ABN 76 149 070 066
PROSPECTUS
For an offer of up to 21,000,000 Shares at an issue price of $0.20 per Share to raise up to $4,200,000.
Oversubscriptions of up to a further 9,000,000 Shares at an issue price of $0.20 each to raise up to an additional $1,800,000 may be accepted.
Lead Manager to the Offer
Otsana Pty Ltd (ACN 145 168 216) is a Corporate Authorised Representative of International Capital Markets Pty Ltd (ACN 123 289 109) Australian Financial Service Licence No. 335692.
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IMPORTANT INFORMATION
This is an important document that should be read in its entirety. If you do not understand it you should consult your professional advisers without delay.
The Shares offered by this Prospectus should be considered highly speculative.
1. CORPORATE DIRECTORY
Registered Office Legal Advisors to the Company Steinepreis Paganin 36 Outram Street Level 4, The Read Buildings West Perth WA 6005 16 Milligan Street Perth WA 6000 Telephone: + 61 8 6336 6400 Facsimile: +61 8 6336 6420 Ginting & Reksodiputro in association with Allen & Overy LLP Email: [email protected] The Energy Building, 15th Floor Website: http://www.cokeresources.com Sudirman Central Business District Jl Jend Sudirman Kav 52-53 Jakarta 12190 Indonesia
Directors Oentoeng Suria & Partners Level 37, Equity Tower James Carter Sudirman Central Business District Non- Executive Chairman Jalan Jendral SudirmanKav 52-53 Jakarta Selatan 12190 Indonesia Claude Strnadica Managing Director Auditor
Leslie Pereira PricewaterhouseCoopers* Non-Executive Director 125 St Georges Terrace Perth WA 6000 Rafael Nitiyudo Non-Executive Director Investigating Accountant
Bentleys Audit & Corporate (WA) Pty Ltd Level 1, 12 Kings Park Road Company Secretary West Perth WA 6005
Simon Penney Independent Geologist
Salva Resources Pty Ltd The Garden Centre, 3rd Floor, Unit 18 Proposed ASX Code Jl Raya Cilandak KKO Jakarta Selatan 12560, Indonesia CKE Share Registry
Advanced Share Registry Limited* Lead Manager 150 Stirling Highway Nedlands WA 6009 Otsana Pty Ltd 108 Outram Street Telephone: +61 8 9389 8033
For personal use only use personal For West Perth WA 6005 Facsimile: +61 8 9389 7871
* This entity is included for information purposes only. It has not been involved in the preparation of this Prospectus.
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CONTENTS
1. CORPORATE DIRECTORY ...... I 2. IMPORTANT NOTICE ...... 1 3. INVESTMENT OVERVIEW ...... 3 4. CHAIRMAN’S LETTER ...... 23 5. DETAILS OF THE OFFER ...... 24 6. COMPANY AND PROJECT OVERVIEW ...... 26 7. RISK FACTORS ...... 29 8. INDEPENDENT GEOLOGIST’S REPORT – CRISTIAN COAL PROJECT ...... 34 9. INDEPENDENT GEOLOGIST’S REPORT – TALIWANG GOLD PROJECT ...... 86 10. INVESTIGATING ACCOUNTANT’S REPORT ...... 201 11. INDONESIAN SOLICITOR’S REPORT ON TITLE – CRISTIAN COAL PROJECT ...... 224 12. INDONESIAN SOLICITOR’S REPORT ON TITLE – TALIWANG GOLD PROJECT ...... 255 13. CORPORATE GOVERNANCE ...... 284 14. MATERIAL CONTRACTS ...... 294 15. ADDITIONAL INFORMATION ...... 299 16. DIRECTORS’ AUTHORISATION ...... 308 17. GLOSSARY ...... 309
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2. IMPORTANT NOTICE
This Prospectus is dated 21 December 2012 and was lodged with the ASIC on that date. The ASIC and its officers take no responsibility for the contents of this Prospectus or the merits of the investment to which this Prospectus relates.
No Shares may be issued on the basis of this Prospectus later than 13 months after the date of this Prospectus.
No person is authorised to give information or to make any representation in connection with this Prospectus, which is not contained in the Prospectus. Any information or representation not so contained may not be relied on as having been authorised by the Company in connection with this Prospectus.
It is important that you read this Prospectus in its entirety and seek professional advice where necessary. The Shares the subject of this Prospectus should be considered highly speculative.
2.1 Exposure Period
This Prospectus will be circulated during the Exposure Period. The purpose of the Exposure Period is to enable this Prospectus to be examined by market participants prior to the raising of funds. You should be aware that this examination may result in the identification of deficiencies in this Prospectus and, in those circumstances, any application that has been received may need to be dealt with in accordance with Section 724 of the Corporations Act. Applications for Shares under this Prospectus will not be processed by the Company until after the expiry of the Exposure Period. No preference will be conferred on applications lodged prior to the expiry of the Exposure Period.
2.2 Web Site – Electronic Prospectus
A copy of this Prospectus can be downloaded from the website of the Company at www.cokeresources.com. If you are accessing the electronic version of this Prospectus for the purpose of making an investment in the Company, you must be an Australian resident and must only access this Prospectus from within Australia.
The Corporations Act prohibits any person passing onto another person an Application Form unless it is attached to a hard copy of this Prospectus or it accompanies the complete and unaltered version of this Prospectus. You may obtain a hard copy of this Prospectus free of charge by contacting the Company.
The Company reserves the right not to accept an Application Form from a person if it has reason to believe that when that person was given access to the electronic Application Form, it was not provided together with the electronic Prospectus and any relevant supplementary or replacement prospectus or any
of those documents were incomplete or altered. For personal use only use personal For 2.3 Website
No document or information included on our website is incorporated by reference into this Prospectus.
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2.4 Forwarding-Looking Statements
This Prospectus contains forward-looking statements which are identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties.
These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this Prospectus, are expected to take place.
Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of our Company, the Directors and our management.
We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this prospectus will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.
We have no intention to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this prospectus, except where required by law.
These forward looking statements are subject to various risk factors that could cause our actual results to differ materially from the results expressed or anticipated in these statements. These risk factors are set out in Section 7 of this Prospectus.
2.5 Photographs and Diagrams
Photographs used in this Prospectus which do not have descriptions are for illustration only and should not be interpreted to mean that any person shown endorses the Prospectus or its contents or that the assets shown in them are owned by the Company. Diagrams used in this prospectus are illustrative only and may not be drawn to scale.
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3. INVESTMENT OVERVIEW
This section is a summary only and not intended to provide full information for investors intending to apply for Shares offered pursuant to this Prospectus. This Prospectus should be read and considered in its entirety.
3.1 The Company
Coke Resources Limited (Coke Resources or the Company) was incorporated on 1 February 2011 for the primary purpose of investigating opportunities in the Indonesian resources sector with a view of investment or acquisition to progress to a successful ASX listing. The Company is pleased to confirm that it has the option to acquire an indirect majority interest in a coal exploration company, PT Cristian Eka Pratama (Cristian or PT CEP), and has entered into a conditional sale and purchase agreement to acquire a majority stake in the Taliwang Gold Project (Taliwang Gold Project) in Sumbawa, Indonesia. The Taliwang Gold Project acquisition is proposed to occur by the Company’s purchase of 100% of Indotan Sumbawa Pte Ltd (Indotan).
3.2 Business Model
Coke Resources is a speculative exploration company and following the receipt of conditional approval to be admitted to the Official List will exercise its option to acquire an indirect 97.03% interest in PT CEP which holds an Izin Usaha Pertambangan Eksplorasi (an Indonesian Exploration Mining Business License) (IUP Exploration) containing the Cristian thermal coal project in East Kalimantan, Indonesia (Cristian Coal Project), covering 5,273 hectares in a recognised coal province.
The Company also proposes to acquire (subject to satisfaction of the conditions precedent described at Section 14.2), through the acquisition of Indotan, a 75% interest in PT Indotan Sumbawa Barat which holds an IUP Exploration, permitting exploration and a feasibility study for gold only, containing the Taliwang Gold Project covering 31,204 hectares in a precious metals province.
The Company is mindful of the requirement to satisfy local communities by providing work, education and training and to help the local communities develop and benefit from the minerals that they have in their immediate vicinity.
This relationship between the Company and the local communities is vital to the projects developing to their full potential.
Coke Resources has developed strong relationships with local partners that have access to a pipeline of concessions as well as the political connections that are required to enable the Company to work in Indonesia and develop these projects. Following listing on ASX, the Company intends to investigate and conduct due diligence on other Indonesian based resource projects with the aim to quickly expand its asset portfolio.
For personal use only use personal For A summary of the Projects are set out in Section 6 of this Prospectus and more detailed information is included in the Independent Geologist’s Reports in Sections 8 and 9 of this Prospectus and the Solicitors’ Reports on Tenements set out in Sections 11 and 12 of this Prospectus.
A summary of the terms of acquisition for both Projects is set out in Sections 14.1 to 14.4 of this Prospectus.
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3.3 The Objectives
The Company’s main objectives on completion of the Offer are:
to enable to the Company to list on ASX;
to explore and develop the Cristian Coal Project and the Taliwang Gold Project;
to identify and assess commercially attractive projects designed to increase Shareholder value; and
to provide working capital for the Company.
3.4 Key Investment Highlights
Coke Resources is an Australian incorporated exploration company established primarily to acquire, evaluate and develop mineral projects with a focus on Indonesian mineral assets.
The Cristian Coal Project, held by PT CEP, lies within IUP Exploration No. 545/K.013L/2010 and covers over 5,000 hectares in a recognised coal province.
Coke Resources has also negotiated the acquisition of a 75% interest in the Taliwang Gold Project IUP Exploration No. 06ISB-KSB10, which interest is currently ultimately owned and operated by Southern Arc Minerals Inc. (TSX-V: SA) (Southern Arc) and which is a prospective gold concession in Sumbawa, Indonesia.
The Taliwang Gold Project is located adjacent to Newmont’s Batu Hijau mine.
There is considerable data already available for the Taliwang Gold Project which should assist the Coke Resources geological team in fast tracking the exploration program on the project.
The Board has a broad range of experience, particularly working within Indonesia and their strong business and political contacts will assist in Coke Resource’s future activities.
3.5 Key Risks
The business, assets and operations of the Company are subject to certain risk factors that have the potential to influence the operating and financial performance of the Company in the future. These risks can impact on the value of an investment in the securities of the Company.
The Board aims to manage these risks by carefully planning its activities and
implementing risk control measures. Some of the risks are, however, highly For personal use only use personal For unpredictable and the extent to which they can effectively manage them is limited.
Set out below are specific risks that the Company is exposed to. Further risks associated with an investment in the Company are outlined in Section 7.
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Risk area Risks
International The Company is seeking to secure exploration and Operation mining projects based in Indonesia. Further, the Company’s proposed corporate structure described in Section 6.2 contains various entities incorporated in the foreign jurisdictions of Indonesia, Singapore and the Republic of Seychelles. Each such entity and jurisdiction carries risks arising from operating in those jurisdictions and counterparty risks arising from acquiring interests in such companies.
Indonesia is considered to be a developing country and, as such, subject to increased sovereign risk. These Indonesian operations are subject to a number of risks, including but not limited to:
(a) difficulties in enforcing agreements and collecting receivables through foreign local systems;
(b) potential difficulties in protecting rights and interests in assets;
(c) difficulties in securing costs for transportation and shipping;
(d) restrictive governmental actions, such as foreign investment, imposition of trade quotas, tariffs and other taxes;
(e) increased risks associated with conducting due diligence on the status and activities in Indonesia of the Indonesian entities listed in Section 6.2, due to the absence of an effective registry of companies or corporate information in Indonesia; and
(f) the risk of the Company’s financial loss, joint venture risks and other risks arising due to Indonesian laws which require future divestment of part of the Company’s interest in Cristian and PT Indotan Sumbawa Barat as described in Section 11.
(g) Any of these factors could materially and adversely affect the Company’s business, results of operations and financial condition.
For personal use only use personal For Contractual Risks The Company proposes to acquire its interests in the Projects pursuant to agreements where settlement is scheduled to occur in the future (prior to listing on ASX) (refer to Section 14).
In order for the Company to be able to achieve its objectives, the Company is reliant on the parties to those agreements and registered holders of the
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Tenements to respectively comply with their contractual obligations under the agreements and to maintain the Tenements in full force and effect, free from any liability to forfeiture or non-renewal.
Where the agreements are breached or the registered holder of the Tenements fails to extend or renew them or fails to comply with conditions of the Tenements which results in loss of title to the Tenements, the Company would lose its opportunity to acquire interests in the Projects proposed to be acquired pursuant to the agreements and there can be no guarantee that a legal remedy will be available or ultimately granted to the Company. The Company has no current reason to believe that the parties to the agreements will not comply with them or the registered holders of the Tenements will not meet and satisfy their obligations to maintain them in good standing.
Additionally, the agreement for the Company to acquire Indotan terminates automatically if the conditions precedent set out in that agreement are not satisfied and the Company does not receive written conditional approval from the ASX for its Shares to be quoted on ASX’s Official List by 31 March 2013. The Company cannot guarantee that the conditions precedent will be satisfied within the specified time frame. Consequently, there is a risk that the Company may be unable to acquire an interest in Indotan and the Taliwang Gold Project (refer also to Sections 5.2 and 5.4).
Domestic Indonesian Regulation No. 7 of 2012 of the Minister of processing & Energy and Mineral Resources issued 6 February 2012 refining obligation prohibits the export of unprocessed raw materials/ore (DP&RO) by IUP/IUPK holders (refer to Section 11 for definitions of those terms). Thus, holders of IUP/IUPK Production Operation are obliged to carry out processing and refining within the country.
The DP&RO is applicable to IUP Production Operation licenses only. As the Tenements are currently IUPs Exploration, the DP&RO does not currently apply. Should the Company later achieve exploration success (warranting a mining operation) through, amongst other things, the granting of an IUP Production Operation, the DP&RO will take effect. In the event that the Company achieves exploration success on the Tenements or other projects in the future, there is a potential risk to the For personal use only use personal For viability of a mining operation due to these economic constraints.
Domestic supply In January 2009, the Indonesian Government enacted obligation Ministerial Regulation No. 34 of 2009 regarding Prioritisation of Domestic Mineral and Coal Supplies (Regulation No. 34). Regulation No. 34 requires producers of coal and minerals in Indonesia to allocate
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a proportion of their annual production output to the domestic Indonesian market. The annual production output required for the domestic Indonesian market is set by the Minister of Energy and Mineral Resources (Minister) based on the estimate of annual demand proposed by potential domestic buyers in the previous year. Further, the price of metals and coal allocated for the domestic market will refer to a prescribed mineral benchmark price and a prescribed coal benchmark price.
In the event that the Company reaches production on either Project, or any other project, in the future (which cannot yet be ascertained), there is a potential risk to the Company’s potential future cash flows from that production. Refer to Section 11 for more information.
Sovereign risk The Company’s activities are subject to the risks associated in operating in a foreign country. These risks may include economic, social or political instability or change, hyperinflation, currency non-convertibility or instability and changes of law affecting foreign ownership, government participation, taxation, working conditions, rates of exchange control, exploration licensing, export duties, repatriation of income or return of capital, environmental protection, mine safety, labour relations as well as government control over mineral properties or government regulations that require the employment of local staff or contractors or require other benefits to be provided to local residents.
The risk of terrorism activities in Indonesia and the resulting impact upon any future projects is also a relevant risk factor.
Status of The IUP Exploration containing the Cristian Coal Project Tenements and the IUP Exploration containing the Taliwang Gold Project expire on 8 January 2013 and 9 July 2016 respectively. While the Company is confident renewals will be obtained, the Company cannot guarantee that those tenements will be renewed beyond their current expiry date and there is a material risk that, in the event the holders of the Tenements are unable to renew these granted tenements beyond their current expiry date, the Company’s potential interest proposed to be acquired in those Projects will be relinquished. Further risks exist of third parties’ interests affecting the IUPs Exploration, for example due to their overlap with other mining tenements and forestry or plantation concession For personal use only use personal For areas and the risk that the IUPs Exploration may be revoked for failure to comply with conditions of their grant (refer to Sections 11 and 12).
Tenement The Company cannot guarantee additional applications and applications for tenements or any tenement renewal license renewal made by the Company, or any of its subsidiaries will ultimately be granted, in whole or in part. Further the
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Company cannot guarantee that renewals of valid tenements will be granted on a timely basis, or at all. PT Indotan Sumbawa Barat and Cristian have yet to receive regulatory and environmental approval to convert either IUP Exploration into an IUP Production Operation. There is a risk that these approvals may not be obtained, in which case the Company could lose any potential interest proposed to be acquired in those Tenements.
Failure to satisfy Interests in tenements in Indonesia are governed by tenement regulations, some of which are described at Section 11 commitments below. Each IUP Exploration is for a specific term and carries with it annual expenditure and reporting commitments, as well as other conditions requiring compliance. Consequently, the Company, through Cristian or PT Indotan Sumbawa Barat, could lose title to or its interest in tenements including each IUP Exploration if licence conditions are not met or if insufficient funds are available to meet expenditure commitments.
Mining rights Mining rights which are granted to Indonesian companies do not constitute a right to the land itself. A mining right holder must settle access to land with local land owners. To the extent that third parties have competing concession rights with respect to the land, agreement must be reached with the competing concession holders. There is no guarantee that successful settlement will be reached in this context.
Exploration and The business of coal and gold exploration, project production risks development, mining and production involves inherent risks. Success depends on the successful exploration, mining, appraisal, design and construction of efficient recovery and processing facilities, competent operational and managerial performance, and efficient distribution and marketing services. Exploration is a speculative endeavour and mining and production operations can be hampered by engineering difficulties, cost overruns, inconsistent recovery rates and other unforeseen events.
The outcome of the Company’s proposed subsidiaries’ potential exploration, project development, mining and production programs will affect the future performance of the Company and the price of its Shares.
Coal and gold In the event that the Company is successful in For personal use only use personal For marketing and developing its mining operations, the marketability of prices any coal or gold production will depend on the quality and tonnage demand from international and domestic markets. If the Company fails to secure contracts to sell any coal or gold, this may adversely affect the financial conditions and performance of the Company. The prices the Company receives for any coal or gold, are subject to market forces that are beyond the control of
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the Company. While the Company monitors the stability and trends of market prices closely and, where possible, proposes to negotiate agreements to reflect the movements in market prices and with the aim of establishing underlying profit margins, should the market prices for coal or gold fall to uneconomic levels, the financial performance of the Company will be materially adversely affected.
Labour Risk The Company’s operations may be adversely affected by labour disputes or changes in Indonesian labour laws. Significant labour disputes, work stoppages, increased employee expenses as a result of collective bargaining and the cost of compliance with labour laws could disrupt operations and affect any potential future profitability of the Company’s business.
Dilution risk and New investors who subscribe under the Offer will own a ability to affect relatively small ownership of the Company, as described the Company’s in Section 3.11 below. These new investors will be unlikely direction to be able to significantly affect the Company’s direction by exercising their voting rights in the usual manner. On completion of the Offer, there will be 7,500,000 Options on issue. If these Options are converted into Shares there will be a dilution of the Company’s existing Shareholders. However, each Option has an exercise price of $0.20 which means that the Company will receive additional funds of $1,500,000 upon exercise of the Options, if all existing Options are exercised.
Liquidity risk Shares to be issued under the Offer will comprise only a small percentage of the Company’s Shares. There is a consequential liquidity risk that potential investors may face as a significant portion of the Company’s existing Shares may be placed in escrow.
Operating risks The current and future operations of the Company and its proposed subsidiaries, including exploration, appraisal and possible production activities, may be affected by a range of factors, including:
(a) adverse geological conditions;
(b) limitations on activities due to seasonal weather patterns and cyclone activity;
(c) unanticipated operational and technical difficulties encountered in seismic survey, drilling
For personal use only use personal For and production activities;
(d) mechanical failure of operating plant and equipment;
(e) industrial and environmental accidents, industrial disputes and other force majeure events;
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(f) unavailability of aircraft or drilling equipment to undertake airborne electromagnetic and other geological and geophysical investigations;
(g) unexpected shortages or increases in the costs of labour, consumables, spare parts, plant and equipment; and
(h) inability to obtain necessary consents or approvals.
Indonesia, from time to time, experiences economic, social and political volatility. As a result, the Company’s operations may be impacted by currency fluctuations, political reforms, changes in Indonesian government policies and procedures, civil unrest, social and religious conflict and deteriorating economic conditions. The likelihood of any of these changes, and their possible effects, if any, cannot be determined by the Company with any certainty at the present time, but they may include disruption, increased costs and, in some cases, total inability to establish or to continue to operate mining exploration or development activities.
Foreign Exchange If the Company’s proposed subsidiaries’ Projects are Rate Risk feasible, which has not been established, any revenue received by the Company would likely be in Indonesian Rupiah (IDR) and/or US dollars (USD) derived from the sale of coal and/or gold and the Company’s operating expenses would be incurred principally in Indonesian Rupiah. Domestically within Indonesia the coal price may be set in Indonesian Rupiah or US dollars. Gold is generally sold throughout the world based principally on a US dollar price. Therefore, Australian dollar reported revenue will be directly impacted by movements in the IDR and US dollar coal price, the US dollar gold price and the IDR/AUD and USD/AUD exchange rates. Movements in the IDR/AUD and USD/AUD exchange rates and/or the IDR or US dollar coal price or US dollar gold price may adversely or beneficially affect the Company’s results or operations and cash flows.
Limited History The Company was only recently incorporated (1 February 2011) and has no operating history in coal or minerals exploration, development or mining and limited historical financial performance. No assurance can be given that the Company will achieve commercial viability through the successful exploration For personal use only use personal For and/or mining of the Taliwang Gold Project or Cristian Coal Project. Until the Company is able to realise value from its projects, it is likely to incur ongoing operating losses.
The above list of risk factors ought not to be taken as exhaustive of the risks faced by our Company and you should refer to the additional risk factors in
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Section 7 of this Prospectus before deciding whether to apply for Shares pursuant to this Prospectus.
3.6 The Offer
The Company invites applications for 21,000,000 Shares at an issue price of $0.20 per Share to raise $4,200,000 (Minimum Subscription).
Oversubscriptions of up to a further 9,000,000 Shares at an issue price of $0.20 per Share to raise an additional $1,800,000 may be accepted (together with the Minimum Subscription, the Maximum Subscription).
The key information relating to the Offer and references to further details are set out below.
3.7 Indicative timetable*
Lodgement of Prospectus with the ASIC 21 December 2012
Opening Date 8 January 2013
Closing Date 15 February 2013
Despatch of holding statements 22 February 2013
Expected date for quotation on ASX 28 February 2013
* The above dates are indicative only and may change without notice. The Company reserves the right to extend the Closing Date or close the Offer early without notice.
3.8 Purpose of the Offer
The purpose of the Offer is to facilitate an application by the Company for admission of the Company to the official list of ASX and position the Company to seek to achieve the objectives set out above in Section 3.3.
3.9 Key Information
Where to Topic Summary find more information
Who is Coke Coke Resources Ltd was incorporated on 1 Section 6 Resources Ltd? February 2011 and was formed with the aim of finding, exploring and developing mineral projects with a focus on Indonesian mineral assets.
What is being 21 million new fully paid ordinary Shares are being Section 5 offered? offered to the general public to raise up to $4.2 million (with up to $1.8 million in oversubscriptions).
For personal use only use personal For What is the The Offer price is $0.20 per Share. Section 5.1 Offer price?
What are the The key dates of the Offer are as per the Indicative Section 3.7 key dates of Timetable. the Offer?
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How do I apply Complete and return the Application Form together Application for Shares? with payment in full for the quantity of Shares being applied for.
Applications must also be for a minimum of 10,000 Shares and thereafter in multiples of 1,000 Shares.
Will the Application for Official Quotation by ASX of the Section 5.4 securities be Shares offered pursuant to this Prospectus will be listed? made within 7 days after the date of this Prospectus.
How will Shares The Directors will determine the allottees of all the Section 5.5 be allocated? Shares in their sole discretion.
Where will the No action has been taken to register or qualify the Section 5.6 Offer be Shares, or, otherwise permit a public offering of the made? Shares the subject of this Prospectus, in any jurisdiction outside Australia. Applicants who are resident in countries other than Australia should consult their professional advisers as to whether any governmental or other consents are required or whether any other formalities need to be considered and followed.
CHESS & Issuer The Company will apply to participate in CHESS, for Section Sponsorship those investors who have, or wish to have, a 15.12 sponsoring stockbroker. Investors who do not wish to participate through CHESS will be issuer sponsored by the Company.
How can I By reading this Prospectus in its entirety. obtain further information? By contacting the Company on + 61 8 6336 6400.
For personal use only use personal For
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3.10 Use of Funds
The Company intends to apply funds raised from the Offer, together with existing cash reserves, over the first two years following admission of the Company to the Official List as follows:
Funds available Minimum Subscription $ Percentage of Funds Existing cash reserves1 146,638 3.4% Funds raised from the Offer 4,200,000 96.6% Total 4,346,638 100.0% Year 1 Year 2 Total % Allocation of funds $ $ $ Expenses of the Offer2 380,932 - 380,932 8.8% Exploration expenditure3 830,000 820,000 1,650,000 38.0% Project acquisition4 867,336 - 867,336 20.0% Administration costs5 625,000 625,000 1,250,000 28.7% General working capital 99,185 99,185 198,370 4.5% Total 2,802,453 1,544,185 4,346,638 100.0%
For the purpose of calculations in this table, the Company has assumed an exchange rate of one Australian dollar is equal to 1.03766 U.S. dollars. Any cash held by Indotan or PBC after the Company’s proposed acquisitions of those entities will be applied towards general working capital (refer to Sections 10, 14.1 and 14.2).
1 Refer to the Investigating Accountant’s Report set out in Section 10 of this Prospectus for further details.
2 Refer to Section 15.8 of this Prospectus for further details.
3 Refer to the Independent Geologist’s Reports in Sections 8 and 9 of this Prospectus for further information on the planned exploration activities and expenditure budgets for the Company.
4 US $900,000 in total. Refer to Sections 14.2 and 14.4 for further details.
5 Administration costs and general working capital includes wages and superannuation of employees, consultants and directors, rent and outgoings, legal fees, ASX fees, insurance, share registry fees, travel expenses and other items of a general administrative nature which are not covered as expenses of the Offer in Section 15.8.
For personal use only use personal For In the event the Company raises more than the Minimum Subscription of $4,200,000, the additional funds raised will be first applied towards the increase in expenses of the Offer, followed by allocation towards exploration expenditure. On completion of the Offer and based on the Minimum Subscription of $4,200,000, the Board believes the Company will have sufficient working capital to achieve the objectives outlined in Section 3.3 of the Prospectus.
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The above table is a statement of current intentions as of the date of this Prospectus. As with any budget, intervening events, including exploration success or failure, and new circumstances have the potential to affect the manner in which the funds are ultimately applied. The Board reserves the right to alter the way funds are applied on this basis.
Funds available Maximum Subscription $ Percentage of Funds Existing cash reserves1 146,638 2.4% Funds raised from the Offer 6,000,000 97.6% Total 6,146,638 100.0% Year 1 Year 2 Total % Allocation of funds $ $ $ Expenses of the Offer2 473,932 - 473,932 7.7% Exploration expenditure3 1,648,000 1,820,000 3,468,000 56.4% Project acquisition4 867,336 - 867,336 14.1% Administration costs5 625,000 625,000 1,250,000 20.3% General working capital 43,685 43,685 87,370 1.5% Total 3,657,953 2,488,685 6,146,638 100.0%
For the purpose of calculations in this table, the Company has assumed an exchange rate of one Australian dollar is equal to 1.03766 U.S. dollars. Any cash held by Indotan or PBC after the Company’s proposed acquisitions of those entities will be applied towards general working capital (refer to Sections 10, 14.1 and 14.2).
1 Refer to the Investigating Accountant’s Report set out in Section 10 of this Prospectus for further details.
2 Refer to Section 15.8 of this Prospectus for further details.
3 Refer to the Independent Geologist’s Reports in Sections 8 and 9 of this Prospectus for further information on the planned exploration activities and expenditure budgets for the Company.
4 US $900,000 in total. Refer to Sections 14.2 and 14.4 for further details.
5 Administration costs and general working capital includes wages and superannuation of employees, consultants and directors, rent and outgoings, legal fees, ASX fees, insurance, share registry fees, travel expenses and other items of a general administrative nature which
are not covered as expenses of the Offer in Section 15.8. For personal use only use personal For
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3.11 Capital Structure
The capital structure of the Company following completion of the Offer (assuming Minimum Subscription) is summarised below1:
Shares2
Number Shares currently on issue3 51,200,000 Shares to be issued on acquisition of 97.03% of PT CEP4 90,000,000 Shares to be issued on acquisition of Indotan4 25,000,000 Shares to be issued pursuant to the Offer (Minimum 21,000,000 Subscription)5 Total Shares on completion of the Offer (Minimum 187,200,000 Subscription) 5
Options6
Number Options currently on issue7 7,500,000 Options to be issued pursuant to the Offer Nil Total Options on completion of the Offer 7,500,000
Total Shares on completion of the Offer (Maximum 203,700,000 Subscription) and assuming all Options are exercised
1 Refer to the Investigating Accountant’s Report set out in Section 10 of this Prospectus for further details.
2 The rights attaching to the Shares are summarised in Section 15.2 of this Prospectus.
3 The Shares currently on issue were issued as follows:
i. 25,000,000 Shares issued 1 February 2011 at an issue price of $0.001 on incorporation of the Company. The number was initially 27,500,000 Shares, but 2,500,000 Shares were bought back and cancelled by the Company on 22 March 2011.
ii. 5,400,000 Shares issued 30 June 2011 at an issue price of $0.05 each to seed capital investors in order to fund initial working capital requirements of the Company.
iii. 20,800,000 Shares issued 2 May 2012 at an issue price of $0.05 each to seed capital investors in order to fund listing costs and working capital requirements of the Company.
These Shares were issued at a discount to the issue price of the Shares offered
For personal use only use personal For pursuant to the Offer to reflect the increased risk associated with an investment in the Company at the time of foundation and issue of seed capital.
4 Refer to Section 14 of this Prospectus for details of the acquisitions.
5 Up to a further 9,000,000 Shares could be issued if oversubscriptions are accepted to reach the Maximum Subscription.
6 Each Option will be unquoted and is exercisable at $0.20 on or before 10 August 2015.
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7 The Options currently on issue were issued as follows:
i. 4,000,000 Options were issued to entities associated with the Directors (1,000,000 to each Director) on 10 August 2012. These Options were approved by Shareholders at a General Meeting held on 10 August 2012.
ii. 3,500,000 Options were issued to consultants on 10 August 2012, including 500,000 Options to the Company’s company secretary Simon Penney and 500,000 Options to Robert Andrew Jewson.
3.12 Substantial Shareholders
Those Shareholders holding 5% or more of the Shares on issue both as at the date of this Prospectus and on completion of the Offer (assuming Minimum Subscription and Maximum Subscription) are set out in the respective tables below.
As at the date of the Prospectus
% % (fully Shareholder Shares Options (undiluted) diluted) PT Sumber Energi1 15,000,000 Nil 29.3% 25.6% Carmine Lion Group Pty Ltd2 14,800,000 Nil 28.9% 25.2% Happy Lucky Golden Dragon 8,000,000 1,000,000 15.6% 15.3% Ltd3 Nannook Holdings Pty Ltd4 4,000,000 1,000,000 7.8% 8.5% PT Garuda Resources 4,000,000 1,000,000 7.8% 8.5%
1 An entity controlled by a group of Asian businessmen.
2 An entity controlled by Leslie Pereira and Rafael Nitiyudo being directors of the Company.
3 An entity controlled by Rafael Nitiyudo, a Director of the Company.
4 An entity controlled by Leslie Pereira, a Director of the Company.
On completion of the Offer (assuming no existing substantial Shareholder subscribes and receives additional Shares pursuant to the Offer)
Minimum Subscription1
% % (fully Shareholder Shares Options (undiluted) diluted) One Six Eight Limited3 36,000,000 Nil 19.2% 18.5% Virtus Consultants Limited3 27,000,000 Nil 14.4% 13.9% PT Sumber Energi4 15,000,000 Nil 8.0% 7.7% Southern Arc Minerals Inc5 15,000,000 Nil 8.0% 7.7%
For personal use only use personal For Carmine Lion Group Pty Ltd2 14,800,000 Nil 7.9% 7.6% Far East Holdings Securities Ltd5 10,000,000 Nil 5.3% 5.1% Capital Enterprise Trading Limited3 10,000,000 Nil 5.3% 5.1%
1 The Minimum Subscription would result in the issue of 21,000,000 Shares under this Offer. The Share capital will be 187,200,000 Shares.
2 An entity controlled by Leslie Pereira and Rafael Nitiyudo being directors of the Company.
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3 Issued upon the acquisition of 97.03% of PT CEP.
4 An entity controlled by a group of Asian businessmen.
5 Issued upon the acquisition of Indotan.
Maximum Subscription1
% % (fully Shareholder Shares Options (undiluted) diluted)
One Six Eight Limited3 36,000,000 Nil 18.3% 17.6%
Virtus Consultants Limited3 27,000,000 Nil 13.7% 13.2%
PT Sumber Energi4 15,000,000 Nil 7.6% 7.4%
Southern Arc Minerals Inc5 15,000,000 Nil 7.6% 7.4%
Carmine Lion Group Pty Ltd2 14,800,000 Nil 7.5% 7.3%
Far East Holdings Securities Ltd5 10,000,000 Nil 5.1% 4.9%
Capital Enterprise Trading Limited3 10,000,000 Nil 5.1% 4.9%
1 The Maximum Subscription would result in the issue of 30,000,000 Shares under this Offer. The Share capital will be 196,200,000 Shares.
2 An entity controlled by Leslie Pereira and Rafael Nitiyudo, Directors of the Company.
3 Issued upon the acquisition of 97.03% of PT CEP.
4 An entity controlled by a group of Asian businessmen.
5 Issued upon the acquisition of Indotan.
The Company will announce to the ASX details of its top 20 Shareholders (following completion of the Offer) prior to the Shares commencing trading on the ASX.
3.13 Restricted Securities
Subject to the Company being admitted to the Official List, certain Shares and Options on issue prior to the Offer will be classified by ASX as restricted securities and will be required to be held in escrow for up to 24 months from the date of Official Quotation. During the period in which these securities are prohibited from being transferred, trading in Shares may be less liquid which may impact on the ability of a Shareholder to dispose of his or her Shares in a timely manner.
Under the terms of the Taliwang Gold Project acquisition, Southern Arc has For personal use only use personal For agreed to an escrow period of six months from the date of the Company’s proposed ASX listing, or such longer time required by the ASX Listing Rules.
Our Company will announce to the ASX full details (quantity and duration) of the Shares and Options required to be held in escrow prior to the Shares commencing trading on ASX.
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3.14 Financial Information
Our Company was incorporated 1 February 2011 and has no operating history in coal or minerals exploration, development or mining and limited historical financial performance. The Company is yet to conduct its own exploration activities on the areas of land which are the subject of the Project acquisitions and will not commence such activities until the Company has been admitted to the Official List.
As a result, the Company is not in a position to disclose any key financial ratios other than its balance sheet which is included in the Investigating Accountant’s Report set out in Section 10 of this Prospectus.
3.15 Taxation
The acquisition and disposal of Shares will have tax consequences, which will differ depending on the individual financial affairs of each investor. All potential investors in the Company are urged to obtain independent financial advice about the consequences of acquiring Shares from a taxation viewpoint and generally.
To the maximum extent permitted by law, the Company, its officers and each of their respective advisors accept no liability and responsibility with respect to the taxation consequences of subscribing for Shares under this Prospectus.
3.16 Dividend Policy
The Company anticipates that significant expenditure will be incurred in the evaluation and development of the Company’s proposed Projects. These activities, together with the possible acquisition of interests in other projects, are expected to dominate the two year period following the date of this Prospectus. Accordingly, the Company does not expect to declare any dividends during that period.
Any future determination as to the payment of dividends by the Company will be at the discretion of the Directors and will depend on the availability of distributable earnings and operating results and financial condition of the Company, future capital requirements and general business and other factors considered relevant by the Directors. No assurance in relation to the payment of dividends or franking credits attaching to dividends can be given by the Company.
3.17 Directors and Key Personnel
James Carter B.Bus, CPA Non- Executive Chairman (Appointed 1 April 2012)
Mr Carter is a CPA with 17 years experience in the mining industry in corporate and site based roles in Indonesia, Singapore and Australia. James was previously
For personal use only use personal For CFO of ASX listed Straits Resources Limited and CFO and Company Secretary of SGX listed Straits Asia Resources Limited and was integral to its development as a 10 million tonne per annum coal producer in Indonesia. His work at Straits included debt and equity capital markets, tax strategy, M&A and corporate governance.
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Claude Strnadica B.Com Managing Director (Appointed 7 March 2012)
Mr Strnadica has been a successful corporate banker in Perth for the past 12 years. Over this time he has developed a strong network of business associates and has forged significant relationships within the commercial sector.
In recent years Mr Strnadica has worked closely with several ASX listed mining companies with operations in Australia, Africa and most particularly Indonesia; and has played a pivotal role in a broad range of business transactions and projects including capital raisings, mergers and acquisitions, project finance and equity capital markets
Mr Strnadica’s corporate finance experience, entrepreneurial skills and astute business acumen are expected to add significantly to the direction of Coke Resources Limited.
Leslie Pereira B.App.Sc.(Biology) B.App.Sc.(Chiropractic) C.C.S.P Non-Executive Director (Appointed 1 February 2011)
Mr Pereira has been involved in mining projects over the past 12 years initially in diamond mining in South Africa, but more recently in coal mining in Indonesia. He has been involved in numerous successful raisings for both public listed and private companies over the past 10 years, and his intricate knowledge of the Indonesian coal sector will be a major asset to Coke Resources Limited.
Rafael Nitiyudo Non-Executive Director (Appointed 1 February 2011)
Mr Nitiyudo is an Indonesian based professional who has been actively involved in coal mining projects in Indonesia over the past 6 years and has forged a strong contact network in business and political circles alike.
Mr Nitiyudo was integral in the exploration and development of the substantial Pakar Coal project in Kalimantan, Indonesia and his comprehensive local industry knowledge, as well as his significant Indonesian business networks will prove pivotal to Coke Resources’ future success.
3.18 Management and Consultants
The Company is aware of the need to have sufficient management to properly supervise the exploration and if successful the development of the projects in which the Company proposes to acquire a future interest. The Board will therefore continually monitor the management roles within the Company. As the level of involvement for the Company’s projects increases, the Board will look to appoint management and/or consultants when and where appropriate to ensure proper management of those projects.
3.19 Corporate Governance For personal use only use personal For To the extent applicable, in light of the Company’s size and nature, the Company has adopted The Corporate Governance Principles and Recommendations (2nd Edition) as published by ASX Corporate Governance Council (Recommendations).
The Company’s main corporate governance policies and practices as at the date of this Prospectus are outlined in Section 13.1 of this Prospectus and the Company’s compliance and departures from the Recommendations are set
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out in Section 13.2 of this Prospectus.
In addition, the Company’s full Corporate Governance Plan is available from the Company’s website www.cokeresources.com.
3.20 Disclosure of Interests
The Company has paid Directors fees for Mr Claude Strnadica and Mr James Carter from the date of their appointments being 7 March 2012 and 1 April 2012 respectively. The monthly payment is pro-rated from the annual rates below. For Mr Leslie Pereira and Mr Rafael Nitiyudo, no remuneration will be paid or accrue until such time as the Company is admitted to the Official List.
