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Metminco Limited (MNC)

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Thursday 30 August, 2018

Metminco Limited

Tesorito Drilling Results

RNS Number : 2082Z
Metminco Limited
30 August 2018
 

ASX / AIM ANNOUNCEMENT

 

 

 

HIGHEST GOLD GRADES DRILLED TO DATE AT TESORITO

This announcement is an abridged version of the announcement and does not include schematics and appendices.  For the full announcement, please refer to the Company's website at www.metminco.com.au

 

Highlights

 

·     Tesorito drill hole results from TS-DH-07 include:

 

64m @ 1.67g/t Au from 144m, within

253.1m @ 1.01 g/t Au from 2.9m 

 

·     The latest drill hole results point to Tesorito being a significant near surface porphyry gold target just 800m from the gold Resources and Reserves defined at Metminco's Miraflores deposit (refer Table 2 below). A second mineralised porphyry target is located just 2km south of Tesorito at Chuscal. Metminco is currently advancing negotiations with AngloGold Ashanti on this target. These new targets could significantly impact on the positive Feasibility Study announced on Miraflores, given that all three lie within a 1.3km radius.

 

·     Drill hole TS-DH-07 was drilled perpendicular to and beneath TS-DH-02 which, as previously reported, gave 384m @ 1.01g/t from 16m. TS-DH-07 demonstrates the highest grades seen to date at Tesorito with significant width and downhole continuity to the higher grade mineralisation (over 1.5 g/t Au).

 

·     Mapping and geochemistry suggest potential repetition of the higher grade zone to the north with the higher grade mineralisation in TS-DH-07 associated with a dilational zone within a north-northeast (NNE) orientated 600m X 350m coincident gold and copper soil anomaly

Executive Chairman Mr. Kevin Wilson commented:

"The confirmation of a mineralised porphyry with higher grade gold mineralisation at Tesorito is a material step forward for the Company.

We are very excited by the results of this drilling. It demonstrates that there is potential for the Company's 880koz Resource at Miraflores to be complemented by this near surface mineralised target at the Tesorito porphyry, only 800m to the southeast. Importantly, any near surface, higher grade gold mineralisation delineated at Tesorito has the potential to materially improve the economics of the Miraflores feasibility study though an integrated development plan, sharing mine and process infrastructure. In addition, we have additional targets at Chuscal and Dosquebrados requiring follow-up, all within a potential radius of operation for a centralised plant."

All references to mineralisation that pertain to the Tesorito Target are limited in meaning to the geological processes that result in the introduction of minerals of economic interest. For the avoidance of doubt, there is no guarantee that the mineralisation at Tesorito will be of sufficient concentration and extent as well as having favourable geotechnical and metallurgical characteristics that make it profitable to extract using modern mining and beneficiation processes.

 

 

Summary

 

Metminco Limited (ASX & AIM: MNC) ("Metminco" or the "Company") is pleased to announce the results of the assays (Table 1) received for the final two diamond drill holes (plus partial results received for the TS-DH-05) from its Tesorito gold prospect in the Quinchia district, Colombia. The Quinchia district occurs in the mid Cauca Belt, host to large gold deposits such as Buritica (10Mozs), Marmato (8.1Mozs), La Colosa (28Mozs) and Nuevo Chaquiro (5.7Mozs Au & 3.6Mt Cu).

 

The Tesorito prospect occurs 800m southeast of the Company's Miraflores deposit (0.88Moz gold Resource, see Table 2 below) and approximately 3km southeast of the Company's Dosquebradas deposit (0.92Moz gold Resource estimated under NI 43-101 - as disclosed in the Company's announcement dated 7 March 2016). It is also located approximately 2km north of the undrilled Chuscal porphyry target (currently under negotiation).

 

The Company's 1,500m diamond drilling program, was designed to confirm and expand along strike the gold mineralisation intersected in drilling by a previous operator. Particularly, hole TS-DH-02 which reported 384m @ 1.01g/t Au from surface to end-of-hole (see Table 1 below and refer to the Company's announcement of 7 March 2016). The program also tested a previously undrilled geophysical anomaly located approximately 300m to the northwest of TS-DH-02.

