Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
EPM 15092
MARLBOROUGH PROJECT
ANNUAL REPORT
REPORTING PERIOD:
November 29, 2005 to November 29, 2006
Paul Joyce
King Eagle Resources Pty Limited
December 2006
KING EAGLE RESOURCES PTY LIMITEDABN 26 094 888 687
2006 Annual Report EPM 15092 2
Table of Contents
1. Summary................................................................................................32. Tenure Information................................................................................42.1. Blocks and sub-blocks......................................................................43. Location and Access............................................................................54. Physiography & Vegetation..................................................................55. Regional Geology..................................................................................66. Exploration Rationale...........................................................................97. Previous Exploration............................................................................98. Geological Data....................................................................................109. Analytical Results................................................................................1210. References........................................................................................13
List of Figures
1. Tenure Plan2. Project Location3. Regional Geology4. Marlborough Magnesite Geology Model5. Marlborough Magnesite Mineralization Model
List of Appendices
1. Regional geology2. Traverses and perlite occurrences3. Drilling:
Drill hole location plan showing metal factors Cross sections:
7469600N7470000N7470400N7470800N7471200N7471600N7472000N7472400N7472800N7473200N7473600N7474000N7474400N
4. Assays
2006 Annual Report EPM 15092 3
1. Summary
King Eagle Resources Pty Limited (KER) conducted an exploration program to investigate the magnesite
potential of EPM 15092. Work conducted during the period included:
A desk top study, which included:
o Review of all previous exploration conducted within the EPM
o Digitizing previous drilling data and production of plans and cross sections showing
available information
Regional geological reconnaissance along existing roads and tracks within the EPM
Sampling and analyses of magnesite outcrops
Discussions with an magnesite producer regarding the technical aspects of the Marlborough deposit
Magnesite sample – Railway prospect Marlborough
2006 Annual Report EPM 15092 4
2. Tenure Information
Tenement EPM 15092Holders King Eagle Resources Pty LimitedTerm 5 yearsDate Granted 29-Nov-2005Date Expires 29-Nov-2010Joint Venture NoneArrangements
Figure 1 Tenure Plan – EPM 15092
2.1. Blocks and sub-blocks
EPM BLOCK SUB-BLOCKS15092 CLER 2446 PTUYZ
CLER 2447 KLMNOPQRSTUVWXYZCLER 2448 AFLMNQRSVWXYZROCK 2449 AEGKLMNOPQRSTUVWXYZROCK 2450 FGHJKLMNOPQRSTUVWXYZCLER 2519 BCDEGHJKCLER 2520 ABCDEFGHJKLMNOPUZ
2006 Annual Report EPM 15092 5
3. Location and Access
EPM 15092 is situated 90 kilometres northwest of Rockhampton in central eastern Queensland. The Bruce Highway and main coastal railway line pass through the centre of the tenement and most other parts are well serviced by station tracks. Accommodation facilities are available in Marlborough, located within the EPM
Figure 2 Marlborough Magnesite Project Location (after QMA Annual Report 1998)
4. Physiography & Vegetation
The topography throughout most of the EPM consists of alluvial flats developed in a broad valley. Elevation is approximately 80 m above sea level.
Marlborough Magnesite Deposit – looking south
2006 Annual Report EPM 15092 6
5. Regional Geology
The EPM is underlain by Quaternary fluvial sediments and Permian felsic intrusives and Silurian to lower Devonian sediments. Siluro-Devonian ultramafic rocks (magnesium rich) consisting of serpentinite, serpentinized harzburgite, altered gabbro, and minor pyroxenite are exposed along thrust faults. These were later intruded by upper Permian adamellite and diorite. The leaching of magnesium from ultramafics and their lateritic derivatives provided the magnesium source for the formation of nodular magnesite in the slack water areas of the Quaternary drainage.
Figure 3 Regional Geology (refer to Appendix 1 for larger image)
The Kunawarra Magnesite Deposit located 30km to the southeast provides the best model of the chemical precipitation and transport for nodular magnesite at Marlborough. The Kunawarra Magnesite Project - The Development of a Major New Deposit in Queensland, Australia” by MT.Frost,. in the 8th Industrial Minerals International Congress (Pages 230-239, 1988) describes these major geological features:
(1) Ultrabasic rocks are sometimes found intimately associated with the magnesite.
