3,200 Metre Channel Sampling Programme Progresses at San Pedrito Tin Mine

Transcription

1 ASX Announcement 14 January ,200 Metre Channel Sampling Programme Progresses at San Pedrito Tin Mine Highlights Victory s 100%-subsidiary SAT is conducting a 3,200 metre surface channel sampling programme Targeting +1.2% tin ( Sn ) grades at San Pedrito, plus associated zinc and silver ( Zn & Ag ) Sampling project 40% complete, aimed to expand the near surface feed for the initial toll treatment plant SAT s work at the San Pedrito Mine is focussed on near-term cash flow Labour for sampling is being supplied by the local Juan del Valle Cooperative Victory assessing short term funding to advance SAT s development work Strong support in-country for SAT s projects Victory Mines Limited (ASX: VIC) ( Victory or the Company ) is progressing a channel sampling programme at the San Pedrito tin mine, which forms part of the Siglo XX tin project located in the North of Potosi, Bolivia. Victory s 100%-owned subsidiary, South American Tin Limited ( SAT ), the acquisition of which was completed in December 2014, is developing the San Pedrito Mine in conjunction with the local Juan del Valle Cooperative. SAT is working with this Cooperative to develop a small-scale toll treatment project of 150 tonnes per day from the mining of veins and existing surface stockpile material. The sampling is aimed to expand the near surface feed material for an initial processing plant. SAT has commenced planning for the plant construction in consultation with the local foundry. SAT has already completed 1,165 metres of underground channel sampling, 185 metres of diamond drilling and underground and surface mapping at San Pedrito. Geological details on the San Pedrito Project were previously reported to the ASX on 12 May Channel Sampling Programme SAT has commenced a surface channel sampling programme of 15 channels totalling 3,200 metres with sample lengths of 5 metres. The distance between channels is approximately metres depending on the topography see Figure 1 for channel locations. The channels cover the area of Adit No. 1-4 on the lower slope of the San Pedrito Hill and the uppermost part of the San Pedrito Hill where SAT drilled two diamond drillholes. Progress made with the trenches to date is set out in Table 1, with images of the trenches in Figure 2. Logging of the channels will be done. Samples will be sent for analysis to either ALS Chemex or SGS, both of whom have laboratories in Bolivia and have internal P a g e 1

2 and internationally acceptable QA/QC controls. mineralised structures where the topography allows. Channels are approximately normal to the SAT has already identified significant tin intersections, often with encouraging silver grades, in results from underground Adit No. 1, 2, 3 and 4, from previously completed 5-metre long samples. The results of this sampling programme are shown in Table 2. Historically, veins of 0.8 to 1.2 metres wide have been mined, as can be seen in Figure 1. SAT will be targeting the narrow veins for feed for its proposed 150 tonne per day toll treatment plant, plus surface stockpile material see Figure 3. The wider zones of apparently disseminated mineralisation will be the target for the second, larger stage of the San Pedrito Project. Samples for Adit No 4 are yet to be submitted to the laboratory. SAT will also look to undertake an underground sampling programme in Adit No 1 to follow-up on a sampling programme done in 1928 by Patiño Mining. This programme sampled veins that cross Adit No 1. Some of these veins have been partially mined by the Juan del Valle Cooperative and others untouched. Figure 1 Channel Locations at the San Pedrito Mine SAT/VIC s Managing Director John Kelly commented: The channel sampling program is an important step in giving SAT an improved picture of the San Pedrito mineralisation so we can deliver sustainable tin ore processing over the longer term. P a g e 2

3 Whilst our immediate focus will be on processing tin ore from the existing Cooperative underground workings and existing tin ore stockpiles, we believe higher grade tin veins for future exploitation can also be identified near surface or in existing underground development. This sampling programme is being conducted concurrently with our project development initiatives at the San Pedrito Mine so we improve our understanding of the geology and potential at this very large project. Strong community and government support has been shown for the development of the toll treatment plant at the San Pedrito Mine. We also have excellent support and commitment from Bolivia s peak cooperative representative body, FENCOMIN, which represents Bolivia s mining cooperatives. SAT s in-country support as a foreign company is excellent. Victory is now assessing its funding options so it has the necessary funding to more rapidly advance the development of the Siglo XX project. We will update shareholders in the coming weeks in this regard. Once the results of this programme are received by the Company they will be analysed with the existing sampling results and a drilling programme planned. Channel No Planned Length Completed Length Adit Nos 1-4 Zone SPT SPT SPT SPT SPT SPT SPT SPT SPT SPT Total 2,575 1,306 Top of the San Pedrito Hill SPT SPT SPT SPT SPT Total Table 1 Trenching Progress at the San Pedrito Project P a g e 3

