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Encouraging Exploration Results and Phase 1 Drill Programme, Toral Project, Spain
FERRUM CRESCENT LIMITED
(Incorporated and registered in Australia and registered as an external company in the Republic of South Africa)
(Registration number A.C.N. 097 532 137)
(External company registration number 2011/116305/10)
Share code on the ASX: FCR
Share code on AIM: FCR
Share code on the JSE: FCR
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2
23rd February 2017
Ferrum Crescent Limited
(“Ferrum Crescent”, the “Company” or the “Group”)(ASX, AIM, JSE: FCR)
Encouraging Exploration Results and Phase 1 Drill Programme, Toral Project, Spain
Ferrum Crescent, the ASX, AIM and JSE quoted metals developer, is pleased to announce
the results from its internal soil geochemistry and channel sampling at the Toral project,
Spain (the “Toral Project”). Detailed mapping, sampling and remodelling work carried out
over the last three months has yielded positive zinc results. The Company also announces
a limited, shallow diamond drilling programme to target mineralised zones within 200 metres
of the surface, which is expected to commence in Q2 2017.
Highlights:
- Results from 575 soil samples, 108 rock chip samples, 23 channel samples
- Channel sampling identifies various mineralisation styles near surface, including:
o 0.9m @ 10.5% Zn & 2.5% Pb average achieved on main structure within Adit
49
o 1.2% Cu, 6.5% Zn & 13.5% Pb returned from a 1.2m channel sample in Adit
54
- Soil sampling identifies distinct, continuous zinc-in-soil 2 kilometre anomaly,
approximately 150 metres wide, including peak zinc-in-soil values of 1.4% zinc
- New mineralising styles identified, associated with:
o Shear-related structural repetition and multiple structures sub-parallel to the
main shear
o Cross-cutting faults associated with soil anomalies and sulphide
mineralisation
o Various zones of alteration associated with soil anomalies, including
dolomitisation, calcitic and chloritic alteration and zones of hydrothermal
brecciation
- 13 hole drill programme plan generated to intersect shallow untested targets within
main anomalous area
Merlin Marr-Johnson, Ferrum Crescent’s Senior Project Manager, commented:
“These exploration results prompt a fresh view of the Toral Project. We have identified
mineralisation in multiple sub-vertical, sub-parallel planes and mineralisation associated with
cross-cutting faults, as well as several different styles of mineralisation. In addition, the
channel samples show good grades at surface and the soil anomalies are continuous and
high tenor. We have designed a compact Phase 1 drill programme at Toral, to intersect
shallow targets that are largely untested to date.”
Justin Tooth, Executive Chairman of Ferrum Crescent, commented:
“We have now undertaken a thorough review of the project and have tested certain
assumptions we have held on the project, allowing us to move ahead with a planned drilling
programme. The drilling campaign will be a major step forward in ascertaining the potential
for Toral to support a near-surface lead-zinc mining operation.”
For further information on the Company, please visit www.ferrumcrescent.com or contact:
Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and Company Secretary T: +61 8 9474 2995
UK enquiries:
Laurence Read (UK representative) T: +44 7557 672 432
Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler T: +44 (0)20 7409 3494
Beaufort Securities Limited (Broker)
Elliot Hance T: +44 (0)20 7382 8300
Bravura Capital (Pty) Ltd (JSE Sponsor)
Doné Hattingh T (direct): +27 11 459 5037
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014.
Work Programme Report
Introduction
Ferrum Crescent’s wholly owned Toral zinc-lead-silver permit is located near Ponferrada in
the west of the province of León, Autonomous Community of Castile and León, Spain,
approximately 400 kilometres northwest of Madrid. The recent work undertaken by the
Company has concentrated on the prospective area located vertically above the deep Toral
Deposit within the same licence, which is the subject of a foreign estimate for the purpose of
the ASX Listing Rules, comprising an NI 43-101 compliant Indicated foreign mineral
resource estimate of 4.04 Mt at 11.8 Pb + Zn (%) and Inferred foreign mineral resource
estimate of 4.67 Mt at 9.8 Pb+ Zn (%) (details of which are set out in the Company’s
announcement of 10 November 2016).
