Macarthur Minerals Limited (TSX-V: MMS) (the
“Company” or “Macarthur”) is pleased to provide an update to
Shareholders outlining an active fourth quarter 2019 in the ongoing
development of the Company’s flagship, Lake Giles Iron
Project. The Company is pleased to also provide an update on
the very positive early exploration results across the iron ore,
gold, nickel and cobalt projects in Western Australia.
FOURTH QUARTER HIGHLIGHTS
- The Lake Giles Iron Project, Feasibility Study (FS), is well
underway with the infill drilling program completed in
December. Results from the first batch of samples from
Reverse Circulation (RC) and Diamond (DD) drilling were reported to
the market on December 10, 2019. Several drill holes
intersected a zone of high-grade magnetite mineralisation
identified previously at the Moonshine North deposit.
- Macarthur was admitted to the Official List of Australian
Securities Exchange (ASX) on December 4, 2019 and commenced
quotation of its securities on ASX on December 6,
2019.
- The Company successfully closed the Offer under its Replacement
Prospectus on 28 November 2019 with subscriptions accepted for
20,032,952 shares at a price of A$0.25 per share for a total
consideration of A$5,008,238. Funds from the ASX IPO will be
primarily used to advance the Company’s flagship Lake Giles Iron
Project.
- Macarthur entered into a binding agreement with Arrow Minerals
Limited (Arrow) to acquire the rights to a substantial package of
land covering approximately 4950 ha adjacent to the Moonshine
Magnetite deposit. The tenure will be used for constructing
supporting infrastructure including the, processing plant, camp,
airstrip, waste rocks dumps and a tailings storage facility. The
deal with Arrow also paves the way forward to obtain access to
tenure to construct a private haul road from the project through to
the open access Perth to Kalgoorlie railway owned by Arc
Infrastructure.
- A drilling program was completed at the Hillside project in the
Pilbara region of Western Australia to test potential supergene and
hypogene mineralisation above and below the water table along the
majority of a 14-kilometre Gossan line where previous rock chip
sampling identified anomalous copper (Figure 1). This program also
tested outcropping quartz vein mineralisation identified through
prospecting activities.
Mr Cameron McCall, Executive Chairman of
Macarthur Minerals commented:
“The strong iron ore price continues to trade in
a spot range (for the last quarter) of US$80-$93/tonne for 62% Fe
ore and this is creating momentum in the global iron ore industry.
Historically, iron ore prices tend to retract in the lead up
to the Chinese New Year period when mills generally reduce
production, but this does not appear to be the case this year.
The Company’s focus remains on delivering a
high-quality, low-impurity magnetite fines product (+65% Fe) which
will target Asian steel mills that are focused on producing quality
steel products, enhanced furnace efficiencies, reduced consumption
of coking coal and improved environment emissions standards.
In reflecting on the 2019 calendar year, it is
pleasing to note the Company achieved all of its targeted goals for
the year:
- Advancement of the Lake Giles Iron Project, which has been
achieved through:
- Entry into a Binding Life-Of-Mine Off-take Agreement with
Glencore International AG
- Entry into a Rail Partnering Agreement with Aurizon
- Completion of an institutional Convertible Note financing
- Completion of a Preliminary Economic Assessment for the
Company’s hematite and magnetite projects
- Completion of a Reverse Circulation and Diamond in-fill
drilling program for the purpose of converting existing inferred
resources, to a higher classification
- Acquisition of an area of land adjacent to the Moonshine
Magnetite deposits to host mining and processing
infrastructure.
- A successful partnering with Fe Limited under a joint venture
which delivered an active geological program for the Company’s
Pilbara Gold, Lithium and Copper assets. This included a
drilling campaign on the Hillside Prospects conducted at the end of
the fourth quarter.
- Completion of a successful listing of Macarthur on the
Australian Securities Exchange.
