Acquisition of New Tenement
Perth, Feb 5, 2014 AEST (ABN Newswire) - With reference to the announcement made by Padbury Mining Limited (
ASX:PDY) on the 29th January 2014, please kindly find an updated announcement relating to the acquisition of the new tenement E52/2993.
The new tenement E52/2993, (formerly E52/1851, E52/2163 & E52/2412), consisting of 18 sub blocks is located in close proximity to its current holdings in the Peak Hill mining district. Padbury Mining Limited has acquired all mineral rights to the tenement.
The Peak Hill district forms part of the inland Gascoyne region that surrounds the historic Peak Hill goldfields. It is an area that has become the focus of exploration activity for iron ore by Padbury Mining Ltd and the tenement is contiguous to its existing holdings.
The decision to proceed with the acquisition follows a comprehensive review and assessment of geological data held by Meteoric Resources, a former owner of the tenement.
A key strategy within the company's three year Business Plan is the diversification and growth of the company's project opportunities through extensive exploration and acquisition of new tenements/projects with a view to positioning itself as a key participant in the development of iron ore projects in the Mid-West region of Western Australia.
The acquisition of this tenement falls clearly within that strategy particularly given its proximity to Padbury's existing tenements and its alignment with the Mt Padbury exploration target areas as can be seen in Figure 1 in link below.
Padbury believes the tenement is highly prospective for iron mineralisation. The tenement is approximately 15 km from the settlement of Peak Hill and 114 km north of the town of Meekatharra in the Mid-West region of Western Australia. The rocks of the area include the Palaeoproterozoic Bryah and Padbury Groups in the west and the Yerrida Group to the east and southeast. The ironrich rocks of the Padbury Group form a prominent magnetic anomaly.
The project covers the eastern limb and fold hinge area of the Millidie Syncline, including the Robinson Range Formation (see Figure 1 in link below), which is a Proterozoic sequence of banded iron formation, siltstone and haematitic shale. The tenement covers a cumulative strike length of about 13 km of iron formations.
Studies of remote sensing images and aeromagnetic data, together with the historical sampling results (see Figure 1 and Appendix 1 link below), have outlined several areas of potential haematite and/or goethite enrichment, providing attractive targets for initial exploration.
Meteoric Resources conducted a reconnaissance visit to E52/1851 in February 2010 during which 12 reconnaissance rock chip samples were taken and sample sites photographed. The iron results varied from 28 to 66% Fe (see Table 1) and are considered encouraging for the potential of the BIFs to host iron mineralisation.
Table 1. Meteoric Rock chip results---------------------------------------------------------Sample MGA N MGA E Description Fe %---------------------------------------------------------RR001 7157562 656925 Quartz–hematite ironstone, weakly bedded 28.25---------------------------------------------------------RR002 7157813 657611 Massive, weakly bedded goethite–hematite ironstone 64.65---------------------------------------------------------RR003 7157820 657600 Massive black ironstone 57.91---------------------------------------------------------RR005 7157798 657565 Cherty, bedded BIF, weakly magnetic 43.39---------------------------------------------------------RR007 7157817 657313 Weakly bedded dark-brown hematite replacing shale. Minor vughy quartz. Duplicate 58.11---------------------------------------------------------RR008 7157051 657325 Massive dark-brown ironstone 59.43---------------------------------------------------------RR009 7157890 657347 38 m ironstone chip sample, massive, dark brown, some shale replacement 43.37---------------------------------------------------------RR010 7157965 657404 42 m ironstone chip sample, chocolate brown, massive 42.71---------------------------------------------------------RR011 7157985 657424 30 m ironstone chip sample, dark brown, massive to weakly bedded. Duplicate 58.16---------------------------------------------------------RR012 7156777 657040 Cherty BIF on ridge top. Duplicate 31.99---------------------------------------------------------RR013 7157324 656885 Dark-brown shaly ironstone rubble 59.59---------------------------------------------------------
The haematite and goethite occurrences are interpreted to result from alteration and enrichment of the magnetite-bearing BIF, particularly in areas of complex folding. Significantly, mapping by GSWA has already confirmed the presence of haematite and goethite deposits on the tenement.
As consideration for the acquisition of the tenement and geological data, Padbury Mining Ltd will issue fifty three million fully paid ordinary Padbury Mining shares to the recipients listed hereunder;
1. Glen Shivlock 45 million shares
2. Meteoric Resources Ltd 8 million shares
The acquisition of the tenement, with associated data, will improve the company's asset base as it moves towards the monetisation of its core iron ore assets.
To view diagrams, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-PDY-666814.pdf
Contact
Gary Stokes
Managing Director
T: +61 8 6460 0250
Terry Quinn
Executive Chairman
T: +61 8 6460 0250
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