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ASX RELEASE | 15 January 2013 | ASX:PIR
POSITIVE DRILLING EXTENDS MINERALISATION AT FEKOLA
Results from the initial ten holes of the 2013 drilling program at the Fekola Project have confirmed
the extension of gold mineralisation, both along strike and at depth;
Majority of intercepts are external to the Mineral Resource Estimate (‘MRE’) released in July 2012;
Thick zones of mineralisation intersected including 71 metres @ 4.93 g/t, 59 metres @ 2.18 g/t,
and 45 metres @ 2.15 g/t gold; and
Extension and exploration drilling continues, aimed at aggressively growing the Fekola resource
base and testing priority targets along the Fekola Corridor.
Papillon Resources Limited (‘Papillon’ or ‘the Company’) is pleased to announce the results of the
first 10 holes completed in the 2013 drilling program at the Company’s flagship Fekola Project (‘Fekola’
or ‘the Project’), located in south western Mali.
The Project currently hosts a Mineral Resource Estimate (‘MRE’) which comprises 40.1 million tonnes
averaging 2.4 g/t gold for a contained 3.14 million ounces of gold at a lower cut-off grade of 1.0 g/t gold.
The results of the first ten holes, representing approximately 4,900 metres of diamond drilling, have
demonstrated that the mineralised system extends below and to the north of the previously released
MRE area at Fekola. Importantly, these results continue to demonstrate the continuity of the system, in
terms of both thickness and grade, outside of the current MRE area. Better intercepts include:
From Depth
(Down Hole)
Hole No.
Down Hole Intercept
FKD 117
25m @ 2.58 g/t
71m @ 4.93 g/t
292m
337m
FKD 122
59m @ 2.18 g/t
287m
FKD 114
45m @ 2.15 g/t
287m
FKD 118
27m @ 3.37 g/t
25m @ 2.46 g/t
9m @ 3.24 g/t
264m
215m
303m
FKD 120
10m @ 5.24 g/t
31m @ 2.88 g/t
271m
292m
FKD 116
16m @ 3.84 g/t
430m
Papillon Resources Limited | ASX : PIR
T: +61 8 9225 5485 | F: +61 8 9322 6558 | E: [email protected] | W: www.papillonresources.com
PO Box 5528 PERTH WA 6831 AUSTRALIA | ABN: 96 119 655 891
ASX Release |15 January 2013 | ASX:PIR
For personal use only
The 2013 drilling campaign, which commenced in November 2012, is now well underway and is
specifically targeting resource growth at the Fekola Project. Prior to a short break in activities for the
Christmas period, the exploration team had completed a total of 18 diamond holes for approximately
8,300 metres of drilling.
With the resumption of the drilling program post the Christmas break there are now four rigs onsite
including one reverse circulation (‘RC’) rig, two diamond drill (‘DD’) rigs and a multipurpose diamond/RC
rig. A further RC rig is due to arrive on site imminently. The program will continue to focus on
aggressively expanding the MRE (extending the mineralisation along strike and at depth) as well as
testing numerous priority targets within the Fekola Corridor.
All assays from the 2012 drilling program, which focussed on the infill of the existing MRE area, have
now also been received providing a complete drilling database from the 2012 program. The complete
database will be incorporated into a revised MRE, which will firm up and increase the classification of the
current, predominantly Inferred, MRE to the higher confidence categories. The revised MRE is
anticipated to be completed in the first quarter of 2013 and will form the basis for the Project’s PreFeasibility Study (‘PFS’).
Following the release of the positive results of the Scoping Study, which demonstrated the Project can
support an average annual production profile of 231,000 ounces over a minimum eleven year mine life
with operating cost estimates averaging US$596 per ounce over the life of mine, the Company continues
to focus on rapidly advancing the exploration, appraisal and potential development of this outstanding
project.
2
Enquiries:
Mark Connelly
Managing Director & CEO
+61 8 9225 5485
Hayden Locke
Corporate Executive
+61 8 9225 5485
ASX Release |15 January 2013 | ASX:PIR
For personal use only
Introduction
Papillon is pleased to report the initial set of assay results from the 2013 drilling program at the Company’s
flagship Fekola Project, located in south western Mali (Figures 1 and 2).
Figure 1: Fekola Project – Location Map
Figure 2: Mali West – Regional Geology, Gold Deposits and Papillon Tenements
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ASX Release |15 January 2013 | ASX:PIR
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Mineral Resource Estimate and Scoping Study
The Project currently hosts a Mineral Resource Estimate (‘MRE’) of 40.1Mt averaging 2.4 g/t for a contained
3.14Moz of gold at a lower cut-off grade of 1.0 g/t (refer ASX Announcement dated 4 July 2012).
