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Yamarna Drilling Intersects Basement Gold Mineralisation

Publié le 20 octobre 2015

d742e0818ba9d7cd9194e6.pdf


1



ABOUT MONTEZUMA MINING

Listed in 2006, Montezuma Mining Company Ltd (ASX: MZM) is a diversified explorer primarily focused on manganese, copper and gold. The Company's primary objective is to achieve returns for shareholders through selected strategic acquisitions and targeted exploration.


Montezuma Mining has 100% interests in the Yamarna Gold Project in the Yamarna Geenstone Belt, Western Australia and the Butcherbird Manganese/Copper Project in

the Murchison region of Western Australia

20 OCTOBER 2015


First Ever Drilling at Yamarna Intersects Ore Grade Gold Mineralisation

MARKET DATA

ASX code: Share price: Shares on issue:

Market capitalisation: Cash (30 June 2015):

MZM

$0.20 70,464,350

$14.1M

$6.67M

First batch of assays from maiden aircore drilling programme returns results up to 2.7 g/t gold plus pathfinder elements in basement rocks.

Widespread strong gold anomalism over several square

kilometres further supports potential for a large gold system.

Approximately 25% of assays received to date. Remaining samples in laboratory with results pending.

BOARD AND MANAGEMENT

Chairman Seamus Cornelius Executive Director Justin Brown Non-Executive Director John Ribbons

Bottom of hole logs confirm structurally complex,

granite/greenstone basement - favourable for gold.

Expanded work programme to be initiated to follow up the highly encouraging initial results.

Montezuma Mining Company Ltd ('Montezuma' or 'Company') is pleased to announce that the maiden geochemical drilling programme at the Company's 100% owned Yamarna Project has returned basement hosted ore grade gold values up to 2.7 g/t in quartz veining along with strong widespread regional anomalism in multiple sampling horizons in the recent and Permian cover and at the Permian/Archaean interface (see Figure 1).

The aircore programme was designed to test for basement (Archaean) hosted primary gold mineralisation beneath multiple regional scale historic gold in soil anomalies1.

The lack of a weathered profile in the Archean basement has meant that, for almost all holes, the bottom of hole sample represents the top of the Archean basement rocks with little or no depth penetration, hence the programme should be viewed as a reconnaissance geochemical drilling programme. This further enhances the significance of these early results which only represent approximately 25% of the programme with the remaining 75% of samples in the laboratory with results pending.


Company information, ASX announcements

investor presentations, corporate videos and other investor material on the Company's projects can be viewed at www.montezuma.com.au

Executive Director Justin Brown said 'To intersect these grades and this level of anomalism on a regional scale so early in the first ever drilling programme on this ground is very exciting and suggests that we may be on to a significant gold system'.


1

http://www.montezuma.com.au/images/uploads/150729_Results_Confirm_Yamarna_Gold_Tar

gets.pdf


Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005

A total of 202 holes were completed for 7,525 metres. Samples were collected in four metre composites downhole except at notable geological boundaries, where sampling was constrained to the different units with particular attention given to separating transported cover, interface zones, palaeo-surfaces and underlying basement. A total of 2,284 samples were submitted for assay by Aqua Regia with an ICP-MS finish for gold and selected pathfinder elements including Au, Ag, As, Cu, Pb, Zn, Ni, Sb, Bi, W, Te and Mo. This release details results for the first 522 samples from the programme, representing approximately 25% of the samples submitted for assay.


The Archean geology intersected in the drilling was varied and indicates lithological and structural complexity. The geology included multiple types of granite and mafic and meta-sedimentary rocks with quartz veining present in a number of the targeted areas. The overlying cover is variable in thickness, from approximately 12 metres in western areas to over 40m to the east. The cover comprises a combination of recent Aeolian dune material and various phases of alluvials and possible lacustrine members currently interpreted as Permian in age.


Samples returned to date indicate that the profile has four horizons that show significant gold anomalism (see Figure 2), with the surface anomaly present in the soils data reflected in the upper parts of the drilling, an interpreted paleo-surface within the cover sequences, a strong interface anomaly at the Archean/Permian contact and primary basement hosted mineralisation in three holes. The basement mineralisation intersected also showed a moderate to strong copper, bismuth, moybdenum and tellurium association, a common assemblage in meso-thermal gold deposits in the Yilgarn Province.


The strength and scale of the anomalism in these zones gives weight to the technical merit of the project and follow-up drilling will be undertaken once all results from this programme have been received.