Director Remuneration James Carter $65,4001 Claude Strnadica $130,8001
1 Remuneration is inclusive of superannuation (if applicable).
For each of the Directors, the proposed annual remuneration for the financial year following the Company being admitted to the Official List together with the relevant interest of each of the Directors in the securities of the Company as at the date of this Prospectus is set out in the table below. The Directors are also entitled to reimbursement of the costs of their reasonable expenses. Subject to prior approval of the Chairperson of the Board, non-executive directors may be paid additional remuneration for additional services to the Company beyond their normal duties.
Director Remuneration Shares Options including superannuation5 James Carter1 $65,400 - 1,000,000 Leslie Pereira2 $65,400 18,800,000 1,000,000 Claude Strnadica3 $130,800 500,000 1,000,000 Rafael Nitiyudo4 $65,400 22,800,000 1,000,000
1 Options are held on trust for the Brojesca Trust Account.
2 Securities are held by Carmine Lion Group Pty Ltd (a company in which Mr Pereira has a relevant interest and controls with Rafael Nitiyudo) and Nannook Holdings Pty Ltd (a company in which Mr Pereira has a relevant interest and controls).
3 Securities are held by Malimax Holdings Pty Ltd (a company in which Mr Strnadica’s spouse has a relevant interest and controls).
4 Securities are held by Carmine Lion Group Pty Ltd (a company in which Mr Nitiyudo has a relevant interest and controls with Leslie Pereira and Happy Lucky Golden Dragon Ltd (a
For personal use only use personal For company in which Mr Nitiyudo has a relevant interest and controls).
5 Refer to Sections 3.21 and 14.5 for descriptions of the agreements relevant to this remuneration. All Directors will receive statutory superannuation other than James Carter.
The Company’s company secretary Simon Penney has been issued with 700,000 Shares as part of the issues on 30 June 2011 at the issue price of $0.05 each.
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As described in part 2.2 of Section 11, Mr Rafael Nitiyudo previously was with his associate, a controlling shareholder in PTCEP, but no longer holds any interest in PTCEP.
3.21 Agreements with Directors or Related Parties
Our Company’s policy in respect of related party arrangements is:
(a) a Director with a material personal interest in a matter is required to give notice to the other Directors before such a matter is considered by the Board; and
(b) for the Board to consider such a matter, the Director who has a material personal interest is not present while the matter is being considered at the meeting and does not vote on the matter.
Executive employment contract
The Company has entered into an executive employment contract with Mr Claude Strnadica effective from 7 March 2012. Under the employment contract, Mr Strnadica is engaged to the Company to provide services to the Company in the capacity of Managing Director. Mr Strnadica will be paid an annual salary of $120,000 plus statutory superannuation from 7 March 2012. Mr Strnadica will also be reimbursed for reasonable expenses incurred in carrying out his duties.
The employment contract is for an initial term of twelve (12) months and contains standard termination provisions under which the Company or Mr Strnadica must give three (3) months notice of termination (or shorter period in the event of a material breach or other customary circumstances), or alternatively, payment in lieu of service. Mr Strnadica is entitled to all unpaid remuneration and entitlements up to the date of termination. It is proposed that Mr Strnadica’s executive employment contract will be extended prior to its expiry in March 2013, subject to final agreement between the Company and Mr Strnadica.
The Directors who did not have a material personal interest in the executive employment contract considered that it was reasonable in the circumstances as the contract is appropriate in comparison to other similar companies.
At the time of entry into the executive employment contract there was a quorum of two directors without a material personal interest to consider and vote on the matter.
Carmine Lion Group Pty Ltd Loan Facility
The Company has an unsecured loan facility offered on 30 November 2012 by Carmine Lion Group Pty Ltd, a company controlled by Mr Leslie Pereira and Mr Rafael Nitiyudo, both directors of the Company. The purpose of the loan is to provide the Company with working capital until it completes the Offer or until it
For personal use only use personal For has sufficient financial capacity to repay the loan. The terms of the loan facility agreement are:
(a) the Company may make multiple drawdowns from the facility up to a maximum of $250,000;
(b) the minimum individual draw down on the facility is $10,000;
(c) interest accrues monthly at 10% per annum;
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(d) the Company warrants to use its best endeavours to ensure the Offer is completed as soon as practicable, provided that it at all times acts in its best interests; and
(e) the Company agrees to pay the facility with any accrued interest at call, which is within 5 business days of receiving a written notice from Carmine Lion Group Pty Ltd requesting that the Company advance the funds to it.
The Directors who did not have a material personal interest in the loan facility considered it to be on arm’s length terms.
The Company has not drawn down on the facility but may do so prior to the close of the Offer in order to cover some of the expenses of the Offer. The Company will repay the loan from funds raised under the Offer if it draws down on the loan.
There is no right in the loan facility terms for the loan to be converted into securities in the Company.
Carmine Lion Group Pty Ltd Office Rental Agreement
Please refer to Section 14.8 of the prospectus for information concerning an agreement with Carmine Lion Group Pty Ltd, to provide office space and associated services to the Company. The Directors who did not have a material personal interest in the agreement considered it to be on arm’s length terms.
Deeds of indemnity, insurance and access
The Company has entered into a deed of indemnity, insurance and access with each of its Directors. Under these deeds, the Company agrees to indemnify each officer to the extent permitted by the Corporations Act against any liability arising as a result of the officer acting as an officer of the Company. The Company is also required to maintain insurance policies for the benefit of the relevant officer and must also allow the officers to inspect board papers in certain circumstances. The Directors who did not have a material personal interest in each deed of indemnity, insurance and access considered them to be on arm’s length terms.
Non-executive directors’ letters of engagement
Please refer to Section 14.5 for information concerning the letters of engagement entered into between the Company and its non-executive directors. The Directors who did not have a material personal interest in each letter of engagement considered the remuneration agreed with the non- executive directors under those letters of engagement is reasonable given the circumstances of the Company and the nature of the non-executive directors’
roles within the Company. For personal use only use personal For
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4. CHAIRMAN’S LETTER
Dear Investor,
On behalf of the Directors of the Company, I am delighted to invite you to become a shareholder of the Company through the Prospectus, which seeks to raise up to $6,000,000 through the issue of up to 30,000,000 Shares at a price of $0.20 per Share pursuant to the Maximum Offer.
Coke Resources has entered into a Call Option Agreement to acquire a 97% interest in the Cristian Coal Project located in East Kalimantan, Indonesia. The Directors have forged a strategic relationship with the local vendors, who have agreed to transfer the project into Coke Resources for Shares in the Company, allowing them to maintain an ongoing interest in the project by way of their significant shareholding.
The vendors have significant experience in the Indonesian coal industry and are respected in both Indonesia and throughout Asia alike. They have a large number of other coking and thermal coal projects in the region, and are committed to ensuring Coke Resources makes the rapid transition into a significant coal explorer with the goal of potentially becoming a subsequent producer.
In addition, Coke Resources has recently entered into a conditional sale and purchase agreement to acquire a 90% interest in the Taliwang Gold Project (which will be reduced to 75% as described in Section 14.4) based in Sumbawa, Indonesia. The gold project is currently 90% owned by Southern Arc and represents an excellent opportunity for the Company to explore this gold province.
The Company has a Board possessing extensive experience in all facets of mining, including exploration, mine development, processing and production; complemented by a proven history of successful capital raisings, project finance provision and strong corporate governance.
The Board believes that subject to the risk factors described in Sections 3.5 and 7, and particularly the specific risks, such as the Company’s proposed international operations and tenure status risks, the Offer represents an excellent opportunity to become a Shareholder in a progressive company which proposes to acquire both prospective coal and gold tenements in Indonesia, and has the potential ability to rapidly expand its project portfolio via our strong Indonesian alliance.
Before making your decision to invest, I ask that you carefully read this Prospectus and seek professional advice if required.
On behalf of the Board, I commend the Offer to you and look forward to welcoming you as a Shareholder of Coke Resources Limited.
Yours sincerely For personal use only use personal For
James Carter Non-Executive Chairman 21 December 2012
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5. DETAILS OF THE OFFER
5.1 The Offer
Pursuant to this Prospectus, the Company invites applications for up to 21,000,000 Shares at an issue price of $0.20 per Share to raise up to $4,200,000 pursuant to the Minimum Subscription with a provision for oversubscription of 9,000,000 Shares to raise an additional $1,800,000. The maximum amount which may be raised under this Prospectus is therefore $6,000,000 comprising the Maximum Subscription.
The Shares offered under this Prospectus will rank equally with the existing Shares on issue.
5.2 Minimum subscription
If the Minimum Subscription to the Offer of $4,200,000 has not been raised within four (4) months after the date of this Prospectus, the Company will not issue any Shares and will repay all application monies for the Shares within the time prescribed under the Corporations Act, without interest.
5.3 Applications
Applications for Shares under the Offer must be made using the Application Form.
Applications for Shares must be for a minimum of 10,000 Shares and thereafter in multiples of 1,000 Shares and payment for the Shares must be made in full at the issue price of $0.20 per Share.
Completed Application Forms and accompanying cheques, made payable to “Coke Resources Limited – Share Offer Account” and crossed “Not Negotiable”, must be mailed or delivered to the address set out on the Application Form by no later than the Closing Date.
The Company reserves the right to close the Offer early.
5.4 ASX listing
Application for Official Quotation by ASX of the Shares offered pursuant to this Prospectus will be made within seven (7) days after the date of this Prospectus.
If the Shares are not admitted to Official Quotation by ASX before the expiration of three (3) months after the date of issue of this Prospectus, or such period as varied by the ASIC, the Company will not issue any Shares and will repay all application monies for the Shares within the time prescribed under the Corporations Act, without interest.
The fact that ASX may grant Official Quotation to the Shares is not to be taken in
any way as an indication of the merits of the Company or the Shares now For personal use only use personal For offered for subscription.
5.5 Allotment
Subject to the Minimum Subscription to the Offer being reached and ASX granting conditional approval for the Company to be admitted to the Official List, allotment of Shares offered by this Prospectus will take place as soon as practicable after the Closing Date.
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Pending the allotment and issue of the Shares or payment of refunds pursuant to this Prospectus, all application monies will be held by the Company in trust for the Applicants in a separate bank account as required by the Corporations Act. The Company, however, will be entitled to retain all interest that accrues on the bank account and each Applicant waives the right to claim interest.
The Directors will determine the allottees of all the Shares in their sole discretion. The Directors reserve the right to reject any application or to allocate any applicant fewer Shares than the number applied for. Where the number of Shares issued is less than the number applied for, or where no allotment is made, surplus application monies will be refunded without any interest to the Applicant as soon as practicable after the Closing Date.
5.6 Applicants outside Australia
This Prospectus does not, and is not intended to, constitute an offer in any place or jurisdiction, or to any person to whom, it would not be lawful to make such an offer or to issue this Prospectus. The distribution of this Prospectus in jurisdictions outside Australia may be restricted by law and persons who come into possession of this Prospectus should seek advice on and observe any of these restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.
No action has been taken to register or qualify the Shares or otherwise permit a public offering of the Shares the subject of this Prospectus in any jurisdiction outside Australia. Applicants who are resident in countries other than Australia should consult their professional advisers as to whether any governmental or other consents are required or whether any other formalities need to be considered and followed.
If you are outside Australia it is your responsibility to obtain all necessary approvals for the allotment and issue of the Shares pursuant to this Prospectus. The return of a completed Application Form will be taken by the Company to constitute a representation and warranty by you that all relevant approvals have been obtained.
5.7 Oversubscriptions
The Company may accept oversubscriptions of up to a further $1,800,000 through the issue of up to a further 9,000,000 Shares at an issue price of $0.20 each under the Offer.
5.8 Not underwritten
The Offer is not underwritten.
5.9 Commissions payable
The Company reserves the right to pay a commission of 5% (exclusive of goods
For personal use only use personal For and services tax) of amounts subscribed through any licensed securities dealers or Australian financial services licensee in respect of any valid applications lodged and accepted by the Company and bearing the stamp of the licensed securities dealer or Australian financial services licensee. Payments will be subject to the receipt of a proper tax invoice from the licensed securities dealer or Australian financial services licensee.
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6. COMPANY AND PROJECT OVERVIEW
6.1 Background
Coke Resources Limited is currently an unlisted public company. The Company was incorporated on 1 February 2011 and was formed with the aim of finding, exploring and developing mineral projects with a focus on Indonesian mineral assets.
Coke Resources has negotiated an option to acquire 97% of PT CEP, the owner of a highly prospective coal concession in East Kalimantan, Indonesia. The owners of PT CEP have agreed to accept Shares in Coke Resources in exchange for 97% of the Cristian Coal Project, aligning both parties’ interests in the project’s success.
The Company has also signed a conditional sale and purchase agreement to acquire 100% of Indotan, a company incorporated in Singapore from Southern Arc. Following the acquisition of Indotan, the Company will own 75% of PT Indotan Sumbawa Barat, incorporated in Indonesia, which has the status of a foreign investment company and holds an IUP Exploration.
6.2 Group Structure
An overview of the ownership structure for Coke Resources after completion of
the acquisition of Cristian and Indotan is shown below. For personal use only use personal For
6.3 Project Overview - Cristian Coal Project – Thermal coal project in East Kalimantan, Indonesia
The Cristian Coal Project is a thermal coal project located in East Kalimantan, Indonesia in which Coke Resources Limited proposes to hold a 97% ownership. The concession covers 5,273 hectares and is located 15km from Mahakam River.
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The existing owners have already undertaken significant Infrastructure improvements - with roads, ports and barging facilities already established. Further, the existing owners have commenced an aggressive drilling program planned with the objective of allowing Coke Resources Limited to report a mineral resource defined in accordance with the JORC Code.
Please refer to the Independent Geologists Report in Section 8 of this Prospectus and the Indonesian Solicitor’s Report in Section 11 of this Prospectus for more detailed information on the Cristian Coal Project.
CEP – Location
Figure 1: Project Location - Cristian Coal Project Slide 2
6.4 Project Overview - Taliwang - Gold project in Sumbawa, Indonesia
PT Indotan Sumbawa Barat holds an IUP Exploration covering the Taliwang Gold Project which is a prospective gold, silver and copper concession in Sumbawa, Indonesia.
The Taliwang property covers an area of 31,204 hectares and is located on the West coast of Sumbawa Island, Indonesia, in the Taliwang sub-district, West Sumbawa Regency, about 15 km to the north of Newmont's Batu Hijau porphyry copper-gold mine.
Although the Taliwang property, the subject of Southern Arc‘s exploration activities since 2005, hosts a number of prospects, to date the focus has been on three main targets: Lemonga, Jereweh or J3 and Semoan-Ramit-Raboya (see Figure 2). Thus far, Southern Arc has carried out two phases of detailed diamond For personal use only use personal For drilling on the Lemonga gold-silver epithermal vein prospect and only preliminary scout drilling on the Ramit Cu-Au porphyry prospect. The property provides for further potential exploration upside.
Please refer to the Independent Geologists Report in Section 9 of this Prospectus and the Indonesian Solicitor’s Report in Section 12 of this Prospectus for more detailed information on the Taliwang Gold Project.
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Figure 2: Location of Taliwang Gold Project - Sumbawa, Indonesia
For personal use only use personal For
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7. RISK FACTORS
7.1 Introduction
The Shares offered under this Prospectus are considered highly speculative. An investment in our Company is not risk free and the Directors strongly recommend potential investors to consider the risk factors described below, together with information contained elsewhere in this Prospectus, before deciding whether to apply for Shares and to consult their professional advisers before deciding whether to apply for Shares pursuant to this Prospectus.
There are specific risks which relate directly to our business. In addition, there are other general risks, many of which are largely beyond the control of the Company and the Directors. The risks identified in this section, or other risk factors, may have a material impact on the financial performance of the Company and the market price of the Shares.
The following is not intended to be an exhaustive list of the risk factors to which the Company is exposed.
7.2 Company specific
Risks that are specific to the Company are outlined in Section 3.5 of this Prospectus.
7.3 Industry specific
(a) No Mineral Resource or Ore Reserve estimates
The Company does not presently have any mineral resources or ore reserves pursuant to the JORC Code on the Tenements in which it is proposing to acquire indirect interests. In the event a resource or reserve are delineated this would be an estimate only. An estimate is an expression of judgement based on knowledge, experience and industry practice. Estimates which were valid when originally calculated may alter significantly when new information or techniques become available. In addition, by their very nature, resource estimates are imprecise and depend to some extent on interpretations, which may prove to be inaccurate. As further information becomes available through additional fieldwork and analysis, the estimates are likely to change. This may result in alterations to development and mining plans which may, in turn, adversely affect the Company’s operations.
(b) Environmental
The operations and proposed activities of the Company are subject to Indonesian laws and regulations concerning the environment, business operations and mining Indonesia. As with most exploration projects and mining operations, the Company’s and its subsidiaries’ activities are
For personal use only use personal For expected to have an impact on the environment, particularly if advanced exploration or mine development proceeds. It is the Company’s intention to conduct its activities to the highest standard of environmental obligation, including compliance with all environmental laws.
Although no mining operations are ongoing at the Cristian Coal Project and Taliwang Gold Project, mining operations have inherent risks and
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liabilities associated with safety and damage to the environment and the disposal of waste products occurring as a result of mineral exploration and production. The occurrence of any such safety or environmental incident could delay production or increase production costs. Events, such as unpredictable rainfall or bushfires may impact on the Company’s and its subsidiaries’ ongoing compliance with environmental legislation, regulations and licences. Significant liabilities could be imposed on the Company or its subsidiaries’ for damages, clean up costs or penalties in the event of certain discharges into the environment, environmental damage caused by previous operations or non-compliance with environmental laws or regulations.
The disposal of mining and process waste and mine water discharge are under legislative scrutiny and regulation. There is a risk that environmental laws and regulations become more onerous making the Company’s and its subsidiaries’ operations more expensive.
Delays in obtaining any necessary regulatory approvals can result in the delay to anticipated exploration programmes or potential mining activities.
In Indonesia, where mining tenements overlap with forestry areas, it is necessary to obtain a Borrow-and-Use License or Izin Pinjam Pakai, which is issued by the Minister of Forestry. The Taliwang Gold Project and Cristian Coal Project both contain such forestry areas over part of their tenure and applications have been made for Borrow-and-Use Licenses, which have not yet been granted. The Borrow-and-Use License is a permit which allows a person or entity to use a particular plot of a forest zone for specific non-forestry activities (such as mining activities). Even if the Borrow-and-Use License is not granted, forestry laws in Indonesia do not prevent the Company from carrying out exploration activities on areas not zoned as protection forest in the manner and within the time frames set out in this Prospectus. Please refer to the Solicitors’ Reports in Sections 11 and 12 and the Independent Geologists’ Reports in Sections 8 and 9 of this Prospectus.
7.4 General risks
(a) Economic
General economic conditions, introduction of tax reform, new legislation, movements in interest and inflation rates and currency exchange rates may have an adverse effect on the Company’s proposed exploration, development and production activities, as well as on its ability to fund those activities.
(b) Market conditions
Share market conditions may affect the value of the Company’s
For personal use only use personal For quoted securities regardless of the Company’s operating performance. Share market conditions are affected by many factors such as:
general economic outlook;
introduction of tax reform or other new legislation;
interest rates and inflation rates;
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changes in investor sentiment toward particular market sectors;
the demand for, and supply of, capital; and
terrorism or other hostilities.
The market price of securities can fall as well as rise and may be subject to varied and unpredictable influences on the market for equities in general and resource exploration stocks in particular. Neither the Company nor the Directors warrant the future performance of the Company or any return on an investment in the Company.
(c) Additional requirements for capital
The Company’s capital requirements depend on numerous factors. Depending on the Company’s ability to generate income from its operations, the Company may require further financing in addition to amounts raised under the capital raising Offer. Any additional equity financing will dilute shareholdings, and debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations and scale back its exploration programmes as the case may be. There is however no guarantee that the Company will be able to secure any additional funding or be able to secure funding on terms favourable to the Company.
(d) Reliance on key personnel
The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on its senior management and its key personnel. There can be no assurance given that there will be no detrimental impact on the Company if one or more of these employees or Directors cease their employment or appointment.
(e) Competition risk
The industry in which the Company will be involved is subject to domestic and global competition. Although the Company will undertake all reasonable due diligence in its business decisions and operations, the Company will have no influence or control over the activities or actions of its competitors, which activities or actions may, positively or negatively, affect the operating and financial performance of the Company’s proposed projects and business.
(f) Currently No Market
There is currently no public market for the Company’s Shares. The price
For personal use only use personal For of its Shares is subject to uncertainty and there can be no assurance that an active market for the Company’s Shares will develop or continue after the Offer. There is also a risk of the Company failing to raise the Minimum Subscription under the Offer in accordance with the regulatory time limits as described in Section 5.
The price at which the Company’s Shares trade on ASX after listing may be higher or lower than the Offer Price and could be subject to fluctuations in response to variations in operating performance and
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general operations and business risk, as well as external operating factors over which the Directors and the Company have no control, such as movements in mineral prices and exchange rates, changes to government policy, legislation or regulation and other events or factors.
There can be no guarantee that an active market in the Company’s Shares will develop or that the price of the Shares will increase.
There may be relatively few or many potential buyers or sellers of the Shares on ASX at any given time. This may increase the volatility of the market price of the Shares. It may also affect the prevailing market price at which Shareholders are able to sell their Shares. This may result in Shareholders receiving a market price for their Shares that is above or below the price that Shareholders paid.
(g) Government policy changes
Adverse changes in government policies or legislation may affect ownership of mineral interests, taxation, royalties, land access, labour relations, and mining and exploration activities of the Company. It is possible that the current system of exploration and mine permitting in Indonesia may change, resulting in impairment of rights and possibly expropriation of the Company’s proposed subsidiaries’ property or Projects without adequate compensation.
(h) Insurance risks
The Company intends to insure its operations in accordance with industry practice. However, in certain circumstances, the Company’s insurance may not be of a nature or level to provide adequate insurance cover. The occurrence of an event that is not covered or fully covered by insurance could have a material adverse effect on the business, financial condition and results of the Company.
Insurance against all risks associated with mining exploration and production is not always available and where available the costs can be prohibitive.
(i) Litigation Risks
The Company and its proposed subsidiaries are exposed to possible litigation risks including title claims, tenure disputes, environmental claims, occupational health and safety claims and employee claims. Further, the Company may be involved in disputes with other parties in the future which may result in litigation. Any such claim or dispute if proven, may impact adversely on the Company’s operations, financial performance and financial position. To the best of the Company’s knowledge, the Company, PT CEP, Indotan and the other entities in the proposed corporate structure described in Section 6.2 are not currently
For personal use only use personal For engaged in any material litigation.
(j) Regulatory Risks
The Company’s proposed exploration and development activities are subject to extensive laws and regulations relating to numerous matters including tenure, environmental compliance and rehabilitation, taxation, employee relations, health and worker safety, waste disposal, protection of the environment and other matters. The Company’s
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proposed subsidiaries require permits from regulatory authorities to authorise their operations in Indonesia. These permits relate to exploration, development, production and environmental activities, among others.
Obtaining necessary permits can be a time consuming process and there is a risk that the Company and its subsidiaries will not obtain these permits on acceptable terms, in a timely manner or at all. The costs and delays associated with obtaining necessary permits and complying with these permits and applicable laws and regulations could materially delay or restrict the Company from proceeding with the development of a project or the operation or development of a mine. Any failure to comply with applicable laws and regulations or permits, even if inadvertent, could result in material fines, penalties or other liabilities. In extreme cases, failure could result in suspension of the Company’s or its proposed subsidiaries’ activities or forfeiture of one or more of their tenements.
(k) Investment speculative
The above list of risk factors ought not to be taken as exhaustive of the risks faced by the Company or by investors in the Company. The above factors, and others not specifically referred to above, may in the future materially affect the financial performance of the Company and the value of the Shares offered under this Prospectus
Therefore, the Shares to be issued pursuant to this Prospectus carry no guarantee with respect to the payment of dividends, returns of capital or the market value of those Shares.
Potential investors should consider that the investment in the Company is highly speculative and should consult their professional advisers before
deciding whether to apply for Shares pursuant to this Prospectus. For personal use only use personal For
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Independent Geologist’s Report PT.CRISTIAN EKA PRATAMA COAL PROJECT IN EAST KALIMANTAN INDONESIA
For Coke Resources Limited 36 Outram Street, West Perth, WA, 6005
December 2012
For personal use only use personal For Author Piter Lepong, SALVA RESOURCES, INDONESIA
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Contents List of Abbreviations ...... 5 1.0 Introduction ...... 7 Terms of reference ...... 7 Qualifications and Experience ...... 8 Statement of Salva Resources Independence ...... 8 Warranties ...... 9 Indemnities ...... 9 Consents ...... 9 2.0 Kalimantan-General Information ...... 9 3.0 Indonesian Coal Industry ...... 10 4.0 Kalimantan Coal Geology ...... 12 5.0 Cristian Coal Project ...... 13 5.1 Tenure...... 13 5.2 Location and Access...... 13 5.3 Climate ...... 13 5.4 Demography ...... 14 5.5 Physiography ...... 14 5.6 Regional Geology Setting ...... 14 5.7 Geology of Cristian Project Area ...... 17 5.8 Previous Exploration: ...... 20 5.9 Recent Exploration: ...... 22 5.10 Coal Quality Analysis: ...... 24 5.11 Recent coal quality analysis from drilling: ...... 26 6.0 Data and Model Review Update ...... 26
6.1 Borehole Data ...... 26 For personal use only use personal For 6.2 Topography ...... 27 6.3 Geological Modelling ...... 29 7.0 Proposed Exploration Program and Budgeting ...... 33
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8.0 Conclusions ...... 34 References: ...... 35 Glossary: ...... 36 Appendix 1: Drill Collars Cristian Project ...... 41 Appendix 2: Identified Seams ...... 44 Appendix 3: Sample Analysis ...... 47 Appendix 4: Photographs of Site Visit ...... 50 Appendix 6: Planned Drill Collars Cristian Project ...... 51 Appendix 7: Recent Coal Quality Results ...... 52
Tables Table 1- Cristian Coal Concession ...... 13 Table 2: Recent Drilling Results- April 2012 ...... 23 Table 3: Coal Quality Analysis from Outcrop Samples ...... 25
Table 4: Coal Quality Analysis Ranges From Recent Drilling ...... 26 For personal use only use personal For
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Disclaimer The opinions expressed in this Report have been based on the information supplied to Salva Resources Pty Ltd by Coke Resources Limited by the close of business on 10th August 2012. Salva has exercised all due care in reviewing the supplied information. Whilst Salva has compared key supplied data with expected values, the accuracy of the results and conclusions from the review are entirely reliant on the accuracy and completeness of the supplied data. Salva does not accept responsibility for any errors or omissions in the supplied information and does not accept any consequential liability arising from commercial decisions or actions resulting from them, nor does Salva accept any changes to the data supplied after close of business on 10th August 2012.
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List of Abbreviations
Abbreviation Definition ‘ or min Minutes “ or sec Seconds % per cent < less than > greater than o or deg Degrees oC degrees Celsius ad or adb air dried basis AICD Australian Institute of Company Directors ar as received ASIC Australian Securities and Investment Commission AusIMM Australasian Institute of Mining and Metallurgy BTU (British Thermal Unit) The quantity of heat required to raise the temperature of one pound of distilled water 1oF at its point of maximum density cal/g calories per gram CAPEX capital expenditure CSN crucible swelling number; the higher the number, the better the coking properties CV calorific value daf dry ash free db dry basis DEM or DTM digital elevation model or digital terrain model DMS degrees minutes seconds (latitude/longitude) E east E-W east-west FC fixed carbon g/cc grams per cubic centimetre gar gross as received GCV gross caloric value Ha Hectare HGI Hardgrove Grindability Index- ease of pulverisation (e.g. 30 is very hard, 70 is soft) IM inherent moisture K Thousand Kg Kilogram Km Kilometer KP Kuasa Pertambangan- licence for exploration and exploitation of mineral resources issued by Department of Mines For personal use only use personal For M Meter M million m RL meters reduced level mE meters east MJ/kg megajoules per kilogram
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Abbreviation Definition mN meters north Mt million tonnes Mtpa million tonnes per annum N north NE Northeast NNE north-northeast PCI pulverised coal injection PT Perusahaan Terbatas (Indonesian: Limited Business) RD relative density S south SE south east SW south west t tonne TM total moisture tpa tonnes per annum TS total sulphur VM volatile matter W west WGS84 World-Geodetic System 1984 (WGS84)- geodetic reference system used by GPS WNW west-northwest
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1.0 Introduction
Terms of reference Salva Resources Pty Ltd (“Salva or Salva Resources”) has been commissioned by Coke Resources Limited (“Coke Resources”) to provide an independent technical report on the Cristian Coal Project (“Cristian Project”) located in East Kalimantan, Indonesia. Cristian IUP, Exploration Licence No. 545/K.013 L/2010, is held by PT Cristian Eka Pratama (“Cristian”) which is a proposed to become a subsidiary of Coke Resources Limited.
This Report is to be included in a prospectus to be lodged with the Australian Securities and Investment Commission (“ASIC”) on or about the 20th December 2012 (“Prospectus”).
This report is not a Valuation Report and does not express an opinion as to the value of mineral assets. Aspects reviewed in this Report do not include product prices, socio political issues and environmental considerations; Salva does not express an opinion regarding the specific value of the assets and project being considered. Salva has conducted a site visit to the Cristian coal property to determine the access, assess the topographical features of the site, inspect coal outcrops, review location of historical drill collars and inspect the adjacent property. Through visiting the site Salva has noted the presence of coal mineralisation from outcrop.
The legal status associated with the Cristian Project is addressed by an expert other than Salva Resources and these matters have not been independently verified by Salva Resources. The present status of the Cristian Project is based on information provided by Coke Resources, and the Report has been prepared on the assumption that Cristian Project, or will prove to be, lawfully accessible for evaluation and development.
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Qualifications and Experience Salva Resources is a global provider of key technical and commercial services for exploration, mining and investment companies. These services extend across the entire project development timeline: exploration, geological modeling, mine planning, site safety management, marketing, due diligence and other commercial services.
Salva’s growth has been realised through the delivery of key technical services on budget and on time. We have specifically expanded into key international resource hubs, which enable our core range of services to be utilised anywhere in the world. Each office is operated and managed by local experts with on-the-ground knowledge, who are working for clients such as Rio Tinto, Vale, Peabody, Xstrata and BHPB.
Salva maintains a reputation based on the ability to work to best industry standards on projects of all sizes and complexities. This level of service is made possible through the combination of a highly credentialed technical team with the training, experience and ability to assess each project’s commercial viability and to drive a venture forward.
In compiling this Report, Salva has relied upon information supplied by Coke Resources Limited and associated partners / parties up to a close of business on 10thAugust 2012. Additional or new information or data was generated and verified by PT Salva Indonesia.
This document was peer-reviewed by Dr Aldo Van Heeswijck, who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Aldo Van Heeswijck is a full time employee of Salva Resources Pty Ltd as a Principle Geologist (Coal). Dr Aldo Van Heeswijck 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’. Dr. Aldo Van Heeswijck consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
For personal use only use personal For Statement of Salva Resources Independence Neither Salva Resources nor any of the authors of this Report have any material present or contingent interest in the outcome of this Report, nor do they have any pecuniary or other interest that could be reasonably regarded as being capable of affecting their independence or that of Salva Resources.
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Salva Resources has no prior association with Coke Resources Limited in regard to mineral assets that are the subject of this Report. Salva Resources has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence.
Salva Resources fee for completing this Report is based on its normal professional daily rates plus reimbursement of incidental expenses. The payment of that professional fee is not contingent upon the outcome of the Report.
Warranties Coke Resources Limited has represented to Salva Resources that full disclosure has been made of all material information and that, to the best of its knowledge and understanding, such information is complete, accurate and true.
Indemnities As recommended by the VALMIN Code, Coke Resources Limited has agreed to provide Salva Resources with an indemnity under which Salva Resources is to be compensated for any liability and/or any additional work or expenditure resulting from any additional work required; Which results from Salva Resources reliance on information provided by Coke Resources Limited or to Coke Resources Limited not providing material information; or Which relates to any consequential extension workload through queries, questions or public hearings arising from this Report.
Consents Salva Resources consents to this Report being included in a Prospectus to be lodged with Australian Securities and Investments Commission (“ASIC”), on or about 6th December 2012, in the form and the context in which the technical assessment is provided, and not for any other purpose.
Salva Resources provides this consent on the basis that the technical assessments expressed in the Summary and in the individual sections of this Report are considered with, and not independently of, the information set out in the complete Report and the Cover Letter.
2.0 Kalimantan-General Information For personal use only use personal For
Kalimantan was formerly known as Borneo and is the world’s second largest island. The north and north-western extent of Kalimantan are the independent states of East Malaysia, Sarawak and Sabah. The independent state of Brunei is located between Sarawak and Sabah. To the south the rest of the island is part of Indonesia
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and is divided into four discrete provinces; East Kalimantan, West Kalimantan, Central Kalimantan and South Kalimantan. The Cristian Project is located near the Tukul Village, Tering District, Kutai Barat regency, province of East Kalimantan, Indonesia.
Kalimantan has a tropical type climate and very high rainfall throughout the year, with a generally drier period between July and October. Average annual rainfall is around 3,000mm. The temperature varies between 29oC and 34oC with humidity between 95-98%.
Figure 1: Kalimantan Location Map 3.0 Indonesian Coal Industry
Coal exploration commenced in Indonesia during the 1970’s with a major expansion occurring in the 1980’s as a result of substantial foreign investment. This historical exploration resulted in the opening of several mines and establishment of a For personal use only use personal For successful coal exploration and mining industry in Indonesia.
Indonesia is currently the world’s second largest coal exporter and the world’s leading exporter of thermal coal. A total of 162 Mt of thermal coal was exported by Indonesia in 2010 (World Coal Institute, 2011). Considering only legal mines,
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Indonesia currently produces coal from in excess of 40 different mines in East Kalimantan, South Kalimantan and Sumatra.
Coal is transported from Indonesian mines to shipping centers via a combination of trucks and barges. The trucking and barging operations are typically conducted by contractors. At export coal mines coal is mostly trucked directly to a coal processing or barge loading facility located on a river that is navigable by barge. Trucking distances for direct haul operations are commonly between 10 and 35km (Ewart and Vaughn, 2009).
Three deep water coal terminals occur in East Kalimantan. These are Balikpapan Coal Terminal, Indonesia Bulk Terminal and Arutmin’s North Pulau Laut Coal Terminal.
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4.0 Kalimantan Coal Geology
Throughout Indonesia the sedimentary coal basins are geologically very young. Coal measures on the island of Kalimantan are divided into two groups based on geological ages, Paleogene and Neogene coal measures. Within these broad periods the coal measures are predominantly Eocene to Miocene in age. Relatively high sea levels throughout the Oligocene resulted in the deposition of principally marine sediments and whilst further coal formations formed during the Pliocene these tend to be of a lower rank as a result of the younger age (Friederich et al., 1999). Higher rank coals located at the surface are dependent upon uplift and/or presence of igneous intrusive bodies.
There are substantial differences in coal quality and thickness of coal measures between those of the Eocene relative to Miocene-Pliocene coal measures. Eocene coals tend to be more continuous but thinner relative to coal formed throughout the Miocene-Pliocene. This is due to the genesis of the Eocene coal measures; these are considered to have formed under extensional structural regimes (rift type basins) as transgressive depositional environment. Seams of Eocene coals are typically 4 to 6m thick at current mining operations. The coal rank of Eocene coals are generally higher, with a lower moisture content and higher calorific value making the coals amenable for export quality thermal coals.
Neogene coal formations were deposited during regressive phase of syn-orogeny in the basins. Seam thicknesses have much higher variability and in general are thicker than that of the Eocene coals, some of which are greater than 25m thick. In general the Neogene coals tend to have low ash and sulphur values.
In terms of coal quality, Kalimantan has substantial contrasts and is substantially influenced by the geological environment of formation and post depositional processes.
Coal types have minimal variations, both Paleogene and Neogene coals are rich in vitrinite macerals, while inertinite is almost absent. Vitrinite content within the coals average 80% to 96%.
In terms of coal rank, Kalimantan coals vary from lignite through to anthracite. Paleogene coals tend towards being bituminous or higher in rank. Neogene coals are more commonly relatively low rank with the exception of heat affected coal.
For personal use only use personal For The occurrence of high rank coals in Kalimantan is predominantly influenced by the location of Paleogene coal measures and to a certain degree is also affected by igneous processes affecting Neogene coal measures (Nas and Hidartan, 2010).
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5.0 Cristian Coal Project
5.1 Tenure The Cristian Project is comprised of an Izin Usaha Pertambagan (IUP) Exploration No. 545 /K.013 L/2010 issued on the 8th of January 2010 (“Cristian IUP Exploration”). The Cristian IUP Exploration is held by PT Cristian Eka Pratama which is proposed to become a subsidiary of Coke Resources Limited and covers a total area of approximately 5,273 Ha. Salva Resources has not independently verified the legal status with respect to the Cristian IUP Exploration. The present status of the tenement in this Report is based on information provided by Coke Resources Limited, and the Report has been prepared based on the assumption that the Cristian IUP Exploration is, or will be, lawfully accessible for evaluation and development.
Table 1- Cristian Coal Concession
Project Minerals Concession No. Concession Company Grant Date Area Category Equity (Ha) Cristian Coal 545/K.013L/2010 Exploration 100% 08/01/2010 5,273 Project
5.2 Location and Access The Cristian Project is located near the Tukul Village, Tering District, Kutai Barat regency, province of East Kalimantan, Indonesia. There are number of different routes providing access to the project area. From Samarinda, the capital of East Kalimantan, the area can be reached by 4-wheel drive via Tenggarong and Melak over a distance of approximately 300km in about 8 hours. Alternatively, the Cristian Project can be reached by car to Kotabangun which takes approximately 1.5 hours followed by speedboat for approximately 3 hours. Access from the banks of the Mahakam River to the concession is via a network of logging roads. Any potential future mine development will most likely rely on the Mahakam River for water and transport of materials to and from site.
5.3 Climate The climate of the region is typically defined as ‘equatorial tropical humid’. The dry season is defined as May-June until October and alternates only with the wet season, which occurs for approximately six months of the year. Minimum For personal use only use personal For temperatures for the region are 21oC and the maximum 34oC, a range of only 13oC.
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5.4 Demography Kutai Barat regency constitutes of 21 districts covered the total area of 31,628 square kilometres. The majority of the population in the remote area rely on the natural resources such as rattan and fish as sources of income. In the last five years, intensive palm oil plantations and coal mining within some districts has provided an alternative sources of income for some peoples. The Cristian Project is located in the Tering district, near Tukul Village which is populated mainly on the banks of Mahakam River.
5.5 Physiography The Cristian Project area is flat to gently undulating with elevations ranging from 30m to 150m above sea level as shown on contour map derived from Digital Terrain Model (DTM) data in Figure 2. The total area of the Cristian Project is 5,273 Ha. Large areas of land within the Cristian Project area have been historically logged for timber.
5.6 Regional Geology Setting During the Early Miocene, a vast series of alluvial and deltaic deposits were deposited in the Kutai Basin.
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Figure 2: Digital terrain model (DTM) of Cristian Project These comprise deltaic sediments of the Pamaluan, Pulubalang, Balikpapan and Kampung Baru formations, prograding eastwards, ranging in age from the Early Miocene to Pleistocene times.
Deltaic deposition continues to the present day, and extends eastwards into offshore Kutai Basin. At present, the structural style of the Kutai Basin is dominated by a series of tight NNE – SSW trending folds (and subsidiary faults) that parallel the arcuate coastal line (Figure 3: Stratigraphy of the Tertiary Kutai Basin). These fold belts are characterized by tight, asymmetric anticlines, separated by broad synclines, containing Miocene siliciclastics. These features dominate the eastern part of the basin and are also identifiable offshore. The deformation is increasingly more complex in the onshore direction.
