ASX Announcement April 2014
WOOLGARLO GOLD PROJECT
General Manager 23rd April 2014
The Company Announcements Office Australian Securities Exchange Electronic Lodgement System
Dear Sir/Madam
MAGNETIC SURVEY AT WOOLGARLO GOLD PROJECT IN NSW IDENTIFIES PROSPECTIVE TARGETS
Highlights High-resolution air-borne magnetic and radiometric survey completed at Woolgarlo Gold Project in NSW Structural interpretation indicates favourable structures and magnetic signatures providing targets for potential epithermal gold mineralisation Historically known epithermal gold mineralisation in the area Targets to be followed up with IP and soil sampling surveys
Summary
Centrex Metals Limited (“Centrex”) has completed a high-resolution air-borne magnetic and radiometric survey over its 100% owned Woolgarlo Gold Project in the Lachlan Fold Belt NSW. Historical exploration has demonstrated that epithermal gold mineralisation is present within Devonian volcanic host rocks at either end of the project at the Mt
Myloraonly use personal For and Sugarbag prospects. The air-borne survey targeted the area between these two historical prospects, as Surgarbag to the south has been interpreted to be the top of an epithermal system, and Mt Mylora in the north to be the base. Centrex is targeting the center of the potential epithermal system below cover. ASX Announcement — April 2014
The magnetic survey results have been encouraging and suggest possible magnetic destruction along interpreted NNW trending faults, thought favourable for further epithermal gold mineralisation within the target host rocks. In addition an extensional component to the faulting has been interpreted at some point in the history, again favourable for mineralisation.
The overall interpretation indicates a central north-south trending graben feature that is in line with an epithermal model. Later EW compression has produced folding of the Devonian age host volcanics and generated other prospective structural traps for mineralisation.
An intrusion has also been interpreted to cross the host rocks at the northern end of the survey with a relatively increased magnetic signature in the adjacent rocks indicating potential contact metamorphism (alteration).
Interpreted Mt Mylora Prospect intrusion
Possible magnetic Possible intrusion destruction alteration contact
Interpreted Fault structures
Sugarbag Prospect For personal use only use personal For
Figure: Magnetic image showing, interpreted structure, targets areas (yellow outlines) and historical prospect locations.
CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752
ASX Announcement — April 2014
The next phase of exploration will involve field checks and ground truthing of interpreted structures, potential epithermal related alteration (in and around areas of magnetic destruction), and intrusion related targets. Following this several lines of dipole-dipole induced polarisation (“IP”) and soil sampling are planned across the target areas to provide drill ready targets.
The air-borne survey data was acquired by UTS Geophysics at a 60m line spacing (totaling 3,233 line kilometers) and at a flight height of 60m.
NSW Metals Portfolio Woolgarlo is the third project to be granted to Centrex in NSW and forms part of a new metals portfolio being created to present nearer–term value recognition opportunities, to balance its traditional longer-term and more capital intensive iron ore portfolio in South Australia. Centrex’s model is to be a developer and shareholder in a diversified portfolio of resource projects, solving funding at the project level through a series of foreign investment joint ventures. Aside from its long existing iron ore joint ventures in South Australia with Chinese steel majors the Company has already formed a fully funded joint venture with Shandong 5th Geo-Mineral Prospecting institute at its Goulburn Zinc-Lead Project just east of Woolgarlo in NSW.
Woolgarlo Gold Goulburn Zinc-Lead
Gundaroo Gold
Figure: Centrex’s metals portfolio in the Lachlan Fold Belt NSW. For personal use only use personal For
CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752
ASX Announcement — April 2014
For further information please contact:
Ben Hammond Alastair Watts Chief Executive Officer General Manager Exploration Centrex Metals Limited Centrex Metals Limited Ph (08) 8100 2200 Ph (08) 8100 2200
Competent Persons Statement
The information in this report relating to Exploration Results is based on information compiled by Mr Alastair Watts who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Watts is the General Manager Exploration of Centrex Metals Limited. Mr Watts has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Watts consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The checklist for reporting of exploration results is included in the table below: Criteria Explanation Airborne magnetic sensor: o Cesium vapour magnetometer o Vector magnetometer o 0.1nt resolution, 0.01nT sensitivity o 10Hz magnetic sampling rate Gamma Ray Spectrometer: Sampling Technique o 256 channel spectrometer o 2 x 16.8L detector packs o 1Hz sampling rate o Digital temperature Flight specifications: o 60m line spacing o 60m flight height Drilling Technique Air-borne geophysical survey only, no drilling undertaken
Drill Sample Recovery Air-borne geophysical survey only, no drilling undertaken
Logging Air-borne geophysical survey only, no drilling undertaken
Sub-sample techniques and sample Air-borne geophysical survey only, no physical samples taken For personal use only use personal For preparation
Quality of assay data and Air-borne geophysical survey only, no physical samples taken laboratory tests
CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752
ASX Announcement — April 2014
Verification of sampling and Air-borne geophysical survey only, no physical samples taken assaying Radar altimeter with 0.3m resolution, 10Hz sampling rate Location of data points 12 channel precision GPS system, 2Hz sampling rate 60m line spacing with 10Hz sampling rate along line for magnetics and 1Hz along line Data spacing and distribution sampling rate for radiometrics 600m tie line spacing Orientation of data in relation to Line spacing east-west sub-perpendicular to geology and major structures geological structure Audits or reviews Data corrections and validation by survey contractor plus independent geophysical consultant Mineral tenement and land tenure The Exploration Licence EL 8125 for Group 1 minerals was granted on December 19th status 2013 for a period of 3 years. Exploration done by other parties No results presented from other parties
Criteria Explanation The exploration model is primarily for epithermal style gold mineralisation The regional geological setting is the East Lachlan Fold Belt and the local geological Geology setting consists of Devonian volcanics intruded to the south project area by a major granitic pluton and a separate porphyry body with mineralisation targeted along NNW structures within the volcanics Data aggregation methods No data aggregation has been undertaken
Relationship between mineralisation widths and intercept Air-borne geophysical survey only, no physical sampling or drilling undertaken lengths See diagrams above displaying the interpreted structural features of the area derived Diagrams from the magnetic image displayed as well as historical prospect locations Magnetic data was the primary source for structural and target interpretations and so no Balanced reporting images of radiometric data has been shown Other substantive exploration Radiometric data was not used in the structural interpretations and generation of target results areas but was collected The next phase of exploration will involve field checks and ground truthing of interpreted structures, potential epithermal related alteration (in and around areas of magnetic destruction), Further work and intrusion related targets. Following this several lines of dipole-dipole induced polarisation (“IP”) and soil sampling are planned across the target areas to provide drill ready targets.
For personal use only use personal For
CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752