Macarthur Minerals Limited (TSX-V: MMS) (ASX: MIO)
(the “Company” or “Macarthur”) has been awarded a grant valued at
$85,000 from the Western Australian Government to support drilling
of a diamond drill hole at its Moonshine North Nickel Prospect,
located within its Lake Giles Iron Project in Western Australia.
The grant is provided under the Exploration
Incentive Scheme (EIS) administered by the Department of Mines,
Industry Regulation and Safety (DMIRS). The program provides $5
million a year to encourage innovative drilling in greenfields and
under-explored areas of the State and offers up to 50 per cent
contribution to drilling costs.
Highlights
- The EIS grant of $85,000 was awarded to Macarthur for a diamond
drilling program targeting nickel mineralisation at Moonshine.
- Deep drilling is planned, targeting two prospective targets:
- A ~20,000 Siemens plate conductor (MC02) geophysical
anomaly.
- An anomalous nickel horizon found in a nearby drill hole
(LGDD_054) close to surface. This hole intersected 19 meters @ 1%
Ni (from 8 meters to 27 meters) including 1 meter @ 1.42% Ni (from
13m). This weathered surface expression could be a secondary
dispersion of a massive sulphide source at depth.
Moonshine Nickel Prospect
The Moonshine North Nickel Prospect lies within
the Lake Giles Iron Project located 150 kilometres northwest of
Kalgoorlie and 450 kilometres north east of Perth in Western
Australia.
The Project area covers part of the Yerilgee
Archean Greenstone belt within the Yilgarn craton. The geology
consists of volcanic sequences mainly comprising of high magnesium
basalts, komatiitic and ultramafic flows with numerous interflow
banded iron formations (BIFs). The ultramafic rocks at Lake Giles
are considered of Kambalda komatiite type. The extensive komatiite
sequences of thick olivine cumulate flow units and
felsic-intermediate volcanism indicates that the area fits a
regional geological criterion for hosting komatiite nickel sulphide
deposits such as those existing nickel mines within the Kalgoorlie
Terrane (Figure 1).
Moonshine Targets
Anomalous nickel val Moonshine North
Nickel Prospect Location Map.ues of up to 1.42% were found within
first 30 meters of historical diamond drill hole LGDD_054 from the
Moonshine North prospect (Table 1).
This is uniquely high in nickel concentration in
comparison to subsequent drill hole data. The elevated nickel
values are within the weathered zone and may be classified through
different theoretical explanations. One being that the mineralised
zone is related to a stratabound magmatic sulphide source
(secondary dispersion from a primary massive sulphide source), the
other a lateritic supergene deposit i.e. a secondary by-product of
chemical weathering producing a concentration of nickel within the
saprolite regolith zone. Diamond hole LGDD_005, drilled for
magnetite exploration in close proximity to the target was also
investigated, however was not analysed for nickel or PGEs (Figure
2, Table 2).
Figure 1. Moonshine North Nickel Prospect Location
Map:
Figure 1 is available
at https://www.globenewswire.com/NewsRoom/AttachmentNg/d43530ad-2071-491e-9863-7cb756dbe886
Logging of LGDD_054 and LGDD_005 confirms that
disseminated sulphides are abundant throughout the sequence
including some sulphide mineralization within quartz veins believed
to be a product of hydrothermal fluid convection. Metasedimentary
rocks are abundant in this section that have been subject to
significant alteration and may be associated with a volcanic
massive sulphide deposit.
In 2018, the Company completed a MLEM survey
successfully delineating two bedrock conductors, MC01 and MC02.
MC01 and MC02 are interpreted to be the same geological source
offset by faulting1 . There was a standout anomaly on Line 50600N
which had the highest amplitude Bz response and a conductance of
20,000 Siemens more than twice that used for modelling the same
conductor on adjacent lines. Interpretation of the data recommended
a target drill hole into MC02 and on or close to line 50600N.
Although the Moonshine North prospect has been previously drilled
for magnetite, no holes have adequately tested the conductor with
historical drilling typically limited to a depth of 250m.
Following the MLEM survey, Macarthur commenced a
two-hole Reverse Circulation (RC) drilling program in late 2018
targeting the identified conductor (Table 1). Both holes
intersected massive and semi-massive sulphides at end of hole,
however, were unsuccessful in effectively testing the conductor.
Assay results for the two drill holes and historical holes
did not identify any economic mineralisation, however trace
elements such as chromium and potassium indicate marginal zones of
potassic alteration that may be a distal expression of other
mineralization or an ore deposit at depth. Significant
sulphides intersected at E.O.H indicates the conductor was only
just intersected.2
Table 1. Significant nickel assay intervals from
diamond hole LGDD_054 drilled at Moonshine.