Recent work confirms areas of zinc-in-soil anomalism along 2 kilometres of strike extension
at the Toral Project, with an average width of around 150 metres. Topographic survey
completed with a high specification GPS enabled accurate positioning of old workings
(adits), identifying sub-parallel zones of mineralisation. Underground channel sampling
identified high grade mineralisation close to surface.
2016 / 2017 Work Programme
A work programme was designed for the Toral Project with the goal of establishing the
presence of mineralisation at surface and then defining the most prospective areas of
mineralisation on which to plan a targeted drill campaign. To this end, in-fill soil geochemistry
sampling, rock chip sampling, and channel sampling were carried out, as well as detailed
mapping. In total, recent work comprised 575 soil samples, 108 rock chip samples and 23
channel samples.
Soil and Rock Sampling Program
The soil survey was an in-fill survey, adding detail to a prior geochemical survey of 2,686
samples carried out in 2011 and 2012 on 100 metre spaced lines and 25 metre spaced
samples. The in-fill survey has resulted in 25 metre spaced lines and 25 metre spaced
samples, over an extension of 2,000 metres and a width of approximately 200 metres. The
sampling was designed to add detail to existing anomalies and extend the survey grid where
previous surveys did not reach background values.
Soil samples were collected in the field as 200 grams of minus 2 millimetre sieved soils, and
were sampled from a depth of 25 to 30 centimetres. Rock chip samples were taken when
soils were poorly developed or for specific mineralogical investigation.
Samples were pulverised and prepared at ALS Chemex in Spain, before being sent and
assayed for multi-element analysis using ME ICP 41 (35 element) analysis at ALS Chemex
in Ireland. Samples with over 1% of mineralisation were reassayed using ME OG46.
The location of Soil samples is shown in Figure 1 and Rock Chip samples are shown in
Figure 2.
Figure 1: Soil sampling locations, 2016-2017 (blue) and pre-existing samples (white)
Figure available on www.ferrumcrescent.com
Source: Ferrum Crescent
Figure 2: Rock chip sampling locations, 2016-2017 and historical locations
Figure available on www.ferrumcrescent.com
Source: Ferrum Crescent
Figure 3a: Zinc in soil values, all locations
Figure 3b: Lead in soil values, all locations
Figure available on www.ferrumcrescent.com
Source: Ferrum Crescent
Zinc values from the soil survey are shown in Figure 3a and lead values shown in Figure 3b.
Pink dots are above 924ppm zinc in Figure 3a and above 482ppm lead in Figure 3b.
The soil sampling programme identified an anomalous zone of approximately 2 kilometres
long and an average of 150 metres wide. The anomaly is not of uniform thickness, pinching
and swelling along its length, reaching 100 metres at its narrowest point, and regularly up to
200 metres wide. Geological mapping supports the interpretation that cross-cutting
structures and associated dolomitisation or silicification of the limestone, or quartz-vein
development, or a combination of the above coincide with the broadest and most intense
anomalous zones.
Some of the soil anomalies remain open across strike and a limited continuation of the
programme will be carried out to close off these anomalous areas. A summary of the lead
and zinc in soil results for recent work carried out at the Toral Project are described in
Appendix 1. Further information on the sampling methodology in according with the JORC
(2012) code can be found in Appendix 2.
Channel Sampling Program
During November and December 2016, Ferrum Crescent mapped the location of a number
of old adits and where access was possible entered, mapped, and took samples. The aim of
the channel sampling was to identify the presence of mineralised material in a near-surface
setting. With a rock saw, the Company cut a total of 15.75 metres of channel samples and
separated into 23 samples defined by geological features. The methodology was to make
two parallel cuts approximately 3 centimetres apart and then chiselled out to a depth of
approximately 2 centimetres perpendicular to the mineralised structure. Polythene sheets
were laid below the work face, and separate samples bagged up. Channel samples in Adit
49 were taken in three main areas: the mineralised zone, a fault zone and a sterile zone
beyond the fault zone.
Figure 4: Location of Adits and Old Workings
Figure available on www.ferrumcrescent.com
Source: Ferrum Crescent
Channel samples were mostly taken from Adit 49. This working is excavated on a silicified
shear within limestone, located close to a slate unit. Mineralisation is typical of ‘Rubiales’
style ore, with coarse-grained galena and sphalerite banded parallel to structure. The adit
has been stoped out to a maximum width of 5 metres, although the structure pinches locally
to a width of less than 1 metre. Care was taken to ensure sampling was done across
structure (Figure 5).
