Wrap Text
Lead-Zinc Drill Programme Assay Results - 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
7 September 2017
Ferrum Crescent Limited
(“FCR” or the “Company”)(ASX, AIM, JSE: FCR)
Lead-Zinc Drill Programme Assay Results - Toral Project, Spain
FCR, the lead-zinc exploration company, is pleased to announce the assay results from its
recent 6 hole - 1,046.9 metres exploration drill programme at its wholly owned Toral Project,
located in the province of Leon, Spain, which has returned a series of high-grade lead-zinc
intersections. The drilling campaign was designed to determine the presence of lead-zinc in
an area that is approximately three hundred metres above the deep Toral Deposit, which was
historically explored by third parties, and 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 (further details of which were set out in the Company’s announcement of
10 November 2016).
These new drilling results confirm lead-zinc intersections in all six holes, as previously reported
from visual inspection in the Company’s announcement of 28 July 2017, with significant high
grade lead-zinc intersections in three of the six holes.
Highlights
- All of the 1,046.9m drilled occurred within 200 metres of the surface.
- Intersection of lead-zinc anomalies in all six drill holes.
- Key intersections encountered (all widths given along the core):
- Hole TOR17009 1 metre grading at 1.22%Pb, 9.77%Zn (10.99% combined Pb/Zn);
- Hole TOR17012 3 metres grading at 0.64%Pb, 6.46%Zn (7.10% combined Pb/Zn);
- Hole TOR17012 1 metre grading at 0.67%Pb, 16.10%Zn (16.77% combined Pb/Zn);
- Hole TOR17013 1 metre grading at 6.51%Pb, 6.50%Zn (13.01% combined Pb/Zn); and
- Hole TOR17013 3 metres grading at 6.03%Pb, 5.49%Zn (11.52% combined Pb/Zn).
Intended further exploration activities
- Incorporate all of the new assay data into the Company’s geological model so as to
integrate the lead-zinc mineralisation found towards the surface of the deposit.
- Develop and execute the second phase drilling campaign to corroborate the high grade
lead-zinc results from historic drilling.
- Aim to define a JORC (2012) compliant resource estimate based on the updated, revised
geological model combined with the 44 kilometres of historic drilling performed by third
parties, for relatively limited expenditure.
Drilling Programme
- As reported in the Company’s announcement of 28 July 2017, a drilling campaign of six
holes drilled across various elevations was recently conducted at the Toral Project. A total
of 1,046.9 metres was drilled.
- Refer to Appendix A for further information.
Drilling results
- Drillholes labelled TOR17009, 17012 and 17013 returned the highest assay results. The
significant intercepts are set out in Appendix B.
- Drillholes labelled TOR17008, 17010 and 17011 also intersected lead-zinc but no
significant grades (above 5% combined) were detected.
- Refer to Appendix B for further information (note that all measurements are given along the
core).
Justin Tooth, Executive Chairman of FCR, said:
“These assay results, showing high-grade ore intersections of combined lead-zinc including
grades above 10% within 200 metres of surface, are a most positive outcome for the
Company. The assays significantly add to our earlier modelling on Toral by identifying lead-
zinc mineralisation in a near-surface zone that is approximately three hundred metres above
the historically explored Toral Deposit. The Toral Deposit 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, details of which were set out in the Company’s announcement of 10
November 2016. Our initial objective was to determine the presence of lead-zinc towards the
surface in order to progress our new geological model; however, these strong results may
open up other avenues for the project’s development. The highest grade intersections (shown
in the drilling results set out in Appendix B) of up to 16.1% zinc and up to 18.4% combined
lead-zinc are highly supportive of our exploration programme.
“FCR will now utilise these latest results and the extensive database from the 44 kilometres of
historic drilling in order to enhance its understanding of the geology of the Toral Project and
refine its intended further exploration activities. This should enable the Company to work
towards defining a JORC 2012 compliant resource estimate, in order to ascertain and evaluate
the real potential for future mining at Toral, against the current backdrop of a strong zinc
market.”
Competent person’s statement
The information in this announcement 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 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 this
announcement of the matters based on his information in the form and context in which they
appear. Mr Laurikko has also reviewed and approved the technical information in his capacity
as a qualified person under the AIM Rules.
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)
Melanie De Nysschen
T (direct): +27 11 459 5052
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.