The Pamaluan Formation comprises alternating sandstone and claystone, intercalated with limestone. The foraminifers identified are Orbulina Universa, Globigerinoides sp., Pelatispira sp. and Cycloclypeous sp., which indicates an Oligocene to Early Miocene age. The Pamaluan Formation was deposited in neritic environment. The thickness of the unit is between 500-700 metres. The type locality is at the Pamaluan village, 30 kilometres north of Balikpapan, East Kalimantan.
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Figure 3: Stratigraphy of the Tertiary Kutai Basin
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The Pulaubalang Formation consists of alternating quartz sandstone, sandstone, claystone and greywacke with limestone and coal intercalations; coal lenses are up to 4 metres in thickness. Thin layers of andesite-basalt tuff also occur. The limestone contains large foraminifera. White dacite tuff can also occur as thin intercalations in the quartz sandstone. The thickness of this formation is interpreted to be up to 2,500 metres and is folded with dips between 25°-60° and a general northeast-southwest strike. This formation conformably overlies the Pamaluan Formation and is conformably overlain by the Balikpapan Formation. Microfossils indicate deposition during the Early to Middle Miocene in a shallow marine, sub- littoral, possibly pro-deltaic environment.
The Balikpapan Formation comprises quartz sandstone and claystone with intercalations of siltstone, shale, limestone and coal. The quartz sandstone is fine to medium grained, well sorted and has iron oxide and lignite intercalations. The calcareous sandstone contains small foraminifera whilst sandy limestone contains larger foraminifera and molluscs. Fossil evidence indicates a range from Middle to Late Miocene age for the formation in a deltaic to littoral and shallow marine environment. The formation has a thickness of approximately 1,800 meters with fold dips commonly between 35°-50° and unconformably underlies the Kampungbaru Formation.
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5.7 Geology of Cristian Project Area The coal mineralisation occurs within the Balikpapan Formation of the Tertiary Period.
Six identifiable coal horizons; Armias, Melak, Graha and Tukul (in descending stratigraphic order) have been identified within the Cristian Project area. The Graha Seam is approximately 4m thick on average within the Cristian Project area. The other coal seams are generally thinner, less than 2m.
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Figure 4: Cristian Project Geology & Coal Sampling Location
The historical mapping is regional in nature and will require further refinement in the next phase of exploration activities.
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Local Stratigraphy: The following diagrammatic mimic of the stratigraphic column of the Cristian Project areas has been developed based on interpretation of the recent drill hole program, as follows:
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Figure 5: Stratigraphic Column of Cristian Project
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The Cristian Project area is interpreted to occur in a shallow northwest-southeast trending syncline, gently plunging to the southeast. Seam dips indicated from outcrop and drilling, are typically shallow in the order of 1° to 10°.
Previous explorers have identified evidence of minor scale faulting through mapping and geological logging of drill core. The structural trend is predominantly northeast- southwest with very shallow dip.
Coal Outcrops:
Armias coal seam outcrop
Figure 6: Armias Seam Outcrop in Creek within Cristian Project Area
A single coal outcrop was observed in a creek at the Cristian Project (Outcrop location illustrated in Figure 4, Cristian Coal Project Geology and Sampling Location). The seam was interpreted to be the Armias seam and dipped gentley at approximately 5°-10°. A true thickness was not able to be obtained from the
For personal use only use personal For outcrop.
Another coal outcrop has been observed approximately 800m to the east of the Cristian project boundary (outside the Cristian project). Photograph shown in the Appendix 4, Figure 14. The outcropping coal formations are generally black, dull and
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less brittle. In this area, the coal seam strikes broadly east-west and dips at 5° to 15° to the south.
5.8 Previous Exploration:
Historical exploration at the Cristian project includes regional mapping, coal outcrop mapping & sampling and reconnaissance drilling. A total of 56 drill holes (Figure 7, Historical Drill Collars) have been completed with diamond (core) and power (air) drills across the Project area totalling in excess of 3,000m. A comprehensive listing of the drill hole parameters is located in Appendix 1 and 2, documenting the drill hole locations and intercepts respectively. No record of coal quality data for these holes can be located. The location of a representitive sample of the historical drill holes were verified during the site visit.
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Figure 7: Historical Drill Collars
Figure 8: Historical Drill Collar M09
5.9 Recent Exploration: A recent drilling program was completed in April 2012 by PT Genesis Sumber Energy (technical services provider to Coke Resources) using systematic drill plan and finish with total 12 additional drill holes. Six of the holes were drilled to the western extent of the project and six on holes to the eastern extent of the project area (Figure 9, Drill Collar Locations). PT Genesis Sumber Energy interpreted the coal seams into seam A, N, N1 and N2. Salva has identified these coal seams as probable Graha and Tukul. This assumption was made based on the interpretation of geological logging from the historical exploration data, however, it is unclear on specific seam correlation.
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Table 2: Recent Drilling Results- April 2012
Coal Interval Total Hole Easting Northing Elevation Thickness Seam Depth From To m ASC-012D 352288 10009484 71 78 62.3 70.05 7.75 A 44 44.7 0.7 N1 AS-C061C 360547 10013126 112 47.3 44.85 48.5 3.65 N2 ASC-029 353071 10011921 79 91 78.8 85.75 6.95 A ASC-030 352998 10012384 105 70 57.4 64 6.6 A ASC-063 360453 10012741 119 50 45.95 47.5 1.55 N ASC-015 351897 10009707 74 66 53.1 61.35 8.25 A ASC-062 360117 10013027 128 53 44.25 48 3.75 N ASC-060 360161 10013349 108 55.94 44.55 49 4.45 N ASC-014 351902 10010157 70 78.4 64.4 72.55 8.15 A ASC-033 353821 10012391 86 87.7 77.6 83.3 5.7 A ASC-058 360271 10013796 103 50 35 40.1 5.1 N ASC-057 360466 10014160 116 43 37.3 41 3.7 N
Drill holes distributions shown in the Figure 9, which have been completed with diamond and power drills across the Project area with 689.67 m open holes and
80.67 m of coring totalling in excess of 770.34 m. For personal use only use personal For
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Figure 9: Recent drill collar locations
5.10 Coal Quality Analysis:
The Graha seam is sub-bituminous rank and based upon the present information,
appeared to be very consistent throughout the project area. Raw coal from the For personal use only use personal For Graha Seam has typically low ash and low sulphur content. Two outcrop grab samples were taken from a single Armias seam outcrop and were split into field duplicates for the purposes of analysis and quality control. Each sample was submitted to a different laboratory and the results were compared as stipulated in table 3 below. The calorific value for the two samples taken averaged 5245 Kcal/kg
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on an air dried basis (adb). The samples were analysed to ASTM standards by PT. Carsurin, a certified independent coal laboratory in Samarinda. The field duplicates of both samples were tested by PT. Geoservices in Balikpapan with the same methods and ASTM standards. The samples were analysed for Total Moisture-TM, Inherent Moisture-IM, Ash, Volatile Matter-VM, Fix Carbon-FC, Total Sulphur-TS, Gross Caloric Value-GCV and Relative Density-RD. (Table 3).
Table 3: Coal Quality Analysis from Outcrop Samples (Pt Carsurin & Pt Geoservices Laboratory)
Sample Code TM IM Ash VM FC TS GCV RD (% ar) (% adb) (% adb) (% adb) (% adb) (% adb) (kcal/kg adb) PT.CARSURIN CS 001 37.04 18.11 3.83 42.83 35.23 0.5 5,370 1.28 CS 002 36.65 15.9 3.86 43.64 36.6 0.49 5,560 1.31
PT.GEOSERVICES CS 001 39.21 14.08 3.58 43.7 38.64 0.5 5,679 1.35 CS 002 39.97 14.98 3.22 43.18 38.62 0.38 5,647 1.38
Sample Code East North Reference CS 001 357 839 15 323 UTM Zone 50 CS 002 357 839 15 323 North
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5.11 Recent coal quality analysis from drilling:
Three coal quality samples were taken from the recent drilling conducted in April 2012. The samples of the Graha seam were taken from drill holes ASC-016, ASC-023 and ASC-059B. Coal quality analysis ranges are illustrated in Table 4.
Table 4: Coal Quality Analysis Ranges From Recent Drilling
Total Moisture (ar)% Ash (adb)% TS (adb)% GCV (adb) Kcal/kg
From TO From TO From TO From To 34.04 40 3.11 5 0.08 0.2 5250 5775
A comprehensive listing of coal quality analysis from the individual samples taken from each hole is listed in Appendix 7. A full listing of the drill hole locations and intercepts is documented in Appendix 1 & 2.
6.0 Data and Model Review Update
PT Cristian Eka Pratama has supplied detailed geological data and results from the April 2012 drilling programme and previous exploration conducted across the project area which includes: Borehole data in Microsoft Excel file containing coal interval, collar data and coal quality analysis of three coal samples. Topographical map in CAD – dxf file. Geophysical log data of the recent 11 drill holes.
6.1 Borehole Data
Previous Boreholes Data The drill hole data was available in an Excel spreadsheet which contained collar data and lithological information. The data was then manually restructured into Stratmodel format prior to up loading into Minescape which was used to generate model grid and review the data and model. During the reformatting process, all holes data (both survey collar and lithology) were not verified for correlation with geophysical data.
For personal use only use personal For The database contains 56 historical drillholes that were not drilled in a systematic grid and also included twinned holes. The boreholes have different nomenclature that may correlate to the different parties of drilling contractors.
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Updated boreholes Data The data from the recent drilling program was acquired from the April 2012 monthly report. The data was then manually restructured into Stratmodel format prior to uploading the data into Minescape, which was used to generate a model grid and review the data and model.
The updated database contains an additional eleven drill holes (referred to in to section 5.9) that were across the Cristian project area. One of the twelve drill holes had locational issues and was removed from the geological modeling.
6.2 Topography
Previous Topography Surface topography for geological modeling was generated using the topography data and collar survey supplied by Cristian Eka Pratama. There was no information available for the historical of the topographical data whether it was generated by ground survey or by using digital terrain modeling methods. There were 5 holes containing topographical surface to collar discrepancies greater than 2m, with maximum difference of 5.49m in hole PR132. By considering the undulating topography in this project area the discrepancies are considered acceptable within the range of morphology.
Topographical data to the collar survey discrepancies was generated in Minescape and indicated there was no significant anomalies (Table 5-Topographical Surface to Collar ).
Updated Topography Originally surface topography for geological modeling was generated using the topography data and collar survey supplied by Cristian Eka Pratama but there are significant differences with the new collar data range from 20 to 30 m. This was a function of the holes being surveyed using a handheld GPS. At the date of publication a differential GPS survey pickup of the drill hole locations has not been conducted.
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Table 5-Topographical Surface to Collar Discrepancies
DISCREPANCY DATA TOPOGRAPHY VS COLLAR HOLE DIFFERENCE (m) Hole DIFFERENCE (m) 1_2 -0.26 M9 1.15 2A_2 -0.65 PR124 -0.06 2A_3 -0.28 PR125 -0.41 2A_4 0.75 PR126 0.74 2A_5 0.18 PR127 0.55 2_2 0.15 PR128 -1.65 2_3 -0.94 PR131 2.49 2_4 0.13 PR132 5.49 2_4R 0.64 PR132A 1.89 3A_4 0.95 PR132B 0.37 3_3 0.18 PR132C -0.07 3_4 0.21 PR132D 3.68 G015 -0.19 PR133 -1.98 G020 0.24 PR134 -0.61 G037 -0.26 PR166 0.36 G038 -0.68 PR167 -0.37 G042 0.26 PR168 0.25 G043 -0.16 PR169 -0.21 G047 0.00 PR170 0.24 M1 -1.33 PR171 0.08 M13 3.82 PR172 0.84 M17 1.01 PR173 -0.16 M17B 1.14 PR174 -0.37 M24 0.97 PR175 0.42 M25 -0.46 PR176 -0.55 M26 0.12 PR177 0.35 M27 -0.15 PR178 0.39 M5 -0.22 PR179 2.56
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6.3 Geological Modelling A geological model was generated in Minescape software to assist with further exploration targeting and planning. The stratigraphic order of the identified coal seams and respective seam thickness is illustrated below:
Table 6: Coal Seam Stratigraphy and Thickness
DRILLHOLE STATISTICS
Summary Average Minimum Maximum Standard No Seam Data In Thickness Thickness Thickness Deviation Hole (m) (m) (m)
1 UNK1 4 0.75 0.2 1.56 0.67 2 UNK2 2 1.31 0.07 2.56 1.76 3 ARMIAS 8 1.11 0.3 2.2 0.77 4 MELAK 12 1.17 0.5 1.55 0.36 5 GRAHA 25 3.97 1.36 8.8 1.67 6 TUKUL 7 0.99 0.3 2.5 0.76
Coal Seam Modeling
Coal seam modeling parameters include: 1. Interpolator Search Radius Interpolator Search Radius of 2500 m was utilised due to the sparse and irregular spacing of drillholes 2. Interpolator Trend The Planar Method was utilised due to the limited drilling and the drill hole spacing 3. Trend Surface The Graha seam floor was used for trend surface as this is the main seam 4. Maximum Interval Thickness The modelling constrained the maximum thickness to 8.25m in order to honour the integrity of the raw data
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5. Maximum Interval Parting Maximum interval parting applied for geological modelling was 0.1m partings
Table 7- Updated Stratigraphic Order of Seam and the Thickness Statistics Based on Model Parameter
DRILLHOLE STATISTICS No Seam Summary Average Minimum Maximum Standard Data In Thickness Thickness Thickness Deviation Hole (m) (m) (m) 1 GRAHA 11 5.63 1.55 8.25 2.14 2 TUKUL 1 0.60 0.60 0.60 -
Using the 56 historical drill holes with the recent additional 11 drill holes data (Figure 9, drill hole collar locations), a geological model was reviewed with Mincom Minescape Strata Model. This Report only deals with reviewing data and seam modeling. No resources were estimated due to the available data being insufficient to conduct resources estimation in accordance with the JORC Code.
A stratigraphic model was made of all seams which consisted of roof, floor and thickness grid based on available drilling data. Seam floors were generated from borehole data and no structural modeling of faults has been incorporated in this modeling review. This is due to the lack of detailed geological information available. Floor grids were reviewed and any anomalies checked, correlations were corrected if changes were found to be necessary.
The new drill holes data created minor changes on seam structure, especially seam Graha as the main seam. The changes are revealed on the seam Graha contour structure where the seam is smoother on the western extent of the project area and more complex on the eastern extent of the project area. A fault may occur on the east area but more data is required to assure this case. The interpreted seam thickness of Graha becomes thicker after new drill hole data was added. The Graha seam continuity also differed from the previous contour structure on the north area. This occurs because there was no data received on the Graha seam from drill hole data in that area. Changes from the previous model is related to this new data.
Figure 10 is a structure floor contour plan of the Graha seam, which is representative of the structure of the other coal seams. The Graha seam, as a main
For personal use only use personal For seam, was intercepted by 37 boreholes within the depth range of - 19 – 127 meters.
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Figure 10: Graha Seam Floor Contour Structure
Figure 11 is a structure floor contour plan of the Melak seam, which is representative of the structure of the Graha seam in the north eastern extent of the project area. The average thicknesses of the Melak seam approximately 1 meter and was intercepted by 11 drill holes in the depth of 33.5 to 85.7 meters.
For personal use only use personal For Figure 11: Melak Seam Floor Contour Structure
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7 Figure 12: Typical Cross Section
7.0 Proposed Exploration Program and Budgeting
The Cristian Project covers a large area (5,273 Ha) and significant portions have yet to be explored to any level of geological confidence. Substantial geological mapping is required to increase the level of the confidence towards the extent of coal mineralisation. Significant further work is required to estimate a potential resource classification in accordance with the JORC Code (2004). This will require further outcrop mapping, an exploration drilling program, detailed topographic mapping and additional coal quality analysis. The proposed exploration program could potentially identify a greater coal extent throughout the balance of the licence. The proposed field budget is documented below in Table 8: Proposed exploration budget. The map of the exploration drilling plan has been proposed and is shown in Appendix 6. Table 8: Proposed Exploration Budget
Cristian Coal Project
Year 1 (Min. Year 2 (Min. Minimum Year 1 (Max. Year 2 (Max. Maximum Subscription) Subscription) Subscription Subscription) Subscription) Subscription Total Total
Geological Mapping $50,000 - $50,000 $50,000 - $50,000 Diamond Drilling $250,000 $150,000 $400,000 $250,000 $150,000 $400,000
Engineering Studies - $50,000 $50,000 - $50,000 $50,000 For personal use only use personal For Environmental $30,000 $30,000 $60,000 $30,000 $30,000 $60,000 Studies Lidair Survey $40,000 - $40,000 $40,000 - $40,000 Resource Estimation - $50,000 $50,000 - $50,000 $50,000 Total $370,000 $280,000 $650,000 $370,000 $280,000 $650,000
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8.0 Conclusions
The Cristian Project has a reasonable level of demonstrated historical and recent exploration. The data is of variable quality, making high confidence interpretation and assessment of the Project area of limited value. Recent field inspection has revealed coal outcrops of significant extent and was able to substantiate prior exploration activities. The data is sufficient to indicate a potentially viable project, subject to whether a mineral resource and ore reserve can be defined in accordance with the JORC Code, neither of which has occurred.
To potentially substantiate a JORC Code coal resource estimation and statement, a systematic approach to geological exploration of the project is required. This will establish confidence in the geological understanding of the project area and is essential for the quantification of the potential for a coal resource.
Large scale detailed field mapping is essential prior to commencing any other detailed and targeted exploration programs in order to get an appreciation of the stratigraphy and structure of the project area. After this task is completed, an extensive drilling and quality sampling programme shall need designed and executed. This will facilitate the establishment of an extensive data set, supporting the potential coal resource estimation and project valuation.
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References: Friederich, M. et al The geological setting of Indonesian coal deposits, AUSIMM Proceedings No.2, 1999
Horkel, A On the plate-tectonic setting of the coal deposits of Indonesia and Philippines, Mitt. Osterr.geol. Ges, 1990
JORC, 2004. Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) prepared and jointly published by; The Joint Ore Reserve Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Minerals Council of Australia, JORC, December 2004
Santoso, B. & Daulay,B. Geologic and petrographic aspects for coal exploration in Sangatta-East Kalimantan, R&D Centre for Mineral and Coal Technology, Bandung, 2008
Suwarna, N et al Berau coal in East Kalimantan; Its petrographic characteristics and depositional environment, Jurnal Geologi Indonesia, Vol.2 No. 4, 2007
VALMIN, 2005. Code for the Technical Assessment and Valuation of Mineral and Petroleum Assets and Securities for Independent Expert Reports, The VALMIN Code, 2005 Edition
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Glossary:
Term Definition Pertaining to silt, sand and gravel material, transported and deposited by Alluvial a river Clay, silt, sand, gravel or other rock materials transported by flowing water and deposited in comparatively recent geologic time as sorted or semi sorted sediments in riverbeds, estuaries and floodplains, on lakes, Alluvium shores and in fans at the base of mountain slopes and estuaries An intermediate volcanic rock composed of andesine and one or more Andesite mafic minerals Coal with the highest energy content, from 86 to 98% by weight and high Anthracite calorific values Impurities consisting of iron, alumina and other incombustible matter that are contained in coal. Since ash increases the weight of coal, it adds to the cost of handling and can affect the burning characteristics of the Ash coal Assay The testing and quantification of metals of interest within a sample The most common type of coal and characterised by a moisture content of less than 20% by weight and heating value of 10,500 to 14,000 Btu per pound. Bituminous coal is a soft, dense and black coal containing large amounts of carbon, often with well defined bands of bright and dull material. It is used primarily as fuel in steam electric power generation, with substantial quantities used for heat and power applications in Bituminous Coal manufacturing and to make coke. A mixture of two or more coal types or brands. In the case of coke making, blending provides the manufacturer with the potential to mix lower cost poorer coking coals with higher cost hard coking coals and Blends thereby reducing the overall cost of the coke oven feed Coal sample's energy content measured as the heat released on complete combustion in air or oxygen, usually expressed as the amount of heat Calorific Value or (measured in kilocalories) per unit weight of coal (measured in kilograms) Specific Energy or kcal/Kg Clastic Pertaining to a rock made up of fragments or pebbles (clasts) A readily combustible black or brownish-black rock with a composition, including inherent moisture, which consists of more than 50% by weight and 70% by volume of carbonaceous material. It is formed from plant remains that have been compacted, hardened, chemically altered and
For personal use only use personal For Coal metamorphosed by heat and pressure over time.
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Term Definition The degree of alteration (or metamorphism) that occurs as a coal matures from peat to anthracite is referred to as the "rank" of the coal. Low rank coals include lignite and sub-bituminous coals. These coals have a lower energy content because they have a low carbon content. They are lighter (earthier) and have a higher moisture level. As time, heat and burial pressure increases, the rank does as well. High rank coals, including bituminous and anthracite coals, contain more carbon than lower rank coals which results in a much higher energy content. They have a more vitreous (shiny) appearance and lower moisture content than lower rank Coal Rank or Rank coals. Coal deposits occur in layers in a bed of coal lying between a roof and Coal Seam or Seam floor with each layer called a "seam" Hard, dry carbon substance produced by heating coal to a very high temperature in the absence of air and used in the manufacture of iron Coke and steel Coking Coal Coal used to make coke and also referred to as metallurgical coal Medium grained mafic intrusive rock composed mostly of pyroxenes and Dolerite sodium-calcium feldspar. Coal quality data calculated on a theoretical basis in which no moisture is Dry Coal Basis associated with the sample Body of intruding igneous rock that cross cuts the host strata at a high Dyke angle Fracture in rocks along which rocks on one side have been moved relative Fault to the rocks on the other The degree to which coal becomes plastic over certain temperature ranges during the carbonisation process. The measurement of "maximum fluidity" is used by some steel makers, particularly Japanese steel mills, in assessing the ability of coal particles to mix with other coals in a coke oven blend. Maximum fluidity is determined by placing a sample of finely ground coal in a crucible and measuring the speed of rotation of a paddle placed within the crucible which is heated. A gravitational force is applied to the paddle and the maximum rotation of the paddle is measured in dial divisions per minute DDPM. The temperature at which the paddle Fluidity reaches maximum rotation differs for varying coal types. Term used to describe more detailed exploration work over targets Follow up generated by regional exploration Rock type formed by regional metamorphism, in which a sedimentary or igneous rock has been deeply buried and subjected to high temperatures and pressures. Nearly all traces of original structures (including fossils) and fabric (such as layering and ripple marks) are wiped out as the
For personal use only use personal For Gneiss minerals migrate and recrystallise. Coarse grained igneous rock comprising of quartz, feldspar and horblende Granodiorite and/or biotite Metric unit of square measurement of surface or land equal to 10,000 Hectare square meters, or approximately 2,471 acres
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Term Definition Igneous Rocks that have solidified from a magma Intrusion/Intrusive A body of igneous rock that invades older rocks Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of JORC Code Geoscientists and Mineral Council of Australia (JORC), December 2004 cal/g Calories per gram Kabupaten or Second tier of local government in Indonesia, having its own local Regency government and legislative body Kecamatan or District Third tier of local government in Indonesia The lowest ranked coal. Often called "soft" or "brown" coal, it is a brownish-black coal with a carbon content of 25-35%. It has energy values ranging from 15,000-20,000 KJ/Kg (6,300-8,300 BTUs/lb) and high moisture content of up to 45% by weight. Lignite is strictly a thermal coal Lignite and is used as a fuel in power generating plants The various grades of coal suitable for making steel, such as coking coal, which is used to make coke and PCI coal, which is used in the steel making Metallurgical Coal process for its calorific value Rock that been altered by physical and chemical processes involving heat, Metamorphic pressure and derived fluids Form of mining designed to extract minerals that lie near the surface. Overburden is removed to expose the minerals for mining. Rock covering the minerals may be blasted and removed by large draglines or electric Open Cut Mining shovels and trucks. Ore reserves are defined in accordance with clause 28 of the JORC Code as follows:
An ‘Ore Reserve’ is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Ore Reserve Reserves. Coal that is pulverised and injected into a blast furnace. Those grades of
For personal use only use personal For coal used in the PCI process are generally non-coking. However, since such grades are utilised by the metallurgical industry, they are considered to be a metallurgical coal. PCI grade coal is used primarily as a heat source in the steel making process in partial replacement for high quality PCI Coal coking coals which are typically more expensive.
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Term Definition Mineral resources are defined in accordance with clause 19 of the JORC Code as follows:
A ‘Mineral Resource’ is a concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Resources Indicated and Measured categories. Highest tier of local government, sub-national identity in Indonesia, Province having its own local government, headed by a Governor A crystalline metamorphic rock having a foliated or parallel structure due Schist to the recrystallisation of the constituent minerals Sedimentary Term describing a rock formed from sediment Shale Fine grained, laminated sedimentary rock formed from clay, mud and silt Sheets of igneous rock which is flat lying or has intruded parallel to Sills stratigraphy Silts Fine grained sediments, with a grain size between those of sand and clay Small intrusive mass of igneous rock, usually possessing a circular or Stocks elliptical shape in plan view Strata Sedimentary rock layers Stratigraphic Composition, sequence and correlation of stratified rocks Strike Horizontal direction or trend of a geological structure Dull black coal with carbon content of 35-45%, energy content varies in the range of 20,000-27,000 MJ/Kg (8,300-10,500 BTUs/lb) and moisture content generally between 20 and 30% by weight. Sub-bituminous coal generally has a lower sulphur content which makes it attractive for combustion purposes. It is primarily used as a fuel source in thermal Sub-bituminous coal power plants and for industrial heating purposes. One of the elements present, in varying quantities, in coal that contributes to environmental degradation when coal is burned. Sulphur dioxide is produced as a gaseous by-product of coal combustion. Low sulphur coal has a variety of definitions, but is typically used to describe Sulphur coal consisting of 1% or less sulphur Coal that is used primarily for its heating value. Thermal coal tends not to have the carbonization properties possessed by metallurgical coals. Most Thermal Coal thermal coal is used to produce electricity in thermal power plants.
Tonnes Metric ton or tonne which is equivalent to 1,000 kilograms For personal use only use personal For
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Term Definition The VALMIN Code establishes standards of best practice for the technical assessment and valuation of mineral and petroleum assets and the securities by geologists involved in the preparation of Independent Expert Reports. The VALMIN Code is binding on the members of the AusIMM when preparing public Independent Experts Reports required by the VALMIN Code Corporations Act concerning mineral and petroleum assets and securities. Those products, exclusive of moisture, released by material as gas or Volatile Matter vapor Volcanic Formed or derived from a volcano
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Appendix 1: Drill Collars Cristian Project
Historical Drill Holes: Hole East North Elevation Depth Azimuth Dip Drilling Type 1_1H 351724.9 10008054 94.93 62.7 0 -90 Diamond 1_2 353276.3 10008056 86.85 109.5 0 -90 Diamond 2A_2 353690.2 10012546 119.17 68 0 -90 Diamond 2A_3 355508.7 10013443 107.87 109.4 0 -90 Diamond 2A_4 357631.0 10013080 139.77 153 0 -90 Diamond 2A_5 359696.0 10014278 155.8 63.46 0 -90 Diamond 2_2 352798.9 10010951 120.14 68.7 0 -90 Diamond 2_3 356223.0 10011492 133.81 105 0 -90 Diamond 2_4 358864.3 10012045 119.54 70.2 0 -90 Diamond 2_4R 358911.9 10012001 128.61 36.42 0 -90 Diamond 3A_4 358437.0 10016458 136.69 102.4 0 -90 Diamond 3_3 357693.0 10014531 128.92 100.5 0 -90 Diamond 3_4 360668.9 10015656 155.58 41.3 0 -90 Diamond G012 351893.0 10012049 126.21 75 0 -90 Diamond G015 352386.0 10011493 109.8 75 0 -90 Diamond G017 351820.7 10011033 117.88 76.5 0 -90 Diamond G020 352367.0 10010521 91.75 75 0 -90 Diamond G022 351839.7 10009997 98.74 71 0 -90 Diamond G026 352303.1 10009500 97.56 75 0 -90 Diamond G035 352169.8 10008584 94.02 71.35 0 -90 Diamond G037 352006.7 10008099 89.05 75 0 -90 Diamond G038 352621.2 10007933 86.72 75 0 -90 Diamond G042 352109.8 10007505 116.92 75 0 -90 Diamond G043 353007.7 10007394 85.75 75 0 -90 Diamond G047 352764.4 10006886 96.45 75 0 -90 Diamond M1 360675.0 10014452 148.04 48 0 -90 Diamond M5 360738.5 10013858 147.11 61.3 0 -90 Diamond M9 360615.4 10013565 169.79 78.45 0 -90 Diamond M13 360678.9 10012946 128.66 51 0 -90 Diamond M17 360699.3 10015102 165.5 37.37 0 -90 Diamond M17B 360698.4 10015102 165.39 82.3 0 -90 Diamond M24 360224.0 10013462 163.45 76.5 0 -90 Diamond For personal use only use personal For M25 360221.1 10012989 134.77 55.3 0 -90 Diamond M26 359685.3 10014275 158.04 135 0 -90 Diamond M27 359309.1 10014850 121.43 60.6 0 -90 Diamond PR124 357808.3 10015381 116.38 12 0 -90 Power
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Hole East North Elevation Depth Azimuth Dip Drilling Type PR125 357830.9 10015346 114.5 12 0 -90 Power PR126 357786.5 10015436 116.56 12 0 -90 Power PR127 356465.4 10014709 118.86 12 0 -90 Power PR128 356465.9 10014738 121.36 8.46 0 -90 Power PR131 356334.6 10015126 133.76 12 0 -90 Power PR132 356364.7 10015133 138.71 12 0 -90 Power PR132A 356354.1 10015127 139.44 5.3 0 -90 Power PR132B 356352.4 10015120 139.23 4.35 0 -90 Power PR132C 356343.3 10015119 137.1 14.4 0 -90 Power PR132D 356370.9 10015130 140.96 14.4 0 -90 Power PR133 356310.5 10015172 138.25 14.8 0 -90 Power PR134 356325.4 10015080 128.45 12.6 0 -90 Power PR166 358673.3 10016471 143.28 14.4 0 -90 Power PR167 358654.9 10016495 139.14 14.4 0 -90 Power PR168 358590.6 10016462 143.85 14.4 0 -90 Power PR169 358564.5 10016448 140.93 14.4 0 -90 Power PR170 356064.4 10012157 112.75 14.4 0 -90 Power PR171 356039.5 10012203 103.43 14.4 0 -90 Power PR172 355671.7 10011679 114.28 14.4 0 -90 Power PR173 355674.6 10011632 109.42 14.4 0 -90 Power PR174 355644.2 10011648 107.49 14.4 0 -90 Power PR175 355474.5 10011910 104.45 14.4 0 -90 Power PR176 355432.6 10011912 105.34 14.4 0 -90 Power PR177 355504.6 10011940 101.32 59 0 -90 Diamond PR178 353902.7 10012010 124.88 45 0 -90 Diamond PR179 353897.0 10012033 124.34 14.4 0 -90 Power PR313 351687.2 10011395 96.64 14.4 0 -90 Power PR314 351686.7 10011203 94.92 14.4 0 -90 Power PR315 351756.2 10011179 95.44 14.4 0 -90 Power
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Recent Drill Collars
Hole East North Elevation Depth Azimuth Dip Drilling Type ASC_012D 352288 10009484 61 78 0 -90 Diamond ASC_029 353071 10011921 96 91 0 -90 Diamond ASC_030 352998 10012384 90.5 70 0 -90 Diamond ASC_063 360453 10012741 104 50 0 -90 Diamond ASC_015 351897 10009707 68.5 66 0 -90 Diamond ASC_062 360117 10013027 106.3 53 0 -90 Diamond ASC_060 360161 10013349 109 55.94 0 -90 Diamond ASC_014 351902 10010157 79.5 78.4 0 -90 Diamond ASC_033 353821 10012391 98.5 87.7 0 -90 Diamond ASC_058 360271 10013796 105 50 0 -90 Diamond ASC_057 360466 10014160 105.5 43 0 -90 Diamond
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Appendix 2: Identified Seams
Historical Drill Holes: Hole Seam From To Interval 1_1H UNK1 29 29.8 0.8 1_1H UNK2 37 38.2 1.2 1_1H ARMIAS 38.96 39.76 0.8 1_1H MELAK 44.64 46.8 2.16 1_2 GRAHA 74.44 80.5 6.06 1_2 TUKUL 94 96.5 2.5 2A_4 UNK1 16.68 18.24 1.56 2A_4 ARMIAS 66.72 68.92 2.2 2A_4 MELAK 86.2 87.44 1.24 2A_5 GRAHA 60.3 63.46 3.16 2_3 ARMIAS 36.35 36.8 0.45 2_3 MELAK 46.24 47.57 1.33 2_4 UNK1 6.18 7.22 1.04 2_4 ARMIAS 59.78 61.64 1.86 3A_4 TUKUL 8.44 9.8 1.36 3_3 ARMIAS 24.6 26.55 1.95 3_4 MELAK 3.2 3.7 0.5 3_4 GRAHA 30.98 35.05 4.07 G012 GRAHA 41.08 48.04 6.96 G015 GRAHA 61.24 69.32 8.08 G017 GRAHA 64.2 72.44 8.24 G020 GRAHA 61.32 69.92 8.6 G022 GRAHA 58.6 67.4 8.8 G026 GRAHA 64.4 72.1 7.7 G035 GRAHA 51.86 56.84 4.98 G037 UNK2 50.92 53.48 2.56 G037 ARMIAS 60.48 61.52 1.04 G038 GRAHA 69.38 73.44 4.06 M1 GRAHA 36.76 40.9 4.14 M5 GRAHA 45.8 50.4 4.6 M5 TUKUL 58.54 59.56 1.02 M9 MELAK 21.2 22.06 0.86 M9 GRAHA 70.7 75.2 4.5
For personal use only use personal For M13 GRAHA 37.96 42.7 4.74 M17 UNK1 6.07 6.27 0.2 M17B UNK1 6.1 6.3 0.2 M17B UNK2 53.8 53.87 0.07 M24 MELAK 16.04 17.36 1.32
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M24 GRAHA 66.92 71.78 4.86 Hole Seam From To Interval M25 GRAHA 42.68 47.2 4.52 M26 GRAHA 60.84 64 3.16 M26 TUKUL 76.68 77.48 0.8 M27 GRAHA 13.08 14.44 1.36 PR124 GRAHA 3 6.4 3.4 PR124 TUKUL 7.5 8.1 0.6 PR125 GRAHA 3 6 3 PR125 TUKUL 7.7 8.1 0.4 PR126 GRAHA 4.2 7.7 3.5 PR126 TUKUL 11 11.3 0.3 PR127 GRAHA 3.4 6.8 3.4 PR128 GRAHA 3.8 6.8 3 PR132 GRAHA 10 11.96 1.96 PR132C MELAK 2.6 4.1 1.5 PR133 MELAK 6.6 7.8 1.2 PR134 GRAHA 2.4 4.35 1.95 PR166 GRAHA 3.4 6.3 2.9 PR167 GRAHA 4.6 7.3 2.7 PR168 GRAHA 6 9.8 3.8 PR169 GRAHA 3.95 7.6 3.65 PR170 ARMIAS 9.8 10.1 0.3 PR170 MELAK 10.6 11.8 1.2 PR172 ARMIAS 3.8 4.4 0.6 PR173 ARMIAS 3.15 3.7 0.55 PR175 MELAK 3.3 4.6 1.3 PR176 MELAK 4.05 5.6 1.55 PR177 MELAK 3.75 5.3 1.55 PR178 MELAK 2.5 3 0.5
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Recent Drill Holes: Hole Seam From To Interval ASC_012D GRAHA 62.3 70.05 7.75 ASC_029 GRAHA 78.8 85.75 6.95 ASC_030 GRAHA 57.4 64 6.6 ASC_063 GRAHA 45.95 47.5 1.55 ASC_015 GRAHA 53.1 61.35 8.25 ASC_062 GRAHA 44.25 48 3.75 ASC_060 GRAHA 44.55 49 4.45 ASC_014 GRAHA 64.4 72.55 8.15 ASC_033 GRAHA 77.6 83.3 5.7 ASC_058 GRAHA 35 40.1 5.1 ASC_058 TUKUL 49.2 49.8 0.6 ASC_057 GRAHA 37.3 41 3.7
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Appendix 4: Photographs of Site Visit
Figure 13: Armias Seam in the Creek
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Figure 15: Planned Drill Collars
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Appendix 7: Recent Coal Quality Results
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Independent Geologist’s Report Taliwang GOLD PROJECT IN SUMBAWA ISLAND West Nusa Tenggara Province Indonesia
Prepared For
Coke Resources Limited
36 Outram Street, West Perth, WA, 6050 December 2012
For personal use only use personal For Author PT SALVA RESOURCES,INDONESIA
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Contents
Executive Summary ...... 5 Disclaimer...... 7 List of Abbreviations ...... 8 1. Introduction ...... 10 1.1 Terms of references ...... 10
1.2 Qualifications and Experience ...... 10
1.3 Statement of Salva Resources Independence ...... 11
1.4 Warranties ...... 12
1.5 Indemnities ...... 12
1.6 Consents ...... 12
2. Sumbawa General Information ...... 13 3. Taliwang Property ...... 14 3.1 Tenure ...... 14
3.2 Location and Access ...... 14
3.3 Physiography ...... 16
4. Geological Setting...... 17 4.1 Regional Geology Setting ...... 17
4.2 Property Geology ...... 18
5. Historical Exploration ...... 19 6. Lemonga Prospect ...... 24 6.1 Prospect Geology ...... 24
6.2 Mineralisation Type ...... 27
For personal use only use personal For 6.3 Mineralisation ...... 28
6.4 Epithermal Au-Ag Targets ...... 29
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6.5 Geophysics ...... 35
6.6 Mapping, Petrological and Structural Studies ...... 38
6.7 Surface Geochemistry ...... 39
6.8 Lemonga Drilling ...... 42
7. Semoan-Ramit-Raboya Prospect ...... 47 7.1 Prospect Geology ...... 47
7.2 Mineralisation ...... 49 7.2.1 Semoan Prospect ...... 49 7.2.2 Raboya Prospect ...... 50 7.2.3 Ramit Prospect ...... 52
7.3 Geophysics ...... 52
7.4 Geochemistry ...... 56
7.5 Drilling ...... 60
8. J3 Prospect ...... 61 8.1 Prospect Geology ...... 61
8.2 Mineralisation ...... 62
8.3 Geophysics ...... 63
8.4 Drilling ...... 63
9. Sampling Method and Approach ...... 66 9.1 BLEG Sampling ...... 66
9.2 Stream Sediment Sampling ...... 66
9.3 Core Sampling ...... 67
10. Sample Preparation, Analysis and Security ...... 68
11. Data Verification ...... 70 For personal use only use personal For 12. Interpretation and Conclusion ...... 73 12.1 Lemonga Prospect...... 73
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12.2 Semoan-Ramit-Raboya Prospect ...... 74
12.3 J3 Prospect ...... 75
13. Recomendations ...... 76 13.1 Lemonga Prospect...... 76
13.2 Semoan-Ramit-Raboya Prospect ...... 77
13.3 J3 Prospect ...... 77
14. Exploration Budget ...... 78 Referencences ...... 79 Glossary ...... 81 Appendix 1. Drill hole collars, Lemonga Prospect ...... 91 Appendix 2. Drill holes Intercepts at Lemonga Prospect ...... 94 Appendix 3. Drill Hole Collars, Ramit Prospect ...... 97 Appendix 4. Assay Information, Ramit Prospect ...... 98 Appendix 5. Drill Hole Collars, J3 Prospect ...... 111 Appendix 6. Assay Information, J3 Prospect ...... 112
Figures Figure 1: Location of Taliwang IUP (courtesy of Southern Arc Minerals Inc.)...... 15 Figure 2: Taliwang Project Regional Geological Setting...... 18 Figure 3: Thirty six (36) geochemical anomalies from regional stream survey Newmont 1987- 1988, including Lemonga is identified as low-sulphidation Au vein system...... 21 Figure 4: Location of Taliwang Project...... 25 Figure 5: Preliminary Taliwang Aeromagnetic Interpretation...... 26 Figure 6: Conceptual geological model for the styles of mineralisation recognised in magmatic arcs (from Corbett, 2009 and references therein)...... 29 Figure 7: Taliwang Project - Lemonga prospect Geology and Alteration Map ...... 34 Figure 8: Long sections, median fluid inclusion homogenisation temperatures of the Amy, Betty/Cici and Evy vein systems ...... 35 Figure 9: Taliwang Project, Lemonga Prospect- CSAMT resistivity highs projected to surface vs
quartz vein distribution and drill hole locations...... 37 For personal use only use personal For Figure 10: Taliwang BLEG Gold and Copper Geochemistry...... 40 Figure 11: Lemonga Prospect Significant Surface Geochemistry...... 41 Figure 12: 3D Lemonga Prospect - Drilling Intercepts Lemonga quartz vein...... 44
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Figure 13: Lemonga Prospect - Amy Vein Long Section Looking WNW...... 44 Figure14: Lemonga Prospect - Betty/Cici Veins Long Section Looking WNW...... 45 Figure15: Lemonga Prospect - Desy Vein Long Section Looking W...... 46 Figure16: Lemonga Prospect - Evy Vein Long Section Looking W...... 47 Figure17: Semoan-Ramit-Raboya Prospect - Geology and Alteration...... 48 Figure18: IP Line Locations - Geology alteration...... 54 Figure19: Proposed Diamond Drill Holes over Inversion Model of Dipole-Dipole IP Survey...... 55 Figure20: Semoan Prospect-Soil Sample Location and Au Geochemistry...... 56 Figure21: Raboya Prospect Soil Sample Location and Au Geochemistry...... 58 Figure22: Semoan Prospect Rock Sample Location and Au Geochemistry...... 59 Figure23: Composite Drill Cross Section (Line D) - Ramit Prospect...... 60 Figure24: Geology and Alteration Map -J3 Prospect...... 61
Tables Table 1: BHP-Aneka Tambang Drilling Results...... 19 Table 2: Historical Outcrop Channel Geochemistry Results...... 22 Table 3: Meaningful Phase 1 Intercepts. A full listing of the results from Phase 1 and Phase 2 drilling is documented in Appendix 2...... 42 Table 4: Meaningful Phase 2 Drilling Intercepts. A full listing of the results from Phase 1 and Phase 2 drilling is documented in Appendix 2...... 43 Table 5: Assay Method / Detection Limit...... 69 Table 6: Lemonga Prospect Phase 1 & 2 Drill Programs Sorted Comparison of Standards with Laboratory (ITS) Au Assays...... 72 Table 7: Proposed Exploration Budget...... 78
Plates Plate 1: Amy vein displays an earlier auriferous crustiform-colloform-bladed, low temperature event disrupted by a later relatively higher temperature coarser milky to amethystic gold-poor quartz influx...... 30 Plate 2: Post-mineral tectonic brecciation is commonly developed in certain sections of the veins – Central Amy vein...... 30 Plate 3: Typical quartz textures found in veins in the north and east of Semoan Prospect; milky quartz with hematite/limonite infill- low sulphidation style mineralisation...... 49 Plate 4: Oxidised surface sample; vuggy quartz alteration typically underlying the Olat Raboya area. Limonite encrusted veins and hematite infilled micro fractures are common...... 51
For personal use only use personal For Photograph Photograph 1: Taliwang Physiography...... 16
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Executive Summary
Coke Resources Limited (“Coke Resources”) commissioned Salva Resources Pty Ltd (“Salva” or “Salva Resources”) to undertake an Independent Technical review of the Lemonga gold-silver prospect. The prospect is located within the Taliwang IUP in the Western Sumbawa Regency of West Nusa Tenggara (NTB) Province, Indonesia. The Taliwang IUP is located on the western edge of the island of Sumbawa, administratively within the Western Sumbawa regency of West Nusa Tenggara (NTB) Province, Indonesia (Figure 1). Within the Taliwang property, the Lemonga Au-Ag prospect is located to the northwest of Taliwang, the principal town of the Western Sumbawa Regency. Taliwang can be reached by flying to Praya International Airport, in Central Lombok Regency, then driving to Kayangan Port at East Lombok, followed by a ferry ride to Poto Tano, in west Sumbawa. From there it is another short drive to Taliwang.
