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In accordance with ASX Listing Rule 3.10A the Company gives notice of the release of ASX restricted securities on 22 October 2008 as follows:
- 700,000 Unlisted Officers Options – exercisable at 30 cents, expiry 22 October 2010.
Yours faithfully,
M. Gannon
Company Secretary
Intersection of Massive Copper Sulphide at Nakru 1, Potential for Significant Copper - Gold Mineralisation at Nakru 2 - |
Peter Swiridiuk, Managing Director, commented “the intersection of copper sulphide mineralisation at Nakru-1 at 97m depth is very encouraging, as it provides us with potential for significant grades of copper beneath a blanket of gold mineralisation. The ground geophysics will help us target further holes to determine tonnage potential of copper. We are also now quite excited about the potential of significant mineralisation at the Nakru-2 polymetallic system and will begin drilling this month to test for depth extensions of mineralisation in a potentially large 700m diameter area of mineralisation”.
NAKRU 1
From both historical (pre-2008) and current exploration, eighteen drill holes totalling over 1,900m have been completed (refer to Figure 1) including over 400m drilled in six holes this year (refer to Table 1).
Deeper diamond drill holes, planned to continue to at least 300m depth, are testing for extensions of copper-gold-molybdenum mineralisation in a blind porphyry system beneath a thick layer of gold mineralisation hosted in stockwork breccia with disseminated sulphides, which has been intersected in the upper 50m of some of the drillholes.
The first deep diamond drillhole at the Nakru-1 prospect (NAK017A) intersected massive copper sulphides below about 90m depth (refer to Photo 1).
Table 1: Nakru Drill Hole Summary (2008)
Hole |
Prospect |
Easting |
Northing |
Azimuth (degrees) |
Dip (degrees) |
Depth |
NAK013 |
Nakru 1 |
222062 |
9338936 |
0 |
-90 |
33.8 |
NAK014 |
Nakru 1 |
222073 |
9338900 |
0 |
-90 |
54.6 |
NAK015 |
Nakru 1 |
222101 |
9338906 |
0 |
-90 |
55.4 |
NAK016 |
Nakru 1 |
222029 |
9338884 |
0 |
-90 |
51.4 |
NAK017 |
Nakru 1 |
222009 |
9339024 |
190 |
-60 |
Currently at 175m |
The three dimensional ground geophysical I.P. survey over Nakru-1 has been completed and will help define extensions of copper mineralisation and further drill targets. Surface trenching has been completed in order to define structurally controlled gold targets at surface (refer to Figure 1). Assay results of the trenching and drilling are expected this month.
Photo 1: Drillhole NAK-017A containing Massive Copper Sulphide (CuFeS2) at 97.70m
FIGURE 1
NAKRU 2
At Nakru-2 prospect, historical (pre-2008) trenching exposed significant copper and gold mineralised intervals including 25m at 1.44% copper and 10m at 1.16g/t gold and 155 ppm molybdenum. Rock chip sample grade results included 19.9% copper. Upon completion of drilling at the Nakru-1 prospect this week, two drillholes, A and B (refer to Figure 2) are planned to test these trench intersections. The intersections occur within a 700m diameter circular structural feature, interpreted to be related to an intrusive breccia system (refer to Figure 2). Historical airborne Dighem geophysical data and preliminary results from the yet to be modelled three dimensional I.P. survey (refer to Figure 3 and 4) indicate a 400m by 250m wide zone of high chargeability (>20 m.s) and conductivity in this same area, interpreted to represent copper sulphide related mineralisation.
Recent rock samples taken from Nakru-2 (refer to Photos 1 and 2) were interpreted by petrology examination as occurring from a hydrothermal breccia containing various proportions of quartz, sericite and copper sulphide. Rock sample NAK-01 (refer to Photo 2) contains up to 10% copper sulphide (chalcopyrite, covellite and chalcocite), indicating potentially significant copper mineralisation at depth.
Photo 2: Siliceous Breccia Outcrop containing Chalcopyrite (CuFeS2) and Covellite (CuS)
Photo 3: Breccia Clast containing 10% Chalcopyrite (CuFeS2), Covellite (CuS) and Chalcocite (Cu2S)
FIGURE 2
For further information please contact:
Peter Swiridiuk, Managing Director, Coppermoly Ltd. Phone (07) 5592 1001
Bernadette Sukkar, Associate Director, Novus Capital Ltd. Phone (02) 9375 0114
Peter Swiridiuk
MANAGING DIRECTOR
The information in this report that relates to Exploration Results is based on information compiled by Peter Swiridiuk, who is a Member of the Australian Institute of Geoscientists. Peter Swiridiuk is employed by Coppermoly Ltd.
Peter Swiridiuk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Swiridiuk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
| Annual Report for year ended 30 June 2008 - 26 September, 2008 |
We enclose the Annual Report for the year ended 30 June 2008.
The Annual General Meeting of Shareholders will be held at The Paradise Room, Gold Coast Turf Club, Racecourse Drive, Surfers Paradise, Queensland on Wednesday 19th November 2008 at 1.00pm.
Yours faithfully
M. Gannon
Company Secretary
| Nakru Drilling in Progress - 27 August, 2008 |
Diamond core drilling is underway at the Nakru 1 prospect after the Company successfully secured a drill rig for the Nakru project drilling programme.