Appendix A: Table 1 Appendix 5A ASX Listing Rules (JORC Code)
Section 1: Sampling Techniques and Data, Toral Project
Section 1: Sampling Techniques and Data, Diamond Drilling, Toral Project
Criteria Explanation Comments
Sampling
Nature and quality of sampling
techniques Diamond drilling
(e.g. cut channels, random chips,
or specific specialised industry
standard measurement tools
appropriate to the minerals
under investigation, such as
down hole gamma sondes, or
handheld XRF instruments, etc.).
These examples should not be
taken as limiting the broad
meaning of sampling.
Include reference to measures
Spacing variable due to location of existing access roads and suitable terrain.
taken to ensure sample
representivity and the
appropriate calibration of any
measurement tools or systems
used.
Aspects of the determination of
mineralisation that are Material Drill hole locations were set out with high definition GPS,
to the Public Report. In cases GEOMAX Zenith 35.
where
‘industry standard’ work has Drill core was split in half and 1 metre samples, or shorter due
been done this would be relatively to lithological contacts, were packed and labelled into plastic
simple (e.g. ‘reverse circulation bags.
drilling
was used to obtain 1 m samples Sample preparation was done at ALS Chemex in Spain and assayed for multi-
from which 3 kg was pulverised element analysis, ME ICP 41 (35 element). Samples with over 1% of mineralisation
to produce a 30 g charge for fire were re-assayed using ME OG46.
assay’). In other cases more
explanation may be required,
such as where there is coarse
gold that has inherent sampling
problems. Unusual commodities
or mineralisation types (e.g.
submarine nodules) may
warrant disclosure of detailed
information.
Drilling Drill type (e.g. core, reverse
techniques circulation, open?hole hammer, Diamond drilling was conducted using a wireline rig, mounted on a crawler. Drill bit
rotary air blast, auger, Bangka, sizes PQ and PQ3 were used and when the hole was expected to intersect
sonic, etc.) and details (e.g. core mineralised zone, the core was recovered with a triple core barrel.
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
recovery
Method of recording and
Drill core was assembled in the core boxes and the real length of the drill run was
assessing core and chip sample
measured with measuring tape to be able to calculate the core recovery.
recoveries and results assessed.
Measures taken to
Use of triple core barrel when intersecting expected mineralised zones.
maximize 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 Not applicable at this stage
preferential loss/gain of
fine/coarse material.
Logging Whether core and chip samples
have been geologically and
geotechnically logged to a level of Drill logs digitally entered into the Company´s standard templates.
detail to support appropriate Logging is of sufficient quality to support Mineral resource estimation, however at
Mineral Resource estimation, this stage (Company´s first six drill holes comprising 1,046m) the
lithological/alteration and mineralogical features assisting modelling of the Mineral
mining studies and metallurgical
Resource are yet to be determined.
studies.
Whether logging is qualitative or
quantitative in nature. Core (or Quantitative logging of colour, grain size, weathering, structural fabric, lithology,
costean, channel, etc.) alteration type and sulfide mineralisation documented.
photography
The total length and percentage of
the relevant intersections logged. All drill holes are logged using visual inspection. Information captured on paper
sheets and entered into company´s logging template.
Sub- If core, whether cut or sawn and
sampling whether quarter, half or all core Mineralised zones of the core are split; one half core is sent for assaying and the
techniques taken. second is stored in the core box as a reference.
and sample
preparation
If non-core, whether riffled, tube
sampled, rotary split, etc. and Not applicable as entire sample is core.
whether sampled wet or dry.
For all sample types, the nature, Sample preparation was done at ALS Chemex in Spain, using standard preparation
quality and appropriateness of the technique suitable for multi-element analysis, ME ICP 41 (35 element). Samples
sample preparation technique. with over 1% of ore grade were re-assayed using ME OG46.
Quality control procedures
adopted for all sub-sampling Standard, blanks, field samples and repeats (using also coarse split and pulp reject)
stages to maximise representivity were inserted into the sample stream.
of samples.
Measures taken to ensure that the Field duplicate (quarter core) samples were collected at 2 in 100 samples,
sampling is representative of the inas a rotating blank, standard, field duplicate and repeat sequence.
situ material collected, including
for instance results for field
duplicate/second?half sampling.
Whether sample sizes are
appropriate to the grain size of the Samples are of 1 metre length or smaller (lithological contacts) or a quarter core
material being sampled. (field sample). Grain size of all samples are from medium to fine-grained.
Quality of The nature, quality and
assay data appropriateness of the assaying Assays were carried out by ALS Chemex in Spain, using standard preparation
and and laboratory procedures used techniques suitable for multi-element analysis, ME ICP 41 (35 element). Samples
laboratory and whether the technique is with over 1% of ore grade were re-assayed using ME OG46.
tests considered partial or total.
