TIDMPDZ
RNS Number : 1741O
Prairie Mining Limited
06 October 2021
PRAIRIE MINING LIMITED
NEWS RELEASE | 6 OCTOBER 2021
PRAIRIE ACQUIRES INTEREST IN HIGHLY PROSPECTIVE GREENLAND COPPER
PROVINCE
Prairie Mining Limited (Prairie or Company) is pleased to advise
that the Company has entered into an Earn-in Agreement (EIA) with
Greenfields Exploration Ltd (GEX) to acquire an interest of up to
80% in the Arctic Rift Copper project (ARC or Project) in
Greenland.
Highlights:
-- Significant, large-scale project ( 5,774km(2) license area)
with historical exploration results indicative of an extensive
mineral system with potential to host world-class copper
deposits
-- The ARC mineral system is known to be prospective for basalt,
fault, and sedimentary rock-hosted copper mineralisation however,
it remains virtually unexplored , giving the Company a first mover
advantage in a major new metallogenic province
-- Historical field programs identified widespread copper-silver occurrences at surface:
o geochemical sampling found that 80% of stream sediment samples
contain native copper
o native copper is found in situ or as float, with individual
clasts of native copper weighing up to 1 kg+
o high grade copper sulphides, grading up to 2.15% Cu and
35.5g/t Ag over 4.5m true width, are known from trench sampling of
fault zones within sediments
o assay results from individual samples are much higher grade,
including:
-- 53.8% Cu and 2,480g/t Ag
-- 20.7% Cu and 488g/t Ag
-- 12.5% Cu and 385g/t Ag
-- 9.0% Cu and 112 g/t Ag
-- 7.9% Cu and 53 g/t Ag
-- 5.3% Cu and 112 g/t Ag
-- 5.0% Cu and 304 g/t Ag
-- 4.0% Cu and 82 g/t Ag High priority target covering 640 km(2)
already identified with near-term discovery potential ( Minik
Anomaly ) which has the highest copper grades that are proximal to
a coincident gravity, conductivity and magnetic anomaly in the
north-eastern portion of ARC
-- Greenland is a mining friendly jurisdiction with strong
Government support for expanding its mining industry, simple laws
and regulations, and a competitive fiscal regime
-- Greenland is increasingly recognised as one of the last great
mineral resource frontiers having recently attracted interest from
Rio Tinto, Anglo American, DeBeers, Glencore, Trafigura, and IGO,
as well as KoBold Metals who have joint ventured with Bluejay
Mining to explore in Greenland for critical materials used in EVs.
KoBold is backed by Microsoft co-founder Bill Gates, Bloomberg
founder Michael Bloomberg, Amazon founder Jeff Bezos, and Ray
Dalio, founder of the world's largest hedge fund Bridgewater
Associates
-- Strong pipeline of news flow is expected as Prairie mobilises
the award-winning GEX exploration team who have extensive operating
experience, including managing the Frontier Project in JV with IGO,
and well-established relations with government and other key
stakeholders in Greenland
-- The initial exploration program creates the potential for
multiple discoveries with the objective of delineating relatively
highly certain, drill-ready targets and will focus on
high-resolution satellite mapping, a range of geophysical surveys,
widespread geochemical sampling/analysis and hand-held core
drilling
The Company will earn an 80% interest in the Project by:
a) spending A$3,500,000 on the Project within three years to earn a 51% interest;
b) spending a further A$3,500,000 on the Project within four
years to earn a further 19% interest (taking the total interest to
70%); and
c) spending a further A$3,000,000 on the Project within five
years to earn a further 10% interest (taking the total interest to
80%).
Thereafter, the parties must contribute on a pro rata basis or
be diluted. Prairie must also issue GEX 3 million shares at the
commencement of the JV (escrowed for 12 months). Further terms of
the EIA are outlined below in the Commercial Terms section.
Prairie's CEO Mr Ben Stoikovich commented: "The ARC project
marks Prairie's first move into the energy metals space. Copper is
integral to the energy transition, with copper consumption over the
next 25 years forecast to be more than has ever been mined. The
transaction gives Prairie a first-mover advantage in what we think
is a prolific but virtually unexplored major new metallogenic
province, in a pro-mining jurisdiction with a highly experienced
Greenland exploration team utilising cutting-edge exploration to
maximise the potential for discovery of a world class copper
deposit from the outset".
Entitlements Issue
To provide funding for new and current activities the Company
will undertake a one (1) for ten (10) pro rata non-renounceable
entitlements issue at $0.25 (GBP0.16/EUR0.15/PLN0.72) per share (
Entitlements Issue ) to raise up to $5.8 million before costs.
Eligible shareholders will be entitled to acquire one (1) new
ordinary share (New Share) for ten (10) ordinary shares held at the
record date (5 November 2021). New Shares under the Entitlements
Issue will be offered at $0.25 (GBP0.16/EUR0.15/PLN0.72) per
share.
Dispute with the Polish Government
The Company will continue to defend its interests in Poland
through International arbitration claims ( Claim ) against the
Republic of Poland under both the Energy Charter Treaty ( ECT ) and
the Australia-Poland Bilateral Investment Treaty ( BIT ) (together
the Treaties ).
Prairie's Claim alleges that the Republic of Poland has breached
its obligations under the applicable Treaties through its actions
to block the development of the Company's Jan Karski and Debiensko
mines in Poland which has effectively deprived Prairie of the
entire value of its previous investments in Poland.
For further information, please contact:
Prairie Mining Limited Tel: +44 207 478 3900
Ben Stoikovich, Chief Executive Email: info@pdz.com.au
Officer
Sapan Ghai, Head of Corporate
Development
Kazimierz Chojna, Commercial
Officer
To view this announcement in full, including all figures and
diagrams, please visit the Company's website at www.pdz.com.au
GREENLAND'S RAPIDLY EXPANDING RESOURCES SECTOR
Greenland is increasingly recognised as one of the last great
mineral resource frontiers, and has recently attracted interest
from mining majors.
Private mineral exploration company KoBold Metals recently
signed an agreement with London-listed Bluejay Mining (JAY.L) to
explore in Greenland for critical materials used in electric
vehicles. KoBold's principal investors include Breakthrough Energy
Ventures, a climate and technology fund backed by Microsoft
(MSFT.O) co-founder Bill Gates, Bloomberg founder Michael
Bloomberg, Amazon (AMZN.O) founder Jeff Bezos, and Ray Dalio,
founder of the world's largest hedge fund Bridgewater Associates.
Other KoBold investors include Silicon Valley venture capital fund
Andreessen Horowitz and Norwegian state-controlled energy company
Equinor. KoBold have committed US$15 million in exploration funding
to earn a 51% interest in the Disko-Nuussuaq Ni/ PGE project on
Greenland's west coast.
ARC PROJECT SUMMARY
Prairie and GEX consider the observed geological setting and
features of ARC to be indicative of an extensive mineral system
capable of hosting world-class copper deposits.
The large scale of the mineral system, widespread copper
anomalism, combined with dual mineralising events are analogous to
the largest copper systems known worldwide. Accordingly, Prairie
considers that ARC has the potential to be a globally significant
metallogenic province.
Very high-grade copper mineralisation identified at ARC is
associated with the Minik Anomaly, a coincident
magnetic-electromagnetic-gravity feature in an area where there is
a change in oxidation state and widespread native copper in stream
sediments. These features are presented as the footprint of a
large-scale hydrothermal system. The frequency and size of the
native copper clasts, and the high grade of the copper-silver
sulphides that are exposed at the surface, bode well for the
probability of discovery.
There are multiple additional identified targets and favourable
geological settings to be tested within the ARC project area,
including:
-- the highly anomalous basalt is a high priority target that
has not previously been the focus of commercial exploration. These
basalts are the source of the native copper.
-- the sulphide mineralised faults passing through these basalts
into the overlying sediments have been subject to first pass
exploration and shown to be rich in copper and silver. The
high-grade sulphides in these faults will be the focus of further
exploration.
-- the permeable coarse-grained sandstone within the Jyske Ås Fm
has high grade copper that is effectively unexplored. This
stratiform mineralisation adds the potential for significant
lateral extension of the known mineralisation exposed in the faults
of the Discovery Zone.
As such, the extensive ARC mineral system is known to be
prospective for basalt, fault, and sedimentary rock-hosted
('sediment-hosted') mineralisation that despite the attractive
grades, is virtually unexplored.
ARC PROJECT OVERVIEW
The ARC project consists of a single Special Exploration
Licence, covering an area of 5,774km(2) , in northern
Greenland.
ARC is located within an inner-fjord system and covers most of
J.C. Christensen Land, a promontory that is flanked to the north
and northwest by Independence Fjord, and to the southeast by Hagen
Fjord. The expansive cliff faces of the fjords provide a unique
insight into the structural geology of ARC and aid in geological
interpretation.
The project area is uninhabited, with the nearest permanently
inhabited site being the Station Nord military facility, located
approximately 200km to the east.
The region is an Arctic desert, vegetation and wildlife are
minimal and there are no designated sensitive areas within the
Project. Flat, low elevations are typical of northeast J.C.
Christensen Land and the rest of the area consists of high plateaus
with elevations around 800m above sea level, with incised 'U'
shaped valleys.
The big fjords that surround the Project reliably provide
deep-water access throughout the ARC licence. An airstrip which has
been used to land heavy-lift aeroplanes is adjacent to the Project,
and sites suitable for smaller airstrips are located within it.
As a jurisdiction for exploration and mining, Greenland has many
favourable attributes, such as being politically stable, pro
mining, one of the lowest rates of corruption in the world, simple
laws and regulations, low royalties, favourable tax treatment for
mineral projects, and good access to markets.
Project Geology and Exploration Potential
The ARC mineral system is known to be prospective for basalt,
fault, and sediment -hosted copper mineralisation however, it
remains virtually unexplored. This provides the Company and GEX
with essentially a first mover opportunity in a metallogenic
province with the potential to host world class copper
deposits.
ARC is located near an ancient triple junction that is
associated with an ascending mantle plume in Mesoproterozoic times.
This mantle plume emplaced a large amount of basalt lavas over a
short period of time.
ARC contains a sequence of Mesoproterozoic-aged sediments
sandstones belonging to the Independence Fjord Group that have been
intruded by highly altered dolerites and overlain by 1.2km of
Mesoproterozoic-aged flood basalts ('Zig-Zag Fm' basalts). In turn,
the basalts are overlain by 1.1km of Neoproterozoic-aged clastic
and carbonate sediments belonging to the Hagen Fjord Group. The
lower portion of the Hagen Fjord Group is dominated by sandstones
and siltstones, and the upper part by limestone and dolomites.
The metamorphic grade of the Zig-Zag Fm basalts is of the
zeolite facies, and the Hagen Fjord Group sediments show lower
grade metamorphism. Due to the location within a passive margin,
there is adequate preservation aside from mechanical erosion.
The strata dips sub-horizontally (1-3deg) to the northeast and
hosts fault orientations parallel to major regional structures
Folding is almost non-existent.