The objective of the Nakru 1 drilling programme is to test for breccia-hosed polymetallic copper-gold-molybdenum mineralisation and blind porphyry copper-gold+/-molybdenum mineralisation associated with an inferred sub-surface intrusion in the area.
Two of the four planned 50m deep holes have already been drilled and the third is currently being drilled to confirm the presence of a vent and test the extents of gold mineralisation. Stockwork breccia has been noted in the first two drill holes, similar to that which contained anomalous gold results in the surface trenching. At least two deeper (300m) holes will test for gold bearing fissures at depth (Figure 1: Sites 5 and 6). A minimum of two by 300m deep holes will test the large tonnage porphyry model at Site 7 and 8. The Company anticipates the drilling results will begin to be made available from mid September.
Trenching is continuing at Nakru 1 in order to define the limits of mineralisation of gold, copper, molybdenum and tellurium at surface (Figure 1). Already over 1,700m has been trenched with 60 samples collected to date.
Geophysical Induced Polarisation lines have been cut at Nakru 1 and Nakru 2 (Figure 2) in readiness for the survey to begin this week. The survey will help define sulphide hosted drill targets at Nakru 2 and sulphide and/or silica hosted targets at Nakru 1. The survey may also help orientate the planned deeper drill holes at Sites 7 and 8 at Nakru 1.
At Nakru 2, historical trenching had previously exposed significant polymetallic copper+gold+zinc+/-(molybdenum) targets within a 700m diameter circular feature which is now interpreted to be related to breccia pipe style mineralisation. Highlights of the historical trench sampling included 25m at 1.43% copper (Photo 1), 4m at 6.6% copper and 25m at 1.06 g/t gold. Soil sampling had previously outlined a copper-gold soil anomaly with rough dimensions of 400m by 200m. Historical grab sampling of mineralised outcrop gave assay values of 19.9% copper, 22% zinc and 260 ppm molybdenum.
For further information please contact:
Peter Swiridiuk, Managing Director, Coppermoly Ltd. Phone (07) 5592 1001
Bernadette Sukkar, Associate Director, Novus Capital Ltd. Phone (02) 9375 0114
Peter Swiridiuk
MANAGING DIRECTOR
The information in this report that relates to Exploration Results is based on information compiled by Peter Swiridiuk, who is a Member of the Australian Institute of Geoscientists. Peter Swiridiuk is employed by Coppermoly Ltd.
Peter Swiridiuk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Swiridiuk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Photo 1: Nakru 2 Prospect Copper (1.43%) in Trench
FIGURE 1
FIGURE 2
| Significant Copper Intersections Expand Known Copper Mineralisation at Simuku - 25 August, 2008 |
The ongoing drilling programme at the Nayam and Tobarum prospects in Simuku is providing significant copper intersections which expands on known areas of mineralisation.
- Drillhole SMD18 at Nayam, using a 0.2% copper equivalent* cut-off (see notes for explanation), intersected 32m at 0.71% copper, 136ppm molybdenum, 0.08 g/t gold and 1.29 g/t silver (0.87% copper equivalent*) at 42m depth.
- Drillhole SMD21 at Tobarum, using a 0.2% copper equivalent* cut-off (see notes for explanation), intersected 44m at 0.38% copper, 26ppm molybdenum, 0.11 g/t gold and 2.45 g/t silver (0.46% copper equivalent*) at surface to 44m depth. From 308m depth, 56.8m of 0.40% copper, 76ppm molybdenum, 0.05g/t gold and 2.8g/t silver (0.51% copper equivalent*) were intersected to the bottom of the hole.
Peter Swiridiuk, Managing Director, commented “results in Hole SMD21 at Tobarum ended in 0.51% copper equivalent, indicating continued copper potential at depth. This expands on our area of significant mineralisation as SMD21 is over 800m south of the Nayam prospect which intersected 32m at 0.87% copper equivalent. With two drilling rigs currently on-site, we have drilled 2,646.6 metres in 11 drill holes and plan to continue drilling copper and molybdenum target areas for about two more months. Trenching and mapping will continue in order to define copper and molybdenum mineralisation extents at surface and help target drill holes”.
TOBARUM PROSPECT (Figures 1 and 2):
SMD21
This hole was drilled to test 39m at 0.49% copper in Trench 5, angled to intersect a north-northwest structural trend. Copper mineralisation in this hole (see Table 1 and 4 below) occurs within quartz feldspar porphyry. Relatively barren late intrusive occurs between 277m to 308m. Core recoveries were generally good at greater than 96%.
From (m) |
To (m) |
Width (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq % |
0 |
44 |
44 |
0.38 |
26 |
0.11 |
2.5 |
0.46 |
73 |
92 |
19 |
0.26 |
15 |
0.06 |
1.3 |
0.30 |
98 |
133 |
35 |
0.27 |
18 |
0.08 |
1.1 |
0.33 |
166 |
183 |
17 |
0.26 |
32 |
0.12 |
1.3 |
0.34 |
194 |
239 |
45 |
0.37 |
86 |
0.08 |
1.0 |
0.48 |
250 |
258 |
8 |
0.26 |
67 |
0.06 |
0.8 |
0.34 |
269 |
277 |
8 |
0.31 |
105 |
0.04 |
1.9 |
0.43 |
299 |
302 |
3 |
0.22 |
16 |
0.03 |
2.0 |
0.26 |
308 |
364.8 |
56.8 |
0.40 |
76 |
0.05 |
2.8 |
0.51 |
NAYAM PROSPECT (Figures 1 and 2):
SMD18
This hole targeted copper mineralisation beneath a leached cap with haematite in Trench 11 and angled across a structural trend. In SMD18, mineralisation (see Table 2 and 4 below) occurs within quartz porphyry and a pyritic zone at 144m depth. Quartz feldspar porphyry is reported at 241.4m depth below an intrusive unit. Drilling and trenching at Nayam continue to help determine the extent of mineralisation. Core recoveries in this hole were generally greater than 90%.
