10a47e39-e632-4fb7-a8ac-4a1588bc2325.pdf
ARGONAUT RESOURCES NL
ABN 97 008 084 848
argonautresources.com
ASX: ARE
CAPITAL STRUCTURE:
Issued shares: 443,791,701
Listed options: 38,004,957
(6c, Mar 2017)
Unlisted options: 10,000,000
(15c, Dec 2015)
Unlisted options: 7,000,000
(10c, Dec 2015)
Cash on hand: $690,000
DIRECTORS:
Patrick Elliott,
Non-Exec Chairman
Lindsay Owler,
Director/CEO
Andrew Bursill,
Director/Secretary
Malcolm Richmond,
Non-Exec Director
COPPER FOCUS
Lumwana West, Zambia
-
Copper, cobalt (bulk tonnage)
-
Advanced exploration stage
-
Funding by option agreement
-
Antofagasta earning 70%
-
Argonaut operator
Torrens, South Australia
-
Copper, gold (large IOCG)
-
Access negotiation/ exploration stage
-
Pro-rata funding under JV
-
Straits Resources Ltd 70%, Argonaut 30%
-
Argonaut operator
Alford, South Australia
-
Copper (IOCG)
-
Exploration stage
-
Funding via farm-out
-
Sandfire Resources NL earning 70%
-
Sandfire operator
Quarterly report
FOR THE PERIOD ENDING 30 SEPTEMBER 2015
Argonaut Resources NL (Argonaut or the Company) (ASX: ARE) is pleased to provide the following report for the three months to 30 September 2015 (the Quarter).
Highlights
Lumwana West, Zambia
Exploration program:
-
An 11 hole diamond core drilling program for a total of 2,006m was completed in July 2015 at five prioritised copper targets.
-
The collection and analysis of over 1,000 new soil samples was completed in the Quarter.
-
This program substantially completed the first phase of an option agreement with Antofagasta. The results of this program are being assessed.
Kabikupa prospect:
-
2015 drilling at Kabikupa prospect sought to extend the mineralised strike extent to 1,800m.
-
Significant copper mineralisation was not intercepted by drilling outside of the main surface anomaly, meaning subsurface copper mineralisation is likely to be confined to a strike length of approximately 1,000m.
Kamafamba prospect:
-
Three drill holes for 409m were drilled at the Kamafamba prospect. Highlights from this drilling included:
¬ KMDD001: 15.85m at 0.30% copper from 41m
¬ KMDD003: 17.6m at 0.40% copper from 134.5m, including 5.6m at 0.67% copper from 146.5m
Regional drilling program:
-
Three additional targets known as Sharamba, Luamvunda and Mufuka that were defined by soil sampling and structural geology interpretation were drill tested between May and July 2015.
-
No significant mineralised intercepts were returned from these targets.
Outlook
-
Argonaut's major projects benefit from farm-in or joint venture arrangements with funding partners.
-
Current low asset valuations is providing a unique opportunity to secure additional high quality exploration projects.
-
Argonaut is evaluating numerous opportunities with a view to adding new assets to the Company's portfolio.
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
Zambia
Lumwana West (Argonaut 90%)
The Lumwana West project is located in the Central African Copperbelt, North-Western Province, Zambia (Figure 1). The area is prospective for large tonnage, low to medium grade copper deposits. There are several major mines nearby to Lumwana West that are hosted in similar geological settings.
Argonaut, via its 90% held subsidiary, Mwombezhi Resources Ltd, has been successful in intercepting broad copper intercepts at the Nyungu deposit and has defined a series of large, prospective targets that have now undergone first- pass drill testing.
350,000 mE 400,000 mE
DEMOCRATIC REPUBLIC OF CONGO
Location
ZAMBIA
Argonaut
LUMWANA WEST
Nyungu Deposit and target areas
First Quantum
KANSANSHI
-
Bt at 0.81% Cu
Under expansion to 400,000tpa copper
8,650,000 mN
ZAMBIA
First Quantum
SENTINEL
-
Bt at 0.50% Cu
300,000tpa copper from 2015
16121-HQ-LPL
Barrick
LUMWANA
0 25
kilometres
Road
Nyungu Deposit and targets
1.1Bt at 0.50% Cu
170,000tpa copper - nameplate
Tenement boundary
Mineral deposit projected to surface
Target areas
Lumwana11
Figure 1: The Domes Region has an international scale copper endowment and is host to the new generation of mines in the Central African Copperbelt
Exploration Program
Key points
-
The drilling program completed in early July 2015 was designed to test large footprint copper targets defined by surface geochemistry, geological mapping and structural geology interpretation.