Copper mineralisation occurs in both the Zig-Zag Fm basalts and
Hagen Fjord Group sediments. The basalts are known to contain in
situ native copper, which is found extensively in the surrounding
drainage systems. Significantly, native copper specimens weighing
up to 1kg have been recovered during historical exploration
campaigns.
The age, setting and mineral composition makes the Zig-Zag Fm
copper analogous to the copper deposits of the Michigan Upper
(Keweenaw) Peninsula, and a primary source of copper for anomalies
reported in the overlying sediments. Fault breccias observed to
transect the basalts and overlying sediments are interpreted to
represent fluid pathways. These breccias, which are up to 25m wide,
also show copper mineralisation.
Copper and associated silver mineralisation occur in the source
rocks, faults, and in 'classic' deposition sites. The highest
copper grades are close to geophysical gravity, magnetic and
electromagnetic anomalies.
Previous Work within ARC and Northern Greenland
ARC, and Northern Greenland in general, have been subject to
scant exploration, with prospecting being restricted to
reconnaissance-scale commercial exploration and government/academic
work. No work has occurred within ARC for over a decade.
Mapping and Sampling
Initial geological expeditions took place as early as 1921, with
a handful of follow-up geological expeditions taking place from the
late 1940's to the late 1960's.
The first commercial investigation of the geology in northern
Greenland was conducted between 1969 and 1972 by the Greenarctic
Consortium (Greenarctic). The work involved a first pass evaluation
of a 40,000 km (2) area encompassing the region around Independence
Fjord. The 1969 field program was successful in identifying native
copper occurrences at two locations in the Mylius-Erichsen Land, to
the southeast of ARC. In 1970, an airborne photogeological survey
and interpretation was commissioned over the area. In 1972,
Greenarctic conducted its second field mapping program over a 5,000
km (2) exploration licence on Heilprin Land and southern Peary
Land, to the west of ARC, and identified occurrences of
sediment-hosted copper-silver sulphides.
Between 1978 and 1980, the Greenland Geological Survey (GGS)
conducted a campaign in the region. The program successfully
identified sediment-hosted copper sulphides and oxides. The
regional mapping program included stream sediment sampling for
geochemistry, microscopy and heavy mineral analysis. Between 1993
and 1995, the GGS conducted a 1:500,000 scale geological mapping
exercise, with mapping and stream sediment surveys identifying
sediment-hosted copper sulphides and additional native copper
bearing basalts.
Modern exploration activity was conducted between 2010 and 2011
by Avannaa Resources Limited (Avannaa). In its first year, Avannaa
focussed its work in a small area in the northern part of ARC,
known as Neergaard North. The work involved mapping and sampling
designed to follow up on sediment-hosted copper sulphides
identified by government workers in the 1990s. The program was
successful in identifying the three brecciated faults that comprise
the 'Discovery Zone'. In response to this success, trench sampling
was also performed.
In 2011, Avannaa greatly increased its exploration by conducting
a heli-supported reconnaissance program over a large area to test
the copper prospectivity of various stratigraphic positions, as
well as extending the length of the 'Discovery Zone'. The 2011
program extended the strike length of the Discovery Zone breccias
from 800m to over 2km before disappearing undercover, and
successfully identified copper anomalous stratigraphic horizons
over the entire licence area.
Geochemistry
There are 549 known geochemical samples from within J.C.
Christensen Land. The samples comprise a mix of Government and
private sector programs:
-- 310 rock chip, trench and grab samples from the 2010-2011
Avannaa exploration program. These samples cluster in northern
ARC;
-- 145 rock chip samples from 1978-1980. The samples are
heterogeneously distributed and comprise 1 litre of unsieved
sediment. Native copper occurs in 80% of samples from ARC; and
--
-- 94 stream sediment samples collected by the GGS from 1993-1994.
In government storage in Copenhagen, there are 405 samples of
which 311 are unique, and 40 have been subject to more recent
analysis. In addition, there were 227 stream sediment samples that
were analysed in the field using handheld X-ray fluorescence (XRF)
equipment by Avannaa in 2011. The XRF samples were left in the
field. No other analysis methods were used.
The historical field programs identified widespread
copper-silver occurrences at surface:
o native copper was found in situ or as float, with individual
clasts of native copper weighing up to 1 kg+
o high grade copper sulphides, grading up to 2.15% Cu and
35.5g/t Ag over 4.5m true width, are known from trench sampling of
fault zones within sediments
o assay results from individual samples are much higher grade,
including:
-- 53.8% Cu and 2,480g/t Ag
-- 20.7% Cu and 488g/t Ag
-- 12.5% Cu and 385g/t Ag
-- 9.0% Cu and 112 g/t Ag
-- 7.9% Cu and 53 g/t Ag
-- 5.3% Cu and 112 g/t Ag
-- 5.0% Cu and 304 g/t Ag
-- 4.0% Cu and 82 g/t Ag
Geophysics
There are five identified geophysical surveys within or covering
ARC. The most recent survey that focussed on ARC was conducted over
20 years ago. In 1971, the Greenarctic Consortium funded an
airborne magnetic survey over much of northern Greenland. The
first-pass, low-resolution survey flew with a grid spacing of 2.5km
by 15km and at an altitude of 1.85km.
In 1978, the Geodetic Institute (Copenhagen) conducted a
land-based gravity survey of North Greenland with an irregular
grid. A gravity map was produced with contours of 20mgal. A gravity
high was identified in the north of Hagen Fjord (within northern
ARC), which was attributed to the Zig-Zag Fm and Midsommersø
Intrusions.
Between 1993 and 1996, the Alfred Wegener Institute (AWI) for
Polar and Marine Research conducted a high-level aeromagnetic
survey of eastern and northeastern Greenland. The survey flew using
inline and crossline direction from 10km to 40km and the altitudes
up to 3,700m above sea level.
In 1998, the Greenland Government commissioned an airborne
electromagnetic-magnetic survey (AEM1998) which focussed on the
northern portion of J.C. Christensen Land. The survey had 400m line
spacing with 4,977 line kms flown. The total magnetic intensity was
highest in the middle of the survey area. The apparent
electromagnetic conductance indicates linear anomalies that are
consistent with the regional mapping of the lithology and faults in
the area.
In 2009, a collaborative effort between academics and geological
surveys with Arctic interests compiled new gravity and magnetic
anomaly maps under the Circum-Arctic Mapping Project (CAMP). The
project merged potential field data from the collaborating
institutes to create seamless gravity and magnetic maps of the
Arctic. The magnetic map has a grid resolution of 2km x 2km and the
gravity map has a resolution of 10km x 10km.
In 2011, satellite imagery was processed over J.C. Christensen
Land, Mylius-Erichsen Land, Heilprin Land, and Erlandsen Land.
ASTER multispectral data was used to identify lithologies data
which was processed to produce a digital elevation model (+/-10m
vertical within a 15m radius).
In 2021, the Government updated its data portal to include a new
gravity data set that was compiled by the Technical University of
Denmark (DTU). The modelled responses in the DTU honor the ground
gravity measurements shown in. The gravity high located in
northeastern JC Christensen Land is also coincident with the
magnetic high identified by AWI and in AEM1998.
Identified Prospects and Target Areas
Discovery Zone
The most advanced prospect within ARC is the copper-silver
bearing Discovery Zone, located at the northern end of Neergaard
Dal. The Discovery Zone was identified in 2010 as a follow up to a
geochemical anomaly identified by the GGS in 1994.
The Discovery Zone is comprised of at least three parallel
breccia faults trending northwest-southeast, with the furthest
faults being around 2km apart. The faults are traced for a minimum
of 2km along strike before they disappear underneath moraine. The
Discovery Zone is open in both directions.
The width of the fault breccias is variable, ranging from 1m to
25m thick. The host lithology is red sandstones of the lower Jyske
Ås Fm, and they are proximal to outcrops of Zig-Zag Fm. The
breccias have copper sulphide and copper oxide mineralisation. The
copper-bearing species include chalcocite, brochantite, bornite,
chalcopyrite, and malachite. The mineralisation is expressed in two
main forms, within which there are two sub-forms:
1. Breccia bound. Mineralisation occurs in thin quartz-dominated
veining within the fault breccia and contains disseminated copper
sulphides. Assays from this material grades up to 53.8% Cu and
2,480g/t Ag.
Within the breccia-bound mineralisation are intensely potassic,
unconsolidated materials known as 'Black Earth'. The multiple but
discontinuous 0.7m to 3m horizons have lengths between 2m to 50m.
The Black Earth material contains high grades of copper and silver,
with reported true widths of 4.5m grading 2.15% Cu and 35.5g/t Ag
(Chip Line #7, sampled interval 5.25m, estimated true width
4.5m).
2. Stratiform. Mineralisation occurs immediately adjacent to the
faults and comprises lenses and blebs of chalcocite and bornite
measuring from mm-scale to 15cm long.
Within the stratiform mineralisation is a poorly consolidated
sandstone that is identified as a potentially vast target horizon
within the Jyske Ås Fm. The outcrop shows pervasive interstitial
chalcocite, bornite and chalcopyrite.
Zig-Zag Formation
Native copper float frequently occurs near the Zig-Zag Fm in the
area around the Discovery Zone and Neergaard Valley. Outside of ARC
a 1.5m long chip sample returned a significant grade of 1.97% Cu,
and a grab sample returned 3.17% Cu from chalcocite filled
vesicles. The Company and GEX consider the widespread occurrence of
low-grade copper mineralisation, the frequent presence of sizeable
native copper, and the sampled grades within the licence to be very
significant.
Campanuladal Formation
The Campanuladal Fm was known to contain anomalous copper since
the late 1970s. Government work in the early 1990s managed to trace
chalcopyrite and galena for several kilometres within the central
part of the formation. Disseminated copper sulphides (often
chalcopyrite) are widespread, and one such location is close to the
Discovery Zone in the northeast corner of ARC.
Minik Anomaly
The empirical geophysical and geochemical evidence shows
multifaceted anomalism within ARC. The Minik Anomaly is defined by
multiple coincident, and proximal, geophysical
(magnetic-electromagnetic-gravity) and geochemical anomalies over a
640 km(2) area in the north-eastern portion of ARC where high grade
copper mineralisation has been identified. This large scale, high
priority target area will be a key focus of the first field
campaign.
Other Commodities
North Greenland contains multiple indications of mineralisation,
and whilst copper is the target commodity for the ARC, the region
to the north includes a large-scale zinc deposit, and there are
indications of nickel-platinum group elements within the ARC
licence. The known mineralisation occurs across a range of
stratigraphic positions and is believed to be the result of more
than one mineralising event.
The mafic intrusions of the Midsommersø Intrusions are
prospective for magmatic-hosted nickel-copper-platinum group
element ( Ni-Cu-PGE ) mineralisation. The Company and GEX identify
supportive evidence in both the intrusions and their extrusive
equivalents in the overlying Zig-Zag Fm.
The basal flows of the Zig-Zag Fm basalts show a marked
depletion in nickel. Such a depletion suggests that the nickel may
have been deposited into sulphides and conceptually, as nickel
sulphide deposits. There has been no effective commercial work on
testing the nickel sulphide potential of ARC.
