Sewa Bay Nickel Exploration Project, PNG

Transcription

1 9 August 2013 Sewa Bay Nickel Exploration Project, PNG Encouraging nickel laterite reconnaissance sampling programme Similar ocean arc nickel laterite mineralisation to Ramu project Exploration and joint venture opportunities to be considered Highlands Pacific Limited (ASX:HIG) today reports encouraging nickel laterite assay results from a reconnaissance exploration programme on its Sewa Bay tenements on Normanby Island at the south east tip of Papua New Guinea. Sewa Bay is approximately 400 kms from Port Moresby, 650 kms from Ramu s Basamuk Process Plant at Madang, and 1,000 kms from Townsville, Australia. The nickel laterites encountered at Sewa Bay have similarities to other ocean arc nickel deposits such as Kurumbakari (Ramu project) in PNG and other nickel projects in Philippines, Indonesia and New Caledonia. On Exploration Licence 1761 Esa ala (Sewa Bay) Highlands Pacific undertook a low cost exploration programme of 20 widely spaced hand auger holes drilled to refusal. Each hole was sampled on one metre intervals for a total of 41 samples. Holes drilled ranged between 0.6 to 3.0 metres in depth, with an average of 2.1 metres per drill hole. Most of the soil samples showed elevated nickel grades indicative of laterite soils developed over ultramafic rocks with higher grades (>0.6% Nickel) restricted to the south eastern block (~30 square kilometres of mapped ultramafics). This is consistent with observations by previous field workers who had reported the occurrence of nickel laterite soils. The reported grades are similar to those seen in the limonite portion of the Kurumbukari deposit that the Ramu project is mining. While these results are very preliminary they do indicate nickel cobalt laterite mineralisation in the area at grades and thickness sufficient to warrant follow up exploration. The presence of previously reported magnesite occurrences was also confirmed. Further work will need to be carried out to assess the extent and tenure of these occurrences. Magnesite is a potential reagent in the treatment of laterite ores, where Ramu uses sodium hydroxide which it has to purchase from third parties. Managing Director John Gooding said This was a low cost exploration programme that has unearthed some encouraging results. We will sit back now and evaluate how to take this forward. Clearly we have an interest in the Ramu nickel project and the plant there is built and operating. However the Kurumbukari deposit is somewhat landlocked and specific for Ramu, whilst Sewa Bay s proximity to the sea could make for an export or shipping opportunity. The first step though is to further evaluate the options for advancing exploration which could potentially be with a partner. For further information, please contact: John Gooding or Craig Lennon Highlands Pacific Media Enquiries to: Simon Jemison Collins St Media P age

2 At a point 0.6% Nickel cutoff the best results were (Ni nickel, Co cobalt, Mg magnesium): Downhole Hole From To Interval (m) Ni (%) Co (%) Mg (%) 13_S _S _S _S _S _S _S _S Figure 1: Location of Normanby Island in PNG with current tenement and ultramafic units. 2 P age

3 Figure 2: Auger drillhole locations (13_S001 to 13_S020). 3 P age

4 Section A-B (blue line on figure 2) showing nickel intercepts over 0.60% Ni. Outcrop of laterite soils on ridges 4km inland from Sewa Bay. 4 P age

5 Hole North East Elevation Azimuth Dip Total Depth (m) 13_S _S _S _S _S _S _S _S _S _S _S _S _S _S _S _S _S _S _S _S Table 1: Auger drillholes and coordinates. NOTES ON SEWA BAY EXPLORATION The following statements apply to the Sewa Bay exploration results: (i) Mineralised intersections are quoted as down hole width.; (ii) The auger holes were sampled using 1m sample lengths. The entire sample was submitted for assay. (iii) Locations are in UTM Zone 56 co ordinates using the AMG66 horizontal datum. (iv) Samples were analysed at ALS Chemex in Townsville. Nickel, cobalt and magnesium by ICP AES on an aqua regia digest. Samples assaying greater than 1.0% Ni are re assayed using an ore grade method suitable for higher grade samples. (v) Sample locations are based on GPS survey. Actual collars are within 10m of stated locations. Competent Persons Statement: The exploration results and exploration targets reported here are based on information compiled by Mr L.D. Queen who is a member of the Australasian Institute of Mining and Metallurgy, and who is employed by Highlands Pacific Limited. Mr Queen has sufficient experience relevant to the style of mineralisation and the type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code 2004 Edition. He consents to the inclusion in the report of the matters based on the information compiled by him in the form and context in which it appears. 5 P age

6 ASX Code: HIG PoMSox Code: HIG Shares on Issue: 789 million Options on Issue: 16.8 million Performance Rights: 14.7 million Directors Ken MacDonald, Chairman John Gooding, Managing Director Mike Carroll Dan Wood Drew Simonsen Bart Philemon Management Craig Lennon, CFO &Co.Sec Larry Queen, Chief Geologist Peter Jolly, GM Projects Ron Gawi, GM Port Moresby For further information, please contact: John Gooding or Craig Lennon Highlands Pacific Media Enquiries to: Simon Jemison Collins St Media About Highlands Pacific Limited Highlands Pacific is a PNG incorporated and registered mining and exploration company listed on the ASX and PoMSoX exchanges. Its major development assets are the US$1.5bn Ramu nickel cobalt project and the Frieda copper gold project; with exploration in progress on the Star Mountains (Nong River, Mt Scorpion, Munbil and Tifalmin) licenses approximately 20km north of the Ok Tedi mine. Highlands also has exploration tenements in the Wau/Bulolo area, close to the new Hidden Valley and Wafi gold projects and Sewa Bay. Star Mountains Prospects* The Star Mountains exploration tenements, which include Nong River EL1312, Mt Scorpion EL1781, Munbil EL2001 and Tifalmin EL1392, are located approximately 20km north of the Ok Tedi mine, in the West Sepik Province, PNG. They lie within the highly prospective New Guinean Orogenic Belt, which hosts the Grasberg, Ok Tedi, Porgera and Hidden Valley mines, as well as the Frieda deposit. An exploratory drilling program is underway at Star Mountains. Ramu Nickel Cobalt Mine The Ramu nickel mine is located 75km west of the provincial capital of Madang, PNG. Highlands 8.56% interest in Ramu will increase to 11.3% at no cost to Highlands after repayment of its share of the project debt (estimated to paid by 2018). From commissioning, Highlands has access to its pro rata 8.56% share of Ramu s post debt servicing, net cash flow. Highlands also has an option to acquire an additional 9.25% interest in Ramu at fair market value, which could increase the company s interest in the mine to 20.55%, if the option is exercised. Frieda Copper/Gold Project* The Frieda copper gold project is located 175kms north west of the Porgera gold mine and 75km north east of the Ok Tedi mine. The project owners are Glencore Xstrata (manager) and Highlands Pacific. * Subject to the right of the Independent State of Papua New Guinea to acquire up to a 30% equity interest in any mining development in the country. Website: 6 P age