From (m) |
To (m) |
Width (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq % |
0 |
115 |
115 |
0.39 |
84 |
0.07 |
1.7 |
0.50 |
Including |
|
|
|
|
|
|
|
42 |
74 |
32 |
0.71 |
136 |
0.08 |
1.3 |
0.87 |
152 |
172 |
20 |
0.24 |
63 |
0.05 |
1.2 |
0.32 |
185 |
210 |
25 |
0.22 |
17 |
0.05 |
2.8 |
0.27 |
210# |
300# |
|
|
|
|
|
|
# NB: 90m of results are pending between 210m and 300m
Table 2: SMD18 Assay Results
SMD19
Further assay results continue to be received for SMD19 from 122m to 181m depth (see Tables 3 and 4 below). Core recoveries in this hole were generally greater than 93%.
From (m) |
To (m) |
Width (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq % |
8 |
101 |
93 |
0.59 |
68 |
0.07 |
2.5 |
0.69 |
Including |
|
|
|
|
|
|
|
18 |
36 |
18 |
1.0 |
140 |
0.11 |
4.4 |
1.2 |
103 |
133 |
30 |
0.37 |
142 |
0.07 |
1.8 |
0.53 |
135 |
174 |
39 |
0.32 |
62 |
0.05 |
1.4 |
0.40 |
NB: 165.1m of results are pending between 181m and 346.1m
Table 3: SMD19 Assay Results
Details of drilling for 2008 are summarised below (refer to Figure 1):
Hole |
Prospect |
Easting |
Northing |
Azimuth (degrees) |
Dip (degrees) |
Depth |
SMD17 |
Tobarum |
169701 |
9367796 |
0 |
vertical |
177.3m |
SMD18 |
Nayam |
169718 |
9368292 |
30 |
-60 |
299m |
SMD19 |
Nayam |
169734 |
9368202 |
30 |
-60 |
346.1m |
SMD20 |
Tobarum |
169802 |
9367998 |
0 |
vertical |
375.9m |
SMD21 |
Tobarum |
169631 |
9367378 |
280 |
-60 |
364.8m |
SMD22 |
West Tobarum |
169469 |
9367814 |
vertical |
-90 |
261.4m |
SMD23 |
Stan’s Hill |
169022 |
9367728 |
vertical |
-90 |
100.4m |
SMD24 |
Magipmo North |
168895 |
9368782 |
100 |
-50 |
307.4m |
SMD25 |
Nayam |
169587 |
9368242 |
30 |
-60 |
300m |
SMD26 |
Nayam |
169735 |
9368202 |
210 |
-60 |
Currently at 45m |
SMD27 |
Tobarum |
169657 |
9367664 |
100 |
-75 |
Currently at 69.3m |
Table 4: Drilling Summary (datum AGD66, zone 56)
For further information please contact:
Peter Swiridiuk, Managing Director, Coppermoly Ltd. Phone (07) 5592 1001
Bernadette Sukkar, Associate Director, Novus Capital Limited. Phone (02) 9375 0114
Peter Swiridiuk
MANAGING DIRECTOR
The information in this report that relates to Exploration Results is based on information compiled by Peter Swiridiuk, who is a Member of the Australian Institute of Geoscientists. Peter Swiridiuk is employed by Coppermoly Ltd.
Peter Swiridiuk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Swiridiuk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Notes:
The copper equivalent* values for intersections, in addition to individual metal values, are quoted, as they provide the most meaningful comparisons between different drill holes and trenches. Management cautions, however, that as metal prices change the copper equivalent* value will change. The copper equivalent* is calculated as follows:
Metal (assay results) |
Metal Price |
Factors |
Value Calculation |
Metal value US$ |
|||||
A |
B |
C |
|||||||
1 |
Copper |
Cu |
ppm |
3.80 |
US$/lb |
453.59 |
ppm/lb |
1A x (1B/1C) |
M |
2 |
Molybdenum |
Mo |
ppm |
33.60 |
US$/lb |
453.59 |
ppm/lb |
2A x (2B/2C) |
N |
3 |
Gold |
Au |
g/t |
946.00 |
US$/oz |
31.103 |
g/oz |
3A x (3B/3C) |
O |
4 |
Silver |
Ag |
g/t |
18.28 |
US$/oz |
31.103 |
g/oz |
4A x (4B/4C) |
P |
Sum of metal values |
S |
M+N+O+P |
|||||||
Metal equivalent in Copper ppm |
Cu.Eq |
S / 1B x 1C |
|||||||
Metal equivalent Cu.Eq has been calculated using metal prices as of 15 July 2008.
- *Copper Equivalent is the contained copper, gold, silver and molybdenum that are converted to an equal amount of pure copper and summed (based on assays of mineralised rock and actual metal prices). It is used to allow interpretation of the possible theoretical ‘value’ of mineralised rock, without consideration of the ultimate extractability of any of the metals.
