1. Healthcare

For personal use only
28 January 2015
ASX: AOH, FSE: A2O
COPPER DISCOVERY GROWS FURTHER AT TURKEY CREEK
•
RC drilling highlights further positive results for Cloncurry Copper Project
•
Turkey Creek to have material impact on financial metrics of Little Eva Project
•
Mineral Resource estimate for Turkey Creek expected in early 2015
•
Exploration target size increased
Altona Mining Limited (“Altona” or “the Company”) is pleased to announce the results of a Reverse
Circulation (“RC”) drilling programme at the Turkey Creek deposit at the Company’s 100% owned
Cloncurry Copper Project near Mt Isa in Queensland. Turkey Creek is located 1.5 kilometres east of
the planned Little Eva open pit mine and processing plant which lies within granted Mining Leases.
Better drill intercepts at a 0.3% copper cut-off grade, include.
Oxide Mineralisation:
TCKR047:
TCKR052:
TCKR046:
TCKR038:
44 metres at 1.09% copper including 23 metres at 1.50 % copper
46 metres at 0.61% copper including 20 metres at 0.94 % copper
42 metres at 0.89% copper including 26 metres at 1.22% copper
64 metres at 0.58% copper including 18 metres at 0.74% copper
Sulphide Mineralisation:
TCKR039: 30 metres at 0.52% copper including 17 metres at 0.72% copper
TCKR041: 63 metres at 0.49% copper including 12 metres at 0.93% copper
TCKR044: 33 metres at 0.69% copper including 11 metres at 1.08% copper
29 metres at 0.51% copper including 16 metres at 0.70% copper
See Tables 1 to 4 and Figures 1 to 6 for full details of the drilling programme and the context and
setting of the Turkey Creek deposit.
Commenting on the latest set of results, Altona Mining’s Managing Director Dr Alistair Cowden said:
“This provides further confirmation of the significant discovery at Turkey Creek which we announced in
October last year. The discovery is so close to the Little Eva deposit that it will have a material and
positive impact on the project’s financial metrics.
“Turkey Creek demonstrates the exploration potential of the entire Cloncurry Project and the reason
why we continue to remain very excited by the additional upside in production for the Little Eva
project,” he added.
AOH0664
Altona Mining Limited | Ground Floor, 1 Altona Street, West Perth WA 6005 | ABN 35 090 468 018
For personal use only
Following the drilling success at Turkey Creek announced on 28 October 2014, a total of 22 new holes
and an extension to one hole for 2,778 metres of RC drilling were completed during November and
December 2014. Drilling was guided by a preliminary block model, variography and first pass open pit
optimisation.
As a result of this drilling programme, the deposit was extended by an additional 600 metres in length,
to over 1.8 kilometres. Mineralisation was successfully confirmed down dip and now extends to 150
metres true depth below surface.
Exploration Target
The conceptual exploration target for the Turkey Creek deposit has been increased to 19 to 22 million
tonnes at a grade of 0.50 to 0.65% copper. This target is based on RC drilling to date, on first pass
geological modelling and upon a preliminary block model. The target is constrained to 150 metres
depth and now includes copper oxide mineralisation. This drilling programme indicates that there is a
high likelihood that the exploration target will be achieved. The conceptual exploration target for the
oxide component of the deposit is estimated to be 4 to 5 million tonnes at 0.60 to 0.80% copper grade
deletion here.
Whilst it is uncertain that a Mineral Resource will be defined, the continuity and simple geometry of the
mineralisation are excellent with true width increasing from approximately 10-30 metres for the
southern part of the deposit to 30-50 metres in the north. The majority of known mineralisation is
generally tabular, oriented north and dips at 60 degrees to the east. At the northern end of the deposit,
the strike of the mineralisation swings sharply towards the east and dips steeply south.
The deposit tapers at the southern and north-eastern extents. However, additional drilling is required
to fully close mineralisation and additional potential may exist along strike. An untested hand held Xray Fluorescence (“XRF”) copper soil anomaly to the east of the deposit may also represent a parallel
zone of mineralisation.
Implications for Little Eva Development
The proposed Little Eva development is a large scale and medium grade operation and as such,
additional potential production from Turkey Creek will have a material impact on the financial metrics
of the project.
Turkey Creek is located at the proposed site of the tailings storage facility for the 7 million tonne per
annum Little Eva mill. The discovery of a large deposit such as Turkey Creek so close to the planned
Little Eva pit and infrastructure will require a re-design of the plant layout, waste dumps and tailings
storage facility. In addition, the potential to increase the mine life and throughput for the project will
require the mining and development schedule to be recast to accommodate Turkey Creek.