 

Next Steps at Tesorito

·     Consolidate the new drill information with historical data including recently sourced geophysical studies.

·     Design a program of drilling to both scope the known high grade mineralisation at surface; and investigate potential repetitions of the high grade zone within the broader intrusive porphyry complex.

·     Investigate the depth potential of mineralised porphyry by considering a deep drill hole to test the depth extension of the high grade gold zone into what is thought to be higher grade base metals at depth.

 

Results

The program comprised four diamond drill holes (holes TS-DH-04, 05, 06 and 07;  Results of the entire program are summarised (along with three previously drilled holes) in Table 1 below.

Drill Hole

Assays (1)

TS-DH-01 Previously drilled and reported

266.5m @ 0.46 g/t Au, 0.58 g/t Ag & 0.03% Cu from 83.5m

TS-DH-02 Previously drilled and reported

384.0m @ 1.01 g/t Au, 0.86 g/t Ag & 0.08% Cu from 16.0m including:

 

32.5m @ 1.34 g/t Au, 0.8 g/t Ag & 0.09% Cu from 48.8m; and

156.6m @ 1.28 g/t Au, 0.9 g/t Ag & 0.09% Cu from 88.3m.

 

TS-DH-03 Previously drilled and reported

254.9m @ 0.51 g/t Au, 0.7 g/t Ag & 0.05% Cu from 9.3m

TS-DH-04 Recently drilled and reported (refer ASX release of 31 July 2018)

179.8m @ 0.7 g/t Au, 0.9 g/t Ag & 0.06% Cu from 3m including:

 

21.8m @ 1.03 g/t Au, 0.9 g/t Ag & 0.08% Cu from 3m; and

88.0m @ 0.84 g/t Au, 1.0 g/t Ag & 0.08% Cu from 26.8m.

 

TS-DH-05 Recently drilled and partly reported (refer to the Company's announcement  of 31 July 2018)

140.3m @ 0.44 g/t Au, 0.6 g/t Ag & 0.05% Cu from 1.7m including:

 

16.9m @ 1.01 g/t Au, 0.34 g/t Ag & 0.07% Cu from 1.7m; and

10.9m @ 0.56 g/t Au, 1.1 g/t Ag & 0.08% Cu from 26.8m; and 15.5m @ 0.61 g/t Au, 0.83 g/t Ag & 0.06% Cu from 112.6m.

 

38.7m  @ 0.40 g/t Au, 1.25 g/t Ag & 0.05% Cu from 179.0m including:

 

10.3m @ 0.50 g/t Au, 0.8 g/t Ag & 0.05% Cu from 179m.

 

75.8m @ 0.60 g/t Au, 0.71 g/t Ag & 0.04% Cu from 259.9m including:

 

21.0m @ 0.76 g/t Au, 0.8 g/t Ag & 0.05% Cu from 278.8m; and 12.9m @ 1.07 g/t Au, 0.5 g/t Ag & 0.04% Cu from 308.2m.

 

TS-DH-06 Recently drilled

130.0m @ 0.31 g/t Au, 0.48 g/t Ag & 0.03% Cu from 2.0m including:

 

18.0m @ 0.77 g/t Au, 1.0 g/t Ag & 0.07% Cu from 78.0m.

 

TS-DH-07 Recently drilled

253.1m @ 1.01 g/t Au, 0.87 g/t Ag & 0.07% Cu from 2.9m including:

 

18.0m @ 1.23 g/t Au, 1.0 g/t Ag & 0.07% Cu from 54.0m; and 10.0m @ 0.89 g/t Au, 1.1 g/t Ag & 0.07% Cu from 94.0m; and 10.0m @ 1.18 g/t Au, 0.57 g/t Ag & 0.06% Cu from 126m; and 64.0m @ 1.67 g/t Au, 0.91 g/t Ag & 0.11% Cu from 144.0m; and 10.0m @ 1.10 g/t Au, 1.2 g/t Ag & 0.06% Cu from 240.0m.

 

 

 

Table 1. Summary assay results from all drill holes to date at Tesorito.

(1)    Refer to JORC Table 1 Section 2 - Data aggregation methods (appended) for details on compositing.