Target Generation - Deposit Types
In terms of exploration targeting at ARC, the known
mineralisation is ascribed to two distinct deposit types:
-- Sediment-hosted stratiform copper - within this family of
deposit types, ARC is analogous to the super-giant Katangan Basin
('Copperbelt'), the Zechstein ('European Kupferschiefer') and the
White Pine-Presque Isle ('White Pine') deposit models. Such deposit
models account for a large proportion of the world's highest
quality mineral deposits due to their potential favourable size and
grade combinations.
-- Basaltic native copper - which is a comparatively poorly
understood deposit type. Such deposits occur around the world
however, documentation of the American and Canadian deposits is
most readily available (e.g., Keweenaw, Michigan; Kennecott,
Alaska; Sustut, British Columbia). Of the historical native copper
districts, the Keweenaw Peninsula dominates the literature and
production statistics are available. The Keweenaw Peninsula had a
pre-mining endowment of 8.9Mt of native copper, of which 6.5Mt was
mined for 100 years from the 1840's. Most of the commercial
production of native copper was from stratiform deposits, which
facilitated high production rates and early introduction of
mechanisation. Notably, mining from 'fissures' produced masses of
native copper weighing hundreds of tonnes.
The closest geological analogue to ARC based on present
understanding is the Keweenaw Peninsula which had a known
pre-mining copper endowment including both native and sulphidic
copper of over 16Mt and was a prolific mining district as noted
above. Whilst the Keweenaw Peninsula is notable for its native
copper, the sulphidic sediment-hosted mineralisation is also
significant. The endowment of the copper sulphide mineralisation
contained in two well-known deposits is around 4.5Mt Cu. The copper
sulphide deposits also contain substantial amounts of silver, with
the White Pine deposit having yielded 50Moz of silver, as part of
the 2.0Mt of copper that was mined with average grades of 1% Cu and
12g/t Ag. The White Pine mine was in production between 1953 and
1996. The other known deposit is the Copperwood copper sulphide
deposit which is subject to current economic evaluation.
In addition to copper mining, the Michigan mineral province also
contains a high-grade magmatic nickel-copper sulphide-bearing
deposit, Eagle Mine, discovered by Rio Tinto and now operated by
Lundin Mining. Commercial production commenced from Eagle Mine in
2014. The mine is expected to produce 163Kt of nickel, 134Kt of
copper and accessory platinum, palladium, and cobalt over its
estimated nine-year mine life.
Exploration Plan
The Company and GEX will take a systemic approach to exploring
ARC in the most cost-effective and sustainable manner. The
near-term forward work program includes:
-- Undertake a widespread geochemical sampling campaign i.e.,
stream sediment and rock chip sampling. Historical data is mainly
clustered, and the southern portion of ARC is mostly unsampled. The
intention is for rock samples to be collected with a handheld drill
(41mm diameter) to produce core that can be subject to
non-destructive analysis.
-- Perform passive seismic over the Minik Anomaly and 3D induced
polarisation ( IP ) surveys over the Discovery Zone. Seismic and IP
data will also provide more context to the gravity-magnetic
anomaly. Passive seismic tomography does not require explosives or
vibration equipment to collect data, and has a low environmental
impact.
-- Conduct high-resolution satellite mapping. Since the last
exploration activity, commercial products have become available at
a 30cm pixel resolution. These products include multispectral bands
at coarser resolutions that can aid in identifying different types
of alteration type and intensity, lithologies, and structures.
-- Re-analyse historical samples. The assay suite used in the
government-funded work is very restricted. The Company has located
the storage locations of 311 unique samples that are suited to
comprehensive, modern analysis methods. The higher precision and
additional element information, along with mineral species
identification, can provide new insights that can help refine the
exploration search space.
-- Reprocess airborne magnetic data.
-- Create a three-dimensional ( 3D ) model. The available
geological maps, reprocessed geophysics and satellite imagery can
be incorporated into a low-cost 3D model. The purpose of this model
is to provide an initial framework design that can be easily
validated by field inspection.
The intent is for the above work and resultant geological model
to provide refined targets to be tested by deeper diamond drilling
during a second field campaign, and to aid in generating more
advanced exploration targets undercover within ARC and its
immediate surrounds.
The proposed exploration above could be completed within 18
months and creates the potential for discovery from the outset.
This approach has low cost per unit of information gained and
permits a significant increase in the targeting accuracy. The
Company envisages that the proposed work program will yield
relatively high-certainty, drill-ready targets.
Exploration Team
As part of the transaction, Prairie has secured the services of
GEX as project managers for an initial two-year period, including
GEX founder and principal exploration geologist, Dr Jonathan
Bell.
GEX have been working in Greenland since 2017, with extensive
operating experience across exploration and logistics in the Arctic
environment managing the Frontier project as part of the JV with
ASX listed IGO Ltd (ASX:IGO) ( IGO ).
GEX are proven prospect generators with their first Greenland
project, Frontier, progressing from prospect stage to drilling on
the back of seven weeks of helicopter reconnaissance and no
geophysics.
GEX have established a solid reputation with the Government of
Greenland, other relevant stakeholders, and have a 100% safety
record. In 2019 GEX was awarded Greenlandic Prospector and
Developer of the Year. This award is granted by the Government of
Greenland to companies or people who have been active in
exploration and have shown initiative and innovation, as well as
inspiring other companies in how to explore in Greenland. Other
requirements for the award are good environmental practices and
social responsibility. The government of Greenland commented on
making the award that:
"Greenfields Exploration's projects in East Greenland, the
quality and methods of exploration, attitude towards high-quality
data, joint venture with IGO and ability to attract investment left
no doubts or questions to be recognized by the Government of
Greenland."
GREENLAND OVERVIEW
Greenland is the largest island on Earth and covers
2,170,00km(2) with a population of 60,000. A quarter of Greenland's
population live in the capital city, Nuuk. Approximately 88% of
Greenlanders identify as Greenlandic (i.e., of Greenlandic Inuit
descent), and native title issues that occur in Australia and
Canada do not arise.
Greenlandic is the official language of Greenland, however
Danish and English are also widely used by government
authorities.
Greenland is an autonomous territory within the Kingdom of
Denmark ruled by the Government of Greenland. Whilst Greenland was
a part of the European Community from 1973, through Danish
membership, Greenland formally withdrew from the European Community
in 1985 and is therefore not a member of the European Union.
Greenland gained home-rule in 1979, and in 2009 Denmark passed the
Act on Greenland Self-Government giving Greenland greater autonomy
and inter alia defined the natural resources of Greenland as being
the property of the Greenlandic people. The Act gave Greenland the
right to self-elect a government and parliament, although Denmark
retains control over items like defence, currency, policing and the
courts.
The Self-Government Act gives unique nation-building opportunity
to indigenous people within the framework of Western
institutionalism. In addition to indigenous empowerment, Greenland
has other favourable metrics (through Denmark) such as being the
world's least corrupt country, 11 (th) on the Human Development
Index, and 6 (th) on the Human Freedom Index.
Although Greenland has had autonomous rule since 2009, the
economy depends on Danish subsidies, which represent one-third of
national income. Greenland's government has identified the mining
industry as a source of national revenue, local jobs, and as a
means of achieving financial independence from Denmark to
ultimately become a country in its own. The 2019-2023 National
Mineral Strategy sets the goal of simplifying the transition from
resource exploration to exploitation, and the nation is actively
seeking foreign investment in the mining sector.
Greenland's corporate tax rate for exploration and mining
companies is 25%. The Greenland mineral royalty rate (excluding
hydrocarbons, radionuclides and gemstones) is 2.5% on the value of
the mine product ('ad valorem'), less corporate income and dividend
taxes. The flat personal tax rate incurred by a non-resident
working on exploration or mining projects is 35%, as opposed to the
42% on individuals working outside of the mineral sector. This
lower tax rate for individuals working in mining and exploration is
an incentive to grow the mining industry in Greenland.
Title
ARC comprises a single Special Exploration Licence (SEL) with an
area of 5,774km(2) . The license is valid until the end of 2024, at
which point it can be converted into a standard Exploration
Licence.
SELs are valid for three years with lower expenditure
requirements compared to a conventional Exploration Licence. After
a three-year term, a SEL may convert in part or whole, into a
conventional Exploration License. SELs must cover more than
1,000km(2) and are only available in northern and eastern Greenland
that are deemed by the government to be under-explored.
Conventional Exploration Licences are initially valid for five
years, but may be renewed for an additional five years, and then
three-year renewal periods after that. Exploration Licences may be
converted to an Exploitation (Mining) License subject to approvals.
Exploration Licences are exclusive and may not overlap. There is no
mandatory area reduction requirement; however voluntary reductions
are encouraged through annual increases in the minimum expenditure
requirements . The Greenlandic government has led the world in
pausing licence terms and expenditure obligations in response to
the COVID-19 pandemic.
If economically exploitable deposits are discovered then an
application is made to Greenland's Mineral Resource Authority for a
Mining Licence. Mining Licences convey exclusive extraction rights
for 30 years and can be renewed for a further 20 years.
COPPER MARKETS
The Agreement marks Prairie's entry into the copper sector at a
time when global focus is on a green revolution paving the way to
net zero emissions. Simply, there is no decarbonisation without
copper.
Copper is the most cost-effective conductive material while
boasting all the necessary physical attributes for capturing,
storing, and transporting all sources of non-renewable and
renewable energy - whether used to power an electric car or light
an eco-city.
Copper is vital to numerous solutions for controlling climate
change:
-- Copper is key for the performance and efficiency of solar
electricity panels which are increasing in global prevalence
-- Both the generator within and cables connecting wind turbines
require copper. Copper intensity in wind energy is expected to grow
as offshore projects, which require twice as much copper, become
more prevalent
-- Electric vehicles contain five times the copper of their
petrol or diesel counterparts. Copper is a major component used in
electric motors, batteries, inverters, and wiring.
-- Additionally, cabling for electric vehicle charging stations
will require copper. Standard AC charging points require between
1kg to 7kg copper; a fast DC charger can contain up to 25kg
copper.
According to a bottom-up model by Goldman Sachs, demand for
copper used in green technologies (Green copper) will grow nearly
600% from 998kt to 5.4Mt by 2030 or 900% to 8.7Mt if green
technologies are adopted faster. For the 2020s, this would imply
the strongest phase of global copper demand in history.
The copper market is already facing a clear market deficit in
both 2021 and 2022. Despite increases in supply from production
expected to come online, market analysts estimate significant
copper supply deficits from the second half of 2024 onwards
culminating in a long-term supply gap of 8.2Mt. This is nearly
double the long-term supply gap peaks in the 2000s and 2010s, when
real copper prices were at US$10,420/t and US$11,440/t
respectively.
During the last 5 years, there has been negligible increases in
global copper production averaging approximately 1% per year as
estimated by Goldman Sachs. Moreover, there have been no new
significant copper discoveries in the past five years.
