Carpentaria Exploration Limited (ASX:CAP) Quarterly Report For The Period Ending 30 September 2009
Brisbane, Oct 21, 2009 AEST (ABN Newswire) - Carpentaria Exploration Limited (ASX:CAP) announce its Quarterly Report for the period ending 30 September 2009.
EXPLORATION
Redan JV / Burta
A 3 hole, 606m reverse circulation (RC) drilling program was finished early in the quarter. Encouraging results indicated the source to the magnetic anomaly was a thick magnetite siltstone that produced a very clean (very low deleterious elements), high grade concentrate. During the quarter Carpentaria commissioned independent technical specialists Hellman and Schofield Pty Ltd (H&S) to assess the data to date. In October, H&S reported an exploration target(1) range of 2.5 to 4.5 billion tonnes at 18% magnetite with a Davis Tube Recovery (DTR) giving a concentrate grade of 69 -71% Fe to a depth of 250m, over an estimated strike length of 42.8 to 46.4 km of magnetite siltstone in the project area.
An additional tenement application, South Dam, located in South Australia over the same Braemar Iron Formation was lodged during the quarter. When granted it will increase Carpentaria's regional tenement position over this iron formation.
Hughenden Coal Project
A Terms Sheet has been signed with ResCo Projects Pty Ltd (ResCo Projects). Carpentaria's wholly owned subsidiary, FTB (Qld) Pty Ltd, which holds the Hughenden Coal Project, will be vended into a new company formed by ResCo Projects to operate as a coal mining and exploration company. This new company will also hold other coal projects with Carpentaria having a 20% free carried interest to completion of a bankable feasibility study on any project held by the new company. A due diligence period is currently underway.
Lachlan Fold Belt Project
The Dirnaseer EL (7375) adjacent and west of the Combaning EL (6901) was granted during the quarter. Reconnaissance rock chip sampling at Combaning at the Mother Shipton and Hibernia prospects confirmed the gold potential, and a petrographic analysis of rocks from Mother Shipton has confirmed the potential for a gold-copper (Au-Cu) porphyry target with copper sulfides and gold identified in samples. Results included 21.3g/t Au from Hibernia and 6.13g/t Au from Mother Shipton.
Mt Agate
Approximately 10 km of induced polarisation (IP) was completed this quarter over the Mt Sheila and QMH prospects. A weak chargeability anomaly at QMH warrants further investigation and possible follow up drilling.
Euriowie
A total of 298 reconnaissance Niton, XL-3t, in-situ XRF micro-analyser (Niton) rock geochemical sites were analysed at three locations within the EL. A maxima of 0.5% Cu, 0.4% Zn & 0.3% Ni were returned from the Sundown prospect and a maxima of 0.11% Sn and 0.38% Ta returned from the Euriowie prospect.
FINANCIAL
Cash and deposits
A$2,817,274 as at 30 September 2009.
CORPORATE
Issued Capital
55,178,410 ordinary fully paid shares listed
12,321,590 ordinary fully paid shares unlisted (restricted)
21,447,415 options listed
6,000,00 options unlisted (restricted)
ACTIVITIES
During the quarter, Carpentaria's field activity was focussed on the Hawsons Iron Project, the Lachlan Fold Belt Project, Mt Agate and Euriowie.
PLANNED DECEMBER QUARTER EXPLORATION ACTIVITIES
The following exploration activities are planned for the December quarter:
Redan / Burta
Grain size and bond work index results are due from a bulk composite sample from recent drilling at the Hawsons Iron Project. Assays from a recently located historic hole into the flank of the Wonga Magnetic anomaly are also awaited. These results will be assessed and an ongoing exploration program planned. Rehabilitation work of previous drilling will be completed.
Lachlan Fold Belt Project
Further geochemical and geological mapping is planned to assist in defining gold and copper mineralisation for follow up drilling.
Euriowie
Niton and conventional geochemical sampling of tin and tantalum targets will commence. Geological field work will also be undertaken.
Mt Agate
Integration and modelling of IP data collected over the Mt Sheila and QMH prospects is underway.
Hughenden Coal Project
Progression of due diligence work and expected finalisation of legal contracts.
EXPLORATION
Iron Ore
Redan (earning 51%) / Burta (100%) - 2.5B to 4.5B Tonne Exploration Target Size(1) at Hawsons Iron Project Assessed by Independent Consultant
The Hawsons Iron Project is located 60km south west of Broken Hill and is hosted by the Neo-Proterozoic Braemer Iron Formation. Carpentaria has identified over 40km of strike length of the prospective host unit from magnetics and outcrop.