Hole ID

Easting (MGA 94 Z51)

Northing (MGA 94 Z51)

RL

(m)

Dip (0)

Azimuth (mag. 0)

Total Depth (m)

Depth From (m)

Depth To (m)

Intercept Width (m)

Au (ppb)

Interpreted Horizon

YAAC001

596504

6888804

410

-60

090

31

4

11

7

87

Recent Cover

YAAC002

596521

6888803

410

-90

000

36

14

18

4

173

Palaeo - Surface

YAAC007

597000

6888800

410

-90

000

46

16

20

4

91

Palaeo - Surface

YAAC015

596449

6888802

410

-90

000

36

0

8

8

55

Recent Cover

and and

8

28

12

32

4

4

57

52

Palaeo - Surface Archaean/Permian Interface

YAAC016

596401

and and

6888790

410

-90

000

39

4

16

20

8

20

24

4

4

4

68

2281

246

Recent Cover Palaeo - Surface Palaeo - Surface

YAAC017

596351

6888795

410

-90

000

36

12

16

4

140

Palaeo - Surface

YAAC018

596303

and and

6888798

410

-90

000

39

12

20

24

16

24

28

4

4

4

703

168

338

Palaeo - Surface Palaeo - Surface

Archaean/Permian Interface

YAAC020

596199

6888785

410

-90

000

35

16

20

4

53

Palaeo - Surface

YAAC027

594100

and

6889153

415

-90

000

14

8

12

12

13

4

1

65

89

Palaeo - Surface Archaean/Permian Interface

and

13

14

1

2708*

Archaean Basement

YAAC037

594096

6888924

415

-90

000

45

44

45

1

136

Archaean Basement

YAAC043

594305

6888754

415

-90

000

33

28

32

4

170

Archaean Basement

YAAC046

594302

6889002

415

-90

000

30

28

29

1

83

Archaean Basement

YAAC051

594298

6889202

415

-90

000

18

0

4

4

66

Recent Cover

YAAC053

594295

6889250

415

-90

000

13

0

4

4

59

Recent Cover

Table 1: Significant gold assays >50ppb from recently completed aircore drilling at the Yamarna Project. All intersections are quoted as downhole widths. (Note - * indicates this is a Fire Assay Repeat following an over range result initially)


Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005 2



Figure 1: Collar locations and partial assays from recently completed



Figure 2: Schematic Regolith interpretation highlighting multiple aomalous horizons intersected in aircore drilling at Yamarna. Drawing not to scale, approximately 10X vertical exaggeration.


5.62 M oz*



CAPTAINS PROSPECT


JATZ PROSPECT


CRUSKIT PROSPECT



Figure 3: Gold in soil anomalies generated by Montezuma's recently completed soil sampling programme over interpreted basement geology. * http://www.goldroad.com.au/reports/431bxcg4t7pqdd.pdf

FOR MORE INFORMATION…


Justin Brown Executive Director Phone: +61 8 6315 1400

Email: [email protected]


Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company's projects can be viewed at http://www.montezuma.com.au.




The information in this report that relates to Exploration Results, Mineral Resources and Mineral Reserves is based on information compiled by Mr Bradley Drabsch who is a member of the Australasian Institute of Geoscientists. At the time that the Exploration Results, Mineral Resources and Mineral Reserves were compiled, Mr Drabsch was an employee of Montezuma Mining Company Ltd. Mr Drabsch is a geologist 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 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Drabsch consents to the inclusion of this information in the form and context in which it appears in this report.


JORC Table 1 (Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.




Aircore (AC) drill chips were collected as composite samples (either 1m, 2m, 3m or 4m samples) from bulk piles laid out next to the drillhole collar using a hand held scoop.

Samples were scooped in such a manner as to ensure portions of the whole pile were sampled. This is standard industry practice for this type of early phase drilling.

Mineralisation determined qualitatively by geological logging and quantitatively through assaying.

Approximately 2kg of sample was collected as a composite. This sample was pulverised to 85% passing 75µm then a 10g sub-sample digested via aqua-regia followed with assay by ICP-OES or ICP-MS methods.

Drilling techniques

  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

AC drilling using a face sampling blade or where AC hammer method used, a face sampling bit. Hole diameter nominally 85mm.

Drill sample

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Recoveries qualitatively noted at the time of drilling and recorded in

recovery

the MZM database.

The cyclone of the drill rig is cleaned at the end of each 3m rod to

ensure sample is not 'hung-up' and samples are as clean as possible

with as little cross contamination as possible.

No relationship between grade and recovery has yet been

established.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.


All samples were logged to a level of detail to support future use in a mineral resource calculation should it be required.

Qualitative: Lithology, alteration, mineralisation.

Quantitative: Vein percentage, assaying for gold and other elements. All holes for their entire length are logged.


Criteria

JORC Code explanation

Commentary

  • The total length and percentage of the relevant intersections logged.

Sub- sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken.

  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

  • Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Aircore (AC) drill chips were collected as composite samples (either 1m, 2m, 3m or 4m samples) from bulk piles laid out next to the drillhole collar using a hand held scoop.

