Microsoft Word - 2015_10_29_1st Qtr (30Sep15) - Quarterly Activities Report
Quarterly Report
FOR THE PERIOD ENDING 30 SEPTEMBER 2015
Significant Events
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Agreement entered to acquire the Munglinup project, a highly prospective graphite-nickel sulphide project located in the Albany-Fraser Range province of Western Australia
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Two large-scale VTEM anomalies prospective for near-surface, large-tonnage graphite mineralization and additional nickel sulphide drill targets identified at Munglinup
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Drill preparations commenced for initial testing of Munglinup prospects in the current quarter
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Drilling completed within Eastern Eyre project intersects anomalous copper mineralisation within extensive mafic volcanic sequence at Extension Tank prospect and strongly anomalous lead, zinc and copper within Angle Dam fault area
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Planning commenced for additional geophysical testing at Eastern Eyre, including induced polarisation survey planned for current quarter over Angle Dam fault prospects
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As of 30 September 2015, Renascor had approximately $1.123 million cash on hand
Exploration
MUNGLINUP PROJECT
During the recently completed quarter, Renascor entered into an agreement to secure the rights to the Munglinup project, a highly prospective graphite- nickel sulphide tenement position in the Albany-Fraser Range province of Western Australia. The project tenements are located immediately adjacent to the Halbert's graphite deposit (1.9Mt @ 19.2% total contained graphite), currently being developed by unlisted Gold Terrace Pty Ltd, and include intersections of up to 34.9% total graphitic carbon (TGC) within a target horizon of over 25km. The project is also highly prospective for nickel sulphide, as it is situated in the
Lake Johnston ultra mafic greenstone belt within 15km of First Quantum
Figure 1. Renascor's newly secured Munglinup project (in blue), showing major mineral occurrences and regional structures
Mineral Limited's (TSX: FM) Ravensthorpe nickel mine and 40km of Poseidon Nickel Limited's (ASX: POS) Maggie Hays and Emily Ann nickel sulphide deposits.
Graphite prospects
Renascor has identified multiple drill-ready VTEM and SkyTEM targets prospective for coarse flake, high- grade graphite of the type located within the adjacent Halbert's deposit. Halbert's is among Australia's highest-grade graphite deposits, with a reported JORC-compliant measured and indicated resource of 1.47Mt at a fixed carbon content of 18.2%1. Sixty-seven percent (65%) of the recoverable graphite from Halbert's is reportedly coarse flake (+150 micron), with 33% classified as jumbo flake (+300 micron)2. Gold Terrace Pty Ltd, an unlisted company, recently purchased the Halbert's deposit for approximately
$2.5 million cash consideration.
Figure 2. Munglinup project, showing VTEM and SKYTEM late channel conductivity for central portion, superimposed on a background of magnetics
1 As reported in Geological Survey of Western Australia (GSWA) Mineral Resources Bulletin 26, in 2015, graphite mineralisation in the Main Halbert's zone has a 'resource estimate 2 subsequently upgraded to a JORC compliant measured and indicated resource by Clifford (2009) to 1.47Mt at a fixed carbon content of 18.2% TC (total carbon) over a strike length of 555m to an average depth of 55m. This resource calculation for Halbert's Main Zone was based on an in situ ore density of 1.91 t/m3 with a fixed carbon cutoff of 5% TC, and a minimum true thickness of 1.0m for tabular graphite bodies.'
2 Mineralisation Report in Support of Application for Mining Lease for M74/24, October 2009.
ACN 135 531 341
36 North Terrace, Kent Town, SA 5067
Phone: +61 8 8363 6989 • Fax: +61 8 8363 4989
ASX code: RNU 2
The regional structure that hosts the Halbert's deposit, the Halbert's Shear Zone, extends through Renascor's new project area over approximately 25km strike extent. See Figure 2. Limited previous drilling within this structure, on E74/518 in Munglinup Central (to the immediate south of the Halbert's graphite deposit) intersected high-grade graphite, including narrow graphite zones containing up to 34.9% TGC3. To the immediate north of the Halbert's deposit, the Halbert's Shear Zone extends for approximately 20km to the north on newly acquired E74/517 and E74/531. A recently completed electromagnetic (VTEM) survey over this northern extension has identified several prospective conductive targets that Renascor considers high priority targets for Halbert's-style graphite deposits, including the Shiraz and Pinot graphite prospects.
Shiraz prospect
The Shiraz prospect is defined by an extensive, +2 km-strike conductive zone, which is coincident with the interpreted northern continuation of the regional Halbert's shear zone. Two parallel confined conductors each of approximately 800 metres strike-length are defined in 'late-time' VTEM data for the southern portion of the zone. See Figure 3. Renascor considers the Shiraz prospect to be a high priority target for near surface, large tonnage graphite of the type located at the Halbert's graphite deposit to the south. The upcoming drill program will include coverage of the southern portion on the anomaly.
Figure 3. Shiraz prospect VTEM image and contours for Channel 48, Zcomponent
3 GSWA Bulletin 26. See also Lithex Resources Limited ASX release dated 5 July 2013.
Pinot prospect
The Pinot prospect is located immediately to the northeast of Halbert's graphite deposit and appears as a large, +1 km-strike late time VTEM conductor. Based on interpretation of available aeromagnetic data, Renascor considers that the conductor is situated at the intersection of a prominent northeast trending fault and the offset northward continuation of the controlling Halbert's regional shear structure. Geological mapping of the Halbert's project area indicates that the northeast trending fault may have significant control on development of graphite mineralization in the Harris' and McCarthy zones of the Halbert's project. See Figure 4.
Figure 4. Pinot prospect - VTEM Channel 48 image, interpreted structures and mineralised zones for Halbert's graphite project (source: Adelaide Prospecting Pty Ltd Technical Report, E74/308 dated August 2009)