COMMERCIAL TERMS OF THE EARN-IN AGREEMENT
Prairie will earn an interest of up 80% interest in ARC through
an EIA between Mineral Investment Pty Ltd, a wholly owned
subsidiary of the Company, and GEX.
Key terms of the EIA provide:
1. The Company, via its subsidiary, will earn its interest in ARC by:
a. spending A$3,500,000 on ARC within three years to earn a 51%
interest (First Earn-in Milestone);
b. spending a further A$3,500,000 on ARC within four years to
earn a further 19% interest (taking the total interest to 70%)
(Second Earn-in Milestone); and
c. spending a further A$3,000,000 on ARC within five years to
earn a further 10% interest (taking the total interest to 80%)
(Third Earn-in Milestone).
2. Post the Third Earn-in Milestone:
a. Each Party must contribute on a pro rata basis or be diluted.
b. If a party dilutes down below 10%, then its interest in ARC
automatically converts into a 1.75% Net Smelter Royalty (at this
stage GEX can also elect to convert straight to the royalty rather
than co-contributing or diluting down).
3. Prairie may withdraw from the earn-in in once it has spent a
minimum of A$1,000,000 prior to 31 December 2022.
4. To secure the services of the GEX exploration team, Prairie
will pay GEX a monthly services fee of A$54,167 per month for a
period to 31 December 2023 or such longer time period as agreed
between GEX and the Company. The GEX services will terminate if the
EIA is terminated or where both parties mutually agree in
writing.
5. Further consideration in the form of Prairie equity securities to GEX as follows:
a. 3 million Prairie shares on completion (subject to 12 months
voluntarily escrow from date of issue);
b. 5 million class A performance rights which vest and convert
into Prairie Shares (which will be subject to 6 months voluntary
escrow from the date of issue of the Prairie Shares upon conversion
of the Performance Rights) upon the announcement of an
independently assessed JORC Code inferred resource of at least
250,000 tonnes of copper equivalent at a minimum resource grade of
1% Cu Equivalent(**) (or equivalent, with a cut-off grade of 0.5%
Cu equivalent) at ARC and expire 5 years from date of issue;
and
c. 6 million class B performance rights which vest and convert
into Prairie Shares (which will be subject to 6 months voluntary
escrow from the date of issue of the Prairie Shares upon conversion
of the Performance Rights) upon the announcement of an
independently assessed JORC Code inferred resource of at least
500,000 tonnes of copper equivalent at a minimum resource grade of
1% Cu Equivalent(**) (or equivalent, with a cut-off grade of 0.5%
Cu equivalent) at ARC and expire 5 years from date of issue.
CHANGE OF DIRECTOR
Ms Carmel Daniele, founder and Chief Executive Officer of CD
Capital, will be stepping down as CD Capital's nominee to the
Prairie Board as a non-executive Director and will be replaced by
Mr Garry Hemming, a highly experienced exploration geologist,
effective immediately. Mr Hemming is a senior resource geologist at
CD Capital and brings over 40 years experience in exploration and
as a mining executive of public companies.
Mr Hemming has been involved in all aspects of discovering
projects and taking them from detailed exploration and through
feasibility study. Mr Hemming has lead teams that have discovered,
acquired and/or developed ore-bodies including the Yilgarn Star
Gold deposit in Western Australia, Hadleigh Castle/Rishton in
Queensland and the Acoje Nickel PGE deposit in the Philippines.
Mr Hemming joins the Prairie Board as a non-executive Director.
Fees for non-executive Directors are presently set an annual fee of
A$20,000. In addition, Mr Hemming will provide specialist
geological and exploration consulting services to Prairie by way of
a separate consultancy contract with an annual consulting fee of
A$40,000.
ENTITLMENTS ISSUE
The Company will undertake a one (1) for ten (10) pro rata
non-renounceable Entitlements Issue at $0.25
(GBP0.16/EUR0.15/PLN0.72) per share to raise up to $5.8 million
before costs.
Eligible shareholders will be entitled to acquire one (1) New
Share for ten (10) ordinary shares held at the record date (5
November 2021). New Shares under the Entitlements Issue will be
offered at $0.25 (GBP0.16/EUR0.15/PLN0.72) per share.
Directors will reserve the right to offer any shortfall shares
from the Entitlements Issue at their discretion (subject to
applicable regulatory requirements).
Further details of the Entitlements Issue and the timetable will
be announced separately in an Appendix 3B.
OPTIONS
Long-Term Employee Equity Incentive Plan
The Company advises that it will implement a new long-term
incentive employee equity incentive plan (LTIP), to attract and
retain directors and other key employees and consultants who will
be involved with the Project going forward.
Subject to shareholder approval the Company will issue incentive
options to the following Company directors (and others):
Director $0.45 options expiring $0.55 options expiring
30 November 2025 30 November 2026
------------------------ ----------------------- -----------------------
Mr Benjamin Stoikovich 1,500,000 1,500,000
Mr Mark Pearce 500,000 500,000
Other key employees
and consultants 3,375,000 3,375,000
------------------------ ----------------------- -----------------------
RISK FACTORS
Whilst Prairie has undertaken a due diligence process (including
title and other risks) with respect to the Project, it should be
noted that the usual risks associated with companies undertaking
exploration and development activities of projects in Greenland
will remain at completion of the acquisition.
A number of additional risk factors specific to the Project and
associated activities have also been identified, including, but not
limited to:
(a) The Project is located in Greenland, and as such, the
operations of the Company will be exposed to related risks and
uncertainties associated with the country, regional and local
jurisdictions. Opposition to the Project, or changes in local
community support for the Project, along with any changes in mining
or investment policies or in political attitude in Greenland and,
in particular to the mining, processing or use of copper, may
adversely affect the operations, delay or impact the approval
process or conditions imposed, increase exploration and development
costs, or reduce profitability of the Company.
(b) The project is remotely located in an area that has an
Arctic Climate and that is categorised as an Arctic Desert, and as
such, the operations of the Company will be exposed to related
risks and uncertainties of Arctic exploration.
(c) The Company's exploration and any future mining activities
are dependent upon the grant, maintenance and/or renewal from time
to time of the appropriate title interests, licences, concessions,
leases, claims, permits and regulatory consents which may be
withdrawn or made subject to new limitations. Transferring title
interests, maintaining title interests or obtaining renewals of or
getting the grant of title interests often depends on the Company
being successful in obtaining and maintaining required statutory
approvals for its proposed activities (including a licence for
mining operations) and that the title interests, licences,
concessions leases, claims, permits or regulatory consents it holds
will be maintained and when required renewed.
There is no assurance that such title interests, licences,
concessions, leases, claims, permits or regulatory consents will be
granted, or even if granted, not be revoked, significantly altered
or granted on terms or with conditions not acceptable to the
Company, or not renewed to the detriment of the Company or that the
renewals thereof will be successful.
Shareholders should note that some of the risks may be mitigated
by the use of appropriate safeguards and systems, whilst others are
outside the control of the Company and cannot be mitigated. Should
any of the risks eventuate, then it may have a material adverse
impact on the financial performance of the Project, the Company and
the value of the Company's securities.
Competent Persons Statement
Information in this announcement that relates to Exploration
Results is based on information compiled by Dr Jonathan Bell, a
Competent Person who is a member of the Australian Institute of
Geoscientists (AIG). Dr Bell is the Managing Director of
Greenfields Exploration Limited and holds an indirect interest in
performance rights in Prairie. Dr Bell has sufficient experience
that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken, 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'. Dr Bell consents to the inclusion in
this announcement of the matters based on his information in the
form and context in which it appears.
References
Technical Assessment Report: Arctic Rift Copper - Part of
world's newest metallogenic province: Kiffaanngissuseq -
Greenfields Exploration Ltd - November 2020 (
https://www.researchgate.net/publication/346029727_ARCTIC_RIFT_COPPER_Part_of_world%27s_newest_metallogenic_province_Kiffaanngissuseq
)
**Cu Equivalent means any combination of Cu, Ag, Ni, Co, Cr, Pt,
Pd, Au, Rh, Ru, Ir, Os, Zn and/or Pb.
Appendix A: Summary of Significant Historical Sample Results
Sample Type Latitude Longitude ASL Cu Ag Description
ID (m) (%) (ppm)
3705 Float not recorded not recorded - 100 0 Native copper, not assayed
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Massive chunk of bn +
cpy. The largest mass
of Cu sulphides found
3620 Float 512529 9099902 127 53.8 2,480 to date
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Lenses of bn + cc in
mineralised shear zone.
Lenses are 1cm thick
3594 Grab 513826 9101136 99 20.7 488 and 13cm long
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chunks of heavy mineralised
sandstones taken from
black pit. Malachite
+ primary Cu-sulphides.
Clay coating. Appears
to be mineralised fault
3540 Grab 512253 9099628 138 12.5 385 zone
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #2: only 0.2m.
Quartzite with stratabound
Cu-sulphide mineralisation.
0.5m long chip lines.
White to light red quartzite/arenite
with planar bedding features
- containing rounded
elongated chunks and
blebs of cc + bn - up
to 20cm long. Chunks
Chip are black with rims of
3533 line 512359 9099583 175 8.99 112 malachite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Sandstone with stratiform
3704 Grab 512177 9099668 146 7.85 53 bn, in situ
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Trench #1. 3m long trench.
Chunks of quartzites
from trench containing
mud laminas with mud
cracks + up to 2cm thick
dark lenses of bn with
disseminated native copper
+ malachite + cpy + pyrite
3609 Trench 512470 9099914 125 5.28 112 +/- cc
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #5. Black and black-greenish
3604 Pit 512468 9099926 137 4.98 304 dirt
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Stratiform cc + bn blebs
3596 Grab 511631 9099924 210 4.03 82 1x5cm
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #3. Black Earth -
weathering product of
3567 Pit 513263 9101410 150 3.60 106 mineralised fault
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Trench #1. Black Earth
mixed with olive-green
3608 Trench 512470 9099914 125 3.55 263 earth. From 3m long trench
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #7: Disseminated
Chip malachite throughout.
3633 line 512181 9099672 140 3.42 34 1cm bands of cc
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Stockwork veins on mineralised
breccia. Blebs of cc
3597 Grab 511631 9099924 210 3.35 71 + bn
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Decomposed/crumbled block
of black dirt. Crushed
zone - extensive jointing
1-3m wide area. Malachite
3526 Float 511973 9099762 175 3.19 73 grains within
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #7: Malachite
Chip + stratiform and blebs
3631 line 512179 9099670 140 3.12 77 of bn +/- pyrite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #5. Crushed up quartzite
fragments (5-20cm large).