Figure 5: Plan of Adit 49 and sample locations
Figure available on www.ferrumcrescent.com
Source: Ferrum Crescent
Samples 1-12 were taken in the sterile zone to check for potential fine-grained
mineralisation. Samples 14, 15 and 16 were taken in the fault zone, and the results
demonstrate that cross-cutting faults also carry lead-zinc mineralisation. Samples 13, 17-21
were taken in the main mineralised zone. Within this main zone, samples 18 and 19 are two
sections of the same mineralised face, giving combined sample width of 1.45 metres.
The average grade of the mineralised portion of the shear accessible for sampling and
perpendicular to structure is 10.5% Zn and 2.5% Pb, with an average thickness of 0.9
metres. The fault zone averaged 2.8% Zn and 1.9% Pb. In the sterile zone the highest assay
results were 1.1% Zn in one sample, and 0.4% lead in a second. All assay results are
presented in the tables below, and the sample locations shown in Figure 5, Plan of Adit 49.
Table 1: Channel sample results from sterile zone (Samples 1-12)
Length Cu Pb Zn Ag
Trench_ID Sample_N From To (m) % % % ppm Comment
LM49_11 0.00 1.02 1.02 0.00 0.00 0.01 0 Sterile zone
LM49_10 1.02 1.57 0.55 0.01 0.00 0.01 0 Sterile zone
LM49_9 1.57 2.03 0.46 0.01 0.00 0.01 0 Sterile zone
LM49_8 2.03 2.43 0.40 0.00 0.00 0.01 0 Sterile zone
LM49_A
LM49_7 2.43 2.95 0.52 0.00 0.01 0.01 0 Sterile zone
LM49_1 2.95 3.92 0.97 0.00 0.01 0.01 0 Sterile zone
LM49_2 3.92 4.32 0.40 0.00 0.08 0.00 1 Sterile zone
LM49_3 4.32 4.95 0.63 0.01 0.04 0.03 1 Sterile zone
LM49_4 0.00 0.63 0.63 0.04 0.40 0.04 2 Sterile zone
LM49_B
LM49_5 0.63 1.15 0.52 0.03 0.34 0.05 2 Sterile zone
LM49_12 LM49_12 0.00 1.25 1.25 0.02 0.17 0.12 2 Sterile zone
LM49_6 LM49_6 0.00 0.25 0.25 0.01 0.09 0.07 1 Sterile zone
Table 2: Channel sample results from fault zone (samples 14-16)
Trench_ID From To Length m) Cu % Pb % Zn % Ag ppm Comment
LM49_14 0.00 0.55 0.55 0.04 1.15 2.03 9 Fault zone
LM49_15 0.00 0.68 0.68 0.08 1.85 1.44 15 Fault zone
LM49_16 0.00 0.90 0.90 0.05 2.65 4.96 20 Fault zone
Table 3: Channel sample results from main zone (samples 13 and 17-21)
Trench_ID From To Length (m) Cu % Pb % Zn % Ag ppm Comment
LM49_17 0.00 0.84 0.84 0.58 0.23 0.27 24 Main Zone
LM49_13 0.00 0.86 0.84 0.20 3.75 23.40 24 Main Zone
LM49_18 0.00 0.85 0.85 0.08 3.17 2.75 24 Main Zone
LM49_19 0.00 0.60 0.60 0.10 4.69 16.80 39 Main Zone
Combined 18 & 19 1.45 0.09 3.93 9.78 31 Combined
LM49_20 0.00 0.46 0.46 0.06 1.86 9.87 20 Main Zone
LM49_21 0.00 0.80 0.80 0.10 2.75 9.33 23 Main Zone
Average 0.88 0.21 2.50 10.53 25
Two additional channel samples were taken, from Adit 54. Sample LM54_23 from Adit 53 is
from an area exhibiting a previously undocumented mineralising style. The rock is comprised
of a hydrothermal breccia, with strong chloritic and calcite alteration. The channel sample is
1.17 metres in length and returned grades of 195ppm Ag, 1.16% Cu, 6.48% Zn and 13.45%
Pb.
