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CONSOLIDATED TIN MINES LIMITED
MDL 482 – Jeannie River
ANNUAL REPORT
01 February 2015 to 31 January 2016
Consultant Geologist - John Sainsbury
July 2017
CONSOLIDATED TIN MINES LIMITED Page 1 of 7 ABN: 57 126 634 606 ACN: 126 634 606 395 Lake Street Cairns North QLD 4870 Ph (07) 4032 3319 – Fax (07) 4027 9429 Email: [email protected]
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CONTENTS
1. Introduction ...... 3 2. Tenure and Location ...... 3 3. Regional Geology ...... 4 4. Exploration History and Local Geology ...... 5 5. Exploration Activities in Current Period ...... 6 6. References ...... 7
FIGURES
Figure 1 Overview with MDL 482 Figure 2 Location of MDL 482 Figure 3 Regional Geology
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1. Introduction
The Jeannie River Project is located approximately 95km to the North North West of Cooktown on Cape York Peninsula in Far North Queensland and comprises of MDL 482 and EPM 19468. An extended wet season persists in the area from October to April with large average rainfall, therefore this restricts land based access and exploration to dry season only.
Figure 1: Cooktown District with MDL 482
2. Tenure and Location
MDL 482 is located approximately 25kms from the coast within an area dominated by open eucalypt scrub. An access track, established by an exploration company in the mid 1980s, erodes through the northern wet season, and would require continual upgrade to allow exploration access, particularly drill rig access. Access to the tenement area is restricted at present to helicopter.
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Figure 2: Location of MDL 482
3. Regional Geology
The Jeannie River Project is located over 1:100 000 Jeannie River Map (7868) and 1:250 000 Cape Melville Map (SD55-9) Figure 3: Regional Geology of MDL 482
The Jeannie River Project area is hosted within greywacke’s, cherts, slates, conglomerates and sandstones of the mid-Devonian to lower-Carboniferous Hodgkinson Formation. The
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Hodgkinson rocks in the area generally strike north- south and are variable deformed by shearing and folding. The Permian Puckley Granit (biotite adamellite) outcrops in the project area. The country rocks in the contact aureole of the Puckley Granite are partially tourmalinised and hornfelsed. Minor quartz porphyry dykes and sills intrude at the periphery of the main intrusive bodies. Unconformably overlying the older rocks are sandstones of the Cretaceous to Jurassic age Battle Camp and Gilbert river formations. These rocks are essentially flat lying and form the elevated plateaus and escarpments typical of this area of Cape York Peninsula. Recent fossil talus, piedmont fans and alluvium cover much of the lower ground in the Jeannie River valley and the coastal plain.
4. Exploration History and Local Geology
Tin and base metal mineralisation in the area is thought to be related to the Puckley Granite and its associated intrusive. The mineralisation is generally associated with quartz veining within major fracture zones in the country rocks. The veining has been measured by previous workers as striking north-west to south-east and west-north-west to east-south- east with a very steep dip. The veins contain varying amount of pyrite, pyrrhotite, sphalerite, chalcopyrite, galena, arsenopyrite and cassiterite in a gangue of quartz and calcite (Lord & Fabray, 1986) Carpentaria Exploration Company Pty Ltd (CEC) commenced exploration in the project area during 1979, with a stream sediment survey identifying significant Sn anomalism (up to1.1% Sn in -8-# samples) Follow up soil and rock sampling yielded further significant results which included an average of 0.65% Sn being returned from detailed sampling of quartz veins from gossanous outcrops. A series of costeans were subsequently dug and the soil anomalism confirmed. An airborne and ground magnetic survey was then completed across the project area.
Following access track rehabilitation a percussion drilling program was initiated that yielded Sn mineralisation in quartz veins with associated sulphide. Some intervals from this programme included 3m @ 1.02% Sn and 27m@ 0.31%Sn. A second programme followed that also produced significant Sn mineralisation at the Jeannie River prospect such as 4m @ 0.86% Sn and 21m @ 0.22% Sn. Subsequently CEC drilled two diamond drill holes that intersected significant Sn, Cu and Zn mineralisation associated with quartz veining. Abundant pyrrhotite was also identified within the veins. An unsuccessful gravity survey was followed by a second round of diamond drilling that again yielded encouraging results that included 2.1m @ 0.53% Sn 0.44% Zn, 0.20% Cu and 12g/t Ag. Most of this mineralisation occurred within quartz veins but some evidence of the development of replacement sulphide/Sn mineralisation was noted in slightly calcareous sandstone. A third diamond drilling programme yielded further encouragement with intervals including 1m @ 2.67% Sn, 3.8m @ 0.98% Sn and 0.17% Zn being returned.