Malachite + bn + pyrite
+ cc. Interbedded clay
3605 Pit 512468 9099926 137 2.94 151 sheets few mm thick
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Medium-grained sandstone
3621 Float 512497 9099902 127 2.35 59 with bn cement
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #7: across
1.5m brecciated shear
zone and 1m into above
Chip normal bedded mineralised
3629 line 512177 9099668 140 2.22 79 sandstone
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Calcite + prehnite +
3626 Float 502496 9069442 600 2.02 4 native Cu
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Composite grab of Black
3665 Grab 511937 9099778 185 2.01 40 Earth
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Qtz-calcite, radiating
white minerals? Grains
of native copper. GEX
note: The original description
is not clear, but it
is likely to be a basalt
3601 Float 510567 9098866 307 1.89 13 sample
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #8: 0.5m chip
lines. Mineralised bedding
Chip low-angle sheared block
3635 line 512099 9099706 153 1.85 53 with blebs of bn + cc
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Quartzite of Jyske Ås
with diffuse bedding
plane bn mineralisation
3501 Grab 512333 9099910 150 1.64 72 crosscut by thin veins
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Cc
+ bn in veins and distinct
sand-size black sulphide
Chip grains. Disseminated
3578 line 513811 9101141 115 1.42 17 malachite throughout
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #4. Black Earth with
small malachite grains
- Taken from 45cm depth
3569 Pit 513838 9101130 150 1.41 35 in the pit
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Brecciated sandstone
3714 Grab 512330 9099580 135 1.34 51 with bn, in situ
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #7: Grab form
Chip pit of quartzite with
3630 line 512178 9099669 140 1.33 37 malachite + bn + cpy
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip Chip line #10: 1m chip
3656 line 511974 9099763 179 1.18 60 line. Black Earth
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Quartzite breccia filled
3616 Float 512486 9099914 133 1.14 39 with bn + cc
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #4. Crushed up fist-sized
quartzites. Taken from
Black Earth pit. Heavily
copper-stained. Heavy
3570 Pit 513838 9101130 150 1.14 27 density
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Most
sulphides + malachite
Chip staining occurs between
3577 line 513810 9101140 114 1.10 15 samples 3575 - 3583
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Cu-mineralised sandstone
from 125deg-striking
3706 Grab 513831 9101138 107 1.07 15 breccia zone
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip Chip line #8: Mineralised
3636 line 512100 9099707 153 1.07 46 bedding. Dipping 20deg/north?
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Sandstone with stratiform
Cu-mineralisation, in
3703 Grab 512360 9099574 122 1.02 19 situ
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Most
sulphides + malachite
Chip staining occurs between
3576 line 513810 9101139 114 0.94 10 sample 3575 - 3583
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Black Earth shear zone.
Sample of near rotated
block of grey sandstone
with Cu sulphides and
malachite. Mineralised
thin veins. Small (1-2mm)
Composite in diameter blebs of
3664 grab 511937 9099778 185 0.92 28 cc / bn
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Cc
+ bn in veins and distinct
Chip sand-size black sulphide
3580 line 513812 9101143 116 0.91 14 grains
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Grab sample of detached
block in shear zone near
chip line sample 3580.
Stockwork of malachite
+ cc + bn mineralised
3595 Grab 513826 9101136 95 0.89 22 qtz veins
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Cc
+ bn in veins and distinct
Chip sand-size black sulphide
3579 line 513811 9101142 115 0.81 15 grains
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip Chip line #7: Stratiform
3634 line 512182 9099673 140 0.79 33 bn / cc - 1mm layers.
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #2: Quartzite
with stratabound Cu-sulphide
mineralisation. 0.5m
long chip lines. White
to light red quartzite/arenite
with planar bedding features
- containing rounded
elongated chunks and
blebs of cc + bn - up
to 20 cm long. Chunks
Chip are black with rims of
3532 line 512358 9099582 175 0.76 13 malachite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Coarse-grained quartzite
with interstitial Cu-sulphide
mineralisation - but
3619 Float 52514 9099904 127 0.74 16 minor cpy + bn
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Cc
+ bn in veins and distinct
Chip sand-size black sulphide
3581 line 513812 9101144 116 0.74 16 grains.
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Sandstone with disseminated
bn, scree block 5m below
3712 Float 512547 9099808 135 0.72 9 3710
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines. North of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3649 line 512007 9099774 172 0.68 28 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip Chip line #7: Less mineralised
3632 line 512180 9099671 140 0.66 9 than 3631. Still bn blebs
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Medium-grained quartzite.
Rust and malachite staining.
Many black greasy spots
3561 Grab 513259 9101420 150 0.62 22 (clay?). Sulphides found
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #2. Black clay/dirt.
Very greasy and wet.
3562 Pit 513259 9101420 150 0.62 77 Picked up from 20cm depth
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Loose block in fault
zone. Grey quartzite
3566 Float 513263 9101410 150 0.62 15 with bn + cc mineralisation
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Coarse-grained quartzite
with interstitial Cu-sulphide
3618 Float 512512 9099910 125 0.61 24 mineralisation
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Pit #9. Medium-grained
quartzite. Rust and malachite
staining. Black greasy
spots (clay?). Sulphides
3560 Pit 513259 9101420 150 0.61 17 found
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3650 line 511998 9099773 172 0.51 16 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Most
sulphides + malachite
Chip staining occurs between
3575 line 513809 9101138 113 0.48 3.5 sample 3575 - 3583
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3651 line 511994 9099772 173 0.48 19.8 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #4: Brecciated
with stockwork of qtz
+ sulphide veins. Cc
+ bn in veins and distinct
Chip sand-size black sulphide
3582 line 513813 9101145 117 0.48 8.3 grains
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Dissimenated sulphides
3598 Grab 511631 9099924 210 0.47 2.6 in quartzite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3654 line 511982 9099768 175 0.46 4.7 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3652 line 511990 9099771 174 0.46 10.3 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3653 line 511986 9099770 174 0.45 6 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Light quartzite with
3568 Float 513863 9101114 150 0.44 2.1 significant malachite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Medium-grained quartzite.
Rust and malachite staining.
Black greasy spots (clay?).
3565 Grab 513259 9101420 150 0.43 10.2 Sulphides found
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3647 line 512017 9099778 167 0.40 18.7 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3648 line 512012 9099776 170 0.40 24.1 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Brecciated quartzite
at base of cliff. 3m
wide. Cu sulphides. Chip
3613 Chip 512502 9099910 126 0.37 14.6 sample of 2m(2) area.
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #5: 0.5cm long
sections. Fine-grained
reddish sandstone with
Chip laminated mud cracks.
3606 line 512488 9099908 131 0.36 19.1 Bn along apparent vein
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Sandstone with disseminated
interstitial bn + cc
3622 Grab 512528 9099902 123 0.34 23.1 and 1mm blebs of cc
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Brecciated quartzite.
Open space breccia. Cu
sulphides. Chip sample
3614 Chip 512490 9099914 132 0.33 21.1 of 2 m(2) area
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Quartzite with bn + qtz
3617 Float 512506 9099896 125 0.32 13.9 filling veins
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Shale with disseminated
3882 Float 510756 9101073 275 0.32 0.12 pyrite/cc
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3646 line 512022 9099780 164 0.31 11.9 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Grab sample of two float
samples with malachite
mineralisation. Stockwork
veins. Other side of
3628 Float 513848 9099350 130 0.31 4.5 Neergaard valley
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #1: 0.5m long
chip lines. Trending
60deg. Small thrust faults
trending 290deg. Dip
Chip of slope 10deg - 150deg
3518 line 512336 9099927 136 0.30 19.9 SE
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #1: 0.5m long
chip lines. Trending
60deg. Small thrust faults
trending 290deg. Dip
Chip of slope 10deg - 150deg
3515 line 512333 9099924 136 0.30 14.4 SE
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #5: 0.5 cm
long sections. Fine-grained
reddish sandstone with
Chip laminated mud cracks.
3607 line 512489 9099909 131 0.30 16.8 Bn along apparent vein
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #2: Quartzite
with. stratabound Cu-sulphide
mineralisation. 0.5m
long chip lines. White
to light red quartzite/arenite
with planar bedding features
- containing rounded
elongated chunks and
blebs of cc + bn - up
to 20cm long. Chunks
Chip are black with rims of
3531 line 512357 9099581 175 0.29 8.1 malachite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
3527 Grab 511973 9099762 175 0.27 611 Mineralised quartzite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Sandstone with blebs
of bn, scree block 5m
3713 Float 512547 9099808 135 0.26 12.6 below 3710
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #2: Quartzite
with stratabound Cu-sulphide
mineralisation. 0.5m
long chip lines White
to light red quartzite/arenite
with planar bedding features
- containing rounded
elongated chunks and
blebs of cc + bn - up
to 20cm long. Chunks
Chip are black with rims of
3534 line 512360 9099584 175 0.25 3.4 malachite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #1: 0.5m long
chip lines. Trending
60deg. Small thrust faults
trending 290deg. Dip
Chip of slope 10deg - 150deg
3514 line 512332 9099923 136 0.23 11.9 SE
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #1: 0.5m long
chip lines. Trending
60deg. Small thrust faults
trending 290deg. Dip
Chip of slope 10deg - 150deg
3519 line 512337 9099928 136 0.22 10.5 SE
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #10: 1m chip
lines across 9m breccia
zone with Black Earth.
Chip Brecciated zone trending
3655 line 511975 9099764 179 0.21 10.2 120deg
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #9: 1m chip
lines north of 9m-wide
breccia zone. Malachite
stained yellow-grey sandstones.
Few mm-thick discordant
Chip veins and veinlets of
3645 line 512027 9099782 161 0.20 3.9 qtz
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #1: 0.5m long
chip lines. Trending
60deg. Small thrust faults
trending 290deg. Dip
Chip of slope 10deg - 150deg
3513 line 512331 9099922 136 0.20 15.8 SE
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Chip line #2: Quartzite
with stratabound Cu-sulphide
mineralisation. 0.5m
long chip lines. White
to light red quartzite/arenite
with planar bedding features
- containing rounded
elongated chunks and
blebs of cc + bn - up
to 20cm long. Chunks
Chip are black with rims of
3535 line 512361 9099585 175 0.20 4.2 malachite
---------- ------------- ------------- ----- ----- ------- --------------------------------------
Legend:
Cu - copper, cc - chalcocite, cpy - chalcopyrite, bn - bornite,
qtz - quartz
Notes:
1. Co-ordinates are in UTM Zone 26N (WGS 84) and have been measured by hand-held GPS
2. Positional measurements (northing, easting, and RL) that are calculated by GEX are in italics
Appendix B: Historical Full Trench, Pit, and Chip Line Sampling
Results
Sample Sample Northing Easting ASL Cu Ag Description
ID type (m) (m) (m) (%) (ppm)
or
Line
#
Trench #1
Black Earth mixed with
olive-green earth. From
3608 Trench 512470 9099914 125 3.55 263 3m long Trench #1.
------- --------- -------- ----- ----- ------- ----------------------------------
Chunks of quartzites from
trench containing mud laminas
with mud cracks + up to
2cm thick dark lenses of
bn with disseminated native
copper + malachite + cpy
+ pyrite +/- cc. From 3m
3609 Trench 512470 9099914 125 5.28 112 long Trench #1.
------- --------- -------- ----- ----- ------- ----------------------------------
Pit #1
Chunks of heavy mineralised
sandstones taken from black
pit. Malachite + primary
Cu-sulphides. Clay coating.