Furthermore, the drilling programme indicates significant oxide mineralisation at Turkey Creek and it
may be that together with oxide mineralisation at Bedford and Little Eva, the project can support a
heap leach SXEW facility (Solvent-Extraction and Electro-Winning). Please note that estimates for
oxide mineralisation for these deposits have not been released and the relevant Resource models will
be re-evaluated to determine the tonnage of oxide cap available, past metallurgical leach tests
reviewed and new sighter tests completed at Turkey Creek.
AOH0664
2.
For personal use only
Altona intends to complete a Mineral Resource estimate for Turkey Creek in early 2015 which will
allow the modelling of its impact on the planned operations as outlined in the updated Definitive
Feasibility Study announced in March 2014.
Preliminary metallurgical and mineralogical testing is currently underway to assess the suitability of the
planned Little Eva Flotation circuit for treatment of sulphide mineralisation at Turkey Creek.
Please direct enquiries to:
Alistair Cowden
Managing Director
Altona Mining Limited
Tel: +61 8 9485 2929
[email protected]
James Harris
Professional Public Relations
Perth
Tel: +61 8 9388 0944
[email protected]
Jochen Staiger
Swiss Resource Capital AG
Tel: +41 71 354 8501
[email protected]
About Altona
Altona Mining Limited is an ASX listed company which recently sold its successful Outokumpu mine in
Finland and is now focussed on a major copper development project in Australia.
The Cloncurry Copper Project near Mt Isa in Queensland is one of Australia’s largest undeveloped
copper projects. The first development envisaged is the 7 million tonnes per annum Little Eva open pit
1
copper-gold mine and concentrator. Little Eva is fully permitted with proposed annual production of
38,800 tonnes of copper and 17,200 ounces of gold for a minimum of 11 years. A Definitive Feasibility
Study was published in March 2014. Total resources contain some 1.5 million tonnes of copper and
0.41 million ounces of gold. Altona is engaged in discussions with potential partners to enable the
funding of this major development.
Altona Mining is listed on the Australian Securities Exchange and the Frankfurt Stock Exchange.
JORC 2012 and Competent Persons Statement
Information in this ASX Release that relates to Exploration Results, Exploration Targets, Mineral
Resources or Ore Reserves and commentary in JORC Table 1 on mining, metallurgy and environment
is based on information compiled by Dr Alistair Cowden BSc (Hons), PhD, MAusIMM, MAIG and Mr
George Ross, MSc, MAIG who are full time employees of the Company and who have sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and
to the activity which they are 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’. Dr Cowden and Mr Ross consent to the inclusion in the report of the matters based on their
information in the form and context in which it appears.
AOH0664
3.
For personal use only
Figure 1: Location of Cloncurry Project
AOH0664
4.
For personal use only
Figure 2: Location of Turkey Creek within the Little Eva area
AOH0664
5.
For personal use only
Figure 3: Surface projection of mineralisation and drilling at Little Eva and Turkey Creek
AOH0664
6.
For personal use only
Figure 4: Plan of the Turkey Creek mineralisation and drilling
AOH0664
7.
For personal use only
Figure 5: Cross Section 7771700N
Figure 6: Cross Section E412450
AOH0664
8.
Table 1: Significant drill intercepts January 2015
From
(metre)
Width
(metre)
Copper
(%)
Oxide/
Sulphide
TCKR031
26
31
0.44
Sulphide
TCKR032
27
11
0.61
Sulphide
TCKR033
87
7
0.33
Sulphide
TCKR033
99
11
0.74
Sulphide
For personal use only
Hole ID
Turkey Creek
TCKR034
No significant intercepts
TCKR035
No significant intercepts
TCKR036
81
5
0.29
Sulphide
TCKR036
92
9
0.48
Sulphide
TCKR037
28
23
0.52
Sulphide
TCKR038
0
64
0.58
Oxide
TCKR038
73
6
0.63
Sulphide
TCKR039
141
9
0.66
Sulphide
TCKR039
165
4
0.86
Sulphide
TCKR039
176
4
0.56
Sulphide
TCKR039
190
30
0.53
Sulphide
TCKR040
156
6
0.96
Sulphide
TCKR040
167
5
0.49
Sulphide
TCKR040
181
27
0.55
Sulphide
TCKR041
108
63
0.49
Sulphide
TCKR042
94
9
0.86
Sulphide
TCKR042
110
6
0.39
Sulphide
TCKR042
121
25
0.54
Sulphide
TCKR043
129
12
0.64
Oxide
TCKR043
150
12
0.57
Oxide
TCKR044
49
33
0.69
Sulphide
TCKR044
89
29
0.51
Sulphide
TCKR045
17
32
0.53
Sulphide
TCKR046
25
42
0.89
Oxide
TCKR047
1
44
1.09
Oxide
TCKR047
58
5
0.66
Sulphide
TCKR048
24
47
0.42
Oxide
TCKR048
88
10
0.36
Sulphide
TCKR049
2
14
0.57
Oxide
TCKR049
32
4
0.35
Sulphide
TCKR049
57
4
0.49
Sulphide
TCKR050
64
9
0.48
Sulphide
TCKR050
98
10
0.41
Sulphide
TCKR051
57
11
0.45
Sulphide
TCKR052
15
46
0.61
Oxide
AOH0664
9.