- Copper Equivalent* herein is based upon metal prices of US$3.80/lb Cu, US$946/oz Au, US$33.60/lb Mo (57% MoO3 conc.) and US$18.28/oz Ag (15 July 2008).
- Island Arc related porphyry copper – gold – molybdenum deposits such as Simuku typically recover contained Cu, Au, Mo and Ag (subject to metallurgical characteristics and prevailing metal prices).
- The ASX requires a metallurgical recovery be specified for each metal, however, no testwork has ever been undertaken at Simuku and recoveries can only be assumed to be typical for Island Arc porphyry copper – gold – molybdenum – silver deposits in the Southwest Pacific region.
- It is the Company's opinion that each of the elements included in the metal equivalents calculation has good potential to be recovered if the project proceeds to mining.
- Drilling samples were transported to the camp site, logged, photographed and sampled at 1 metre intervals from core split by saw. The split samples are then transported to the town of Kimbe where they are air freighted to Intertek in Lae (PNG) for sample preparation. Samples are dried to 106 degrees C and crushed to 2-3 mm. Samples greater than 2kg are rifle split down to 1.5kg and pulverised to 75 microns. The final 300g sized pulp samples are then sent to Intertek laboratories in Jakarta for geochemical analysis. Intertek analyse for gold using a 50g Fire Assay with Atomic Absorption Spectroscopy finish. Other elements are assayed with ICP-AES (Inductively Coupled Plasma Atomic Emission Spectrophotometry) Finish. Copper values greater than 1% are re-assayed using a multi acid digest (hydrochloric, nitric, perchloric and hydrofluoric acid) to leach out the copper with an ICP finish. Molybdenum samples greater than 100ppm were check assayed using X-Ray diffraction. Intertek laboratories have an ISO 17025 accreditation
FIGURE 1
FIGURE 2
| Final Director's Interest Notice - 4 August, 2008 |
| Change of Board - 31 July, 2008 |
Mr Doug Hutchison has stepped down, for personal reasons, as a Director of Coppermoly Limited, with effect from 30 July 2008. Mr. Hutchison will remain Chief Technical Geological Consultant to the Company.
- Doug has been an Executive Director of the Company since its initial public offering (IPO) and listing on ASX in 2008. During that period the Company has fully established its exploration base in Kimbe, West New Britain and has instigated substantial exploration programmes on the Simuku and Mt. Nakru projects.
The Board wishes to thank Mr Hutchison for his valuable contributions to the company’s IPO and the planning and implementation of the technical programme. The company looks forward to Doug’s continuing contribution in a consulting capacity.
Mr Maurice Gannon has been appointed as Company Secretary with effect from 30 July 2008. Maurice has over twenty years experience in business and financial management and a professional background in earth and environmental sciences. He is a graduate and Affiliate Member of the Australian Institute of Chartered Secretaries and also holds a Bachelor of Science degree. Maurice is also a Member of the Australian Institute of Company Directors, the Australasian Institute of Mining and Metallurgy and AMPLA – the Australian Resources and Energy Law Association and is an Associate Fellow of the Australian Institute of Management.
Maurice replaces Mr Garry Edwards who will continue as Assistant Company Secretary.
The Board also wishes to thank Mr Edwards for his valuable contributions to the company’s IPO and the establishment and management of the Company Secretarial, financial and administrative functions. The company also looks forward to Garry’s continuing contribution.
For further information please contact:
Peter Swiridiuk, Managing Director Coppermoly Ltd. Phone (07) 5592 1001
Bernadette Sukkar, Associated Director, Novus Capital Ltd. Phone (02) 9375 0114
Peter Swiridiuk
MANAGING DIRECTOR
The information in this report that relates to Exploration Results is based on information compiled by Peter Swiridiuk and Doug Hutchison, who are Members of the Australian Institute of Mining and Metallurgy. Peter Swiridiuk and Doug Hutchison are employed by Coppermoly Ltd.
Peter Swiridiuk and Doug Hutchison have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Swiridiuk and Doug Hutchison consent to the inclusion in the report of the matters based on their information in the form and context in which it appears
| Quarterly Report for 30/06/08 - 30 July, 2008 |
HIGHLIGHTS
- The initial drilling and trenching program during 2008 at Simuku have given the best results to date. SMD19, intersected 93m from 8m depth of 0.59% copper, 68ppm molybdenum, 0.07g/t gold and 2.5g/t silver (0.69% copper equivalent*).
- Over 1833m of drilling completed in seven drill holes at Simuku
- Over 2600m of trenching completed at Simuku
- Drill pads prepared at Mt.Nakru with a drilling rig currently on-site
- 7,500m of cleared track access lines completed and ready for the geophysical Induced Polarisation survey at Mt.Nakru
- Option Entitlements Issue raised $205,000
1.0 SUMMARY
Coppermoly’s projects are located in a highly mineralised region and the islands of New Guinea themselves have a relative abundance of large copper-gold-molybdenum deposits including OK Tedi, Frieda River, Porgera, Yandera, Lihir and Panguna (Figure 1).
Coppermoly Limited holds title to three exploration licences EL 1077 (Simuku), EL 1043 (Mt.Nakru) and EL 1445 (Talelumas) located on the Island of New Britain, PNG. The Talelumas tenement was granted for a period of two years on 29th May, 2008 and ensures coverage of most of the known mineralisation in the immediate areas surrounding the Simuku tenement (Figure 3).
