Zamia Metals Limited (ASX:ZGM) Announce A Significant Resource Increase To 130 Million Tonnes At The Anthony Molybdenum Project
Sydney, Sep 21, 2010 AEST (ABN Newswire) - Zamia Metals Limited (
ASX:ZGM) are pleased to announce an updated resource estimate at the Anthony Molybdenum Project, Queensland.
Updated Resource Estimates
As announced on 6 September 2010, assays have been received for all of the 23 reverse circulation (RC) holes in the recent drilling programme at Zamia's Anthony molybdenum discovery in the Clermont district of central Queensland.
Based on all 54 completed drill results for Anthony, independent resource consultants, Hellman & Schofield Pty Ltd (H&S), have produced an updated resource estimate for the Anthony deposit reported in accordance with the JORC (Joint Ore Reserves Committee) Code and Guidelines.
This new estimate increases the initial Inferred Resource from 81 Mt (announced on 6 April 2010) to 130 Mt at a 0.02% (200 ppm) Mo cut-off grade. The updated resource estimates for the main sulphide zone, near-surface oxide zone and the transition between the two zones are summarised in Table 1 (see link at the bottom of the release).
Based on drilling to date, Anthony contains high grade sulphide zones of 15 million tonnes at over 700 ppm Mo within a large molybdenum deposit. As previously reported on 13 May 2010, initial tests suggest that lower grade material above 450 ppm Mo can be cheaply pre-concentrated to around 1000 ppm Mo. Further testing on this process is continuing.
As indicated in Figure 1 (please refer to the link at the bottom of the release), drilling has identified three high grade sulphide molybdenum zones (>700 ppm Mo) close to surface; these would most likely provide the focus for initial mining in any future operation.
In addition to the sulphide Mo resource, there is a resource of 62 Mt of oxide and mixed oxide-sulphide material at 0.02% (200 ppm) Mo cut-off grade in a zone 60 - 80m thick from surface to the base of complete oxidation. This oxide molybdenum from surface could, potentially, become viable, particularly as this material will need to be removed prior to mining the underlying sulphide molybdenum. A metallurgical programme to investigate beneficiation and leaching options for this oxidised material at Anthony is continuing. Zamia notes that Climax Molybdenum successfully utilised an extraction process for oxidised molybdenum in the 1960s.
Resource Extension Drilling
Review of the updated geology and assay data indicates that the Mo resource remains open at depth and to the southeast. Deep diamond drilling is now underway on two sections testing the high-grade western zone. Further deep drilling is planned if these initial holes are successful.
To date, only relatively shallow drilling has been carried out. Of the 54 holes drilled, 10 holes have been drilled to a maximum vertical depth of only 130m and 33 holes to a maximum depth of between 180m and 280m. 28 holes assayed greater than 200 ppm Mo at the bottom of the hole. These results support the potential for molybdenum concentrations to extend below the current drilling depths.
Further RC drilling is also being planned to both in-fill the existing resource and to test the extension of the resource to the southeast beyond the newly-discovered high grade mineralisation.
Future Programme
Following this resource estimate upgrade, Zamia plans the following programme during the remainder of 2010:
- Continue to drill two deep diamond holes to test for depth extensions of the Anthony resource (Holes RCD55 & RCD56).
- Based on assessment of all information, carry out additional deep diamond drilling and further drilling of the wider area around Anthony.
- Update the resource estimate based on the deep diamond holes.
- Continue with metallurgical testwork and other elements of a scoping study for a molybdenum mining and processing operation based on the Anthony resource.
- Drill shallow gold targets at the Frankfield Hill and West Lucky Break prospects in the Company's Mazeppa tenement (EPM 14790).
- Drill a gold and platinum group element ('PGE') target in the Company's Mount Rolfe tenement (EPM 14792).
- Continue geological mapping and soil geochemical surveys in other tenements to define targets for drill testing.
Hellman & Schofield Resource Estimation Notes
A block model with dimensions of 20m x 20m x 6m was constructed and the base of complete oxidation and the base of partial oxidation were modelled from drill hole digital data. The average surface elevation is 321m, the base of complete oxidation is at 254m and the base of transition is at 243m resulting in an average oxidation thickness of 67m and an average transition thickness of 11m. Densities were assigned on advice from Zamia. Completely oxidised material is assigned a density of 2.3, transition a density of 2.4 and fresh material 2.6.
The mineralisation appears to have a diffuse contact with the country rock (Anakie Metamorphics). Due to the preliminary nature of this work, a detailed geological model was not constructed though with the "soft boundary" nature of the mineralisation contact it is likely that the imposition of hard boundaries will be inappropriate unless barren intrusive phases or faults are identified. Several grade models were constructed. Two different softwares were used and the results plotted on sections in juxtaposition with the data. The results for Mo grades are virtually identical for the two outcomes. At cut-off grades from 100 to 500 ppm Mo the average difference between the two sets of results is approximately 2%.
The searches for both these outcomes were conducted in three passes: 60m x 60m x 40m to 120m x 120m x 80m with maximum and minimum data of 32 and 10 to 32 and 6. Passes 1 & 2 are classified as Inferred Resources and Pass 3 as potential which does not qualify as a resource estimate but rather as Exploration Results and are not reported. A dip of 60 degrees to the west was assigned to the search.
Due to the preliminary nature of this work a confidence category of Inferred is appropriate.
For the complete Zamia Metals announcement including tables and figures, please refer to the following link below:
http://www.abnnewswire.net/media/en/docs/63759-ASX-ZGM-606372.pdf
About Zamia Metals Limited
Zamia Metals Limited (ASX:ZGM) is an Australian mineral exploration company, targeting the Clermont district of central Queensland, a known gold and emerging porphyry mineral province. Numerous targets for gold, copper and molybdenum have been identified by geochemical and geophysical surveys. The Clermont district is highly prospective for gold, copper and other metals including molybdenum. The Belyando Gold Project is Zamia's flagship project – potentially a porphyry-style gold deposit including historic Belyando Gold Mine
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