Table 2: RC drill hole collar information
Hole
Type
Grid ID
Easting
(metres)
Northing
(metres)
Elevation
(metres)
Azimuth
(degree)
Dip
(deg)
Depth
(metres)
TCKR031
TCKR032
RC
MGA94 54
412339
7772203
173
270
-64.6
102
RC
MGA94 54
412358
7772304
174
270
-59.2
96
TCKR033
RC
MGA94 54
412415
7772311
171
270
-65.5
138
TCKR034
RC
MGA94 54
412398
7772400
172
270
-60.0
78
TCKR035
RC
MGA94 54
412329
7772153
172
270
-61.0
84
TCKR036
RC
MGA94 54
412381
7772158
167
270
-59.2
150
TCKR037
RC
MGA94 54
412397
7772047
173
270
-60.0
96
TCKR038
RC
MGA94 54
412416
7772366
177
270
-59.2
90
TCKR039
RC
MGA94 54
412526
7771704
179
270
-64.1
228
TCKR040
RC
MGA94 54
412532
7771602
177
270
-65.3
222
TCKR041
RC
MGA94 54
412520
7771493
178
270
-65.3
192
TCKR042
RC
MGA94 54
412500
7771393
175
270
-63.9
162
TCKR043
RC
MGA94 54
412552
7772252
177
360
-64.3
180
TCKR044
RC
MGA94 54
412445
7771544
176
270
-63.7
132
TCKR045
RC
MGA94 54
412355
7771699
174
270
-65.0
96
TCKR046
RC
MGA94 54
412553
7772291
173
360
-59.0
90
TCKR047
RC
MGA94 54
412449
7772341
173
360
-58.7
90
TCKR048
RC
MGA94 54
412449
7772314
175
360
-64.2
120
TCKR049
RC
MGA94 54
412648
7772255
176
360
-60.2
90
TCKR050
RC
MGA94 54
412649
7772212
175
360
-59.1
114
TCKR051
RC
MGA94 54
412749
7772296
173
358
-60.3
90
TCKR052
RC
MGA94 54
412359
7772321
250
360
-60.0
84
Hole ID
For personal use only
Turkey Creek
AOH0664
10.
Table 3: Table 1 of the JORC Code: Turkey Creek and Green Hills drilling programme
For personal use only
Section 1: Sampling Techniques and Data
Criteria
Commentary
Sampling
techniques
• Sampling was via a reverse circulation (RC) drilling rig to obtain 1m samples
weighing an average 3-4kg. Samples were produced using a rig mounted cyclone
and cone splitter for a ratio of 87.5% to 12.5%. The majority of the samples were
recorded dry. All samples were sent to be analysed at ALS laboratories in
Townsville.
• Reverse circulation using 5.5” bit.
Drilling
techniques
Drill sample
recovery
Logging
Sub-sampling
techniques
and sample
preparation
Quality of
assay data
and laboratory
tests
Verification of
sampling and
assaying
AOH0664
• Recovery was visually estimated and recorded. Recoveries are considered to be
excellent averaging well over 90%, generally 100%. Occasionally lower recoveries
were recorded within the top few meters prior to the casing of the hole.
• Every individual sample was collected into the cyclone prior to cone splitting.
Cyclone and sampling equipment was checked and cleaned after each rod.
• No significant changes in recoveries through the mineralised zones hence no
subsequent bias to the grade.
• Logging was completed by Altona Mining geologists at the rig from wet rock chip
samples using Altona logging procedures.
• Logging is qualitative and quantitative including, colour, lithology, mineralisation,
alteration, sulphide and oxide mineralogy, sulphide and oxide amount, texture,
grain size and structure.