Table 4: Channel sample results from Adit 54 (Samples 22 and 23)
Trench_ID From To Length (m) Cu % Pb % Zn % Ag ppm Comment
LM54_22 0.00 0.44 0.44 0.03 0.50 0.40 1 Main Zone
LM54_23 0.00 1.17 1.17 1.16 13.45 6.48 195 Main Zone
Work Programme Summary
The Board believes that the observations and results of work programme carried out by
Ferrum Crescent from October 2016 to January 2017, suggest the following:
- Measurable and anomalous mineralisation extends for at least two kilometres at the
Toral Project
- More than one mineralising horizon has been identified
- More than one mineralising style has been identified
- There is a structural control on the emplacement, thickness and paragenesis of the
mineralisation
- Transverse and cross-cutting faults may act as controlling factors on mineralising
fluids
2017 Drill Plan
Following receipt and interpretation of the positive mapping and sampling results, Ferrum
Crescent has drawn up a drill plan comprising thirteen holes off twelve drill platforms,
totalling 1,600 metres to 1,800 metres of diamond drilling. The primary drill targets are zones
of co-incident anomalies combining soil geochemistry, rock alteration, visible mineralisation
at surface or underground, and structurally favourable zones.
Using a GIS (geographic information system), Ferrum Crescent has compiled all the various
data streams into a three dimensional model. The proposed 2017 drilling campaign has
been based on the new understanding of the Toral Project and identification of new target
zones. Figure 6 shows the location of the proposed drill platforms. Drillholes are designed to
intersect multiple zones of mineralisation at depths from 50 metres to 200 metres below
surface. In order to facilitate access, all drill platforms are located on existing tracks and
roads.
Figure 6: Locations of proposed drill platforms
Figure available on www.ferrumcrescent.com
Source: Ferrum Crescent
Competent Persons Statement
The information in this report that relates to Exploration Results is based on information
compiled by Mr Juki Laurikko who is a Member of the European Federation of Geologists
which is a Recognised Professional Organisation for the purposes of the 2012 JORC Code.
Mr Laurikko is a Technical Consultant to the Company, and he has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which he is 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’. Mr Laurikko consents to the inclusion in the report of the matters based
on his information in the form and context in which it appears. Juki Laurikko has also
reviewed and approved the technical information in his capacity as a qualified person under
the AIM Rules.
APPENDIX 1: Soil, Rock and Channel Sample Descriptions
Anomaly Anomaly Trending No of Zn ppm Pb ppm Comments
Size Samples range range
New soil 2km NW-SE 575 new 94- 30-11,600 Broadly continuous high tenor NW-
samples 14,300 (1.2%) SE anomaly, significant width in
(1.4%) northern portion, highest grades in
SE portion
New n/a n/a 108 6-3,790 4ppm to Sampled at points of poor soil
rock chip (0.4%) 14.2% development or interest to assist
samples mapping
Channel Adit 49 NW-SE 21 47ppm to 29ppm to ‘Rubiales’ style mineralisation. High
samples 23.4% 4.7% grade in central portion (1m), poor
wall rock mineralisation development
Channel Adit 54 NW-SE 1 1.2% Cu, 13.5% Pb Distinctive hydrothermal breccia,
sample 6.5% Zn associated with chlorite,
carbonatisation and cross-cutting
structures
APPENDIX 2: Table 1 Appendix 5A ASX Listing Rules (JORC Code 2012)
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling - Nature and quality of sampling (eg cut - Systematic soil sampling was carried out on pre-defined
techniques channels, random chips, or specific grids. Infill sampling was generally conducted between
specialised industry standard lines of previous geochemical surveys on 25m spaced
lines with samples collected at 25m intervals, resulting
measurement tools appropriate to the
in a 25m x 25m grid over the main zones of interest.
minerals under investigation, such as Samples were taken from 30cm depth, where 200g of
down hole gamma sondes, or handheld minus 2mm sieved soils were bagged into zip-lock bags.