  • Samples were taken at interpreted geological boundaries in order to identify and discriminate between transported and in-situ mineralisation.

  • Sample condition with respect to moisture content is noted on the geological log.

  • The entire composite sample (approx. 2kg) has been dried, pulverised to 85% passing 75µm, a 10g sub-sample split then digested by aqua-regia followed by assay with ICP-MS or ICP-OES for gold and a suite of pathfinder elements.

  • No field duplicates have been processed as yet. Pulp duplicates have been taken at the pulverising stage and selective repeats conducted at the laboratories discretion.

  • Sample sizes are considered appropriate for the grainsize of the material sampled.

Quality of assay data and laboratory tests

  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

  • Samples were assayed using an ICP-MS or ICP-OES finish after being digested with aqua-regia (industry standard technique for low level Au in surface samples). This is considered a partial digest technique however in weathered samples it is considered to approximate a total digest assay.

  • Assays were returned for the following elements: Au, Ag, As, Cu, Pb, Zn, Ni, Sb, Bi, W, Te and Mo.

  • Certified Reference Material (Standards) was submitted with batches (approximately 1 in every 25 samples) and laboratory inserted standards, blanks and duplicates were also reported. Where gold levels were over range for the ICP-MS technique, a separate sample from the pulverised pulp was analysed using a 25g fire assay. The results reported for are all within tolerable limits.

Verification

  • The verification of significant intersections by either independent or

  • All data have been checked internally for correctness by senior MZM

of sampling

alternative company personnel.

geological and corporate staff.

and

  • The use of twinned holes.

  • All data is collected via Geobank Mobile software and uploaded into

assaying

  • Documentation of primary data, data entry procedures, data

the MZM Geobank Database following validation.

verification, data storage (physical and electronic) protocols.

  • No adjustments have been made to assay data.


Criteria

JORC Code explanation

Commentary

  • Discuss any adjustment to assay data.

Location of data points

  • 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.

  • All location points were collected using handheld GPS in MGA 94 - Zone 51

Data spacing and distribution

  • 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.

  • Holes were drilled at various spacing based upon geological observations at the time of drilling. This is typically 100m , 50m or 25m. Drill lines are spaced at approximately 200m - 400m where multiple lines are drilled in an area.

  • Hole spacing is appropriate for drilling at this early stage in the exploration process.

  • Sample compositing has been applied. Samples were taken at interpreted geological boundaries in order to identify and discriminate between transported and in-situ mineralisation.

Orientation

  • Whether the orientation of sampling achieves unbiased sampling of

  • The orientation of structures is not known with certainty but drilling

of data in

possible structures and the extent to which this is known, considering

was conducted using appropriate orientations for interpreted

relation to

the deposit type.

structures.

geological

  • If the relationship between the drilling orientation and the orientation

  • Bias introduced by drill orientation with respect to structures is not

structure

of key mineralised structures is considered to have introduced a

known.

sampling bias, this should be assessed and reported if material.

Sample security

  • The measures taken to ensure sample security.

  • Chain of custody was managed by company representatives and is considered appropriate. All samples are bagged in a tied numbered calico bag, grouped into larger polyweave bags and cable tied. Polyweave bags are placed into larger bulky bags with a sample submission sheet and tied shut. Consignment note and delivery address details are written on the side of the bag and delivered to Toll in Laverton. The bags are delivered directly to MinAnalytical in Canning Vale, WA who are NATA accredited for compliance with ISO/IEC17025:2005.

Audits or reviews

  • The results of any audits or reviews of sampling techniques and data.

  • No external audits or reviews have been conducted apart from internal company review.


Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)


Criteria

JORC Code explanation

Commentary

Mineral

  • 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.

E38/2889 is 100% owned by Montezuma Mining Company Limited

tenement

and is in good standing and there are no known impediments to

and land

maintaining a licence to operate in the area.

tenure status

The land on which E38/2889 is situated within Aboriginal Reserve

20396. Montezuma Mining Company Limited has obtained 'Mining

Entry Permits' to operate within the licence area.

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.

Very little exploration has been undertaken in the area of E38/2889 previously. The most detailed work was carried out by WMC during the mid-1990's where they collected -75um soil samples on a regional scale. WMC did not follow-up the low tenor anomalies they defined in the current work area at the time.

Geology

  • Deposit type, geological setting and style of mineralisation.

Not enough information has been gathered to adequately define the precise geology in the area as it is largely covered in recent sand.

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

    • easting and northing of the drill hole collar

    • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

    • dip and azimuth of the hole

    • down hole length and interception depth

    • hole length.

See appendix to the release.

