Quarterly Exploration Activities Report

Transcription

1 Quarterly Exploration Activities Report For the Period Ending 31 March 2013 TUC Resources Ltd (ASX:TUC) provides its Exploration Activities Report for the quarter ending 31 March Heavy Rare Earth (HREE) Strategic Alliance; Progress Shandong Due Diligence Site Visit Completed Shandong Provincial Bureau of Geology and Mineral Resources completed its due diligence site visit in April Shandong Receive Foreign Investment Review Board Approval The Bureau received Foreign Investment Review Board Approval for both the 15.2% placement in TUC Resources (to raise A$2.25M), and the joint Venture to spend A$19 million to earn up to 50% of TUC s HREE District Tenements. The remaining requirements to allow the formation of the Joint Venture are the completion of legal documentation and the Bureau s satisfaction with its due diligence inquiries. The date for execution of the various Agreements underpinning the Strategic Alliance is now overdue and the Company is seeking clarification of the status of these agreements from the Bureau. HREE Exploration Highlights Significant Metallurgy and Exploration Results Skyfall and Largo Significant rock chip results from the first pass survey at Skyfall and Largo have shown the HREE mineralised district to be over 30km wide with at least four zones of potentially economic mineralisation now being delineated (Stromberg, Scaramanga, Skyfall and Largo). Importantly, initial microscopy work on rock chips at Largo has given evidence of absorption mineralogy, similar to that of the extremely low cost production Southern China Rare Earth Ionic Clay Deposits. Evidence also includes high distributions of the valuable Europium and rare Yttrium Oxide minerals. At Skyfall, a large mineralised area has been delineated with significant rock chips over an area at least 6km x 1km. Much more of this very large mineralised system is yet to be explored. Work continues in earnest. ASX Code: TUC Quarterly Report 30 April 2013 To: Manager Announcements Companies Announcements Office Australian Stock Exchange Limited 10th Floor, 20 Bond Street SYDNEY NSW 2000 Registered Office TUC Resources Ltd 15 Lovegrove Close MOUNT CLAREMONT WA 6010 Tel: Fax: E: info@tucresources.com.au W: ABN: Perth (Main) Office Level 10, 553 Hay Street Perth WA 6000 Tel: Fax: Company Management HREE Land Access Highlights Permit Allows Exploration to Commence at Skyfall TUC commenced exploration on application tenements in the NT HREE District during the quarter under a Preliminary Exploration Permit issued by the Northern Land Council and Traditional Owners. This is allowing early stage exploration to be undertaken on the exciting Skyfall and Largo HREE prospects, whilst the final tenement grant process is being considered. Skyfall Tenement Heritage Surveys Completed Important Aboriginal Heritage surveys were completed during the period. This is one of the final steps towards the granting of the Skyfall tenement. Peter Harold Non-Executive Chairman Ian Bamborough Managing Director Anthony Barton Non-Executive Director Leon Charuckyj Non-Executive Director Graeme Boden Company Secretary Page 1 of 9

2 Corporate STRATEGIC ALLIANCE PROGRESS Background TUC formed a strategic alliance with the Shandong Provincial Bureau of Geology and Mineral Resources (The Bureau) under a Memorandum of Understanding (MOU) in January 2013, for the exploration and exploitation of eight heavy rare earth (HREE) tenements in TUC s Northern Territory (NT) HREE District. The Alliance includes a cornerstone placement, and a Joint Venture to spend over A$19 million to earn up to 50% of the project. It also includes a further step which could see TUC free carry to production (see ASX announcement dated 15/01/2013 for further details). Shandong Province is home to one of four Special Rare Earth Development Zones in China. The Province is endowed with some large discoveries of light rare earths, the largest of which was discovered by the Bureau. The Bureau has access to the most advanced heavy rare earth processing technologies known throughout China. Shandong Due Diligence Site Visit Completed Shandong Provincial Bureau of Geology and Mineral Resources completed its due diligence site visit in early April Figure 1 Members of the Bureau s Due Diligence Team, TUC s Board, Management, and Staff, and the Northern Territory Government s Resource Department Team, at an end of Due Diligence visit in April Shandong Receive Foreign Investment Review Board Approval The Bureau received Foreign Investment Review Board Approval in late April 2013 for both the fully diluted 15.2% placement in TUC Resources (to raise A$2.25M), and the joint Venture to spend A$19 million to earn up to 50% of TUC s HREE District Tenements. The remaining requirements to allow the formation of the Joint Venture are the completion of legal documentation and the Bureau s satisfaction with its due diligence inquiries. The date for execution of the various Agreements underpinning the Strategic Alliance is now overdue and the Company is seeking clarification of the status of these agreements from the Shandong Bureau. Page 2 of 9

