Enters Option Agreement to Acquire the Historic Nemesis High Grade Gold Project
Perth, Mar 6, 2018 AEST (ABN Newswire) - Rumble Resources Ltd (
ASX:RTR) ("Rumble" or "the Company") is pleased to announce that it has signed a binding option agreement to acquire the Nemesis high grade gold project (M20/33), which is located 40km's north of Cue in the Murchison Goldfields of Western Australia. The tenement area is 141.6 ha.
Highlights
Nemesis High Grade Gold Mine - M20/33
Historic production:
- From 1900-1910, the Nemesis gold mine produced:
o 7157oz of gold from 2276 ton of ore - 98 g/t Au grade
Nemesis Potential
- The Nemesis Shear Zone that hosts the Nemesis Au mine is prospective for:
o Mineralised strike and depth extensions with potential to host high-grade shoots similar to the Nemesis ore body.
-- No drilling has tested the depth extension of the Nemesis deposit below 40m.
-- Previous drilling focused on delineating shallow oxide mineralisation with all historic RC drilling tested only to a vertical depth of 35m.
o Near surface laterite/saprolite mineralisation.
-- The Nemesis Shear Zone extends under a laterite plateau to the east and has not been drill tested.
- The northern portion of the tenement M20/33 has a series of high order gold in soil anomalies that lie some 1100m east along strike from the Bottle Dump Au Mine.
o Shallow RAB drilling (maximum depth of 30m) only partly tested the gold in soil anomalism.
- During the option period Rumble will target drilling for high grade gold lodes at the Nemesis mine area scheduled for April 2018
Rumble has been implementing a clear strategy to proactively identify and review mining 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 Keillor.
Rumble has recently added the Earaheedy High Grade Zinc project, Munarra Gully high grade Copper Gold Project and now the Nemesis high grade gold project to its portfolio.
All 4 projects will be drilled tested in 2018 along with the Company's Fraser Range projects (being drilled by the Company's JV partner IGO), providing shareholders with multiple near-term catalysts for the Company to have a significant re-rating, with each drill program a chance to make high grade discoveries.
Geology and Mineralisation (see image 1 in link below)
The Nemesis Project covers a wide sequence (> 1 km) of east-west trending intercalated mafic volcanics and banded iron formations (BIF). Most of the project lies over a prominent lateritic plateau which rises some 35m above the general topography. In the southern portion of the project, an east-west trending mineralised shear zone forms the contact between the north sequence of mafic volcanics/BIF's and granites to the south. The shear zone occurs close to the scarp of the lateritic plateau.
The Nemesis Shear Zone
The mineralisation style associated with the Nemesis Shear Zone (NSZ) is high-grade gold with quartz veining in high sulphidation (pyrrhotite/pyrite) zones in contact with BIF/mafic volcanics and granites. The NSZ is steeply dipping to the north. Sub-vertical shoots (i.e. the Nemesis mine) have generally short strike lengths with significant dip length extensions.
The historic workings at the Nemesis Au mine have been worked to a maximum depth of 70m with three steep plunging high-grade gold (average grade of 121 g/t Au) shoots (85deg to the east) over a strike length of 60m. The shoots are stacked and the plunge of the stacking is moderate to the east. RC drilling along strike to the east was very shallow (maximum vertical depth of 35m) and did not test the plunging mineralisation.
The historic production of the Nemesis gold mine was in two stages.
- Mining started in 1900 and 5,538.86 oz of gold was produced from 2,075 tons for 83 g/t Au.
- In 1909, another 1618.14 oz of gold was produced from 201 tons for 250 g/t Au.
- The total production is 7157 oz of gold from 2,276 tons for an average weighted grade of 98 g/t.
The Nemesis Shear Zone strikes approximately over 1.2 km within the project area and the Nemesis mine area has only been partly tested by shallow RC drilling over a strike of 160m. Refer JORC table (see link below) for Open File reference for all historical data reported.
Gold in soil anomalism (lag sampling) with >50 ppb Au response extends along the NSZ. Over 500m of strike remains untested by drilling including where the NSZ extends under the laterite plateau. There is potential for laterite/saprolite gold mineralisation to the east of the Nemesis Au mine.
No drilling has tested the depth extent of the main Nemesis lodes.
Bottle Dump Shear Zone (see image 1 in link below)
The northern portion of the Nemesis Project lies on top of the laterite plateau. Lag sampling completed in 1992 highlighted strong gold in soil anomalism (peak value - 865 ppb Au) which is interpreted to be associated with the eastern extension of the Bottle Dump Shear Zone (informal). The Bottle Dump Au mine lies some 1100m to the west of the western boundary of the Nemesis Project. The deposit (initial resource of 142,000t @ 4.23 g/t Au) was mined in the late 1990's. The Bottle Dump Au mineralisation is associated with sulphidation of BIF and plunges steeply to the east.
RAB drilling within the Nemesis Project completed over parts of the gold in soil anomalism is considered to be too shallow to effectively delineate potential steep plunging high grade shoots. Most holes were to a depth of 20m with some to 30m depth. Approximately half of the >50 ppb Au in soil anomalism was partially tested.
Exploration Model and Next Steps
Inspection by Rumble of the Nemesis Au mine and the nearby Bottle Dump Au mine has determined the high-grade gold mineralisation is associated with steep east plunging shoots within steep north dipping shear zones. Previous exploration focused on shallow strike extensive gold mineralisation along the shears rather than high grade dip length extensive shoots.
During the option period Rumble will target high grade gold lodes mineralisation at the Nemesis mine area.
Exploration Steps
- Map and determine the plunge extent of the known mineralisation to generate drill targets.
- RC drilling
Rumble is fast tracking the exploration with drilling of identified targets scheduled April 2018.
Key Commercial Terms of the Option Agreement
Rumble has signed a binding 12-month option agreement with Stonevale Enterprises Pty Ltd ("Vendor") to acquire an 80% interest in the Nemesis project based on the below terms:
a. RTR to expend a minimum $60,000 before it can withdraw from the option agreement.
b. RTR to pay 1-year of rent and rates for the initial option period.
c. Rumble can extend the option for a further 6 months for $25,000 in cash payment to Vendor.
d. Rumble can exercise the option to acquire 80% of the project by paying A$250,000 in cash or RTR shares at any time during the 12-month option period.
e. Vendor is free carried to BFS.
f. Following the completion of a BFS and decision to mine, Vendor can either elect to contribute to ongoing project development or dilute to a 1% NSR.
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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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