• All holes were logged in full.
• No drill core.
• The RC samples were split to 87.5%: 12.5% ratio using a cyclone and cone
splitter. Vast majority of the samples were recorded dry, only few individual wet
samples were encountered.
• The samples were sent to ALS Laboratories in Townsville for sample preparation
and analysis. ALS Laboratories use best industry standard sample preparation
including drying, crushing and pulverisation.
• Sample size is considered representative for typical copper mineralisation at
Roseby area.
• The samples were analysed using an Aqua Regia digest followed by ICP-MS for
41 elements. Aqua regia is considered to be a partial leach method.
• Gold was analysed using fire assay and AAS finish.
• No geophysical tools were used to determine the results reported here.
• Quality Control included certified reference materials from Geostats Ltd.
Standards were inserted into the sequence at 1:20 ratio and included
representative base metal material for copper, gold standards and blanks.
th
• Duplicates were taken using riffle splitter on site for every 20 sample.
• All duplicate and reference data is considered very good quality and within
acceptable limits.
• Results were checked by several Altona personnel.
• No twinned holes.
• All field logging data was done using laptop and uploaded into the company
Datashed database and validated by company database personnel.
• All assay files were received in digital format from ALS Laboratories. Data was
11.
For personal use only
Criteria
Location of
data points
Commentary
•
•
•
•
•
Data spacing
and
distribution
•
Orientation of
data in
relation to
geological
structure
•
Sample
security
Audits or
reviews
•
•
•
•
•
uploaded into the Altona Datashed database and validated by company database
personnel. No manual data inserts took place.
No adjustments have been applied to the results.
Collar locations have been surveyed using companies own DGPS with
approximately 0.1 metre accuracy.
Down hole surveys were completed at the end of each hole within drill rods by
Altona personnel using non-magnetic Gyro tool for azimuth and dip.
The Grid is GDA94 MGA Zone 54.
Elevation accuracy of DGPS survey is considered to be less than 0.5m and has
been verified against detailed ground survey previously completed in the area.
100 metre section spacing and generally two or three holes per section
approximately 50m apart.
No resource estimate has been completed.
Samples determined as copper barren when checked with a handheld XRF device
were composited by the laboratory in accordance with standard Altona
procedures. Samples were composited into three metre intervals.
Mineralisation strike is approximately north – south and swings to the east in the
northern part of the deposit. Drilling was towards the west or north as deemed
appropriate. Drilling was completed generally at 60 degree dip and with changing
dip of the mineralisation true widths are estimated to be 80% of the down hole
intercepts in the north, 90% in the central area and 80% in the south.
No bias is considered to result from drilling direction.
Samples were collected into pre-numbered calico bags and delivered to ALS as
they were collected. Unique sample number was retained during the whole
process. Samples were stored in Altona facilities in Cloncurry prior to the transport
to Townsville.
No audits or reviews have been undertaken.
Section 2: Reporting of Exploration Results
Criteria
Commentary
Mineral
tenement and
land tenure
status
• Turkey Creek is within Mining Lease 90125 and Green Hills within Mining Lease
90124. Both MLs are 100% owned by Altona Mining Ltd.
• No joint ventures apply.
• There are agreements in place with the native title holders, the Kalkadoon people
and with landholders.
• No significant historic sites or national parks are located within the reported
exploration sites.
• Both Mining lease were granted in late 2012 and are in good standing.
Exploration
done by other
parties
• CRA Exploration completed soil surveys, RC drilling and mapping at Turkey
Creek. Soil survey and mapping identified the mineralisation but drilling failed to
intersect mineralisation due to the wrong drilling direction.
• Xstrata Exploration drilled two RC holes at the southern portion of Turkey Creek in
2011 intersecting copper mineralisation.
• Altona Mining followed with seven RC holes in 2012 extending the mineralisation
some 400m to the north.
AOH0664
12.
Criteria
For personal use only
Geology
Drill hole
Information
Data
aggregation
methods
Relationship
between
mineralisation
widths and
intercept
lengths
Diagrams
Balanced
reporting
Other
substantive
exploration
data
Further work
AOH0664
Commentary
• Altona Mining completed an additional 22 holes during June/July 2014.
• Mineralisation is considered to be hydrothermal and structurally controlled
following internal competency, chemical and permeability contrast typical to the
Roseby area metasediments.
• Mineralisation occurs both as fine grained pervasive dissemination and coarse
grained vein hosted. Mineralisation is sulphidic under shallow, approximately 25
metre, oxidised cap. Copper sulphides include chalcocite, chalcopyrite and
bornite. Majority of the oxide mineralisation consists of malachite but significant
amounts of cuprite have been observed.