2019 was a very active year for the Company with
2020 set to be equally active with the proposed completion of the
following major milestones:
- Key route-to-market contracts
- Negotiations with third parties for the commercialisation of
the hematite resource at Lake Giles
- Appointment of an engineering group to undertake the
metallurgical test-work and design of the magnetite processing
plant
- Appointment of a global corporate services group to commence
the financing strategy to support the development of a magnetite
mining and processing facility;
- A Feasibility Study for the Lake Giles Iron Project
- Progression towards environmental and other approval processes
for the magnetite project;
- Further appointments to Company’s technical and commercial
management team
- Attracting a strategic partner with an appetite for a
generational magnetite iron operation”
IRON ASSETS
Moonshine Magnetite Infill Drilling
Program
The majority of the Moonshine and Moonshine
North deposits are defined by drill hole spacing of 200m X 200m and
classified as an Inferred Mineral Resource of approximately 710 mt
at 30.2% Fe1.
The infill drilling program completed during the
fourth quarter was designed at closer drill hole spacing to upgrade
the resource classification for some of the Moonshine and Moonshine
North deposits. The planned program included 21 RC drill holes and
9 diamond drill holes. The program concluded with a total of 3,674
meters of RC drilling and 2,673 meters of diamond drilling
completed.
The drilling program was designed with the goal
of upgrading the resource classification to include Indicated and
Measured Mineral Resources. The updated mineral resource, when
completed, will underpin the Feasibility Study to be completed for
the Lake Giles Iron Project.
Moonshine North Magnetite
Results
Reverse Circulation and Diamond drilling at the
Moonshine North deposit successfully intersected the previously
identified high grade magnetite mineralisation. Assay results
for intervals of high-grade magnetite obtained to date are provided
in the table below. (NOTE these are drill intersections and
not true widths).
Hole ID |
m From |
m To |
Interval |
Fe% |
SiO2% |
P% |
S% |
Al2O3% |
LOI |
LGRC_2159 |
201 |
287 |
86 |
33.85 |
30.72 |
0.06 |
2.99 |
2.75 |
6.09 |
INC |
227 |
260 |
33 |
41.58 |
21.71 |
0.08 |
1.82 |
1.86 |
5.2 |
LGRC_2160 |
86 |
180 |
94 |
40.51 |
20.90 |
0.07 |
2.07 |
2.45 |
7.36 |
INC |
122 |
162 |
40 |
49.27 |
8.70 |
0.08 |
0.79 |
0.36 |
6.22 |
LGRC_2161 |
139 |
194 |
55 |
38.39 |
33.15 |
0.06 |
1.55 |
2.09 |
2.42 |
INC |
156 |
194 |
38 |
41.73 |
33.31 |
0.07 |
0.70 |
0.37 |
0.56 |
LGRC_2164 |
25 |
107 |
82 |
38.98 |
36.48 |
0.07 |
0.14 |
2.63 |
3.28 |
INC |
77 |
92 |
15 |
53.28 |
20.46 |
0.09 |
0.03 |
0.05 |
2.47 |
LGRC_2165 |
29 |
110 |
81 |
37.44 |
36.15 |
0.05 |
0.7 |
1.57 |
4.22 |
INC |
48 |
77 |
29 |
47.78 |
27.11 |
0.06 |
1.2 |
0.48 |
2.35 |
LGRC_2166 |
95 |
152 |
57 |
40.23 |
28.87 |
0.07 |
3.81 |
2.96 |
4.66 |
INC |
129 |
147 |
18 |
60.64 |
7.05 |
0.11 |
0.67 |
0.49 |
-0.26 |
Analytical results are pending for a further
four holes also drilled at Moonshine North, which include visually
logged intervals with a high percentage of magnetite content.
Preliminary metallurgical test work on a sample
of similar iron grade obtained from hole LGRC_203 drilled at
Moonshine North previously showed great potential to obtain a
high-grade magnetite concentrate1. Single and two-staged Low
Intensity Magnetic Separation (LIMS) obtained concentrate grades
ranging from 67.3% to 68.4% Fe and 4.2% to 5.0% SiO2 with high mass
recoveries of 57.8% to 60.3%. Material of higher head grade is
likely to result in higher mass recovery in comparison to the
conservative design criteria of 38% used in the Preliminary
Economic Assessment, 20191.