Appears to be mineralised
3540 Grab 512253 9099628 138 12.5 385 fault zone
------- --------- -------- ----- ----- ------- ----------------------------------
Pit #2
Black clay/dirt. Very greasy
and wet. Picked up from
3562 Grab 513259 9101420 150 0.62 77 20cm depth
------- --------- -------- ----- ----- ------- ----------------------------------
Black Earth - weathering
product of mineralised
3567 Grab 513263 9101410 150 3.60 106 fault
------- --------- -------- ----- ----- ------- ----------------------------------
Pit #3
Black Earth with small
malachite grains - Taken
from 45cm depth in the
3569 Grab 513838 9101130 150 1.41 35 pit
------- --------- -------- ----- ----- ------- ----------------------------------
Crushed up fist-sized quartzites.
Taken from Black Earth
pit. Heavily copper-stained.
3570 Grab 513838 9101130 150 1.14 27 Heavy density
------- --------- -------- ----- ----- ------- ----------------------------------
Pit #4
Black and black-greenish
3604 Grab 512468 9099926 137 4.98 304 dirt.
------- --------- -------- ----- ----- ------- ----------------------------------
Crushed up quartzite fragments
(5-20cm large). Malachite
+ bn + pyrite + cc. Interbedded
3605 Grab 512468 9099926 137 2.94 151 clay sheets few mm thick
------- --------- -------- ----- ----- ------- ----------------------------------
Pit #5
Composite grab of Black
3665 Pit 511937 9099778 185 2.01 40 Earth
------- --------- -------- ----- ----- ------- ----------------------------------
Pit #6
Medium-grained quartzite.
Rust and malachite staining.
Black greasy spots (clay?).
3560 Grab 513259 9101420 150 0.61 17 Sulphides found
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #1
0.5m long chip lines. Trending
60deg. Small thrust faults
trending 290deg. Dip of
3502 1 512321 9099912 136 0.01 9.2 slope 10deg - 150deg SE
------- --------- -------- ----- ----- ------- ----------------------------------
3503 1 512322 9099913 136 0.04 5 "
------- --------- -------- ----- ----- ------- ----------------------------------
3504 1 512323 9099914 136 0.03 6.3 "
------- --------- -------- ----- ----- ------- ----------------------------------
3505 1 512323 9099914 136 0.03 4.8 "
------- --------- -------- ----- ----- ------- ----------------------------------
3506 1 512324 9099915 136 0.06 3.2 "
------- --------- -------- ----- ----- ------- ----------------------------------
3507 1 512325 9099916 136 0.05 8.1 "
------- --------- -------- ----- ----- ------- ----------------------------------
3508 1 512326 9099917 136 0.03 7.7 "
------- --------- -------- ----- ----- ------- ----------------------------------
3509 1 512327 9099918 136 0.02 8 "
------- --------- -------- ----- ----- ------- ----------------------------------
3510 1 512328 9099919 136 0.08 10.7 "
------- --------- -------- ----- ----- ------- ----------------------------------
3511 1 512329 9099920 136 0.07 13.5 "
------- --------- -------- ----- ----- ------- ----------------------------------
3512 1 512330 9099921 136 0.05 6.9 "
------- --------- -------- ----- ----- ------- ----------------------------------
3513 1 512331 9099922 136 0.20 15.8 "
------- --------- -------- ----- ----- ------- ----------------------------------
3514 1 512332 9099923 136 0.23 11.9 "
------- --------- -------- ----- ----- ------- ----------------------------------
3515 1 512333 9099924 136 0.30 14.4 "
------- --------- -------- ----- ----- ------- ----------------------------------
3516 1 512334 9099925 136 0.01 0.7 "
------- --------- -------- ----- ----- ------- ----------------------------------
3517 1 512335 9099926 136 0.02 0.5 "
------- --------- -------- ----- ----- ------- ----------------------------------
3518 1 512336 9099927 136 0.30 19.9 "
------- --------- -------- ----- ----- ------- ----------------------------------
3519 1 512337 9099928 136 0.22 10.5 "
------- --------- -------- ----- ----- ------- ----------------------------------
3520 1 512338 9099929 136 0.19 13.1 "
------- --------- -------- ----- ----- ------- ----------------------------------
3521 1 512339 9099930 136 0.03 8.3 "
------- --------- -------- ----- ----- ------- ----------------------------------
3522 1 512340 9099931 136 0.01 6.7 "
------- --------- -------- ----- ----- ------- ----------------------------------
3523 1 512341 9099932 136 0.00 1.4 "
------- --------- -------- ----- ----- ------- ----------------------------------
3524 1 512342 9099933 136 0.00 1.6 "
------- --------- -------- ----- ----- ------- ----------------------------------
3525 1 512343 9099934 136 0.00 1.3 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #2
0.5m long chip lines. Quartzite
with stratabound Cu-sulphide
mineralisation. 0.5m long
chip lines. White to light
red quartzite/arenite with
planar bedding features
- containing rounded elongated
chunks and blebs of cc
+ bn - up to 20cm long.
Chunks are black with rims
3528 2 512354 9099578 175 0.02 2 of malachite
------- --------- -------- ----- ----- ------- ----------------------------------
3529 2 512355 9099579 175 0.02 16 "
------- --------- -------- ----- ----- ------- ----------------------------------
3530 2 512356 9099580 175 0.01 1.1 "
------- --------- -------- ----- ----- ------- ----------------------------------
3531 2 512357 9099581 175 0.29 8.1 "
------- --------- -------- ----- ----- ------- ----------------------------------
3532 2 512358 9099582 175 0.76 13 "
------- --------- -------- ----- ----- ------- ----------------------------------
3533 2 512359 9099583 175 8.99 112 Chip line only 0.2m
------- --------- -------- ----- ----- ------- ----------------------------------
3534 2 512360 9099584 175 0.25 3.4 Same as 3528
------- --------- -------- ----- ----- ------- ----------------------------------
3535 2 512361 9099585 175 0.20 4.2 "
------- --------- -------- ----- ----- ------- ----------------------------------
3536 2 512362 9099586 175 0.04 0.7 "
------- --------- -------- ----- ----- ------- ----------------------------------
3537 2 512363 9099587 175 0.04 1.1 "
------- --------- -------- ----- ----- ------- ----------------------------------
3538 2 512364 9099588 175 0.10 2 "
------- --------- -------- ----- ----- ------- ----------------------------------
3539 2 512365 9099589 175 0.01 2.2 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #3
0.5m long chip lines. Massive
brecciated. No malachite.
3542 3 513269 9101416 143 0.06 1 No primary bedding features
------- --------- -------- ----- ----- ------- ----------------------------------
3543 3 513269 9101418 143 0.03 0.6 "
------- --------- -------- ----- ------- ----------------------------------
0.5m long chip lines. Malachite.
3544 3 513269 9101420 143 0.04 0.4 Stockwork qtz-veins
------- --------- -------- ----- ------- ----------------------------------
3545 3 513269 9101422 144 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
0.5m long chip lines. Minor
3546 3 513269 9101424 144 0.01 1 malachite. Bedding features
------- --------- -------- ----- ------- ----------------------------------
0.5m chip lines. Malachite.
3547 3 513269 9101426 144 0.11 3.4 Stockwork qtz-veins
------- --------- -------- ----- ------- ----------------------------------
3548 3 513269 9101428 145 0.09 2.3 "
------- --------- -------- ----- ------- ----------------------------------
0.5m long chip lines. Variable
malachite. Discordant sulphide
veins. Minor qtz Stockwork
3549 3 513269 9101430 145 0.04 0.8 qtz-veins
------- --------- -------- ----- ------- ----------------------------------
3550 3 513269 9101432 146 0.04 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3551 3 513269 9101434 146 0.10 0.9 "
------- --------- -------- ----- ------- ----------------------------------
3552 3 513269 9101436 147 0.02 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3553 3 513269 9101438 147 0.06 0.6 "
------- --------- -------- ----- ------- ----------------------------------
3554 3 513269 9101440 148 0.00 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3555 3 513269 9101442 148 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3556 3 513269 9101444 149 0.03 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3557 3 513269 9101446 149 0.03 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3558 3 513269 9101448 150 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3559 3 513269 9101458 150 0.00 0.3 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #4
1 m long chip line sections
across shear zone. Dip
3571 4 513808 9101132 112 0.01 0.3 20-25deg/SW
------- --------- -------- ----- ----- ------- ----------------------------------
3572 4 513808 9101135 112 0.01 0.4 Same as 3571
------- --------- -------- ----- ------- ----------------------------------
3573 4 513808 9101136 112 0.01 0.4 "
------- --------- -------- ----- ------- ----------------------------------
3574 4 513809 9101137 113 0.01 0.4 "
------- --------- -------- ----- ------- ----------------------------------
1m long chip line. Brecciated
with stockwork of qtz +
sulphide veins. Most sulphides
+ malachite staining occurs
3575 4 513809 9101138 113 0.48 3.5 between sample 3575 - 3583
------- --------- -------- ----- ------- ----------------------------------
3576 4 513810 9101139 114 0.94 10 "
------- --------- -------- ----- ------- ----------------------------------
1m long chip line. Brecciated
with stockwork of qtz +
sulphide veins. Cc + bn
in veins and distinct sand-size
3577 4 513810 9101140 114 1.10 15 black sulphide grains
------- --------- -------- ----- ------- ----------------------------------
1m long chip line. Brecciated
with stockwork of qtz +
sulphide veins. Cc + bn
in veins and distinct sand
size black sulphide grains.
Disseminated malachite
3578 4 513811 9101141 115 1.42 17 throughout
------- --------- -------- ----- ------- ----------------------------------
3579 4 513811 9101142 115 0.81 15 Same as 3577
------- --------- -------- ----- ------- ----------------------------------
3580 4 513812 9101143 116 0.91 14 "
------- --------- -------- ----- ------- ----------------------------------
3581 4 513812 9101144 116 0.74 16 "
------- --------- -------- ----- ------- ----------------------------------
3582 4 513813 9101145 117 0.48 8.3 "
------- --------- -------- ----- ------- ----------------------------------
3583 4 513813 9101146 117 0.02 0.4 "
------- --------- -------- ----- ------- ----------------------------------
3584 4 513814 9101147 118 0.07 0.7 "
------- --------- -------- ----- ------- ----------------------------------
1m long chip line. No malachite
3585 4 513814 9101148 118 0.05 0.7 staining
------- --------- -------- ----- ------- ----------------------------------
3586 4 513815 9101149 119 0.04 0.8 "
------- --------- -------- ----- ------- ----------------------------------
3587 4 513815 9101150 119 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3588 4 513816 9101151 120 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3589 4 513816 9101152 120 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
1m long chip line. Sheared
3590 4 513817 9101153 121 0.00 0.3 and brecciated
------- --------- -------- ----- ------- ----------------------------------
3591 4 513817 9101154 121 0.00 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3592 4 513818 9101155 122 0.02 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3593 4 513818 9101156 122 0.01 0.3 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #5
0.5cm long chip lines.
