ARGONAUT RESOURCES NL
ABN 97 008 084 848
argonautresources.com
ASX: ARE
CAPITAL STRUCTURE:
Issued shares: 654,340,318
Listed options: 38,004,957
(6c, Mar 2017)
Cash on hand: $1,318,000
DIRECTORS:
Patrick Elliott,
Non-Exec Chairman
Lindsay Owler,
Director/CEO
Andrew Bursill,
Director/Secretary
Malcolm Richmond,
Non-Exec Director
LITHIUM PROJECTS
Crescent Lake, Canada
Confirmed lithium pegmatites deposits
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Phase: Advanced Exploration
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Interest: Option to acquire 100%
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Agreement Phase: Assessment
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Operator: Argonaut
Greenbush Lake, Canada
High grade lithium pegmatite occurrence
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Phase: Exploration
-
Interest: Acquiring 100%
-
Operator: Argonaut
Lake Blanche, South Australia
Lithium brine target
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Phase: Greenfields Exploration
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Interest: 100%
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Operator: Argonaut
COPPER PROJECTS
Torrens, South Australia
Copper, gold (large IOCG)
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Phase: Access negotiation/ exploration
Quarterly report
FOR THE PERIOD ENDING 30 JUNE 2016
Argonaut Resources NL (Argonaut or the Company) (ASX: ARE) is pleased to present the following report on a progressive three month period to 30 June 2016 (the Quarter).
Highlights
Crescent Lake, Canada
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A six-hole program of drilling at the Falcon Lake West deposit (Figure 2) was completed.
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Drilling succeeded in intercepting two adjacent spodumene-bearing pegmatites with thicknesses of up to 24m and 15m.
-
The first batch of samples received featured an intercept of:
¬ 21.7m at 1.09% Li2O from 48.0m; including
¬ 7.9m at 1.31% Li2O from 49.8m in drill hole FLDD001.
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Further drill results are imminent.
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Argonaut has been granted a 100% interest in 22 Mining Claims in the Crescent Lake area.
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The claims cover one known spodumene pegmatite occurrence (Figure 2) plus large, under-explored areas of prospective terrain.
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The new claims cover an area of 54km2, increasing Argonaut's total holding in the project area to 80km2.
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Field-based exploration will recommence in August 2016.
Greenbush Lake, Canada
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Argonaut agreed to purchase the Greenbush Lake Lithium Pegmatite Project in Ontario, Canada.
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The project has confirmed high grades from existing rock chip samples. These include
2.46% Li2O, 1.96% Li2O and 15m (50 feet) at 1.25% Li2O.
Torrens, South Australia
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Federal Court native title decision due July/August 2016.
Business Development
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The Company is in discussions with parties in Chile, Argentina and Canada in relation to additional lithium projects.
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Discussions are underway on the acquisition of a significant gold project.
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Argonaut plans to add additional assets to its portfolio in the September quarter.
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Interest: Aeris Resources 70%, Argonaut 30%
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Agreement Phase: Exploration
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Operator: Argonaut
Registered Office
Suite 4, Level 9, 341 George Street Sydney, NSW, 2000, Australia
T +61 2 9299 9690
F +61 2 9299 9629
E [email protected]
Adelaide Office
Level 1, 63 Waymouth Street Adelaide, SA, 5000, Australia T +61 8 8231 0381
F +61 8 8231 6092
E [email protected]
1
Outlook
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Lithium market:
¬ Lithium demand continues to increase unabated.
¬ The application of lithium-ion batteries in the transport sector, particularly in China, is one the strongest growth stories seen in commodities for the last five years.
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Exploration success:
¬ Exploration drilling during the period at the Crescent Lake Project in Ontario has provided encouragement for continued exploration in the area.
¬ A brief program of surface exploration will be completed at Crescent Lake in August before contingent drilling is undertaken between September to October 2016.
¬ Low-impact exploration at Lake Blanche in South Australia will begin after the finalisation of licencing and the grant of statutory approvals.
¬ The Company expects to announce initial results from a newly acquired lithium project.