The Taliwang IUP comprises a single tenement area covering 31,204 hectares. The property was originally the subject of a Contract of Work (CoW) application, granted in principle on July 21, 1998. The tenement area subsequently underwent processing to transition to the new permit licensing system, with the IUP (number 06ISB-KSB10) issued by the regent of West Sumbawa on July 9, 2010. The IUP allows for the company to pursue exploration activities over a period of 6 six years. Southern Arc holds a 90% equity position to the Taliwang property, with the remaining interest held by the West Sumbawa Regency.
The island of Sumbawa lies at a major structural discontinuity, on the east-west trending Sunda- Banda magmatic arc, that marks the convergence of three major tectonic plates. The geology of Sumbawa is characterised by an island-arc type volcano-sedimentary succession which formed mainly as a result of the subduction of the Indo-Australian plate beneath the Sunda-Banda Arc, during the upper Tertiary. The southern parts of Sumbawa Island are underlain by Neogene calc- alkaline volcanic and sedimentary rock sequences associated low-K intermediate intrusions, while younger volcanic rocks extensively cover the north of the island.
With the discovery of the world class Batu Hijau Cu-Au porphyry deposit, 20km south of the Taliwang township, a previously unknown mineral district has been recognised. Exploration by PT. Newmont Nusa Tenggara (PT. NNT) has identified porphyry intrusions and related mineral systems including porphyry copper-gold, high sulphidation gold-copper and mesothermal to epithermal precious base-metal deposits. Potential for other derivative hydrothermal occurrences such as sedimentary-hosted gold, gold ± base-metal skarns, etc also exists.
Three main prospect areas have been defined on the Taliwang property: Lemonga (Epithermal Au-Ag), Semoan-Ramit-Raboya (High Sulphidation Epithermal and Porphyry Cu-Au) and J3 (Sedimentary-Gold Hosted). The Lemonga Prospect is a low-sulphidation epithermal quartz vein system over which surface mapping by Southern Arc has confirmed prevalent argillic alteration
within a hydrothermal upflow area, approximately 1.5 km east-west by 1.5 km north-south. Five For personal use only use personal For auriferous quartz vein targets, named Amy, Betty, Cici, Desy and Evy, have been identified within the alteration zone. The best exposed vein, the Amy vein, has a mapped strike extent of at least 950 m and true widths of 4-15 m, reflecting the pinch-and-swell vein geometry. Gold
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and silver are associated with sulphides of pyrite, galena, sphalerite and minor chalcopyrite that occur dominantly as fine disseminations and vein fill.
A detailed ground CSAMT (resistivity) survey over the prospect area shows moderate to strongly resistive linear targets, more or less corresponding to the position and strike of the known veins and breccia zones, with possible significant lateral extensions at depth.
Exploration drilling by Southern Arc Minerals Inc, consisting of two phases of shallow diamond drilling (56 holes for 7,154.25 m)(Table 1 and Appendices 1 and 2) at Lemonga, has confirmed both lateral and vertical development of the mineralised structures. Combined evidence from drilling, petrological studies and CSAMT signatures suggests that a substantial portion of the epithermal vein system remains largely untested and that there is possibility for quartz vein continuation at depth, although increasing gold grades with depth below the current drilling levels is still uncertain.
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Disclaimer
This report has been prepared exclusively for Coke Resources Limited (the Client) by Salva Resources. All data and information used in the preparation of this report has been supplied by Coke Resources Limited, based on exploration and drilling work carried out by a third party, Southern Arc Minerals Inc. Salva has exercised all due care in reviewing the data and information provided, but was not witness to the drilling and exploration program that was carried out, and as such, the accuracy of the results and conclusions from the review are entirely reliant on the accuracy and completeness of the data supplied at the time of preparation of the report. Salva does not accept responsibility for any errors or omissions in the supplied information and does not accept any consequential liability arising from commercial decisions or actions resulting from them, nor any changes made to the data provided after the close of business on 3 December 2012.
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List of Abbreviations
Abbreviation Definition ‘ or min Minutes “ or sec Seconds % per cent < less than > greater than o or deg Degrees oC degrees Celsius AICD Australian Institute of Company Directors ASIC Australian Securities and Investment Commission AusIMM Australasian Institute of Mining and Metallurgy CAPEX capital expenditure DEM or DTM digital elevation model or digital terrain model DMS degrees minutes seconds (latitude/longitude) E east E-W east-west g/cc grams per cubic centimetre Ha Hectare K Thousand Kg Kilogram Km Kilometre KP Kuasa Pertambangan- licence for exploration and exploitation of mineral resources issued by Department of Mines M Metre M million m RL metres reduced level mE metres east mN metres north Mt million tones Mtpa million tonnes per annum N north NE northeast NNE north-northeast PT Perusahaan Terbatas (Indonesian: Limited Business) RD relative density S south SE SE SW southwest
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Abbreviation Definition WGS84 World-Geodetic System 1984 (WGS84)- geodetic reference system used by GPS WNW west-northwest
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1. Introduction
1.1 Terms of references Coke Resources Limited (“Coke Resources”) commissioned Salva Resources Pty Ltd / PT Salva Indonesia (“Salva” or “Salva Resources”) to undertake an Independent Technical revision of the Taliwang gold-silver prospect. The prospect is located within the Taliwang IUP in the Western Sumbawa regency of West Nusa Tenggara (NTB) province, Indonesia.
The Taliwang IUP comprises a single block covering 31,204 hectares. The property was originally the subject of a Contract of Work (CoW) application, granted in principle on July 21, 1998. Following enactment of new mining laws in Indonesia on January 12, 2009, the property underwent a process to transition from the CoW application to the new permit licensing system, wherein IUPs (mining business licenses) are granted to carry out exploration and mining activities. The IUP (number 06ISB-KSB10), issued by the regent of West Sumbawa on July 9, 2010, was subsequently granted for the Taliwang property. The IUP allows for the company to pursue exploration activities over a period of 6 six years. The IUP then can be converted, allowing the company to undertake commercial production for a minimum of 20 years. Southern Arc holds an equity position to the Taliwang property, with the remaining interest held by the West Sumbawa Regency.
The Taliwang property hosts a number of prospects. Of these, three main targets have been defined: Lemonga (Epithermal Au-Ag), Semoan-Ramit-Raboya (High Sulphidation Epithermal and Porphyry Cu-Au) and J3 (Sedimentary-Gold Hosted). The report has been prepared by Salva geologists based on data provided by Coke Resources and its counterpart (Southern Arc Minerals). The data utilised includes drilling data, limited surface exploration data and existing technical reports. The Salva geologists also made limited observations of vein outcrops and reviewed the drill core from selected drill holes during a site visit. The report does not express an opinion of the economic value of the mineral assets, and also does not contain any comments pertaining to the socio-political and environmental aspects.
The legal status associated with the tenure of the mineral property is addressed by an expert other than Salva and these matters have not been independently verified by Salva. The present status of the tenements in this report is based on information provided by Coke Resources and the report has been prepared on the assumption that the tenements are, or will prove to be, lawfully accessible for evaluation and development.
1.2 Qualifications and Experience Salva Resources is a global provider of key technical and commercial services for exploration, mining and investment companies. These services extend across the entire project development
For personal use only use personal For timeline: exploration, geological modeling, mine planning, site safety management, marketing, due diligence and other commercial services.
Salva’s growth has been realised through the delivery of key technical services on budget and on time. We have specifically expanded into key international resource hub, which enables our
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core range of services to be utilised anywhere in the world. Each office is operated and managed by local experts with on-the-ground knowledge, who are working for clients such as Rio Tinto, Vale, Peabody, Xstrata and BHPB.
Salva maintains a reputation based on the ability to work to best industry standards on projects of all sizes and complexities. This level of service is made possible through the combination of a highly credentialed technical team with the training, experience and ability to assess each project’s commercial viability and to drive a venture forward.
In compiling this Report, PT Salva Indonesia has relied upon information supplied by Coke Resources Limited and associated partners / parties. Additional or new information or data was generated and verified by PT Salva Indonesia.
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Herry Susanto. Mr. Herry Susanto, a full-time employee of PT Salva Indonesia. This person 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.
This document was peer-reviewed by Dr Louis W. Schurmann, who is a Member of The Australasian Institute of Mining and Metallurgy and a ‘Recognised Overseas Professional Organisation’ (‘The South African Council for Natural Scientific Professions’) included in a list promulgated by the ASX from time to time. Dr Louis W. Schurmann is a full time employee of Salva Resources and holds the position of Principal Geologist (Metals). Dr Louis W. Schurmann 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’. Dr Louis Schurmann consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
1.3 Statement of Salva Resources Independence Neither Salva Resources, nor any of the authors of this Report, have any material present or contingent interest in the outcome of this Report, nor do they have any pecuniary or other interest that could be reasonably regarded as being capable of affecting their independence or that of Salva Resources.
Salva Resources has no prior association with Coke Resources in regard to mineral assets that are the subject of this Report. Salva Resources has no beneficial interest in the outcome of the technical assessment being capable of affecting its independence.
Salva Resources’ fee for completing this Report is based on its normal professional daily rates
For personal use only use personal For plus reimbursement of incidental expenses. The payment of that professional fee is not contingent upon the outcome of the report.
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1.4 Warranties Coke Resources has represented to Salva Resources that full disclosure has been made of all material information and that, to the best of its knowledge and understanding, such information is complete, accurate and true.
1.5 Indemnities As recommended by the VALMIN Code, Coke Resources has agreed to provide Salva Resources with an indemnity under which Salva Resources is to be compensated for any liability and/or any additional work or expenditure resulting from any additional work required;
which results from Salva Resources reliance on information provided by Coke Resources or to Coke Resources not providing material information; or
which relates to any consequential extension workload through queries, questions or public hearings arising from this report.
1.6 Consents Salva Resources consents to this Report being included in a Prospectus to be lodged with the Australian Securities and Investments Commission (ASIC), on or about December 2012, in the form and the context in which the technical assessment is provided and not for any other purpose.
Salva Resources provides this consent on the basis that the technical assessments expressed in the Summary and in the individual sections of this Report are considered with, and not
independently of, the information set out in the complete Report and the Cover Letter. For personal use only use personal For
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2. Sumbawa General Information
The island of Sumbawa lies to the east of Bali and Lombok Islands well-known for tourism within Indonesia. Sumbawa island is the biggest island of the Province of Nusa Tenggara Barat. It stretches EW for 300 km and varies locally in width from 15 to 90 km.
Although the whole island is referred to as Sumbawa, locally this refers to the western half of the island. The island comprises of four regencies: Sumbawa Barat (capital: Taliwang) in the far west and Sumbawa Besar (capital: Sumbawa Besar) in the western part, Dompu (capital: Dompu) in the central east and Bima (capital: Bima) in the eastern part of the island.
Sumbawa Island is home to a population of around 1.33 million people (decennial Census 2010). There are two main ethnic groups; the Tau Samawa, who mainly reside in the Sumbawa district, and the Dou Mbojo, who live in the Bima district. Despite regional cultures differences, the island is heavily influenced by Sulawesi culture, with many coastal villages settled by Bugis and Makassarese settlers. The majority of the Sumbawa community embraces Islamic religion, although local tradition remains strong, with many still carrying out animistic practices.
The climate on Sumbawa is wet tropical, subject to the seasonal influences of the northwest monsoon from November to March and the drier southeast trade winds from June to September. Rainfall in the mountain ranges to the east of the island ranges between 2375-4200 mm per year and decreases signicantly towards the coast with values from 1240-1850 mm per year. Daily temperatures typically range from 26 to 31 °C, reducing to a low of 22 to 24 °C overnight. Relative humidity can range between 65 and 100%.
The majority of the population work in agriculture and the island has been long recognised as a region rich in natural resources, including its honey, sappan wood and sandalwood. The island is also known for the world class Batu Hijau Cu-Au porphyry deposit, located in the southwestern extreme of Sumbawa.
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3. Taliwang Property
3.1 Tenure The Taliwang property covers an area of 31,204 hectares, operating under the Mining Business License (IUP) number 06ISB-KSB10 which was granted by the Regent of West Sumbawa on July 9, 2010. The IUP is comprised of two stages, with potential for extensions. Over a period of 6 years, the (initial) exploration stage permits the company to undertake exploration activities through to the conclusion of a feasibility study (expiry date July 8, 2016). The IUP then can be converted to a second stage, allowing the Company to undertake commercial production on this property for a minimum of 20 years. The IUP also allows for two potential 10 year extensions.
The Taliwang IUP is bounded at its southern end by PT. NNT’s 4th generation CoW. This property is home to Newmont’s world class Batu Hijau Cu-Au mine.
Southern Arc holds an equity position to the Taliwang property, with the remaining 10% interest held by the West Sumbawa Regency. This agreement, the first of its kind in Indonesia, ensures that the West Sumbawa Regency’s interest is free-carried throughout the life of the project and is non-dilutable, making the local government a direct beneficial owner in the property.
The legal status associated with the tenure of the property has not been independently verified by Salva. The report has been prepared on the assumption that the tenement is, or will prove to be, lawfully accessible for evaluation and development.
3.2 Location and Access The Taliwang IUP is located on the western edge of the island of Sumbawa, administratively within the Western Sumbawa regency of West Nusa Tenggara (NTB) province, Indonesia (Figure 1). It is positioned between latitudes 08o37’0”S to 08o52’0”S and longitudes 116o48’02” to 116º58’0”E (Transverse Mercator Projection).
Within the Taliwang property, the Lemonga Au-Ag prospect is located to the northwest of Taliwang, the principal town of the Western Sumbawa Regency (population 114,754, decennial Census 2010). Taliwang can be reached by flying to Praya International Airport, in Central Lombok Regency, then driving eastward for approximately 1.5 hours to Kayangan Port at East Lombok. A two hour ferry ride on the Lombok-Sumbawa ferry service then takes you to Poto Tano, in west Sumbawa. From here, the drive to Taliwang is approximately 0.5 hours journey.
The majority of the Taliwang property is covered by a network of local sealed and unsealed roads. Taliwang infrastructure, along with services available from the Batu Hijau mine development located approximately 40 km to the south of Taliwang, are sufficient to meet the majority of company’s logistical requirements for exploration.
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Figure 1: Location of Taliwang IUP (courtesy of Southern Arc Minerals Inc.).
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3.3 Physiography The Taliwang IUP area is semi-rugged hilly terrain, rising to a maximum of 604m (Mount Raboya), separated by wide alluvial-filled fault valleys of N-S and E-W orientations, reflecting the strong regional structural control. Large alluvial valleys of the Ene River predominate in the central parts of the property, with extensive lowland coastal plains developed west of the Taliwang township.
The tenement area comprises designated areas of Production Forest (29.7% ofthe IUP area), Protected Forest (10.9% of the IUP area) and Conservation Forest (3.7% of the IUP area). In line with the National Act No. 41 (Year 1999) on Forestry, the company requires a forestry permit from the Ministry of Forestry in order to explore areas of forest designated as protected and/or production. Areas that have no forestry designation (55.7% of the IUP area) are subject only to local regency regulations. Exploration and mining activities are not allowed within Conservation Forest designated areas.
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4. Geological Setting
4.1 Regional Geology Setting Sumbawa Island lies in the central part of Indonesia’s tectonically active, east-west trending Sunda-Banda magmatic arc that marks the convergence of three major tectonic plates (Hamilton 1979). The geology of Sumbawa is characterised by an island-arc type volcano- sedimentary succession of Late Oligocene to Quaternary age, formed mainly as a result of the subduction of the Indo-Australian plate beneath the Sunda-Banda Arc.
The southern parts of Sumbawa, where significant known porphyry related Cu-Au and epithermal Au deposits are located, comprises oceanic crust overlain by low-K, calc-alkaline to weakly alkaline andesitic volcanic and interbedded volcaniclastic rocks, associated low-K intermediate intrusions and shallow marine sedimentary rocks and limestones (Garwin, 2002). Overlying dacitic rocks are locally mapped in the region, which mainly occupy higher topography.
The youngest rocks in the region, such as laharic breccia, are products of Recent and Quaternary volcanism and are generally located in the north of the island.
A series of eroded, overlapping volcanic centres with associated fringing sediments make up the Tertiary arc, and are represented by a thick pile of andesitic pyroclastics, flows, intermediate intrusives, shallow marine sediments and limestones. The sequence is exposed in the southern two thirds of western Sumbawa, with elevations up to 1500 m. Tertiary rocks are also evident in the north of Sumbawa where they are thought to form the basement rocks to more recent volcanism.
Intrusive rocks are commonly exposed in an east-west belt in southern Sumbawa. Older intrusives are commonly diorites and microdiorites and occur as dykes and stocks intruding the volcanics and sediments. Spatial and temporal relation between intrusion, hydrothermal alteration and mineralisation, either in porphyry Cu-Au or low sulphidation vein systems, appears to occur in this region. A tonalite intrusion series at Batu Hijau is closely related with low to high grade porphyry copper mineralisation, whereas older dioritic intrusions and stocks are related to earlier similar mineralisation types but are commonly lower grades (0.2 to 0.4% Cu). Diatreme dome breccia complexes were a late facet of hydrothermal activities located peripheral to dacite porphyry intrusives. Dacitic pyroclastics unconformably overly the andesitic sequence. A thick blanket of volcaniclastic rocks (debris flow sequence) are exposed along the southern coast of Sumbawa.
Strong conjugate systems of WNW to NW and NE faults, revealed in Landsat imagery, aeromagnetic data, aerial photography and outcrop mapping, are dominant structural features developed in this region (Figure 5). These are interpreted as having resulted from subduction related compression, tension and subsequent relaxation associated with orthogonal plate For personal use only use personal For convergence along the volcanic plutonic arc.
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4.2 Property Geology The property predominantly comprises early to middle Miocene andesitic volcanics and volcaniclastic rocks (Tmv), with locally unconformably overlying late Miocene coralline limestones, well bedded with localized chert intercalations (Tmcl), sub-volcanic intrusives (Tmi) and later Quaternary alluvial and beach deposits which are prolific along the fault valleys and lower coastal areas (Qal). The mid Miocene intrusions, the source of hydrothermal alteration and mineralisation, include porphyritic andesite, hornblende diorite, quartz diorite, feldspar porphyry, tonalite and intrusive diatreme breccia in the appropriate chronological order (Clode, 2002).
Structural studies carried out by Newmont (Pieter, 2005) define three main structural domains trending NW, N-S and NE over the property. The NNE to NE trends (extensional or synthetic faults) form the mineralised corridors hosting porphyry Cu-Au mineralisation, whilst later cross- cutting NW trending faults are interpreted having developed as late stage or post-porphyry. Epithermal veins and post mineral dykes are developed at Lemonga prospect along the NW and N-S trending faults.
Four volcanic phases in southwest Sumbawa: two in the Miocene, both overlain by Miocene limestone, one of Miocene to Pliocene age, and Quaternary build-ups; are noted in the NE of the map area (Figure 2). The most common lineament trends are recorded as NNE and WNW with N-S and NW trends less common. East-west, NE, and NNW trends are uncommon and an ENE trend rare. It is concluded that the orientation of the lineaments is controlled mainly by N-S compression since the Miocene and by compression about a NNE-SSW trend during the Miocene.
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Figure 2: Taliwang Project Regional Geological Setting.
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5. Historical Exploration
Dutch geologist Van Rheden (1914) reported the presence of stibnite bearing boulders in the Mt. Rawa area (Bima District) and manganese sands in Maja Bay on the south coast. Van Rheden (1915) also reported the presence of gold occurrences around Mt. Solmande, sub- district Donggo (Bima District).
In 1981, the Kanwil South Sulawesi (government agency) examined the area and collected stream sediment samples and limited rock geochemistry data. Stream sediment samples were analysed for Cu, Pb, Zn and Mn, with only Mn values slightly elevated from 0.11-0.35%. A solitary gossanous rock float sample with reported malachite, azurite and cinnabar, collected near the village of Seloto (Figure 3), returned an assay value of 7.21% Cu.
Between 1986 and 1992, following encouraging results obtained in 1984 while operating under a preliminary investigative permit (SKIP), BHP Utah, in joint venture with the state mining company, Aneka Tambang, held exploration activities (under license number KP 66/DU77) over effectively the same area as the Southern Arc Mineral SIPP license. Based on results from prospecting, supplemented by pan concentrate and stream sediments sampling, two areas of interest were defined; Olet Sekunyit (later termed “Lemonga”) and Olet Semoan. Extensive trenching and rock sampling at Olet Sekunyit identified a series of steeply dipping Au-bearing vein zones (termed Eastern and Western Vein System) traceable up to 850 m along strike, with a maximum width of 6 metres. There was no soil sampling undertaken and the prospecting seems somewhat “patchy”. Survey maps requiried field checking before results could be integrated with other geological data.
In 1991, five lines (2500 line metres) of ground dipole-dipole resistivity were completed, along with seven (7) diamond drill holes (totalling 260.10 m). The drill machine employed was a small man-portable unit capable of only shallow depths and coring BQ- sized drill core.
Based on holes drilled at nominal 100 m spacing, the following results were reported (Aneka Tambang 1991):
Hole ID From (m) To (m) Interval (m) Au g/t Ag g/t DDH-BOS 1 42.10 48.70 6.6 2.69 87.8 DDH-BOS 1A 23.95 36.10 12.15 3.63 68.6 DDH-BOS 2 12.00 19.10 7.10 1.84 15 Including 12.25 13.90 1.65 3.45 21 32.80 33.80 1.00 7.55 65 DDH-BOS 3 34.60 37.70 3.10 1.98 20 DDH-BOS 4-2 8.20 10.95 2.75 2.79 53.5 16.30 18.40 2.10 1.73 20.7
DDH-BOS 5 No significant results For personal use only use personal For DDH-BOS 6 No significant results DDH-BOS 7 24.35 27.25 2.90 2.37 56 Table 1: BHP-Aneka Tambang Drilling Results.
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Wall rock, peripheral to veins, was often weakly mineralised, with values of 0.1-0.9 g/t Au and 1- 10 g/t Ag. Based on low hypothetical tonnage and grade calculations from Olet Sekunyit and less than encouraging results from other prospect areas, Aneka Tambang-BHP Utah relinquished the property in 1992.
Following relinquishment by Aneka Tambang-BHP Utah, the property was included into PT NNT’s 4th generation CoW. The CoW agreement, comprising shareholders Newmont Indonesia Ltd (80%) and local partner PT. Puku Afu Indah (20%), was signed on the December 2, 1986. The Indotan SIPP comprises areas relinquished by PT. NNT in their first, fourth and fifth CoW relinquishments made in 1988, 1998 and 2001 respectively.
The exploration approach used by PT. Newmont Nusa Tenggara within the SIPP area, during 1987-2001, comprised:
Photogeological interpretation (1:50,000 scale) prior to commencing regional reconnaissance surveys. The resulting map formed the geological basis for the initial stages of exploration, and was subsequently refined by field verification.
Anomaly generation commencing with stream sediment sampling and comprising BLEG -30 mesh, -80 mesh silt and panned concentrate samples.
Follow-up anomaly assessment, in 1988-1990, involving 1:5,000/10,000 scale tape and compass geological traverses and high-density stream sediment and rock-chip sampling.
Prospect assessment, comprising detailed geologic mapping at 1:500, 1:2,000 or 1:5,000 scales (dependent on activity), ridge and spur soil sampling, ground geophysical surveys (magnetics and IP/resistivity), outcrop channel sampling and hand-dug costeans.
The resulting exploration program, carried out during 1988-2001, comprised:
From thirty-six copper gold anomalies: identification of top six areas Elang, Selodong, Rinti, Pangulu, Lunyuk, and Batu Hijau.
Follow-up drilling at Elang (first CoW drill program), discovery of Batu Hijau in 1991 and Elang Porphyry Cu-Au.
Drilling for gold at Rinti in 2000 and surface evaluation of Lemunte, Pangulu, Rinti, Elang in 2001.
Results presented in the company’s 4th relinquishment, indicate that 10 BLEG (Au, Ag and Cu analysis) and stream sediments (Au, Cu, Pb, Zn, Ag, As, Sb and Mo) were collected by PT. NNT. BLEG assay values reported ranged from 0.1 ppb to 2.6ppb Au, and stream sediment assay from
For personal use only use personal For 10ppm to 326ppm Zn.
Areas of interest relinquished by PT. NNT in December 2001 include Lemunte/Seloto, Lemonga, J3 and J6.
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Lemunte-Seloto: Two vein systems, the Artha and North Seloto Veins, are located in the NE corner of the property. Historical surface sampling by Newmont identified variably textured, quartz base-metal veins, ranging in thickness from 0.5-6.0 m, with traceable strike length of +200 m. Gold-silver values are highly variable, reflecting the highly oxidized nature of the vein material.
Lemonga: Regional drainage sampling in 1987 identified anomalous associations of Au-Ag-Cu- Pb-Zn in -80# stream sediment samples (Figure 3). Follow-up mapping and selective rock-chip sampling delineated epithermal quartz-sulphide veins. Further surface prospecting identified a series of NNW trending quartz±amethyst-sulphide veins, with localised stockworks, enveloped by clay±silica alteration haloes. Individual veins commonly pinch and swell, ranging from 1-10 m in thickness, with strike lengths up to 800 m. Gold and silver are associated with sulphides of pyrite, galena, sphalerite and minor chalcopyrite that occur dominantly as fine disseminations and vein fill.
Outcrop channel geochemistry (including 3.7m @ 15.0 g/t Au/195 g/t Ag), a comprehensive listing of results is detailed in Table 2.
Ground geophysical surveys, including magnetics and selected E-W lines (totaling 7.2 line km) of IP resistivity, were completed over the prospect area in 1999. No drilling was undertaken by PT. NNT at the time, however, and the area was subsequently relinquished, being considered to have limited potential. Note that PT. NNT states in its 5th relinquishment report that it was unable to review drill data or reports from the Aneka Tambang-BHP Utah exploration work.
For personal use only use personal For
Figure 3: Thirty six (36) geochemical anomalies from regional stream survey Newmont 1987-1988, including Lemonga is identified as low-sulphidation Au vein system.
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Total Number of Average Average Vein Sampled Samples Au Ag Remarks Width (m) g/t g/t PT. NEWMONT NUSA TENGGARA 1992-2001 North section, Asam Amy main vein 2.2 2 3.39 8.5 Tanjung creeck outcrop North section, Asam Amy main vein 3.6 4 2.86 9.6 Tanjung creeck outcrop Middle section, ridge Amy main vein 6.2 6 2.06 15.6 south of Duri creek South section, Urat Amy main vein 5 5 2.76 54.8 creek South section, Urat Amy HW vein 2 2 5.63 45.5 creek South section, north Amy main vein 4.7 5 2.13 37 tributary of Urat creek South section, ridge Amy main vein 3.7 4 15.03 194.5 south of Urat creek Betty vein - 1 0.2-0.8 Grab sample Cici vein 3 3 2.1 125 North section Cici vein 3.9 4 4.57 56 South section Dessy vein 4.6 5 7.22 109 North section Dessy vein 6.5 6 4.39 58 South section Evy vein 2 2 9 51 Grab sample Stockworks between Betty and 44.7 23 0.22 4 Trench samples Cici veins BHP UTAH - ANEKA TAMBANG DATA 1982-1992 Eastern Vein Set 7.53 353.7 31.3 2.13 11.95 353.7 6.74 4.08 50.06 1.55 16.2 19.2 2 9.18 57 (incl. 0.45m @35.6 g/t Au and 11.2 gr/t Ag) 3.7 4.5 79.9 1.6 6.13 13.84 1.8 14.3 23.7 5 3.48 4.4
For personal use only use personal For Western Vein Set 2.27 3.4 23.3 1.45 5.73 25.2 1.45 8.26 21.2 Table 2: Historical Outcrop Channel Geochemistry Results.
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J3 Prospect: Mineralisation was discovered by Newmont during first-pass regional drainage sampling in 1987 and was subsequently targeted by detailed geochemical and geophysical programs. Au-Ag±base-metal mineralisation was identified from a contact zone of a flat lying silicified limestone and an altered volcaniclastic sediment unit. Newmont’s channel sampling, from a mineralised 2.7 m thick limestone bed, averaged 6.75 g/t Au, with a maximum of 12.0 g/t Au and 121 g/t Ag. This anomalous outcrop is situated on the eastern edge of a 1.8 x 1.3 km zone of widespread anomalous Au soil geochemistry. Moderate base-metal, As, Sb and Mo soil anomalies, as well as IP and resistivity anomalies, are associated with elevated Au soil geochemistry throughout the area.
J6 Prospect: Mineralisation comprises auriferous base-metal veins hosted within hydrothermal breccia bodies and volcaniclastic and pyroclastic rocks. Trenching of quartz stockwork zones by the previous operator returned anomalous results. Scout diamond drilling (seven holes totalling 651.3 m), carried out in 1998 by Newmont, intersected erratic quartz base-metal sulphide (pyrite-galena-sphalerite-chalcopyrite) sheeted veins and stockworks. Reconnaissance drainage sampling (-80 mesh stream sediment samples), by the government Bureau of Mineral Resources, was undertaken over the property during 2000-2001, as part of the on-going national geochemical and geological mapping program. A total of 7 samples were collected both within and peripheral to the SIPP area. These samples were analysed for a total of 11 elements including Cu, Pb, Zn, Co, Ni, Mn, Ag, Li, K, Fe and Cr. Because of budget restrictions, gold was not analyzed for. In general, assay values of low tenor were returned, with only lead values somewhat elevated (175-587 ppm).
For personal use only use personal For
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6. Lemonga Prospect
6.1 Prospect Geology The Lemonga prospect consists of Miocene volcanic units, including tuff and volcanic breccias, with intercalated basaltic to andesitic composition lavas. Diorite porphyry was recognised only in drill core and distinguished from andesite by having crowded porphyritic texture and lacking feldspar laths in the groundmass. As there is a restricted occurrence of diorite porphyry, it is likely to be occurring as dykes.
NNE to NE trending quartz±amethyst-sulphide veins are hosted by various tuffs and volcaniclastics, with localised stockworks, dominantly enveloped by illite-smectite with narrower silica alteration haloes. Chlorite-epidote or propylitic alteration grades to well developed further outwards or at peripheral vein systems.
The prospect encompasses an area 1.5km by 1.5km (Figure 4). It comprises at least three zones of hydrothermal breccia, often occupying topographically high areas, which were recognised and confirmed by petrological studies. The most extensive zone, termed the “Baleong Breccia” is variably altered from intensely silicic to weakly argillic and encompasses the 400 m high Olat (Mount) Baleong, situated on the eastern edge of the prospect. The “Central Breccia” underlies the central Lemonga Peak (330 m high) area and is characterised by larger clasts, often weathered out to form cavities, within a more uniform, strong to moderate silica±clay altered matrix. A smaller clay±silica altered breccia zone underlies a small hill in the NW of the prospect area. The petrological studies recognised a wide variety of clast lithologies including subvolcanic and pumiceous andesite, dacite, diorite porphyry, rhyolite and possibly basalt. Some of the breccias also contain clasts of fine grained sediments, including fine quartz sandstone, siltstone, and possibly tuff. The study postulated that the breccia bodies may be small diatreme pipes.
For personal use only use personal For
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For personal use only use personal For Figure 4: Location of Taliwang Project.
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For personal use only use personal For
Figure 5: Preliminary Taliwang Aeromagnetic Interpretation.
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6.2 Mineralisation Type Regional exploration by Newmont in southwestern Sumbawa identified numerous porphyry intrusions and related mineral systems including porphyry copper-gold, high sulphidation gold- copper and mesothermal to epithermal precious base-metal deposits. Potential for other derivative hydrothermal occurrences, such as sedimentary-hosted gold and gold ± base-metal skarns, also exists.
Batu Hijau is a giant copper-gold porphyry deposit, disovered in 1990 as a result of extensive grass roots exploration on a 4th generation Contract of Work (Maula and Level, 1996).
Regional exploration by PT. NNT has identified a number of significant geological features of hydrothermal systems associated with porphyry copper-gold mineralisation (Clode 2002):
Small (500 m x 400 m) intrusions emplaced at shallow levels (<2 km) in Miocene andesitic volcano-sedimentary rocks.
Low-K tonalite composition of mineralised intrusions.
Contact intrusive breccias associated with higher copper grades developed along intrusive margins.
Gold-rich porphyry systems with an increasing gold-copper ratio with increasing depth from 0.5 at shallow levels (1.5km) to 3 at deep levels (2-3km) from paleo surface.
Structurally controlled high-sulphidation epithermal systems 0 to 1 km above porphyry systems.
Appearance of diatreme breccias marking late facet hydrothermal activities.
Extensive/advanced argillic overprint forming large lithocaps.
Very narrow (few cm to 2 m) illite-kaolinite selvages associated with gold-base metal quartz vein systems peripheral to porphyry systems.
Central Cu-Au-Mo±As-Ag anomaly clusters with peripheral Pb-Zn-Au-Ag-As±Cu anomalies.
The Lemonga prospect is a low-sulphidation vein system which is influenced by NW regional fault structures and appears in plan view as series of en-echelon bodies, usually as extensional features to the main structural grain.
Recognition of regional structural regimes that control distribution of porphyry Cu-Au and For personal use only use personal For epithermal Au-Ag mineralisation in southwest Sumbawa, and its applicability in South Lombok, is an important exploration criterion. Garwin (2008) postulates that the intersections of northerly, northwesterly and northeast to easterly trending structural zones localise the distribution of the mineralisation.
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6.3 Mineralisation Varying styles of low-sulphidation epithermal Au-Ag mineralisation provide different Au and Ag grades, Au: Ag ratios, metallurgical responses, gangue minerals and display a typical paragenetic sequence, as the mineralised fluids evolve with time and distance from the intrusion source (Figure 6: Corbett and leach, 1998; Corbett 2002, 2009). Mineralisation styles relevant to the Lemonga Prospect, in order of the paragenetic sequence, include:
Quartz-sulphide Au+Cu mineralisation is characterised by quartz with pyrite varying to chalcopyrite and possibly galena, pyrrhotite or specularite at depth, and marcasite or arsenean pyrite with opal at elevated crustal settings. Therefore, deposits vary from Au- rich at high crustal levels to Cu-rich at depth, typically close to source porphyry intrusions where they locally provide a link between porphyry and epithermal mineralisation styles. Coarse grained sulphides display good metallurgical characteristics whereas the finer arsenean styles may host encapsulated Au.
Base-metal sulphide veins develop at more elevated crustal settings and generally later in the paragenetic sequence than quartz-sulphide mineralisation. Two variants dominate on either side of the Pacific Rim: Au-rich carbonate-base metal Au deposits in the SW Pacific rim and Ag-rich polymetallic Ag-Au in Latin America (in particular Mexico, Peru Patagonia). Au-Ag occurs with sulphides dominated by pyrite, galena, sphalerite and minor chalcopyrite with local tennantite-tetrahedrite. In many sub-volcanic terrains (Kelian in Indonesia; Porgera in Papua New Guinea; Baguio District in the Philippines)
cooling, high level intrusive felsic domes released CO2 which rises and condenses to form bicarbonate waters. Mixing of rising mineralised fluids with these bicarbonate waters destabilizes the Au carrying complexes, commonly Mn-rich carbonates such as rhodochrosite which are characteristic of these deposits, and so promotes Au deposition, (below).
Two epithermal deposit variants form at most elevated crustal settings (Figure 6). In strongly dilational structural environments such as back-arc rifts, circulating meteoric waters enter a system and combine with strongly evolved magmatic fluids to form Ag- rich banded chalcedony-ginguro veins which contain abundant quartz gangue, locally with adularia or quartz pseudomorphing platy calcite.
