RDM ASX Announcement 23 October 2013
1
ASX ANNOUNCEMENT
1 November 2016
ACN 103 367 684
ASX Code: RDM
Red Metal Limited
is a minerals exploration company focused on the exploration, evaluation and development of Australian copper-gold and basemetal deposits.
Issued Capital:
174,771,919
Ordinary shares
4,425,000
Unlisted options
Directors:
Rob Rutherford
Managing Director
Russell Barwick
Chairman
Joshua Pitt
Non-executive Director
RED METAL LIMITED
Level 15
323 Castlereagh Street
Sydney NSW 2000
Ph: +61 2 9281 1805
Fax: +61 2 9281 5747
[email protected] www.redmetal.com.au
RED METAL SECURES POTENTIAL STRIKE EXTENSION TO THE LARGE MOUNT DROMEDARY GRAPHITE DEPOSIT
The large Mount Dromedary graphite deposit in the Cloncurry region of Northwest Queensland (Figures 1 and 2) is one of the higher grade flake graphite deposits in the world and is currently being evaluated for potential commercial development by Graphitecorp Limited (ASX:GRA).
Historic airborne electromagnetic imagery maps the Mount Dromedary graphitic schists as a strong conductive trend extending north into Red Metal's exploration license application EPMA26125 (Figure 1). Here it appears to bulge and thicken and is referred to by Red Metal as the "Bactrian" prospect.
Logs from historic copper exploration drilling located south and north of the Bactrian conductive trend record highly graphitic intervals of schist including 42 metres of coarse graphite from 30 metres in drill hole DO14 (see Figure 1 and Table 1).
The conductive zone within Red Metal's tenure appears to extend for about 600 metres and remains to be evaluated for its coarse graphite potential.
Graphitecorp's nearby Mount Dromedary graphite deposit is reported to contain large zones of high-grade graphite schist averaging 18.8% total graphitic carbon (TGC) with a large flake size distribution including 43% as jumbo to large. Localised drilling along the extensive graphite schist trend has outlined a Total Mineral Resource of 14.3 Mt @ 13.3% TGC for 1,908,000t of contained graphite. Preliminary metallurgical test work suggests the Mount Dromedary graphite can be easily concentrated to 94%+ via simple flotation, and also confirmed the graphite flake could be purified to 99.93%+ suitable for advanced battery and other markets. Graphitecorp's vision is to produce 50,000 tonnes of high value graphite product per year.
Red Metal's Bactrian prospect was secured in the course of the Company's ongoing base metal exploration in the Mount Isa Inlier and represents a valuable, low cost exploration opportunity to be drill tested once granted in the year ahead.
Queensland Explorer of the Year 2013
DO14 - Coarse, highly graphitic schist logged over 42m from 30m
[Figure 1] Mount Dromedary North Project: Historic airborne electromagnetic imagery showing the highly conductive zones (red and yellow) associated with the Mount Dromedary graphitic schist trend mostly located within Graphitecorp's EPM26025 but extending into Red Metals EPMA26125. Mapped graphite schist shown as a black polygon. Note the small lateral extent of the published coarse graphite resources. The untested "Bactrian" target zone in Red Metal's EPMA26125 is shown as a white polygon at the northern end of the Mount Dromedary conductive trend. Refer to Table 1 for a summary of graphite recorded in historic base metal exploration holes surrounding the Bactrian conductive trend.
[Table 1] Mount Dromedary North Project: Summary of graphite recorded in historic CRA Exploration Pty Ltd drill logs surrounding the "Bactrian" conductive trend.
|
Hole ID
|
Graphite in Logs
|
Interval Metres
|
East GDA94
|
North GDA94
|
|
DO11
|
Graphitic schist from 4m to 30m
|
26
|
418569
|
7835757
|
|
DO12
|
Missing - no log in historic records
|
No log
|
418426
|
7835170
|
|
DO16
|
Mixed graphitic and biotite schist from 30 to 54m
|
24
|
418396
|
7835341
|
|
DO14**
|
Coarse graphitic schist from 30m to 72m
|
42
|
417410
|
7834422
|
|
DO15*
|
No graphitic schist logged
|
None
|
418287
|
7834911
|
|
DO13*
|
Graphitic schist from 36m to 40m
|
4
|
417520
|
7835346
|
* Drill hole appears to be positioned too far west to intersect the targeted "Bactrian" conductor.
** Drill hole located in GRA's adjacent tenement (see Figure 1).
"Bactrian" Red Metal 100%
Untested Extension to the Large "Mount Dromedary" Graphite Deposit
[Figure 2] Northwest Queensland and Northern Territory: Major deposits and Red Metal tenement locations including the Bactrian graphite target.
For further information concerning Red Metal's operations and plans for the future please refer to the recently updated web site or contact Rob Rutherford, Managing Director at:
Phone +61 (0)2 9281-1805
Fax +61 (0)2 9281-5747
www.redmetal.com.au
Rob Rutherford Russell Barwick
Managing Director Chairman
The information in this report that relates to Exploration Results is based on and fairly represents information and supporting documentation compiled by Mr Robert Rutherford, who is a member of the Australian Institute of Geoscientists (AIG). Mr Rutherford is the Managing Director of the Company. Mr Rutherford 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" (the JORC Code). Mr Rutherford consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.