(2) The ultrabasic serpentinites outcrop as low lying hills to the west and magnesium rich carbonic acid rich solutions drained east from these hills to form a series of linked shallow lakes. The magnesite now rests on Tertiary sands and gravels which in turn rest on a granitic basement. Evaporation allowed the precipitation of magnesite or basic rich magnesium carbonates which later hydrated to magnesite
(3) The magnesite carbonate formed concretions at the surface of the lake in the zone which alternately dried and submerged in water
(4) Magnesite now occurs as a densely packed mass of nodular concretions of cryptocrystalline magnesite. Lithological variability is the feature of the formations. Material surrounding the nodules usually consists of friable sandstone with minor amounts of clay
Stephen Wilcock’s paper Sediment-hosted magnesite deposits. (AGOS Journal of Australia Geology & Geophysics 17(4) 271-251), also provides details on the geology, mineralization and chemistry of sediment hosted magnesite deposits, which has particular implications to the Marlborough magnesite mineralization:.
2006 Annual Report EPM 15092 7
Figure 4 Marlborough magnesite geology model
(modified after S. Wilcock’s Sediment-hosted magnesite deposits)
Regional Geological Setting Tertiary-Quaternary terrestrial environment Adjacent to Palaeozoic ultramafic complexes Contained in silts & gravel fluvial sediments
Local Geological setting Located in present-day topographically low areas No structural deformation Deposit outline reflects Tertiary fluvial channels Overlain by black clay overburden Generally no surface exposure
Figure 5 Marlborough magnesite mineralization model
(modified after S. Wilcock’s Sediment-hosted magnesite deposits)
2006 Annual Report EPM 15092 8
Mineralization Stratabound within upper parts of fluvial sequence Magnesite occurs as concretionary nodules up to 60 cm diameter Cryptocrystalline 1-10 microns nodules have siliceous outer skin Magnesite nodules range from hard, dense ‘bone’ to softer porous chalky magnesite Dolomite forms smaller nodules
Magnesite nodule – Marlborough Creek
Geochemistry MgO up to 98.5% (LOI free) Major contaminants
o SiO2o CaO
Minor contaminantso Fe2O3o Al2O3o MnO
Fluid Chemistry and Origin Magnesium sourced from weathering of adjacent ultramafic rocks Precipitation of magnesite from Mg bicarbonate-rich waters triggered by:
o mixing with highly alkaline groundwatero concentration through evaporation
Nodule formation initiated during deposition of fluvial sequence
2006 Annual Report EPM 15092 9
6. Exploration Rationale
KER’s exploration objective is to investigate the potential for a commercially viable magnesite deposit. Work conducted within the period included:
A desk top study, which included:o Review of previous exploration conducted within the EPMo Digitizing previous drilling data and produce plans and cross sections of available
information Regional geological reconnaissance along existing roads and tracks within the EPM Sampling and analyses of magnesite outcrops Discussions with an magnesite producer regarding the technical aspects of the Marlborough deposit
Rock chip sampling – Marlborough Creek (SampleM002)
7. Previous Exploration
PREVIOUS EXPLORATION SUMMARYCOMPANY PERIOD WORK CONDUCTED
Dunstan – Qld Mines Dept 1916 Recognized nodular magnesite float in the Marlborough area
BHP 1968 29 rotary airblast holesCudgen RZ Ltd and its subsidiary Industrial Minerals Pty. Ltd. (Union Corp)
1979 collected grab samples of magnesite nodules recognized the area’s potential for a
significant magnesite depositQueensland Metals Corp Various
periods during the 1980’s
detailed exploration was conducted on EPM’s 4009 and 4208 prior to the discovery of theKunwarara
Omya Southern Pty Ltd 1995-98 28 RAB holes, ranging in depth from 3m to 8m, for a total of 170m were drilled using a self- contained crawler mounted Tamrock Drill.
Most holes drilled along east-west traverses on 20 m by 40 m grid spacing
15 shallow pits ranging in depth from 2.2 m to4.6 m were excavated
Australian Magnesium Corporation Limited from
1992 to 2004 No field exploration activities were undertaken during the tenure of MDL 120
MDL 120 was relinquished due to the following: no near-term development plan for the deposit high holding costs to retaining the tenure no long-term strategic interest to AMC
2006 Annual Report EPM 15092 10
Prior to the discovery of the Kunwarara deposit in 1985, the Marlborough magnesite deposit was explored by QMC under EPM’s 4009 and 4208. An area of nodular magnesite outcropping in Marlborough Creek that was drilled, defined a thin nodular magnesite blanket extending beneath alluvial cover. Further drilling campaigns intersected magnesite and dolomite in a shallow basin extending for approximately 5km to the main coastal railway to the west of Marlborough.
A surveyed grid was subsequently established over this area and the zone was pattern drilled on 400m x 200m centres. A total of 125 rotary drillholes (120mm in diameter) were completed. A further 18 large diameter holes (900mm in diameter) were drilled to obtain detailed data on the nature and distribution of magnesite mineralization, however the samples not processed metallurgically to determine potential recoverable yields.
The drilling programs defined several magnesite-bearing channels extending over 4km. Several satellite pods of dolomitic carbonates also occur over shallow granitic basement.