These advanced exploration tenements enclose three separate, large, porphyry copper-gold-molybdenum systems, namely Simuku, Nakru 1 and Nakru 2. The projects are close to required infrastructure for development (Figure 2) and the recent track access upgrade has allowed easy access to roads, an airfield and a deep water port. Drilling programmes are well underway in order to define a substantial resource on at least one of these advanced projects within the next 12 to 18 months.
Historical exploration completed on the projects includes some 54 drill holes, over 40 kms of bulldozer/excavator trenching, geophysical surveys and extensive soil and other geochemical surveys.
Topography at the projects is moderate at between 300m and 800m above sea level, enabling relatively easier conditions for on-site development and logistics. Good landowner relations exists and local labour is sought from landowners.
The exploration areas are close to infrastructure and services on the Island of New Britain. The Provincial capital of Kimbe, where the company’s exploration base is located, has a population of approximately 16,000.
Figure 1: Papua New Guinea Hosts Large Copper and Gold Orebodies
Figure 2: Coppermoly Projects on New Britain Island
For a complete review of Coppermoly Ltd please refer to www.coppermoly.com.au.
2.0 EXPLORATION AT SIMUKU (EL 1077)
Within EL 1077 and EL 1045 (Figure 3), copper mineralisation occurs at the Simuku and Kulu prospects with gold mineralisation at the Kulu and Talelumas prospects.
At the Simuku prospect, porphyry style copper-molybdenum-gold mineralisation is known over an area of about 4.5km by 2.2km (Figure 3). More than 23 km of bulldozer trenching and 23 drill holes have defined a large 3,500m by 650m anomalous copper envelope with inner anomalous molybdenum envelope (Figure 4).
Several copper-molybdenum drill targets have been defined at the Simuku prospect. Trenching is being undertaken at Magipmo and Nayam copper targets as well as at the Horseshoe Molybdenum zone (Figure 5).
Figure 3: Regional Mineralisation at EL 1077 and EL 1445 with Magnetics Image
Figure 4: Simuku Copper and Molybdenum Mineralisation
Over 1833m of drilling has been completed this year in seven diamond drill holes (see Table 1 below) at the Simuku site.
Table 1: Simuku 2008 Drill Collar Table (co-ordinates are in AGD66, zone 56)
Drill Hole |
Prospect |
Easting |
Northing |
Azimuth (degrees) |
Dip (degrees) |
Current Depth |
SMD17 [Site D] |
Tobarum |
169701 |
9367796 |
0 |
-90 |
177.3m |
SMD18 [Site A] |
Nayam |
169718 |
9368292 |
30 |
-60 |
299m |
SMD19 [Site B] |
Nayam |
169734 |
9368202 |
30 |
-60 |
346.1m |
SMD20 [Site C] |
Tobarum |
169802 |
9367998 |
0 |
-90 |
375.9m |
SMD21 [Site E] |
Tobarum |
169631 |
9367378 |
280 |
-60 |
365.8m |
SMD22 [Site F] |
West Tobarum |
169469 |
9367814 |
0 |
-90 |
Currently at 204.9m |
SMD23 |
Stan’s Hill |
169022 |
9367728 |
0 |
-90 |
Currently at 65m |
A total length of 2200m of trenching/access has been completed to the Magipmo site and 400m of trenching has been completed at Nayam (Figure 5). The Magipmo target area may represent a higher level in the porphyry system and is perhaps down faulted relative to Tobarum/Nayam.
The initial drilling and trenching program during 2008 at Simuku have given the best results to date, including all historical work. SMD19, using a 0.2% copper equivalent* cut-off, intersected 93m from 8m depth of 0.59% copper, 68ppm molybdenum, 0.07g/t gold and 2.5g/t silver (0.69% copper equivalent*).
Hole SMH12, at one end of the Nayam trench (Figure 6) encountered significant mineralisation with intersections such as 91.3m from 0 to 91.3m at 0.43% copper, 81ppm molybdenum, 0.06g/t gold (0.52% copper equivalent*).
Nayam Prospect:
Drill hole SMD19 (Figure 6) targeted copper mineralisation within intrusive in historical drill holes:
- SMH07 - 63m at 0.52% copper, 65 ppm molybdenum, 0.12g/t gold, 2.1g/t silver (0.64 % copper equivalent*) from surface; and
- SMH11 - 77m at 0.49% copper, 85 ppm molybdenum, 0.11g/t gold, 2.0 g/t silver (0.62 % copper equivalent*) from surface.
In SMD19, molybdenite can be seen in the core samples and mostly confined to structures. Pyrite and chalcopyrite occur disseminated in quartz feldspar porphyry mapped at surface and throughout the drill hole in a pyritic zone beneath weathered leached material in Nayam trench (see Tables 2 and 3 below), which has copper mineralisation open at both ends (Figure 6). Hole SMD19 had core recoveries greater than 93%.
Table 2: SMD19 Assay Results (0.2% Cu.Eq cut-off)
From (m) |
To (m) |
Width (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq%* |
8 |
101 |
93 |
0.59 |
68 |
0.07 |
2.5 |
0.69 |
Including |
|
|
|
|
|
|
|
18 |
36 |
18 |
1.0 |
140 |
0.11 |
4.4 |
1.2 |
103 |
122# |
19 |
0.37 |
76 |
0.07 |
1.6 |
0.48 |
# NB: 224.1m of results are pending between 122m and 346.1m
Table 3: Nayam Trench Results (0.2% Cu.Eq cut-off)
From (m) |
To (m) |
Length (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq%* |
0 |
117 |
117 |
0.61 |
86 |
0.10 |
2.6 |
0.74 |
Tobarum Prospect:
SMD17 (Figure 6) was drilled to test below significant copper results intersected in Trench 4 which had results of 63m at 0.47% copper, including 18m at 0.74% copper in exposed quartz porphyry.
