Microsoft Word - 20141118 ORN ASX Announcement Geophysics Commences
ASX Announcement / Media Release
18 November 2014
ASX Code:ORN Issued Capital:
Ordinary Shares: 244M Options: 88M
Directors:Denis Waddell
Chairman
Errol Smart
Managing Director, CEO
Bill Oliver
Technical Director
Alexander Haller
Non-Executive Director
Management:Kim Hogg
Company Secretary
Martin Bouwmeester
Business Development Manager
Suite 2
64 Thomas Street
West Perth WA 6005
ABN 76 098 939 274
T: +61 8 9485 2685
E: [email protected]
W: www.oriongold.com.au
Ground EM Survey Commences at Pennor
Nickel-Copper Prospect, Fraser Range
High-powered MLEM survey targeting sulphide accumulations
Highlights:
Extensive Moving Loop EM (MLEM) survey commencing over coherent nickel anomalies defined by recent drilling over an extensive area within the Pennor mafic intrusion.
This will be the first test for the presence of sulphide accumulations within the Pennor Intrusion and the feeder zones to Pennor and HA2.
Detailed analysis of geochemical data previously confirmed that magmatic processes have occurred which are likely to concentrate nickel-copper in the plumbing system of the intrusions or in the basal area of the magmatic chambers.
Orion Gold NL (ASX: ORN) is pleased to announce that a crew is currently mobilising to the Pennor Prospect, part of the Company's Fraser Range Project in Western Australia, to commence a high-powered moving loop ground EM survey.
Shallow, first-pass drilling at Pennor in August successfully defined an extensive area spanning 1.8km2 of anomalous nickel values within a substantial mafic intrusive body (see ASX Releases - 2 September 2014 & 17 September 2014).
A review of geochemical data from this drilling indicated that the plumbing system of the intrusion and/or the basal areas of the magma chambers are the primary target for concentrations of nickel-copper bearing sulphides (see ASX Release 26 September 2014).
The EM survey will provide an initial test for electrical responses from possible massive sulphide accumulations below the depths tested in the shallow drilling. A high-powered IP survey is also being designed to test for possible large disseminated sulphide bodies, which would not be detected by EM.
The surveys will also test for possible feeder structures between HA2 and Pennor, which have been shown to be co-magmatic bodies by trace element geochemistry from drill samples.
Planned survey locations are shown as green lines on Figure 1 along with drilling results (previously released 17 September 2014). It is anticipated the EM survey will take 2-3 weeks to complete with results expected in 3-4 weeks.
The results are expected to assist the Company to define follow-up targets for deeper RC and diamond drilling at the Pennor Prospect.
Figure 1. Plan of Pennor Prospect, Fraser Range, with green lines showing current ground EM survey.
Entitlement Issue
As announced on 29 September 2014, the Company is undertaking a pro-rata renounceable entitlement issue of 1 ordinary share ('Share') for every 3 Shares held at an issue price of $0.03 per Share to raise up to approximately $2.4 million ('Entitlements Issue'). Eligible shareholders' entitlements are set out in the Entitlement and Acceptance Form sent with the Prospectus which was mailed to eligible shareholders on 30 October 2014. Shareholders will also be given priority to apply for shortfall shares in addition to their entitlement.
The principal objective of undertaking the Entitlements Issue is to raise sufficient funds to enable the Company to undertake follow-up exploration programs at its Fraser Range Nickel-Gold Project in Western Australia and its Connors Arc Epithermal Gold Project in Queensland.
The entitlement issue is underwritten to an aggregate of $1 million by Tarney Holdings Pty Ltd (related to the Company's Chairman Denis Waddell), Orion's Managing Director Errol Smart and shareholders Mr Michael and Mrs Susan Lynch and Mr Michael Fotios. Orion's Fraser Range joint venture partner and shareholder, Mark Creasy, has also committed to participate in the Entitlements Issue.
The closing date for acceptances under the Entitlement Issue is 21 November 2014. A copy of the Prospectus is available on both the ASX website (www.asx.com.au) and the Company's website (www.oriongold.com.au).
Errol Smart
Managing Director and CEO
Company Enquiries:
Errol Smart - Managing Director and CEO Denis Waddell - Chairman
T: +61 8 9485 2685
E: [email protected]
About Orion
Orion Gold is focused on acquiring, exploring and developing large tenement holdings or regional scale mineral opportunities in world-class mineral provinces. The Company has acquired quality projects in proven mineral provinces, including a substantial tenement holding in the Albany-Fraser Belt, host to Australia's two most significant discoveries of the last decade (the Tropicana Gold Deposit and the Nova Nickel-Copper-Cobalt Deposit). Part of this tenement holding was acquired from entities associated with Mark Creasy who is now a significant shareholder in Orion. The project area was previously explored by Western Areas Ltd who identified mafic-ultramafic intrusives within the project area as well as nickel-copper-cobalt-PGE anomalies. Orion's intensive, systematic exploration programs have successfully defined 23 targets to date by a combination of geological, geochemical and geophysical methods.
The Company has identified a significant intermediate sulphidation epithermal gold and silver system at Aurora Flats on the Connors Arc in Queensland. The project lies between the well known Cracow and Mt Carlton epithermal deposits. The Company is increasing its focus on this project, following promising reports from expert consultants.
Additionally the Company has an interest in the Walhalla Project located in Victoria, where it is focusing on exploration for Copper-PGE and has entered into an agreement with A1 Mining regarding the gold rights on the tenements.
The Company has an experienced management team with a proven track record in exploration, development and adding shareholder value.
Competent Persons Statement
The information in this report that relates to Exploration Results at the Fraser Range Projects complies with the 2012
Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ("JORC Code") and is based on information compiled by Mr Bill Oliver, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists. Mr Oliver is the Technical Director of Orion Gold NL and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Oliver consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Disclaimer
This release may include forward-looking statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Orion Gold NL. Actual results and developments may vary materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Orion Gold NL makes no undertaking to subsequently update or revise the forward- looking statements made in this release to reflect events or circumstances after the date of this release.