MANTLE ACQUIRES HIGH GRADE NORTON GOLD MINE
ASX ANNOUNCEMENT 11 NOVEMBER 2013
Mantle Mining Corporation Limited (ASX: MNM) is pleased to announce an agreement regarding the acquisition of the high grade (currently idle) Norton Gold Mine from Norton Gold Fields Limited (ASX: NGF).
Highlights:
Mantle to acquire 100% of the high grade Norton Gold Mine in central Queensland for total consideration
$300,000 cash at completion, less a 10% deposit upfront.
Existing Mining Licence (ML 80035) with pre-strip pits already in-place and initial Frampton zone material mined and stockpiled onsite ready for processing.
Very high grade, hand picked, rock chips from Frampton stockpile laboratory analyses returned circa 90 g/t gold and 90 g/t silver (90 g/t equals approximately 3 oz/t) (Table 3).
Preliminary metallurgical test work by Mantle on Frampton material points to a simple, low cost process of crushing and flotation to create a high value concentrate, plus potential gravity recovery of free gold.
The mine was last worked (by Norton) in 2005/06, with approximately 5,000 tonnes of material processed through Gympie Gold's treatment plant. Operations were terminated due to Gympie Gold falling into administration and NGF refocussing on the Paddington Field in Western Australia.
The completion of the transaction is subject to the satisfaction of a number of conditions precedent, including:
the parties negotiating and executing (within 90 days) such formal legal documentation as is reasonably required to give effect to the transaction; and
approval from the relevant Queensland government authorities of the transfer of the Mining Licence from NGF to
Mantle.
NGF's 2005 Prospectus reported a (non JORC) combined measured, indicated and inferred resource estimate of
453,000 tonnes at 7.4 g/t for 108,000 oz gold (Table 2). The 2004 resource estimate report noted minor work required to accomplish full JORC Compliance:
Review and check all available drill hole, survey and assay data,
Within indicated resources, drill selected holes at appropriate spacings to substantiate the continuity of structures within current significant data gaps,
Within inferred resources, drill selected holes to confirm the presence of structures to the depths suggested by geological interpretation.
Mantle notes that the potential quantity and grade of this resource estimate is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource, and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
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Based on preliminary due diligence to date, with a contract mining operation, and at an order of magnitude capital cost estimation for a crushing and flotation recovery circuit, Mantle is of the view that the mine can potentially be brought back into production for under $1 million capital cost and within 18 months, pending full approvals of a Plan of Operations (PoO) from the relevant administering authority.
The PoO will need to contain mitigation measures to protect some heritage values, including a historic Chimney and Stamper and a small area of potentially remnant endangered vegetation. Preliminary discussions with the relevant administering authority suggest that these matters can be effectively managed (Pictures 1 and 2).
Mantle notes that this report contains forward-looking statements. Although Mantle believes the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ.
For further information please contact:
Ian Kraemer
Managing Director
Mantle Mining Corporation Limited [email protected]
P: +61 7 3310 8932
About Mantle Mining Corporation Limited
Mantle Mining (ASX: MNM) is an Australian based minerals exploration company that is focussed on a range of in high demand commodities. Mantle's principal activities are to acquire exploration tenements and locate economically developable deposits of coal and gold. It is Mantle's intention to progress mineral deposits through feasibility and into mining operations, to the benefit of all stakeholders.
Figure 1: Norton Goldmine Project Location.
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Norton is located 100km by road south of the port city of Gladstone in Queensland (Figure 1). The goldfield was discovered and brought into production in the late 1800's, producing 16,000oz gold up to 1900. Minor production in the 1990's produced a further 1,285oz of gold. The majority of the deposit exists from surface to 50m deep and only
parts of the deposit have been drilled beyond 100m. The shears remain open along strike and at depth (Table 1).
|
Drill hole
|
Vein
|
Depth From (m)
|
Interval (m)
|
Gold (g/t)
|
|
NRC 26
|
Never Never
|
19
|
11
|
7.1
|
|
PG 86_2
|
Never Never
|
10
|
2.9
|
6.2
|
|
NO 85_8
|
Frampton
|
49
|
5
|
12.3
|
|
NO 85_2
|
Frampton
|
94
|
3.2
|
9.4
|
|
NRC 2
|
Chandler
|
27
|
1
|
48.8
|
|
PG 86_11
|
Chandler
|
17.6
|
1.3
|
29.8
|
|
PG 87_3
|
Never Never
|
11
|
3
|
16.7
|
|
PG 87_10
|
Never Never
|
25
|
6
|
9.5
|
Table 1: Norton high grade drilling intercepts.
