ASX Release ASX code: MAU
10 July 2017
Level 1 44A Kings Park Road
PO Box 1388
West Perth WA 6872 Telephone 08 9226 1777 www.magres.com.au
ABN 34 121 370 232
6KM OF GOLD GEOCHEMICAL TARGETS IDENTIFIED AT MERTONDALE
Mertondale
Magnetic Resources has carried out reconnaissance shallow geochemical drilling on several target areas within the 81sq.km exploration licence E37/1258 at Mertondale, 20km NW the Cardinia Gold Project (193,000oz) and only 5km west of the Mertondale Deposit (395,000oz). The drilling forms part of a programme to test numerous target areas identified from interpretation of detailed 100m spaced aeromagnetic image data on its extensive tenement holdings in the Leonora area. Field work at Mertondale indicates that hardpan (cemented colluvium) cover is widespread and likely to render historical soil surface sampling ineffective. Sampling below the hardpan cover is likely to be much more effective in testing for the presence of gold mineralisation. Shallow RAB drilling (1 to 5m depth) at 50m intervals along scout lines 400m apart was carried out over 22 target areas with anomalous gold and pathfinder elements being identified at 7 of these targets as summarised in Figure 1.
Figure 1 Shallow RAB geochemical targets superimposed on aeromagnetics
Anomalous gold values in highly leached saprolite below hardpan range from 10 to 35ppb compared to background values of 1 to 4ppb. Significantly, many of the anomalous gold values are supported in the same or adjacent holes by anomalous pathfinder elements such as silver, bismuth, arsenic, molybdenum and tungsten which indicate coherent trends around 1km of strike, open along strike, and with potential to extend over an aggregate strike length of six kilometres.
Magnetic is encouraged by these initial results from an area in a promising geological setting for gold where previous exploration is likely to have been ineffective and where very little historical drilling has been carried out. A programme of follow up geochemical drilling is being planned, to test the extent of the anomalous zones and to identify targets for deeper drilling.
Magnetic Resources Managing Director commented, "we are very encouraged by these large size gold and multi-element geochemical targets identified to date, totaling 6km in length, which are prospective for large size deposits. These extensive gold targets are found in an emerging gold region where Kin Mining have defined a high-grade deposit at Cardinia and are also working on the adjacent Mertondale Deposit, and we look forward to defining these anomalies and following them up with AC drilling. Note that all previous soil sampling was ineffective and opens up the prospectivity of all of the Mertondale and Christmas Well tenements."
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For more information on the company visit www.magres.com.au
George Sakalidis Managing Director Phone (08) 9226 1777
Mobile 0411 640 337
Email george@magres.com.au
The information in this report is based on information compiled by George Sakalidis BSc (Hons), who is a member of the Australasian Institute of Mining and Metallurgy. George Sakalidis is a Director of Magnetic Resources NL. George Sakalidis has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. George Sakalidis consents to the inclusion of this information in the form and context in which it appears in this report.
JORC Code, 2012 Edition - Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria
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JORC Code explanation
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Commentary
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Sampling techniques
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Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the Public Report.
In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
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Drilling techniques
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Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
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Drill sample recovery
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Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
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Logging
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Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
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Sub-sampling techniques and sample preparation
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If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
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Criteria
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JORC Code explanation
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Commentary
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For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material being sampled.
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Quality of assay data and laboratory tests
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The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
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Samples were dispatched to MinAnalytical laboratory in Perth where the samples were pulverized and a 10g sub sample analysed using an aqua regia digest and determination of Au (lower limit of detection 1ppb), Ag, As, Bi, Cu, Mo, Ni, Pb, Sb, Te, W and Zn by ICPMS. Aqua regia will dissolve most oxides, sulphides and carbonates but will not totally digest refractory and silicate minerals. In a weathered, oxidized environment aqua regia digestion is considered adequate for exploration purposes. QA/QC measures included repeat analyses and the use of internal lab standards which indicated acceptable levels of accuracy and precision although in rare cases there is some indication of the presence of coarse gold.
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Verification of sampling and assaying
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The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
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Location of data points
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Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
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Data spacing and distribution
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Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whether sample compositing has been applied.
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Orientation of data in
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