Matsa Resources Limited
LIMITED
ABN 48 106 732 487
ASX Announcement 23rd April 2015
Significant Geological Features Support EM Conductors
Symons Hill, Fraser Range
Highlights
Geological, geophysical and bedrock geochemical similarities with Nova nickel mine recognised at conductors C42 and C56 strongly supports their high prospectivity for Ni-Cu sulphides
Conductor C56 is located on a gravity and magnetic high trend which wraps around high priority Ni-Cu soil and bedrock geochemical anomaly SHG01
Conductor C42 is located adjacent to a discrete gravity high, is aligned with magnetic trends and overlies bedrock Cu geochemical anomaly SHG09
Strong similarities are also seen between the structural setting of the conductors and that of the Nova deposit
Diamond drillhole planning well advanced
CORPORATE SUMMARY
Executive Chairman
Paul Poli Director Frank Sibbel
Director & Company Secretary
Andrew Chapman
Shares on Issue
144.15 million
Unlisted Options
14.85 million @ $0.25 - $0.43
Top 20 shareholders
Hold 51.12%
Share Price on 22 April 2015
16.5 cents
Market Capitalisation
$23.79 million
Head Office:
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Suite 11, 139 Newcastle Street, Perth Western Australia 6000
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Tel: +61 8 9230 3555 Fax: +61 8 9227 0370
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Bangkok Office:
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Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110
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Tel: +66 0 2653 0258 Fax: +66 0 2653 0258
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[email protected]www.matsa.com.au
Matsa Resources Limited
Matsa Resources is pleased to announce findings of a review of the validity and prospectivity of its conductors recently identified from its ongoing high power fixed loop EM (HPFLEM) survey at Symons Hill situated 6km south of the Nova nickel mine. Survey design (Appendix 1), commencement and progress have been included in previous announcements to the ASX. (MAT reports submitted to the ASX on 7th October 2014, 22nd December 2014, 30th January 2015, 3rd March 2015, 13th March 2015 and 13th April 2015).
An analysis and detailed review into Matsa's newly announced C42 and C56 conductors strongly supports Matsa's view that these conductors represent high quality, significant bedrock targets that could reflect Ni-Cu sulphide mineralisation.
Executive Chairman Mr Paul Poli stated "the geological, geophysical and geochemical anomalies associated with conductors C42 and C56 provides Matsa with further confidence that we have got possible nickel sulphides. The fact that all these signatures are present and correlate with the conductors indicates to me that we have at least 2 good
quality targets here. We remain committed to drill these targets with deep diamond drilling, as soon as possible."
Gravity Gradient Image Total Magnetic Intensity Image
C42 C42
C56 C56
Figure 1: Image of C42 and C56 conductots over gravity, magnetics and AC EOH XRF anomaly contours (Blue = Ni, Green = Cu).
Key summary points of the conductive target review include the following:
Conductor 42 (C42) lies adjacent to a coincident gravity and magnetic high. The gravity high is a local, discrete anomaly adjacent to a magnetic high trend (Figure 1). Similarities are seen with Nova's conductor which is also adjacent to, but not over a gravity high and on the eastern edge of a magnetic high (ASX: SIR 28 February 2013). The localised gravity and magnetic high is interpreted to represent a magma vent, the transport mechanism for magmatic fluids, which has excellent potential to host magmatic nickel/copper sulphides.
Both C42 and C56 lie on the eastern edge of a paleochannel (approximately located along blue shading in the right hand image in Figure 1). The paleochannel is interpreted to reflect preferential weathering along a deep seated fault. Deep seated crustal faults are considered to be preferred pathways for magmatic fluids.
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Both C42 and C56 lie parallel to local magnetic trends. The Nova conductor is also parallel to a local magnetic trend
(ASX: SIR 18 April 2012).
Both C42 and C56 are interpreted to lie on prospective stratigraphy which has been folded. One of Sirius's key exploration concepts was to target potential areas of prospective stratigraphy that has been domed, folded or attenuated. (Reference: Foster, J. 2013. The Nova-Bollinger Magmatic Ni-Cu-Co Sulphide Deposits Western Australia, A Personal Perspective).
C56 is supported by anomalous Ni and Cu values in weathered bedrock at SHG01, while C42 underlies anomalous Cu values in weathered bedrock at SHG09. Nova's conductor was also immediately below anomalous Ni-Cu in weathered bedrock (ASX: SIR 18 April 2012, MAT 28th April 2014).
High Powered Fixed Loop EM (HPFLEM) Survey
Matsa commenced a regional, high powered (150-200A) EM survey in December 2014 which has been designed to cover the majority of the Symons Hill Project area. The survey is being carried out as part of a research and development project which is designed to develop and improve state of the art EM equipment to explore for massive sulphide deposits of Nova-Bollinger type, to a depth of >700m below surface.
The survey has been designed to test three successive, prioritised areas with the highest priority assigned to favourable structural/stratigraphic locations based on interpretation of gravity, aeromagnetic, geochemical and drilling data. Results have been received for 39 out of 97 planned survey loops.
Symons Hill Project Background
The Symons Hill Project is located within Matsa's 100% owned E69/3070 with an area of 96km2. The project is located within the Fraser Range Tectonic zone, 6kms SSW of Sirius Resources Ltd's (ASX: SIR) Nova nickel mine. Matsa has been actively exploring the project since 2012 with aircore, RC and diamond drilling confirming the presence of nickel anomalous (0.2 - 0.3% Ni) olivine bearing gabbro at targets SHG02, SHG03 and SHG11, which exhibit near surface enrichment in the weathered profile of up to 1.3% Ni.
