major tin anomalies identified at the … · asx announcement 5 | po box 637 west perth wa 6872 |...
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1 | PO Box 637 West Perth WA 6872 | www.montominerals.com |
ASX: MOO
Level 1 33 Ord Street Tel: + 61 8 9420 9300 West Perth 6005 WA Fax: + 61 8 9420 9399
12 November 2012
MAJOR TIN ANOMALIES IDENTIFIED AT THE
HERBERTON PROJECT
Highlights
Two large 1,600m x 500m high grade tin anomalies identified in soils with values up
to 0.39% tin in an area not previously recognised as hosting significant hard rock tin
mineralisation
Additional soil anomaly extending 1km north of the Mt Tin mine – waste rock dump
sample grading 4.64% tin
Identification of the anomalies represents early success from the Company’s major
188km2 regional soil sampling programme which is only 15% complete - first such
regional programme undertaken in the rich Herberton Tin Field
Monto Minerals Limited (Monto or the Company) has completed approximately 15% of the 188km2
regional soil geochemical survey at the Herberton Tin Project announced on 2 October 2012. The soil
geochemical survey represents the first time a large systematic exploration programme has been
undertaken in the area.
To date, approximately 2,900 soil samples have been collected on 200m spaced lines at 50m intervals
including coverage of the entire Mount Misery Exploration Permit for Minerals (EPM 14743) for which
Monto has an option to purchase 100% of the 20km2 EPM for $100,000.
Monto has identified two large 1,600m x 500m parallel tin in soil anomalies, known as the Scandinavian
anomaly and Carney’s anomaly, in an area previously not recognized for hard rock tin mineralisation. Tin
values in soil across the anomalies are typically high, ranging up to 0.39% Sn, with the majority of
anomalous tin results located across topographic highs including ridges and upslope areas.
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Geological mapping and rock chip sampling across the anomalous areas has identified greisenised
granites and related quartz veining on a predominantly north-south orientation. Geological mapping and
reconnaissance of the anomalous area is largely complete, with the first two batches of rock chip samples
already dispatched to the laboratory. Results are expected in the coming weeks.
Soil geochemical sampling across the former Western Mining Corporation (WMC) Mount Tin mine, east of
the Carney’s and Scandinavian anomalies, has revealed a further strong tin in soil anomaly extending
approximately 1km north from the Mount Tin mine.
Recent laboratory analysis of samples collected from the Mount Tin waste rock dump has revealed high
tin grades including 4.64% Sn, 2.34% Sn and 1.33% Sn. All waste rock dump samples collected are
identified as heavily albitized granite greisen.
Soil samples collected during the programme have been analysed by hand-held XRF, saving considerable
time and expense on analytical costs.
Managing Director James Allchurch commented “Work completed to date has identified a large
anomalous area not previously recognised as hosting significant hard-rock tin mineralisation. The high tin
values as compared to background concentrations and areal extent of the anomalies reinforces the value
of the large regional soil programme currently underway and represents a compelling target where further
rock chip sampling and geological mapping is underway with a view to potential drill targeting.”
