SUMMARY
CORPORATE
-
Agreement reached for the Purchase of the 180,000 tpa capacity Burbanks gold treatment plant from Ramelius Resources Ltd for $2.5 million in staged payments over 24 months.
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A $1.6 million Placement to Sophisticated investors was completed through Taylor Collison to contribute to the purchase and refurbishment of the Burbanks mill.
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At the General Meeting of shareholders held on September 16 approval was received for the placement through Taylor Collison, in addition to consent for prior share issues and refresh the capital raising capacity.
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A further $17,367 was received from gold sales from Spargoville tribute mining agreement.
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Discussions continue with miners and project developers on the supply of gold ore for potential Toll treatment through Burbanks mill.
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Awaiting Stamp duty assessment on the purchase of the remaining 10% TYK equity in the Spargoville tenements. Completion of this final stage ensures MXR holds 100% of TYK original equity with no residual payments or royalties to TYK.
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Continue to review gold projects within economic transport distance to Burbanks plant for either Joint Venture or purchase.
WESTERN AUSTRALIA
SPARGOVILLE PROJECT
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9 hole Infill RC drill program completed on Eagles Nest gold project in July
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Commenced Eagles Nest resource calculation to JORC 2012 guidelines
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Tribute Mining at Eagles Nest contributes a further $17,367, at no cost to the company. Tribute Mining was interrupted during August due to significant rain in the area, however September contributed significantly better returns.
BURBANKS GOLD TREATMENT PLANT
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Agreement to purchase Ramelius Milling Services Pty Ltd including the Burbanks gold treatment plant signed on 2 August
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Budget estimates underway for refurbishment of the plant to operational status
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Engineering groups providing cost and work schedules for works during the quarter
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Name of company changed to Eastern Goldfields Milling Services Pty Ltd NARNDEE PROJECT
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No further works undertaken onsite during the quarter
SOUTH AUSTRALIA
MILLERS CREEK PROJECT
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Continue to seek expressions of interest for Joint Venture or sale/purchase of tenement package
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Rationalisation of tenement holding undertaken
ADELAIDE HILLS PROJECT
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Terramin continues to target late 2016 completion date for Mine Lease Application (MLA) for the Bird in Hand project
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Submission of MLA to Department for State Development is likely to be early 2017.
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First contingent $1 million payment is due upon approval to mine, potentially 2017/18 year.
DEVELOPMENT AND EXPLORATION ACTIVITIES
WESTERN AUSTRALIA
SPARGOVILLE PROJECT GOLD PROJECT
Maximus 90% up to 100%
The recent drill program completed on Eagles Nest was designed to infill to a drill density of approximately 20m x 20m over a strike extent of 80m in preparation for resource estimation. (Refer to Table 1).
The Eagles Nest Project is located on the Spargoville shear approximately 8km south of the previously mined high grade Wattle Dam gold mine. The drill results at the Eagles Nest Project demonstrate the potential for similar high grade gold mines away from Wattle Dam, within the prospective Spargoville Shear Zone.
Evaluation of all drill data at Eagles Nest indicates a mineralized body dipping steeply to the east, and plunging to the north is present at Eagles Nest. The mineralised body remains open to the north, south and down plunge.
Alteration assemblages included biotite, pyrrhotite, pyrite, arsenopyrite and chalcopyrite and are typical in areas of stronger gold mineralisation.
|
Hole ID
|
East
|
North
|
RL
|
From (m)
|
To (m)
|
Intersection
|
Comments
|
|
MXENRC023
|
357437
|
65207740
|
357
|
19
|
28
|
9m @ 2.56g/t
|
Including 1m @ 11.7g/t from 26m
|
|
MXENRC024
|
357458
|
65207740
|
356
|
39
|
45
|
6m @ 2.60g/t
|
|
MXENRC025
|
357472
|
65207740
|
355
|
50
|
52
|
2m @ 2.32g/t
|
|
MXENRC027
|
357447
|
65207780
|
357
|
15
|
22
|
7m @ 2.74
|
|
MXENRC028
|
357467
|
65207780
|
355
|
39
|
41
|
2m @ 2.40g/t
|
|
MXENRC029
|
357482
|
65207780
|
354
|
52
|
64
|
12m @ 2.62g/t
|
|
MXENRC030
|
357452
|
65207820
|
357
|
No Significant Result
|
|
MXENRC031
|
357471
|
65207820
|
355
|
48
|
51
|
3m @ 1.7g/t
|
|
MXENRC032
|
357486
|
65207820
|
355
|
64
|
65
|
1m @ 2.20g/t
|
Table 1: Eagles Nest RC Drilling Results July 2016
MXR conducted 3D modelling of the mineralised body to confirm the initial interpretation, which indicates the mineralised zone consists of several north plunging zones that persist at depths of up to 300m below surface.
The data collected for the Eagles Nest project is of sufficient quality to facilitate preparation of a preliminary resource calculation. This work will be completed during the December quarter.
Work is also progressing on orebody modelling and preliminary assessment of resources potential on the Larkinville project. This assessment will determine if sufficient data is available to prepare and release a resource calculation for the Larkinville project. The evaluation is necessary to ensure that these resource calculations meet the JORC 2012 guidelines for mineral resources. It is anticipated that the Larkinville resource calculation will be completed during the December quarter.
SPARGOVILLE PROJECT LITHIUM PROJECT
Maximus 75% up to 100%
An investigation was completed to assess the Lithium potential of the Larkinville tenement during the quarter. A series of rock chip samples were collected by MXR (see table 2) from a location north of a significant Lithium target area, identified in auger drilling conducted by previous explorers. This anomalous trend is up to 1300m long and averaging 400m wide of Li
>80ppm.
|
Target_ID
|
Sample Number
|
Easting
|
Northing
|
Li20 (%)
|
Cs ppm
|
Ta205
ppm
|
Rb
|
|
WL
|
LFR042
|
353693
|
6523160
|
0.07
|
80
|
24
|
867ppm
|
|
WL
|
LFR043
|
353696
|
6523163
|
0.01
|
267
|
49
|
4948ppm
|
|
WL
|
LFR044
|
353699
|
6523166
|
4.67
|
7198
|
130
|
2.28%
|
|
WL
|
LFR045
|
353687
|
6523157
|
5.29
|
6268
|
134
|
2.93%
|
|
WL
|
LFR046
|
353693
|
6523154
|
3.10
|
4731
|
85
|
1.66%
|
|
WL
|
LFR048
|
353685
|
6523152
|
0.027
|
159
|
97
|
2542ppm
|
Table 2: Rock chip samples collected by MXR.
Further to the south-west of the rock chip sample sites, several north-east trending features are seen in the Google earth image and these will be field checked to determine if they relate to additional pegmatite outcrops.
NARNDEE PROJECT