Fine-grained reddish sandstone
with laminated mud cracks.
3606 5 512488 9099908 131 0.36 19.1 Bn along apparent vein
------- --------- -------- ----- ----- ------- ----------------------------------
3607 5 512489 9099909 131 0.30 16.8 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #6
0.5m long chip lines. Homogenous
quartzite with disseminated
3610 6 512490 9099866 120 0.06 5.4 bn
------- --------- -------- ----- ----- ------- ----------------------------------
3611 6 512491 9099867 120 0.11 12.5 "
------- --------- -------- ----- ----- ------- ----------------------------------
3612 6 512492 9099868 120 0.05 9.3 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #7
Black dirt from 0.75m wide
3629 7 512177 9099668 140 2.22 79 pit. Grab from pit
------- --------- -------- ----- ----- ------- ----------------------------------
Representative grab from
same 0.75m wide pit as
above of quartzite with
3630 7 512178 9099669 140 1.33 37 malachite + bn + cpy
------- --------- -------- ----- ----- ------- ----------------------------------
1.5m across breccia zone.
Malachite + stratiform
3631 7 512179 9099670 140 3.12 77 blebs of bn +/- cpy
------- --------- -------- ----- ----- ------- ----------------------------------
0.75m vertical. Less mineralised
3632 7 512180 9099671 140 0.66 9 than 3631. Still bn blebs
------- --------- -------- ----- ----- ------- ----------------------------------
0.75m. Disseminated malachite
throughout. 1cm bands of
3633 7 512181 9099672 140 3.42 34 cc
------- --------- -------- ----- ----- ------- ----------------------------------
0.75m. Stratiform bn/cc
3634 7 512182 9099673 140 0.79 33 - 1mm layers
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #8
0.5m long chip lines. Mineralised
bedding low-angle sheared
block with blebs of bn
3635 8 512099 9099706 153 1.85 53 + cc
------- --------- -------- ----- ----- ------- ----------------------------------
Mineralised bedding. Dipping
3636 8 512100 9099707 153 1.07 46 20deg/north?
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #9
1m long chip line. Only
3637 9 512095 9099794 152 0.03 1.8 minor malachite
------- --------- -------- ----- ----- ------- ----------------------------------
3638 9 512082 9099793 153 0.06 1.6 "
------- --------- -------- ----- ------- ----------------------------------
3639 9 512073 9099792 154 0.06 1.1 "
------- --------- -------- ----- ------- ----------------------------------
3640 9 512064 9099791 155 0.02 1.1 "
------- --------- -------- ----- ------- ----------------------------------
3641 9 512055 9099790 156 0.11 2.2 "
------- --------- -------- ----- ------- ----------------------------------
3642 9 512046 9099789 157 0.06 3 "
------- --------- -------- ----- ------- ----------------------------------
3643 9 512037 9099788 158 0.09 3.9 "
------- --------- -------- ----- ------- ----------------------------------
1m long chip line. Breccia
3644 9 512028 9099786 158 0.02 1.1 zone starts. Striking 120deg
------- --------- -------- ----- ----- ------- ----------------------------------
3645 9 512027 9099782 161 0.20 3.9 "
------- --------- -------- ----- ------- ----------------------------------
3646 9 512022 9099780 164 0.31 11.9 "
------- --------- -------- ----- ------- ----------------------------------
3647 9 512017 9099778 167 0.40 18.7 "
------- --------- -------- ----- ------- ----------------------------------
3648 9 512012 9099776 170 0.40 24.1 "
------- --------- -------- ----- ------- ----------------------------------
3649 9 512007 9099774 172 0.68 28 "
------- --------- -------- ----- ----- ------- ----------------------------------
3650 9 511998 9099773 172 0.51 16 "
------- --------- -------- ----- ------- ----------------------------------
3651 9 511994 9099772 173 0.48 19.8 "
------- --------- -------- ----- ------- ----------------------------------
3652 9 511990 9099771 174 0.46 10.3 "
------- --------- -------- ----- ------- ----------------------------------
3653 9 511986 9099770 174 0.45 6 "
------- --------- -------- ----- ------- ----------------------------------
3654 9 511982 9099768 175 0.46 4.7 "
------- --------- -------- ----- ----- ------- ----------------------------------
Chip line #10
1m long chip lines across
breccia zone. The 9m brecciated
3655 10 511975 9099764 179 0.21 10.2 zone trends 120deg
------- --------- -------- ----- ----- ------- ----------------------------------
1m long chip line. Black
3656 10 511974 9099763 179 1.18 60 Earth
------- --------- -------- ----- ------- ----------------------------------
1m long chip line across
3657 10 511973 9099762 178 0.09 2.4 breccia zone
------- --------- -------- ----- ------- ----------------------------------
3658 10 511972 9099761 178 0.05 2 "
------- --------- -------- ----- ------- ----------------------------------
3659 10 511971 9099760 177 0.18 4.5 "
------- --------- -------- ----- ------- ----------------------------------
3660 10 511970 9099759 177 0.18 5.1 "
------- --------- -------- ----- ------- ----------------------------------
3661 10 511969 9099758 176 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3662 10 511968 9099758 176 0.01 0.3 "
------- --------- -------- ----- ------- ----------------------------------
3663 10 511966 9099758 175 0.01 0.5 "
------- --------- -------- ----- ----- ------- ----------------------------------
Legend:
Cu - copper, cc - chalcocite, cpy - chalcopyrite, bn - bornite,
qtz - quartz
Notes:
1. Co-ordinates are in UTM Zone 26N (WGS 84) and have been measured by hand-held GPS
2. Positional measurements (northing, easting, and RL) that are calculated by GEX are in italics
Descriptions:
Trench: A prospecting trench is used to investigate and sample
the subsurface. At ARC, a 3m wide trench was dug to approximately
0.5m depth in 'Black Earth' mineralisation (extremely altered,
poorly consolidated, high-grade mineralisation).
Pit: A prospecting pit is used to access fresher rock at depth.
At ARC, six historical pits were set in 'Black Earth' and varied in
depth from 0.45m to 0.8m.
Chip line: A line of rock chips broken off across a mineralised
outcrop to provide a representative measure of width and grade of
mineralisation. The chip line will cover a mineralised zone as well
as the unmineralized wall rock on either side. At ARC, chip lines
have intervals of 0.5m or 1m, where the rock chips from each
interval making one sample. In each interval, chips of rock are
broken off the outcrop along a line (i.e., a chip line) and
sampled. The objective of this method is to provide a
representative measure of mineralisation grade and width.
Appendix C: JORC Code, 2012 Edition - Table 1 Report
JORC Table 1, section
1
Criteria Arctic Rift Copper project
Sampling techniques Assay data presented in this document largely
relate to the historical geochemical sampling
of trench samples, rock chips, grab samples, and
stream sediments. For the 2010 work by Avannaa:
" A total of 202 samples were collected during
the field program. Of these, 199 samples were
bagged and send to Actlabs, Ancaster Canada for
chemical analyses. Some 182 of these samples represent
mineralisations, whereas the rest were taken as
reference samples. To access the grade of copper
and silver mineralisation at J.C. Christensen
Land [GEX: effectively the entire ARC licence],
semicontinuous chip lines were undertaken through
the most pronounced mineralised rocks. The length
of individually chip line samples varies but the
standard length is 0.5 m or 1.0 m. The entire
chip line lengths presented in this report are
all estimated as true stratigraphic thickness
across the samples structure. Ten chip lines were
laid out, resulting in a total of 117 chip samples.
A representative hand sample of each chip line
section was collected for reference". The weight
of the samples sent for chemical analyses were
usually in the 1.5 to 2.4kg range, and chip lines
were typically taken over 0.5m to 1.0 m lengths.
In 2011, Avannaa collected 249 rock samples and
227 stream sediment samples across a 4,051km(2)
licence package. The rock samples were submitted
to ALS laboratories for wet-assay analyses, however
the stream sediment samples were only subject
to hand-held XRF analysis. To the best of Greenfields'
knowledge, the XRF readings were never submitted
to the authorities. The weight of the 2011 samples
is typically in the 200g to 300g range. Standards
and duplicates were used in both the 2010 and
2011 programs.
Drill techniques No drilling has ever occurred within the ARC.
Drill sample No drilling has ever occurred within the ARC.
recovery
Logging No drilling has ever occurred within the ARC,
and as such no logging records exist.
Sub-sampling The Company is unaware of any sub-sampling techniques
techniques or sample preparation.
and sample
preparation
Quality of Avannaa used commercial assay-labs that supply
assay data quality certificates as part of the deliverable.
and laboratory Greenfields has no concern about the wet assays.
tests However, XRF information should be treated with
caution due to the small sample window available
to hand-held devices and the need for in-field
calibrations depending on the order of magnitude
of the element quanta. Furthermore, as stream
sediments may be highly variable and elements
of interest having very low levels of detection,
Greenfields does not use the 2011 stream sediment
XRF readings.
Verification No third-party verification of the historical
of sampling assay results has been undertaken.
and assaying
Location of The data locations and topographic control are
data points based on information that is publicly disclosed
by the Government. Grids are based on UTM Zones
26 and 27N using the WGS84 Datum.
Data spacing The geochemical sampling is erratically distributed
and distribution and based visual anomalism or physical/topographical
availability. Much of the licence area is undercover
which often prevents a grid approach.
Orientation Historical assays appear to have been collected
of data in across geological features as opposed to lengthwise.
relation to The Company considers this to be an appropriate
geological practice.
structure
Sample security Greenfields has no information on the measures
taken to ensure sample security. Given the age
of the sampling and the low probability of sample
tampering, the Company has no cause for concern.
Audits or reviews Greenfields is unaware of any audits or reviews
within ARC.
JORC Table 1, section 2
Criteria Arctic
Rift
Copper
project
Mineral tenement The Arctic Rift Copper project ('ARC') comprises
and land tenure a single Special Exploration Licence ('MEL-S'
status 2021-07, 'SEL'). The spatial area of the application
is 5,774km(2) , the boundary of which is defined
by the points:
82deg3'N, 29deg18'W 81deg35'N, 26deg8'W
82deg3'N, 25deg41'W 81deg30'N, 26deg8'W
82deg0'N, 25deg41'W 81deg30'N, 26deg54'W
82deg0'N, 25deg43'W 81deg25'N, 26deg54'W
81deg59'N, 25deg43'W 81deg25'N, 28deg20'W
81deg59'N, 25deg44'W 81deg21'N, 28deg20'W
81deg58'N, 25deg44'W 81deg21'N, 29deg35'W
81deg58'N, 25deg46'W 81deg19'N, 29deg35'W
81deg56'N, 25deg46'W 81deg19'N, 31deg0'W
81deg56'N, 25deg48'W 81deg27'N, 31deg0'W
81deg55'N, 25deg48'W 81deg27'N, 31deg42'W
81deg55'N, 25deg50'W 81deg34'N, 31deg42'W
81deg53'N, 25deg50'W 81deg34'N, 32deg7'W
81deg53'N, 25deg52'W 81deg51'N, 32deg7'W
81deg50'N, 25deg52'W 81deg51'N, 31deg0'W
81deg50'N, 25deg54'W 81deg54'N, 31deg0'W
81deg46'N, 25deg54'W 81deg54'N, 30deg18'W
81deg46'N, 25deg55'W 81deg58'N, 30deg18'W
81deg35'N, 25deg55'W 81deg58'N, 29deg18'W
A SEL confers an exclusive right to explore for
mineral for three years at a reduced holding
cost, provided each licence covers more than
1,000km(2) . After three years, the holder of
Special Exploration Licence has the right to
convert the area, whole or in part, to conventional
Exploration Licences. Due to the Coronavirus
pandemic, all licence obligation in Greenland
have been paused until the end of 2021, such
that the SEL can convert to a normal licence
at the end of 2024.
