ASX Limited
Market Announcements Platform 11th June 2016
ASX: FNT
BULAGO GOLD AND COPPER EXPLORATION SUMMARY
Frontier Resources Ltd is pleased to announce the production of a comprehensive Summary Report regarding all exploration completed at the Bulago EL, Papua New Guinea. The Company is targeting intrusive/ epithermal related gold deposits and copper- gold -molybdenum porphyries in the highly prospective Papuan Fold Belt.
The Fold Belt contains the Ok Tedi porphyry copper-gold Mine (located 120km WNW), Porgera intrusive/ epithermal related gold Mine (100km east) and Kili Teke porphyry copper-gold Deposit (50km east). The giant Grasberg porphyry copper-gold +skarns is in this same zone in West Papua.
Drilling is strongly warranted and exploration to capitalise on the increased US dollar gold price and leveraged Australian dollar - PNG Kina is planned to include drilling at the high grade gold Swit East Creek Upper and Lower Zones and the SW porphyry target ASAP.
POSSIBLE DRILL TARGETS
Swit Kai high grade gold: 3 holes at East Creek Upper (90m) & 3 holes at Lower (90m) 2 holes at Central Upper (20m) & Lower (40m)
2 holes on Kapia ridgeline (120m) targeting the plunge
High grade /bulk gold: 1 hole at SK River Zone East (100m), targeting OTML 'diorite' that graded 37 g/t 1 hole at SK Headwater Zone (100m), targeting gold bearing structural zones
Low grade gold: 1 hole in NE Bulago Valley targeting very strong gold- zinc soil anomalism This hole may transition to porphyry copper at depth
Porphyry copper-gold: 1 hole in SW Bulago Valley at strong copper+ gold soil anomalism W of BUL007 1 hole in NW Bulago Valley at strong copper + gold soil anomalism W of BUL001
Polymetallic Skarns: 2 holes in SE Bulago Valley at Funutu's very strong gold + zinc +lead soil anomalism, gold - zinc skarn outcrop zone + aeromagnetic anomaly & Porgera Zone 7 type target (150m)
Three styles of mineralisation:
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Very high-grade gold (to 754 g/t) associated with intrusive/host rock contact breccia and shear zones.
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Porphyry copper- gold -molybdenum mineralisation associated with the stock itself (to 3.38 g/t gold).
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Very high-grade skarn (to 205 g/t gold) mineralisation associated with the intrusives/ overlying limestones.
The drainage basin (3.5km x 5.5km) has a very well defined, strong, cohesive, ~14 km2 gold in stream sediment/ panned concentrate anomaly (with 6 discrete and large zones) and a well-defined gold, zinc and copper (+/- lead) drainage anomaly that covers the centrally located porphyry copper / gold mineralised intrusive.
HIGH-GRADE GOLD MINERALISATION
o Grid soils defined at least 14 gold anomalies (>0.10 g/t gold), with 3 about 1,000m long and Suguma the least impressive. The ~1,000m x 350m anomaly in the NE contains the peak gold, zinc and lead in soil anomalism on the grid. Anomaly 1 ([~1,000m x 500m] was cut by hole BUL005 and the bottom of hole BUL006, but apart from Swit Kai, no other gold soil anomalies have been drilled.
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Outcrops at Swit Kai were, systematically broken/channelled (with a demolition jackhammer), sampled, mapped, evaluated and tracked laterally in 'trenches' over 95m and 120m strike lengths, respectively. Gold in soil anomalies along trend to both the east and west of the Lower Zone, indicate an excellent continuing strike length to +480m total.
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High grade gold at Swit Kai is hosted by narrow silica/ quartz veins with multiple episodes of intense brecciation, lead + zinc and semi massive sulphides in intrusives proximal to large scale normal moderate/steep south dipping structures and conformable with horizontal sediments. Both structures have zones with >100 g/t gold.
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Frontiers drilling at Swit Kai in late 2014 (with the Company's CSD500 rig) attempted to evaluate the very high grade gold outcrops at the Central Upper Zone, but ultimately we drilled underneath the mineralised horizon with 6 holes and SKD004 had 0.50m grading 46.3 g/t gold + 11.4 g/t silver, from 1.20m to 1.70m.