From the results of the Tesorito drilling:

·     all seven holes drilled into Tesorito have returned gold mineralisation from a multi-phase andesitic porphyritic intrusive complex;

·     higher gold grades (TS-DH-02 and TS-DH-07) are continuous and occur within a much broader mineralisation envelope of approximately +0.5 g/t Au envelope;

·     the localised controls on higher order gold mineralisation traversed by TS-DH-02, TS-DH-04 and TS-DH-07 are thought to be NW orientated early phase hydrothermal pulses injected within a NNW ellipsoid dilatational zone. At Tesorito, similarly shaped geochemical anomalies have been interpreted from the soil geochemistry to the north of the mineralisation identified in this drilling potentially representing additional  repetitions of similar early phase structurally controlled pulses;

·     to date, porphyry mineralisation has been intersected down to 380m below surface (TS-DH-02). Copper and molybdenum grades are seen to broadly increase with depth in the deeper hole (TS-DH-02);

·     intense phyllic alteration is mapped by the significant induced polarisation (IP) geophysical anomaly on the western edge of the Tesorito porphyry complex and is seen in the surface mapping, soil geochemical sampling and in the drill core (TS-DH-05 and TS-DH-06). This suggests a major hydrothermal system exists approximately 200-300m to the northwest of the locus of the Tesorito prospect.

Details of the Program

TS-DH-04 was collared from the same platform that was used to drill TS-DH-02 and was drilled at a steeper angle (70 degrees) to test the well-mineralised stockwork veining developed in porphyritic sub-volcanic (shallow depth) dacitic and andesitic intrusives.

TS-DH-05 was drilled to test for lateral and upward extensions of the well-mineralised stockwork veining traversed by drill hole TS-DH-02. In addition, TS-DH-05 was designed to test the nature and extent of the mineralisation beneath the >100 ppb gold in soil geochemical anomaly and the high grade (up to 2m at 6.6 g/t Au - refer to the Company's announcement of 27 March 2018, Appendix D) gold assays returned from sampling in trenches.

TS-DH-06 was drilled principally to test the nature and extent of what has caused the strong IP geophysical response over a north-northeast trending 1,000m long x 300m wide zone developed to the northwest of the gold in soil geochemical anomaly. It was designed to traverse the zone which was modelled to have the strongest coincident chargeability and conductivity readings.

TS-DH-07 was designed to test the three-dimensional geometry of the higher-grade mineralisation returned from TS-DH-02 and any mappable controls which could assist in determining the extent and frequency of the higher-grade zones within the porphyry complex.

Details of the drill results

TS-DH-05 confirmed the presence of stockwork veining developed in porphyritic sub volcanic dacitic and andesitic intrusives from 0 to 293m depth down hole, after which it passed into a less veined but increasingly sericite-altered porphyry for the remainder of the hole, which was terminated at 390.5 m. TS-DH-05 returned intercepts of 140.3m @ 0.44 g/t Au, 0.58 g/t Ag and 0.05% Cu from 1.7m; 38.7m @ 0.40 g/t Au, 1.25 g/t Ag and 0.05% Cu from 179m and 75.8m @ 0.60 g/t Au, 0.71 g/t Ag and 0.04% Cu from 259.9m.The extent and tenor of the mineralisation, resembles the results  obtained from TS-DH-01 located approximately 100m towards the northeast.

TS-DH-06 returned core exhibiting similar lithologies to those encountered in the lower hundred metres of TS-DH-05, comprising increasingly sericite-altered porphyritic dacitic and andesitic intrusive rocks. The intense sericite alteration, commonly referred to as phyllic alteration, is an important component of porphyry-style precious and base metal systems and is considered the likely cause of the strong IP geophysical response. The fact that this significantly intense anomaly extends for nearly 1km along the western limits of the porphyritic intrusive complex is indicative of a large zone of intensive phyllic alteration likely to be associated with a porphyry-style hydrothermal system of significant scale and intensity. TS-DH-06 returned intercepts of 130m @ 0.31 g/t Au, 0.48 g/t Ag and 0.03% Cu from 2m including 18.0m @ 0.77 g/t Au, 0.96 g/t Ag and 0.07% Cu from 78m.