In early July, a total of 606m of Reverse Circulation drilling was carried out in three drill holes aimed at testing "magnetic unit 3" in the centre of a dominant magnetic feature known as the "core" anomaly to establish the presence, thickness, grade and quality of magnetite. The Core anomaly has a strike length of 2.5km of iron-formation comprising 5 units concealed by thin post mineral cover.
Drilling encountered a thick magnetite siltstone unit dipping approximately 45 degrees to the southwest in all holes. The Davis Tube Recovery (DTR) results confirm geological observations of the drill chips indicating that a thick zone of magnetite mineralisation has been discovered at the Hawsons Iron Project.
Best results from drilling for intervals carrying no internal waste are:
RC09BRP02: 115m (EOH) @ 18.0% DTR with a DTRG of 69.7%Including:RC09BRP02: 14m @ 21.86% DTR with a DTRG of 69.7% Fe from 163m 13m @ 20.33% DTR with a DTRG of 70.1% Fe from 183m
Note : DTRG is recovered concentrate grade
Unit 3 was intersected by drilling and represents one of five parallel units within the Hawsons Core anomaly identified in aeromagnetic data. Based on the drilling and modelling of the aeromagnetic data, it is interpreted by the Company that Unit 3 represents an exploration target(1) of:
200 -220 million tonnes at 18 -19% DTR with a DTRG of 69 -71% Fe to 250m
The other four magnetic units within the Hawsons Core anomaly have not been tested by drilling, but it is evident that there is a very large tonnage potential within these units and other large magnetic features identified in the project area. The magnetic data suggests that there is in excess of 40 strike kilometres of the magnetic horizon that is interpreted to be the iron formation. This data has been studied by H&S, and H&S suggests an exploration target(1) range of 2.5 to 4.5 billion tonnes at 18 % DTR with a concentrate grade of 69 -71% Fe to a depth of 250m over an estimated strike length of 42.8 to 46.4 km of magnetite siltstone in the project area (refer ASX Progress Report October 14th 2009).
Conceptual open cut mining of the magnetite siltstone due to the 45 degree dip is expected to be relatively straightforward and even with the overburden mining would result in an estimated waste to ore ratio of 1.6 : 1. As such, a potential mining operation would extract all + 18%DTR grade magnetite mineralisation to at least 250 metres depth with minimal waste.
These results are considered to be very encouraging and Carpentaria intends to undertake further exploration of the untested magnetic units within the Core anomaly and the other large magnetic features in the project area. Orientation engineering and metallurgical research is underway to investigate the economic opportunities presented by this new discovery.
Coal
Hughenden Coal Project - (Carpentaria 100%) Terms Sheet Signed with ResCo Projects Pty Ltd
During this quarter, negotiations were undertaken on the Hughenden Coal Project with several groups as a result of third party approaches for joint venture/acquisition. On 22nd September, a Terms Sheet was signed with ResCo Projects Pty Ltd (ResCo Projects). Carpentaria's wholly owned subsidiary, FTB (Qld) Pty Ltd, which holds the Hughenden Coal Project, will be vended into a new company formed by ResCo Projects to operate as a coal mining and exploration company. This company will also hold other coal projects, with Carpentaria having a 20% free carried interest to completion of a bankable feasibility study on any project in the new company. A due diligence period is currently underway.
This is considered to be a positive outcome for Carpentaria shareholders, as it not only reimburses Carpentaria for previous outlays on the project, but also increases Carpentaria's exposure to additional coal properties in the process of being secured by ResCo Projects. Further, Carpentaria will not be required to fund any additional expenditure on the Hughenden Project or other projects until the risk has been diminished by the completion of feasibility studies.
Gold Copper
Lachlan Fold Belt Project - (Carpentaria 100%) - Combaning EL 6901, Glen Isla EL 6246, Dirnaseer EL 7375: Work focused on defining gold targets(1) near previous producing mines.
During this quarter, a new 100%-owned EL - Dirnaseer (EL 7375) was granted giving Carpentaria control of 1,237 sq kms in the Lachlan Fold Belt, including approximately 30km of strike length of prospective Macquarie Arc rocks proximal to the major mineralising regional structure, the Gilmore Suture. Regionally, the Gilmore Suture is thought to control the location of the Gidginbung, Cowal and Adelong gold deposits and Macquarie Arc rocks host the Cadia, North Parkes and Cowal deposits.
Exploration over the Combaning licence included rock chip sampling at the Mother Shipton and Hibernia prospects, in addition to a small amount of regional rock chip sampling porphyry related mineralisation styles. Highlights of the rock chip results include peak gold values of 21.3g/t Au from Hibernia and 6.13g/t Au from Mother Shipton. A total of 21 rock chips were taken, and 6 samples returned greater than 0.50g/t Au with associated elevated copper. The Mother Shipton mines produced over 30,000oz of gold from hard rock and alluvial mining in the 1890s.