4 Completed Trenches Figure 2 Completed Surface Trenching in the Adits Nos 1-4 Zone at the San Pedrito Project Adit No Adit Elevation Metres From Metres 1 4, , , To Metres Significant Intersections (only Sn and Ag shown) g/t Ag, including % Sn Higher grade intersections included in the above are: 25 Nil % Sn & 18.2 g/t Ag % Sn & 22.9 g/t Ag % Sn & 9.4 g/t Ag % Sn & 28.2 g/t Ag 5 Nil% Sn & 40.7 g/t Ag % Sn & 17.0 g/t Ag % 90.6 g/t Ag 5 Sn & 17.5 g/t Ag % Sn & 21.6 g/t Ag (incl 103 g/t Ag) % Sn and 20.8 g/t Ag (this follows a vein) Higher grade intersections included in the above are: % Sn & 68.4 g/t Ag 15 Nil% Sn & 20.7 g/t Ag % Sn & 18.6 g/t Ag % Sn & 10.4 g/t Ag % Sn & 5.6 g/t Ag (end of adit) % Sn and 8.6 g/t Ag Higher grade intersections included in the above are: % Sn & 5.7 g/t Ag % Sn & 32.9 g/t Ag 20 Nil% Sn & 41.0 g/t Ag % Sn & 165 g/t Ag % Sn & Nil g/t Ag % Sn & Nil g/t Ag % Sn & Nil g/t Ag (end of adit) P a g e 4

5 Adit Adit Elevation From To Significant Intersections (only Sn and Ag shown) No Metres Metres Metres 4 4, Sampling completed, awaiting despatch of samples to the laboratory. Zone Table 2 San Pedrito Adit Sampling Results by SAT Exploration Target for Stage 1 of the San Pedrito Project SAT has previously estimated an Exploration Target for the San Pedrito Project and the Company reported this to the ASX on 12 May For Stage 1 of the San Pedrito Project, SAT has developed a smaller, higher grade Exploration Target aiming at a minimum of 2 years feed for the toll treatment plant. The Exploration Target will be made up of primary ore from narrow veins ( m wide) and stockpiles that exist at the entrances of many of the adits. The potential quantity and grade of these Exploration Targets are conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource. Table 3 below shows SAT s Exploration Target estimate for the complete San Pedrito vein system, which is based upon the historical data available to SAT and SAT s future work plan. SAT s minimum Exploration Target for the first 2 years of production for the toll treatment plant is shown in Table 4 below. Socavon Luzmila to Adit No 1 Lower Target Upper Target Lower Target Grade Upper Target Grade % Sn % Zn Ag g/t % Sn % Zn Ag g/t 3,300,000 3,900, Above Adit No 1 2,700,000 3,300, Total 6,000,000 7,200, Zone Table 3 SAT s Exploration Target for Vein Mineralisation at the San Pedrito Project Lower Target Upper Target Lower Target Grade Upper Target Grade % Sn % Zn Ag g/t % Sn % Zn Ag g/t Adits No ,000 80, Top of the Hill 40,000 48, Stockpile Material 48,000 65, Total 158, , Table 4 SAT s Exploration Target for Vein Mineralisation and Stockpiles at the San Pedrito Project for the First 2 Years of Production P a g e 5

6 Figure 3 Stockpiles at the Oropeza Adits (Left) and the No 1 Adit (Right) Juan del Valle Cooperative Assistance The Juan del Valle Cooperative is supplying 20 of its members to undertake the channel sampling programme under the supervision of SAT s local geologist. This Cooperative is the contractual owner of the San Pedrito Mine area and has worked with SAT to develop this project for the past three years. SAT has supplied each of these people with appropriate personal safety equipment. SAT is keen to develop a basic understanding of mine safety and a safety culture with the Mining Cooperatives it is working with. Figure 4 below shows the Juan del Valle sampling crew. Figure 4 Members of the Juan del Valle Cooperative Involved in the San Pedrito Mine Channel Sampling Programme P a g e 6

7 JORC Code Table 1 Checklist of Assessment and Reporting Criteria No changes are necessary to the JORC Table 1 over what was reported on 12 May The surface channel samples are being sampled and will be analysed in the same fashion as the underground channel samples discussed in the JORC Table 1 on 12 May Competent Person s Statement The information herein that relates to Exploration Results is based on information compiled by Mr John Kelly BE(Min), who is a Fellow of The Australian Institute of Mining and Metallurgy. Mr Kelly takes responsibility for the form and context of the Exploration Target reported. Mr Kelly is a full-time employee, director and shareholder of South American Tin Limited. Mr Kelly has 34 years experience in mining and exploration activities. Mr Kelly has more than five years' experience which is relevant to the style of mineralisation and type of deposit being reported 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, Minerals Resources and Ore Reserves (the JORC Code). Mr Kelly takes responsibility for the Exploration Target in this report. This public report is issued with the prior written consent of the Competent Person as to the form and context in which it appears. - ENDS - Enquiries: Elizabeth Hunt Company Secretary Ben Jarvis Six Degrees Investor Relations or John Kelly Managing Director john@southamericantin.com.au or P a g e 7