Copper mineralisation in drill hole SMD17 (see Table 4 below) occurs as disseminated chalcopyrite within a matrix of quartz feldspar porphyry. Core recoveries were generally good at greater than 93%.
Table 4: SMD17 Assay Results (0.2% Cu.Eq* cut-off)
From (m) |
To (m) |
Width (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq%* |
7 |
20 |
13 |
0.37 |
22 |
0.07 |
3.5 |
0.44 |
27 |
80 |
53 |
0.27 |
15 |
0.05 |
1.6 |
0.31 |
88 |
98 |
10 |
0.29 |
28 |
0.07 |
1.0 |
0.34 |
113 |
115 |
2 |
0.20 |
12 |
0.05 |
1.0 |
0.24 |
124 |
155 |
31 |
0.20 |
51 |
0.07 |
2.0 |
0.29 |
162 |
164 |
2 |
0.41 |
47 |
0.06 |
1.3 |
0.48 |
167 |
177.3 |
10.3 |
0.26 |
26 |
0.04 |
2.2 |
0.31 |
The first 50m of SMD17 included episodic structural events with mineral association as indicated by the crosscutting structures. Oxidation from the surface extends to 10m (0-10m) with weakly leached argillic clay + haematite- quartz+/-pyrite. The next 20m (11-30m) appear to be of quartz – magnetite-pyrite+/-haematite fractures and bluish green fractures. Beyond 30m is primary sulphide especially pyrite–chalcopyrite+/-galena/sphalerite-/+pinkish veins.
SMD20 was drilled to test the extensions of copper mineralisation within interpreted intrusive rock in the lower part of historical drill hole SMD03 (Figure 6), which intersected 50.2m at 0.5% copper, 40 ppm molybdenum, 0.06 g/t gold and 2.5 g/t silver (0.57% copper equivalent*) from 100m to 150.2m.
Copper mineralisation in drill hole SMD20 (see Table 5 below) occurs disseminated within a matrix of quartz feldspar porphyry. Core recoveries were generally good at greater than 96%.
Table 5: SMD20 Assay Results (0.2% Cu.Eq* cut-off)
From (m) |
To (m) |
Width (m) |
Cu % |
Mo ppm |
Au g/t |
Ag g/t |
Cu.Eq%* |
8 |
19 |
11 |
0.24 |
24 |
0.05 |
1.9 |
0.29 |
26 |
42 |
16 |
0.18 |
31 |
0.04 |
1.1 |
0.23 |
50 |
61 |
11 |
0.20 |
108 |
0.16 |
4.7 |
0.38 |
68 |
85 |
17 |
0.26 |
49 |
0.03 |
1.7 |
0.32 |
103 |
159 |
56 |
0.22 |
38 |
0.04 |
1.9 |
0.28 |
174 |
233 |
59 |
0.26 |
23 |
0.05 |
4.2 |
0.32 |
250 |
375.9 |
125.9 |
0.36 |
74 |
0.06 |
1.4 |
0.46 |
The copper grade in drill hole SMD20 is improving with depth as illustrated by the intersection of 125.9m of 0.36% copper, 74ppm molybdenum, 0.06 g/t gold and 1.4 g/t silver (0.45% copper equivalent*) from 250m to 375.9m.
Copper Equivalent*
The mineralisation at Simuku consists of copper, molybdenum, gold and silver. The copper equivalent* is calculated as follows:
Metal (assay results) |
Metal Price |
Factors |
Value Calculation |
Metal value US$ |
|||||
1 |
Copper |
Cu |
ppm |
3.80 |
US$/lb |
453.59 |
ppm/lb |
1A x (1B/1C) |
M |
2 |
Molybdenum |
Mo |
ppm |
33.60 |
US$/lb |
453.59 |
ppm/lb |
2A x (2B/2C) |
N |
3 |
Gold |
Au |
g/t |
946.00 |
US$/oz |
31.103 |
g/oz |
3A x (3B/3C) |
O |
4 |
Silver |
Ag |
g/t |
18.28 |
US$/oz |
31.103 |
g/oz |
4A x (4B/4C) |
P |
Sum of metal values |
S |
M+N+O+P |
|||||||
Metal equivalent in Copper ppm |
Cu.Eq |
S / 1B x 1C |
|||||||
The copper equivalent* values for intersections, in addition to individual metal values, are quoted, as they provide the most meaningful comparisons between different drill holes and trenches. As metal prices change the copper equivalent* value will change.
Notes:
- *Copper Equivalent (Cu.Eq) is the contained copper, gold, silver and molybdenum that are converted to an equal amount of pure copper and summed (based on assays of mineralised rock and actual metal prices). It is used to allow interpretation of the possible theoretical ‘value’ of mineralised rock, without consideration of the ultimate extractability of any of the metals.
- Copper Equivalent* herein is based upon metal prices of US$3.80/lb Cu, US$946/oz Au, US$33.60/lb Mo (57% MoO3 conc.) and US$18.28/oz Ag (15 July 2008). The formula used is as shown on page 1.
