ABN 46 006 045 790
QUARTERLY REPORT for the period ended 30 June 2016
HIGHLIGHTS
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MT EUREKA GOLD PROJECT, NE YILGARN, W.A. (Cullen 100%)
Cullen Resource Limited ("Cullen" or the "Company") completed an RC drilling programme (9 holes for 960m) at the Galway prospect in late June, to follow up an air-core drill intersection of 5m at 12.43 g/t Au to the end of hole (45 - 50m) in "MIA011" - as reported previously.
This RC drill programme returned best assays, both on the MIA 011 cross section, of:
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5m @ 7.84 g/t Au (from 95m); and
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10m @ 4.74 g/t Au (from 50m) - (5m composite samples, down hole lengths).
Several intervals of 5 to 15m down-hole lengths of low-grade gold mineralisation ( > 0/1 g/t Au to 1.58 g/t Au) in 5 composite samples were also reported.
Collectively this gold mineralisation is related to both supergene zones and sheared contacts of felsic volcaniclastics with mafics/ultramafics along a NE-SW oriented target corridor which includes the Southern gold prospect.
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MT STUART IRON ORE JV, WEST PILBARA, W.A. (Cullen 30% and contributing)
Geological and mineralisation modelling of the Cardo Bore Channel Iron Deposit (CID) commenced during the Quarter in preparation for Mineral Resource Estimation. This work is expected to be completed next Quarter with the result assisting with mine planning and optimisation work.
A proposed work programme and budget for the FY to June 30 2017 has been submitted for consideration by the MSIOJV Management Committee.
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LITHIUM EXPLORATION PORTFOLIO (Cullen 100%)
Cullen has lodged six exploration licence applications in W.A. over areas totalling ~450km2 that it considers prospective for rare metal, tin-tantalum- lithium (Sn-Ta-Li) pegmatite mineralisation and which require further evaluation and prioritisation.
Cullen's applications are in important lithium regions including Pilgangoora-Wodgina, Greenbushes, Ravensthorpe and Yinnetharra. The applications include a number of reported pegmatite "Tin-Tantalum- Lithium (Sn-Ta-Li) or Industrial Pegmatite Minerals Target Group Commodity" occurrences (MINEDEX database). On 22 July 2016, Cullen reported to the ASX, the results of preliminary field assessment on four of these tenement applications, with encouraging results from ELA 45/4626, 30km NE of the Pilgangoora lithium project.
Cullen is also positioned in Finland for lithium and cobalt exploration with three reservation applications (one registered) - see Cullen's ASX announcement of 16 June 2016.
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KILLALOE JV GOLD PROJECT, NORSEMAN, W.A. (Cullen 20% - free carried to DTM)
JV Manager, Matsa Resources Limited (Matsa), has previously reported that the corridor of gold mineralisation which includes the gold discoveries of S2R Limited at Baloo, Monsoon and Nanook, (ASX : S2R , 25 July 2016) within S2R's Polar Bear project, is interpreted to extend to the SE into the Killaloe JV project area, and over a distance of ~20km. The Polar Bear gold corridor within the Killaloe JV ground may be indicated by extensive soil gold anomalism and gold intersections in previous drilling (including 2m @ 6 g/t in hole KRC023 at the Cashel prospect). IP anomalies have also been delineated within the Killaloe JV project area, as announced recently by Matsa (ASX:MAT 27 June and 5 July).
REGISTERED OFFICE: Unit 4, 7 Hardy Street, South Perth WA 6151
Telephone: 089 474 5511; FAX: 089 474 5588 Contact: Dr. Chris Ringrose, Managing Director: email: [email protected]
Figure 1
MT EUREKA, NORTH EASTERN GOLDFIELDS, W.A. - Gold and Nickel
Cullen holds 100% of ~450km2 of approved tenure and applications in the Mt Eureka Greenstone Belt in the North Eastern Goldfields of Western Australia (Fig.
2) which includes multiple targets for gold and nickel sulphides. In October 2015, Cullen drilled an intersection of 5m at 12.43 g/t Au to the end of hole (45 - 50m) at the Galway prospect, part of the large Galway-Southern mineralisation zone, where historical drill holes with maximum values greater than 0.5 g/t Au occur across an area of approximately 1200 x 200-400m (from air core and RC drill traverses at 50-100m along strike).
In late June 2016, Cullen completed a programme of RC drilling (9 holes for 960m) at the Galway prospect to test beneath and along strike from this air core anomaly and to better understand the controls to gold mineralisation. Assay data (Table 1) includes best of : 5m @ 7.84 g/t Au (from 95m) and 10m @ 4.74 g/t Au (from 50m) - 5m composite samples. Several intervals of 5 to 15m down-hole length of low grade ( > 0/1 g/t Au to 1.58 g/t Au in 5 composite samples) were also reported.
This gold mineralisation at Galway appears to be related to both supergene zones and sheared contacts of felsic volcaniclastics with mafics or ultramafics. However there is no extension of good gold grade along north-south strike from the 100m spaced drill traverses just completed. This suggests that gold mineralisation may be localised in NE-SW oriented, high-angle shear corridors with superimposed moderate to low angle, east to north - east dipping supergene zones. Local structural complexity/late faulting also occurs, which suggests that the optimal drill hole orientation across the target area may remain to be resolved. The interpretation of a previous detailed ground magnetics survey by Cullen, centred on the adjoining Southern gold prospect, support the suggested structural controls at Galway. The latest interpretation of regional geophysical data also highlights the presence of a strike persistent, NE-SW structural corridor including Galway and Southern prospects (see following section).
At the Taipan prospect, historical drilling has defined a strike extensive, strata parallel, gold anomalous shear zone (Figs. 4 and 5). This target has not been adequately explored down plunge or to the west across interpreted dolerites, which may be differentiated. New interpretation of geophysical data (see following section) also suggests that a major contact of mafics with sediments lies just east of the limit of historical drilling at Taipan and may be an important focus of shearing and possibly gold mineralisation. This target and trend will be a focus for further work. The Taipan soil anomaly and drilling is limited to the north east by palaeochannel sediments and is only lightly explored further north.