Canada
High grade metamorphic complex Metavolcanic dominant
Granitic dominant Metasedimentary dominant Proterozoic and Phanerozoic cover International border
Provincial boundary Coast/lake
Major city
Geological subprovince boundary Superior Province geological boundary Lithium mine/resource
Lithium occurence
Hudson Bay
Labrador Trough
Thompson Belt
MANITOBA
ONTARIO
Trans Hudson
Sachigo
Pakeagama Lake
CANADA
Greenbush Lake Project
James Bay
James Bay
Opinaca
Rose
Whabouchi
Tanco
Berens
East Pashkokogan
Uchi ER
BR
Crescent Lake Project
Seymour Lake
Moblan
Separation WR
Lake Nipigon
QueticoAbitibi
Grenville Province
Rapids Georgia Lake
Wabigoon
Lacorne/Quebec Lithium
Wawa
Thunder Bay
Lake Superior
QUEBEC ONTARIO
Subprovince names ER English River BR Bird River
WR Winnipeg River
Southern Province
Lake Michigan
Toronto
0 200
kilometres
UNITED STATES OF AMERICA
Canada 01
Figure 1: Geology of the Superior Province, Canada, showing Crescent Lake, Greenbush Lake and regional lithium occurrences.
2 Argonaut Resources NL | QUARTERLY REPORT | For the period ending 30 June 2016
Crescent Lake, Canada
(ARGONAUT ACQUIRING 100%)
On 4 March 2016, Argonaut released details of the Crescent Lake Lithium Project to the ASX. The initial acquisition included the Falcon Lake and Zigzag areas (Figure 2). On 8 June 2016, Argonaut announced the grant of
22 additional claims in the Crescent Lake area (Figure 2). These new claims are 100% held by Argonaut.
400,000m E 410,000m E 420,000m E
Falcon Lake Discovery
Falcon Lake West Falcon Lake Far West
Dempster East Falcon Lake East
5,590,000m N
North Aubry
Seymour Lake (Pye)
Tebishogeshik Dempster L28
Zigzag
Falcon Lake
Granitoids Metasediments Metavolcanics Diabase
South Aubry
5,580,000m N
Crescent Lake 11
0 5
kilometres
Unmapped area Water bodies/lakes
Recorded Lithium Pegmatites Tracks/trails
Geological boundary Fault
Argonaut Option Claims Argonaut Claims 100% Ardiden (ADV) Claims
Figure 2: Crescent Lake claim locations, pegmatite occurrences and geology.
Falcon Lake
There are four known pegmatite occurrences in the Falcon Lake area. The Falcon Lake West deposit comprises two south-easterly dipping spodumene-bearing pegmatites with true widths of up to 24m and 15m (Figure 3).
2016 Drilling Program
Earlier in the month, Argonaut completed a six-hole program of diamond core drilling at the Falcon Lake West deposit. The program targeted two pegmatite units, one of which outcrops boldly (Plate 1).
Highlights from the first batch of analytical results include:
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21.7m at 1.09% Li2O from 48.0m; including
-
7.9m at 1.31% Li2O from 49.8m in drill hole FLDD001. Further details are shown in Appendix 1.
Visually, core generated during the program confirmed the presence of the two targeted spodumene-bearing pegmatites. The lower pegmatite unit is up to 24m thick and the upper pegmatite unit is up to 15m thick (Figure 3). Spodumene mineralisation was logged throughout the pegmatite intervals. Spodumene concentrations vary from moderate to intense (Plate 2).
Initial laboratory results confirm the deposit's lithium grades. Further results are expected to be reported within two weeks.
Historic Exploration
The areas were drilled in the 1950s, during a Canadian lithium exploration boom, and then again in 2010-11. Neither drilling program was extensive. Drilling data from the 1950s was reported prior to the establishment of modern JORC and NI43-101 standards. The 1950s drilling was undertaken by British Canadian Lithium Mining Corporation. The 2010-11 drilling at Falcon Lake and Zigzag is reported to NI43-101 standards.
All previous drilling focused on surface or near-surface lithium bearing pegmatites.
Argonaut Resources NL | QUARTERLY REPORT | For the period ending 30 June 2016 3
5,592,020mN 418,340mE
418,360mE
5,592,000mN 418,380mE 418,400mE 5,591,980mN
418,420mE
5,591,960mN 418,360mE
NorthWest SouthEast
FLDD 001
FLDD 006
FLDD 002
360mRL
Cover Diabase
LCT pegmatite Metavolcanic
Results pending
340mRL
Results pending
-320mRL
[email protected]% Li2O from 48m
incl. [email protected]% Li2O from 49.8m
-300mRL
-280mRL
Crescent Lake 12
Results pending
20 metres
CANADA
CRESCENT LAKE PROJECT
Falcon Lake West Prospect Simplified Geological Section Initial Results
Looking northeast
Figure 3: Falcon Lake West geological cross section.
Plate 1: Outcropping spodumene-bearing pegmatite at the Falcon Lake West deposit.
4 Argonaut Resources NL | QUARTERLY REPORT | For the period ending 30 June 2016