For geophysical tools, Not applicable as no geophysical tools were used in this programme.
spectrometers, handheld XRF
instruments, etc., the parameters
used in determining the analysis
including instrument make and
model, reading times, calibrations
factors applied and their
derivation, etc.
Nature of quality control procedures The Company uses certified reference materials (CRM) and field duplicates in its
adopted (e.g. standards, blanks, QA/QC procedures. CRMs are sourced from
duplicates, external laboratory Labmix24 and 6 standards were inserted every 15 samples. Field Duplicate samples
checks) and whether acceptable were taken at a nominal frequency of 2 in 100 samples. QA/QC also includes regularly
levels of accuracy (i.e. lack of bias) inserted Pulp Blanks, 2 Coarse Blanks, 2 Pulp Repeats and 2 Coarse Repeats in every
100 samples. No samples. No samples sent yet to external laboratory.
and precision have been No bias has been observed and accuracy/precision is believed to be acceptable for
established. quoting Exploration Results.
Verification The verification of significant
of sampling intersections by either independent
and or alternative company personnel. No such verification conducted in respect of this announcement.
assaying
The use of twinned holes. No twinned holes.
Documentation of primary data, Primary data was collected using the Company´s set of standard digital templates.
data entry procedures, data
verification, data storage (physical
and electronic) protocols
Discuss any adjustment to assay No adjustment to assay data has been carried out.
data.
Location of Accuracy and quality of surveys Drill hole locations were set out with high definition GPS,
data points used to locate drill holes (collar GEOMAX Zenith 35 and down-hole deviation measures were
and down?hole surveys), trenches, carried out by the drilling contractor using Maxibor equipment.
mine workings and other locations
used in Mineral Resource
estimation.
Specification of the grid system
used. Co-ordinates are presented in ETRS89 Zone 29.
Quality and adequacy of Topographic control is based on published 1:5,000 topographic sheets for the region.
topographic control.
Data Data spacing for reporting of Drill hole spacing varies from 30m to 60m and was selected to use existing access
spacing Exploration Results. roads and to test continuation of the mineralisation documented in the old adits.
and
distribution Whether the data spacing and
distribution is sufficient to
establish the degree of geological The mineralized domains have not yet been explored sufficiently to demonstrate the
and grade continuity appropriate continuity of the mineralized structures to support a definition of Mineral Resource.
for the Mineral Resource and Ore
Reserve estimation procedure(s)
and
Whether sample compositing has No compositing has been applied yet to the exploration results.
been applied
Orientation Whether the orientation of the The orientation of the mineralised structures has not yet been ascertained and
of data in samples achieves unbiased drilling has been oriented perpendicular to the interpreted structure of the
relation to sampling of possible structures mineralisation (observations from the old surface workings and adits).
geological and extent to which this is known,
structure considering the deposit type,
If the relationship between the No orientation based sampling bias has been identified in the data at this stage.
drilling orientation and the
orientation of key mineralized
structures is considered to have
introduced a sampling bias, this
should be assessed and reported if
material
Sample The measures taken to ensure All samples were logged and checked on return from the field.
Security sample security. All samples were then stored in a secure building before being dispatched to the
laboratory via a reputable transport company.
Audits or The results of any audits or reviews No audits or reviews have been carried out at this stage.
reviews of sampling techniques and data.
Section 2: Reporting of Exploration Results, Toral Project
Criteria JORC Code explanation Commentary
Mineral tenement - Type, reference name/number, location - The Toral zinc-lead permit is located near
and land tenure and ownership including agreements or Ponferrada in the west of the province of
status material issues with third parties such as Leon, Autonomous Community of Castile
joint ventures, partnerships, overriding and Leon, Spain approximately 400 km
royalties, native title interests, historical northwest of Madrid.
sites, 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 - Acknowledgment and appraisal of - Between 1975 and 1985, the
by 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 at depth. GoldQuest
acquired Lundin, including the Toral
permit, 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 details of drill holes material to the
Information the understanding of the exploration exploration results are reported in the
results including a tabulation of the body of the announcement and also in
following information for all Material drill Appendix B below.
holes: - All drill hole collar locations, easting and
- easting and northing of the drill hole collar northing are given in UTM 21, ETRS89 grid,
- elevation or RL (Reduced Level – elevation collar elevations (m), dip (°) and azimuth
above sea level in metres) of the drill hole (UTM), down hole length (m).
collar
- dip and azimuth of the hole
- down hole length and interception depth
- hole length.