NON-IRON ASSETS
In 2019 Macarthur’s primary focus was on its
Western Australian Iron Ore assets. To support this strategy,
the Company ventured out the gold and lithium tenements in the
Pilbara region to ASX listed Australian explorer, Fe Limited
(“FEL”). FEL has the ability to earn up to 75% of these
Projects through exploration and staged cash payments to Macarthur.
During the quarter FEL conducted exploration on these areas
and completed a drilling program of copper and gold targets at the
Hillside Project.
Hillside tenements
As previously announced by the Company on August
23, 2019, rock chip samples collected by FEL’s geological team from
the Hillside Project returned strongly anomalous grades for base
metals and gold from several locations. In early September
FEL conducted follow-up reconnaissance, concentrating on the
Hillside Project (E45/4824 and E45/4685). Exploration involved
mapping and sampling of the partially outcropping gossan line and
outcropping quartz reefs known to host gold mineralisation (from
prospector reports).
The gossan line was traced over a 14km strike
length with remnant outcrop identified at regular intervals along
strike (Figure 1). A total of 36 rock chip samples were
collected including 15 from outcropping gossan with several samples
containing visible copper minerals such as malachite. Remaining
samples were collected from quartz outcrops, many of which returned
strongly anomalous gold grades.
The assay results are highly encouraging with
eight samples returning copper values over 1% with a peak of 18.8%
Cu and often accompanied with elevated gold, silver and zinc values
(+/- cobalt). Significant results include:
- HS0014: 1.2ppm Au, 18.8% Cu, 77ppm Ag, 0.17%
Zn, 0.057% Co
- HS0021: 0.77ppm Au, 3.7% Cu, 187ppm Ag, 0.5%
Zn, 0.06% Co
- HS0023: 1.06ppm Au, 13.9% Cu, 79ppm Ag, 0.44%
Zn,
- HS0024: 0.31ppm Au, 4.5% Cu, 76ppm Ag, 0.35%
Zn, 0.05% Co
- HS0027: 0.28ppm Au, 1.3%Cu, 14ppm Ag, 0.17%
Zn, 0.04% Co
- HS0028: 0.45ppm Au, 3.1% Cu, 50ppm Ag, 0.49%
Zn
- HS0029: 0.34ppm Au, 3.0% Cu, 22ppm Ag
- HS0031: 0.83ppm Au, 7.2% Cu, 78ppm Ag, 0.93%
Zn, 0.095% Co
Drilling was completed in December 2019 that
tested potential supergene and hypogene mineralisation above and
below the water table along the majority of the 14-kilometre Gossan
line (Figure 1). This program will also test outcropping quartz
vein mineralisation identified through prospecting
activities. Assays are expected early 2020.
Exploration at the Hillside Project also
discovered high grade manganese mineralisation in sub parallel
outcrops to the gossan line sampled above. Rock chips samples
returned a maximum of 59.4% MnO (>46% Mn).
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2dfad1d8-a7f3-4b3b-a891-a96dcefb39d5
Fe Limited (ASX: FEL) is a listed mineral
exploration Company that holds or has rights or interests in
various projects and tenements prospective for battery metals,
copper, iron ore, gold and base metals located in Australia. The
Company is focused on the exploration of battery metal projects. In
March 2019, FEL entered into an agreement to acquire the
Pippingarra Lithium Project and the Marble Bar Lithium Project
(Project) from Mercury Resources Group Pty Ltd. These areas
complement the tenement portfolio of Macarthur Minerals,
establishing a 1800 square kilometre exploration footprint in the
important Lithium and Gold region of Western Australia.
PILBARA HARD ROCK LITHIUM
Macarthur’s Pilbara lithium portfolio covers an
area of ~1,281 square kilometers, have regulatory exploration
licence approval and cover similar geological settings to that of
“world class” Pilbara lithium deposits and producing spodumene
mines. These areas are included in the earn-in Joint Venture
program that is targeting battery metal deposits. These areas have
been added to during 2019 with the lithium potential tenements held
by Fe Limited.