XRF instruments, etc). These examples - Rock chip samples were taken when soils were poorly
should not be taken as limiting the broad developed or for specific mineralogical investigation.
meaning of sampling. - The channel samples were taken in underground
workings using a rock saw, making two parallel cuts
- Include reference to measures taken to approximately 3cm apart to a depth of 2cm
ensure sample representivity and the perpendicular to the mineralised structure. The sample
was then extracted with a chisel.
appropriate calibration of any
- Sampling was supervised by a senior geologist and
measurement tools or systems used. conducted by trained field assistants and / or a junior
geologist. Field logs were maintained recording regolith
- Aspects of the determination of types, soil colour, slope direction, contamination,
mineralisation that are Material to the lithology etc. according to pre-defined sheets and
Public Report. legends.
- Sample locations were recorded using a handheld, high
- In cases where ‘industry standard’ work definition GPS, a GEOMAX Zenith 35 model.
has been done this would be relatively - Sample preparation was done at ALS Chemex in Spain
simple (eg ‘reverse circulation drilling and assayed by ALS Chemex , Ireland for multi-element
analysis, ME ICP 41 (35 element). Samples with over 1%
was used to obtain 1 m samples from
which 3 kg was pulverised to produce a of mineralisation were reassayed using ME OG46.
30 g charge for fire assay’). In other
cases more explanation may be - Soil samples were bagged in identical bags with
manufactured demarcated lines. Each sample of minus
required, such as where there is coarse
2mm soils were filled to a specific height to produce
gold that has inherent sampling approximately a 200g of sample.
problems. Unusual commodities or
mineralisation types (eg submarine - Rock chip and Channel samples were bagged in
nodules) may warrant disclosure of identical bags. Each sample bag was filled to roughly
detailed information. the same level, to give a sample weight of
approximately 2kg per sample.
Drilling - Drill type (eg core, reverse circulation, - Not applicable – no drilling carried out and no drilling
techniques open-hole hammer, rotary air blast, results reported.
auger, Bangka, sonic, etc) and details
(eg core diameter, triple or standard
tube, depth of diamond tails, face-
sampling bit or other type, whether core
is oriented and if so, by what method,
etc).
Drill sample - Method of recording and assessing core - Not applicable – no drilling carried out and no drilling
recovery and chip sample recoveries and results results reported.
assessed.
- Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
- Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to
preferential loss/gain of fine/coarse
material.
Logging - Whether core and chip samples have - Hand written field sampling logs at all sample points
been geologically and geotechnically were digitally entered into Excel sheet according to a
logged to a level of detail to support pre-defined template (Ferrum Crescent exploration
database).
appropriate Mineral Resource
estimation, mining studies and - No Mineral Resource Estimation was carried out during
metallurgical studies. this work programme.
- Whether logging is qualitative or - Qualitative logging was carried out regarding colour,
quantitative in nature. Core (or costean, grain size, weathering, regolith, lithology, alteration
channel, etc) photography. type and sulphide mineralogy.
- The total length and percentage of the
relevant intersections logged.
Sub- - If core, whether cut or sawn and - No sub-samples were taken.
sampling whether quarter, half or all core taken.
techniques
and sample - If non-core, whether riffled, tube
preparation sampled, rotary split, etc and whether
sampled wet or dry.
- For all sample types, the nature, quality
and appropriateness of the sample
preparation technique.
- Quality control procedures adopted for
all sub-sampling stages to maximise
representivity of samples.
- Measures taken to ensure that the
sampling is representative of the in situ
material collected, including for instance
results for field duplicate/second-half
sampling.
- Whether sample sizes are appropriate to
the grain size of the material being
sampled.
Quality of - The nature, quality and appropriateness - Results in this release are from selected samples from
assay data of the assaying and laboratory the soil, rock chip and channel sampling program,
and procedures used and whether the which is all part of an early stage exploration
laboratory technique is considered partial or total. evaluation of the Toral project. The aim of the work
tests programme was to establish the presence of
- For geophysical tools, spectrometers, mineralisation.
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make and - Samples were pulverised and prepared at ALS Chemex
model, reading times, calibrations in Spain before being sent and assayed for multi-
factors applied and their derivation, etc. element analysis using ME ICP 41 (35 element) analysis
at ALS Chemex in Ireland. ME-ICP41 is a trace level
- Nature of quality control procedures
method by Aqua Regia and is considered an
adopted (eg standards, blanks,
economical tools for first pass exploration
duplicates, external laboratory checks)
geochemistry. Data reported from an aqua regia
and whether acceptable levels of
digestion should be considered as representing only
accuracy (ie lack of bias) and precision
the leachable portion of the particular analyte.
have been established.