Petrographic analysis of rocks from Mother Shipton identified gold and copper and alteration styles similar to those observed in many Lachlan Fold Belt gold-copper porphyry systems such as Cadia. The results demonstrate that gold and copper sulfides (chalcopyrite + bornite) are associated with zoned potassic-propylitic-phyllic alteration of gabbroic rocks with multiple phases of metal deposition.
At Hibernia, rock chip samples were taken from historic workings and confirmed that high grade gold veins with mineralised halos occur within an albitised, quartz-sericite altered andesite. This result is encouraging, and surface exploration of the Hibernia-Wynd's trend will continue in an attempt to identify the most prospective zone along its 30km strike length.
Tantalum, Tin, Nickel, Copper
Euriowie - (Carpentaria owns rights to 100% of base and precious metals other than lithium) - Reconnaissance Niton results highlight two areas with elevated tantalum, tin, nickel and copper results.
EL 6936 is centred approximately 60 km to the north of Broken Hill and contains Paleo-Proterozoic Paragon and Sundown Group metasediments prospective for Broken Hill and Century/Mt Isa style base metal deposits. A large number of dyke like Proterozoic pegmatite bodies, prospective for tin and other strategic metals, also intrude the Paleoproterozic metasediments in the EL.
A total of 298 reconnaissance Niton sites were analysed at three locations within the EL, Sundown (238 sites), Byjerkerno (39 sites) and Mount Euriowie (21 sites).
At Sundown, Niton analyses were sited to investigate an area of veined metasediments with anomalous nickel, copper and zinc (Ni, Cu & Zn) associated with a major north-south high strain zone documented in the previous quarterly report. Maximum values of 0.5% Cu, 0.4% Zn & 0.3% Ni were returned from a modest sized area of approximately 200 metres x 50 metres surrounding the area from which anomalous results were reported in the previous quarter. Detailed geological mapping and rock chip sampling for confirmation by conventional laboratory analyses are in progress and will be reported in the December quarterly.
At Byjerkerno, limited Niton analyses were sited to investigate the weakly anomalous Pb & Zn geochemistry documented in the previous quarterly report. The results had an erratic spatial distribution and a maximum result of 570 ppm Zn. Further reconnaissance sample sites will be investigated in the December quarter to determine if the locality merits further investigation.
At Mount Euriowie, reconnaissance Niton analyses were made at a number of sites along a pegmatite body that was sporadically mined in the late nineteenth century for tin (Sn). The Niton returned a number of Sn and tantalum (Ta) anomalous results with maximum of 0.11% Sn and 0.38% Ta. Of the 22 sites investigated, half had reported Ta concentrations greater than 500ppm. Detailed geological mapping and further rock chip sampling for analysis via conventional laboratory methods is currently underway to assess the significance of the highly anomalous Niton Ta results which have not been previously reported at this location.
In addition to the reconnaissance Niton rock analyses, a total of 31 conventional laboratory analysed rock samples from a grid over the Trident Prospect following up a Li result of 0.96% obtained during 2008 work were also completed during the quarter. Results were modestly anomalous and are being evaluated to determine the potential for economic lithium mineralisation in the area.
Gold, Copper
Mt Agate - (100% CAP)
During the quarter, a 10 line km induced polarisation (IP) survey was completed over the Mt Sheila and QMH prospects. The results from Mt Sheila show a very weak surface anomaly coincident with the interpreted source of the magnetic anomaly.
Based on the amplitude of the IP anomaly and the geochemistry returned from rock-chips (refer December 2008 Quarterly Report), the potential at Mt Sheila has been downgraded.
At the QMH prospect, a moderate amplitude IP anomaly has been detected adjacent to, and south of, the magnetic source at a depth of approximately 60 metres below surface. The IP anomaly is stronger than that recorded at Mt Sheila. Evaluation of the data is continuing to determine the prospectivity of QMH.
(1) The potential quantity and grade of the exploration targets is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.
For the complete Carpentaria Quarterly Report For 30 September 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/61620-ASX-CAP-214916.pdf
About Carpentaria Resources Ltd
Carpentaria Resources Ltd (ASX:CAP) is focussed on delivering the best quality iron concentrates into the growing premium end of the iron ore market.
The Company aims to build a long term, low cost premium quality iron ore business from the development of its flagship asset, the Hawsons Iron Project, utilising existing infrastructure.
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