- Island Arc related porphyry copper – gold – molybdenum deposits such as Simuku typically recover contained Cu, Au, Mo and Ag (subject to metallurgical characteristics and prevailing metal prices).
- The ASX requires a metallurgical recovery be specified for each metal, however, no testwork has ever been undertaken at Simuku and recoveries can only be assumed to be typical for Island Arc porphyry copper – gold – molybdenum – silver deposits.
- It is the Company’s opinion that each of the elements included in the metal equivalents calculation has good potential to be recovered if the project proceeds to mining.
Drilling samples were transported to the camp site, logged, photographed and sampled at 1 metre intervals from core split by saw. The split samples are then transported to the town of Kimbe where they are air freighted to Intertek in Lae (PNG) for sample preparation. Samples are dried to 106 degrees C and crushed to 2-3 mm. Samples greater than 2kg are rifle split down to 1.5kg and pulverised to 75 microns. The final 300g sized pulp samples are then sent to Intertek laboratories in Jakarta for geochemical analysis. Intertek analyse for gold using a 50g Fire Assay with Atomic Absorption Spectroscopy finish. Other elements are assayed with ICPAES Finish. Copper values greater than 1000ppm are re-assayed using a multi acid digest (hydrochloric, nitric, perchloric and hydrofluoric acid) to leach out the copper with an ICP finish. Molybdenum samples greater than 100ppm were check assayed using X-Ray diffraction. Intertek laboratories have an ISO 17025 accreditation.
Figure 5: Simuku Existing and Proposed Drillholes
Figure 6: Nayam Prospect Area Drillholes
3.0 EXPLORATION AT MT.NAKRU (EL 1043)
The Mt Nakru tenement EL 1043 encloses a large porphyry copper-gold (molybdenum) system located at Nakru-1 and potential for breccia-hosted gold and porphyry-style copper-gold deposits at Nakru-2 (Figure 7).
The Mt Nakru system comprises of four defined prospects, Nakru 1 to Nakru 4. These systems are located within the mineralised Kulu-Awit Corridor, which trends west-northwest through Central New Britain and contains other systems including Kulu (copper-gold), and Simuku (copper-gold).
Track access continues to be upgraded to 4WD status at Nakru 1 and new trenches are being mapped and sampled for gold, copper, molybdenum and tellurium in order to define the limits of mineralisation.
Nakru 1 Prospect:
Nakru 1 is the most advanced of the four prospects and has potential to host a large copper-gold deposit. Deep auger soil sampling, more than 10km of hand and bulldozer trenching and twelve drill holes (totalling 1,499m) have been completed. Highlights of the historical trenching and drilling programmes at Nakru 1 (Figure 8) include:
Trench intercepts of:
95m @ 2.88g/t Au
42m @ 2.7g/t Au
51m @ 2.2g/t Au
25m @ 1.43% Cu
4m @ 6.6% Cu
Drill Intercepts of:
94m @ 0.43% Cu, 0.46g/t Au
205m @ 0.40% Cu, including 74m @ 0.78% Cu
54m @ 0.18g/t Au
Two styles of mineralisation have been recognised:
(a) breccia-hosed polymetallic copper-gold-molybdenum mineralisation in the area tested by historical trenching and drilling; and
(b) blind porphyry copper-gold+/-molybdenum mineralisation associated with an inferred sub-surface intrusion in the area extending east and southeast from the trenched area.
Auger soil sampling has outlined an irregular combined gold-copper-molybdenum-arsenic soil anomaly with approximate dimensions of 800m x 200-300m trending north-northwest (Figure 8).
The work programme at Nakru 1 Prospect involves the upgrading track access, and clearing, mapping, and sampling of old trenches to confirm the location of historical gold intersections. New trenches will be mapped and sampled for gold, copper, molybdenum and tellurium in order to define the limits of mineralisation.
A minimum of 4 x 50m [Figure 8: Sites 1 – 4] deep holes will be drilled to confirm the presence of a vent and test the extents of gold mineralisation. At least two deeper holes will test for gold bearing fissures at depth (Figure 8: Sites 5 and 6). A minimum of 2 x 300m holes will test the large tonnage porphyry model at Site 7 and 8. Drilling pads have been constructed and a diamond drilling rig is currently on-site.
Geophysical I.P. surveying will begin in August to help define drilling targets. A total of 7,500m of lines have been cut in readiness for the survey.
Nakru 2 Prospect:
At Nakru 2 Prospect (Figure 7), bulldozer trenching has exposed significant copper mineralised intervals and local very high copper grades, including 25m at 1.43% Cu; 25m at 1.06g/t Au; 4m at 6.6% Cu; and up to 19.9% Cu in grab samples. No drill testing has been undertaken at Nakru 2 Prospect.
Nakru 2 appears to be polymetallic copper+gold+zinc+/-(molybdenum) target with copper being the predominant metal. The mineralised area is coincident with a circular structural feature, about 700m in diameter, visible on air photos.
The planned work programme will involve re-opening, sampling and mapping of all previous trenches, re-interpreting creek geology and re-sampling creek exposures to develop a geological interpretation in light of a potential breccia pipe model. Geophysical I.P. surveys over the circular feature is planned to help develop drilling targets.
Nakru 3 Prospect:
Nakru 3 Prospect is located approximately 1.7km north of Nakru 1. Reconnaissance rock chip sampling has located values of 5.2g/t Au in a silicified shear zone carrying pyrite and magnetite; up to 2.7% Cu in outcropping altered breccia; and 4.9% Zn, 498g/t Ag in creek float.
