Macarthur Minerals Ltd (TSXV:MMS) (the “Company” or “Macarthur”) is pleased to provide an update to Shareholders outlining an active second quarter 2018 in the ongoing development of the Company’s iron ore projects and exploration activities across the lithium, gold and nickel/cobalt projects in Western Australia and Nevada, USA.
SECOND QUARTER HIGHLIGHTS
- A SkyTEM Geophysical Survey was conducted at the Hillside Gold Project in the Pilbara. The preliminary results of the survey were successful and identified extensive interpreted bedrock conductors including isolated discrete bedrock conductors over a strike length of 30km. Further interpretation is currently in progress.
- Moving Loop Electromagnetic and Fixed Loop Electromagnetic surveys were conducted over several Nickel/Cobalt targets at Lake Giles in the Yilgarn region. Preliminary results have identified two strong conductors at the Moonshine North and two bedrock conductors at Snark. Further interpretation of the survey is currently in progress.
- Three new iron ore exploration areas were applied for in the Yilgarn region, adding an additional 113 km2 to the Company’s portfolio. Two of these tenements are adjacent to the Mt Jackson and Deception iron ore deposits of Cleveland-Cliffs Inc. The third area is located 35 km west of Macarthur’s Ularring Hematite Project.
- The cessation of mining in June 2018 by Cleveland-Cliffs’ Asia Pacific Iron Ore operations in the Yilgarn region opens up the opportunity for rail and port capacity to support the commercialization of the Company’s advanced iron ore projects.
- Re-assay of three previously drilled holes has identified wide intersections of anomalous nickel (up to 0.2% Ni) at the Clark Hill prospect at Lake Giles.
- A soil sampling program at the Bonnie Scot project identified an area of anomalous gold. Further stream sediment sampling by Macarthur and Artemis Resources Limited (“Artemis”) at the Panorama Project commenced this week across areas that were previously not sampled.
- The Company has been advancing discussions with an interested party to take forward exploration for lithium across the Company’s extensive ~1,300 km2 portfolio in the Pilbara.
- The Company has been advancing discussions with an experienced lithium partner to further explore the Company’s Reynold Springs Project in the Railroad Valley, Nevada.
Mr. Cameron McCall, Executive Chairman of Macarthur Minerals commented: “This has been a very active quarter for the Company. Cleveland-Cliffs Inc’s announcement of the cessation of mining of their Asia Pacific Iron Ore operation places Macarthur in a strong position to exploit the mining, logistics and export infrastructure capacity that may become available in the Yilgarn region of Western Australia.
A plan is underway to extend the hematite resource base and mine life by including the Moonshine Magnetite Project. The Company has commissioned London based research firm, Hallgarten & Company to undertake an internal business investigation plan for consideration by financiers.
The potential rail and port capacity in this region makes Macarthur’s historic ~A$61million investment in resource definition, environmental assessment, metallurgical, economic studies and permitting of the hematite and magnetite iron ore projects very valuable. Macarthur has been holding on to these projects waiting for a stabilisation of the iron ore commodity pricing and an upswing in major mining investment sentiment.
We are excited by the results of recent geophysics undertaken at the Hillside Gold and the Lake Giles Nickel projects. The conductors show strong signal strength and typically correspond with anomalous surface geochemistry. Following the completion of the full interpretation, ground mapping of geophysical targets will be completed to support a scout drilling program in Q3/Q4 2018.”
GOLD
Hillside Gold Project
The Hillside Gold Project in the Pilbara covers an area of ~ 400 km2, of greenstone lithologies highly prospective for gold and copper mineralisation. Historical gold mining has occurred within the tenement area with recent activity by prospectors recovering over 700 ounces of gold nuggets. Historical rock chip sampling on the Hillside Gold Project has returned results up to 55 grams per tonne gold and 7.8% copper (Figure 1). A rock chip from a recent reconnaissance visit with Artemis to the Hillside Gold Project returned 8.5 grams per tonne gold.
In late May, an Airborne Electromagnetic survey was flown over the Hillside Gold Project over two areas. The aim of the survey was to define high priority targets from conductors such as clusters of massive sulphide hosted base metal deposits at depth. The survey was conducted using the SkyTEM system with 150m spaced lines. In total the system flew 846 line-kilometers covering approximately 125 km2. The survey was successful and identified numerous interpreted bedrock conductors including isolated discrete bedrock conductors that correlates with historical gold workings, magnetic anomalies and fault systems. Final interpretation reports are scheduled to be completed end of July 2018 with subsequent field mapping to define drill targets. See preliminary results in Figure 2.
Panorama and Bonnie Scot Gold Projects
As previously announced, Artemis is to earn-in up to 80% interest in the Panorama Project, located in the Pilbara region of Western Australia. The project consists of two tenements E45/4779 and E45/4732 covering a total of 265 km2. The Panorama Project sits adjacent to Macarthur’s Bonnie Scot Project on tenement E45/4764. GSWA geological mapping shows extensive outcrops of Mt Roe Basalts and Hardey Formation across both projects which are prospective for conglomerate hosted gold (Figure 3).
Phase one stream sediment sampling has been completed at the Panorama and Bonnie Scot Projects with anomalous gold identified at the Bonnie Scot Project. Artemis has mobilised a field crew to site to undertake a follow up sampling program across a more extensive area.
NICKEL AND COBALT
Exploration for nickel and cobalt at Lake Giles, in the Yilgarn region (as announced on March 5, 2018), moved to the next stage of exploration by completing Moving Loop Electromagnetic (“MLEM”) and Fixed-Loop Electromagnetic (“FLEM”) surveys across three prospect areas: Moonshine, Snark and Clark Hill (Figure 4). The program targeted areas where elevated nickel has been identified in surface geochemical sampling and intersected by drilling.
Preliminary interpretation of the MLEM and FLEM survey identified two distinct bedrock conductors at Moonshine and two bedrock conductors at Snark. Further interpretation is underway. The widespread Nickel, …read more
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