For further Information please contact:
Paul Poli
Executive Chairman
Phone +61 8 9230 3555
Fax +61 8 9227 0370
Email [email protected]
Exploration results
The information in this report that relates to Exploration results, is based on information compiled by David Fielding, who is a Member of the Australasian Institute of Mining and Metallurgy. David Fielding is a full time employee of Matsa Resources Limited. David Fielding has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking 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'. David Fielding consents to the
inclusion in the report of the matters based on his information in the form and context in which it appears .
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Matsa Resources Limited
Appendix 1: Matsa Resources Limited Symons Hill Project JORC 2012 Table 1
Section 1: Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections).
Criteria
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JORC Code explanation
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Commentary
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Location of
data points
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Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other
locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
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EM survey loops and receiver data points are laid out using handheld GPS units to an accuracy of 3-5m
Topographic control 2-5m accuracy using published maps or
Shuttle Radar data is considered to be sufficient for modelling
of EM survey results.
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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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Loops are laid out as rectangles measuring approximately
1200x800m in a NS and EW direction.
Receiver data is acquired at 50m intervals along lines spaced at 150m
Survey lines are typically run parallel to the short electrode direction
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Orientation
of data in relation to geological structure
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Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is
known, considering the deposit type.
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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The Transmitter loops and survey lines are carried out NS and
EW.
Geological strike is highly variable but dominated by a NNE "grain" which means that in most cases EM data is acquired at a high angle to geological strike.
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Section 2: Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section).
Criteria
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JORC Code explanation
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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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EL69/3070 which is owned 100% by Matsa Resources Ltd.
Located on Vacant Crown Land
The License intersects the buffer zones of the Fraser Range
and Southern Hills PEC's Exploration to be managed in
accordance with a Conservation Management Plan.
The project is located within Native Title Claim by the Ngadju people.
A heritage agreement has been signed and exploration is carried out within the terms of that agreement.
At the time of writing the licence is granted for a 5 year period expiring on 6th March 2018
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Exploration
done by other parties
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Acknowledgment and appraisal of exploration by other parties.
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Prior work carried out by GSWA in the form of wide spaced helicopter based soil sampling and acquisition of 400m line
spacing magnetic and radiometric data.
In the late 90s, Gold Partners NL has carried out few wide- spaced aircore drilling on one line along the southeast portion
of the tenement. No anomalous assay results have been
reported.
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Geology
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Deposit type, geological setting and style of mineralisation.
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The target is Nova style Ni Cu mineralization hosted in high grade mafic granulites of the Fraser Complex.
Recent results also support potential for magmatic copper only mineralisation in Felsic granulites
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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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Suitable summary plans have been included in the body of the report.
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Balanced
reporting
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Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high
grades and/or widths should be practiced to avoid misleading
reporting of Exploration Results.
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Not required at this stage
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Other
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Other exploration data, if meaningful and material, should be
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Airborne VTEM (combined magnetic and electromagnetic)
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Criteria
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JORC Code explanation
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Commentary
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substantive
exploration data
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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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carried out in December 2012 by Geotech Airborne Pty Limited. A total of 6 priority targets and 15 second order targets
identified and reported on by Southern Geoscience Consultants
Ltd. VTEM survey carried out over entire tenement on 200m lines.
Prior to December 2012, Comprehensive geochemical survey carried out by Matsa Resources comprising 614 samples
mostly at 400m centres on a staggered grid identified targets
SH01 to SH05. Infill at 200m x 200m completed over targets
SH01 to SH05 in May 2013 for a total of 638 samples.
Ground EM 2013, (See Location Plan below) carried out by Bushgum Holdings Pty Ltd, under supervision by Newexco consultants, consisting of both moving-loop (MLEM) and fixed- loop (FLEM) surveys. Data acquisition was achieved using a SMARTem24 8-channel geophysical receiver manufactured by ElectroMagnetic Imaging Technology (EMIT), Bartington 3- component magnetic field sensor (up to 1Hz frequency response) and a Zonge ZT-30 Loop Driver transmitter to power the loop with up to 30A. The MLEM and FLEM surveys are
both 400m wide. In the MLEM, the survey lines are spaced
400m apart with receiving stations every 100m inside the loop along an E-W direction. In the FLEM, the receiving stations are
50m apart across 1 km traverse in an E-W direction.
Fixed Loop TEM Surveys carried out in February March 2014 by Outer Rim, (See Location Plan below) SURVEY
PARAMETERS Configuration : Fixed Loop, Station Spacing :
50 m; Receiver : SMARTem24, Frequency : 2.0833, Component Z,X,Y, Rx Coil : Fluxgate, Rx Area : 10000m2
turn-m; Transmitter : Crone-Ext, Tx Moment : Unknown turn-m,
Tx Current : 20 A Turn Off : 0.5 ms
Survey Location Plan Attached
FLTEM loop sizes ranged from 300x500m to 400x600m, single loop turn. Multiple E-W survey lines were utilised (3) per line at
150m line spacing in order to adequately resolve potential bedrock conductors. All FLTEM surveying was completed with
50m station spacing.
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Criteria
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JORC Code explanation
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Commentary
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Induced polarization (IP) geophysical surveys over
geochemical targets SHG01, SHG02 and SHG03. Survey type: Pole/Dipole-dipole (2D) at 100-200m spacing; Receiver: GDD
GRX-32 IP receiver; Transmitter: zonge GGT-30; Frequency
0.125 Hz; Data coverage: N=12-16 ~300 to 500m depth of investigation.
Current HPFLEM See location plan for current progress. - high powered fixed loop TEM 800x1200m loops, 100m stations,
150m line spacing, ORE HP transmitter producing ~120-150A,
Base Frequency for initial surveys (will change) - 0.5Hz, ZXY
components (Z+Up, X+East, Y+North), EMIT SMARTfluxgate
B-field sensor Each loop currently consists of 12 survey lines,
192stns and 18.0kms coverage.
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