- Data - In reporting Exploration Results, weighting - The weighted average of the mineralised
aggregation averaging techniques, maximum and/or intervals was calculated by multiplying the
methods minimum grade truncations (eg cutting of assay of each drill sample by the length of
high grades) and cut-off grades are usually each sample and dividing the sum of the
Material and should be stated. product by the down hole length sum of
- Where aggregate intercepts incorporate the mineralised interval.
short lengths of high grade results and - No metal equivalent values have been
longer lengths of low grade results, the reported.
procedure used for such aggregation should - Continuous anomaly zones reported in
be stated and some typical examples of Appendix B are at >0.05% of combined
such aggregations should be shown in Pb+Zn grade.
detail.
- The assumptions used for any reporting of
metal equivalent values should be clearly
stated.
- Relationship - These relationships are particularly - As stated in the announcement, all lengths
between important in the reporting of Exploration shown including those in Appendix B are
mineralisation Results. down hole measurements with true
widths and - If the geometry of the mineralisation with widths not known.
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) - Please see Appendix B showing the
and tabulations of intercepts should be tabulation of the significant assay results.
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 - The selected drill hole results reported
reporting Exploration Results is not practicable, here are stated as being those of the
representative reporting of both low and highest grades out of this drill programme.
high grades and/or widths should be
practiced to avoid misleading reporting of
Exploration Results.
- Other - Other exploration data, if meaningful and - No other substantive data has been
substantive material, should be reported including (but omitted in the context of the
exploration not limited to): geological observations; announcement. Any material observations
data geophysical survey results; geochemical arising from further data reviews will be
survey results; bulk samples – size and reported in due course.
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 - Follow-up work is planned to evaluate
work (eg tests for lateral extensions or further the data from this and earlier
depth extensions or large-scale step-out programmes and will be reported with
drilling). diagrams in due course.
- Diagrams clearly highlighting the areas of - The next exploration programme will
possible extensions, including the main include further modelling, drilling and
geological interpretations and future metallurgical work.
drilling areas, provided this information is
not commercially sensitive.
Appendix B: Toral Project Drilling Results
Drill-hole information
Hole ID Hole Type Depth Dip Azimuth Grid East North RL EPM
(m)
TOR17008 DDR 108.5 -45 211.5 ETRS89 680958.59 4710012.46 468.44 Toral 15.199
TOR17009 DDR 235.3 -45 196.7 ETRS89 680982.73 4710058.36 456.25 Toral 15.199
TOR17010 DDR 120.0 -45 197.5 ETRS89 680936.14 4710048.76 441.60 Toral 15.199
TOR17011 DDR 83.2 -45 208.0 ETRS89 680867.59 4710054.13 416.54 Toral 15.199
TOR17012 DDR 259.0 -50 28.0 ETRS89 680716.93 4709924.96 416.54 Toral 15.199
TOR17013 DDR 240.9 -50 190.2 ETRS89 681038.30 4710093.19 458.07 Toral 15.199
Significant Intercepts
Drillhole from to length (m) Pb % Zn % Pb+Zn %
TOR17009 140.35 141.35 1.0 1.22 9.77 10.99
TOR17009 141.35 142.35 1.0 3.26 1.45 4.71
TOR17009 140.35 142.35 2.0 2.24 5.61 7.85
continuous anomaly zone of Pb+Zn >0.05%
TOR17009 134.35 144.35 10.0
Drillhole from to length (m) Pb % Zn % Pb+Zn %
TOR17012 176.3 177.3 1.0 0.67 16.10 16.77
TOR17012 177.3 178.3 1.0 0.54 1.33 1.87
2.66
TOR17012 178.3 179.3 1.0 0.72 1.95
7.10
TOR17012 176.3 179.3 3.0 0.64 6.46
continuous anomaly zone of Pb+Zn >0.05%
TOR17012 175.3 185.3 10.0
Drillhole from to length (m) Pb % Zn % Pb+Zn %
18.40
TOR17013 195.8 196.8 1.0 9.29 9.11
3.16
TOR17013 196.8 197.8 1.0 2.29 0.87
1.0
TOR17013 197.8 198.8 6.51 6.5 13.01
3.0
TOR17013 195.8 198.8 6.03 5.49 11.52
continuous anomaly zone of
TOR17013 193.8 199.8 6.0 Pb+Zn >0.05%
Date: 07/09/2017 08:00:00 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.