3 Summary of Exploration Activities This Quarter The following exploration activities have been undertaken during the Quarter: Helicopter supported geochemical survey of HREE targets in the greater Northern Territory HREE District. Figure 2 shows the location of major field activities during the Quarter (highlighted in red). Figure 2: Location and explanation of exploration activities during the quarter. Page 3 of 9

4 Exploration Results SIGNIFICANT NEW HEAVY RARE EARTH POTENTIAL: SKYFALL AND LARGO TUC s Hea v y Rar e Ear th Dist rict, EL25222, EL29458, ELA27151, ELA24884, ELA24290, ELA29241 District HREE Potential Proven Significant rock chip results from a first pass survey at Skyfall and Largo have shown the mineralised district to be over 30km wide with at least four zones of potentially economic mineralisation (Stromberg, Scaramanga, Skyfall and Largo) (Figure 3). Significant results of up to 0.28% TREO with high HREE contents (71% HREO/TREO) were noted. Figure 3: Skyfall and Largo Prospect showing the locations of the initial HREE rock chips on ELA27151 (airborne radiometric background). Evidence of Potentially Lower Cost Absorption Mineralogy Importantly, initial mineralogy on rock chips at Largo has given evidence of absorption mineralogy, similar to that of the extremely low cost production Southern China Rare Earth Ionic Clay Deposits. No typical rare earth minerals were noted under the microscope. This lack of rare earth minerals does not account for the high rare earth contents of the samples thus suggesting absorption of the rare earths onto clay and iron mineral surfaces. Further metallurgical testing is planned to investigate the association and distribution of the REE s onto clay & mineral surfaces. Page 4 of 9

5 TUC are delighted that mineralogy at Largo showed some examples of rare Yttrium Oxide (Yttriate) shown in Figure 4; this further indicates that the mineralogy of the prospect is very special and that it could be similar in nature to the Southern China Rare Earth Ionic Clay deposits. Yttrium Oxide is the usual final product of rare earth mining and processing, and its presence in natural form could be a significant advantage for TUC. Figure 4: Yttriate (Yttrium Oxide) at Largo. Furthermore, the Europium content of the samples at Skyfall showed a unique and unusually high Europium distribution (+1%) giving even more similarities to the Southern China Rare Earth Ionic Clay deposits (Figure 5). Europium is a highly valuable Medium Rare Earth (MREE). Figure 5: HREE Distribution, Skyfall and Largo. Heavy Rare Earth contents of the samples above a 0.2% TREO average 69% HREE. Other notable and high value rare earths in the TREO distribution are Dysprosium at 7.6%, Terbium at just under 1% and Yttrium at 52% (at >0.2%TREO). Potential for Large Tonnage Prospects Outlined A large mineralised strike length has been delineated at Skyfall with significant rock chips over at least 6km. Figure 6 shows a much larger coincident radiometric anomaly (the exploration target) which is yet to be fully explored. Page 5 of 9

6 The two highest grade samples at Skyfall are located over 200m apart showing immediate strike potential for higher grade mineralisation (Figure 6). Results have also shown the HREE mineralised system to be over 1km wide (Figure 6). Figure 6: Skyfall Prospect showing the locations of the initial HREE rock chips, note the two pink samples (>0.2% TREO) showing a potential high grade strike length of +200m. The >0.1% TREO results at the Skyfall area cover a length of +6km and +1km wide (airborne radiometric background). Table 1 details significant results above a likely 0.05% mineralised envelope cut-off. Prospect TREO_% Dy 2O 3%/TREO% Eu 2O 3%/TREO% Tb 4O 7%/TREO% Y 2O 3%/TREO% HREO%/TREO% Skyfall Skyfall Skyfall Skyfall Largo Skyfall Largo Skyfall Skyfall Skyfall Skyfall Table 1: Significant first pass rock chip assay results at Skyfall and Largo; Figures 3 and 6 show the location and magnitude of assay results in Table 1. A total of 27 samples were taken in this first program. Outlook The results of this first (helicopter) surface sampling into new (and previously restricted) areas of Skyfall & Largo has provided concrete evidence of the discovery of an extensive & significant HREE district extending over a width of at least 30km. Additionally, evidence of absorption mineralogy similar to the Southern China Rare Earth ionic clay deposits (which are characterised by extremely low cost of production because of the simple release of the HREEs from the clay), has been uncovered. This could potentially lead to significant economic benefits in any future development. Page 6 of 9

