DSC00592.JPG
 

To read all the latest announcements on the NZX website - Click here

 

Asian Minerals drills 1.79 m of 1.73% Ni at Ban Phuc

Dear Aorere Resources shareholder,

This announcement has just been released by NZX.

Chris Castle

Managing Director

Aorere Resources Limited

chris@widespread.co.nz

Cell: +64 21 558 185

www.aorereresources.co.nz

17 June 2015

Dear Aorere Resources shareholder,

Our oldest investment, Asian Mineral Resources, made the announcement below in Canada last night.

Our shareholding in AMR is presently our third largest holding and represents approximately 20% of our assets. 

Regards, 

Chris Castle

Managing Director

Email: chris@widespread.co.nz

 

Asian Minerals drills 1.79 m of 1.73% Ni at Ban Phuc

2015-06-16 11:34 ET - News Release

Mr. Evan Spencer reports

ASIAN MINERAL RESOURCES IDENTIFIES MULTIPLE NEW HIGH-GRADE NICKEL TARGETS

Asian Mineral Resources Ltd. and its subsidiary, Ban Phuc Nickel Mines LLC, have released the latest results of the exploration program at and around its high-grade nickel mine at Ban Phuc.

Exploration highlights:

  • Confirmed continuation of massive sulphide mineralization downdip at Suoi Phang. Results include 1.79 metres at 1.73 per cent nickel (hole SP14-4);
  • 14 new high-priority targets identified to date, taking the regional inventory for nickel and copper targets to 28;
  • New, high-priority mine extension target at Ban Phuc Deep following detailed structural interpretation and geological history of Ban Phuc. Follow-up drilling at Ban Phuc Deep planned for late June, 2015;
  • New brownfields targeting model developed;
  • Greatly increased understanding of geology and the Ban Phuc feeder structure at depth.

Evan Spencer, president and chief executive officer for Asian Mineral Resources, commented:

"The discovery of new high-grade targets close to our mining and processing facility is extremely encouraging. We are particularly pleased with the confirmation of massive sulphide mineralization at Suoi Phang. As our recent operational announcements confirmed, the last 12 months of production have exceeded expectations, and we now have the cash-generating platform to aggressively pursue the growth potential of our 49.7-square-kilometre exploration area. Vietnam benefits from low exploration costs and very strong community support. With our increasingly detailed understanding of the geology, we are excited about the region's potential to host a world-class magmatic nickel sulphide camp."

Exploration program overview

In July, 2014, Ban Phuc Nickel Mines was awarded the exclusive mineral exploration rights for continuing exploration of nickel-copper mineralization over a 49.7-square-kilometre area surrounding its Ban Phuc nickel mine located in the Ta Khoa region in northern Vietnam. Ban Phuc is within the Song Da rift, a major crustal suture zone, which is part of a broader northwest-trending corridor of deep continental rifting known as the Red River fault zone, which extends from northern Vietnam into China, and hosts a number of nickel, copper, lead, and zinc deposits and occurrences. The area is an excellent geological address in a geo-tectonic and structural zone that has many favourable factors for development of different styles of nickel-copper deposits, including Norilsk, Jinchuan and Voisey Bay styles.

Ban Phuc's massive sulphide nickel-copper deposit (MSV) is hosted by metamorphosed sediments (the Ban Phuc beds) adjacent to an ultramafic intrusion, which also contains disseminated nickel sulphides. Ban Phuc occurs close to the core of the regional-scale Ta Khoa anti-cline, which also hosts a number of other surface nickel and copper, and ultramafic occurrences.

Drilling was undertaken at Ban Phuc and Suoi Phang in August and September, 2014. These results, along with low-cost underground follow-up work to expand structural and geological mapping, and geochemical sampling coverage, have been integrated into a 3-D geological study aimed at understanding ore distribution trends, ore genesis and to feed into the exploration targeting model.

Ban Phuc drilling and mapping

During August, 2014, six diamond drill holes totalling 2,506 metres were drilled below the base of previous drilling at Ban Phuc. Results are provided in the attached table. Holes were drilled as a platform for investigations into potential depth extensions to the Ban Phuc MSV. Interpretation of this drilling has led to a new, high-priority exploration target known as Ban Phuc Deep. Drilling aimed to test this target is scheduled to commence in late June, 2015.

Two holes on the eastern and western extremities intersected thin intervals of deformed MSV, interpreted to be boudin neck sections of MSV, which is a common form of structural segmentation that results from regional extension and is observed elsewhere within the Ban Phuc MSV in underground exposures. While there was a lack of contained nickel, features observed in logging of these holes indicate a geological structure that has offset, rather than terminated, the MSV. Four holes did not intersect MSV nickel mineralization.

