacing and
distribution
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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
Resource and Ore Reserve estimation procedure(s) and classifications
applied.
Whether sample compositing has been applied.
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Soil samples were spaced 100m apart on east-west lines. Sample lines were spaced 200m apart in a north-south direction.
No Mineral Resources or Ore Reserves are reported in this release.
Not known for BMA Gold Ltd 2005 RC drilling.
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Criteria JORC Code explanation Commentary
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Orientation of Whether the orientation of sampling achieves unbiased sampling of Not applicable as the type of possible mineralisation at the Big Red
data in relation to possible structures and the extent to which this is known, considering the prospect is yet unknown.
geological deposit type. Not known for BMA Gold Ltd 2005 RC drilling.
structure 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.
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Sample security
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The measures taken to ensure sample security.
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Samples are stored at a secure location near Zamia's central QLD field office. Zamia employs long-standing relationships with local couriers and laboratories that have a proven history of safe and secure sample handling.
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Audits or reviews The results of any audits or reviews of sampling techniques and data. Zamia employs industry standard soil sampling and sample handling procedures.
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Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
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Mineral
tenement and land tenure
status
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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.
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EPM 17703 - Disney and EPM 15145 - Mazeppa Extended, are held (100%) by Zamia Resources Pty Ltd which is a wholly owned subsidiary of Zamia Metals Ltd.
No known issues impeding on the security of the Zamia's tenure or ability to operate in the area exist.
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Exploration Acknowledgment and appraisal of exploration by other parties. The Big Red prospect was discovered by BMA GOLD Ltd in done by other 2004. The history it's discovery and previous exploration is parties summarised within the announcement.
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Geology
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Deposit type, geological setting and style of mineralisation.
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Big Red is assumed to contain vein-type, low-sulphidation epithermal style gold mineralisation. It is hosted within early Carboniferous granites and volcanics of the Drummond Basin, Sequence 1.
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Drill hole A summary of all information material to the understanding of the Drilling data quoted in the announcement refers to reverse-
Information exploration results including a tabulation of the following circulation drilling conducted by BMA Gold Ltd in 2005 and is
information for all Material drill holes: directly quoted from:
o easting and northing of the drill hole collar Environmental & Licensing Professionals Pty Ltd ('ELP'), 2008:
o elevation or RL (Reduced Level - elevation above sea Twin Hills Operations Pty Ltd, EPM 12012, Partial
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Criteria JORC Code explanation Commentary
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level in metres) of the drill hole collar Relinquishment Report for 75 Sub-Bocks. QDEX Company
o dip and azimuth of the hole Report No. 52303
o down hole length and interception depth To gain access to the cited company reports, browse to:
o hole length. o http://www.dnrm.qld.gov.au/map
If the exclusion of this information is justified on the basis that the ping-data/qdex-reports
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.
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Data
aggregation methods
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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.
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Soil sampling data was provided as classifies maps. Thresholds chosen to classify soil data are given within the figures and discussed in detail within the announcement body.
All drilling results were reported as provided in the source data.
No truncations of high or low assay results was undertaken
No metal equivalent values were reported in this release.
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Relationship These relationships are particularly important in the reporting of Not known for BMA Gold Ltd 2005 RC drilling. All reported between Exploration Results. intercepts and are assumed to represent down-hole lengths. mineralisation If the geometry of the mineralisation with respect to the drill hole
widths and angle is known, its nature should be reported.
intercept If it is not known and only the down hole lengths are reported,
lengths there should be a clear statement to this effect (eg 'down hole length, true width not known').
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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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Refer to figures 1-3 in the report body.
Maps and sections for BMA Gold Ltd 2005 RC drilling are not available in the public source data.
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Balanced Where comprehensive reporting of all Exploration Results is not All available soil assay results have been shown in Figures 1-3.
reporting practicable, representative reporting of both low and high grades All publicly available results for BMA Gold Ltd 2005 RC drilling
and/or widths should be practiced to avoid misleading reporting have been given in Table 2.
of Exploration Results.
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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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To the best knowledge of the author, all available data relevant to the Big Red prospect has been presented/summarised and discussed in the announcement.
In regards to the assessment of anomalous gold-in-soil values, reference was given to:
Craver, R.N., and Chenoweth, L.M., 2003: Yandan Gold Deposit, Drummond Basin, QLD. CRC LEME. Available at:
http://crcleme.org.au/RegExpOre/Yandan.pdf
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Criteria JORC Code explanation Commentary
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Other information both on the nearby Twin Hills 309 Mine, the Lone Sister gold deposit and the regional and local geology exist. This information is (1) too large in volume to be meaningfully
summarised in the scope of this release or this table and (2) fully
available to the public in the form of company exploration progress reports though the QDEX report system:
o http://www.dnrm.qld.gov.au/mapping-data/qdex-reports
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Further work The nature and scale of planned further work (eg tests for lateral Planned work has been detailed in the release.
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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