Transverse fault / fracture zones are inferred to be deep structures that acted as channel ways for ascending mineralising fluids that deposited high sulphidation, and later low to intermediate epithermal, systems. Zones of structural intersection obviously make for compelling exploration targets.
Quartz-sulphide Au-Ag style mineralisation, in which locally auriferous pyrite/marcasites
overprint quartz-sulphide and carbonate-base metal mineralisation styles. For personal use only use personal For
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Figure 6: Conceptual geological model for the styles of mineralisation recognised in magmatic arcs (from Corbett, 2009 and references therein).
Various styles of mineralisation are present within the Taliwang property, including porphyry copper-gold, epithermal gold-silver veining and sediment hosted gold mineralisation. Copper- gold mineralisation is associated with late Miocene diorite intrusives emplaced into Late Oligocene to Middle Miocene low-K calc-alkaline to alkaline andesitic volcanic and subvolcanic intermediate intrusives. The main types of mineralisation found in the property include high to intermediate-sulphidation epithermal Au-Ag mineralisation, hosted in zones of favourable structural intersections, related diorite hosted porphyry Cu-Au and lesser sedimentary-hosted gold mineralisation within limestones and calcareous siltstones units.
6.4 Epithermal Au-Ag Targets At the Lemonga prospect, series’ of semi-parallel, irregular, quartz±sulphide veins, up to 1.15 km long, strongly anomalous (commonly ore grade) in gold and silver and exhibiting mainly
For personal use only use personal For typical epithermal textures with banded comb/crustiform/colloform fabrics, are commonly noted. Rare, bladed vein textures are suggestive of boiling within the fossil geothermal system. Locally, patches/pods of generally Au-poor, coarse prismatic quartz crystals, often amethystic indicating vaphour phase, are a noted feature (Plate 1).
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Brecciation is common within the veins, with both fluidised and tectonic styles observed (Plates 1 and 2).
Plate 1: Amy vein displays an earlier auriferous crustiform-colloform-bladed, low temperature event
disrupted by a later relatively higher temperature coarser milky to amethystic gold-poor quartz influx. For personal use only use personal For
Plate 2: Post-mineral tectonic brecciation is commonly developed in certain sections of the veins – Central Amy vein.
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The veins are usually oxidized, limonite stained, with cavity-fill strongly developed in many places. Where fresh, the veins host sulphides ranging from traces up to 5% sulfides, commonly medium-grained euhedral pyrite and sphalerite-galena±copper sulphides (usually chalcopyrite and covellite), and oxides in both bands and disseminations.
Stockwork veinlets between veins are variable in intensity and appear sporadically, but this may be due to extensive soil/talus cover masking the bulk of the prospect. Quartz float is abundant, and relative locations and concentrations suggest veining/stockworking may be more widespread beneath the cover.
Five auriferous quartz vein targets, named Amy, Betty, Cici, Desy and Evy, have been identified within the alteration zone.
Amy Vein: Varying from 1-6 m wide, it is traceable in outcrop, subcrop and scree, along a N-NE strike, for 1,150 m; pinches and swells; and displays banded crustiform, colloform and comb textures with a quartz±amethyst-pyrite-sphalerite-galena-chalcopyrite mineral assemblage. Mapping and sampling by Southern Arc Minerals prompted a more rigorous demarcation of the Amy Vein into three segments, displaying, on average, different strike and surface characteristics. With reference to the prospect grid (Figure 7), the characteristics of each segment can be described, from south to north, as:
South Amy Vein (SAV): 10050N to 10400N, average strike 357°, width varying between 0.25 and 5.0 m, sparse outcrop, uncovered mainly in trenches .
Central Amy Vein (CAV): 10400N to 10800N, average strike 024°, width varies from 0.85 to 5.0 m within a stronger outcrop pattern.
North Amy Vein (NAV): 10800N to 11200N, average strike 013° but splaying out towards the north, width highly variable due to fragmentation and pinch and swell nature of veining, varying from 0.25 to 7.0 m, moderate patchy outcrop.
Betty Vein: Pinch and swell character with vein widths of 0.4-6.0 m, average strike of 040° and traceable along strike for ±600 m. Described as banded to comb textured, locally brecciated vein quartz, with sulphide (pyrite-galena-sphalerite) disseminations and vein fillings.
Cici Vein: Appears as a northern splinter off the Betty Vein, with vein widths varying from 1.1 m to 3.0 m, average strike of 050°, and traceable for 200 m. The majority is subcrop, with vein material described as vuggy, combed and toothy, some chalcedonic quartz, with limonite (ex- sulphide) disseminations.
Desy Vein: A 0.5-6.5 m wide banded quartz-amethyst-pyrite-galena-sphalerite vein, with
For personal use only use personal For average strike of 030° and traceable along strike for 415 m.
Evy Vein: A 2.0-8.2 m banded quartz vein, with average strike of 008°, traceable along strike for 280 m.
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Sampling of stockwork zones between the major veins returned values of low tenor, with the only intersection of interest being 44.7m @ 0.22 g/t Au/4 g/t Ag between the Cici and Desy veins.
A moderately intense NE-trending, sheeted, narrow, auriferous vein system, spanning a width of about 100 m, was identified, largely, by drilling across the north Betty/Cici area.
Early sampling of the silicified Baleong Breccia returned only low tenor gold values, with silver slightly higher.
The Lemonga prospect area appears structurally complex, as evidenced by the nature and distribution of the vein sets: pinch-and-swell, commonly split, often variable strike and dip orientations, with peripheral, localised stockworks and orthogonal cross-cutting veinlets; all contained within irregular, patchy, quartz-argillic alteration envelopes.
The four petrological studies done over the prospect suggest at least two, and possibly three separate episodes of hydrothermal alteration and mineralisation: an earlier widespread, higher temperature, propylitic/phyllic event characterised by remnant epidote and sericite, overprinted by a cooler argillic±silica event with the dominant minerals chloritecorrensite (a chlorite-smectite interlayered clay), and sericiteillite. The most recent study conducted, on samples taken from drill core from the second phase of drilling, indicates that the veins of the Lemonga prospect, whilst displaying aspects of both intermediate and low-sulphidation epithermal styles, differ from typical epithermal vein systems in that there is evidence of temperatures increasing with time: secondary inclusions invariably gave temperatures that were 10 to 20°C higher than primary inclusions. Similarly, where fluid inclusions were measured at the core and rim of individual quartz crystals, those nearer the rim were hotter, indicating that temperatures increased during and/or after vein deposition.
Furthermore, it is typically a base-metal rich system. As the Lemonga samples show no evidence for particularly high temperatures or salinities, the base-metals may have been deposited (remobilized?) over a relatively brief period of higher salinities and temperatures, compared with a longer period of precious metal deposition. This is supported by the apparent decoupling of precious and base-metal grades in several quartz lode samples. Thus, there may have been separate episodes of base and precious metal mineralisation, with the base-metals transported as chloride complexes, and precious metals as bisulphide complexes. In this case, base-metal sulphides need not be a good indicator of gold. Likewise, the gold to silver ratio distribution proved to be too erratic to be employed as a vector tool.
This later evidence suggests that, if anything, the vein system was buried to greater depths with time and perhaps rejuvenated with further heat input. The multiple vein events indicate a significant scatter of fluid inclusion homogenization temperatures, but indications of a
For personal use only use personal For comparatively high increase in temperature with depth, little lateral variation in temperature over an area of approximately 1 km² (Figure 8) and temperatures up to 258°C are suggestive that the de posit sits above the hydrothermal system’s upflow. This is consistent with the presence of diorite porphyry dykes and diatreme breccia pipes which place the area in the
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immediate vicinity of a magmatic centre. It was suggested that there may in fact be earlier porphyry style mineralisation at depth.
The lower temperature (argillic) event, centred near the middle of the prospect, indicates cooler temperatures than is typical for most epithermal gold-silver deposits. However, this means that the shallowest part of the zone has been preserved and that there is good potential, for any mineralisation that does occur, to extend and improve with depth. Results of the geophysical (CSAMT) survey done over the Lemonga prospect certainly indicate strong vertical persistence of the quartz veins (see below, Figure 7). Carbonates would be expected to occur in or about boiling zone levels, yet even the deepest drillholes failed to detect any such species within the major veins, despite the sporadic presence of bladed-quartz pseudo-morphs, possibly suggesting that if such zones exist here, they would be deeper than the current drilling levels.
For personal use only use personal For
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For personal use only use personal For
Figure 7: Taliwang Project - Lemonga prospect Geology and Alteration Map
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Figure 8 displays a distinct lateral flux of the median fluid inclusion homogenization temperatures along the long sections of the Amy, Betty/Cici, and Evy vein systems. This may indicate areas of preserved early, low-temperature, gold-rich “shoots” in comparison to the late stage, high-temperature, gold-poor overprint. In comparison, the Desy Vein section appears somewhat less disturbed.
Figure 8: Long sections, median fluid inclusion homogenisation temperatures of the Amy, Betty/Cici and Evy vein systems
6.5 Geophysics Referring to government regulation, notably the requirement to have a legitimate Indonesian operating entity, Southern Arc has retained the services of PT. Jasa Prima Raya (JPR) to act as its Indonesian representative in matters relating to its mineral interests in Indonesia. JPR is a registered Indonesian mining service company, with its office domiciled at Graha Krama Yudha, 3rd Floor, Jl. Warung Jati Barat No. 43, Jakarta 12740, Indonesia. A service agreement between For personal use only use personal For Southern Arc and JPR was signed in August 2004. On this basis JPR have undertaken all phases of exploration as detailed in this report.
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Southern Arc carried out litho-structural definition and heli-mag geophysical survey of the entire Taliwang property in mid 2005. Surface exploration activities by the Company over the prospect areas have comprised:
Gridding A survey grid was established utilising tape and compass gridding system, aided by GPS/theodolite control. N-S oriented survey grids, with 50 m line spacing and 25 m line centres, were established over all the three Southern Arc prospects, for topographical control. Datum points were chosen as 20,000E/10,000N and related back to UTM coordinates (WGS84/Zone 50S). A total of 101.5 line km were grid surveyed. Line centre intervals at Lemonga were established at 10 m spacings prior to the ground CSAMT geophysical survey.
Geological Mapping, Petrological Sampling and Preliminary Geochemical Rock Sampling Geological mapping, following creek and grid lines, delineated various lithologies, alteration, quartz veins, mineralisation and stuctural geology. Ridge and spur soil sampling, outcrop channel sampling, hand-dug costeans and resampling, was carried out over the porphyry Cu-Au and Au-Cu vein by PT. NTT. Data from previous work, such as trenching, sampling and DDH locations was verified during this phase.
Petrological samples collected were dispatched to SKM, NZ, at various stages throughout the exploration program. A total of 94 surface rock and drill core samples were submitted for thin sectioning, description, XRD and fluid inclusion analysis.
An additional 829 hand specimen samples, of varying lithological/alteration types, collected during the grid-mapping phase of the exploration, were dispatched to the Department of Energy and Mineral Resources-Bandung, for PIMA (infrared spectrometer) analysis.
A large variety of host rocks were also assayed, in order to determine the possibility of any bulk-tonnage potential as well as gain a geochemical signature of the prospect as a whole.
All data has been stored in a geological data base, using Micosoft Access, and is available for use with Map Info and Micromine software.
Trenching and Geochemical Rock Channel Sampling The trenching program at Lemonga was initially designed to provide more geochemical control over surface traces of quartz veins, particularly ahead of the exploration drill hole program. Trenching was continued throughout the exploration program to expose projected vein extensions immediately below surface. The use of topographically- corrected CSAMT plans and sections as a guide to trench locations provided excellent
For personal use only use personal For control on quartz-vein positions. Due to environmental considerations, as agreed with the Forestry Department, trenches were then back-filled and planted with vegetation having good root-binding characteristics.
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Geophysical Program The previous operators’ ground geophysical surveys (magnetics and IP/resistivity) over the Lemonga Prospect proved successful in demonstrating that:
Highly resistive linear anomalies map out the majority of the main veins.
Linear magnetic lows generally map out northeasterly trending structures.
Broad magnetic lows correspond to dominantly clay-chlorite altered rocks.
At the Lemonga prospect, Southern Arc conducted CSMAT surveys to refine linear signatures and to establish some depth potential of the resistive (quartz-bearing) zones prior to Phase 2 diamond drilling. Accordingly, most of the grid was recleared and the 50 m N-S spaced lines pegged at 10 m E-W intervals (coinciding with most of the CSAMT reading intervals, Figure 9). Line spacings for the far north, NE, and SE portions of the grid were expanded to 100 m, and in some cases 200 m, with the intention to infill, if deemed necessary from ongoing results. Eight lines, covering the center of the prospect, were extended a further 100 m east to cover the western portion of the Baleong Breccia zone, while, in the SW, four lines were extended 200 m west to explore for any cohesive resistive zones beneath scree cover. A total of 29.7 line km were surveyed by geophysical contractor Elliott Geophysics.
For personal use only use personal For
Figure 9: Taliwang Project, Lemonga Prospect- CSAMT resistivity highs projected to surface vs quartz vein distribution and drill hole locations.
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6.6 Mapping, Petrological and Structural Studies Mapping revealed a substantial area of quartz-veined, moderate to intense hydrothermally altered, andesitic to dacitic volcanics, various tuffs and volcaniclastics as well as minor associated sedimentary sequences, as described above in section 4.2. The distribution of lithological units and alteration facies generally agreed with Newmont’s original mapping, with petrological studies initially indicating complex alteration and mineralisation overprinting processes, prevailing over an extended time frame (refer to section 6.0 for more detail).
Initial petrological and XRD results, fluid inclusion homogenization temperatures, Au grades and Au:Ag ratios all pointed to the northern end of the Amy vein system being hottest and closest to the upflow. Therefore, it was recommended that this area should be targeted as having the most potential for hosting high-grade epithermal gold mineralisation. Indicated temperatures were found to be sufficiently low that mineralised veins could potentially extend to depths of two to three hundred metres.
The PIMA study indicated that the mineralogy of the samples from Lemonga included varying proportions of illite, kaolinite, smectite (montmorillonite and nontronite), chlorite, jarosite and carbonate. In general, there are broad patterns in the distribution of alteration in the area:
A central area dominated by illitic phyllic/argillic alteration.
An area to the north-west dominated by argillic and propylitic alteration (montmorillonite, chlorite and nontronite).
Apparent small zones/windows of propylitic/argillic alteration within the phyllic/argillic alteration.
A small number of samples with phyllic/propylitic alteration (illite and chlorite) present to the south and east of the area.
A small number of samples having minor jarosite in the north and east of the area.
Although the PIMA results are considered, at that stage, inconclusive, when comparing mineralogy to geochemistry, the generally central distribution of more coarsely crystalline illite tends to support the XRD/thin section petrology/FI studies, attributing a hotter central core (hence upflow) to the Lemonga hydrothermal system.
Structural studies on the prospect scale were largely inhibited by the extensive scree and soil cover. Most recordings were made within bedrock, variably exposed in stream beds and in more resistant outcrops, particularly in the vicinity of quartz veins and silicified breccia zones. The relatively flat-lying volcanic sequence is transected by dominantly steeply dipping faults,
For personal use only use personal For fractures, and minor competency-related shears. The dominant direction is N to NNE, as defined by the major vein orientations. The NE orientation of the Betty-Cici vein complex suggests dilational fissure infill between the Amy and Desy veins. Towards the north, this complex assumes a more northerly trending sheeted morphology. Largely interpreted (both field and air
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photo) orthogonal, near E-W trending faults appear to disrupt the veins, particularly the Amy vein, resulting in a pronounced pinch-and-swell morphology accompanied by numerous splits, splays, and horsetail flares (Nth Amy vein). Within the Baleong Breccia zone, rare thin discontinuous quartz veins are largely north trending.
In general, observations of fault and fracture orientation and distribution, along with vein morphology, point to a prolonged pre-, syn-, and post-mineralisation upheaval accompanied by both hydrothermal and tectonic brecciation. This is in accordance with the petrological evidence, suggesting multi-phase alteration and mineralisation over considerable time at Lemonga.
Following on from the Phase 2 drilling program, geological mapping of possible northern and southern extensions of the Lemonga vein system was initiated. Encouraging findings included:
Evidence that mineralised structures may extend ±800 m south of drill hole LDG-16 with the identification of mineralised quartz vein and hypersilicified breccia outcrops and sub-crops. In addition, rock-chip sampling of a sub-parallel, narrow vein/breccia stockwork outcrop, (partly exposed) 300 m north of drill hole LDG-12 (Evy Vein), returned anomalous in gold values.
Remapping in the vicinity of drillholes LDG-16 and LDG-37, defined newly identified vein outcrops/sub-crops, indicating that the main 015° Amy Vein trend may extend a further 200 m southwards. The apparent LDG-37 vein splay was traced a further 150 m southwards. Trenching was recommended to further verify these findings.
Eight channel samples, collected along the S. Orong Mantil stream in the far north (line 11600N), where an argillized/chloritized, polymict breccia was exposed, returned weakly anomalous assay values to a maximum of 5 m @ 0.12 g/t Au/32 g/t Ag, which was the only assay of interest, indicating favourable host-rock geochemistry.
6.7 Surface Geochemistry Regional Drainage Sampling The highest values received from the BLEG sampling program derived from streams draining the immediate surrounds of the Lemonga prospect (Figure 10). Anomalous values (16.1ppb Au and 23.2ppb Au/139ppm Ag), from the headwaters of two adjacent streams draining the far NE extension of Lemonga, were followed up and found to contain soil and scree derived from the Lemonga Prospect itself. Of particular note are results from three adjacent streams draining the eastern slopes of the breccia body underlying Olet Baleong (the eastern extension of the Lemonga grid). Along with high gold in BLEG values, silver fell into the range of 800-1,000ppb, confirming the high silver content found in certain zones of the Baleong Breccia, as noted in drill holes LDG-13, 36, and 39. For personal use only use personal For
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Figure 10: Taliwang BLEG Gold and Copper Geochemistry.
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In general, the trenching program proved successful in supporting surface results from previous campaigns, as well as demonstrating mineralised vein continuity from DDH intersections to surface. It was also valuable in proving lateral extensions to the known vein systems and thus delineating further drilling targets.
A total of 495 rock-sample assay results demonstrate that the Lemonga prospect is highly anomalous in both precious and base-metals at surfaceGold is shown to correlate only weakly with silver and nothing else, while the base-metals display a weak to moderate correlation with each other. Little else correlates suggesting possible remobilisation of the bulk of the elements assayed over a considerable time span. While the average Au:Ag ratio turns out to be less than 0.05, local values often fluctuate considerably (0.0007 up to 1.48) and further supports the multi-phase nature of the Lemonga mineralisation. This ratio cannot be rationally employed for any attempt at spatial vectoring.
Figure 11: Lemonga Prospect Significant Surface Geochemistry.
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6.8 Lemonga Drilling Phase 1 drilling at Lemonga began on April 4, 2005 and was completed on July 28, 2005. 16 diamond drill holes (LDG-01 to LDG-16) were completed during the program for a total of 1,498.75 m, with an average recovery rate of 97.3%. All holes were drilled perpendicular to the local main quartz vein/alteration zone, at -45° inclination.
The first five holes were drilled well past the vein targets to explore the potential for any parallel veins in the eastern wall rock zone. LDG-1 to 7 and LGD-16 tested approximately 900 m of strike length along the Amy Vein. LDG-8 was drilled beneath a resistant, poorly vegetated alteration zone coincident with favorable surface geochemistry. LDG-9 was directed beneath the central breccia zone towards the Betty/Cici Vein split area. LDG-10 and 15 tested the central and southern sections of the Betty Vein respectively. LDG-11 was drilled beneath the Desy Vein; LDG-12 beneath the Evy Vein; and LDG-13 into the western most area of silica alteration of the Baleong Breccia zone. A substantial zone of stock work veining, thought to envelope the northern Cici Vein segment, was tested in LDG-14. All of the collar information is documented in Appendix 1: Lemonga Drill Hole Locations, Phase 1 Drilling.
The immediate conclusion from Phase 1 drilling was that high grade Au±Ag shoots were detected in the central and southern sections of the Amy Vein and in the Desy Vein (Table 3). The widely spaced holes drilled into the remaining targets, all intersected quartz veins carrying anomalous levels of gold and silver.
Hole ID From (m) To (m) Interval (m) Au g/t Ag g/t LDG-01 56.15 72.20 16,05 5.37 51 Including 69.20 72.20 3 19.19 228 LDG-03 20.70 36.10 15.40 6.44 36 Including 20.70 22.70 2 25.80 25 30.70 36.10 5.40 7.58 79 LDG-11 41.80 49.70 7.9m 6.02 37 Including 46.50 49.70 3.2 13.17 64 Table 3: Meaningful Phase 1 Intercepts. A full listing of the results from Phase 1 and Phase 2 drilling is documented in Appendix 2.
Phase 2 drilling by Southern Arc commenced in 2006 and aimed to define the controls and extents of mineralisation. A larger man-portable drill rig, capable of drilling to 300 m NQ core size, was used for deeper holes whilst still using the Phase 1 drill rig for shallow holes. In total, 40 drill holes (LDG-17 to LDG-56) for 5,440 m of drilling was conducted at Lemonga in the second program, with an average recovery rate of 97.7%. All holes were drilled perpendicular to the local main quartz-vein/alteration zone and generally at -45o inclination. Four of the deeper holes were drilled at steeper inclinations; three at -60o and due to topographical constraints one at -68.5o. All of the collar information is documented in Appendix 1: Lemonga Drill Hole
For personal use only use personal For Locations, Phase 2 Drilling.
Just over half of the Phase 2 drill holes tested the Amy Vein at varying depths (LDG17-25,LDG- 33,35,37-38, LDG41-44 and LDG-55), the deepest intersection at approximately 175 m below
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the vein surface. A 370 m segment of the central Amy Vein and a 120 m portion of the north Amy vein were tested at nominal 40 m section spacing. The southern and northern extremities of the vein were tested by diamond drilling at a wider spacing to understand the extent of the mineralisation. Three holes were drilled in the southern Amy/Betty vein convergence area, about 200 m in length, with a further five drill holes (LDG-26, LDG-28-29, LDG-46-47) testing the northern Betty/Citi sheeted vein complex. The northern sheeted vein complex covers an area of approximately 200 m long by 100-150 m wide. An approximate strike of 285 m of the Dewy Vein was tested by a further five diamond drill holes (LDG-30, LDG-32, LDG-48-49, LDG-54). Four drill holes (LDG-34, LDG51-52 and LDG-56) tested a 165 m long segment of the Evy Vein. The Baleong Breccia zone was investigated by two deep holes along a 315 m section 40 m to the north and parallel to the previous LDG-13 Section. An exploratory hole was drilled into the NW Breccia Zone, an area of strongly silicified breccia subcrop approximately 400 m NW of the northern extent of the Amy Vein. A full listing of the results from Phase 1 and Phase 2 drilling is documented in Appendix 2: Intercepts from Drilling at Lemonga.
Hole ID From (m) To (m) Interval (m) Au g/t Ag g/t LDG-17 107.6 128.4 20.8 2.02 15 LDG-18 63.15 76.45 13.3 4.66 21 LDG-20 11 14.3 3.3 0.22 516 LDG-21 48.6 78.3 29.7 4.34 4 LDG-22 13.6 15.6 2 11 694 LDG-26 1.3 13.45 12.15 1 101 LDG-30 101.1 107.6 6.5 9.65 24 Including 103.5 105.6 2.1 24.1 34 LDG-34 92.1 102.05 9.95 3.83 29 LDG-47 68.05 74.05 6.2 1.93 191 Table 4: Meaningful Phase 2 Drilling Intercepts. A full listing of the results from Phase 1 and Phase 2 drilling is documented in Appendix 2.
A plan and 3D illustrating the location of all 56 drill holes is displayed as Figure 13 in relation to the main quartz vein distribution. Long sections of the main veins (Figures 14-17), displaying significant surface assay and DDH intersections, are also illustrated below. It should also be noted that scales vary between the sections, depending on the length of each vein, and that the N-S grid scale is usually elongated in relation to the vertical scale due to the variable vein orientations.
In general almost all of the targets drilled by Southern Arc were intersected. The main quartz veins were interpreted to be largely vertical to sub-vertical, with a steep easterly dip the most
commonly recorded attitude. For personal use only use personal For
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Cici Vein
Dessy vein Evi vein Betty vein
Amy vein
Figure 12: 3D Lemonga Prospect - Drilling Intercepts Lemonga quartz vein For personal use only use personal For
Figure 13: Lemonga Prospect - Amy Vein Long Section Looking WNW.
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Figure14: Lemonga Prospect - Betty/Cici Veins Long Section Looking WNW.
A moderate to intensely clay-altered selvedge of widely varying widths, from centimetres up to 10’s of metres, is a common feature on both the hanging wall and footwall edges of the veins. This is often accompanied by strong shearing as a stress release mechanism preferential to the competency contrast between clay and quartz. Commonly, this resulted in strongly broken core
and reduced core recovery at the vein edges. For personal use only use personal For
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Figure15: Lemonga Prospect - Desy Vein Long Section Looking W. For personal use only use personal For
Figure16: Lemonga Prospect - Evy Vein Long Section Looking W.
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7. Semoan-Ramit-Raboya Prospect
7.1 Prospect Geology The Semoan prospect is thought to represent a Miocene volcanic unit pile underlain by an andesitic sequence of pyroclastics and flows, which is extensively overlain by a dacitic sequence (Figure 18). The pile has been intruded by pre-alteration coarse grained felsic to intermediate stocks and dykes. These felsic to intermediate unit units consist commonly of quartz feldspar porphyry bodies and lesser quartz diorite and tonalite. Post alteration fine grained mafic dykes and sills occur to the northeastern extent of the prospect area. The lithologies have undergone widespread zonation by propylitic alteration alternating with argillic alteration both of variable widths, the zones trending NNE to NE. WNW trends of alteration have also been noted. Sporadically mineralised quartz veins, varying from 0.1 to 1m wide are hosted within argillic lithologies trend 035-060o and dip steeply to the SE. Remnant limestone caps with limited areal extent overly this sequence in the far NW and SE, but is also thought to pre-date the alteration and mineralisation events. Relative timings of the intrusive emplacement are unclear. All of the larger intrusive bodies appear to have been subjected to the same alteration events (propylitic, possibly early sericitic, then argillic), accompanied by the weakly developed quartz± base/precious metal veining, as to the host andesite/dacite.
Dominant lithology underlying the central portion of the Raboya Prospect appears mainly as a dacitic (remnant quartz phenocrysts common) breccia, the origins (volcanic or hydrothermal, or combination) remain yet unclear. Unbrecciated but altered dacitic pyroclastics are also common. The south western portion is dominated by an andesitic sequence of fine- to coarse- grained pyroclastics and columnar-jointed lava. The exposures are strongly argillically altered at both northern and southern extremities, with a weakly propylitically altered central section rarely visible beneath the talus cover. Quartz-limonite veinlets, 2-5 cm wide, trending north- south and dipping generally 70° towards the east, are sporadically dispersed within the northern argillic zone. The eastern edge is overlain by a young gently dipping sequence of epiclastics comprising calcareous ash/ lithic tuff, sandstone and claystone. The prospect area is dominated by a strong 020-030° structural grain, with two other structural directions noted as north-south and trending approximately 150°.
The Ramit prospect is underlain by porphyritic andesite (sub-volcanic or lava?) intruded by diorite, and possibly later stage quartz-feldspar porphyry (QFP). A young surface breccia and a locally thin veneer of recent alluvium cover the low lying central part of the area. The dominant lithology, andesite, was mapped in the north, central and southwest of the area. The QFP, in the NW, is whitish in color with prominent medium grained quartz (15-20%)-feldspar phenocrysts. This rock has a similar texture to the quarry rock on the western edge of the Semoan prospect, near the main road. Advanced argillic alteration is distributed in the south and, sporadically, the NW affecting both andesite and QFP lithologies, while argillic alteration appears distributed in a For personal use only use personal For central north-south belt affecting mainly andesite. A significant NNE trending structure expressed as a sharp ridge forms a slight bottleneck to the Jorokramit valley.
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Figure17: Semoan-Ramit-Raboya Prospect - Geology and Alteration.
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7.2 Mineralisation The Semoan-Ramit-Raboya prospect area has been interpreted as representing a remnant eroded edifice of a major volcanic center. Complex lithologies featuring felsic volcanics and higher dacites along with the dominantly andesitic volcanics and coarse pyroclastics with underlying diorites are thought to be favorable indicators for hosting porphyry-high sulphidation style mineralisation.
7.2.1 Semoan Prospect
The lower elevations of the Semoan prospect are dominated by argillic altered (south and west) and propylitic altered (north and east) andesitic volcanics and volcaniclastics. Here, sporadic quartz veins, varying from 0.1 to 1m wide and generally hosted within argillic rocks, trend between 035-060° and predominantly dip steeply SE. The veins appear finely compact, often milky sometimes vuggy, and often host sparsely disseminated pyrite, chalcopyrite ± malachite, sphalerite + galena, and limonite.
Plate 3: Typical quartz textures found in veins in the north and east of Semoan Prospect; milky quartz with hematite/limonite infill- low sulphidation style mineralisation.
Approximately halfway up the hill slopes the andesitic sequence disappears beneath a cover of soil supporting argillic/advanced argillic altered dacitic scree/boulders. Outcrop is very rarely observed above this line, and generally represents structurally-controlled higher quartz/silica content in the alteration assemblage. The advanced argillic scree displays quite a variety of For personal use only use personal For textures and compositions, also implying a strong degree of zonation within the upper sequence. Generally, iron-oxide stained massive to vuggy± chalcedonic banded quartz and quartz-alunite ± kaolinite ± pyrophyllite ± diaspore, often brecciated, boulders are prevalent.
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These rocks are usually strongly leached and although fresh sulphide occurrences are rare, there is sufficient evidence, such as strong iron oxide staining and euhedral cavities, to suggest they were volumetrically significant pre-oxidation.
It is unclear whether the breccia textures represent a remnant capping of dacitic volcaniclastic breccia, an eruptive center coeval with the more felsic intrusives, or is of hydrothermal origin. Regardless, it has relatively high permeability, having attracted and captured the bulk of the late stage mineralised fluids. Such permeability would have also been enhanced by the well- developed NW, NNE, and NE structures mapped in the field. These could possibly also have provided feeder channels. Such structures are also highlighted by anomalous soil geochemical pattern: NNE (625 x 250m) and NE (1000 x 125m) trends, >0.07 ppm Au, that reflect the distribution of silicified breccias.
7.2.2 Raboya Prospect
Similar to the Semoan prospect, though not as evident due to more extensive soil/talus cover, lower elevation exposures of the Raboya prospect also display base metal mineralisation usually associated with neutral pH fluids. Quartz-limonite veinlets, 2-5 cm wide, trending north-south and dipping generally 70° east, are sporadically dispersed within the northern argillic zone at Poto Batu. Channel sampling here revealed the presence of sulphides (pyrite, chalcopyrite- malachite, and sphalerite/galena) and anhydrite coatings along fracture and joint planes. At Poto Batu, channel sampling of the road cuttings revealed relatively high base metal ± silver values (from trace levels to 0.29% copper, 4% lead, 2.5% zinc, and 103 g/t silver accompanied by 1.23 g/t gold).
Above the extensive talus slopes rare outcrops of dominantly advanced argillic altered dacitic pyroclastics and breccias host Au-anomalous vuggy quartz ± pyrite zones and smaller veins. One of these outcrops, the highly visible Tebe walls, was the earliest inspected and confirmed the presence of advanced argillic alteration within the property here, intensely leached, often overhung exposures, commonly jarosite stained, display “ghost” veining and brecciation in an intensely quartz-alunite-kaolinite-clay altered dacite. However, gold was found to be only barely anomalous (up to 0.11 g/t). The bulk of Au anomalism (a substantial cluster ranging from 0.1 to 6.11 g/t Au) is confined to the main peak and the immediate surrounding ridges, covering an area of 400m north-south x 550m EW. Elevated copper (max. 0.19% copper), arsenic (max. 469 ppm) and antimony (max. 99 ppm) geochemistry was also reported from the area.
Three dominant structural directions were noted as likely controlling alteration and mineralisation. The largest vuggy quartz body mapped (260 m x 130m), is centered about 175m NE of Olat Raboya peak and displays a strong 020-030° structural grain which appears topographically through-going towards Olat Semporea and onwards through the “bottleneck” and up towards Olat Langebong (429m), about 700m west-south-west from Semoan peak. The body is characterized by strongly oxidised vuggy quartz-hematite-manganese oxide. Quartz-
alunite ± kaolinite alteration is noted as pods within the body. A late stage event has For personal use only use personal For sporadically flooded and infilled the vugs and micro-fractures with either fine grained quartz, or chalcedony, with accompanying disseminated sulphides.
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Plate 4: Oxidised surface sample; vuggy quartz alteration typically underlying the Olat Raboya area. Limonite encrusted veins and hematite infilled micro fractures are common.
The other two subordinate structural trends (north-south and ~150°) were mapped only in the vicinity of Olat Raboya. The former is expressed as a resistant ridge topped by vuggy quartz scree cobbles and sub-crop trending from the south of Olat Raboya up towards the peak and slightly beyond (as evidenced by rock chip geochemistry), forming a mapable length of ~250m. On the eastern side of the peak, the north-south direction is also noted as grossly aligning small outcrops of resistant vuggy quartz, more or less elongated in the 150° direction (en-echelon?), and forming a very steep ENE facing slope of about 250m length. Gold-anomalous rock chip samples from the outcrops and highly gold-anomalous soil samples immediately down-slope of the scarp indicate this structural combination may also control additional mineralisation.
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7.2.3 Ramit Prospect
Ramit prospect is characterised by an equi-dimensional 2 km diameter inferred intrusive or sub- volcanic body. This intrusive or sub volcanic body is interpreted to be partly truncated on its eastern side by north-trending fault zones and centered within the Jorokramit valley from aeromagnetics. This was later further supported by a strong chargeability anomaly, interpreted as a large and perhaps significant porphyry target, centered beneath 1100 m along IP line D in the Jorokramit valley.
More detailed field checking revealed the broad mid-section of the valley and its adjacent foothills to be largely overlain by a more or less equi-dimensional 800m diameter blanket of breccia material, represented on surface by a boulder field (some up to small house size) of a chaotic mix of variably altered (chlorite, through argillic, to quartz-sericite) polymictic clasts of widely ranging sizes and angularity, generally matrix supported by a banded hematite-rich rock flour. Many of the quartz-sericite altered clasts host quartz and iron oxide rich veinlets and abundant fine disseminated euhedral iron oxide-filled cavities, interpreted as deriving from a possible mineralised stockwork zone at depth At the time, the breccia field was thought to represent a possible diatreme apron (mass flow off the northern face of the Olat Samporea swell zone now appears more likely).
Such evidence was thought to support a model of a central porphyry source driving the upflow & outflow of hot mineralised acidic fluids along an adjacent feeder structure, in this case each way along the prominent through-going 020-030° structural zone mentioned above. Preferential dumping of these fluids in the relatively permeable upper dacitic pyroclastics rather than the lower andesitic sequence may have given rise to the Semoan-Raboya massifs representing two discrete composite structurally-lithologically controlled Au-anomalous high-sulphidation systems.
Near creek level, at the “bottleneck”, this significant feeder zone, locally referred to as the Samporea structure, displays a strong and extensive outcrop pattern of quartz-sericite altered, variably quartz-iron oxide veined/stockworked rock of indeterminate lithology, occasionally cut by upright fluidized breccias up to 2m wide. The zone forms a prominent ridge extending from the valley floor up to Olat Samporea (305m) and offers an excellent window to the alteration/mineralisation transition between the lower quartz-sericite altered environment and the upper advanced argillic environment. The zone noticeably swells out towards the east in the vicinity of Olat Samporea possibly due to the influence of cross-cutting structures at this point.
7.3 Geophysics Seven IP (induced polarisation)-resistivity survey lines totaling 13.9 line km transected the entire 5 km length of the Semoan-Ramit-Raboya complex (Figure 19). Survey lines were established about 330° and 345° orientations and were designed to traverse areas of potential high and low sulphidation epithermal mineralisation, along with porphyry-copper target(s).
For personal use only use personal For The interpretation of the aeromagnetic data reveals one of the most striking anomaly (or magnetic signature) combinations clearly covering the Semoan-Ramit-Raboya prospect areas. It appears as a buried intrusive, sub-adjacent to an inferred volcanic center, central to two large
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zones of inferred silica alteration both coinciding with observed advanced argillic altered rocks hosted in both prospects.
This configuration was thought to fit the model of upflow & outflow of hot mineralised acidic fluids both ways along S1 and/or S2 structures from a central buried heat source (possibly a mineralised porphyry body) located beneath the Blang Jorokramit valley.
The IP results and subsequent interpretation support this model, with Line D, in the Jorokramit valley, displaying a large (300m width), intense (>60 msec) chargeability anomaly underlying the surface breccia with an adjacent high resistivity anomaly co-incident with the Samporea structure, an intermediate argillic/phyllic(?) altered stockwork-veined andesite occupying a broad structural zone of more positive relief. As mentioned above, this structure was interpreted as a significant through-going possible feeder to both the Raboya and Semoan prospects.
The main chargeability zone, interpreted by Elliot to represent possible porphyry mineralisation, is centered beneath IP line D (Figure 20), with a somewhat weaker response beneath the east side of IP line E, and two moderate responses beneath the central segment of IP line C, possibly indicating bifurcation of the anomalous chargeability zone somewhere north of IP line D. Thus a potential zone of porphyry style mineralisation is indicated up to 350m wide and extending up to 1,500m in a NNE direction, parallel with the Samporea structure, part of which forms the relative topographic high western shoulder to the porphyry. This structure is defined by a more or less coincident wide moderate to strong resistivity and chargeability response extending over 5.5km from south of Olat Raboya to north of Olat Semoan.
Other projected zones of moderate to strong resistivity appear to either parallel the main NNE structural direction or reflect the conjugate NW to NE structural pattern commonly noted in the field. For most of its length, the Samporea structure also displays a moderate to strong chargeability response, possibly implying sulphide mineralisation at depth. Several other chargeability anomalies appear as discrete elongated bodies.
For personal use only use personal For
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September 2012 For personal use only use personal For Figure18: IP Line Locations - Geology alteration.
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Figure19: Proposed Diamond Drill Holes over Inversion Model of Dipole-Dipole IP Survey.
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7.4 Geochemistry Low level BLEG and stream sediment Au-±Ag±Cu geochemistry is noted from a number of streams draining the general Semoan-Ramit-Raboya prospect area.
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Figure20: Semoan Prospect-Soil Sample Location and Au Geochemistry.
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Semoan Prospect- Soil Sampling: Of the 251 soil samples taken over the Semoan prospect the mean gold value was calculated at 0.03 ppm Au with 28 returning greater or equal to 0.05 ppm Au, the highest being 0.77 ppm Au collected from nearby Semoan peak. Other significant elements included Copper (mean of 65 ppm, max 876 ppm), Lead (mean 64 ppm, max 1,080), Zinc (mean 148 ppm, max 6,180 ppm), Arsenic (mean 39 ppm, max 488 ppm), Antimony (mean 3 ppm, max 79 ppm), and Molybdenum (mean 2.8 ppm, max 71 ppm). Gold displayed a moderate correlation with Antimony, weak with Arsenic which also correlated weakly with Antimony and Molybdenum (Figure 21).
Raboya Prospect- Soil Sampling: Of the 176 soil samples taken over the Raboya prospect the mean gold value was calculated at 0.06 ppm Au with 34 returning greater or equal to 0.05 ppm Au, the highest being 2.21 ppm Au collected from amongst a grouping of other anomalous samples at the bottom of a resistant scarp to the east of Raboya peak. Other significant elements included Copper (mean of 56 ppm, max 253 ppm), Lead (mean 29 ppm, max 152), Zinc (mean 38 ppm, max 655 ppm), Arsenic (mean 50 ppm, max 2,630 ppm), Antimony (mean 2.5 ppm, max 38 ppm), and Molybdenum (mean 2.7 ppm, max 334 ppm). Gold displayed a weak correlation with Arsenic only. The only other notable correlation was nearly a 1:1 ratio of Arsenic to Molybdenum (Figure 22).