Surface mapping and 3-D modelling of the proximal disseminated material that took place during the first half of 2015 have identified a previously unrecognized, late-stage fault network which is projected to intersect the MSV below 1,110 maximum rate limitation (mRL). Kinematic measurements taken at the surface indicate oblique north block down sense of movement. Previous interpretations concluded that Ban Phuc MSV terminated at around 1,110 mRL; however, this recent work suggests that MSV has been offset by a fault.

Ban Phuc geological model

Recent studies have also led to a changed interpretation of the genesis of the Ban Phuc nickel-copper deposit. Ban Phuc has previously been considered to have experienced amphibolite facies metamorphism, under which sulphides were thought to have been remobilized (under pressure) from the ultramafic intrusion and concentrated within the pressure shadow. Recent observations suggest the Ban Phuc strata is of greenshcist facies rather than amphibolite facies, with petrographic work currently being undertaken. If the Ban Phuc strata is in fact greenschist facies, this implies lower temperature and pressure were experienced during deformation. This is highly significant, as it invalidates the previous genetic model, and under the new interpretation, there are significant potential size and geometry implications for the MSV.

A new genetic model is proposed for Ban Phuc:

  • MSV zone represents a conduit that ultramafic melts and fluids feed an intrusive, and may have seen more than one phase of fluid/melt intrusion;
  • Sulphides accumulated in the feeder rather than in the intrusion. This emplacement model has analogies in other known deposits, most notable of which is Voisey Bay.

This genesis model explains the lack of massive sulphides within the Ban Phuc ultramafic, and also the proximal, but not basal, relationship between MSV and the ultramafic.

The key implication of this reinterpretation is that much larger dimensions of a massive sulphide deposit are now considered possible than what was previously assumed for the Ban Phuc MSV.

Having identified a structure that has caused displacement of the geological sequence, the company is focused on locating a potential offset continuation of the MSV. Underground mapping data collected since mining commenced in 2013 display evidence of local offsets and deformation consistent with the new genetic model.

Suoi Phang drilling

During September, 2014, four shallow diamond holes were drilled at the Suoi Phang prospect for a total of 253 metres. Results are provided in the attached table.

The Suoi Phang prospect, located 12 kilometres in a direct line from Ban Phuc, contains a significant outcropping nickel gossan with a mapped strike extent of over four kilometres. Historic trench samples returned encouraging nickel results with grades of over 5 per cent nickel, providing the prospect with the potential for discovery of a new MSV orebody. Drilling in 2014 proved successful in locating the downdip extension of the MSV that presents at surface as gossan, and results included a significant intercept in hole BP14-4 of 1.79 metres of 1.73 per cent nickel.

Additionally, drilling at Suoi Phang also identified a late-stage fault which is interpreted to structurally offset the MSV.

Regional fieldwork and structural review

Following drilling, AMR commissioned a detailed geological review to support its exploration program and continuing regional geological understanding. The geometry and position of the MSV at Ban Phuc within the regional strain field have been applied regionally, and used in conjunction with recent modelling of geophysics and geochemistry to detect and rank potential new exploration targets, and to augment ranking of existing targets.

The geological review was completed by an experienced, Vietnam-based resources manager (Michele Spencer), deputy director/exploration manager, Dinh Huu Minh, and renowned specialists Ben Grguric (nickel mineral systems), Brett Davis (structural geology) and Darryl Mapleson (BM Geological Services).

This work has been highly successful in identifying 14 new high-priority targets within three kilometres of the mine, and almost doubling regional target inventory for further investigation on the company's granted exploration concessions. Targets are currently ranked according to proximity to infrastructure, and favourable geophysical, structural and geochemical features.

Following the success of this work in the near mine area, plans to extend structural targeting regionally are scheduled for later in the year.

Planned future exploration work

AMR has commenced a staged exploration plan aimed to test high-priority targets, further refine near-mine and regional targets, and continue to search for new targets, as well as to continually build the geological understanding of the region.

Highest-priority targets are Ban Phuc Deep, described above, and prospects along the Ban Khoa trend.

The Ban Khoa trend is a grouping of targets which extend for over 2.8 kilometres of strike to the east of Ban Phuc. Occurrences along the Ban Khoa trend bear many similarities to Ban Phuc and are interpreted to be an easterly continuation of the same geology, disrupted by a northwest-trending regional-scale fault that has offset the package to the north. The key geological elements of 1) ultramafic intrusion into Ban Phuc horizon sediments; 2) mapped massive nickel sulphides and/or nickel plus or minus copper anomalism at surface; and 3) geophysical conductors that appear to wrap around intrusives, are all present along the trend.

