Resources Limited
ABN 52 064 121 133
QUARTERLY REPORT
for the three months ended 30 September 2016.
ASX Code ‐ JRL
For further information, contact:
Mr Lindsay Dudfield Jindalee Resources Limited
Telephone: 61 8 9321 7550
Facsimile: 61 8 9321 7950 Email: [email protected]
Level 2
18 Kings Park Road West Perth WA 6005
PO Box 1033
West Perth WA 6872
This report and further information are available on Jindalee's website at:
www.jindalee.net
Lindsay Dudfield Managing Director 27 October 2016
Figure 1 ‐ Project Location Plan
HIGHLIGHTS
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Jindalee continues rebuilding its portfolio with first ranking applications lodged over areas in WA prospective for gold, nickel and uranium
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Jindalee remains well positioned to capitalise on further opportunities becoming available
FINANCIAL
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The Company has a total of 34.8 million shares on issue
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At 30 September 2016, Jindalee had no debt and held cash and shares worth $5.5M (equivalent to $0.16 per share).
Prospect Ridge Project (Jindalee 100%)
The Prospect Ridge Project (formerly referred to as the Arthur River project) comprises one Exploration Licence application (EL5/2016), covering the Arthur River and Lyons River magnesite deposits, located 55km southwest of Burnie in NW Tasmania1 (Figure 2). Jindalee holds a 100% beneficial interest in the Project.
Geoscience Australia's website notes that the Arthur‐Lyons River area covered by Jindalee's application contains the third largest inventory of magnesite Economic Demonstrated Resources in Australia (refer www.ga.gov.au).
Magnesite is the primary source of magnesia (MgO), which is mainly used in agriculture, mineral processing, paper manufacture and refractory industries. Magnesia is also used to produce magnesium (Mg), a light metal widely used in the aerospace, automotive and electronics industries. Both magnesite and magnesium are included on the EU's latest list of 20 critical materials.
Figure 2 - Prospect Ridge Project. Location plan and Simplified Geology.
In 2009 Beacon Hill Resources Plc acquired the Arthur River deposit for £7.5m and in May 2012 announced a JORC resource estimate². No resources were estimated for the nearby Lyons River deposit.
Based on historical exploration records, Jindalee considers there is very good potential to increase the resource base at Arthur River by drilling the extensions of this deposit. There is also excellent potential to establish JORC compliant resources at Lyons River, where historical drilling by CRAE (a subsidiary of Rio Tinto) in the early 1980's returned wide, high‐grade intercepts, including 200m @ 43.0% MgO from DDLR1, and 180m @ 42.0% MgO from DDLR2, highlighting the scope to create a much larger project than envisaged to date.
Jindalee is currently accessing and compiling the extensive database for the Project and looks forward to commencing work as soon as EL5/2016 is granted.
Aries Project (Jindalee 100%)
Jindalee's Aries Project is an uncontested Exploration Licence application (E80/5027) located in the central Kimberley region of Western Australia, approximately 270km east of Derby and 230km west of the Argyle diamond mine.
The project covers the Aries kimberlite cluster, including the Aries, Athena, Helena and Persephone diamondiferous kimberlite pipes. Although significant exploration was undertaken in the period from 1986 to 2005, Jindalee believes that there is very good potential to find additional diamondiferous pipes and alluvial diamond deposits in the area. Encouragingly, 95% of the diamonds recovered from the project have been gem quality. Jindalee has commenced compiling the historical data and looks forward to commencing work as soon as E80/5027 is granted.
See below photo's (Figure 3 & Figure 4) of diamonds recovered from the Project in 2005³
Figure 3 ‐ Athena - Total of 13.78 carats (largest diamond 0.79 carats)
Figure 4 ‐ Persephone - Total 5.16 carats (largest diamond 0.67 carats)
Kenya Project (Jindalee 100%)
Jindalee's Kenya Project comprises a wholly‐owned Exploration Licence application (E39/1998) lodged after the period and located 170km northeast of Kalgoorlie in the Eastern Goldfields region of WA. E39/1998 abuts the northern boundary of the mining lease containing Saracen Minerals' 0.2Moz Safari Bore gold deposit, situated 3km along‐strike to the south, and is 5km northwest of Saracen's Deep South underground mine.
Available historical open file exploration information is currently being compiled for this project.
Cardinia JV (Jindalee 11% free carried)
Jindalee holds an 11% interest in a group of tenements at Cardinia, located 30 kilometres east of Leonora. The joint venture project forms part of Kin Mining NL's (ASX: KIN) extensive Leonora Gold Project holdings. Jindalee's interest in the Cardinia joint venture ground is free‐carried to completion of a Bankable Feasibility Study. No work was reported from the Cardinia joint venture tenements during the period.
Alchemy Resources (Jindalee 7.6% of issued capital)
Jindalee holds a significant equity interest in Alchemy Resources (ASX: ALY). This provides shareholders with exposure to Alchemy's rapidly expanding portfolio of projects, including Alchemy's existing Gascoyne region gold and copper‐gold projects, the newly acquired Karonie gold project in WA and the recently announced joint venture with Heron Resources over a group of gold and base metal prospective properties in central NSW.
Alchemy's Bryah Basin copper project is located to the west of Sandfire Resources' Doolgunna project and covers the extensions of the Narracoota Volcanics, the unit which hosts Sandfire's high grade DeGrussa copper‐gold mine. Independence Group (ASX: IGO), a well‐regarded and successful nickel, base metal and gold producer and explorer is farming into Alchemy's base metal‐prospective Bryah Basin tenements.
Alchemy also has a joint venture agreement in place with Billabong Gold Pty Ltd (which acquired the Plutonic Gold Mine from Northern Star on 12 October 2016) under the terms of which Billabong is responsible for the ongoing exploration of the remaining Gascoyne project tenements, not covered by the pre‐existing joint venture with IGO. This joint venture includes a number of existing gold prospects and occurrences, as well as other areas considered prospective for the discovery of further gold deposits.
The Karonie acquisition abuts Salt Lake Mining's 0.5Moz Aldiss project tenements and features several prospects where previous drilling, mostly by Integra Mining, has returned significant bedrock gold intersections, including 8m @ 3.37g/t at Little Peck, 3m @ 14.57g/t at Batavia and 10m @ 2.55g/t at Taupo.
The joint venture agreement with Heron Resources includes six Exploration Licences covering a combined 674km². The most advanced project is the Overflow project in the Cobar district, with follow up drilling of high‐grade gold intercepts scheduled to commence in December 2016.