Using all the 1987 drilling data Australian Magnesium Corporation estimated a non-JORC inferred resource at a 20% contained magnesite cut/off grade. After the extraction of a dolomite component, an Inferred Resource of 18 to 19Mt was estimated using polygonal methods. This resource contains an estimated 5 to 6Mt of nodular magnesite with an average grade of 3%CaO and 5%Si0 2 (L0I free basis) (Table 1 – data extracted from MDL 120 Final report — Australian Magnesium Corporation Limited)
8. Geological Data
A regional geological reconnaissance survey was conducted along existing roads and tracks within EPM 15092. Rock chip samples were collected of all the magnesite exposures that were located. Samples were photographed and representative samples were submitted for analysis.
2006 Annual Report EPM 15092 11
Sample M002
Nodular magnesite
Marlborough Creek, southern end of Marlborough magnesite deposit
Location:22.85196S 149.86624E
Sample M003
Nodular magnesite
Marlborough Creek, southern end of Marlborough magnesite deposit
Location:22.85542S 149.86624E
Sample M005
Chalky magnesite
Railway Prospect
Location:22.88682S 150.06471E
2006 Annual Report EPM 15092 12
Sample: Float
Siliceous magnesite float
Stannage Bay Road
Location:22.87617S 150.12535E
Details of the reconnaissance traverses and rock chip sample locations are shown on Appendix 2.
9. Analytical Results
Representative samples of magnesite outcrops were submitted for analysis to:
Wonjin World Wide Co Ltd127, Sanmak-dong, Yangsan-si Kyungsangnam-do Korea
Assays results are summarized below and the assay data sheet is tabled in Appendix 4.
ANALYSIS SAMPLEXRF UNIT M002 M003 M005
SiO2 % 0.36 0.28 0.00Al2O3 % 0.00 0.03 0.00Fe2O3 % 0.29 0.13 0.00CaO % 2.42 2.99 0.40MgO % 46.31 45.98 48.35Na2O % 0.00 0.00 0.00K2O % 0.01 0.01 0.00TiO2 % 0.00 0.00 0.00LOI % 50.61 50.58 51.25
LOI FREE BASISSiO2 % 0.73 0.58 0.00Al2O3 % 0.00 0.06 0.00Fe2O3 % 0.59 0.25 0.00CaO % 4.90 6.04 0.81MgO % 93.76 93.04 99.18Na2O % 0.00 0.01 0.00K2O % 0.01 0.01 0.01TiO2 % 0.01 0.01 0.00
10. References
BHP (1968) Magnesite Testing A to P 294M. Qld. Mm. Dep. Rep. C/R 2856
Blumenthal, J.D (1996) Omya Southern My. Ltd. Marlborough Magnesite. Twelve Monthly Report (August 18, 1995 - August 17 1996) E.P.M. 10717 – Marlborough
Blumenthal, J.D (1997) Omya Southern My. Ltd. Marlborough Magnesite. Twelve Monthly Report (August 18, 1996 - August 17 1997) E.P.M. 10717 – Marlborough
Burban, B. (1987) First Relinquishment Report on Authority to Prospect No. 4208 Marlborough. For the period 11.2.86 - 10.2.87.
Cuttlet, L.G. (1958) Magnesite Occurrence, Kunwarara Qld. Govt. Mm. Jour., 59, pp 50 7-8
Duncan, I. (1989) Third Annual. Sixth Monthly and Final Report on Authority to Prospect 4009M “Princhester”.
Dunstan, B. (1916) Queensland Mineral Deposits: Review of Occurrences, Production, Values and Prospects. Magnesite, Dolomite and Magnesium. Qld Govt. Mm. Jour. I7 pp. 529-533
Frost, M.T (1988) The Kunawarra Magnesite Project - The Development of a Major New Deposit in Queensland: Industrial Minerals International Congress pp. 230- 239
Malone, E. J. (1970) Geology of the St. Lawrence 1:250,000 Sheet Area SF155-12 Explanatory Notes. BMR
Milburn, D. and Duncan, I. (1990) Queensland Metals Corporation N.L. Conditional Relinquishment. Third annual and sixth monthly report on Authority
Wilcock, Stephen Sediment-hosted magnesite deposits. AGOS Journal of Australia Geology & Geophysics 17(4) 271-251
APPENDIX 1 REGIONAL GEOLOGY
REGIONAL GEOLOGY
APPENDIX 2 TRAVERSES & SAMPLE LOCATIONS
TRAVERSES & SAMPLE LOCATIONS
APPENDIX 3 DRILLING
NOTE: CROSS SECTION VERTICAL EXAGGERATION X10
2006 Annual Report EPM 15092 21
2006 Annual Report EPM 15092 41
APPENDIX 4 ASSAYS
2006 Annual Report EPM 15092 42