NEVADA, USA REYNOLDS SPRINGS
PROJECT
Macarthur holds 210 unpatented mining claims at
its Reynolds Springs Lithium Brine Project in the Railroad Valley,
Nevada, USA. Analysis of geochemical soil sampling found up
to 405ppm Li.
Macarthur conducted further review of several
historic well logs drilled on the claims and identified numerous
conductive, faulted zones that indicate the presence of a brine
aquifer.
NEXT STEPS
Macarthur will actively advance, with our key
partners, its iron ore assets in Western Australia. Infill
drilling of the Moonshine Magnetite deposit has been completed with
samples submitted to the laboratory. On receipt of assay results,
the Company will update the geological model of the Moonshine
Magnetite deposits in conjunction with completing a Feasibility
Study of the Lake Giles Iron Project. Further, the Company
will work closely with Fe Limited to advance exploration of its
high-quality lithium, gold and base metal tenements in the Pilbara
region.
ABOUT MACARTHUR MINERALS LIMITED (TSX-V:
MMS, OTCQB: MMSDF)
Macarthur is an iron ore development, gold and
lithium exploration company that is focused on bringing to
production its Western Australia iron ore projects. The Lake Giles
Iron Project resources2 include the Ularring hematite resource
(approved for development) with a resource consisting of 54.5
million tonnes at 47.2% Fe (Indicated Category) and 26 million
tonnes at 45.4% Fe (Inferred Category) and the Moonshine magnetite
resource of 710 million tonnes at 30.6% Fe (Inferred Category).
Macarthur has prominent (~1,281 square kilometer tenement area)
gold, lithium and nickel exploration interests in Pilbara region of
Western Australia. In addition, Macarthur has lithium brine Claims
in the emerging Railroad Valley region in Nevada, USA.
On behalf of the Board of
Directors,MACARTHUR MINERALS LIMITED
“Cameron McCall”Cameron McCall, Executive
Chairman
Company ContactJoe Phillips,
CEO and DirectorEmail:
jphillips@macarthurminerals.com
Telephone: +61 448899247
Website:
www.macarthurminerals.com
THIS NEWS RELEASE IS NOT FOR
DISTRIBUTION TO UNITED STATES SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Caution Regarding Forward Looking
StatementsCertain of the statements made and information
contained in this press release may constitute forward-looking
information and forward-looking statements (collectively,
“forward-looking statements”) within the meaning of applicable
securities laws. The forward-looking statements in this press
release reflect the current expectations, assumptions or beliefs of
the Company based upon information currently available to the
Company. With respect to forward-looking statements contained in
this press release, assumptions have been made regarding, among
other things, the timely receipt of required approvals, the
reliability of information, including historical mineral resource
or mineral reserve estimates, prepared and/or published by third
parties that are referenced in this press release or was otherwise
relied upon by the Company in preparing this press release.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and no
assurance can be given that these expectations will prove to be
correct as actual results or developments may differ materially
from those projected in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include fluctuations in exchange rates
and certain commodity prices, uncertainties related to mineral
title in the project, unforeseen technology changes that results in
a reduction in iron ore demand or substitution by other metals or
materials, the discovery of new large low cost deposits of iron
ore, uncertainty in successfully returning the project into full
operation, and the general level of global economic activity.
Readers are cautioned not to place undue reliance on
forward-looking statements due to the inherent uncertainty thereof.
Such statements relate to future events and expectations and, as
such, involve known and unknown risks and uncertainties. The
forward-looking statements contained in this press release are made
as of the date of this press release and except as may otherwise be
required pursuant to applicable laws, the Company does not assume
any obligation to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
1 NI43-101 Technical Report filed June 17, 2019, titled
“Macarthur Minerals Limited, Preliminary Economic Assessment Lake
Giles Iron Project, Western Australia”, NI43-101 Technical Report –
Preliminary Assessment
2 INDEPENDENT TECHNICAL ASSESSMENT REPORT, Macarthur Minerals
Projects in Western Australia and Nevada, CSA Global Report Nº
R358.2019’9 October 2019, www.csaglobal.com
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