7 Planned Exploration Activities, Next Quarter TUC s exploration plans for the next quarter include: Helicopter supported geochemical survey of HREE targets in the greater Northern Territory HREE District; Final On Country Land Access Meetings with Traditional Aboriginal Land Owners (TUC s NT HREE District). Figure 7 shows TUC s tenement status and the locations of planned field activities for the next Quarter (highlighted in red). Figure 7: TUC planned field activities for the next quarter and tenement status. Page 7 of 9

8 Land Access Preliminary Exploration Permit (PEP) Allows Exploration to C ommence at Skyfall TUC commenced exploration on application tenements in the NT HREE District during the quarter under a Preliminary Exploration Permit. This permit, issued by the Northern Land Council, on behalf of Traditional Owners, allows early stage exploration to be undertaken whilst the final tenement grant process is being considered. TUC are thrilled to be working with Traditional Aboriginal Land Owners on this new initiative. This permit has allowed TUC early access to the exciting new prospects at Skyfall and Largo. Figure 8: Traditional Owners out Exploring at Skyfall March 2013 Official Skyfall Tenement Grant Process; Making Strong Progress Significant progress in the official land access process on the Skyfall tenement has been made with the previous Moratorium on ELA27151 being officially overturned by Federal and Northern Territory Ministers. Heritage surveys have been completed; negotiations with Traditional Owners are nearing completion. A final on-country meeting is planned for early May 2013 to ratify negotiations. Full tenement grant, allowing planned drilling to commence at Skyfall, could be possible in July 2013 if negotiations are successful. Tenement Changes Figure 7 shows TUC s current tenement status. Fifteen uranium prospective tenements from TUC s Acacia and Arnhem Projects were moved into a 100% TUC owned and operated Private Company during the Quarter. The Company is Arnhem Minerals Pty Ltd. This is one of three such Companies that TUC has formed (Figure 7) to prepare some of its tenements for possible future corporate activity. Finance The 31 March 2013 cash position of the Company was $1.055M vs. a December 2012 cash position of $1.17M. TUC continues to work towards the finalisation of the Shandong Bureau HREE Strategic Alliance and its associated funding arrangements. Capital Structure: Share Price (TUC): $0.079 Issued Shares: 125.6M; Market Cap: $9.9M (as at 29 April 2013). Page 8 of 9

9 For further information on anything in this report, please contact: MR IAN BAMBOROUGH, Managing Director, TUC Resources Ltd +61 (0) or *Total Rare Earth Oxides (TREO s) have been calculated by addition of common oxide values for Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Nd, Pr, Sm, Tb, Tm, Yb, Y. REO values have been calculated from REE ppm grades after analysis by lithium-metaborate fusion and ICPMS, where possible, or by HF/multi acid digest and ICPMS. The total REO is calculated as the sum of all REE as REE2O3, with the exception of Ce, Pr and Tb; which are calculated as CeO2, Pr6O11, and Tb4O7 respectively, in accordance with geochemical conventions. **Heavy Rare Earth Elements HREE s and Heavy Rare Earth Oxides (HREO) = Dy, Er, Ho, Lu, Tb, Tm, Yb, Y; Medium Rare Earth Elements MREE s = Gd, Eu, Sm; Light Rare Earths LREE s Ce, La, Pr, Nd. INVESTOR INFORMATION Registered Office: 15 Lovegrove Close MOUNT CLAREMONT WA 6010 Tel: Fax: E: info@tucresources.com.au W: Perth (Main) Office: Level 10, 553 Hay Street Perth WA 6000 Tel: Company Management: Peter Harold (Non-Executive Chairman) Ian Bamborough (Managing Director) Anthony Barton (Non-Executive Director) Leon Charuckyj (Non-Executive Director) Graeme Boden (Company Secretary) TUC Resources Ltd holds approximately 15,000km 2 of prospective land package across 47 (28 under application) tenements making it one of the biggest ground holders in the Northern Territory of Australia. The business holds multiple consolidated project areas across several key geological and metallogenic terrains, affording it some opportunity to diversify exploration into many commodities. TUC s main focus is its Stromberg Heavy Rare Earth District where it retains approximately 3000km 2 of tenements. The Stromberg District is located approximately 4 5 hours drive south of Darwin. The information in this report relates to exploration results compiled by Ian Bamborough, who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime employee of TUC Resources Ltd. Ian Bamborough 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 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Bamborough consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 9 of 9