The minimum expenditure obligation for a SEL
is DKK500/km(2) indexed to Danish CPI as at January
1992. Greenfields estimates the expenditure requirement
will be approximately AUD1,080,000 per annum.
However, the Government has waived all expenditure
obligations for 2020 and 2021, and as such, no
holding cost of the licence will crystallise
until 31 December 2022. The obligation for 2022
will be calculated on 1 January 2023 based on
the area under licence on a preceding day. Expenditure
above the minimum regulatory requirement is carried
forward for a maximum of three years. ARC is
in good standing.
There are no third-party royalties or other rights
relating to ARC.
Exploration ARC
done was
by subject
other to
parties commercial
exploration
by
Avannaa
Resources
Limited
('Avannaa')
in
2010
and
2011.
In
its
first
year,
Avannaa
focussed
its
work
in
a
small
area
in
the
northern
part
of
the
licence
area
known
as
Neergaard
North.
This
work
focussed
on
historical
government
and
academic
work
that
had
identified
highly
anomalous
copper
mineralisation.
In
2010,
the
work
included
geochemical
soil
sampling,
rock
chipping
and
trenching
of
high-grade
material
associated
with
a
NW-SE
trending
fault
breccias.
Based
on
the
success
of
the
2010
program,
Avannaa
undertook
a
much
larger
regional
reconnaissance
program
in
2011.
This
program
involved
a
heli-supported
geochemical
sampling
program
over
a
large
area
designed
to
test
the
copper
prospectivity
of
various
stratigraphic
positions,
as
well
as
extending
the
length
of
the
'Discovery
Zone'
identified
in
2010.
Both
aspects
of
this
program
were
successful
in
that
the
Discovery
Zone
was
shown
to
have
a
minimum
strike
length
of
2km
before
disappearing
undercover;
and
that
certain
stratigraphic
horizons
show
copper
anomalism
over
a
significant
lateral
extent.
However,
much
of
the
extended
area
explored
by
Avannaa
was
located
to
the
southeast
of
the
ARC
and
is
now
located
in
a
Government-mandated
no-go
zone
for
mineral
exploration.
Geology ARC contains a sequence of Mesoproterozoic-aged
sediments sandstones belonging to the Independence
Fjord Basin that have been intruded by highly-altered
dolerites, and overlain by 1.2km of Mesoproterozoic-aged
flood basalts ('Zig-Zag Fm' basalts). In turn,
the basalts are overlain by 1.1km of Neoproterozoic-aged
(1,000M to 541M years ago) clastic and carbonate
sediments belonging to the Hagen Fjord Group.
The lower portion of the Hagen Fjord Group is
dominated by sandstones and siltstones, and the
upper part by limestone and dolomites. Based
on stream sediment samples, the iron oxide minerals
switch from magnetite to the east of ARC, to
haematite within ARC, which reflects a change
in fluid oxidation state (from reduced to oxidised).
Fluid flow is from east to west which implies
that oxidation is a component of the copper dropping
out of solution. The oxidation of a reduced fluid
is consistent with the chemistry required to
form native copper such as that observed in ARC.
The metamorphic grade of the Zig-Zag Fm basalts
is of the zeolite facies, and the Hagen Fjord
Group sediments show lower grade metamorphism.
There is adequate preservation aside from mechanical
erosion.
Commercially interesting copper mineralisation
occurs in both the basalts and Hagen Fjord Group
sediments. The basalts are known to contain in
situ native copper, and native copper is found
extensively in the surrounding drainage systems.
Significantly, the native copper specimens recovered
by Avannaa in 2010 weigh up to 1kg. Greenfields
considers that the age, setting and mineral composition
makes the Zig-Zag Fm copper analogous to the
copper deposits of the Michigan Upper (Keweenaw)
Peninsula, and a primary source of copper for
the anomalies reported in the overlying sediments.
The fault breccias that transect the basalts
and Neoproterozoic sediments are interpreted
by the Company to represent fluid pathways as
there are zones of intense potassium alteration
within the surrounding quartz dominated sedimentary
rocks. These breccias, which are up to 25m wide,
show copper mineralisation. The chalcocite and
chalcopyrite copper-bearing minerals are significant
as they demonstrate that sulphur has been added
into a previously sulphur-undersaturated system.
A source of sulphur is generally considered an
important factor in the sediment-hosted copper
'deposit model'. Other important components of
the deposit model are also reported, including
pseudomorphed gypsum (a source of sulphur, and
copper mobilising salts), hydrogeologic seals,
and contrasting oxidation states. Copper sulphides
occur in the predicted geological lithological
settings. The highest copper grades are close
to geophysical gravity, magnetic and electromagnetic
anomalies. The 640 km(2) area of geophysical
and geochemical anomalism is dubbed the Minik
Anomaly (or 'Singularity' in the supporting Technical
Assessment Report)
The age of the known mineralisation concerns
at least two episodes. The Company identifies
the Elzevirian Orogeny (c. 1,250Ma) as the likely
event associated with the native copper mineralisation
in the basalts. However, the Neoproterozoic-aged
sediment-hosted copper sulphides demonstrate
that there was a second mineralising event associated
with the waning Caledonian Orogeny (c. 390 to
380 Ma) The Elzevirian and Caledonian orogenies
have a similar orientation. The c. 385 maximum
age is supported by the absence of mineralisation
known to younger than the Silurian Period (443.8
Ma to 419.2 Ma). The Silurian is associated with
the formation of the Citronen zinc deposit, currently
licenced by Ironbark Zinc Ltd. Greenfields considers
Citronen and ARC's copper sulphides to have formed
due to the same event. The known copper and zinc,
combined with a Greenfields interpreted geological
history, geochronology and hydrothermal fluid
temperatures, to define the +60,000km(2) Kiffaanngissuseq
Metallogenic Province.
The basal flows of the Zig-Zag Fm basalts show
a marked depletion in nickel. Such a depletion
suggests that the nickel may have been deposited
into sulphides and conceptually, as nickel sulphide
deposit. There has been no effective commercial
work on testing the nickel sulphide potential.
Pentlandite, a nickel-bearing sulphide, is observed
in at least one of the intrusions beneath the
basalts. There is no other evidence upon which
the nickel-sulphide prospectivity can be evaluated
at this stage.
An interactive Government portal that contains
the geology, and supporting reports can be accessed
via: http://www.greenmin.gl/home.seam . A fully
referenced Technical Assessment Report on ARC,
can be accessed at http://dx.doi.org/10.13140/RG.2.2.18610.84161
.
Drill No
hole drilling
information has
ever
occurred
within
the
ARC
or
in
the
surrounding
area.
Data aggregation All historical results presented in this release
methods are based on those published by third parties.
Greenfields has made a point of reporting the
weighted-averages and has avoided individual
high-grade results that may not be representative
of the mineral system. No bottom- or top-cuts
have been applied. No metal equivalent calculations
have been performed.
The
Relationship reported
between historical
mineralisation trenching
width and
and channelling
intercept results
lengths. are
presented
on
both
'as
is'
sub-perpendicular
intersection,
and
where
available
estimates
are
available,
true-width
basis.
Accompanying
statements
accompany
all
true-width
estimates.
No
sub-parallel
or
parallel
sample
intervals
were
collected
or
disclosed.
Diagrams All relevant maps are presented in the main body
of this document, with additional tables and
figures available in the Technical Assessment
Report.
Balanced Greenfields
reporting has
sourced
and
reasonably
presented
the
relevant
results,
where
available.
The
reader
is
cautioned
that
geochemical
rock
chip
samples,
by
their
nature,
are
not
representative
samples.
Geochemical
rock
chip
samples
are
erratically
collected,
lack
scale
and
design.
Geochemical
results
must
be
viewed
as
empirical
evidence
of
anomalism,
and
not
as
a
representative
indication
of
mineralisation.
Furthermore,
due
to
the
historical
nature
of
the
samples,
it
is
not
possible
at
the
time
of
publication,
to
perform
checks
and
balances
on
the
numbers
quoted
in
the
literature.
Other substantive In 1998, the Government conducted an airborne
exploration electromagnetic survey in the north of the ARC.
data The flight lines were carried out at an altitude
of 120m above ground on a 400m line spacing.
The geophysical data is freely available on the
Government portal. Sediment-hosted copper typically
does not respond to most geophysical methods
and as such, the data is not suited to direct-detection.
The only exception is 3D induced polarisation
methods that have not been conducted in ARC.
However, Greenfields identifies that the magnetic
anomaly is coincident with a gravity anomaly
and interprets this signature to represent an
iron-enriched hydrothermal footprint. Native
copper and copper sulphides occur within this
anomaly. No bulk density, geotechnical, metallurgical,
rock characterisation, or groundwater analysis
has been performed. Greenfields is unaware of
any deleterious or contaminating substances associated
with the known mineralisation.
Further Despite
work the
highly
encouraging
results
and
strong
indications
of
a
large
mineral
system,
the
ARC
is
at
an
early
stage
of
exploration.
Greenfields
has
tightly
constrained
the
main
mineralising
events,
but
currently
only
2D
data
are
available.
Obtaining
3D
data
down
to
the
basement
of
the
basins
will
help
in
modelling
the
movement
of
metal
rich
fluids.
Passive
seismic
is
identified
as
a
low-cost
method
for
acquiring
deep,
broad
3D
data.
This
method
required
around
30
days
of
collection,
during
which
geochemical
sampling
and
site
visits
can
occur.
In
areas
of
known
anomalism,
such
as
the
Discovery
Zone,
a
3D
induced
polarisation
survey
is
recommended.
The
program
is
intended
to
provide
enough
contextual
information
to
build
a
3D
model,
with
higher-resolution
data
available
over
the
Discovery
Zone.
It
is
also
recommended
that
geochemical
in
situ
sampling
be
performed.
Before
a
field
program
satellite
data
acquisition
and
historical
sample
analysis
should
be
conducted.
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 rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQUPGAGUUPGUWQ
(END) Dow Jones Newswires
October 06, 2021 02:00 ET (06:00 GMT)
Prairie Mining (LSE:PDZ)
Historical Stock Chart
From Oct 2024 to Nov 2024
Prairie Mining (LSE:PDZ)
Historical Stock Chart
From Nov 2023 to Nov 2024
