ASX Announcement
1 May 2008
High-grade mineral sands results at Cape York
Exploration Update
HIGHLIGHTS
- Identified Indicated Resource
of 2.8 million tonnes @ 7.0% HM to a maximum depth of 3 metres.
- Significantly mineralised HM
Strands extend for over 5 kilometres.
- Analysis indicates
approximately 30% of the heavy mineral (HM) will be high quality zircon
and rutile.
- Results indicate low slimes and
thus low cost processing and rehabilitation.
- Nine kilometres of coastline
still to be tested at Urquhart Point Prospect.
- Matilda’s tenements cover
300 kilometres of the Cape York western
coastline.
Mineral
sands producer Matilda Minerals Limited (ASX: MAL) is pleased to announce
positive results from its second reconnaissance program at the Urquhart Point
prospect on Cape York in northern Queensland.
The
follow-up drilling program, completed in March, has extended the known
mineralisation and shown the previously drilled strands extend over three
kilometres to the south.
Matilda’s
Managing Director, Bruce Maluish, said the results demonstrated the continuity
of the previously drilled strands, and enabled Matilda to produce an Indicated
Resource estimate of 2.8 million tonnes @ 7.0% HM at the surface to a
maximum depth of 3 metres and with exceptionally low slimes content.
“Testing
shows the valuable heavy mineral (VHM) suite is dominated by zircon and rutile.
Present market indications are that zircon prices are due for a positive
re-rating due to increasing demand in China and recent reductions in
production,” Mr Maluish said.
“The
results also give us great confidence of further significant zircon and rutile
mineralisation on our other tenements, which cover 300 kilometres of the Cape York western coastline,” Mr Maluish said.
“From
grab samples taken over this 300 kilometres of coastline, we know that the
heavy mineral suite is very rich in zircon and rutile and we know that the
geological setting is right so we are very confident that this large area
contains substantial mineral sands mineralisation. We are now at the start of the
dry season so we plan to commence a comprehensive exploration program on our
tenements soon. The Urquhart Point mineralisation gives us great confidence
that our exploration programs will be rewarded with important
discoveries.”
The exploration
success at Urquhart Point is another significant step forward in the
development of the Cape York project for Matilda, which is also producing high
grade zircon from projects on the Tiwi
Islands in the Northern Territory.
Matilda is conducting the
exploration program as part of its farm-in agreement with Oresome Australia
(Matilda earning 70%) on the highly prospective Urquhart Point mineral sand
deposit, part of Matilda’s Cape York Project in northern Queensland. The
deposit is located on EPM 15268, 2 kilometres across Albatross
Bay from the township
of Weipa on the west coast of Cape York.
A
comprehensive cultural heritage clearance survey was completed after the grant
of the tenement late last year, which was followed by the first exploration
program at Urquhart Point.
In December
2007, a hand auger program was conducted to test the surface mineralisation.
The program consisted of 87 shell auger holes and 75 spiral auger holes to test
the previously reported prospect, and to test for possible extensions to the
east and the southwest.
Four
north-south sections of shell auger tested the previously drilled
“northern zone” and confirmed the reported grades of heavy mineral
(HM), the high content of zircon and rutile, and also the exceptionally low
slimes content. The sections were extended south of the historic mineralisation
and encountered significant mineralisation.
Results from the December drilling indicate the
mineralisation occurs around the northern portion of this prospect as a series of
complex strands over a distance of more than two kilometres.
March 2008 Exploration Program
The exploration program proceeded as planned during
the wet season with a further hand auger program completed in March 2008 comprising
of 120 shell auger holes for 174 metres and 26 spiral auger holes 1m deep.
From this current program, Matilda was able to convert
the known mineralisation to resource status and to demonstrate extensions to
the south of the strands.
Infill Urquhart
Point
Three infill shell auger drill lines were completed in
the vicinity of the main Urquhart Point deposit area with a total of 28 holes
for 42 metres drilled. These lines effectively reduce the drill spacing over
the entire deposit (completed by Matilda) to nominal 200 metre X 30 metre
spacing, allowing an Indicated Resource estimate to be completed. This
resource estimate has been calculated for an Indicated Resource of 2.8 million
tonnes @ 7.0% HM.
South
Urquhart Point.
Eight section lines on 400 metre spacing
were completed in this area. Hole spacing along each line averaged
approximately 30 metres with a total of 92 holes for 132 metres drilled.
The current program extended the known strands for
three kilometres to the south. The remaining nine kilometres of coastline
to the south are as yet untested.
MINERALOGY
The VHM suite is dominated by zircon
and rutile. Based on all the available analyses of 6 composite
samples from the drilling, the likely HM suite will contain an average of
greater than 30% combined zircon and rutile, with most of the remainder being
ilmenite and iron oxides. Significantly the non magnetic fraction for all
6 samples is almost entirely zircon and rutile with a very small
percentage of trash minerals.
IDENTIFIED RESOURCE
Infill drilling and the continuity
observed between drill sections has enabled a Resource calculation to Indicated
status. Further drilling has potential to increase this initial Resource.
|
RESOURCE
|
TONNES
|
GRADE
|
|
Indicated
|
2,780,000
|
7.0 %HM
|
HISTORIC EXPLORATION
No modern exploration has been
recorded on Cape York coastal regions. The
only information available is from work completed during the 1950s. No records of
methods of HM determination or modal analyses are recorded. However, the work
indicated an area highly prospective for mineral sands.
For further
information contact:
Bruce Maluish
– Managing Director
Matilda Minerals
Limited
Tel: (08) 9481 1444
or 0418 940 417
Warrick Hazeldine
Investor Relations
Tel: (08) 9485 1254
or 0417 944 616
Background
Matilda Minerals Limited (ASX: MAL) is focused on developing
high-value zircon and rutile-rich mineral sands deposits on its flagship Tiwi Islands
project. Matilda distinguishes itself from traditional mineral sands companies
whose primary product is lower-priced ilmenite.
Its Tiwi Islands mineral sands project is situated on Bathurst and Melville (Tiwi) Islands
north of
Darwin, Northern Territory, and is in
full production for the next four years on Melville Island.
Increased worldwide demand for zircon has led to the price
exceeding US$850 per tonne.
Matilda has compiled an impressive portfolio of exploration
tenements which covers the highly
prospective far north Queensland
region on the west of Cape York including
Urquhart Point and
more recently, Mapoon.
Matilda also has other projects in Western
Australia at Pender Bay (north of Broome), Anson Bay
(north Western Australia) and
Carnarvon and also in the under explored Surat
Basin in NSW and Queensland.
For more information visit: www.matildaminerals.com
The exploration comments have been prepared by Mr Roger Hobbs BAppSc
(Geophys & Geol), MAusIMM, an Executive Director of Matilda, who has
sufficient experience which is relevant to the style of mineralisation and type
of deposit under consideration and to the activity which is to be undertaken to
qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Hobbs 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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