Option Agreement to Acquire Munarra Gully Cu-Au Project
Perth, Feb 27, 2018 AEST (ABN Newswire) - Rumble Resources Ltd (
ASX:RTR) ("Rumble" or "the Company") is pleased to announce that it has signed binding option agreements to acquire tenements E51/1677 and M51/122 that form the Munarra Gully Cu-Au Project (with Ni - Co potential) ("Munarra Gully") some 50km NNE of the town of Cue within the Murchison Goldfields.
Highlights
Rumble is targetting a highly prospective ultramafic intrusion with significant copper gold mineralisation and elevated nickel- cobalt.
- White Rose Prospect - M51/122
o Current surface small scale gold mining has delineated wide zones of copper and gold in shallow oxide.
o Shallow historic RAB drilling has defined mineralisation over a width of at least 50m with the copper mineralisation open along strike and at depth with significant potential at depth for copper sulphide mineralisation
Exceptional copper-gold mineralisation defined at the White Rose Prospect with historic shallow RAB drilling results (see Note below) include:
o 40m @ 0.66% Cu, 4.85 g/t Au from surface to EOH.
-- Inc 8m @ 1.32% Cu, 22.75 g/t Au from 24m
o 34m @ 0.75% Cu, 0.46 g/t Au from surface to EOH.
o 20m @ 0.54% Cu, 1.52 g/t Au from surface to EOH.
- Grab sampling completed by Rumble and others identified consistent copper in weathered ultramafic rocks exposed in two small pits currently being mined for gold. Results (33 samples) include:
o Average of 0.68% Cu (all 33 samples)
-- Up to 2.1% Cu.
o Au to 1.9 g/t, Ni to 0.37% and Co to 0.11%.
- Preliminary assessment of regional aeromagnetic data indicates a potential association with the copper mineralisation with magnetic "blowouts" along a ENE trending ultramafic intrusion.
o At least four "blowout" targets have been identified with approximately 8km of strike potential untested (for Cu-Ni-Co) ultramafic intrusion occurs within E51/1677 (100km2).
- Previous exploration of the Munarra Gully Project was for gold with no systematic exploration for Cu - Ni - Co with only select copper assays completed with the historic drilling.
- Rumble will commission a ground TEM survey in March over the White Rose Prospect to aid in delineating semi to massive copper and/or nickel sulphides conductors associated with the ultramafic intrusion.
- Rumble to drill test these first order targets in April.
- Surface geochemistry is planned in March to cover "blowout" targets.
Rumble has been implementing a clear strategy to proactively identify and review exploration opportunities that complement the Company's flagship Braeside High Grade Zinc-Lead project and that must pass a critical review by Rumble's technical director Brett Keilor.
The Munarra Gully Project has met these stringent criteria and will provide shareholders with another near-term opportunity to find a world class base and precious metal deposit, with drilling of identified targets to be scheduled in April 2018.
Project Exploration Status
The Munarra Gully project comprises of two tenements, E51/1677 (97.5km2) and M51/122 (111 ha). Previous exploration has focused generally on gold with shallow RAB and RC drilling on both tenements.
White Rose - M51/122
No official gold production is known however during the 1980's an extensive alluvial gold operation covered most of M51/122 with a reported production of "12,300t of surface alluvium producing 234 oz of gold" (refer JORC table for Open File reference). During the 1980's and 1990's exploration including drilling was conducted over the general area (partly including M51/122). The drilling (RAB, auger and RC) was shallow with the focus on defining shallow oxide gold resources. RAB drilling was generally 40m or less (angled) and the RC drilling was up to 100m (angled). Composite (4m) RAB assays returned wide zones of low to moderate grade copper (in oxide) which was partly associated with lower grade oxide gold within weathered ultramafic (talc-chlorite-tremolite) intrusive rocks. In general, only minor Cu assays were completed.
Historic RAB drilling intercepts (4m composites) from the area near the two small open cuts include (see image 2 in link below):
- 40m @ 0.66% Cu, 4.85 g/t Au, surface to EOH.
o Includes 8m @ 1.32% Cu , 22.75 g/t Au from 24m
- 34m @ 0.75% Cu, 0.46 g/t Au, surface to EOH.
- 20m @ 0.54% Cu, 1.52 g/t Au, surface to EOH.
Over the last 8 to 10years, the current owner established a small gold plant (ball mill and Knelson concentrator) to process shallow saprolitic (oxide) gold mineralisation defined by the previous RAB drilling. Although there are no official production records, there is approximately 1000t of tailings. The owner developed two small open cuts (down to 20m) which exposed a weathered (nontronite-talc saprolite) ultramafic intrusion at least 50m in width.
The ultramafic unit did not surface and was covered by alluvium and hardpan which masked the copper anomalism.