- Samples with over 1% of mineralisation were
automatically reassayed using ME OG46 which is a
similar aqua regia analysis calibrated for higher grades.
- The work methods, sampling procedure and handling of
exploration results have been reviewed by Competent
Person, Juki Laurikko.
- No blanks and standards or external laboratory checks
have been carried out at this stage as the program is
aiming to determine the presence / absence of
mineralisation.
- Ferrum Crescent is reviewing duplicate samples and
standards protocols.
- No external laboratory checks have been carried out at
this stage as the program is aiming to determine the
presence / absence of mineralisation.
Verification - The verification of significant - Juki Laurikko, Competent Person, and Merlin Marr-
of sampling intersections by either independent or Johnson, Project Manager reviewed sampling
and alternative company personnel. procedure
assaying
- The use of twinned holes.
- Primary data was collected using a supplied set of
- Documentation of primary data, data
standard digital templates prepared by Ferrum
entry procedures, data verification, data
Crescent.
storage (physical and electronic)
protocols.
- The field data is compiled, validated, stored and
- Discuss any adjustment to assay data.
loaded by Ferrum Crescent
- No adjustment to assay data has been carried out.
Location of - Accuracy and quality of surveys used to - Sample locations were recorded using a handheld,
data points locate drill holes (collar and down-hole high definition GPS, GEOMAX Zenith 35. This gives
surveys), trenches, mine workings and centimetric accuracy.
other locations used in Mineral Resource
estimation.
- Co-ordinates are presented in ETRS89 Zone 29.
- Specification of the grid system used.
- Quality and adequacy of topographic
control.
Data - Data spacing for reporting of Exploration - Data spacing for the geochemistry was controlled by
spacing and Results. the pre-existing geochemical dataset and the decision
distribution to carry out infill sampling over 2km.
- Whether the data spacing and - Data spacing for the channel sampling was controlled
distribution is sufficient to establish the by the presence of old adits, and representative
degree of geological and grade sampling was carried out in these adits.
continuity appropriate for the Mineral - This is deemed adequate for the goals of establishing
Resource and Ore Reserve estimation the presence of mineralisation in the target area
procedure(s) and classifications applied.
- No sample compositing has been applied.
- Whether sample compositing has been
applied.
Orientation - Whether the orientation of sampling - All samples have been included for transparency.
of data in achieves unbiased sampling of possible - Only channel samples taken perpendicular to the
relation to structures and the extent to which this is structure have been quoted as representing thickness
of the structure.
geological known, considering the deposit type.
structure
- If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to
have introduced a sampling bias, this
should be assessed and reported if
material.
Sample - The measures taken to ensure sample - All samples were logged and checked on return from
security security. the field, and samples were stored in secured camp
buildings or area before being dispatched to the
laboratory using a logistics company and managed with
a chain of custody.
Audits or - The results of any audits or reviews of - No audits or reviews have been carried out at this
sampling techniques and data. stage.
reviews
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement - Type, reference name/number, location and - The Toral zinc-lead permit is located near
and land tenure ownership including agreements or material Ponferrada in the west of the province of
status issues with third parties such as joint León, Autonomous Community of Castile
ventures, partnerships, overriding royalties, and León, Spain approximately 400 km
native title interests, historical sites, northwest of Madrid.
wilderness or national park and - The project is a licence covering 20 km2.
environmental settings. - There are no known impediments to the
licence security.
- The security of the tenure held at the time of
reporting along with any known impediments
to obtaining a licence to operate in the area.
Exploration done by - Acknowledgment and appraisal of - Between 1975 and 1985, the
other parties exploration by other parties. Adaro/Peñarroya joint venture carried out
exploration on the four separate licences
which now correspond, approximately, to
the Toral permit area. Over a period of
nine years, a topographical survey,
geological mapping, a hydrogeological
study and more than 40,000m of diamond
drilling (62 holes and 41 wedges) were
carried out.