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The 2014/15 program now comprises over 8,100m of drilling, plus geological mapping and soil sampling. To date, 36 diamond core drill holes have been completed and 12,947 soil samples collected and analysed.
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2,006m of additional diamond core drilling was completed between May and July 2015.
-
The 2015 exploration program completes the first phase of an option agreement with Antofagasta.
-
Antofagasta can earn a 25% interest in the Lumwana West project at the completion of the first phase by funding US$3.9m of exploration.
The 2014/15 program was the first exploration phase under the option agreement between Argonaut and a wholly owned subsidiary of Antofagasta plc (Antofagasta), dated 28 April 2014 (the Overlying Agreement). According to the Overlying Agreement, exploration expenditure of US$3.9m in the first period earns Antofagasta a 25% interest in the project.
The 2014/2015 program was jointly planned by Argonaut and Antofagasta. The first phase exploration program was completed in July 2015 and included a total of 8,129m of diamond core drilling plus the collection and analysis of 12,947 soil samples.
The focus of the program was on testing major target areas, previously defined by Argonaut, as well as new targets that were progressively generated by an extensive regional soil sampling program.
2 Argonaut Resources NL | QUARTERLY REPORT | For the period ending 30 September 2015
340,000 mE 350,000 mE 360,000 mE
Kavipopo Prospect
8,650,000 mN
West Mwombezhi Prospect
ZNS
Prospect
LMW
Prospect
Pr
Mufuka ospect
D o m e
8,640,000 mN
Sharamba Prospect
Kabikupa Prospect
wo M
Lua
Pro
m b e z h i
mvunda
spe
ct
kezhi spect
ro
Shi P
Nyu
ngu Deposit
Kamafamba Prospect
8,630,000 mN
16121-HQ-LPL
LumwanaW_13
0 5
kilometres
ZAMBIA
Location
ZAMBIA
ZAMBIA
Licence boundary Drainage path (Dambo)
Road Track
Prospect (+40ppm Cu soil sampling)
Figure 2: Lumwana West Large-scale Prospecting Licence and prospect locations.
Of the total drill meterage, 6,123m were drilled during the 2014 field season with holes targeting the following areas: West Mwombezhi, Kavipopo, ZNS, LMW, Mufuka, and Kabikupa prospects plus the Nyungu deposit (Figure 2).
An additional 2,006m were drilled between May and July 2015 targeting geochemical anomalies and structural targets at Kabikupa, Kamafamba, Mufuka, Sharamba and Luamvunda prospects (Figure 2).
Kamafamba
The Kamafamba target sits near the southern margin of a large granite body. The prospect is defined by a 1,100m soil geochemistry anomaly. Structural interpretation indicates the geochemical anomaly is coincident with a thrust system related to the granite margin. The presence of the thrust system is interpreted to enhance the prospectivity of the target due to increased scope for the emplacement of mineralised fluids.
Drill intercepts reported in the Quarter for the Kamafamba prospect are shown in Figures 3-5 and in Table 1.
Argonaut Resources NL | QUARTERLY REPORT | For the period ending 30 September 2015 3
348,500 mE 349,000 mE 349,500 mE
8,620,500 mN
0 200
metres
KMDD001
[email protected]% Cu from 41m
KMDD002
[email protected]% Cu from 41m
KMDD003
[email protected]% Cu from 134.5m including [email protected]% Cu from 146.5m
Soil geochemistry Cu (XRF) 200 ppm
100 ppm
40 ppm
Drilling
Drill collar with surface projection of drillhole
8,628,000 mN
KAMAFAMBA PROSPECT
Drillhole location plan
Kanafamba_03
Figure 3: Kamafamba soil anomaly contours and drill intercepts.
North
8,628,400mN 8,628,300mN 8,628,200mN 8,628,100mN
South
KMDD001
Surface geochemical peak (>100ppm)
Top of fresh rock
1,200mRL
[email protected]% Cu from 41m
TD
1,100mRL
,000mRL
Soil cover Biotite gneiss
Sulphide mineralised biotite kyanite schist
Biotite kyanite schist/gneiss
1 Amphibolite and biotite gneiss
KAMAFAMBA PROSPECT
KMDD001 Section
Looking east
Simplified interpretation
100 metres
Kamafamba_02
Figure 4: Kamafamba KMDD001 cross section.
4 Argonaut Resources NL | QUARTERLY REPORT | For the period ending 30 September 2015