In 4/2016 drilling targeted extensions 130m to the east, targeting 2.0m grading 195.0 g/t gold and 3m grading 45.2 g/t gold (not yet tested). Three holes (37.4m) had a best intercept in EZU001 of 5.0m of 13.92 g/t gold (from surface), including 1.0m of 29.7 g/t gold + 6.5 g/t silver, in a flat lying /conformable zone. Hole EZU002 returned 3.6m of 7.92 g/t gold (from surface) and EZU003 had 2m of 6.44 g/t gold, plus 1m of 4.79 g/t gold.
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Gold anomalies in drainages to the west of Swit Kai indicate its unevaluated strike potential and drainages to the N and NW have never been sampled. The region has excellent mineralisation potential, with strong radiometric and aeromagnetic anomalies that require substantial evaluation.
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High-grade gold mineralisation model refined and it shows excellent strike potential that can be easily drilled. Many new targets are proposed from topographic modelling. Flat spots indicate silicification and possibly gold mineralised intrusive that then feeds from and up into the mod/steep dipping mineralised structures. High grades will be targeted at the structural intersection (flat plunge). Three south dipping structural zones have been mapped (with the Swit Kai Zone in the middle) that all contain known gold, zinc and copper mineralisation and have been mapped for >2 kilometres along strike. This increases tonnage potential significantly.
PORPHYRY COPPER - GOLD MINERALISATION
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Seven holes were drilled on the porphyry target in the Bulago Valley. Petrography notes transitional potassic - calc-potassic alteration and that the complex suite of intrusives at Bulago are similar to alkali porphyries at Ridgeway (NSW), Dinkidi (Philippines) and in BC. They are elongate vertically, with a small cross-section and high-grade copper- gold in a core of intense alteration (calc-potassic) and quartz- sulphide veins. Alteration haloes from the core are narrow (200-300m).
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The strongest individual copper in soil anomaly is >1,200m x 125m, trends NNW and is located west of the best hole (BUL007). The porphyry geochemistry indicates two mineralisation events /zones, being copper + gold and gold only. Assay intercepts from BUL007 are: 95.3m grading 0.15 g/t gold (from 243m, 61.0m grading 0.18 g/t gold plus 0.10 % copper (from 350m) and 42.2m grading 0.11 g/t gold plus 0.14% copper (from 538.8m down hole).
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OK Tedi quote --The results of the soil geochemistry and drilling at Bulago suggest that two high-grade cores may be located at depth broadly bounded by holes BUL001, 003, 006 and BUL007 in the north and at depth broadly bounded by holes BUL002, 004,005 in the east.
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Fourteen skarn anomalies were interpreted from aeromagnetics and geology, with ten proximal to the overlying limestone contact and spaced consistently around the basin. Three are within the basin and one is a sinkhole near the EL's topographic high in the SE. Further evaluation is strongly warranted.
FRONTIER RESOURCES LTD
P.A.McNeil, M.Sc., MAIG
Competent Person Statement:
The information in this report that relates to Exploration Results is based on information compiled by Peter A. McNeil - Member of the Aust. Inst. of Geoscientists. Peter McNeil is the Chairman/Managing Director of Frontier Resources, who consults to the Company. Peter McNeil has sufficient experience which is relevant to the type of mineralisation and type of deposit under consideration to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting Exploration Results, Mineral Resources and Ore Resources. Peter McNeil consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
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Frontier Resources Ltd Exploration Licence Information
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Licence No.
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Date From
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Date To
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Ownership
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Area
(SQ KM)
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Lat. Sub Blocks
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Bulago River*
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EL 1595
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7/07/2014
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6/07/2016
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100% Frontier Gold PNG Ltd
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100
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30
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Muller Range
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EL 2356
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31/12/2015
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30/12/2017
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100% Frontier Copper PNG Ltd
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187
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56
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* Under renewal
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287 SQ KM
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NB: The Papua New Guinea Mining Act of 1992 stipulates that ELs are granted for renewable 2 year Terms (subject to Work and Financial Commitments) and the PNG Government maintains the right to purchase up to 30% project equity at "Sunk Cost" if/when a Mining Lease is granted.
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The following information is provided to comply with the JORC Code (2012) requirements for the reporting of exploration trenching results for Exploration Licence 1595 in Papua New Guinea.