Nakru 4 Prospect:
At Nakru 4 Prospect, which is located about 1.2km Northwest of Nakru 1, deep Wacker drilling beneath the young ash cover, which is up to 15.2m thick, defined a semi-coherent anomaly which has dimensions of about 600m x 200-400m. Highlights from the Wacker soil sampling are shown in Table 6.
Table 6: Wacker Drilling Highlights
Width |
Au (av) |
As (av) |
Cu (av) |
Au (peak) |
As (peak) |
Cu (peak) |
100m |
0.21 |
73 |
395 |
0.62 |
202 |
896 |
Figure 7: Nakru 1 and Nakru 2 Air Photo Interpretation
Figure 8: Nakru-1 Proposed Stage 1 Drilling
4.0 TENEMENT TRANSFER
At the time of listing of Coppermoly Ltd, it was agreed that through its wholly owned subsidiary Copper Quest (PNG) Ltd, the tenements EL1077 (Simuku) and EL1043 (Nakru) were to be acquired from New Guinea Gold Ltd. The two tenements were transferred to Copper Quest (PNG) Ltd on the 11th April, 2008.
5.0 CORPORATE
The Company lodged a prospectus with the ASX and ASIC containing a 1 for 4 non-renounceable Entitlements Issue of Options at 1 cent. The Options were issued at a price of one (1) cent each with an exercise price of thirty (30) cents each and an expiry date of 30 April 2011. The terms and conditions of the Options are summarised in Section 5 of the Coppermoly Prospectus (see www.coppermoly.com.au).
The Entitlements Issue raised approximately $205,000. These funds will be used to fund the costs of the Issue and to supplement the Company’s working capital.
For further information please contact:
Peter Swiridiuk, Managing Director Coppermoly Ltd. Phone (07) 5592 1001
Bernadette Sukkar, Associate Director, Novus Capital Ltd. Phone (02) 9375 0114
Peter Swiridiuk
MANAGING DIRECTOR
The information in this report that relates to Exploration Results is based on information compiled by Peter Swiridiuk, who is a Member of the Australian Institute of Geoscientists. Peter Swiridiuk is employed by Coppermoly Ltd.
Peter Swiridiuk has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Swiridiuk consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
| Managing Director Interviewed by Boardroom Radio - 28 July, 2008 |
Coppermoly Limited is pleased to advise that the Company’s Managing Director, Mr. Peter Swiridiuk, has participated in an interview with Boardroom Radio.
In the interview Mr. Swiridiuk discusses Coppermoly’s recent drilling and trenching results at Simuku.
The interview can be accessed over the internet through the following link:
http://www.brr.com.au/event/48694/best-trench-and-drill-results-to-date
Peter Swiridiuk
MANAGING DIRECTOR
| Best Trench and Drill Results at Simuku to Date - 25 July, 2008 |
DRILLING AND TRENCHING RESULTS AT SIMUKU GIVE BEST RESULTS TO DATE
The initial drilling and trenching program at Simuku have given the best results to date, including all historical work.
- SMD19 using a 0.2% copper equivalent* cut-off (see below for explanation), intersected 93m from 8m depth of 0.59% copper, 68ppm molybdenum, 0.07g/t gold and 2.5g/t silver (0.69% copper equivalent* – see below for explanation). Awaiting results from 122 to 346.1m depth.
- An excavator trench, between former hole SMH12 and SMD19 intersected 117m at 0.61% copper, 86ppm molybdenum, 0.10g/t gold and 2.6g/t silver (0.74% copper equivalent*).
Peter Swiridiuk, Managing Director, commented “these results are encouraging, particularly so early in the resource definitive program. Hole SMH12, at one end of the Nayam trench, which was previously drilled by Macmin (PNG) Ltd (now New Guinea Gold Ltd) also encountered significant mineralisation with intersections such as 91.3m from 0 to 91.3m at 0.43% copper, 81ppm molybdenum, 0.06g/t gold (0.52% copper equivalent*). In addition, hole SMD19 was drilled to a depth of 346.1m and assays are still pending for the hole below 122m”.
Copper Equivalent*
The mineralisation at Simuku consists of copper, molybdenum, gold and silver. Copper is predominant in the holes reported in this release but in one previous hole, molybdenum predominated – SMD14 intersected 19m at 0.32% molybdenum and 0.1% copper. In a possible mining operation it is likely that copper, molybdenum, gold and silver will all be recovered and management consider that using a copper equivalent* cut-off of 0.2% provides the best way to present and to compare drill hole data. The copper equivalent* is calculated as follows:
Metal (assay results) |
Metal Price |
Factors |
Value Calculation |
Metal value US$ |
|||||
A |
B |
C |
|||||||
1 |
Copper |
Cu |
ppm |
3.80 |
US$/lb |
453.59 |
ppm/lb |
1A x (1B/1C) |
M |
2 |
Molybdenum |
Mo |
ppm |
33.60 |
US$/lb |
453.59 |
ppm/lb |
2A x (2B/2C) |
N |
3 |
Gold |
Au |
g/t |
946.00 |
US$/oz |
31.103 |
g/oz |
3A x (3B/3C) |
O |
4 |
Silver |
Ag |
g/t |
18.28 |
US$/oz |
31.103 |
g/oz |
4A x (4B/4C) |
P |
Sum of metal values< | |||||||||