ASX RELEASE
14 NOVEMBER 2016
SIGNIFCANT INCREASE IN VOLUME AND CATEGORY TO MINERAL RESOURCE FOR URQUHART BAUXITE PROJECT
HIGHLIGHTS
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Total Mineral Resource now comprises 9.5 Mt of in-demand Direct Shipping Bauxite
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6.9 Mt JORC (2012) compliant Measured and Indicated Mineral Resource for Urquhart Bauxite project
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New 2016 Mineral Resource estimate 26% higher than the May 2015 maiden Inferred Mineral Resource
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An additional 8.5 Mt of lower grade material, over and above the 9.5 Mt has also been identified for potential beneficiation
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Area A slated for first mining in Q2 2017
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Pre-Feasibility Study nearing completion
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Mining and haulage contract tender process well advanced
Bauxite developer, Metallica Minerals Limited (Metallica) (ASX:MLM), is pleased to announce a maiden JORC (2012) compliant Measured and Indicated mineral resource for its Urquhart Bauxite project (UBx), five kilometres southwest of Weipa on Queensland's Cape York and slated for first mining next year.
The milestone includes an inventory increase in both volume and category despite the application of a higher cut-off grade in preparing the new estimate. The project now comprises a total JORC (2012) Measured, Indicated and Inferred resource estimate of 9.5 million tonnes, a significant 26% increase on the May 2015 maiden resource estimate.
The upgrade, which followed the completion of a close spaced 198-hole drilling program in August 2016, was independently prepared by IMC Mining Pty Ltd (IMC) and is summarised in the table below:
|
Classification
|
Tonnes
|
TotalAl2O3
|
TotalSiO2
|
AAl*
|
RSi**
|
|
Measured
|
3.0 Mt
|
54.4%
|
11.8%
|
43.2%
|
5.0%
|
|
Indicated
|
3.9 Mt
|
53.3%
|
13.1%
|
40.8%
|
5.2%
|
|
Inferred
|
2.6 Mt
|
50.3%
|
16.8%
|
37.6%
|
5.9%
|
|
Total
|
9.5 Mt
|
52.8%
|
13.7%
|
40.7%
|
5.3%
|
* AAl - Available Alumina @ 150◦C
** RSi - Reactive Silica @ 150◦C
Table 1 - Summary of Urquhart Bauxite low temperature JORC (2012) Resource
Metallica CEO, Mr Simon Slesarewich:
"We were confident that the overall tonnage at Urquhart Bauxite would increase from the 2015 JORC Mineral Resource. However, we are extremely encouraged by the grade of the deposit and in particular, the delineation of a new large low grade area which has the potential to be upgraded via conventional screening to deliver additional tonnages and extend the mine life of the project.
Work is significantly progressed on the Pre-Feasibility Study and is nearing completion. The project remains on schedule to commence production in Q2 of 2017."
URQUHART BAUXITE PROJECT SUMMARY
The Urquhart Bauxite project is situated approximately 5 km southwest of Weipa on Queensland's Western Cape York Peninsula (See Figure 1). Western Cape York is world-renowned for its extensive deposits of high-quality, export grade pisolitic bauxite.
The maiden Inferred Mineral Resource was announced on 11 May 2015 and was subsequently followed by a favourable mine planning internal assessment. Infill drilling of the main resource at Area A with 80m and 160m grid drilling in August 2016 (See Figure 2), has upgraded the Mineral Resource classification for the first time to Measured and Indicated, respectively. The drilling has also extended the Mineral Resource limits. Sonic drilling completed for density measurements has indicated a higher in-situ density than previously assumed for the maiden statement.
The new results and geological modelling confirm that the UBx resource is suitable for Direct Shipping Bauxite (DSB). A pre-feasibility study (PFS) to assess mining of DSB and shipping via nearby Hey Point is now well advanced and is expected to be completed and released within a month.
The project's Weipa-type pisolitic bauxite is of high quality export grade with high alumina content (>50% Al2O3) that is well known and accepted by Chinese and other alumina refineries.
UBx consists of two (2) bauxite plateaus, known as Area A and Area B; both of which are wholly contained within EPM15268, held 50% by Oresome Australia Pty Ltd (a wholly-owned subsidiary of MLM) and 50% by Ozore Resources Pty Ltd. The relevant Mineral Resource areas are now also included in a Mining Lease Application (MLA 100044).
In 2016, infill drilling on 80m and 160m grid spacing has concentrated on the planned initial mining development at Area A.
The 2016 Mineral Resource estimate for UBx (for both Areas A and B) for a contiguous geological horizon interpreted at a 48% Al2O3 cut-off for DSB is contained in Table 2. This is higher than the 45% Al2O3 cut-off grade used to prepare the maiden May 2015 resource statement. Additional details by area and a visual summary of the resource model, are provided in Figure 3 to Figure 7.
|
Classification
|
Area
|
Mt
|
Al2O3 %
|
SiO2 %
|
AAl%*
|
RSi %**
|
|
Measured
|
A
|
3.0
|
54.4
|
11.8
|
43.2
|
5.0
|
|
Indicated
|
A
|
3.9
|
53.3
|
13.1
|
40.8
|
5.2
|
|
Inferred
|
A
|
0.3
|
54.2
|
11.3
|
42.0
|
4.7
|
|
B
|
2.3
|
49.9
|
17.4
|
37.2
|
6.0
|
|
Subtotal
|
2.6
|
50.3
|
16.8
|
37.6
|
5.9
|
|
Total
|
9.5
|
52.8
|
13.7
|
40.7
|
5.3
|
* AAl - Available Alumina @150◦C
** RSi - Reactive Silica @ 150◦C
Table 2 - Urquhart bauxite project DSB Mineral Resource at an effective cut-off of 48% Al2O3
LOCATION
Urquhart Point (EPM15268) is located some 5 km southwest of the township of Weipa on the western side of Cape York (See Figure 1).
Figure 1 - Urquhart bauxite project location looking north-east
TENURE
EPM15268 forms part of the Cape York HMS and Bauxite Joint Venture (JV) currently held 50% by Oresome Australia Pty Ltd (a 100%-owned subsidiary of Metallica Minerals Limited), and 50% by Ozore Resources Pty Ltd.
The JV has lodged a Mining Lease Application (MLA 100044) an area of 1379Ha (Figure 1), covering the UBx Mineral Resource (Areas A and B).