Again it can be noted that Au anomalism in soil appears to loosely coincide with the distribution of advanced argillic altered, mainly brecciated dacite.
Semoan Prospect- Rock Chip Sampling: Of the 258 rock samples taken over the Semoan Prospect, the mean gold value was calculated at 0.19 g/t Au with 65 returning greater or equal to 0.1g/t Au, with only 8 of those above or equal to 1 g/t. The highest assay (23.3 g/t Au with 261 ppm Antimony) from the entire sampling program was collected from a quartz vein zone along a ridge trending south west from Semoan. Other significant elements included Silver (mean of 3.2 g/t, maximum of 62 g/t), Copper (mean of 141 ppm, max 3,070 ppm), Lead (mean 330 ppm, max 10,800), Zinc (mean 149 ppm, max 6,680 ppm), Arsenic (mean 54 ppm, max 461 ppm), Antimony (mean 9 ppm, max 261 ppm), and Molybdenum (mean 3.5 ppm, max 65 ppm). Gold displayed a weak correlation only with Antimony which also correlated with Arsenic (Figure 23).
Ramit Prospect- Rock Chip Sampling: Of the 91 rock samples taken over the Ramit Prospect, the mean gold value is 0.05 g/t Au, with a maximum tenor of 0.91 g/t Au. Other significant elements included Silver (mean of 4.4 g/t, maximum of 153 g/t), Copper (mean of 100 ppm, max 2,040 ppm), Lead (mean 385 ppm, max 20,200), Zinc (mean 217 ppm, max 13,900 ppm), Arsenic (mean 35 ppm, max 298 ppm), Antimony (mean 4 ppm, max 166 ppm), and Molybdenum (mean 9.5 ppm, max 60 ppm). Gold displayed a strong correlation with both Silver and Antimony, weak with Arsenic. Silver also correlated well with Antimony, weak with Arsenic and Lead. The base metals correlated with
For personal use only use personal For each other as did Arsenic with Antimony.
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Raboya Prospect- Rock Chip Sampling: Of the 368 rock samples taken over the Raboya Prospect, the mean gold value was calculated at 0.27 g/t Au with 146 samples greater or equal to 0.1 g/t Au, with 29 of those above or equal to 1 g/t. The highest assay (6.11 g/t Au) was collected from a vuggy quartz vein zone close to Raboya peak. Other significant elements included Silver (mean of 1.1 g/t, maximum of 103 g/t), Copper (mean of 67 ppm, max 2,940 ppm), Lead (mean 174 ppm, max 39,800), Zinc (mean 260 ppm, max 25,400 ppm), Arsenic (mean 89 ppm, max 1,390 ppm), Antimony (mean 4.5 ppm, max 99 ppm), and Molybdenum (mean 2.3 ppm, max 53 ppm). Neither gold nor silver displayed correlations with any other element while Copper correlated with Lead and Arsenic with Antimony. In general, the highest gold grades were returned from the advanced argillic alteration zones, while the base metals proved richer in tight quartz veins in the propylitic and argillic alteration zones at usually lower elevations. Silver and Molybdenum were shown to be more mobile and unpredictable.
September 2012
Figure21: Raboya Prospect Soil Sample Location and Au Geochemistry.
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Figure22: Semoan Prospect Rock Sample Location and Au Geochemistry.
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7.5 Drilling The Ramit scout diamond drilling program, similarly to Lemonga, utilised a man portable rig. The program commenced in April 2006, with four holes drilled for 1,218.75m and an average recovery rate of 97.5% (Figure 24).
All holes were drilled perpendicular to the interpreted main NNE structural direction, thought to control the distribution of mineralisation to a large extent. Inclinations varied between -45° and -65° depending on target type. Appendix 3 documents the drilling parameters.
S eptem ber 2012
Figure23: Composite Drill Cross Section (Line D) - Ramit Prospect.
RMD-01 and 04 both tested the prominent chargeability anomaly from either side while RMD- 02 and 03 tested the broad resistive stockwork zone hosted in the Samporea structure, again drilling towards each other from either side of the zone.
Drilling intersected narrow zones of elevated gold, copper and molybdenum geochemistry and variable alteration styles including advanced argillic, intermediate argillic/phyllic and propylitic alteration.
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8. J3 Prospect
8.1 Prospect Geology Detailed geologic mapping at J3 Prospect (Liang and Bedening areas) suggests a stratigraphic sequence of undifferentiated volcanics with intercalations of volcaniclastics and micritic to fossiliferous limestones (Figure 25).
The undifferentiated volcanic lithologies consist dominantly of andesitic flows and pyroclastic rock with volcaniclastic sedimentary intervals of well-laminated gritty sandstone, siltstone, shale and minor calcareous rock units. This volcano-sedimentary package occurs within the central section of the prospect and appears to host most of the mineralisation.
Limestone units comprise coralline biomicrites that grade up into massive micritic forms and unconformably overly the undifferentiated volcanics.
NW, NE with minor north-south and EW striking structures mostly evident from aerial photos and Landsat imagery are the main structural pattern in the area. These same structures are observed in the field as veins, faults and shear zones. The ENE striking Liang fault and same NE and NW structures are found locally associated with hydrothermal breccia. The breccia locally exhibits multiple brecciation events with clay-silica as dominant matrix or breccia fills.
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Figure24: Geology and Alteration Map -J3 Prospect.
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8.2 Mineralisation Silicification is largely confined within a shallowly dipping basal limestone unit overlying dominantly argillic altered andesite. The persistent strike of the silicified zone does provide evidence for some degree of structural control (feeder?) on mineralisation. The silicified limestone rarely reaches a thickness of 3m as a flat lying ledge, but original true thickness cannot be judged due to the effects of surface erosion. Near the northern end of the zone, an exposure approximately 15m long across the strike of the structure was sampled.
The altered limestone or jasperoid appears as a black to grey coloured massive fine sucrose textured quartz, subsequently cut by irregular small to medium veinlets of fine to medium grained white translucent crystalline quartz. This latter stage quartz also forms drusy vug linings and breccia matrices. It is inferred that the numerous vugs were formed by the decarbonatization process immediately prior to silicification, rather than by late stage acid leaching. Also, much of the brecciation commonly noted may in fact be primary in nature, some auto-brecciation common in certain basal limestone lenses. The permeable nature of this coarser clastic horizon would offer an enticing host to flooding silica-rich fluids. Sulphides are present as indicated by iron oxides and rarer jarosite staining, but are so finely disseminated as to defy macroscopic identification even with hand lens. Silvery glitters suggest an arsenic component.
Plate 5: Early intensely silicified limestone as massive black to grey very fine grained sucrose quartz (jasperoid) is cut and brecciated by white translucent fine to medium grained crystalline quartz. Iron oxide staining indicates the presence of sparse, finely disseminated sulphides.
Parallel and orthogonal faulting may be common as suggested by several abrupt linear exposures of For personal use only use personal For the jasperoid ledge, and in fact the northernmost exposure appears truncated by a cross-cutter. Steeper dips immediately to the north of this exposure may indicate the jasperoid ledge is downthrown on the north side. Micro-faulting and fracturing is common within the jasperoid, the most dominant being vertical to sub-vertical striking north through to NW.
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Mapping and sampling has indicated mineralised jasperoid occurrences are situated on the eastern edge of a 1.8 x 1.3 km zone of widespread anomalous gold soil geochemistry. Moderate base metal, Arsenic, Antimony and Molybdenum soil anomalies as well as IP and resistivity anomalies are associated with elevated gold soil geochemistry throughout the area.
Auriferous quartz-pyrite-base metal veins, veinlets, & stockworks are commonly distributed within the phyllic altered sequences to the west of the grid area, but remain too sparse to constitute a bulk tonnage target on their own. They are possibly remnant feeders to the jasperoid mineralisation, and commonly occupy NW through north to NE structures of apparently limited strike length.
8.3 Geophysics Two orientation IP ground survey lines over the area of interest at the J3 Prospect defined geophysical signatures suggestive of subsurface lateral extensions of known jasperoid surface mineralisation. Modeling suggests that these subsurface bodies are flat-lying, with lesser north- south structural feeder zones postulated in the eastern grid area. Further to the west similar geophysical signatures have been noted in areas of sub-cropping jasperoid and extensive talus scree fields.
8.4 Drilling A total of 413.6 m from seven scout holes were drilled in April 2007 testing down-dip extensions of high grade jasperoidal surface mineralisation and inferred fault-feeder structures (Figure 26). Appendix 4 details a full listing of the drill hole parameters.
With the exception of J3DH-02, all drill holes intersected a gently west-dipping jasperoid layer of variable thickness (intercepts of 0.2 to 5.55m recorded), which assayed from 0.05 to 2.33 g/t Au. This layer is contained within a volcano-sedimentary package of similar orientation and largely consisting of fine andesitic tuff, porphyritic andesite lava, and a number of layers of partially brecciated (primary) fossiliferous muddy limestone, or marl, of varying thickness. This latter lithology appears to be the likely host to invading auriferous silica fluids resulting in jasperoid formation. However, the jasperoid has only been intersected in the upper layer, while unaltered marl dominates below.
Although structural features such as faulting, fracturing, and shearing were noted to be abundant, no definitive structural feeder zone was identified, despite drilling beneath several likely zones. This implies predominantly post-mineral structural movement highlighted by common competency contrast-induced shearing along both hanging wall and footwall edges of the jasperoid layer.
Comparison of the lithologies/alteration regimes encountered in the drill holes with the previous IP survey results also proved largely ambiguous. The shallow high resistivity layer recorded from the HM north area could be an expression of the exposed gently dipping jasperoid unit here, but the For personal use only use personal For highest resistivity zone recorded during the survey appears to coincide with unaltered marl overlying propylitized andesite lava towards the bottom of J3DH-05.
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Figure25: Significant Diamond Drill Hole Intersections - J3 Prospect.
Highest assays (2.0m averaging 1.93 g/t Au & 11 g/t Ag) were returned from the top of a shallow west-dipping jasperoid unit intersected from 7.2m to 12.5m in J3DH-01, drilled beneath the high grade zone of Hitam Manis. Other significant results were returned from J3DH-04 (1.10m @ 0.25 g/t Au & 3 g/t Ag from 5.40m) drilled into central HM, and from J3DH-05 (1.40m @ 0.70 g/t Au & 10 g/t Ag) drilled beneath a high grade surface channel sample at Mick’s Mungken. All other results proved negligible.
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9. Sampling Method and Approach
9.1 BLEG Sampling In the tropical weathering environment, liberated micron size Au particles are absorbed onto clays or form colloids and easily float on water. Sampling methods are designed to collect the fine size fraction of active sediment, retaining as much of the clay fraction as possible. Analytical methods such as passive leach BLEG also extract fine Au absorbed onto clays in preference to coarser Au.
BLEG sampling, using -30# mesh sieve into a 10-litre plastic container, was used to sample 3-4 fine sediment traps including silt bars, moss aggregates, overbank deposits and boulder cavities.
No water is allowed to escape from the plastic container and once a substantial amount of sediment has been collected an amount of flocculant (Magnofloc E30) is mixed with the watery sediment until suspended clay material binds and aggregates together, leaving clear water above the sedimentary mass. Water is decanted off and the sediment is placed into a large calico bag, bound and squeezed to remove excess water. The sample is then double-bagged using a large plastic bag.
Samples are dried in the sun for a period of 5-7 days and then shipped to Intertek Testing Services (ITS) prep laboratory. The average dry sample weight was 4-5 kg. For every 25 sample sites there was a random duplicate sample collected. An average sample density of one BLEG site per 1.4 km² was achieved during the sampling program.
Because of the large sample size from BLEG sampling and the involvement of four experienced survey crews, it is considered that the results reported have a high degree of accuracy, quality and reliability. Supporting this opinion is that the highest reported BLEG assay values emanate from known mineralised prospect areas.
9.2 Stream Sediment Sampling Standard sampling procedures for collection of rock samples from potentially mineralised outcrop exposures, along with float samples from hill talus and streams, first involved removing any obvious surface crustiform weathering and/or organic matter. A continuous channel of HQ/NQ core proportions using either a rock chisel and hammer, or Stihl TS50 rock saw, was then excavated. For continuous 1-3 m outcrops, samples were oriented perpendicular to any obvious mineralised structure. Emphasis was placed on collecting a uniform representative sample over the channel width to avoid sample bias. Where vein samples were taken, these were either:
(a) sampled as a single continuous channel sample from one vein margin to the other. Channel samples of the surrounding envelope from the vein margin into the surrounding wall rock, were
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(b) sampled as an RC sample where vein width was less than 15-20 cm; or
(c) sampled as a continuous RC sample of 3-5 m to ascertain potential grades in preliminary ground traverses.
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Samples were described, numbered with the relevant rock code (CH=channel, RC=rock chip or RF=rock float), bagged with relevant sample tickets and temporarily stored at the company base camp. Hand specimens of all samples were retained for future reference. Separate check (standard) samples, from Gannet and Windrift Australia, along with blanks, were submitted in a random fashion to approximate one check sample per 25 rock samples collected. Stream sediment samples of -80# were split off from the BLEG samples during sample preparation at the ITS laboratory (see section 11.0).
9.3 Core Sampling Diamond drill core was marked up principally on a 2 m interval basis, with variations on this interval based on major lithological/mineralogical differences and rarely drill core loss. In preparation for splitting by a diamond saw, drill core that was sheared and/or incompetent was wrapped in plastic wrap to minimize rock material loss and facilitate the core cutting process. The core was orientated into such a position that, upon cutting, each half was identical that of the other. Half of the core was sampled and placed into numbered calico bags, together with sample tags. The remaining half core was stored in sequentially ordered core racks in the Lemonga core storage facility. Standards were placed randomly within the sample stream, while blanks were inserted non-randomly, either within or immediately below interpreted mineralised zones. Generally, mineralisation encountered on the epithermal vein targets was limited to one or two zones per drill hole. Volcanic host-rock material has been sampled to constrain mineralisation and has been found to be predominantly un- mineralised. Based on the overall core recovery of +95%, together with the care taken in obtaining the most representative sample (in the case of veining defined as zones characterised by consistency of frequency, mineral assemblage and texture), the writer, to his knowledge, is confident that no biases exist in sample quality, recovery and sampling factors that could materially impact the accuracy and reliability of the assay results. To ensure quality and reliability of analytical results, the Company employs a quality assurance and quality control program through the systematic use of standards and blanks and the normal chain of custody measures during sample transport.
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10. Sample Preparation, Analysis and Security
No sample preparation was undertaken on site. Bulk samples were shipped directly to the Jakarta laboratory, with shipping procedures entailing the following:
(a) Bagged rock samples were visually inspected for lacerations or material deterioration; internal sample tickets were checked against exterior hand written sample numbers.
(b) Samples were double-bagged in jute bags and sealed with serial numbered laboratory security tags. A packing list was compiled to accompany the laboratory dispatch form.
(c) Bagged samples were sent via company vehicle, with a driver and trusted employee from site, to a recognised air freight courier (Elang Express) in Mataram. Once weighed in front of the company representative, the samples were further bagged by the courier agent using jute bags.
(d) The bagged samples were shipped by the courier to the sample receiving depot of Intertek Testing Services (ITS) domiciled at Building 103E, Cilandak Commercial Estate, Jakarta 12560, Indonesia.
(e) Upon receipt, security tags and samples were inspected by ITS staff for signs of tampering, and samples received checked against the sample packing list. The client would automatically be notified of any discrepancies. No instances of tampering were reported by ITS. ITS is one of the world’s largest product and commodity testing, inspection and certification organisations. The laboratory is ISO 17025 accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality control and reporting. Rock and drill core samples were analyzed for Au, Ag, Cu, Pb, Zn, As, Sb and Mo using the following methodology (see Table 5).
ROCK (RF, RC, CH, and Drill Core) ASSAY PROCEDURE AND DETECTION LIMITS a. Sample is open dried and weighed. b. Sample is coarsely crushed (-10#) and then pulverized to -200 # (95% passing through this sieve size). c. A 5 gram split and 50 gram split are retained for assay and the bulk-reject stored. d. Samples are assayed for the following elements
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Element Method Detection Limit Au FAS1B 0.005 / 0.01 Cu GA02/GA30 2.0 Pb GA02/GA30 4.0 Zn GA02/GA30 2.0 Ag GA02/GA30 1.0 As XR01 1.0 Sb XR01 1.0 Mo XR01 1.0 Table 5: Assay Method / Detection Limit.
Note, AAS methodology comprises a triple acid digest (HCl/HNO3/HCIO4) followed by an accurate volumetric finish. As part of the laboratory quality control (QC), standard reference materials, blanks and replicates were analyzed with each batch of samples. This QC forms part of the final report. In addition, selected samples are re-analyzed to confirm previous assay results.
QC results for exploration samples were all found to lie within accepted industry tolerances, i.e. gold analysis ±5%, base-metal analysis ±10-15% and XRF analysis ±50-100%. Based on the author’s experience, the adequacy of sample preparation, security, analytical procedures and QC meets the required industry standards.
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11. Data Verification
As a check on assay precision, accuracy, and repeatability, as is customary, either a blank or a standard (a variety acquired from Gannet, an Australian company specializing in quality control medium) was inserted into every batch of 25 samples. Table 6 illustrates ITS’s relatively high reliability. Out of a total of 62 standards assayed during the course of the drill program, 51 of these (or ~82%) fell below a ±5% difference, 10 (16%) between ±5% and ±7.5%, with only one highly anomalous difference where the nominal standard value was 4.78 ppm Au and ITS returned 1.06ppm Au. Similarly, out of 41 blanks, 31 returned below detection values, with only one sample (at 0.204ppm Au) erroneous.
Because exploration over the property is still at a relatively early stage, no independent verification of analytical results has been undertaken to date. Company and laboratory QC procedures (see also section 11.0 and 12.0) are thought sufficient at this stage to maintain reliability and credibility of results. All relevant field assay results were checked and verified by the writer.
LEMONGA PROSPECT Phase 1 & 2 Drill Programs Sorted Comparison of Standards with Laboratory (ITS) Au Assays DDH No. Sample No. Standard Nominal ITS Assay % No. Value (g/t (Au1) (g/t) Difference Au) LDG-51 LDG-24273 STD-2264 4.78 1.06 -77.8 LDG-03 LDG-13832 STD-2264 4.78 4.42 -7.5 LDG-41 LDG-22702 STD-2297 2.59 2.42 -6.6 LDG-38 LDG-22560 STD-2264 4.78 4.47 -6.5 LDG-25 LDG-19660 STD-2297 2.59 2.45 -5.4 LDG-35 LDG-22394 STD-2297 2.59 2.48 -4.2 LDG-33 LDG-22330 STD-2297 2.59 2.49 -3.9 LDG-55 LDG-23692 STD-343 0.21 0.2 -3.8 LDG-56 LDG-24538 STD-343 0.21 0.2 -3.8 LDG-23 LDG-19907 STD-2297 2.59 2.51 -3.1 LDG-34 LDG-22358 STD-2297 2.59 2.53 -2.3 LDG-32 LDG-22303 STD-2264 4.78 4.67 -2.3 LDG-04 LDG-13874 STD-9258 0.219 0.215 -1.8 LDG-14 LDG-13496 STD-2264 4.78 4.7 -1.7 LDG-12 LDG-13376 STD-2297 2.59 2.56 -1.2 LDG-48 LDG-24159 STD-5322 1.04 1.03 -1.0 For personal use only use personal For LDG-13 LDG-13442 STD-2297 2.59 2.57 -0.8 LDG-13 LDG-13421 STD-2264 4.78 4.75 -0.6 LDG-06 LDG-13976 STD-9258 0.219 0.219 0.0 LDG-43 LDG-22792 STD-3317 1.10 1.1 0.0
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LDG-08 LDG-13192 STD-1261 1.18 1.18 0.0 LDG-16 LDG-15321 STD-2264 4.78 4.78 0.0 LDG-17 LDG-19560 STD-2264 4.78 4.79 0.2 LDG-22 LDG-19877 STD-2264 4.78 4.79 0.2 LDG-27 LDG-22036 STD-2297 2.59 2.6 0.4 LDG-02 LDG-13748 STD-2297 2.59 2.61 0.8 LDG-02 LDG-13790 STD-1261 1.18 1.19 0.8 LDG-55 LDG-23650 STD-343 0.21 0.21 1.0 LDG-56 LDG-24446 STD-343 0.21 0.21 1.0 LDG-47 LDG-24073 STD-5322 1.04 1.05 1.0 LDG-50 LDG-24200 STD-5322 1.04 1.05 1.0 LDG-11 LDG-13343 STD-2264 4.78 4.84 1.3 LDG-20 LDG-19754 STD-2264 4.78 4.84 1.3 LDG-15 LDG-15273 STD-2264 4.78 4.85 1.5 LDG-06 LDG-13955 STD-1261 1.18 1.2 1.7 LDG-52 LDG-24309 STD-2286 2.36 2.4 1.7 LDG-42 LDG-22746 STD-3317 1.10 1.12 1.8 LDG-53 LDG-23580 STD-5322 1.04 1.06 1.9 LDG-30 LDG-22221 STD-2297 2.59 2.64 1.9 LDG-46 LDG-24002 STD-2286 2.36 2.15 2.3 LDG-07 LDG-13155 STD-2297 2.59 2.65 2.3 LDG-29 LDG-22114 STD-2297 2.59 2.42 2.47 LDG-19 LDG-19631 STD-2264 4.78 4.9 2.5 LDG-37 LDG-22491 STD-2297 2.59 2.54 2.56 LDG-19 LDG-19723 STD-3317 1.10 1.13 2.7 LDG-49 LDG-24220 STD-5322 1.04 1.07 2.9 LDG-54 LDG-24366 STD-5322 1.04 1.07 2.9 LDG-01 LDG-13702 STD-9258 0.219 0.226 3.2 LDG-18 LDG-19582 STD-3317 1.10 1.14 3.6 LDG-28 LDG-22068 STD-3317 1.10 1.14 3.6 LDG-29 LDG-22156 STD-3317 1.10 1.14 3.6 LDG-36 LDG-22457 STD-3317 1.10 1.14 3.6 LDG-09 LDG-13278 STD-9258 0.219 0.227 3.7 LDG-53 LDG-23622 STD-5322 1.04 1.08 3.8 LDG-39 LDG-22593 STD-2264 4.78 4.28 4.3
LDG-40 LDG-22641 STD-2264 4.78 5.02 4.67 For personal use only use personal For LDG-09 LDG-13257 STD-1261 1.18 1.24 5.1 LDG-17 LDG-19540 STD-3317 1.10 1.16 5.5 LDG-21 LDG-19818 STD-3317 1.10 1.16 5.5 LDG-46 LDG-24044 STD-2286 2.36 2.5 5.9
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LDG-44 LDG-22843 STD-2286 2.36 2.52 6.8 LDG-47 LDG-24115 STD-2286 2.36 2.52 6.8
Table 6: Lemonga Prospect Phase 1 & 2 Drill Programs Sorted Comparison of Standards with Laboratory (ITS) Au Assays.
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12. Interpretation and Conclusion
12.1 Lemonga Prospect
Exploration of the Lemonga prospect suggests the Amy, Betty, Cici, Desy, and Evy veins as being part of a mineralised epithermal system likely situated immediately above an extensive 1 km² hydrothermal upflow zone in Miocene andesitic to overlying dacitic volcanics and tuffs. The presence of diorite porphyry dykes and diatreme breccia pipes place the area in the immediate vicinity of a magmatic centre, with potential porphyry style mineralisation at depth.
Comprehensive petrological studies have also indicated that the Lemonga vein system is multi- episodic in nature, with the initial event occurring due to extensive boiling at depth changing the chemistry of the mineralising solution, and evolving from intermediate sulphidation style to one dominated by low sulphidation at shallower depths in the system. Evidence of a subsequent event involving the introduction and/or remobilization of base-metal sulphides and silver, as well as typically barren coarsely crystalline amethystic quartz (of generally higher median FI homogenization temperatures), into pre-existing structures, suggests that, the vein system was buried to greater depths with time and perhaps rejuvenated with further heat input. It appears that this latter event, while adding substantial bulk to the lodes, has locally disrupted and diluted the earlier auriferous vein set and, together with oxidization and leaching enhanced by structural reactivation, impacted negatively on the economics of the project.
The vein system remains open at depth. Petrological evidence, particularly derived from fluid inclusion studies and mineralogical observations, suggests that the upper levels of the initial hydrothermal event have largely been preserved and predicts that there is potential for mineralisation to occur over a depth range of 450 m, and if gas contents of the solution increase with depth, as would be expected, over an even larger range. The paucity of carbonates (despite sporadic occurrences of bladed quartz psuedomorphs) and presence of adularia in the mineralised zones, implies that current drilling levels are close to, but still above, a substantial boiling zone where gold grades are expected to increase.
Results of the geophysical (CSAMT) survey completed over the Lemonga prospect certainly indicate strong vertical persistence of the quartz veins to at least 400 m below sea level. The lowest intersection (LDG-55 in the Amy vein), occurring at about sea level, demonstrates how much of the total system remains vertically untested. Neither is the system closed off in the lateral sense.
Selective trenching and mapping late in the program uncovered evidence that mineralised structures may extend a further ±600 m south of the most southerly drill hole, LDG-37, with the identification of mineralised quartz vein and hypersilicified breccia outcrops and sub crops. An
untested SSW trending splay off the Amy vein in the vicinity between LDG-01 and LDG-31, up to 250 For personal use only use personal For m into the Sungai Aimanggah headwaters, is also suspected on the basis of sporadic sub-crop and CSAMT signature. Favourable host-rock geochemistry was returned from channel samples in altered polymictic breccia as far north as line 11600N. The CSAMT survey also provided strong evidence of substantial lateral extensions to all the veins beneath cover. In particular, the strongly resistive
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signature of the Desy vein can be traced along a contiguous 500 m length, with only the central 50% of that length drill tested to date.
Outcrop and drill core observations indicate abundant base-metal sulphides, such as sphalerite, galena and pyrite, in the Amy Vein but lacking in the Desy and Evy Veins.
Other significant aspects highlighted by the drill program are:
The recognition of blind, mineralised veins and sheets found sporadically distributed, more or less parallel to most of the main veins. The best example of this is, again, in the vicinity of the Desy Vein where grades and thicknesses of such veins are comparable to those of the main vein.
The presence of a substantial thickness of mineralization in the footwall to the Amy Vein intersected in LDG-21. While an isolated occurrence poorly understood to date, it serves to demonstrate that such favourable structural traps may be intersected by further drilling.
It is concluded that a substantial portion of the Lemonga epithermal vein system remains largely untested and that there is a good possibility of gold grades increasing with depth to a point well below the current drilling levels. It should be noted, however, that such mineralisation will most likely be limited to mineralised shoots rather than being pervasive along veins. Such shoots would be best developed in vein swells and where there are changes in dip of the veins. The coalescence of veins at depth, a distinct possibility for theAmy/Betty veins, may also provide favourable structural sites for gold deposition. This limitation, together with the above-mentioned destructive effects of the fluid invasion produced by the later hydrothermal event, and subsequent structural reactivation, lends some unpredictability to any future drilling program. Balancing this, however, is the lateral and vertical persistence of the mineralised structures.
12.2 Semoan-Ramit-Raboya Prospect Interpretation of exploration results suggest that the Semoan-Ramit-Raboya prospects form part of a large mineralised hydrothermal system occupying a remnant eroded difice of a major volcanic center and hosted in Miocene andesitic to overlying dacitic volcanics and tuffs. The presence of diorite porphyry intrusives and widespread hydrothermal brecciation places the area in the immediate vicinity of a magmatic centre and it was confirmed by the petrological contractor (White, 2006) that there is potassically altered diorite porphyry at the Ramit prospect which may have some associated copper-gold mineralisation.
Further petrological studies supported by PIMA analysis have also indicated that both the Semoan and the Raboya prospects have undergone periods of overprinting from propylitic alteration to
For personal use only use personal For argillic (quartz-sericite at depth) and at higher levels to advanced argillic assemblages, affecting the overlying dacitic rocks in particular. Extensive rock and soil geochemical sampling has demonstrated that this latter event has been accompanied by enhanced gold and patchy arsenic and antimony mineralisation (partly retro-graded in the Semoan area).
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This is particularly true of the Raboya prospect where a substantial cluster of rock chip and sub-crop float samples ranging from 0.1 to 6.11 g/t gold were collected from an area 400m N-S x 550m E-W encompassing Raboya peak (please refer to section 7.4 for further information). The prospect appears to straddle regionally significant cross-cutting NE and NW trending structures, with the best gold grades confined within NNE trending vuggy quartz+/-hematite (pyrite when unoxidized) altered zones up to 15m wide and 260m long. These are enveloped by quartz-alunite +/- kaolinite altered ominantly andesitic volcanics and breccias forming a distinct resistant cap surrounded by clay altered rocks largely masked by abundant soil and scree. Propylitized andesites form an outer halo to the above sequence, the package suggesting a structurally-controlled high sulfidation system. Based on topographical and ground geophysical evidence, the main NNE trending structure appears through-going past the altered and mineralised Ramit diorite porphyry body and into the upper elevations of the Semoan prospect. Here, advanced argillic assemblages accompanied by gold mineralisation is also evident, though somewhat more patchy than the Raboya mineralisation.
Both upflow and outflow high-sulfidation models could be applicable here. The outflow model is supported by IP anomaly responses, with a source centered near the Olat Samporea area (IP Line E), and fluids out-flowing towards the south utilizing dominant SW-S-SE structural directions and/or relatively permeable/porous dacitic lithology as conduits. Alternatively, the widespread envelope of argillic altered rocks around the advanced argillic at Olat Raboya suggests a somewhat more vertical vector for fluid flow. SKM's petrology report considers the possibility of multiple mineralisation events with complex overprinting between them, but also cautions that the presence of zunyite in one of the samples suggests that the level of erosion is below that where auriferous mineralisation normally occurs.
Porphyry consultant Gerry Clark (2006) believes that the 'inferred intrusive' is not related to a porphyry copper system. He postulates that hydrothermal alteration seems more related to near in- situ alteration above a cupola. But given that heat/solution is passing up from a cupola the silica capped ridges (Semoan & Raboya), including the silica cross structures are valid concentrating sites for ascending mineralised fluids.
12.3 J3 Prospect The apparent “nugget” effect is difficult to explain, as the large majority of the samples are relatively fresh, unoxidized. Theoretically, in carbonate replacement style deposits, Au is usually very finely disseminated as free grains encapsulated within sulphides, the quartz matrix, and within such minerals as illite in vug fills. The results support Newmont’s initial RC sampling of the zone and due to the possibility of upscale tonnage potential of the flat-lying bodies, obviously more work needs to be done on this target. The J3 anomaly appears to fit snugly within the “Carbonate Replacement Au- Ag” mineralisation type wherein island arc settings favourable host horizons of small restricted
For personal use only use personal For basins are intruded by or in juxtaposition with intrusives, or at least with clear intrusive related. The simplicity of steeply dipping fault/fracture channeled hydrothermal fluids into a receptive flat-lying layer is appealing, and evidence of such is certainly visible at J3.
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13. Recomendations
13.1 Lemonga Prospect Further drilling and staged evaluations will represent the bulk of future work programs over the Lemonga prospect. However selective, some additional limited surface work will also serve to complement and possibly guide the subsurface investigations. Such work will likely involve costeaning and trenching in the following areas:
Amy Vein far south area, where TR-41 returned 5.0 m @ 3.65 g/t Au and 4 g/t Ag. Requires closure towards the south.
Amy/Betty veins convergence area, to firm up understanding of the controlling structures, particularly between TR-3 and TR-4 and TR4 and TR-18.
The suspected SSW-trending splay off the Central/South Amy Vein junction into the headwaters of Sungai Aimanggah.
The far northern portion of the North Amy Vein, which requires geochemical closure as well as firming up understanding of the controlling structures here.
The far north of the Betty/Cici vein system, a large area of strong to intensely altered scree cover within which only two short costeans have been excavated to date.
Both the far northern and far southern extensions of the Desy Vein require closure, as demonstrated by both LDG-54 and the CSAMT survey.
Likewise, the extensions of the Evy Vein system, particularly in the north, require closure.
The prevalence of “blind” veins intersected during the drill program, particularly within the Desy/Evy vein areas, suggests the excavation of at least one long costean, initially on the southern fall of the saddle area, from the vicinity of the Betty/Cici vein convergence ESE to beyond the Evy Vein. Apart from obvious vein exposures, attention should also be directed towards carefully mapping out any variations in the predominantly chloritic alteration envelope. Argillic zones, particularly those displaying reddish soil supporting quartz fragments, may in fact represent leaders above mineralised veins which swell at depth. Selected zones may be trenched a short distance along strike in order to confirm their orientation.
Although both surface and sub-surface investigations of the western side of the Baleong
For personal use only use personal For Breccia zone proved disappointing, anomalous surface geochemistry (particularly high levels of Ag derived from its eastern side) supported by underlying broad zones of high resistivity recorded from far eastern extensions of 93 the CSAMT lines, was not fully investigated. Some selected E-W costeans through the extensive scree cover may be worthwhile here.
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Detailed structural mapping of vein cross-cutting relationships and alteration have to be done to identify potential high grade mineralisation zones. While the location and extent of further drilling will in part be controlled by the results of further surface work, outlined above, there remains enough scope, based on previous work alone, to recommence a drilling campaign. Referring to the long-sections (Figures 14 to 17) there appears considerable latitude for intersecting structurally favourable areas of the Amy Vein below sea level, and for the remaining veins, below 200 m above sea level. Of course, another advantage of stepping back and drilling deeper is the enhanced probability of intersecting more blind veins.
A core orienting program is recommended to identify sub-surface vein orientation.
Rare-earth element analysis is recommended for diorite and another intrusives, to identify the magma characteristics related with LILE and LREE content and potential porphyry Cu-Au deposits.
13.2 Semoan-Ramit-Raboya Prospect Although no definitive porphyry style mineralisation was recognised during this phase of exploration, this does not necessarily preclude the existence of such mineralisation here. The Samporea area, in particular, appears promising as a potential plug-like intrusive strongly quartz- sericite-pyrite altered and stockwork veined beneath an advanced argillic cap as distinct from the Ramit diorite porphyry. Although only returning weakly anomalous gold from rock and soil sampling, the area is strongly leached and economic mineralisation may occur at depth. It is recommended to run some ground magnetic lines over and perpendicular to the Samporea structure trend. Further sampling at the Raboya prospect is also warranted, concentrating on all mineral-bearing structures and their projections. This would no doubt entail some trenching/costeaning in the upper portion of the prospect area. Strong alteration at the Semoan prospect, while volumetrically impressive, is noted mainly in the talus slopes, and gold-anomalous outcrops were found to be sparse. Although the prospect returned the highest gold assay at 23.3 g/t, the next highest was only 1.87 g/t. The gold, at least in the advanced argillic altered zones, appears to be localized by late stage events associated with the mobilization of antimony. Alternatively it may be secondary in nature. As such only limited potential can be realized in this area, and no further work is recommended over the Semoan prospect.
13.3 J3 Prospect Drilling results have downgraded the priority of this target. Petrological studies are required to establish whether gold is primary or secondary in nature. Further surface prospecting is required to upgrade to drill-ready status a number of coincident surface geochemical and geophysical targets to the west of Hitam Manis. In the opinion of the author the geological merit shown by the property to
For personal use only use personal For date justify the recommended work program as detailed above.
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14. Exploration Budget
The Taliwang Project covers a large area with a number of early stage to advanced exploration targets. Further work is required to potentially estimate mineral resource classifications in accordance with the JORC Code (2004). This will require further out crop mapping, exploratory drilling programs, topographic mapping, geochemical and geophysical investigation. The proposed budget below seeks to gain further understanding of the targets defined by previous operators and delineate additional targets warranting further investigation.
Table 7: Proposed Exploration Budget.
Taliwang Project Activity Year 1 (Min. Year 2 (Min. Minimum Year 1 (Max. Year 2 (Max. Maximum Subscription) Subscription) Subscription Subscription) Subscription) Subscription Total Total
Costeans and Trenches $30,000 $40,000 $70,000 $48,000 $60,000 $108,000 Diamond Drilling $300,000 $375,000 $675,000 $1,000,000 $1,250,000 $2,250,000 Environmental Studies $30,000 $30,000 $60,000 $30,000 $30,000 $60,000 Geochemical Surveys $50,000 $25,000 $75,000 $75,000 $50,000 $125,000 Gravity Survey - - - $75,000 - $75,000 Lidair Survey $50,000 - $50,000 $50,000 - $50,000 Metallurgical Testwork - $70,000 $70,000 - $150,000 $150,000 Total $460,000 $540,000 $1,000,000 $1,278,000 $1,540,000 $2,818,000
For personal use only use personal For
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Referencences
Aneka Tambang, 1991, “Exploration Activity Report, KP DU77 NTB”, Taliwang District, Sumbawa Regency, West Nusa Tenggara Province. Unit Geology Internal Report 1991.
Aneka Tambang, 1992, “Summary of Exploration Activities at KP DU77 NTB”, Taliwang District, Sumbawa Regency, West Nusa Tenggara Province. Unit Geology Internal Report 1992.
Clode, C.H. and Pratama, B., 2002, “Application of PIMA Technology in Defining Gold and Copper Exploration Targets in Island Arc Settings: A Case Study from Sumbawa and Lombok, Indonesia”, Proceedings of the 31st Annual Convention of Indonesian Association of Geologists, Vol. 1, pp. 954- 967.
Corbett, G.J. and Leach, T.J., 1996, “Southwest Pacific Rim Gold-Copper Systems, Structure, Alteration and Mineralisation”, Workshop Manual.
Garwin, S., 2002, “The Geologic Setting of Intrusion – Related Hydrothermal Systems near the Batu Hijau Porphyry Copper-Gold Deposit”, Sumbawa, Indonesia, Society of Economic Geologist – Special Publication 9, Chapter 15, p333-366.
Hamilton, W.B., 1979, “Tectonics of the Indonesian region”, US Geological Survey Professional Paper, 1078, 345pp.
Intertek Testing Services., 2004-07, “Analytical Test Results for Sample Dispatches SUMB001 to SUMB107” Confidential ITS Reports to PT. Jasa Prima Raya, 2004-07.
Maula, S. and Levet, B., 1996, “Porphyry Copper Gold Signatures and the Discovery of the Batu Hijau Deposit, Sumbawa, Indonesia”, Conference Proceedings of Phorphyry Related Copper Deposits of the Asia Pacific Region.
Newmont Mining Corporation 1995, “Newmont Reports Records Equity Gold Reserves of 92.4 Million Ounces at Year-End 2004”. New York Stock Exchange Release of 3rd February 2005.
Pacific Rim Congress 1990, “Proceedings Volume II”, Australasian Institute of Mining and Metallurgy.
Pacific Rim Congress 1995, “Proceedings Volumes I and II”, Australasian Institute of Mining and Metallurgy.
Pacific Rim Congress 1999, “Proceedings Volumes I and II”, Australasian Institute of Mining and Metallurgy.
For personal use only use personal For Perello, J.A., 1994, “Geology, Porphyry Cu-Au, and Epithermal Cu-Au-Ag Mineralisation of the Tombulilato District”, North Sulawesi, Indonesia. Journal of Geochemical Exploration 50 (1994): 221- 256.
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PT. Newmont Nusa Tenggara., 1988, “Fourth Quarterly and 1988 Annual Report”, Department of Mines and Energy.
PT. Newmont Nusa Tenggara., 1990, “Fourth Quarterly and 1990 Annual Report”, Department of Mines and Energy. PT. Newmont Nusa Tenggara., 1992, “Fourth Quarterly and 1992 Annual Report”, Department of Mines and Energy.
