Carpentaria Exploration Limited (ASX:CAP) Quarterly Report For The Period Ended 31 December 2009
Brisbane, Jan 28, 2010 AEST (ABN Newswire) - Carpentaria Exploration Limited (
ASX:CAP) is pleased to provide Quarterly Activities Report for the period ended 31 December 2009.
EXPLORATION - SUMMARY
HAWSONS IRON PROJECT
This quarter, further DTR analyses and magnetic modelling resulted in an increase of the exploration target(1) to 3.5 to 5.8 billion tonnes at 18 - 20% magnetite DTR and a premium concentrate grade of 69 -71% Fe with insignificant contaminants. Importantly, the increase is entirely within EL7208 which is 100% owned by Carpentaria. This increase follows Hellman and Schofield's independent assessment of the magnetite tonnage potential of an exploration target(1) in the range of 2.5 billion tonnes to 4.5 billion tonnes with an 18% Davis Tube Recovery (DTR) and a concentrate grade of 69 - 71% iron.
Preliminary engineering studies are favourable, highlighting:
- Ideal project location close to infrastructure
- Low conceptual mining strip ratio
- Enormous tonnage potential
- Likely soft, easy to grind ore
- High quality magnetite concentrate
- Potential for significant financial return under various scenarios including blast furnace and/or direct reduction pellet production at Broken Hill.
EURIOWIE
Results from recent geological mapping and rock chip sampling at the Mt Euriowie Prospect have been very encouraging. Over 75 rock chip samples from the Mt Euriowie Prospect were assayed for tin following the discovery of large grains of cassiterite (79% tin metal), at surface along the entire 1,400 metre strike length of pegmatite. Ten traverses consisting of several one metre continuous rock chip samples were taken across the outcropping pegmatite.
Highlight results included:
- 8m @ 0.44% Sn (tin) including 1m @ 1.21% Sn
- 6m @ 0.36% Sn including 1m @ 1.60% Sn
Four additional pegmatite veins have been mapped that may also have Tin potential.
The tenement holders of the Euriowie EL held a 1% net smelter royalty over any metal mined from the tenements. However, because of the significance of this discovery, Carpentaria has now purchased 100% rights to this tenement thereby removing this potential impost.
HUGHENDEN COAL
The due diligence by The Charmen(1) Pty Ltd is nearing completion and the agreement is expected to be formalized in February 2010. In the December quarter, Native Title agreements with the Ngawun Mibara People and the Yirendali People were reached over the FTB applications.
SUBSEQUENT EVENTS
In January 2010 Carpentaria signed an agreement with gold producer Ramelius Resources Limited (ASX Code: RMS) to farm-in on Carpentaria's 100% owned Glen Isla Project, located near Dubbo, New South Wales. ASX announcement made 27th January 2010.
Under the Agreement, Ramelius Resources needs to spend A$1 million to gain a 51% stake in Glen Isla, with a minimum required expenditure of A$100,000 before they can withdraw from the Project. Should exploration at Glen Isla lead to the decision to proceed to a bankable feasibility study (BFS), Ramelius will manage and fund the BFS to earn a 75% interest in the project. On completion of the BFS Carpentaria will have a right to participate and thus have a 25% interest in any mining project.
PLANNED EXPLORATION ACTIVITIES MARCH QUARTER 2010
HAWSONS IRON PROJECT
Metallurgical and engineering studies will continue. A detailed ground magnetic survey will be conducted to provide key data to assist with follow up drilling. A Surface Disturbance Notice for approval by the NSW Government will be submitted with the objective to allow the proposed drilling to commence in March / April. This drilling program is designed to test high priority iron targets and define a resource on the most prospective target.
EURIOWIE
A drilling plan is being defined to test the Euriowie tin bearing pegmatite and establish the continuity of the cassiterite mineralization at depth along the exposed 1,400m strike length.
HUGHENDEN
A transfer of management rights is anticipated in early February. Drill targets are currently being defined and initial drilling will be undertaken when full access is achievable. This is dependent upon weather and full grant of the applications which will be expedited due to the successful completion of the Native Title negotiations.
GLEN ISLA
As managers will conduct the next phase of exploration on behalf of the Joint Venture, which will comprise a detailed induced polarisation (IP) survey to identify targets for follow up drilling. A 3D MIMDAS survey is expected to commence in March depending on access approvals and availability of crews..
BUSINESS DEVELOPMENT
Additional Joint ventures will be finalized in the March Quarter with partners that aim to carry out considerable exploration work to earn project interests. This will allow Carpentaria to focus on its high priority projects near Broken Hill and in central NSW.
During this quarter, Carpentaria has been in negotiation with other parties with a view to farming out various projects. This will allow Carpentaria to focus on the Broken Hill iron and tin discoveries and its Combaning (Lachlan Fold Belt) gold project. Incoming parties will be undertaking substantial work to enhance the projects and providing Carpentaria exposure to future exploration success with a retained interest. It is expected that these arrangements will be finalized this coming quarter.
(1) The term "Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.
For the complete Carpentaria Exploration Quarterly Report for the period ended 31 December 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/62167-ASX-CAP-217741.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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