Fekola Project
Mineral Resource Estimate - July 2012
Indicated Resource
Inferred Resource
Total Resource
Tonnage
(million tonnes)
Grade
(g/t gold)
Contained Gold
(million ounces)
10.5
2.75
0.93
30
2.3
2.21
40.1
2.4
3.14
Notes: The resource is reported at a lower cut-off grade of 1.0 g/t gold
The resource is estimated on a 100% basis of which 90% is attributable to Papillon
All figures are rounded to reflect appropriate levels of confidence. Apparent differences occur due to rounding
A Scoping Study on the Project was completed in October 2012 which confirmed the technical and economic
viability of the Fekola Project (refer ASX Announcement dated 17 October 2012). The positive results from the
study utilised a base case scenario average annual production of 231,000oz of gold (245,000oz steady state)
over a minimum eleven year life, with a life of mine average cash operating cost of US$596/oz.
The capital cost for the Project is estimated to be US$298m comprising US$160m for the processing plant and
US$138m for project infrastructure. The Scoping Study results confirm the potential for strong economics on
the Project which has the capacity to generate average pre-tax cash margins of approximately US$145m per
annum, at a gold price of US$1,300/oz, over the life of mine.
Papillon has commenced a PFS on the Project and anticipates completion of this study in the second quarter
of 2013.
2013 Exploration Program
The 2013 exploration drilling program, which commenced in November, consists of a mix of reverse circulation
(‘RC’) and diamond (‘DD’) drilling. Currently, Papillon has one RC, two DD rigs and a multi-purpose DD/RC rig
operating at Fekola, with a further RC rig due to arrive onsite this week.
The approximately 100,000 metre program, which is scheduled to be completed prior to the onset of the wet
season in July 2013, will be focussed on aggressively expanding the MRE (extending the mineralisation along
strike and at depth) and testing numerous priority targets within the Fekola Corridor (Figure 3).
The key objectives of the current drilling campaign are to:
•
•
•
4
Expand the MRE at Fekola, down dip and along plunge of the existing mineralisation;
Test a number of priority targets along and near the Fekola Corridor (Figure 3); and
Facilitate the refinement of the existing geological model and the generation of additional exploration
targets regionally surrounding the Fekola Project.
For personal use only
ASX Release |15 January 2013 | ASX:PIR
Figure 3: Fekola Project – Priority Drill Targets 2012/2013
The program will also include the drilling required as part of the Definitive Feasibility Study (‘DFS’), which is
anticipated to commence in the third quarter of 2013.
Drilling Results
The results of the first ten holes completed in the 2013 drilling program, totalling approximately 4,900 metres
of diamond drilling have been received. All ten holes are collared outside of the existing MRE and the majority
are extensional to the existing MRE, which was released in July 2012.
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ASX Release |15 January 2013 | ASX:PIR
For personal use only
Better intercepts include:
From Depth
(Down Hole)
Hole No.
Down Hole Intercept
FKD 117
25m @ 2.58 g/t
71m @ 4.93 g/t
292m
337m
FKD 122
59m @ 2.18 g/t
287m
FKD 114
45m @ 2.15 g/t
287m
FKD 118
27m @ 3.37 g/t
25m @ 2.46 g/t
9m @ 3.24 g/t
264m
215m
303m
FKD 120
10m @ 5.24 g/t
31m @ 2.88 g/t
271m
292m
FKD 116
16m @ 3.84 g/t
430m
These results are significant in that they clearly demonstrate that the mineralised system extends below, and
to the north of, the previously released MRE area at Fekola. Drill hole FKD 120 indicates the mineralised
structure continues a further 320 metres to the north of the current MRE area at this depth (Figure 5).
Furthermore, drill holes FKD 114 and FKD 117 show that mineralisation continues down dip, below the
existing MRE.
Importantly, these results continue to demonstrate the continuity and open nature of the system outside the
MRE area.
All significant intersections returned from the new drill holes, along with the details of the collar positions, dips,
azimuths and depths, are summarised in Table 1.
2012 Drilling Results and Updated MRE
All assays from the 2012 drilling program, which focussed on the infill of the existing MRE area, have now also
been received providing a complete drilling database from the 2012 program. The complete database of
drilling results to date will be incorporated into a revised MRE with a view to upgrading the resource
classification of the current, predominantly Inferred MRE, to the higher confidence categories.
The revised MRE is anticipated to be completed in the first quarter of 2013 and will form the basis for the
Project’s PFS.
Geological Setting
Gold mineralisation at Fekola is hosted within a sequence of finely laminated quartzite, fine grained
sedimentary rocks and mafic intrusive rocks. The mineralised zone is characterised by the strong association
between gold and widespread silicification and pyrite alteration.