PT. Newmont Nusa Tenggara., 1994, “Fourth Quarterly and 1994 Annual Report”, Department of Mines and Energy.
PT. Newmont Nusa Tenggara., 1998, “Laporan Pelepasan Ke-empat Wilayah Kontrak Karya PT. Newmont Nusa Tenggara, di Palau Lombok dan Sumbawa”, Department of Mines and Energy.
PT. Newmont Nusa Tenggara., 2001, “Fifth Relinquishment Report, PT. Newmont Nusa Tenggara’s Contract of Work Areas on Lombok and Sumbawa Islands”, Department of Mines and Energy Report, December 2001.
Taufik, A. and Mulyana., 1984, “Laporan Eksplorasi Endapan Timah Hitam di daerah Lentek dan Sekitarnya, Palau Lombok, Nusatenggara Barat”, Direktorat Sumberdaya Mineral.
Titley, S.R., 1982, “Advances in Geology of the Porphyry Copper Deposits, Southwest North America”, The University of Arizona Press.
For personal use only use personal For
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Glossary
Term: Definition:
Acidic Igneous rock type containing more than 60% SiO2 as contrasted with intermediate and basic Aeromagnetic Relating to or denoting the measurement of the earth's magnetic field using airborne instruments Alluvial Pertaining to or composed of alluvium, or deposited by a stream or running water Alteration Changes in the chemical or mineralogical composition of a roc, generally produced by weathering or hydrothermal solutions Alunite A mineral, rhombohedral, usually in white, grey, or pink masses in hydrothermally altered feldspathic rocks Andesite A dark coloured, fine grained extrusive rock that, when porphyritic, contains phenocrysts composed primarily of zoned sodic plagioclase and one or more of the mafic minerals (e.g. biotite, hornblende, pyroxene) with a ground mass composed generally of the same minerals as the phenocrysts. Anhydrite A mineral, anhydrous calcium sulphate. Orthorhombic, commonly massive in evaporite beds. It alters readily to Gypsum Argillic alteration Pertaining to altering to clay or clay minerals; certain minerals are converted to minerals of the clay group Artisanal A primitive mining operator which conducts open cut or underground methods generally via hand operated methods ASIC Australian Securities and Investment Commission Auriferous Containing gold Azurite A deep blue to violet blue monoclinic mineral. It is an ore of copper and is a common secondary mineral associated with malachite in the upper zones of copper veins. Basalt A dark coloured igneous rock, commonly extrusive, composed primarily of calcic
For personal use only use personal For plagioclase and pyroxene Base-metals Any of the more commonly and chemically reactive metals e.g. lead, copper, zinc Biomicrite A limestone consisting of variable proportion of fossil skeletal debris and
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carbonate mud BLEG sampling Bulk Leach Extractable Gold sampling is a low detection limit geochemical method utilised to define geochemical anomalies warranting further investigation BQ Drill Core Drill core sample that is 36.5mm in diametre Breccia A lithology composed of angular broken rock fragments held together by a mineral cement or fine grained matrix Calcareous Containing calcium carbonate. When applied to a lithology refers to a rock that contains as much as 50% calcium carbonate Calcite A common rock forming mineral CaCO3. Commonly it is grey to white in colour, it has perfect rhombohedral cleavage and reacts readily with hydrochloric acid. Calcite is the chief constituent of limestone and most marble Chalcedony A cryptocrystalline variety of quartz. It is commonly microscopically fibrous, may be transparent or semi-transparent and has a nearly wax-like luster. Chalcedony is the material of much chert, and often occurs as deposit filling or lining cavities in rocks.
Chalcopyrite A bright brass yellow tetragonal mineral; CuFeS2 Chert A hard, dense microcrystalline or cryptocrystalline sedimentary rock, consisting chiefly of interlocking crystals of quartz less than 30 microns in diametre; it may contain amorphous silica (opal). It has conchoidal fracture, and may be white or variously coloured. It may be an organic or inorganic precipitate or a replacement product. Cinnabar A rhombohedral mineral, HgS, commonly in brilliant red acicular crystals. It is the principal ore of mercury Claystone An indurated clay having the same texture and composition of shale but lacking in its fine lamination or fissility Colloform Rounded, finely banded kidney like mineral texture formed by ultra fine grained rhythmic precipitates Comb Vein filling in which sub parallel crystals, generally of quartz, have grown
For personal use only use personal For perpendicular to the vein walls and thus resemble the teeth of a comb Conjugate fault Faults that are of the same age and depositional episode Contract of Work Must be applied for by any foreign investor who wants to conduct exploration work in a particular area
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Copper A reddish or salmon pink isometric mineral, is the native metallic element Cu Coralline Pertaining to, composed of, or having the structure of corals Core recovery The length of diamond drill core extracted relative to the length drilled Costean An excavation conducted generally perpendicular to the strike of underlying lithologies to obtain geological and geochemical information from a zone which is otherwise obscured by cover or surface weathering Covellite An indigo-blue hexagonal mineral; CuS. It is a common secondary mineral and represents an ore of copper Crustiform Vein in which the mineral filling is deposited in layers on the wall rock CSAMT Controlled Source Audio-frequency Magnotelluric Survey method utilises EM waves transmitted over a range of frequencies to determine subsurface resistivity Dacite A fine grained extrusive rock with the same general composition as andesite but having a less calcic plagioclase and more quartz
Decarbonatization The chemical process of removal of carbonates (CaCO3) from a lithology commonly by acid fluids Diamond drilling A variety of rotary drilling in which diamond bits are used as the rock cutting tool. Diamond drilling produces a constant core which allows for the capturing of detailed structural and geological information Diaspore A grey or yellowish orthorhombic mineral, diamorphouse with boehmite Diatreme A breccia filled volcanic pipe that was formed by a gaseous explosion Diorite A group of plutonic rocks intermediate in composition between acidic and basic, characteristically composed of hornblende, pyroxene, and sometimes a little quartz; the approximate intrusive equivalent of andesite Dip The angle that a stratum or any planar feature masses with the horizontal, measured perpendicular to the strike and in the vertical plane Disseminated A scattered mineral distribution throughout a rock body generally used in the description of sulphides Drill core The solid mass of cylindrical rock derived from diamond drilling from which
For personal use only use personal For geological, geotechnical and geochemical information is derived Drusy Pertaining to an insoluble residue or encrustation covered with sub-hedral quartz Dyke A tabular body of igneous rock that cust across the structure of adjacent
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lithologies or cuts massive rocks Epiclastic Mechanically deposited sediments (gravel, sand, mud) consisting of weathered products of older rocks Epithermal Said of a hydrothermal mineral deposit formed within about 1km of the earth's surface and in the temperature range of 50-200 degrees Celsius occurring mainly as veins Fault A fracture or fracture zone along which there has been displacement of the sides relative to one another parallel to the fracture Feldspar A group of abundant rock forming minerals. Feldspars are the most widespread of any mineral group and constitute 60% of the earth's crust; they occur in all types of rock. Feldspars are white and grey to pink, have a hardness of 6 and are commonly tinned, have monoclinic or triclinic symmetry and show good cleavage in two directions. Felsic A term applied to an igneous rock having abundant light coloured mineral, also applied to those minerals (quartz, feldspars, feldspathoids, muscovite) as a group Float A general term for isolated displaced fragments of a rock at surface Fossiliferous Containing fossils Galena A grey metallic mineral, PbS. It has perfect cubic cleavage, is soft and very heavy and is the principle ore of lead Geochemical sampling The search for economic accumulations of minerals by detection of abnormal concentrations of elements or minerals Geophysics The use of electric, gravity, seismic, magnetic or thermal surveys in the search for mineralisation Gossan An iron bearing weathered product overlying a sulphide deposit. It is formed by the oxidation of sulphides and leaching out of the sulphur and most metals, leaving hydrated iron oxides and rarely sulphates
Hematite A common iron mineral, Fe2O3. It occurs in rhombohedral crystals, in masses or fiberous aggregates or in deep red earthy forms. Hematite is found in igneous,
metamorphic and sedimentary rocks both as primary and an alteration product For personal use only use personal For Hornblende The commonest mineral in the amphibole group. It has a variable composition and may contain potassium and appreciable fluorine. Hornblende is commonly black and occurs in distinct monoclinic crystals or in columnar, fiberous or
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granular forms. It is a primary constituent of many acid and intermediate igneous rocks and less commonly of basic igneous rocks, and is a common metamorphic mineral Hydrothermal Of or pertaining to hot water, to the action of hot water or to the products of this action, such as a mineral deposit precipitated from a hot aqueous solution also said of the solution itself Intermediate An igneous rock that is transitional between mafic and felsic, generally having a silica content of 54 to 65 percent Intrusion The process of emplacement of magma in pre existing rock; magmatic activity IP (Induced Induced polarisation is a geophysical technique used to identify sub surface Polarisation) mineralisation. Island Arc A curved chain of islands rising from the sea floor and near to the continents. Its curve is generally convex towards the open ocean Jarosite Jarosite is a basic hydrous sulphate of potassium and iron Jasperoid A dense chert like siliceous rock, in which chalcedony or cryptocrystalline quartz has replaced the carbonate minerals of limestone or dolomite; a silicified limestone JORC Code Joint Ore Reserves Committee Code sets out the minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves Kaolinite A common clay mineral of the Kaolin group. It is the characteristic mineral of most kaolins, and is polymorphous with dickite and nacrite. Kaolin is a high alumina clay mineral that does not appreciably expand under varying water content and does not exchange iron or magnesium Landsat An unmanned earth orbiting NASA satellite that transmits multispecral images in the 0.4 to 1.1 nano micron region to the earth receiving stations Lapilli Pyroclastics in the general size range of 2 to 64mm Lava Fluid rock that issues from a volcano or fissure; also the same material solidified by cooling
For personal use only use personal For Leached The dissolution of soluble constituents from a rock or orebody by the natural action of percolating water Lead A soft heavy malleable isometric mineral, the native metallic element Pb. Lead rarely occurs in its native form, being found mostly in the form of Galena
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Limestone A sedimentary rock consisting chiefly of the mineral calcite (calcium carbonate
CaCO3), with or without magnesium carbonate. Common impurities include chert and clay. Limestone is the most important and widely distributed of the carbonate rocks Limonite A group of brown amorphous hydrous ferric oxides. Limonite is a common secondary mineral formed by weathering (oxidation) of iron bearing minerals. It occurs as coatings, earthy masses, and in a variety of other forms, and is the colouring material of yellow clays and soils Lineament A linear topographic feature of regional extent that is believed to reflect crustal structure Lithic A medium grained sedimentary rock and of a pyroclastic deposit, containing abundant fragments of previously formed rocks Lithology The description of rocs on the basis of such characteristics as colour, mineralogic composition and grain size Mafic An igneous rock composed chiefly of dark, ferromagnesian minerals, also said of those minerals Magnetics A technique of applied geophysics; a survey is made with a magnetometre on the ground or in the air, which yields local variations or anomalies in the magnetic field intensity Malachite A bright green secondary copper mineral associated commonly with azurite in the oxidised zone of copper sulphide deposits Micrite A descriptive term for the semi opaque crystalline matrix of limestones, consisting of chemically precipitated carbonate mud with crystals less than four microns in diametre and interpreted as a lithified ooze Mineralisation The process by which a valuable mineral or minerals are introduced into a rock resulting in a potential or actual ore deposit Mineralised shoot A pipe like mass of mineralisation within a deposit representing the more valuable part of the deposit Miocene An epoch of the early Tertiary period after the Oligocene and before the
Pliocene; also the corresponding worldwide series of rocks For personal use only use personal For NQ Drill Core Drill core sample that is 47.6mm in diametre Oligocene An epoch of the early Tertiary period, after the Eocene and before the Miocene Outcrop That part of a geological formation or structure that appears at the surface of
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the earth Oxidised The chemical change of a mineral compound characterised by the linkage of oxygen with one or more metallic elements Petrology The discipline of geology associated with the origin, occurrence, structure and history of rocks Phenocrysts One of the relatively large and ordinarily conspicuous crystals of the earliest generation in a porphyritic igneous rock Phyllite A metamorphosed rock, intermediate in grade between slate and mica schist. Minute crystals of sericite and chlorite impart a silky sheen to the cleavage surfaces which are commonly wrinkled PIMA PIMA is a field portable, infrared spectrometre that operates in the SWIR (short wave infrared) range of the electromagnetic spectrum for the analysis of mineral and vegetation species Porphyry An igneous rock of any composition that contains conspicuous phenocrysts in a fine grained groundmass Propylitic Alteration A type of alteration resembling greenstone and consisting of such minerals as calcite, chlorite, epidote, serpentinite, quartz, pyrite and iron oxides Pumice A light coloured cellular glassy rock commonly having the composition of rhyolite. It is often sufficiently buoyant to float on water
Pyrite Common silver to yellow isometric mineral, FeS2. It is dimorphous with marcasite, and often contains small amounts of other metals. Pyrite has a brilliant metallic luster and an absence of cleavage. It commonly crystallises in cubes, octahedrons or pyritohedrons. It is the most widespread and abundant of the sulphide minerals and occurs in all kinds of rocks. Pyroclastic Clastic rock material formed by volcanic explosion or aerial expulsion from a volcanic vent Pyrophyllite A white, grey or brown mineral. It resembles talc and occurs in a foliated form or in compact masses in quartz veins, granites and metamorphic rocks
Quartz Crystalline silica, an important rock forming mineral, SiO2. It is next to feldspar,
the most common mineral, occurring either in transparent hexagonal crystals or For personal use only use personal For in crystalline or cryptocrystalline masses. It is the most common gangue mineral of ore deposits Quaternary The second period of the Cenozoic era, following the Tertiary; also the
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corresponding system of rocks. It began two to three million years ago and extends to the present. Resistivity Resistivity is a property of material; a resistivity survey quantifies the opposition of rock material to the flow of electric current. A low resistivity indicates a material that readily allows the movement of electrical charge Rhyolite A group of extrusive igneous rocks, typically porphyritic and commonly exhibiting flow textures, with phenocrysts of quartz and alkali feldspar in a glassy to cryptocrystalline ground mass Rock-Chip Sampling The selective or systematic sampling of outcrops for geological, geochemical and petrological examination Sandstone A clastic sedimentary rock composed of grains of sand size set in a matrix of silt or clay and more or less firmly united by a cementing material (commonly silica, iron oxide, or calcium carbonate); the consolidated equivalent of sand. The sand particles usually consist of quartz and the term sandstone, when used without quantification indicates a rock containing about 85-90% quartz Sediment Solid fragmental material transported and deposited by wind, water or ice, chemically precipitated from solution or secreted by organisms, and that forms in layers in loose unconsolidated form e.g. sand, mud, till Sericitic Alteration An alteration characterised by the influx of a white, fine grained potassium mica occurring in small scales and flakes as an alteration product of various aluminosilicate minerals, having a silky luster Shale A fine grained detrital sedimentary rock, formed by the compaction of clay, silt or mud. It has a finely laminated structure, which gives it fissility along which the rock splits readily, especially on weathered surfaces. Shear zone A tabular zone of rock that has been crushed and brecciated by many parallel fractured due to shear strain. Such an area is often mineralised by ore forming solutions
Silica Silicon dioxide, SiO2. It occurs as crystalline quartz, cryptocrystalline chalcedony, and amorphous opal, dominantly in sand, diatomite, and chert; and
combined in silicates as an essential constituent of many minerals For personal use only use personal For Sill A tabular igneous intrusion that parallels the planar structure of the surrounding rock Siltstone An indurated silt having the texture and composition of shale but lacking its fine
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lamination or fissility; a massive mudstone in which silt predominates over clay SIPP Is a Letter of permit for Preliminary Survey (Surat Izin penyalidikan Pendahuluan) issued by the Department of Mines and Energy (Indonesia) giving the holder exclusive exploration rights over a Contract Area while the terms of the Contract of Works are being finalized. The permit period is usually one year SKIP Is a Permit for Preliminary Survey (Surat Keterangan Izin peninjauan) issued by the Department of Mines and Energy (Indonesia) following approval of an application that has been filed in prescribed form. It allows preliminary investigation work to be undertaken such as reconnaissance, site visits and sampling. Permit is valid for one month Sphalerite A yellow, brown or black isometric mineral (Zn, Fe)S, with a highly perfect dodecahedral cleavage and a resinous to adamantine luster. It is a widely distributed ore of zinc, commonly associated with galena in veins and other deposits
Stibnite A lead grey mineral Sb2S3. It has a brilliant metallic luster, differs from galena by ease of fusion and often contains gold and silver. Stibnite occurs in massive forms and in prismatic orthorhombic crystals that show highly perfect cleavage and are striated vertically. It is the principle ore of Antimony Stock An igneous intrusion that is less than 100km2 in surface exposure, is usually but not always discordant, and resembles a batholith except in size Stockworks A mineral deposit consisting of a three dimensional net work of planar to irregular veinlets closely enough spaced that the whole mass can be mined Stream sediment Stream sediment sampling is used to evaluate the mineralisation potential over sampling a large area based on the premise that the sediment chemistry and mineralogy reflect that of the bedrock and surficial geology of the drainage catchment area upstream from the sample site Strike The direction taken by a structural surface e.g. a bedding or fault plane as it intersects the horizontal Structure The attitude and relative positions of the rock masses of an area; the sum total
of structural features result from such process as faulting, folding, and igneous For personal use only use personal For intrusions Subcrop An occurrence of strata in contact with the undersurface of a stratigraphic unit that succeeds an unconformity on which overstep is conspicuous; a subsurface
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outcrop that describes the areal limits of a truncated rock unit at a buried surface of unconformity Subduction The process of one lithospheric plate descending beneath another Sulphide A mineral compound characterised by the linkage of sulphur with a metal Talus Rock fragments usually coarse and angular, lying at the base of a slope or cliff from which they have been derived; also the heap or mass of such broken rock considered as a unit Tectonic Pertaining to the forces involved in or the resulting structures of tectonics Tonalite Quartz diorite Trenching The excavating of rock usually perpendicular to the strike in order to obtain geological information Tuff A general term for all consolidated pyroclastic rocks Unconformity A break or gap in the geological record such as an interruption in the normal sequence of deposition of sedimentary rocks or a break between eroded metamorphic rocks and a younger sedimentary strata VALMIN Code VALMIN Code provides a set of fundamental principles and supporting recommendations regarding good professional practice to assist those involved in the preparation of Independent Expert Reports Vein An epigenetic mineral filling of a fault or other fracture, in tabular or sheet like form, often with associated replacement of the host rock Volcanic Pertaining to the activities, structures or rock types of a volcano Volcaniclastic Pertaining to a clastic rock containing volcanic material in what ever proportion and without regard to its origin or environment. Vuggy texture A texture derived from small cavities in a vein or in a rock, usually lined with
crystals of a different mineral composition from the enclosing rock For personal use only use personal For
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Appendix 1. Drill hole collars, Lemonga Prospect
Phase 1 Collar coordinates Hole ID Easting Northing RL (m) Azimuth Dip Total Depth LDG-01 481571 9035492 174 105 -45 80.7 LDG-02 481655 9035662 113 105 -45 84.1
LDG-03 481670 9035653 120.4 105 -45 92 LDG-04 481731 9035867 172.1 105 -45 78.55 LDG-05 481799 9036114 140.8 105 -45 80.2 LDG-06 481831 9036188 130.6 105 -45 93 LDG-07 481877 9036168 158.2 105 -45 72.9 LDG-08 481883 9035931 232 125 -45 81.9 LDG-09 481879 9035727 249.4 105 -45 129 LDG-10 481830 9035546 230.6 125 -45 69.5 LDG-11 482251 9035651 318.9 305 -45 68 LDG-12 482436 9035576 295.5 305 -45 90 LDG-13 482549 9035438 361.2 105 -45 126 LDG-14 482135 9035686 325.4 295 -45 130.3 LDG-15 481721 9035424 211.8 125 -45 80.7 LDG-16 481559 9035369 137.8 105 -45 141.9
Note: all holes were surveyed using a hand held GPS in the datum UTM- WGS 84 Zone 50 South
For personal use only use personal For
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Phase 2 Collar coordinates Hole ID Easting Northing RL (m) Azimuth Dip Total Depth LDG-17 9035499 481548 163.3 105 -45 163.8 LDG-18 9035533 481583 169.4 105 -45 128.1 LDG-19 9035579 481563 136.8 105 -45 200 LDG-20 9035631 481642 131.2 105 -45 140.15 LDG-21 9035612 481617 135.1 105 -45 168.4 LDG-22 9035753 481687 164.3 105 -45 108.55 LDG-23 9035696 481675 132.3 105 -45 102.5 LDG-24 9035995 481753 140.6 105 -45 85.8 LDG-25 9035834 481806 196.4 285 -68.5 146.2 LDG-27 9036074 481899 185 285 -60 215.2 LDG-28 9035799 482057 290.2 305 -45 100.2 LDG-29 9035741 481988 322.2 125 -45 137.05 LDG-30 9035665 482139 328.1 105 -45 163.85 LDG-31 9035441 481547 152.6 105 -45 128.65 LDG-32 9035680 482312 305.1 285 -45 165.5 LDG-33 9035283 481655 129.4 285 -45 89.1 LDG-34 9035500 482463 318.1 285 -45 116.4 LDG-35 9035271 481691 112.7 285 -45 165.55 LDG-36 9035500 482463 318.1 105 -45 228.3 LDG-37 9035166 481682 104.6 285 -45 103 LDG-38 9035341 481570 140.7 105 -45 100 LDG-39 9035458 482641 349.8 105 -45 183.4 LDG-40 9035569 481598 154.3 105 -45 98.5 LDG-41 9035724 481679 147 105 -45 101 LDG-42 9035789 481703 165.8 105 -45 102.5 LDG-43 9036034 481760 140.8 105 -45 106 LDG-44 9036073 481767 147.1 105 -45 100.5 LDG-45 9036400 481580 83.6 105 -45 141 LDG-46 9035837 482065 274.4 305 -45 139.15 LDG-47 9035764 481955 320.1 125 -45 142.85 LDG-48 9035754 482192 280.8 105 -45 109 LDG-49 9035604 482088 334.2 105 -45 144.35
For personal use only use personal For LDG-50 9035315 481731 141 285 -60 259.9 LDG-51 9035492 482326 298.6 105 -45 112 LDG-52 9035576 482341 314.5 105 -45 116.5 LDG-53 9035610 481786 184 285 -60 215 LDG-54 9035536 482104 321 105 -45 163.5
92 Page 178 of 314
LDG-55 9036047 481707 110.2 105 -45 230 LDG-56 9035459 482308 278.9 105 -45 119.05
For personal use only use personal For
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Appendix 2. Drill holes Intercepts at Lemonga Prospect
Phase 1 Drilling Results
Hole ID From To Interval True Width Au g/t Ag g/t LDG-01 56.15 72.2 16.05 10.3 5.37 51 Including 69.2 72.2 3 19.19 228 LDG-02 73.3 73.6 0.3 1.4 24 LDG-03 20.7 36.1 15.4 10.9 6.44 36 Including 20.7 22.7 2 25.8 25
24.7 26.7 2 2.06 9 30.7 36.1 5.4 7.58 79 LDG-04 13 15 2 1.4 1.54 9 LDG-05 48.05 56.1 8.05 5.3 0.95 5 LDG-06 20.1 22.1 2 1 1.09 1 LDG-07 8.85 11 2.95 1.7 2.04 8 Including 10.35 11.8 1.45 3.4 14 LDG-08 60.1 61.05 0.95 0.67 3.05 106 69.05 71.08 2.03 0.4 1.41 6 LDG-09 43.6 45.6 2 1.63 14 LDG-10 23.95 29.25 5.3 3.75 1.08 43 Including 26.8 29.25 2.45 1.79 72 LDG-10 42.55 44.55 2 2.21 73 LDG-11 41.8 49.7 7.9 5.6 6.02 37 Including 46.5 49.7 3.2 13.17 64 LDG-12 31.5 33.5 2 1.4 1.38 16 LDG-13 15.1 24 8.9 6.3 0.82 83 Including 15.1 18 2.9 2.06 125 LDG-14 No significant intercepts LDG-15 46.05 48.2 2.15 1.68 53 LDG-16 85.9 93.9 8 6.8 2.74 5 Including 85.9 86.9 1 7.34 6
For personal use only use personal For
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Phase 2 Drilling Results Hole ID From To Interval True Width Au g/t Ag g/t LDG-17 107.6 128.4 20.8 14.71 2.02 15 Including 107.6 110.75 3.2 2.23 5.58 59 125.3 128.4 3.1 1.99 5.8 11 LDG-18 8 10 2 1.21 114 14 16 2 1.9 79 63.15 76.45 13.3 7.63 4.66 21 Including 71.75 73.9 2.15 1.23 19.55 18 LDG-19 149.45 152.55 3.1 1.99 4.7 19 LDG-20 11 14.3 3.3 0.22 516 48.4 61 12.6 6.3 4 37 Including 54.05 56.05 2 1 13.77 73 LDG-21 31.15 41.50 10.35 1.32 2 48.6 78.3 29.7 19.1 4.34 4 68 101.65 35.25 2.05 12.60 Including 90.25 93.4 3.15 4.65 28 LDG-22 13.6 15.6 2 11 694 44.2 48.9 4.7 1.35 13.16 5 68.3 71.3 3 7.94 56 LDG-23 49.85 51.65 1.8 1.27 6.14 12 61.35 65.5 3.95 2.54 1.74 29 LDG-24 45.2 55.5 9.85 6.33 1.94 9 Including 46.85 55 3.15 2.02 2.89 15 LDG-25 70.8 74.2 3.4 1.2 1.55 6 LDG-26 1.3 13.45 12.15 1 101 11.2 13.45 2.25 1.15 2.96 9 71.4 74.55 3.15 1.57 3.04 240 LDG-27 98.7 99.6 0.9 6.21 4 129.7 131.6 1.9 0.95 2.41 5 LDG-28 8.2 13.2 5 4.53 4.87 32 Including 10.45 11.2 0.75 17.2 72 LDG-28 34 36.7 2.7 2.45 3.15 178 LDG-29 26.7 27.3 0.6 0.52 16.8 58 77.85 85.3 5.65 4.9 1.2 70 LDG-30 101.1 107.6 6.5 4.97 9.65 24
Including 103.5 105.6 2.1 1.61 24.1 34 For personal use only use personal For LDG-30 131.95 136.65 4.7 3.03 7.52 17 LDG-31 84.15 88.15 4 3.06 22.8 2 LDG-32 101.85 106.7 4.85 3.12 5.53 25 133.25 137.65 4.4 2 3
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Hole ID From To Interval True Width Au g/t Ag g/t LDG-33 No Significant Intercepts LDG-34 92.1 102.05 9.95 7.62 3.83 29 Including 97.1 98.1 1 0.8 23.1 20 LDG-35 127.55 129.65 2.1 1.35 7.9 29 LDG-36 52 53.05 1.05 0.6 12.6 185 LDG-37 No Significant Intercepts LDG-38 63.2 67.4 4.2 2.1 6.3 12 LDG-39 81.9 85.9 4 0.64 262 LDG-40 65.5 81.4 15.9 14.93 1.59 36 LDG-41 76.35 85.65 9.3 5.98 2.09 13 LDG-42 78.25 80.25 2 1.29 3.6 90 LDG-43 63.8 66.02 2.22 1.11 9.11 32 LDG-44 25.65 31.55 5.7 3.7 3.6 6 75.5 79 3.5 3.4 6.01 12 LDG-45 No Significant Intercepts LDG-46 1.6 13.95 12.35 6.175 1.58 38 Including 11.6 13.95 2.35 1.175 4.98 121 LDG-46 52.7 54.7 2 1 24.7 6 LDG-47 68.05 74.05 6.2 3.98 1.93 191 127.25 129.85 2.6 1.99 2.24 39 LDG-48 No Significant Intercepts LDG-49 131.8 134.6 2.8 1.8 3.64 24 Including 132.8 134.6 1.8 1.16 5.32 25 LDG-50 58.75 60.4 1.65 1.2 28.9 124 LDG-51 94.9 99.45 4.55 3.94 4.22 16 Including 96.7 97.5 0.8 0.7 17.2 34 LDG-52 76.7 79.75 3.05 6.2 24 92.2 95.1 2.9 1.22 3.76 35 LDG-53 No Significant Intercepts LDG-54 29.3 31.7 2.4 1.84 5.09 19 LDG-55 No Significant Intercepts LDG-56 No Significant Intercepts