TS-DH-07 drilled through significant intervals of well-veined porphyry similar to that encountered in TS-DH-02 and the upper parts of TS-DH-04 and returned an intercept of 253.1m @ 1.01 g/t Au, 0.87 g/t Ag and 0.07% Cu from 2.9m. This includes five intervals of at least 10 meters returning over 0.9 g/t Au, with the most significant being 64.0m @ 1.67 g/t Au, 0.91 g/t Ag and 0.11% Cu from 144m.

 

The Glossary of Terms is included as Appendix D in the Attachment Table 1 in the full Announcement on the Company website.

Table 2 Miraflores Resources and Reserves Statement

Miraflores Project Resources and Reserves      

 

The Miraflores Project Mineral Resource estimate has been estimated by Metal Mining Consultants in accordance with the JORC Code (2012 Edition) and first publicly reported on 14 March 2017.  The Miraflores Project Ore Reserve estimate has been estimated by Ausenco in accordance with the JORC Code (2012 Edition) and first publicly reported on 27 October 2017.  No material changes have occurred after the reporting of these resource estimates since their first reporting.

 

              Miraflores Mineral Resource Estimate, as at 14 March 2017

Measured

2,958

2.98

2.49

283

237

Indicated

6,311

2.74

2.90

557

588

Measured & Indicated

9,269

2.82

2.77

840

826

Inferred

    487

2.36

3.64

37

57

Note:

i)        Reported at a 1.2g/t gold % Cu cut-off.

ii)       Mineral Resource estimated by Metal Mining Consultants Inc.

iii)      First publicly released on 14 March 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Mineral Resource estimation.

iv)      These Mineral Resources are inclusive of the Mineral Reserves listed below.

v)       Rounding may result in minor discrepancies.

 

Miraflores Mineral Reserve Estimate, as at 27 November 2017 (100% basis)

Proved

1.70

2.75

2.20

150

120

Probable

2.62

3.64

3.13

307

264

Total

4.32

3.29

2.77

457

385

Note:

vi)      Rounding of numbers may result in minor computational errors, which are not deemed to be significant.

vii)      These Ore Reserves are included in the Mineral Resources listed in the Table above.

viii)     First publicly released on 27 November 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Ore Reserve estimation.

ix)      Source: Ausenco, 2017.

 

 

For further information, please contact:

METMINCO LIMITED

 

 

Kevin Wilson

 

+61 409 942 355

 

NOMINATED ADVISOR AND JOINT BROKER

 

 

RFC Ambrian

 

 

Australia

 

 

Andrew Thomson / Alena Broesder

 

              +61 2 9250 0000

United Kingdom

 

 

Charlie Cryer

 

              +44 20 3440 6800

 

JOINT BROKER

 

 

Stockdale Securities

 

 

United Kingdom

Corporate Finance - Robert Finlay / Ed Thomas

Sales - Zoe Alexander

 

              +44 20 7601 6100

 

PUBLIC RELATIONS

 

 

Camarco

United Kingdom

 

 

Gordon Poole / Nick Hennis

 

             +44 20 3757 4997

 

Market Abuse Regulation (MAR) Disclosure

Forward Looking Statement

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Metminco are forward-looking statements.  When used in this announcement, forward-looking statements can be identified by words such as ''anticipate", "believe", "could", "estimate", "expect", "future", "intend", "may", "opportunity", "plan", "potential", "project", "seek", "will" and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place.  Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company, its directors and management of Metminco that could cause Metminco's actual results to differ materially from the results expressed or anticipated in these statements.

The Company cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Metminco does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing.

COMPETENT PERSONS STATEMENT

The technical information contained in this presentation that relates to exploration results (excluding those pertaining to Mineral Resources and Reserves) is based on information compiled by Mr Gavin Daneel, who is a Member of the Australasian Institute of Mining and Metallurgy and who is an independent Consulting Geologist.  Mr Daneel 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' and to qualify as a Qualified Person for the purposes of the AIM Rules for Companies.  Mr Daneel consents to the inclusion in the release of the matters based on the information he has compiled in the form and context in which it appears.

The Company is not aware of any new information or data that materially affects the information included in this announcement.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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