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JORC CODE 2012
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Section 1 -- Sampling Techniques and Data
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Criteria
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Explanation
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Commentary
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Sampling techniques
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o
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Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down whole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
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As noted herein
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o
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
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Supervised by Exploration Manager
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o
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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 (e.g. 'reverse circulation drilling was used to obtain 11m samples from which 3 kg was pulverised to produce a 30g 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 (e.g. submarine nodules) may warrant disclosure of detailed information.
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Drilling techniques
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o
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Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. 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).
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As noted herein.
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Drill sample recovery
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o
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Method of recording and assessing core and chip sample recoveries and results assessed
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Linear arithmetic
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o
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Measures taken to maximise sample recovery and ensure representative nature of the samples.
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As noted herein.
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o
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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.
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No
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Logging
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o
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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.
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Yes
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o
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Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
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As noted herein.
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o
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The total length and percentage of the relevant intersections logged
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All
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Sub-sampling techniques and sample preparation
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o
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If core, whether cut or sawn and whether quarter, half or all core taken.
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Quarter core sampled
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o
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If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
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NA
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o
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For all sample types, the nature, quality and appropriateness of the sample preparation technique.
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Appropriate
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o
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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
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Supervised by Exploration Manager
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o
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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.
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Supervised by Exploration Manager
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o
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Whether sample sizes are appropriate to the grain size of the material being sampled.
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Supervised by Exploration Manager
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Quality of assay data and laboratory tests
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o
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The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
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Appropriate. Quarter diamond blade cut drill core was 50 gm fire assayed for gold
+40 element ICP with total 4 acid digestion Acceptable accuracy
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levels established
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o
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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.
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As noted herein.
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Verification of sampling and assaying
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o
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The verification of significant intersections by either independent or alternative company personnel.
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All by J.Kirakar and K.Igara
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o
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The use of twinned holes.
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Nil
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o
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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
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As noted herein.
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o
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Discuss any adjustments to assay data.
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None
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Location of data points
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o
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Accuracy + quality of surveys used to locate drill holes (collar + down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
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NA
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o o
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Specification of the grid system used.
Quality and adequacy of topographic control.
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Map datum is AGD 066.
40m contours - 1:100,000 plans, 20m -SRTM contours.
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Data spacing and distribution
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o
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Data spacing for reporting of Exploration Results.
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As noted herein and refer to any attached plans for details.
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o
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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
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Yes
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o
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Whether sample compositing has been applied.
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No
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Orientation of data in relation to geological structure
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o
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Whether the orientation of sampling achieves unbiased sampling of possible structures to the extent this is known, considering the deposit type.
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If and as stated in text.
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o
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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.
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If and as stated in text
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Sample security
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o
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The measures taken to ensure sample security
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Normal baggage-freight procedures
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Audits or reviews
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o
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The results of any audits or reviews of sampling techniques and data.
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No specific audits or reviews of sampling techniques and data have been undertaken.
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Section 2 -- Reporting of Exploration Results
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Criteria
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Explanation
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Commentary
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Tenure
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o
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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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AS noted herein
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Exploration done by other parties
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o
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Acknowledgment and appraisal of exploration by other parties.
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Exploration in the region was initiated in the late 1960s as part of a PNG porphyry copper deposit search. It was explored for gold initially in the mid 1980's.
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Geology
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o
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Deposit type, geological setting and style of mineralisation.
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Gold intrusive -epithermal related targets, porphyry copper-gold - molybdenum and higher grade gold -silver-zinc-lead skarns.
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Drill hole information
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o
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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:
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Drilling underway and Information tabulated herein.
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Easting and northing of the drill hole collar
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Information noted herein.
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Elevation or RL (Reduced Level- elevation above sea level in metres) of the drill hole collar
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Information noted herein.
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Dip and azimuth of the hole
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Information noted herein.
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Down hole length and interception depth
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Information noted herein.
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Hole length
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Information noted herein.
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o
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If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
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Not applicable
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Data aggregation methods
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o
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In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
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Tables of results included show data aggregation if applied.
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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
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Is this occurs, it is stated in the text.
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o
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The assumptions used for any reporting of metal equivalent values should be clearly stated.
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No metal equivalent values are reported.
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Relationship between mineralisation widths & intercept lengths
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o
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These relationships are particularly important in the reporting of Exploration Results.
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Moderately understood
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o o
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If the geometry of the mineralisation with respect to drill hole angle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').
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Reported
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