Hole ID |
m From |
m To |
Interval |
Ni % |
LGDD_054 |
10.5 |
22 |
11.5 |
1.03 |
Including |
14.0 |
15.0 |
1.0 |
1.42 |
Table 2. Drill hole locations
Hole ID |
Type |
EOH (m) |
Easting (mE)* |
Northing (mN)* |
Dip |
LGDD_054 |
DDH |
370 |
788,083 |
6,674,746 |
-90 |
LGDD_005 |
DDH |
175 |
788,118 |
6,674,791 |
-60 |
18MNRC001 |
RC |
198 |
788,035 |
6,674,937 |
-60 |
18MNRC002 |
RC |
197 |
787,947 |
6,675,113 |
-60 |
*GDA94, Zone 50
Planned Drill Hole
Figure 2. Map showing cross section of planned hole
CFDD_2 illustrating the two targets; anomalous nickel horizon
previously intersected by nearby hole LGDD_054 with up to 1.4% Ni
close to surface, and MC02 conductor extending at depth detected
from the 2018 MLEM survey:
Figure 2 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/70591e10-8a43-4cbd-aed0-ade51cec0fa1
A 460-meter depth diamond drill hole is planned
(CFDD_2) to target two separate prospective horizons. The anomalous
nickel horizon previously intersected by nearby historical drill
hole LGDD_054 close to surface and the MC02 conductor plate
identified in the 2018 MLEM survey at depth (Figure 2). This drill
hole will also provide a better understanding of the genesis and
lithogeochemistry of the komatiites at the Moonshine Nickel
Prospect and aid further targeting for the possible discovery of a
komatiitic nickel ore deposit.
Figure 3. Total magnetic intensity from the 2018 MLEM
survey with historical drill holes and planned drill hole
location:
Figure 3 is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/0343788e-c70c-4b41-bc87-10e3f9ac7fde
On behalf of the Board of Directors, Mr Cameron McCall,
Executive Chairman
For more information please contact:
Joe
Phillips
CEO &
Director
M +61 (0)448 899
247
jphillips@macarthurminerals.com
Qualified Person
Mr Andrew Hawker, BSc. Geol, MAusIMM and MAIG, a
member of the Australian Institute of Geoscientists is a full-time
employee of Hawker Geological Services Pty Ltd and a Qualified
Person as defined in National Instrument 43-101. Mr Hawker has
reviewed and approved the technical information contained in this
news release.
Company profile
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 mineral resources include the Ularring hematite
resource (approved for development) comprising Indicated resources
of 54.5 million tonnes at 47.2% Fe and Inferred resources of 26
million tonnes at 45.4% Fe; and the Moonshine magnetite resource of
710 million tonnes (Inferred). Macarthur has prominent (~1,281
square kilometer tenement area) gold, lithium and copper
exploration interests in Pilbara region of Western Australia. In
addition, Macarthur has lithium brine Claims in the emerging
Railroad Valley region in Nevada, USA.
This news release is not for
distribution to United States services or for dissemination in the
United States
Caution Regarding Forward Looking
Statements
Certain 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. All statements herein, other than statements of
historical fact, that address activities, events or developments
that the Company believes, expects or anticipates will or may occur
in the future, including but limited to statements regarding: the
proposed strategy regarding core mining, road and rail inputs at
the Project; anticipated increases in annual production at the
Project; anticipated decreases in Project costs; the possible
reclassification of current inferred mineral resources on the
Project as indicated mineral resources in the future; expected
completion of the FS on the Project containing a new reserve
calculation and a new economic assessment; the granting of a
license for the Menzies rail siding; the status of the MRRT; and
plans to secure mining approvals under the Mining Act, are
forward-looking statements. 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 reliability of information
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 but are not limited to: unforeseen
technology changes that results in a reduction in iron or magnetite
demand or substitution by other metals or materials; the discovery
of new large low cost deposits of iron magnetite; the general level
of global economic activity; future changes in strategy regarding
core mining, road and rail inputs with respect to the Project;
final Project costs varying from those determined from the EOI
program; failure to successfully negotiate a BOO arrangement for
the Project; failure to complete the FS; failure of the FS to
reflect currently anticipated increases annual production and
decreases in expected costs at the Project; the results of infill
drilling being insufficient to reclassify current inferred mineral
resources on the Project as indicated mineral resources; failure to
receive a license for the Menzies rail siding; failure to repeal
the MRRT; and failure to obtain mining approvals under the Mining
Act. 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 Press Release filed August 28, 2018, titled “Macarthur
Minerals Identifies Multiple Priority Metal Sulphide Targets at
Lake Giles”
2 Press Release filed January 15, 2019, titled “Macarthur
Minerals Update on Nickel Exploration at Its Lake Giles Project in
Western Australia”
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