Previous exploration within E51/1677 focused primarily on gold exploration with wide spaced RAB drilling assaying only for gold and arsenic. To the west of E51/1677, an area of felsic volcanics attracted extensive Cu, Zn, Pb, Ag, Au exploration.
With the exposure of the copper bearing ultramafic unit at the White Rose Prospect by the recent small scale mining, the potential for disseminated to massive copper +/- nickel sulphide mineralisation is high as the ultramafic unit can be traced magnetically over a strike of at least 8km
Field inspection of the ultramafic intrusion along the inferred magnetic position (see image 3 in link below) indicates it is mostly under cover and where exposed, is significantly weathered.
Although subject to confirmation by drilling, the copper bearing ultramafic intrusion is closely associated with magnetic "blowouts" - see image 3 in link below - and appears to be slightly adjacent (lies to the north) to the main magnetic unit. Within E51/1677, at least four (4) "blowout" targets can be inferred and a preliminary review of Open File data indicates no systematic copper - nickel exploration has been completed over these targets.
Exploration Potential
Rumble considers the Munarra Gully Project as having high potential for economic copper mineralisation with nickel and gold associated with an extensive ultramafic intrusion striking over 8km. No systematic exploration has been completed over the proposed "blowout" targets.
At the White Rose Prospect, some 250 m of prospective ultramafic intrusion strike with strong copper and gold has been confirmed and the mineralisation is completely open to the west and at depth.
Proposed Exploration
Rumble plans to completed ground TEM (transient electromagnetic) traverses over the White Rose copper bearing ultramafic to aid in delineating conductors for deeper RC drilling. Within E51/1677, surface geochemistry is planned to test the "blowout" targets.
Planned Exploration includes:
- Ground TEM on M51-122 over the White Rose Ultramafic and extensions.
o Planned for March 2018.
- RC drilling of conductors/ultramafic - White Rose Prospect.
o Planned for April 2018.
- Surface Geochemistry over the "Blowout" targets in E51/1677.
o Subject to regolith and cover, programme may be maglag or auger.
o Planned for March 2018
Key Commercial Terms of the Option Agreements
Rumble has signed binding option agreements for E51/1677 and M51/122.
1. M51/122 Terms
Rumble has signed a binding option agreement with Radman Mining Pty Ltd and agreed to pay A$30,000 in cash and $30,000 in RTR ordinary shares (calculated using 5 day VWAP) to secure a 12-month exclusivity period to finalise due diligence.
If Rumble elects to exercise the option within the 12-month exclusivity period, Rumble agrees to enter a joint venture agreement to acquire up to 100% of the title and interest in M51/122 based on the below terms:
a. Rumble to pay $50,000 Cash and $50,000 RTR ordinary shares within 30 days from the joint venture agreement.
b. Rumble to make payment of $50,000 Cash and $50,000 RTR ordinary shares within 12 months from the joint venture agreement to earn 80% on the mineral rights excluding gold.
c. RTR guarantees the statutory annual expenditure.
d. Rumble has the option to acquire 80% of the gold mineral rights by paying A$500,000 in RTR shares, cash or a mixture of both at any time within 5 years of the joint venture agreement.
e. Rumble has the option to acquire the remaining 20% of all mineral rights by paying A$1,000,000 in cash at any time after acquiring 80% of mineral rights.
f. Radman Mining Pty Ltd is free carried to decision to mine.
g. Following a decision to mine, Rumble will pay a one off cash royalty of $1,500,000.
2. E51/1677 Terms
Rumble has signed a binding option agreement with Marjorie Ann Molloy and agreed to pay A$20,000 in cash and $20,000 in RTR ordinary shares (calculated using 5 day VWAP) to secure a 12-month exclusivity period to finalise due diligence.
If Rumble elects to exercise the option within the 12-month exclusivity period, Rumble agrees to enter a joint venture agreement to acquire up to 80% of the title and interest in E51/1677 based on the below terms:
a. Rumble to pay $75,000 Cash and $75,000 RTR ordinary shares within 30 days from the joint venture agreement.
b. Rumble to make payment of $25,000 Cash and $25,000 RTR ordinary shares within 12 months from the joint venture agreement to earn 80% on all mineral rights.
c. RTR guarantees the statutory annual expenditure.
d. Marjorie Ann Molloy is free carried to BFS.
e. Following the completion of a BFS and decision to mine, Marjorie Ann Molloy can either elect to contribute to ongoing project development or dilute to a 1% NSR.
Note: RAB results are composites and only indicative of grade and width
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About Rumble Resources Ltd
Rumble Resources Limited (ASX:RTR) (FRA:20Z) is an Australian based exploration company, officially admitted to the ASX on the 1st July 2011. Rumble was established with the aim of adding significant value to its current gold and base metal assets and will continue to look at mineral acquisition opportunities both in Australia and abroad.
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