Work plans have been devised to test and upgrade key targets, focusing on Ban Phuc Deep and regional targets. The exploration work plan has been divided into two stages.

Ban Phuc Deeps:

  • Drilling to commence late June, 2015, initially with three holes including downhole electromagnetic;
  • Subject to results of drilling and downhole geophysics, a further five holes for a total of 1,600 metres are planned.

Regional program -- stage 1:

  • Fieldwork to be conducted by company geologists to expand structural mapping and geochemical soil coverage over regions of high prospectivity;
  • FLTEM survey to test for potential conductive targets in proximity to near-mine intrusions.

Regional program -- stage 2 (subject to results of stage 1 and board approval):

  • Further fieldwork to extend coverage, and scope of surface mapping and geochemistry;
  • Extend coverage and scope of geophysics (may include other methods);
  • Extend detailed geological understanding across broader groundholding in the Ta Khoa region;
  • Drilling of priority 1 targets.

The scientific and technical information in this press release has been compiled and approved by Darryl Mapleson (BSc (honours), FAusIMM), who is a geologist retained by Asian Mineral Resources, and a competent person as defined by JORC (Australasian Joint Ore Reserves Committee) guidelines and a qualified person for National Instrument 43-101. He has been working for Asian Mineral Resources as an independent consultant.

Note: Intercepts are downhole widths; recovery of samples was 100 per cent; samples were analyzed using a mixed-acid digest with an ICP finish at Bureau Veritas Laboratory in Perth, Western Australia. The grid system used is VN 2000 zone 104.5.

       SIGNIFICANT ASSAY RESULTS OF MSV AT SUOI PHANG IN HOLE SP14-04

Hole ID    From (m)    To (m)  Intercept (m) Ore type   Ni (%)   Cu (%)  Co (%)

SP14 01        NSI       NSI            NSI       NSI     NSI      NSI     NSI

SP14 02        NSI       NSI            NSI       NSI     NSI      NSI     NSI

SP14 03        NSI       NSI            NSI       NSI     NSI      NSI     NSI

SP14 04      21.15     22.94           1.79       MSV    1.73      0.3    0.04


Note: Intercepts are downhole widths; recovery of samples was 100 per cent;

samples were analyzed using a mixed-acid digest with an ICP finish at

Bureau Veritas Laboratory in Perth, Western Australia. The grid system used

is VN 2000 zone 104.5.

Brief backgrounds of key people

Ben Grguric -- independent consultant

Mr. Grguric has worked in the mining and exploration industry since 1993 in both operational and exploration roles, and specializes in mineralogy, petrology and the detailed characterization of orebodies. He has also spent several years involved in commodity targeting, grassroots exploration, project evaluation and feasibility studies worldwide. Throughout his career, his role commonly involved boundary-spanning geology and mineral processing, as well as industry and academia liaison, including supervision of research projects and collaborative research programs. Specialty commodities include nickel, gold, platinum group elements, uranium and base metal deposits. Mr. Grguric is a graduate of the University of Adelaide (BSc honours) and the University of Cambridge (PhD). He has held senior technical and managerial roles in WMC Resources, BHP Billiton, Western Metals, Norilsk Nickel Australia and is currently a freelance consultant. He is an adjunct fellow at the UWA-Centre for Exploration Targeting and a research associate of the WA Museum.

Brett K. Davis -- principal structural geologist (Orefind)

Mr. Davis is widely regarded in the exploration and mining industry for his application of applied structural geology to numerous commodity types and mineral deposit styles. The approach Mr. Davis has brought to understanding mineralizing environments globally is a product of the integration of modern structural geology and techniques married with several decades of applied research. Mr. Davis received a BSc (honours Class I) from James Cook University (1986) and has completed a structural geology PhD (1992) at James Cook University, followed by six years of applied structural geological postgraduate research. Mr. Davis has over 20 years of experience in the mining industry, and currently holds an adjunct senior research fellow position at the University of Western Australia.

Darryl Mapleson -- principal geologist (BM Geological Services)

Mr. Mapleson, BSc (honours), has worked in the minerals industry since 1989. He has substantial operational and exploration experience in nickel; working in multiple Kambalda nickel mines and the Perseverance operation in Leinster, Western Australia. Significant achievements include the building of a mineral services group of interrelated companies, which includes a geosciences company, a downhole directional and geophysical surveying company, and a surface diamond drilling company. Mr. Mapleson has more than 25 years of industry experience, and is a fellow of the Australasian Institute of Mining and Metallurgy.

© 2015 Canjex Publishing Ltd. All rights reserved.