Contact Information:
James Allchurch - +61 8 9420 9300
www.montominerals.com
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Figure 1: Soil Geochemical Sampling Survey Plan – area in red completed
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Figure 2: Soil Geochemical Anomalies - Tin
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ASX Announcement
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Mount Misery Prospect Summary and Option Agreement
In November 2011 Monto announced it had signed two option agreements to purchase the Great Southern and Mount Misery tin mining properties, both contiguous with Monto’s existing tenements. The Mount Misery prospect (incorporating the Mount Tin Mining Lease) comprises several mines most recently worked by Western Mining Corporation (WMC) in the early 1980s. The agreement provides an exclusive option over the property for a period of two years (commencing November 2011). Details of the transaction are outlined below:
Mining Property Option Fee
100% Acquisition
Decision to Mine
Production Royalty+
Mount Misery $15,000* $100,000 $150,000 $1.10
* - Paid November 2011 +
- $1.10/t of ore from the mining properties processed by, or on behalf of, Monto (indexed to CPI after production commences)
Location of Mining Properties subject to Option Agreements
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The Mount Misery property comprises both EPM 14743, which has an area of approximately 20km2, and
ML 20365 which has an area of 4ha and is centred on the former Mount Tin mine. EPM 14743 is contiguous with Monto’s existing EPM holdings. Significant prospects within the Mount Misery property which have been subjected to small scale mining and exploration work include the Morning Cloud, Landmark, Murphy’s Luck (100m south of Mount Tin) and Day Dawn prospects. Tin mineralisation, primarily in the form of coarse cassiterite, occurs within altered granites in both disseminated greisen zones and steeply plunging high-grade structurally controlled quartz veins. A characteristic feature of the mineralisation is its association with albitization of the granitic host rocks, with the alteration apparently controlled by major lode structures. Mount Misery is composed of over five underground and open pit workings which produced coarse grained cassiterite processed by simple gravity extraction methods with recoveries of approximately 80%. The area was subjected to intense exploration by WMC over a six year period commencing in 1975. Over 200 diamond and percussion holes were drilled on the property totalling over 4,800m. Several significant tin intersections were recorded at shallow depths as demonstrated in the following table.
Hole ID Drilling Method
Prospect From (m)
To (m)
Total (m)
Sn (%)
ID101 Diamond Mount Tin 53.40 80.85 27.45 0.5
ID106 Diamond Murphy’s Luck
29.05 59.10 30.05 0.77
(includes) 10.65 1.3
ID111 Diamond Mount Tin 76.50 89.90 13.40 0.63
(includes) 4.00 1.75
ID116 Diamond Morning Cloud
30.60 43.50 12.90 0.85
(includes) 3.65 1.78
IP12 Percussion Murphy’s Luck
14.00 32.00 18.00 0.78
Mount Misery WMC Historical Drilling Results Based on the results of the exploration programme, WMC commenced a bulk sampling operation at the Mount Tin deposit which first involved the excavation of a pit and then the sinking of a 30m exploration shaft and the development of two underground levels over a strike length of approximately 140m. The bulk sampling operation resolved a number of issues for WMC with respect to identifying the precise controls on tin mineralisation and the associated spatial grade variability. Through the bulk sampling operation, WMC identified target mineralisation
1 at Mount Tin of between
100,000t and 140,000t of mineable ore at a grade of 0.4% - 0.6% Sn to a depth of 100m. WMC used a cut-off grade of 0.2% Sn and, through extensive testing, demonstrated a recovery of approximately 80%. Exploration reports indicate significant potential for the identification of additional mineralised zones similar to that outlined at Mount Tin. The Morning Cloud, Landmark, Murphy’s Luck and Day Dawn prospects are located within 400m of Mount Tin and all represent significant targets. Furthermore, the tin prospective granite unit covers a large portion of the 20km
2 Mount Misery EPM and
contains a number of tin anomalies identified through historical small scale mining. The area is highly prospective and, outside the area intensively explored by WMC, very little exploration work has been conducted.
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ASX Announcement
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Monto Minerals Contact Information: James Allchurch - +61 (0)419 903 011 www.montominerals.com
Competent Persons Statement
The information in this report which relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Mr James Allchurch, a Director, who is a Member of the Australian Institute of Geoscientists.
Mr Allchurch 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 2004
Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves’ (The
JORC Code). Mr Allchurch consents to the inclusion in this announcement of the statements based on this
information in the form and context in which it appears.
1 The Company has target mineralisation but it does not comply with the JORC Code guidelines for the reporting of identified mineral resources and ore reserves. Therefore this
mineralisation is considered to be an Exploration Target estimate. The Company plans to undertake further work to enable the estimates to become JORC Code compliant. On
this basis, the potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain
if further exploration will result in the determination of a Mineral Resource.
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