Macarthur Minerals Limited (TSX-V:
MMS) (ASX:
MIO) (the “Company” or “Macarthur”)
updates on the potential for cobalt and nickel mineralisation at
its Lake Giles Iron Ore Project in Western Australia, following
recent rock chip sampling that coincided with the Company’s
magnetite infill drilling.
In 2018, a rock chip sampling program across the
Snark prospect discovered samples containing the cobalt mineral
asbolite with assays returning up to 2.6% cobalt and 2.0%
nickel1. In May 2018, a Moving Loop Electromagnetic (MLEM)
geophysical survey was undertaken across the area that identified
two compelling conductors coinciding with surface geochemical
anomalies2. In October 2019, the Company undertook further rock
chip sampling confirming anomalous Nickel, Cobalt and Chromium
grades that warrant further exploration.
Macarthur is currently focusing on its Lake
Giles Iron Ore Project and is seeking a venture partner to further
advance exploration of its nickel projects.
Cameron McCall, President and Executive
Chairman of Macarthur Minerals commented:
“On the back of the Company’s initial
exploration for nickel and base metals, the Company has undertaken
a comprehensive review of its previous drilling and soil sample
assays and targeted several areas for on-ground exploration. Recent
exploration was successful in extending the anomalous nickel and
cobalt rock samples along the extent of the bedrock conductor
identified in mid-2018. The Company is now in the process of
seeking a venture partner interested in furthering this opportunity
at Lake Giles.”
Lake Giles Nickel and Cobalt Potential
The Company has successfully identified two
prospective areas for nickel mineralisation at its Lake Giles
Project, Snark and Moonshine North. The Project lies within
the Yerilgee Archean Greenstone belt with geology consisting of
volcanic sequences mainly comprising of high-Mg basalts, komatiitic
and ultramafic flows with numerous interflow banded iron formations
(BIFs). The ultramafic rocks at Lake Giles are considered a
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 the Mt Keith,
Maggie Hays and Nova nickel mines within the Kalgoorlie Terrane
(Figure 1).
Snark Nickel and Cobalt
Targets
Exploration by Amax Exploration (“Amax”) in the
1970’s identified a potential nickel sulphide target in the Snark
area. Rock samples collected from a gossan on the edge of a strong
induced polarisation (“IP”) anomaly returned assays to a maximum of
1.04% nickel.
Subsequent exploration by Kalgoorlie Prospector,
Mel Dalla-Costa, identified material suspected to be asbolite (a
cobalt and nickel mineral) at the base of a 1.5m deep costean
previously excavated by Amax.
Mapping completed by Keith Fox in 2002 for
Internickel Australia Pty Ltd, identified two targets the subject
of Macarthur’s recent focus (Figure 2). Target A is based on
aeromagnetic data showing a possible presence of lava channels.
Macarthur collected several rock samples near this target focussing
on the shallow costean excavated by Amax. Assay results returned up
to 2.01% nickel and 2.61% cobalt (Table 1).
Target B defines a geophysical anomaly depicted
from a historical aeromagnetic survey and recent MLEM survey
described in further detail, below.
Snark Surface Geochemical and Drilling
Anomalies
Macarthur has drilled several reverse
circulation (“RC”) holes in the vicinity of the targets described
above and intersected anomalous nickel in holes LGRC0010 and
LGRC0015 (Figure 2). Intercepts of interest include:
LGRC_0010 (288m): 128 meters @
0.17% Ni (from 108m to 236m) including 1m @ 0.29% Ni
LGRC_0015 (168m): 106 meters @
0.15% Ni (from 62m to 168m)
Rock chip samples have been collected across the
Snark area and confirm anomalous nickel and cobalt across several
areas. One area of interest includes float material containing the
mineral asbolite returning assays up to 2.61% cobalt and 2.01%
nickel (Table 1).
Table 1. Selected assays from the 2018 and 2019 rock chip
sampling program.
Sample ID |
Co % |
Ni % |
Cu ppm |
Mn % |
SNRC001 |
1.68 |
1.11 |
240 |
24.58 |
SNRC002 |
2.61 |
2.01 |
230 |
23.95 |
SNRC003 |
1.92 |
1.33 |
270 |
22.00 |
SNRC004 |
1.57 |
1.12 |
250 |
14.47 |
SNRC005 |
0.74 |
0.55 |
90 |
6.72 |
SN10020 |
1.86 |
1.27 |
200 |
|
All samples were collected at 781,596mE, 6,698,934mN,
MGA94, Zone 50
Snark MLEM Conductor
The MLEM survey at Snark covered an area of 310
ha and comprised 14 lines extending 1.2km at 200m spacing. Data was
collected from 13 stations per line for a total of 182
stations.
The survey identified two bedrock conductors at
Snark, SC01 and SC02 (Figure 2). SC01 is interpreted on most of the
MLEM lines and is coincident with a magnetic high. On survey line
72150N, a good response was observed with well-defined twin peaks
and decay analysis showing good exponential shape at late time
which is characteristic of a bedrock conductor. SC01 is considered
a high priority for drill testing and a drill hole, SC01_DH has
been planned to intersect the conductor at 162m.
Conductor SC02 is only interpreted on the
northernmost lines and is not coincident with a magnetic anomaly
indicating a potential sedimentary source. The anomaly possesses
good characteristics however the strike extent and lack of
coincident magnetic anomaly are detractive qualities and indicative
of a possible stratigraphic/sedimentary source.
Snark is considered a high priority nickel
target to be tested by drilling. Interpretation and drill hole
planning was conducted by Newexco with a drill hole planned to
intersect the conductor at the point where it displays a high EM
response (Table 2).
An initial drilling program to a depth of 200 m
is warranted to further understand the nickel potential of this
conductor.
Table 2. Planned drill hole to intersect MLEM
conductor at Snark.
Hole ID |
Easting |
Northing |
Dip |
Azimuth |
Length |
Intersection |
SC01_DH |
782743 |
6698662 |
60 |
50 |
200 |
162 |
Next Steps for work on
tenements
The Company has identified two areas prospective
for sulphide hosted base metal deposits based on historical drill
results. Most historical drilling for the Company’s Lake Giles Iron
Projects has been relatively shallow (<60m) and regionally,
Kambalda style nickel mineralisation has only been found at depth.
However, in several deep diamond holes, zones of semi-massive
sulphide have been intersected. The interpretation of historical
aeromagnetic data suggests possible presence of lava channels and
Komatiite flows which are favourable for nickel-sulphide
deposits.
The Company is seeking a venture partner to
further the understanding of the nickel potential of the tenements
with a drilling program warranted on targets identified to
date.
Figure 1. Macarthur Lake Giles Project
Location and surrounding major Nickel Projects.
Figure 1 is available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/becd0e83-04ab-498e-9e3a-3db2bd22b1c9
Figure 2. Location of rock samples
containing elevated cobalt and nickel and Macarthur Minerals drill
holes containing intercepts of anomalous nickel.
Figure 2 is available
at:https://www.globenewswire.com/NewsRoom/AttachmentNg/fb5fedbd-4ed2-4cee-b6d7-cdb3d3e731c3
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 March 5, 2018, titled “2.6% Cobalt and
2.0% Nickel Discovered at Macarthur Minerals’ Lake Giles Iron Ore
Projects in WA”
2 Press Release filed August 28, 2018, titled “Macarthur
Minerals Identifies Multiple Priority Metal Sulphide Targets at
Lake Giles”
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