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ASX Release |15 January 2013 | ASX:PIR
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The alteration consists primarily of hematite, carbonate, albite, pyrite and a strong pervasive silicification
producing a very typical jasperoid rock that is usually the host of the gold mineralisation. Mineralisation trends
in a north-north-west orientation with the broad mineralised package dipping steeply to the west at
approximately 80 degrees. A high grade shoot is observed to be shallowly plunging at approximately 20
degrees in a north-north-west trend.
Figure 4: Fekola Drill Hole Location Map and Significant Intercepts
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ASX Release |15 January 2013 | ASX:PIR
Figure 5: Fekola Long Section
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ASX Release |15 January 2013 | ASX:PIR
9
Approx. Resource
Boundary
5.14
Approx. Resource
Boundary
Figure 6: Fekola Cross Section – 1387400mN & 1387480mN
For personal use only
ASX Release |15 January 2013 | ASX:PIR
Approx. Resource
Boundary
Approx. Resource
Boundary
Figure 7: Fekola Cross Section – 1387640mN & 1387800mN
Figure 8: Fekola Cross Section – 1387960mN
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ASX Release |15 January 2013 | ASX:PIR
Competent Persons Statement
For personal use only
The information in this Report that relates to Exploration Results is based on information compiled by Mr Andrew Boyd of
Cairn Geoscience Limited. Mr Boyd is a Member of the Australian Institute of Geoscientists and has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (‘The JORC Code’). Mr Boyd consents to the inclusion in this
Report of the statements based on his information in the form and context in which it appears.
The information in this Report that relates to Mineral Resources is based on information compiled by Mr Nic Johnson of
MPR Geological Consultants. Mr Johnson is a Member of the Australian Institute of Geoscientists and has sufficient
experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which
he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (‘The JORC Code’). Mr Johnson consents to the inclusion in this
Report of the statements based on his information in the form and context in which it appears.
The information in this Report that relates to Metallurgical Test Work and Scoping Study Results is based on information
compiled by Mr Glenn Bezuidenhout of DRA Mineral Projects. Mr Bezuidenhout is a Fellow of The South African Institute of
Mining and Metallurgy, and has sufficient experience, which is relevant to the style of mineralisation and type of deposit
under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (‘The JORC
Code’). Mr Bezuidenhout consents to the inclusion in this Report of the statements based on his information in the form and
context in which it appears.
Forward Looking Statement
Statements regarding plans with respect to the Company’s mineral properties are forward-looking statements. There can be
no assurance that the Company’s plans for development of its mineral properties will proceed as currently expected. There
can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any
mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company’s mineral
properties.
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ASX Release |15 January 2013 | ASX:PIR
For personal use only
Table 1: Summary of Diamond Drill Hole Intersections
Drill Hole
ID
Easting
(m)
Northing
(m)
FKD_112
241900
1387324
FKD_113
241940
FKD_114
Depth
(m)
Azim
0
()
Dip
0
()
From
(m)
To
(m)
Length
(m)
510
90
-55
1387160
499
90
-55
241900
1387400
552
90
-55
FKD_115
FKD_116
241940
241820
1387000
1387800
554
461
90
90
-55
-55
FKD_117
241860
1387640
452
90
-55
FKD_118
241900
1387800
452
90
-55
FKD_119
241940
1387960
372
90
-55
FKD_120
241860
1387960
526
90
-55
FKD_122
241847
1387480
500
90
-55
262
278
300
333
252
284
218
248
287
357
188
301
402
430
292
327
337
215
247
258
264
303
186
201
233
254
271
286
292
343
287
411
264
289
310
336
256
289
233
250
332
361
191
302
408
446
317
329
408
240
253
260
291
312
190
205
250
259
281
290
323
350
346
414
2
11
10
3
4
5
15
2
45
4
3
1
6
16
25
2
71
25
6
2
27
9
4
4
17
5
10
4
31
7
59
3
Grade
(g/t)
2.36
1.58
1.32
1.52
1.09
1.21
1.66
1.39
2.15
1.35
1.41
3.22
2.17
3.84
2.58
3.32
4.93
2.46
1.35
3.36
3.37
3.24
3.21
3.01
1.58
2.32
5.24
2.10
2.88
2.91
2.18
2.46
Notes:
1. Co-ordinates are in UTM grid (WGS 84 Zone 29P) and have been measured by GPS (+/- 5m accuracy).
2. Samples at 1m intervals.
3. All Intercepts calculated using a 1.0 g/t lower cut and no upper cut.
4. Intervals are all down-hole length.
5. Assaying conducted by SGS Analabs in Mali using industry standard 50g lead collection fire assay with AAS finish.
6. Reference standards, field duplicates and blank samples are routinely inserted; quality control samples are routinely monitored.
0
7. The broad mineralised zone dips to the west at approximately 80 . Local variations in mineralisation dip occur within the broad
mineralised zone.
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