Data

  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

  • The assumptions used for any reporting of metal equivalent values

No top-cuts have been applied when reporting results.

aggregation

methods

First assay from the interval in question is reported (i.e. Au1), except in the cases where the assay repeats or is reported as over range for

gold for the instrument being used. In this case, a fire assay repeat is

conducted and that value reported. This is noted where this occurs.

Aggregate sample assays calculated using a length weighted

average

Significant grade intervals based on intercepts > 50ppb gold.


Criteria

JORC Code explanation

Commentary

should be clearly stated.

No metal equivalent values have been used for reporting of results.

Relationship

  • If the geometry of the mineralisation with respect to the drill hole

Not enough information has been gathered to adequately define the

between

angle is known, its nature should be reported.

precise geology in the area as it is largely covered in recent sand.

mineralisatio

  • If it is not known and only the down hole lengths are reported, there

n widths and

should be a clear statement to this effect (eg 'down hole length, true

intercept

width not known').

lengths

Diagrams

  • 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.

Refer to figures in document.

Balanced

  • Where comprehensive reporting of all Exploration Results is not

All drill hole locations are reported and a table of significant intervals

reporting

practicable, representative reporting of both low and high grades

is provided in the release text.

and/or widths should be practiced to avoid misleading reporting of

Exploration Results.

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be 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.

All meaningful and material information is reported.

Further work

  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Second phase dill planning to follow-up significant intersections is underway and is expected to commence within Q4 2015.

Appendix 1: Drillholes collar details.


Hole ID

Easting (MGA 94 Z51)

Northing (MGA 94 Z51)

Nominal RL

(m)

Dip (0)

Azimuth (magnetic

0)

Total Depth (m)

Prospect Name

YAAC001

596505

6888804

410

-60

090

31

Captains

YAAC002

596521

6888804

410

-90

360

36

Captains

YAAC003

596605

6888803

410

-90

360

35

Captains

YAAC004

596698

6888804

410

-90

360

44

Captains

YAAC005

596799

6888802

410

-90

360

48

Captains

YAAC006

596899

6888801

410

-90

360

40

Captains

YAAC007

597000

6888801

410

-90

360

46

Captains

YAAC008

597101

6888792

410

-90

360

45

Captains

YAAC009

597153

6888796

410

-90

360

46

Captains

YAAC010

597198

6888797

410

-90

360

46

Captains

YAAC011

597301

6888803

410

-90

360

37

Captains

YAAC012

597400

6888799

410

-90

360

43

Captains

YAAC013

597498

6888798

410

-90

360

49

Captains

YAAC014

597600

6888799

410

-90

360

43

Captains

YAAC015

596449

6888802

410

-90

360

36

Captains

YAAC016

596401

6888790

410

-90

360

39

Captains

YAAC017

596351

6888795

410

-90

360

36

Captains

YAAC018

596303

6888798

410

-90

360

39

Captains

YAAC019

596249

6888788

410

-90

360

41

Captains

YAAC020

596199

6888785

410

-90

360

35

Captains

YAAC021

594105

6888849

415

-90

360

37

Jatz

YAAC022

594099

6888902

415

-90

360

43

Jatz

YAAC023

594096

6888955

415

-90

360

27

Jatz

YAAC024

594093

6888999

415

-90

360

23

Jatz

YAAC025

594099

6889054

415

-90

360

18

Jatz

YAAC026

594103

6889103

415

-90

360

18

Jatz

YAAC027

594100

6889153

415

-90

360

14

Jatz

YAAC028

594096

6889201

415

-90

360

10

Jatz

YAAC029

594100

6889252

415

-90

360

16

Jatz

YAAC030

594097

6889271

415

-90

360

11

Jatz

YAAC031

594092

6889225

415

-90

360

18

Jatz

YAAC032

594098

6889176

415

-90

360

13

Jatz

YAAC033

594103

6889125

415

-90

360

13

Jatz

YAAC034

594101

6889069

415

-90

360

14

Jatz

YAAC035

594097

6889025

415

-90

360

16

Jatz

YAAC036

594090

6888973

415

-90

360

33

Jatz

YAAC037

594096

6888924

415

-90

360

45

Jatz

YAAC038

594114

6888538

415

-90

360

37

Jatz

YAAC039

594098

6888598

415

-90

360

39

Jatz

YAAC040

594097

6888651

415

-90

360

35

Jatz

YAAC041

594107

6888695

415

-90

360

46

Jatz

YAAC042

594290

6888684

415

-90

360

33

Jatz

YAAC043

594305

6888754

415

-90

360

33

Jatz

YAAC044

594300

6888898

415

-90

360

35

Jatz

YAAC045

594298

6888955

415

-90

360

36

Jatz

YAAC046

594302

6889002

415

-90

360

30

Jatz


Ground Floor, 31 Ventnor Street, WEST PERTH WA 6005 12

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