- Lundin Mining S.L. (Lundin) acquired the
Toral investigation permit no. 15.199 in
2007 and commenced exploration in April
2007. Lundin compiled the information
collected by the previous licence holders
including: o a review of the available
geological maps, plans, sections and assays;
o surveying old workings, old drill pads, and
drill hole locations; and, a study of the
existing Peñarroya/Adaro drill holes,
description, photography. In addition,
samples of drill core were sent to ALS
Chemex in Canada in order to validate the
reliability of the existing assays and
exploration information was digitised. The
results of Lundin’s preliminary work
confirmed the mineral potential of the Toral
area. However, it was apparent that the
continuity and the thickness of the
mineralisation were insufficiently detailed.
Consequently, an exploration programme
was designed to add information to the
data set for a better understanding of the
deposit. In 2007 to 2009, seven diamond
holes for a total of 4,523.7m were drilled for
the purpose of confirming the continuity of
the mineralisation in the San Jose area of
the Toral permit and also to test the
possibility of an extension of the
mineralisation in depth (see section 6
below).
- GoldQuest acquired the Toral permit from
Lundin Mining, in January 2010.
- During 2011 and 2012, GoldQuest
conducted systematic geological mapping
and soil sampling.
Geology - Deposit type, geological setting and style of - The Toral permit is located in the West
mineralisation. Asturian Leonese Zone (WALZ), one of the
tectonostratigraphic units in the Variscan
(or Hercynian) Orogen of the north-
western portion of the Iberian Peninsula.
Within the WALZ, the permit area is
located in the domain of the Mondoñedo
Mantle. The most significant mineralisation
is found in the upper carbonate layers of
the Vegadeo Formation, at the contact
between the Vegadeo Formation and the
younger Los Cabos Series. The
mineralisation comprises sulphides
interbedded in limestones and dolomites,
within a silicified facies, and in chloritic
breccias. The mineralisation is epigenetic
and formed during a metamorphic episode
within the Hercynian Orogeny. The
sulphide mineral assemblage comprises
sphalerite, galena, pyrite and chalcopyrite.
- Drill hole - A summary of all information material to the - Not applicable – no drilling carried out and
Information understanding of the exploration results no drilling results reported.
including a tabulation of the following
information for all Material drill holes:
- easting and northing of the drill hole collar
- elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
- dip and azimuth of the hole
- down hole length and interception depth
- hole length.
- If the exclusion of this information is justified
on the basis that the information is not
Material and this exclusion does not detract
from the understanding of the report, the
Competent Person should clearly explain
why this is the case.
- Data - In reporting Exploration Results, weighting - The channel samples taken perpendicular to
aggregation averaging techniques, maximum and/or structure in Adit 49 were all short lengths,
methods minimum grade truncations (eg cutting of and a straight average was taken for width
high grades) and cut-off grades are usually and grade.
Material and should be stated.
- Where aggregate intercepts incorporate
short lengths of high grade results and longer
lengths of low grade results, the procedure
used for such aggregation should be stated
and some typical examples of such
aggregations should be shown in detail.
- The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
- Relationship - These relationships are particularly - Not applicable – no drilling carried out and
between important in the reporting of Exploration no drilling results reported.
mineralisation Results.
widths and - If the geometry of the mineralisation with
intercept respect to the drill hole angle is known, its
lengths nature should be reported.
- If it is not known and only the down hole
lengths are reported, there should be a clear
statement to this effect (eg ‘down hole
length, true width not known’).
- Diagrams - Appropriate maps and sections (with scales) - A location plan of the proposed drill
and tabulations of intercepts should be programme is included.
included for any significant discovery being
reported These should include, but not be
limited to a plan view of drill hole collar
locations and appropriate sectional views.
- Balanced - Where comprehensive reporting of all - It is the opinion of the Company and of the
reporting Exploration Results is not practicable, Competent Person that the information
representative reporting of both low and reported here is fair and factual.
high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
- Other - Other exploration data, if meaningful and - It is the opinion of the Company and of the
substantive material, should be reported including (but Competent Person that the observations,
exploration not limited to): geological observations; conclusions, and summary of the work
data geophysical survey results; geochemical programme included in this report is
survey results; bulk samples – size and appropriate and fair.
method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
substances.
- Further work - The nature and scale of planned further work - A proposed 13 hole drill progamme is
(eg tests for lateral extensions or depth discussed in the report, with a plan of
extensions or large-scale step-out drilling). platform locations.
- Diagrams clearly highlighting the areas of - Ongoing mapping and sampling is
possible extensions, including the main mentioned in the report.
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
Date: 23/02/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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