For personal use only use personal For
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Appendix 3. Drill Hole Collars, Ramit Prospect
Hole ID Easting Northing RL (m) Azimuth Dip Total Depth RMD-01 481779 9028656 48 285 -65 333 RMD-02 481127 9028831 39 105 -45 300.15 RMD-03 481420 9028774 63 285 -60 260.6 RMD-04 481420 9028774 63 105 -55 325
Note: all holes were surveyed using a hand held GPS in the datum UTM- WGS 84 Zone 50 South
For personal use only use personal For
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Appendix 4. Assay Information, Ramit Prospect
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-01 0 0.7 0.7 No Sample
RMD-01 0.7 2 1.3 0.018 60 15 52 <1 22 <1 19
RMD-01 2 4 2 0.03 45 10 24 <1 9 <1 21
RMD-01 4 6 2 0.022 52 14 23 <1 5 1 32
RMD-01 6 8 2 0.042 175 11 17 <1 10 2 17
RMD-01 8 10 2 0.031 328 11 72 <1 7 2 15
RMD-01 10 12 2 0.02 95 5 121 <1 4 1 8
RMD-01 12 14 2 0.022 454 12 42 <1 10 1 8
RMD-01 14 16.1 2.1 0.064 400 6 69 <1 4 <1 22
RMD-01 16.1 18.1 2 0.005 32 14 145 <1 11 1 <1
RMD-01 18.1 20.2 2.1 0.009 16 7 143 <1 6 <1 <1
RMD-01 20.2 22.2 2 <0.005 93 11 345 <1 29 2 <1
RMD-01 22.2 23.7 1.5 0.005 48 11 355 <1 14 2 <1
RMD-01 23.7 24.95 1.25 No Sample
RMD-01 24.95 26.95 2 0.008 179 17 588 <1 8 3 1
RMD-01 26.95 28.95 2 0.012 204 12 159 <1 4 2 1
RMD-01 28.95 30.95 2 0.021 54 9 78 <1 13 1 2
RMD-01 30.95 32.95 2 0.079 5 4 65 <1 3 2 4
RMD-01 32.95 34.95 2 0.044 7 4 83 <1 4 <1 1
RMD-01 34.95 36.95 2 0.051 35 <4 75 <1 4 <1 1
RMD-01 36.95 38.95 2 0.096 17 5 74 <1 2 2 1
RMD-01 38.95 40.95 2 0.128 40 11 76 <1 6 3 2
RMD-01 40.95 42.95 2 0.066 58 7 89 <1 6 <1 4
RMD-01 42.95 44.95 2 0.074 81 21 449 <1 9 2 1
RMD-01 44.95 46.95 2 0.054 139 22 597 1 11 3 <1
RMD-01 46.95 48.95 2 0.033 18 17 50 <1 6 1 2
RMD-01 48.95 50.95 2 0.04 45 8 49 <1 26 1 1
RMD-01 50.95 52.95 2 0.052 56 12 96 <1 22 <1 <1
RMD-01 52.95 54.95 2 0.046 61 9 64 <1 8 1 1
RMD-01 54.95 56.95 2 0.021 35 5 38 <1 1 <1 <1
RMD-01 56.95 58.95 2 0.07 34 4 30 <1 8 1 2
RMD-01 58.95 60.95 2 0.155 12 7 39 <1 5 1 16
RMD-01 60.95 62.95 2 0.032 6 5 15 <1 6 3 <1
RMD-01 62.95 64.95 2 0.025 28 8 23 <1 4 <1 2
RMD-01 64.95 66.95 2 0.053 30 7 23 <1 4 <1 3
RMD-01 66.95 68.95 2 0.009 7 4 20 <1 4 <1 1
For personal use only use personal For RMD-01 68.95 70.95 2 0.011 15 8 33 <1 4 <1 1
RMD-01 70.95 72.95 2 0.019 17 5 30 <1 5 1 1
RMD-01 72.95 74.95 2 0.01 4 4 23 <1 1 3 <1
RMD-01 74.95 76.95 2 0.017 5 <4 22 <1 2 <1 <1
98 Page 184 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-01 76.95 78.95 2 0.014 5 <4 21 <1 3 <1 1
RMD-01 78.95 80.95 2 0.007 3 6 18 <1 <1 1 <1
RMD-01 80.95 82.95 2 0.01 8 8 23 <1 2 3 <1
RMD-01 82.95 84.95 2 0.006 8 8 47 <1 <1 1 <1
RMD-01 84.95 86.95 2 0.017 27 11 64 <1 6 2 1
RMD-01 86.95 88.95 2 0.007 13 7 22 <1 2 <1 1
RMD-01 88.95 90.95 2 0.011 7 8 37 <1 1 <1 3
RMD-01 90.95 92.95 2 0.017 8 6 21 <1 4 3 2
RMD-01 92.95 94.95 2 0.019 12 4 23 <1 <1 <1 1
RMD-01 94.95 96.95 2 0.016 7 <4 21 <1 1 <1 2
RMD-01 96.95 98.95 2 0.018 6 <4 18 <1 3 <1 4
RMD-01 98.95 100.95 2 0.019 5 <4 22 <1 3 2 5
RMD-01 100.95 102.95 2 0.018 8 <4 11 <1 3 1 13
RMD-01 102.95 104.95 2 0.013 8 <4 16 <1 2 <1 2
RMD-01 104.95 106.95 2 0.011 4 5 18 <1 <1 2 1
RMD-01 106.95 108.95 2 0.013 12 7 39 <1 <1 <1 2
RMD-01 108.95 110.95 2 0.011 5 5 30 <1 2 <1 7
RMD-01 110.95 112.95 2 0.011 8 9 42 <1 <1 1 3
RMD-01 112.95 114.95 2 0.011 10 10 42 <1 1 2 2
RMD-01 114.95 116.95 2 0.008 14 5 26 <1 1 1 6
RMD-01 116.95 118.95 2 0.01 13 19 75 <1 2 1 4
RMD-01 118.95 120.95 2 0.012 8 8 34 <1 <1 <1 10
RMD-01 120.95 122.95 2 0.019 20 4 29 <1 1 <1 16
RMD-01 122.95 124.95 2 0.098 324 5 25 <1 1 1 50
RMD-01 124.95 126.95 2 0.03 12 4 23 <1 1 3 5
RMD-01 126.95 128.95 2 0.023 30 6 21 <1 1 <1 19
RMD-01 128.95 130.95 2 0.022 83 6 23 <1 2 <1 40
RMD-01 130.95 132.95 2 0.032 172 167 514 1 5 2 53
RMD-01 132.95 134.95 2 0.015 68 55 199 <1 8 <1 4
RMD-01 134.95 136.95 2 0.013 21 15 65 <1 3 <1 2
RMD-01 136.95 138.95 2 0.02 44 6 31 <1 1 1 6
RMD-01 138.95 140.95 2 0.022 155 11 71 <1 1 1 4
RMD-01 140.95 142.95 2 0.016 65 5 21 <1 2 1 3
RMD-01 142.95 144.95 2 0.088 402 727 1300 2 <1 4 3
RMD-01 144.95 146.95 2 0.029 144 20 145 <1 2 2 7
RMD-01 146.95 148.95 2 0.041 137 10 36 <1 2 1 2
RMD-01 148.95 150.95 2 0.037 115 8 48 <1 5 4 4
RMD-01 150.95 152.95 2 0.027 104 4 32 <1 2 4 3
For personal use only use personal For RMD-01 152.95 154.95 2 0.018 130 5 22 <1 4 3 12
RMD-01 154.95 156.95 2 0.018 137 5 31 <1 3 2 3
RMD-01 156.95 158.95 2 0.032 76 5 38 <1 4 <1 4
RMD-01 158.95 160.95 2 0.019 222 4 20 <1 4 2 1
99 Page 185 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-01 160.95 162.95 2 0.012 53 4 15 <1 <1 <1 13
RMD-01 162.95 164.95 2 0.022 119 <4 15 <1 1 3 5
RMD-01 164.95 166.95 2 0.072 74 4 17 <1 4 <1 69
RMD-01 166.95 168.95 2 0.018 13 11 37 <1 5 <1 35
RMD-01 168.95 170.95 2 0.008 11 8 31 <1 2 2 4
RMD-01 170.95 172.95 2 0.019 106 6 23 <1 3 1 16
RMD-01 172.95 174.95 2 0.019 109 <4 18 <1 1 2 25
RMD-01 174.95 176.95 2 0.015 113 6 24 <1 <1 1 8
RMD-01 176.95 178.95 2 0.012 55 4 16 <1 1 1 5
RMD-01 178.95 180.95 2 0.011 42 5 15 <1 <1 1 2
RMD-01 180.95 182.95 2 0.011 26 4 16 <1 <1 <1 3
RMD-01 182.95 184.95 2 0.008 17 5 13 <1 <1 <1 5
RMD-01 184.95 186.95 2 0.01 24 5 19 <1 <1 1 2
RMD-01 186.95 188.95 2 0.014 33 8 30 <1 <1 <1 4
RMD-01 188.95 190.95 2 0.015 101 4 16 <1 <1 <1 3
RMD-01 190.95 192.95 2 0.009 65 <4 16 <1 1 2 2
RMD-01 192.95 194.95 2 0.01 86 7 27 <1 1 <1 2
RMD-01 194.95 196.95 2 0.015 36 16 46 <1 3 <1 3
RMD-01 196.95 198.96 2.01 0.013 90 5 19 <1 <1 <1 4
RMD-01 198.96 200.05 1.09 0.011 70 4 17 <1 1 <1 5
RMD-01 200.05 202.95 2.9 0.012 24 6 17 <1 1 2 7
RMD-01 202.95 204.95 2 0.011 24 4 16 <1 1 1 3
RMD-01 204.95 206.95 2 0.018 25 <4 19 <1 <1 1 2
RMD-01 206.95 208.95 2 0.012 17 8 32 <1 <1 1 8
RMD-01 208.95 210.95 2 0.018 76 5 17 <1 2 3 3
RMD-01 210.95 212.95 2 0.017 70 10 36 <1 1 <1 6
RMD-01 212.95 214.95 2 0.02 55 8 24 <1 2 4 6
RMD-01 214.95 216.95 2 0.032 104 77 159 3 18 2 8
RMD-01 216.95 218.95 2 0.017 155 41 74 <1 9 2 2
RMD-01 218.95 220.95 2 0.02 194 6 29 <1 <1 <1 3
RMD-01 220.95 222.95 2 0.013 100 5 20 <1 1 1 2
RMD-01 222.95 224.95 2 0.016 157 7 29 <1 2 <1 1
RMD-01 224.95 226.95 2 0.022 191 5 29 <1 1 2 2
RMD-01 226.95 228.95 2 0.014 65 4 23 <1 1 3 3
RMD-01 228.95 230.95 2 0.015 98 10 31 <1 1 3 4
RMD-01 230.95 232.95 2 0.013 152 7 45 <1 2 1 3
RMD-01 232.95 234.95 2 0.018 147 8 29 <1 <1 4 5
RMD-01 234.95 236.95 2 0.013 155 19 38 <1 <1 1 1
For personal use only use personal For RMD-01 236.95 238.95 2 0.023 190 6 21 <1 <1 <1 3
RMD-01 238.95 240.95 2 0.017 94 6 31 <1 <1 2 4
RMD-01 240.95 242.95 2 0.02 130 16 82 <1 7 1 6
RMD-01 242.95 244.95 2 0.018 86 12 56 <1 8 <1 11
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Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-01 244.95 246.95 2 0.027 109 5 31 <1 <1 <1 12
RMD-01 246.95 248.95 2 0.016 104 7 50 <1 4 <1 20
RMD-01 248.95 250.95 2 0.021 37 112 690 <1 11 <1 14
RMD-01 250.95 252.95 2 0.025 121 67 327 <1 15 1 11
RMD-01 252.95 254.95 2 0.017 173 11 47 <1 5 <1 9
RMD-01 254.95 256.95 2 0.026 287 8 63 <1 3 <1 7
RMD-01 256.95 258.95 2 0.018 132 4 38 <1 2 <1 7
RMD-01 258.95 260.95 2 0.015 125 <4 36 <1 2 <1 3
RMD-01 260.95 262.95 2 0.033 140 8 41 <1 4 1 6
RMD-01 262.95 264.95 2 0.024 130 6 34 <1 2 <1 2
RMD-01 264.95 266.95 2 0.021 135 7 39 <1 27 <1 2
RMD-01 266.95 268.95 2 0.023 104 9 37 <1 3 <1 3
RMD-01 268.95 270.95 2 0.052 338 9 49 <1 82 1 5
RMD-01 270.95 272.95 2 0.015 79 <4 30 <1 4 <1 11
RMD-01 272.95 274.95 2 0.021 126 58 184 <1 10 <1 3
RMD-01 274.95 276.95 2 0.021 115 4 33 <1 2 <1 16
RMD-01 276.95 278.95 2 0.022 148 4 20 <1 2 <1 13
RMD-01 278.95 280.95 2 0.031 71 13 44 <1 2 <1 3
RMD-01 280.95 282.95 2 0.013 54 73 224 <1 12 <1 2
RMD-01 282.95 284.95 2 0.015 39 12 60 <1 4 <1 10
RMD-01 284.95 286.95 2 0.031 108 <4 31 <1 3 <1 5
RMD-01 286.95 288.95 2 0.025 59 9 63 <1 4 <1 5
RMD-01 288.95 290.95 2 0.036 89 302 1580 1 38 <1 9
RMD-01 290.95 292.95 2 0.026 137 195 717 1 20 <1 7
RMD-01 292.95 294.95 2 0.025 98 97 416 <1 20 3 11
RMD-01 294.95 296.95 2 0.016 165 <4 34 <1 3 <1 14
RMD-01 296.95 298.95 2 0.022 110 5 36 <1 4 <1 16
RMD-01 298.95 300.95 2 0.023 63 22 249 <1 13 <1 9
RMD-01 300.95 302.95 2 0.015 86 8 53 <1 6 <1 10
RMD-01 302.95 304.95 2 0.02 122 <4 46 <1 2 <1 20
RMD-01 304.95 306.95 2 0.018 104 6 59 <1 2 1 14
RMD-01 306.95 308.95 2 0.022 114 <4 184 <1 2 <1 25
RMD-01 308.95 310.95 2 0.019 75 4 42 <1 2 <1 14
RMD-01 310.95 312.95 2 0.018 40 6 248 <1 5 <1 12
RMD-01 312.95 314.95 2 0.023 60 85 333 1 13 2 12
RMD-01 314.95 316.95 2 0.019 98 7 65 <1 2 <1 9
RMD-01 316.95 318.95 2 0.02 159 6 32 <1 2 <1 5
RMD-01 318.95 320.95 2 0.024 191 24 1170 <1 10 <1 17
For personal use only use personal For RMD-01 320.95 322.95 2 0.018 176 8 116 <1 5 <1 10
RMD-01 322.95 324.95 2 0.014 130 8 47 <1 1 <1 7
RMD-01 324.95 326.95 2 0.017 220 18 96 <1 4 <1 8
RMD-01 326.95 328.95 2 0.015 296 18 55 <1 4 <1 19
101 Page 187 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-01 328.95 330.95 2 0.023 154 5 30 <1 2 <1 10
RMD-01 330.95 333 2.05 0.005 131 <4 24 <1 2 <1 21
RMD-02 0 1.3 1.3 No Sample
RMD-02 1.3 3.3 2 0.03 47 8 19 <1 17 <1 21
RMD-02 3.3 5.3 2 0.01 64 12 26 <1 13 <1 46
RMD-02 5.3 7.3 2 0.02 35 8 13 <1 8 <1 25
RMD-02 7.3 9.3 2 0.02 33 6 10 <1 7 <1 22
RMD-02 9.3 11.3 2 0.02 55 7 8 <1 9 1 7
RMD-02 11.3 13.3 2 0.02 51 6 9 <1 7 <1 5
RMD-02 13.3 15.3 2 0.02 100 8 8 <1 14 <1 17
RMD-02 15.3 17.3 2 0.02 95 7 9 <1 12 <1 11
RMD-02 17.3 19.3 2 0.03 86 5 9 <1 7 <1 12
RMD-02 19.3 21.3 2 0.02 141 6 9 <1 9 1 11
RMD-02 21.3 23.3 2 0.02 211 11 9 <1 19 <1 13
RMD-02 23.3 25.3 2 0.04 180 6 12 <1 19 3 3
RMD-02 25.3 27.3 2 0.04 73 <4 7 <1 5 <1 4
RMD-02 27.3 29.3 2 0.03 134 5 8 <1 6 1 133
RMD-02 29.3 31.3 2 0.02 46 6 8 <1 9 <1 2
RMD-02 31.3 33.3 2 0.03 105 5 10 <1 3 1 13
RMD-02 33.3 35.3 2 0.03 124 6 8 <1 4 <1 27
RMD-02 35.3 37.3 2 0.02 116 <4 8 <1 2 <1 168
RMD-02 37.3 39.3 2 0.03 109 5 6 <1 1 <1 170
RMD-02 39.3 41.3 2 0.02 107 8 6 <1 2 1 73
RMD-02 41.3 43.3 2 0.02 71 6 6 <1 3 <1 48
RMD-02 43.3 45.3 2 0.02 94 9 7 <1 3 2 53
RMD-02 45.3 47.3 2 0.01 25 4 6 <1 1 <1 123
RMD-02 47.3 49.3 2 0.01 50 7 6 <1 3 2 20
RMD-02 49.3 51.45 2.15 0.01 78 <4 4 <1 1 1 10
RMD-02 51.45 52.05 0.6 0.01 505 5 4 <1 1 <1 25
RMD-02 52.05 54.05 2 0.02 71 5 4 <1 4 <1 14
RMD-02 54.05 56.05 2 0.02 41 6 5 <1 2 1 20
RMD-02 56.05 58.05 2 0.03 32 7 4 <1 4 <1 12
RMD-02 58.05 60.05 2 0.02 24 16 5 <1 3 <1 57
RMD-02 60.05 62.05 2 0.02 14 6 4 <1 5 <1 30
RMD-02 62.05 64.05 2 0.02 41 6 8 <1 7 2 9
RMD-02 64.05 66.05 2 0.01 12 6 8 <1 5 <1 47
RMD-02 66.05 68.05 2 0.01 14 <4 5 <1 2 <1 33
RMD-02 68.05 70.05 2 0.02 22 7 4 <1 4 <1 25
For personal use only use personal For RMD-02 70.05 72.05 2 0.02 19 6 8 <1 4 <1 13
RMD-02 72.05 74.05 2 0.01 12 9 5 <1 3 2 23
RMD-02 74.05 76.05 2 0.01 6 7 5 <1 3 <1 19
RMD-02 76.05 78.05 2 0.01 11 5 7 <1 3 <1 25
102 Page 188 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-02 78.05 80.05 2 0.02 11 9 6 <1 4 <1 28
RMD-02 80.05 82.05 2 0.01 22 7 6 <1 5 3 3
RMD-02 82.05 84.05 2 0.01 21 5 6 <1 4 <1 4
RMD-02 84.05 86.05 2 0.01 25 6 8 <1 7 <1 2
RMD-02 86.05 88.05 2 0.01 13 5 6 <1 3 <1 2
RMD-02 88.05 90.05 2 0.01 18 9 6 <1 4 <1 2
RMD-02 90.05 92.05 2 0.01 11 5 5 <1 2 <1 3
RMD-02 92.05 94.05 2 0.01 17 10 6 <1 4 1 <1
RMD-02 94.05 96.05 2 0.01 28 6 6 <1 6 <1 2
RMD-02 96.05 98.05 2 0.02 30 6 9 <1 6 <1 3
RMD-02 98.05 100.65 2.6 0.01 14 7 8 <1 14 <1 2
RMD-02 100.65 101.4 0.75 0.05 38 14 19 <1 26 <1 2
RMD-02 101.4 103.4 2 0.01 11 7 8 <1 6 <1 1
RMD-02 103.4 105.4 2 0.01 13 7 7 <1 6 2 <1
RMD-02 105.4 107.4 2 0.01 16 8 6 <1 3 <1 1
RMD-02 107.4 109.7 2.3 0.02 17 6 6 <1 2 <1 16
RMD-02 109.7 111.7 2 0.03 14 8 7 <1 2 2 629
RMD-02 111.7 113.7 2 0.02 9 9 6 <1 3 <1 179
RMD-02 113.7 115.7 2 0.03 13 7 6 <1 3 2 58
RMD-02 115.7 117.7 2 0.05 17 9 6 <1 2 <1 18
RMD-02 117.7 119.7 2 0.03 14 9 7 <1 3 1 12
RMD-02 119.7 121.7 2 0.06 17 13 7 <1 6 <1 11
RMD-02 121.7 123.7 2 0.02 24 10 7 <1 4 <1 7
RMD-02 123.7 125.7 2 0.01 18 8 8 <1 4 <1 10
RMD-02 125.7 127.7 2 0.02 27 8 8 <1 8 <1 8
RMD-02 127.7 129.7 2 0.02 18 8 7 <1 5 <1 12
RMD-02 129.7 131.7 2 0.02 40 11 7 <1 10 <1 6
RMD-02 131.7 133.35 1.65 0.03 70 8 7 <1 12 <1 23
RMD-02 133.35 135.35 2 0.01 46 9 10 <1 10 2 19
RMD-02 135.35 137.35 2 0.02 36 7 7 <1 5 2 4
RMD-02 137.35 139.35 2 0.012 15 <4 12 <1 4 <1 26
RMD-02 139.35 141.35 2 0.017 13 <4 7 <1 2 1 12
RMD-02 141.35 143.35 2 0.016 25 5 7 <1 5 1 10
RMD-02 143.35 145.35 2 0.007 14 <4 7 <1 3 <1 16
RMD-02 145.35 147.35 2 0.012 19 4 7 <1 7 1 9
RMD-02 147.35 149.35 2 0.018 50 4 18 <1 9 <1 3
RMD-02 149.35 151.35 2 0.009 49 4 17 <1 6 <1 11
RMD-02 151.35 153.35 2 0.009 15 <4 9 <1 3 1 5
For personal use only use personal For RMD-02 153.35 154.5 1.15 0.005 45 <4 13 <1 4 <1 3
RMD-02 154.5 156.5 2 0.015 59 26 36 <1 7 2 6
RMD-02 156.5 158.5 2 0.012 36 11 13 <1 2 <1 6
RMD-02 158.5 160.5 2 0.016 51 <4 34 <1 1 1 2
103 Page 189 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-02 160.5 162.5 2 0.014 91 <4 20 <1 2 <1 1
RMD-02 162.5 164.5 2 0.012 141 <4 19 <1 1 <1 <1
RMD-02 164.5 166.5 2 0.019 133 <4 19 <1 2 <1 2
RMD-02 166.5 168.5 2 0.019 134 <4 13 <1 3 3 3
RMD-02 168.5 170.5 2 0.012 56 <4 14 <1 3 <1 4
RMD-02 170.5 172.5 2 0.005 22 <4 6 <1 4 <1 5
RMD-02 172.5 174.5 2 0.013 34 <4 7 <1 3 <1 1
RMD-02 174.5 176.5 2 0.017 15 <4 6 <1 <1 <1 2
RMD-02 176.5 178.5 2 0.016 12 <4 7 <1 4 <1 7
RMD-02 178.5 180.5 2 0.019 14 <4 6 <1 4 3 2
RMD-02 180.5 182.5 2 0.011 14 <4 13 <1 1 <1 22
RMD-02 182.5 184.5 2 0.017 38 5 13 <1 7 <1 7
RMD-02 184.5 186.5 2 0.022 29 9 15 <1 4 2 9
RMD-02 186.5 188.5 2 0.01 17 4 12 <1 7 <1 18
RMD-02 188.5 190.5 2 0.008 14 <4 6 <1 2 <1 7
RMD-02 190.5 192.5 2 0.009 19 <4 17 <1 2 2 31
RMD-02 192.5 194.5 2 0.009 13 <4 20 <1 2 1 16
RMD-02 194.5 196.5 2 0.01 12 4 4 <1 4 3 21
RMD-02 196.5 198.5 2 0.01 22 8 5 <1 3 1 22
RMD-02 198.5 200.5 2 0.012 21 4 9 <1 3 <1 38
RMD-02 200.5 202.5 2 0.011 32 <4 29 <1 2 1 24
RMD-02 202.5 204.5 2 0.009 12 <4 24 <1 1 4 28
RMD-02 204.5 206.5 2 0.009 27 <4 13 <1 2 <1 6
RMD-02 206.5 208.5 2 0.011 16 <4 11 <1 2 2 16
RMD-02 208.5 210.5 2 0.008 10 <4 13 <1 2 <1 19
RMD-02 210.5 212.5 2 0.006 13 <4 12 <1 1 2 18
RMD-02 212.5 214.5 2 0.006 19 <4 13 <1 2 2 17
RMD-02 214.5 216.5 2 0.005 10 <4 10 <1 1 1 10
RMD-02 216.5 218.5 2 0.007 21 <4 11 <1 2 <1 7
RMD-02 218.5 220.5 2 0.008 15 <4 22 <1 3 2 7
RMD-02 220.5 222.5 2 0.018 18 <4 11 <1 2 2 3
RMD-02 222.5 224.5 2 0.007 8 <4 12 <1 1 1 4
RMD-02 224.5 226.5 2 0.006 20 <4 19 <1 1 <1 10
RMD-02 226.5 228.5 2 0.008 23 <4 12 <1 1 4 5
RMD-02 228.5 230.5 2 0.009 14 <4 13 <1 1 <1 5
RMD-02 230.5 232.5 2 0.01 11 <4 10 <1 <1 <1 5
RMD-02 232.5 234.5 2 0.008 14 <4 7 <1 2 <1 4
RMD-02 234.5 236.5 2 0.006 11 <4 14 <1 2 2 10
For personal use only use personal For RMD-02 236.5 238.5 2 0.011 21 <4 32 <1 5 1 3
RMD-02 238.5 240.5 2 0.012 17 <4 9 <1 1 <1 4
RMD-02 240.5 242.5 2 0.015 119 <4 9 <1 1 <1 15
RMD-02 242.5 244.5 2 0.014 47 5 26 <1 4 <1 34
104 Page 190 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-02 244.5 246.5 2 0.012 9 <4 8 <1 2 3 11
RMD-02 246.5 248.5 2 0.01 17 <4 15 <1 5 <1 4
RMD-02 248.5 250.5 2 0.007 10 28 47 <1 4 <1 8
RMD-02 250.5 252.5 2 0.015 263 5 40 <1 4 <1 1
RMD-02 252.5 254.5 2 0.017 10 <4 12 <1 4 <1 2
RMD-02 254.5 256.5 2 0.007 8 <4 5 <1 1 1 3
RMD-02 256.5 258.5 2 0.007 5 <4 6 <1 1 <1 1
RMD-02 258.5 260.5 2 0.009 7 <4 10 <1 1 <1 3
RMD-02 260.5 262.5 2 0.009 7 <4 9 <1 1 2 4
RMD-02 262.5 264.5 2 0.006 6 <4 7 <1 <1 <1 4
RMD-02 264.5 266.5 2 0.006 16 <4 10 <1 2 <1 7
RMD-02 266.5 268.5 2 0.005 15 <4 8 <1 2 1 4
RMD-02 268.5 270.5 2 <0.005 10 <4 8 <1 <1 <1 6
RMD-02 270.5 272.5 2 0.01 157 <4 24 <1 2 <1 6
RMD-02 272.5 274.5 2 0.005 8 <4 14 <1 3 <1 2
RMD-02 274.5 276.5 2 <0.005 8 <4 14 <1 2 <1 3
RMD-02 276.5 278.5 2 0.005 12 11 37 <1 10 1 17
RMD-02 278.5 280.5 2 0.006 6 <4 7 <1 2 1 7
RMD-02 280.5 282.5 2 <0.005 10 <4 6 <1 <1 <1 8
RMD-02 282.5 284.5 2 0.007 7 4 11 <1 1 3 6
RMD-02 284.5 286.5 2 0.009 14 <4 11 <1 1 1 6
RMD-02 286.5 288.5 2 0.009 4 <4 45 <1 1 <1 3
RMD-02 288.5 290.5 2 <0.005 4 <4 13 <1 3 2 9
RMD-02 290.5 292.5 2 <0.005 3 <4 61 <1 3 <1 1
RMD-02 292.5 294.5 2 <0.005 4 <4 16 <1 <1 1 10
RMD-02 294.5 296.5 2 0.01 10 54 84 <1 5 <1 1
RMD-02 296.5 298.5 2 0.006 57 <4 13 <1 2 1 <1
RMD-02 298.5 300.15 1.65 0.011 196 <4 15 <1 2 2 1
RMD-03 0 1.35 1.35 No Sample
RMD-03 1.35 3.35 2 0.014 44 8 18 <1 10 <1 2
RMD-03 3.35 5.35 2 0.022 48 9 28 <1 7 <1 2
RMD-03 5.35 7.35 2 0.007 47 5 16 <1 7 <1 1
RMD-03 7.35 9.35 2 0.007 43 5 25 <1 8 <1 <1
RMD-03 9.35 11.35 2 0.01 35 7 26 <1 8 <1 <1
RMD-03 11.35 13.35 2 0.01 29 8 31 <1 5 <1 <1
RMD-03 13.35 15.35 2 0.008 72 7 24 <1 5 <1 <1
RMD-03 15.35 17.35 2 0.01 62 8 33 <1 4 <1 <1
RMD-03 17.35 19.35 2 0.01 72 8 44 <1 6 <1 <1
For personal use only use personal For RMD-03 19.35 21.35 2 0.006 45 4 34 <1 3 <1 <1
RMD-03 21.35 23.35 2 0.009 38 7 9 <1 4 <1 <1
RMD-03 23.35 25.35 2 0.005 16 8 14 <1 4 <1 1
RMD-03 25.35 27.35 2 0.007 34 10 19 <1 5 <1 4
105 Page 191 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-03 27.35 29.35 2 0.016 38 12 8 <1 4 1 <1
RMD-03 29.35 31.35 2 0.024 67 9 16 <1 5 <1 1
RMD-03 31.35 33.35 2 0.024 90 13 10 <1 5 <1 <1
RMD-03 33.35 35.35 2 0.015 42 457 694 <1 3 <1 <1
RMD-03 35.35 43.85 8.5 No Sample
RMD-03 43.85 45.85 2 0.016 133 7 13 <1 4 <1 1
RMD-03 45.85 53.1 7.25 No Sample
RMD-03 53.1 55.1 2 0.021 15 7 7 <1 6 <1 5
RMD-03 55.1 57.1 2 0.019 12 4 8 <1 5 <1 2
RMD-03 57.1 63.2 6.1 No Sample
RMD-03 63.2 65.2 2 0.021 13 <4 9 <1 4 <1 <1
RMD-03 65.2 75.55 10.35 No Sample
RMD-03 75.55 77.55 2 0.008 7 7 14 <1 4 <1 2
RMD-03 77.55 89.1 11.55 No Sample
RMD-03 89.1 91.1 2 0.019 15 7 12 <1 3 <1 1
RMD-03 91.1 101.1 10 No Sample
RMD-03 101.1 103.1 2 0.013 7 5 22 <1 4 <1 2
RMD-03 103.1 115.9 12.8 No Sample
RMD-03 115.9 117.9 2 0.009 7 8 9 <1 4 <1 <1
RMD-03 117.9 140.1 22.2 No Sample
RMD-03 140.1 142.1 2 0.018 91 14 14 <1 8 <1 8
RMD-03 142.1 144.1 2 0.009 9 8 18 <1 8 <1 4
RMD-03 144.1 147 2.9 No Sample
RMD-03 147 149 2 0.012 13 5 20 <1 2 <1 7
RMD-03 149 153.6 4.6 No Sample
RMD-03 153.6 155.6 2 0.014 6 <4 6 <1 1 <1 7
RMD-03 155.6 174.6 19 No Sample
RMD-03 174.6 176.6 2 0.013 10 <4 14 <1 2 <1 <1
RMD-03 176.6 179.1 2.5 No Sample
RMD-03 179.1 181.1 2 0.006 8 6 7 <1 3 <1 4
RMD-03 181.1 185.1 4 No Sample
RMD-03 185.1 187.1 2 0.008 10 <4 9 <1 1 <1 <1
RMD-03 187.1 193 5.9 No Sample
RMD-03 193 195 2 0.008 10 <4 32 <1 1 <1 6
RMD-03 195 196.55 1.55 No Sample
RMD-03 196.55 198.55 2 0.005 8 <4 15 <1 2 <1 9
RMD-03 198.55 205.75 7.2 No Sample
RMD-03 205.75 207.75 2 0.006 8 <4 8 <1 3 <1 10
For personal use only use personal For RMD-03 207.75 209.75 2 0.006 12 <4 6 <1 1 <1 5
RMD-03 209.75 211.75 2 0.006 10 <4 7 <1 <1 <1 5
RMD-03 211.75 213.75 2 0.017 10 5 12 <1 2 <1 1
RMD-03 213.75 215.75 2 0.007 12 5 9 <1 2 <1 5
106 Page 192 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-03 215.75 225.6 9.85 No Sample
RMD-03 225.6 227.6 2 0.007 10 4 8 <1 2 <1 2
RMD-03 227.6 230.1 2.5 No Sample
RMD-03 230.1 232.1 2 0.005 6 <4 7 <1 1 <1 2
RMD-03 232.1 234.1 2 0.013 16 <4 7 <1 2 <1 5
RMD-03 234.1 236.1 2 No Sample
RMD-03 236.1 238.1 2 0.006 6 <4 14 <1 1 <1 8
RMD-03 238.1 240.6 2.5 No Sample
RMD-03 240.6 242.6 2 0.012 8 <4 24 <1 2 <1 3
RMD-03 242.6 244.6 2 0.008 5 <4 12 <1 2 <1 2
RMD-03 244.6 246.6 2 0.007 5 4 138 <1 1 <1 2
RMD-03 246.6 248.6 2 0.007 5 7 921 <1 2 <1 4
RMD-03 248.6 250.6 2 0.006 5 <4 22 <1 1 1 4
RMD-03 250.6 252.6 2 0.008 7 <4 66 <1 1 <1 13
RMD-03 252.6 254.6 2 0.008 6 <4 8 <1 1 <1 18
RMD-03 254.6 256.6 2 <0.005 8 <4 8 <1 2 <1 22
RMD-03 256.6 258.6 2 0.015 23 4 98 <1 4 <1 38
RMD-03 258.6 260.6 2 0.007 18 8 24 <1 4 <1 73
RMD-04 0 1.3 1.3 No Sample
RMD-04 1.3 3.3 2 0.01 55 11 23 <1 7 <1 6
RMD-04 3.3 5.3 2 0.016 45 9 20 <1 7 <1 4
RMD-04 5.3 7.3 2 0.015 44 8 23 <1 7 <1 1
RMD-04 7.3 8.8 1.5 No Sample
RMD-04 8.8 10.8 2 0.018 39 5 17 <1 12 <1 <1
RMD-04 10.8 19.3 8.5 No Sample
RMD-04 19.3 21.3 2 0.007 39 6 12 <1 12 <1 1
RMD-04 21.3 26.55 5.25 No Sample
RMD-04 26.55 28.55 2 0.009 20 <4 13 <1 7 <1 <1
RMD-04 28.55 31.55 3 No Sample
RMD-04 31.55 33.55 2 0.018 357 7 20 <1 6 <1 2
RMD-04 33.55 35.55 2 0.015 915 5 13 <1 4 <1 2
RMD-04 35.55 44 8.45 No Sample
RMD-04 44 46 2 0.012 176 23 52 <1 3 <1 <1
RMD-04 46 60.5 14.5 No Sample
RMD-04 60.5 62.5 2 0.029 126 7 32 <1 2 <1 1
RMD-04 62.5 76.3 13.8 No Sample
RMD-04 76.3 78.3 2 0.025 21 50 359 <1 3 <1 1
RMD-04 78.3 80.3 2 0.025 16 4 40 <1 5 2 <1
For personal use only use personal For RMD-04 80.3 82.3 2 0.037 38 5 19 <1 6 <1 <1
RMD-04 82.3 84.3 2 0.056 96 4 22 <1 5 2 <1
RMD-04 84.3 86.3 2 0.023 14 <4 18 <1 3 <1 <1
RMD-04 86.3 88.3 2 0.028 9 <4 10 <1 4 <1 <1
107 Page 193 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-04 88.3 90.25 1.95 No Sample
RMD-04 90.25 92.25 2 0.023 9 5 11 <1 3 <1 <1
RMD-04 92.25 94.7 2.45 No Sample
RMD-04 94.7 96.7 2 0.044 8 6 9 <1 3 <1 4
RMD-04 96.7 97.9 1.2 No Sample
RMD-04 97.9 99.9 2 0.056 27 4 10 <1 3 <1 1
RMD-04 99.9 104 4.1 No Sample
RMD-04 104 106 2 0.042 24 5 12 <1 <1 <1 <1
RMD-04 106 108 2 0.082 14 <4 9 <1 2 <1 7
RMD-04 108 110 2 0.139 10 <4 8 <1 4 2 24
RMD-04 110 112 2 0.057 7 <4 8 <1 6 <1 10
RMD-04 112 114 2 0.016 13 <4 7 <1 2 <1 14
RMD-04 114 116 2 0.047 20 <4 6 <1 2 <1 4
RMD-04 116 121.5 5.5 No Sample
RMD-04 121.5 123.5 2 0.081 8 <4 9 <1 29 <1 8
RMD-04 123.5 124.4 0.9 No Sample
RMD-04 124.4 126.4 2 0.033 16 <4 12 <1 29 2 1
RMD-04 126.4 128.6 2.2 No Sample
RMD-04 128.6 130.6 2 0.044 6 <4 16 <1 4 <1 27
RMD-04 130.6 134 3.4 No Sample
RMD-04 134 136 2 0.046 11 5 50 <1 4 3 16
RMD-04 136 138.5 2.5 No Sample
RMD-04 138.5 140.5 2 0.235 268 4 17 <1 22 <1 17
RMD-04 140.5 143 2.5 No Sample
RMD-04 143 145 2 0.049 17 62 465 1 8 1 3
RMD-04 145 147 2 0.072 222 46 838 <1 7 1 22
RMD-04 147 149 2 0.037 33 <4 21 <1 5 <1 3
RMD-04 149 151.8 2.8 No Sample
RMD-04 151.8 153.8 2 0.022 10 <4 15 <1 6 <1 <1
RMD-04 153.8 157.4 3.6 No Sample
RMD-04 157.4 159.4 2 0.129 8 <4 12 <1 8 1 4
RMD-04 159.4 161.4 2 0.029 9 <4 11 <1 11 <1 5
RMD-04 161.4 163.4 2 0.015 8 <4 15 <1 6 <1 6
RMD-04 163.4 165.4 2 0.015 13 <4 13 <1 6 1 40
RMD-04 165.4 167.4 2 0.01 37 96 1460 <1 5 5 8
RMD-04 167.4 168.5 1.1 No Sample
RMD-04 168.5 170.5 2 0.115 549 9 16 <1 5 <1 2
RMD-04 170.5 172.5 2 0.025 95 <4 17 <1 4 <1 7
For personal use only use personal For RMD-04 172.5 174.5 2 No Sample
RMD-04 174.5 176.5 2 0.012 15 <4 17 <1 4 <1 10
RMD-04 176.5 178.5 2 0.015 20 <4 30 <1 5 2 20
RMD-04 178.5 180.5 2 0.033 185 5 32 <1 6 2 15
108 Page 194 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-04 180.5 182.5 2 0.092 396 <4 23 <1 1 2 7
RMD-04 182.5 185 2.5 No Sample
RMD-04 185 187 2 0.024 93 <4 21 <1 3 1 9
RMD-04 187 189 2 0.029 39 <4 17 <1 7 1 89
RMD-04 189 191 2 0.082 253 <4 27 <1 1 <1 20
RMD-04 191 193 2 0.066 218 5 29 <1 <1 2 5
RMD-04 193 195 2 0.07 222 4 19 <1 <1 <1 35
RMD-04 195 197 2 0.14 313 5 16 <1 2 <1 70
RMD-04 197 199 2 0.05 203 6 30 <1 2 <1 11
RMD-04 199 201 2 0.06 213 7 29 <1 1 <1 14
RMD-04 201 203 2 0.04 188 6 25 <1 3 <1 9
RMD-04 203 205 2 0.03 98 6 19 <1 4 <1 7
RMD-04 205 207 2 0.02 21 4 22 <1 3 <1 9
RMD-04 207 216.4 9.4 No Sample
RMD-04 216.4 218.5 2.1 0.02 24 6 17 <1 2 <1 8
RMD-04 218.5 224 5.5 No Sample
RMD-04 224 226 2 0.03 34 4 23 <1 2 <1 4
RMD-04 226 228 2 0.04 180 <4 17 <1 <1 1 2
RMD-04 228 230 2 0.02 141 <4 26 <1 <1 <1 7
RMD-04 230 232 2 0.02 106 <4 25 <1 1 3 5
RMD-04 232 233.4 1.4 No Sample
RMD-04 233.4 235.4 2 0.02 28 <4 29 <1 2 <1 9
RMD-04 235.4 237.4 2 0.01 10 4 33 <1 2 <1 1
RMD-04 237.4 240.2 2.8 0.03 80 5 31 <1 2 <1 8
RMD-04 240.2 241.4 1.2 No Sample
RMD-04 241.4 243.4 2 0.03 45 9 48 <1 4 <1 19
RMD-04 243.4 246.4 3 0.03 82 5 30 <1 3 <1 10
RMD-04 246.4 247.7 1.3 No Sample
RMD-04 247.7 249.7 2 0.05 173 4 24 <1 2 <1 12
RMD-04 249.7 251.7 2 0.05 84 5 25 <1 1 <1 12
RMD-04 251.7 253.7 2 0.05 64 9 36 <1 6 <1 11
RMD-04 253.7 255.35 1.65 No Sample
RMD-04 255.35 257.75 2.4 0.06 234 445 1540 9 15 17 8
RMD-04 257.75 258.5 0.75 No Sample
RMD-04 258.5 260.5 2 0.05 38 27 40 <1 4 <1 6
RMD-04 260.5 263.3 2.8 No Sample
RMD-04 263.3 265.5 2.2 0.03 97 7 37 <1 11 <1 3
RMD-04 265.5 269.9 4.4 No Sample
For personal use only use personal For RMD-04 269.9 271.9 2 0.02 109 9 42 <1 3 <1 1
RMD-04 271.9 274.45 2.55 No Sample
RMD-04 274.45 276.85 2.4 0.02 79 42 313 <1 7 <1 3
RMD-04 276.85 282.5 5.65 No Sample
109 Page 195 of 314
Hole From To Interval Au ppm Cu ppm Pb ppm Zn ppm Ag ppm As ppm Sb ppm Mo ppm
RMD-04 282.5 284.3 1.8 0.01 56 4 24 <1 3 <1 2
RMD-04 284.3 286.4 2.1 No Sample
RMD-04 286.4 288.4 2 0.02 112 4 16 <1 2 <1 2
RMD-04 288.4 290.8 2.4 0.02 120 4 44 <1 3 <1 2
RMD-04 290.8 293.6 2.8 No Sample
RMD-04 293.6 296.2 2.6 0.02 121 <4 24 <1 6 <1 3
RMD-04 296.2 300.2 4 No Sample
RMD-04 300.2 301.8 1.6 0.02 85 4 22 <1 2 <1 3
RMD-04 301.8 304.55 2.75 No Sample
RMD-04 304.55 306.15 1.6 0.03 214 <4 30 <1 1 <1 3
RMD-04 306.15 308.1 1.95 No Sample
RMD-04 308.1 310.65 2.55 0.03 109 5 39 <1 4 <1 11
RMD-04 310.65 312.05 1.4 No Sample
RMD-04 312.05 313.7 1.65 0.04 197 5 33 <1 1 <1 6
RMD-04 313.7 316.7 3 No Sample
RMD-04 316.7 318.7 2 0.08 399 10 42 <1 7 <1 10
RMD-04 318.7 320.7 2 0.04 316 5 34 <1 5 <1 13
RMD-04 320.7 323 2.3 No Sample
RMD-04 323 325 2 0.02 86 <4 57 <1 1 <1 22
For personal use only use personal For
110 Page 196 of 314
Appendix 5. Drill Hole Collars, J3 Prospect
Hole ID Easting Northing RL (m) Azimuth Dip Total Depth J3DH-01 486034 9020705 136 -45 60 50.7 J3DH-02 486064 9020730 133 -45 240 42.45 J3DH-03 486000 9020743 142 -45 60 79.4 J3DH-04 486105 9020666 135 -45 60 50.8 J3DH-05 486138 9020501 138 -45 330 72.9 J3DH-06 486280 9020509 135 -45 90 48.4 J3DH-07 486000 9020686 135 -75 60 17.9
For personal use only use personal For
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Appendix 6. Assay Information, J3 Prospect
Hole From To Interval Au g/t Ag g/t J3DH-01 1.90 3.50 1.6 <0.01 <1 J3DH-01 3.50 4.30 0.8 <0.01 <1 J3DH-01 4.30 6.45 2.2 <0.01 <1 J3DH-01 6.45 7.20 0.8 0.03 <1 J3DH-01 7.20 8.20 1.0 2.33 14 J3DH-01 8.20 9.20 1.0 1.52 8 J3DH-01 9.20 10.20 1.0 0.07 1 J3DH-01 10.20 11.20 1.0 0.08 4 J3DH-01 11.20 12.50 1.3 0.05 2 J3DH-01 12.50 13.30 0.8 0.01 <1 J3DH-01 13.30 14.40 1.1 0.02 1 J3DH-01 14.40 15.75 1.4 0.03 1 J3DH-01 15.75 16.65 0.9 0.03 1 J3DH-01 16.65 18.50 1.9 <0.01 <1 J3DH-01 18.50 20.50 2.0 <0.005 <1 J3DH-01 20.50 22.50 2.0 <0.005 <1 J3DH-01 22.50 24.50 2.0 <0.005 <1 J3DH-01 24.50 26.50 2.0 <0.005 <1 J3DH-01 26.50 28.50 2.0 0.006 <1 J3DH-01 28.50 30.50 2.0 <0.005 <1 J3DH-01 30.50 32.50 2.0 <0.005 <1 J3DH-01 32.50 34.50 2.0 0.006 <1 J3DH-01 34.50 36.10 1.6 <0.005 <1 J3DH-01 36.10 37.25 1.2 0.039 1 J3DH-01 37.25 39.25 2.0 <0.005 <1 J3DH-01 39.25 41.25 2.0 <0.005 <1 J3DH-01 41.25 43.25 2.0 <0.005 <1 J3DH-01 43.25 45.25 2.0 <0.005 <1 J3DH-01 45.25 47.25 2.0 0.006 <1 J3DH-01 47.25 49.25 2.0 0.006 <1 J3DH-01 49.25 50.70 1.5 0.008 <1 J3DH-02 1.00 1.85 0.85 0.006 <1 J3DH-02 1.85 2.30 0.45 <0.005 <1 J3DH-02 2.30 4.30 2.00 <0.005 <1 J3DH-02 4.30 6.30 2.00 0.006 <1 J3DH-02 6.30 8.30 2.00 <0.005 <1 For personal use only use personal For J3DH-02 8.30 10.60 2.30 <0.005 <1 J3DH-02 13.85 16.00 2.15 <0.005 <1 J3DH-02 34.60 35.65 1.05 <0.005 <1 J3DH-02 35.65 37.60 1.95 <0.005 <1
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Hole From To Interval Au g/t Ag g/t J3DH-02 41.20 42.45 1.25 <0.005 <1 J3DH-03 5.50 7.50 2.00 <0.005 <1 J3DH-03 7.50 9.50 2.00 0.007 <1 J3DH-03 9.50 11.10 1.60 <0.005 <1 J3DH-03 11.10 12.60 1.50 0.037 <1 J3DH-03 12.60 14.20 1.60 0.023 1 J3DH-03 14.20 16.10 1.90 0.007 <1 J3DH-03 16.10 18.10 2.00 <0.005 <1 J3DH-03 38.20 40.30 2.10 <0.01 <1 J3DH-03 40.30 42.30 2.00 <0.01 <1 J3DH-03 44.50 46.05 1.55 <0.01 <1 J3DH-03 77.90 79.40 1.50 0.01 <1 J3DH-04 2.60 4.60 2.00 <0.01 <1 J3DH-04 4.60 5.40 0.80 0.1 3 J3DH-04 5.40 6.50 1.10 0.25 3 J3DH-04 6.50 7.35 0.85 0.04 <1 J3DH-04 7.35 9.25 1.90 <0.01 <1 J3DH-04 29.35 31.30 1.95 <0.01 <1 J3DH-04 31.30 32.10 0.80 <0.01 <1 J3DH-04 38.80 39.75 0.95 <0.01 <1 J3DH-04 49.20 50.80 1.60 <0.01 <1 J3DH-05 2.30 4.50 2.20 <0.01 <1 J3DH-05 4.50 5.90 1.40 0.7 10 J3DH-05 5.90 6.65 0.75 0.04 2 J3DH-05 6.65 7.65 1.00 0.06 4 J3DH-05 7.65 8.65 1.00 0.05 3 J3DH-05 8.65 9.65 1.00 0.03 4 J3DH-05 9.65 12.00 2.35 0.02 <1 J3DH-05 17.60 19.50 1.90 <0.01 <1 J3DH-05 38.30 39.60 1.30 <0.01 <1 J3DH-05 50.80 53.10 2.30 <0.01 <1 J3DH-05 71.30 72.90 1.60 <0.01 <1 J3DH-06 0.35 1.35 1.00 0.04 <1 J3DH-06 1.35 2.45 1.10 0.05 <1 J3DH-06 2.45 3.30 0.85 0.08 <1 J3DH-06 3.30 4.20 0.90 0.1 <1 J3DH-06 4.20 4.60 0.40 0.05 1 J3DH-06 4.60 6.60 2.00 0.01 <1 For personal use only use personal For J3DH-06 6.60 8.60 2.00 <0.01 <1 J3DH-06 8.60 10.60 2.00 <0.01 <1 J3DH-06 10.60 12.60 2.00 <0.01 <1 J3DH-06 23.30 25.00 1.70 <0.01 <1
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Hole From To Interval Au g/t Ag g/t J3DH-06 25.00 26.50 1.50 0.03 <1 J3DH-06 29.60 32.00 2.40 <0.01 <1 J3DH-06 36.25 37.35 1.10 <0.01 <1 J3DH-06 42.85 44.80 1.95 <0.01 <1 J3DH-06 44.80 47.00 2.20 0.02 <1 J3DH-06 47.80 48.40 0.60 <0.01 <1 J3DH-07 1.50 2.70 1.2 <0.01 <1 J3DH-07 2.70 4.15 1.5 <0.01 <1 J3DH-07 4.15 5.20 1.1 <0.01 <1 J3DH-07 5.20 7.00 1.8 <0.01 <1 J3DH-07 7.00 8.85 1.9 <0.01 <1 J3DH-07 8.85 9.85 1.0 <0.01 <1 J3DH-07 9.85 10.90 1.1 0.02 <1 J3DH-07 10.90 12.15 1.3 0.04 <1 J3DH-07 12.15 13.20 1.1 0.03 <1 J3DH-07 13.20 14.30 1.1 0.02 1 J3DH-07 14.30 15.40 1.1 0.02 <1 J3DH-07 15.40 17.90 2.5 <0.01 <1
For personal use only use personal For
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