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Preliminary metallurgical testing of mineralised material indicated recoveries of 65% - 68% were possible using standard gravity methods of separation. This study also indicated that where cassiterite was intimately associated with pyrite and pyrrhotite, tin losses in the sulphide and magnetic tailings might prove troublesome as would the presence of elevated As in some material. In all CEC investigated four prospect areas, the Jeannie River prospect, the Saddle Hill prospect, the Whitewater prospect and the Radio Hill Prospect. Most of the work concentrated on the Jeannie River prospect (most drilling included all diamond drilling) with limited percussion drill testing at the Saddle Hill prospect and only limited surface work at Whitewater and Radio Hill. The Whitewater prospect was explored by only soil sampling and rock chip programs. The three prospects now contained within MDL 482, namely Jeannie River, Saddle Hill and Radio Hill, were the focus of the detailed testwork by CEC and through 1982-1985 the company completed 16 costeans, 52 percussion holes and 17 diamond holes for 3662 metres of percussion drilling and 5263 metres of diamond drilling.
CEC completed, in 1986, an estimate of mineralisation on their project area. The estimate was only meant to give feel for potential size. To 200 metre depth, CEC suggested a 6.3Mt @ 0.8% Sn target.
CEC withdrew their tenements in 1986 following the tin market crash in 1985.
5. Exploration Activities in Current Period
The more recent background to the tenement, and initial involvement of CSD, was the grant of a tenement that covered the three prospects. This tenement, EPM 14580, was granted to the directors of CSD in 2006 and later sold to Friends Exploration Pty Ltd ( Friends) who were taken over by Supersorb Environmental NL in January 2007. Friends Exploration, as a subsidiary of Supersorb Environmental NL, entered into a joint venture with Independence Group (IG) .
Friends and IG undertook project review, collected additional rock chip information, collated CEC into a useable database, surveyed the historic information into MGA coordinates and IG undertook, in 2009 an airborne magnetic survey.
Friends/IG withdrew from the Jeannie River Project in 2011 and sold EPM 14580 to CSD in 2011. CSD undertook review of work to that date, and John Sainsbury, consultant geologist to CSD, completed a resource estimate, for the Jeannie River project, to the 2004 JORC, as
Inferred Resource 2.24Mt @ 0.6% Sn, using a 0.2% Sn cutoff, and to 100 metre depth.
Tenement MDL 482 was granted to CSD on 22 January 2015, and the Company surrendered the EPM 14580 in 2015 as much of the extent of EPM 14580, and all of the known available mineralisation was contained within the MDL 482.
CSD was also granted a surrounding EPM 19468 in 2013, this initially taken up to surround EPM 14580, and allow for extensions from the known Jeannie River mineralisation.
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The Company has continued a review of the significant exploration potential of the mineralisation within the Jeannie River Project. This project area is a new tin mineralised province, and the CEC drilling confirms the significant mineralisation depth (to 400 metres and not closed with depth). The known deposits occur in mid Paleozioc metasediments that crop out quite poorly in the area. These sediments are exposed as inliers within Cretaceous and younger sediments surrounding and infilling the Jeannie River valley.
The Company is reviewing the airborne geophysical survey data with the aim to suggest where thinner cover rock may exist and thus allow exploration to be focussed.
6. References
Company Reports
Lord, J.R., 1986 A to P 3348, Jeannie River No 2. Final Report
CEC Technical Report 1444. CR 15170
Turley, S. D., 2007 Annual Exploration Report EPM 14580. Jeannie River Project
For Year Ending 6th March 2007, Torridon Exploration Report,
April 2007
Turley, S. D., 2008 Annual Exploration Report, EPM 14580, Jeannie River Project
For Year Ending 6th March 2008.
Explanatory Notes
Draper, J.J and Bain, J.H.C (1977) North Queensland Geology. Australian Geological Survey Organisation Bulletin 240 / Queensland Geology 9
Cape Melville 1: 250,000 Geological Series. Bureau of Lucas, K. G. & de Keyser, F. Mineral Resources & Geophysics. Geology Survey of Queensland Reprint, 1983.
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