NGF reported in its 2005 Prospectus a total measured, indicated and inferred (non JORC) gold resource of 453,000 tonnes grading 7.4g/t for 108,000oz gold (Table 2).
|
|
Measured
|
Indicated
|
Inferred
|
Total
|
|
Vein
|
Tonnes
|
Gold
(g/t)
|
Gold
(oz)
|
Tonnes
|
Gold
(g/t)
|
Gold
(oz)
|
Tonnes
|
Gold
(g/t)
|
Gold
(oz)
|
Tonnes
|
Gold
(g/t)
|
Gold
(oz)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Frampton
|
51,000
|
7.2
|
11,807
|
45,000
|
7.2
|
10,418
|
|
|
|
96,000
|
7.2
|
22,225
|
|
Chandler
|
33,000
|
11.3
|
11,990
|
67,000
|
11.3
|
24,344
|
|
|
|
100,000
|
11.3
|
36,334
|
|
Never Never
|
30,000
|
5.5
|
5,305
|
30,000
|
5.5
|
5,305
|
12,000
|
5.5
|
2,122
|
72,000
|
5.5
|
12,733
|
|
Little Wonder
|
|
|
|
17,000
|
3.7
|
2,023
|
15,000
|
3.7
|
1,785
|
32,000
|
3.7
|
3,807
|
|
Nine Gram
|
|
|
|
11,000
|
4.0
|
1,415
|
16,000
|
4.0
|
2,058
|
27,000
|
4.0
|
3,473
|
|
Stamper
|
|
|
|
2,000
|
11.4
|
733
|
10,000
|
11.4
|
3,666
|
12,000
|
11.4
|
4,399
|
|
Unnamed
|
|
|
|
27,000
|
6.4
|
5,556
|
18,000
|
6.4
|
3,704
|
45,000
|
6.4
|
9,260
|
|
Stockwork
|
|
|
|
53,000
|
7.1
|
12,100
|
21,000
|
7.1
|
4,794
|
74,000
|
7.1
|
16,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
114,000
|
7.9
|
29,103
|
252,000
|
7.6
|
61,894
|
92,000
|
6.1
|
18,129
|
458,000
|
7.4
|
109,125
|
Table 2: Norton 2004 Gold resource estimate before approx. 5000 tonnes mined (may contain rounding errors).
Mantle notes that since the release of the NGF Prospectus, approximately 5000 tonnes of ore have been mined by NGF and processed at a third party owned treatment plant at Gympie. Mantle will be revising the data underlying the original resource model in order to report an updated JORC Resource in compliance with the 2012 JORC Code.
In 2006, the Gympie plant was closed by the third party owner and NGF relocated their focus to the Paddington Goldfield in Western Australia, where they have since consolidated that field and become a mid tier gold producer. The Norton mine has remained on care and maintenance since.
At Norton, the gold and silver are contained in sub vertical, high-grade shears that occur from surface. The mine is covered by an existing Mining Licence (ML 80035) within which 8 main shears make up the original resource base. Many other shears have been defined but not sufficiently drilled. Three of the best shears have already been partially pre-stripped and remain open ready for near immediate mining, with some minor additional preparation (Figure 2).
Frampton rock chips hand sampled from stockpiles were analysed and returned very high gold and silver grades (Table 3). Preliminary metallurgical test work shows good gold and silver recoveries from a simple flotation circuit to deliver a high grade saleable concentrate. Such an approach allows for low capital cost equipment to kick off an initial mining operation, possibly via low dilution, staged equity financing. Recoveries of 93% were previously attained in the Gympie plant, thus excellent upsides exist relating to defining more shear zones and also potential for various options
of beneficiation to produce a dorè.
|
Sample ID
|
Sample Weight (kg)
|
Gold (g/t)
|
Silver (g/t)
|
|
Frampton 8/8
|
4.85
|
98.9
|
95.2
|
|
Frampton N1
|
0.94
|
26.3
|
164
|
|
Frampton SE1
|
1.31
|
91.3
|
85.7
|
|
Frampton SE2
|
1.31
|
114
|
127
|
|
Frampton SE3
|
1.00
|
21.8
|
77
|
|
Weighted Average
|
|
84.5
|
103.24
|
Table 3: Frampton stockpile hand-picked high grade rock chip laboratory analysis results.
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Figure 2: Norton ML with shears, drill holes and exi sting mine layout.
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Picture 1: Historic stamper (crusher). Picture 2: Historic smelter chimney.
Picture 3: Never Never open pit. Picture 4: Frampton shear pre-strip.
Picture 5: Stockpiled Frampton material. Picture 6: Sampling Frampton stockpile.
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Picture 7: Frampton vein. Picture 8: High grade Frampton rockchip.
Mantle is already in detailed discussions to engage an experienced Project Manager to focus solely on bringing the Norton Mine into early, low cost production and sustaining cash flow. Mantle proposes to instigate an in house scoping study to define the following matters for execution:
Remodel the geologic data to upgrade and refresh the resource to 2012 JORC compliance levels,
Design scaled mining and processing options for a low cost site operation to deliver a concentrate for sale,
Lodge a Plan of Operations (PoO) with the relevant government department for re-approval to mine,
Engagement of an appropriate earthmoving contractor to undertake the mining,
Acquisition and site setup of low cost processing equipment,
Scheduling, site development and setup, marketing agreements and mine start-up.
Competent Person's Statement:
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Peter Anderton, who is an employee of Mantle Mining Corporation Limited. Mr Anderton is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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 Anderton 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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