• Collar locations, elevations, azimuth, dip and lengths are presented in Table 2 of
this release.
• Down hole widths of the mineralisation are presented in Table 1 of this release.
• Standard intercepts were calculated using a 0.3% copper cut-off typical to the
Roseby area mineralisation. A minimum of 4m intercepts are reported here and a
maximum of consecutive 4m of below 0.3% samples were allowed within each
intercepts.
• ‘Expert Selected’ intercepts were selected consecutive metres with varying cutoffs and internal waste parameters.
• No equivalent calculations have been applied or used.
• Drilling azimuth is considered to be approximately perpendicular to the strike of
the mineralisation resulting unbiased widths in east – west direction.
• True widths of the intercepts vary according to the varying dip of the mineralisation
and the dip of the well-defined schist host rock.
• Mineralisation dips at approximately 60 degrees to east for the majority of the
central portion. True widths are considered to represent average of 90% of the
down hole intercepts. In the north and south mineralisation dips to east at 70 and
80 degrees, respectively. True widths are considered to represent average of 80%
of the down hole intercepts. In the north mineralisation strikes towards the east
and is interpreted to dip steeply south.
• Refer to the Figures 1 to 6 and Tables 1 and 2.
• Best results for each hole have been reported in Table 1 including no significant
results using the criteria described above.
• Not applicable.
• Additional work in the future will consist of infill drilling for resource definition
purposes.
13.
For personal use only
Table 4: Summary of Mineral Resource Estimates for the Cloncurry Copper Project
TOTAL
DEPOSIT
Tonnes
million
Grade
Cu
%
Au
g/t
CONTAINED
METAL
Copper
Gold
Tonnes
tonnes
million
MEASURED
ounces
INDICATED
Grade
Cu
Au
%
g/t
Tonne
million
INFERRED
Grade
Cu
%
Tonnes
Au
g/t
million
Grade
Cu
Au
%
g/t
COPPER GOLD DEPOSITS
Little Eva
Ivy Ann
Lady Clayre
Bedford
Sub-total
105.9
0.52
0.09
546,000
295,000
37.1
0.60
0.09
45.0
0.46
0.08
23.9
0.50
0.10
7.5
0.57
0.07
43,000
17,000
-
-
-
5.4
0.60
0.08
2.1
0.49
0.06
14.0
0.56
0.20
78,000
85,000
-
-
-
3.6
0.60
0.24
10.4
0.54
0.18
1.7
0.99
0.20
17,000
11,000
-
-
-
1.3
1.04
0.21
0.4
0.83
0.16
129.1
0.53
0.10
684,000
409,000
37.1
0.60
0.09
55.3
0.49
0.09
36.7
0.51
0.12
COPPER ONLY DEPOSITS
Blackard
76.4
0.62
-
475,000
-
27.0
0.68
-
6.6
0.60
-
42.7
0.59
-
Scanlan
22.2
0.65
-
143,000
-
-
-
-
18.4
0.65
-
3.8
0.60
-
Longamundi
10.4
0.66
-
69,000
-
-
-
-
-
-
-
10.4
0.66
-
Legend
17.4
0.54
-
94,000
-
-
-
-
-
-
-
17.4
0.54
-
Great Southern
6.0
0.61
-
37,000
-
-
-
-
-
-
-
6.0
0.61
-
Caroline
3.6
0.53
-
19,000
-
-
-
-
-
-
-
3.6
0.53
-
Charlie Brown
0.7
0.40
-
3,000
-
-
-
-
-
-
-
0.7
0.40
-
136.7
0.61
-
840,000
-
27.0
0.68
-
25.0
0.64
-
84.7
0.59
-
265.8
0.57
0.05 1,524,000
409,000
64.1
0.63
0.05
80.3
0.54
0.06
121.4
0.56
0.04
Sub-total
TOTAL
See ASX release of 27 May 2014 (Little Eva), 26 July 2011* (Longamundi, Great Southern, Caroline and Charlie Brown), 23 April 2012* (Bedford, Ivy Ann and
Lady Clayre), 03 July 2012* (Blackard and Scanlan) and 22 August 2012* (Legend) for full details of resource estimation methodology and attributions.
Note: All figures may not sum exactly due to rounding.
Little Eva is reported above a 0.2% copper lower cut-off grade, all other deposits are above 0.3% lower copper cut-off grade.
* This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the
basis that the information has not materially changed since it was last reported.
AOH0664
14.