YULE LITHIUM-TANTALUM PROJECTS
SUMMARY
•
Lithium-Tantalum projects covering ~430 km2 and dominating an under-explored area of the West Pilbara.
•
Yule South includes ground previously selected for tantalum potential by one of Australia’s most successful
exploration geologists, the late Graeme Hutton (co-founder of Sandfire Resources, Metana Minerals and a
pioneer of the Hamersley Iron Province).
•
No follow-up work completed due to changes in directors, management and commodity/strategic priorities.
•
Drill-ready lithium-tantalum targets identified (by SGC) from airborne geophysics at Yule South.
•
Review of historical drill assay data at Yule North has identified anomalous lithium assays (up to 332 ppm
or 0.07% Li2O equivalent) with associated anomalous values of cesium, in a drill hole targeting iron ore. 1
•
Portree Granite is similar in age and type to the Numbana Granite, which is the interpreted source for the
world-class Wodgina deposits.
•
Also includes conceptual gold targets.
INTRODUCTION
The Yule Projects comprise the Yule North (Harding) tenement and the Yule South (Portree) tenements. Yule
North is comprised of one exploration licence application E 47/3508-I (held by Damien Paul Kelly). It is located
about 45 km west of Port Hedland and covers 164 km2. Yule South is comprised of two contiguous exploration
licence applications E 47/3503-I and E 47/3507-I (held by Advanced Capital Management Pty Ltd). They are
centred approximately 55 km south west of Port Hedland and cover 269 km2.
PORT HEDLAND
332 ppm Li anomaly
Tabba Tabba Ta
1:2 500 000 Interpreted
Bedrock Geology, 2015
Portree Granite
Pilgangoora Li Ta
Wodgina Ta
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
1
Yule Lithium-Tantalum Projects – June 2016
YULE PROJECT BACKG ROUND
Graeme Hutton assembled together a number of greenfields exploration projects for Brumby Resources Limited,
of which Mr Hutton was a director and which listed on ASX in December 2006. One of these projects was the
Munda Project (E 47/1193), which formed part of a group of projects centred around the Yule River around
45 km southwest of Port Hedland in the Pilbara region of Western Australia.
The following sets out the project overview of the Munda Project (the southern part of the project area) as stated
in the Brumby IPO prospectus …
“The southern part of the project area occupies the Mallina Basin which has been intruded by the Portree
Granitoid complex. Certain aeromagnetic anomalies are interpreted to be associated with potential cupola zones
of an intrusive post tectonic granite stock. The cupola zones are considered to be prospective for tantalum
mineralisation similar in style to the nearby world class Wodgina deposit.”
7,740,000 mN
332 ppm Li anomaly
7,725,000 mN
Aeromagnetic image of Brumby’s original Yule projects (IPO prospectus, 2006)
640,000 mE
620,000 mE
7,710,000 mN
20 km
Aeromagnetic image of Yule North and South Projects (GeoviewWA, 2016)
The Portree Granite is of similar age (2,946Ma) and type to the Numbana Granite (2,829 Ma) at Wodgina which
is thought to be the source for the mineralising solutions that deposited the Ta-Li mineralisation.
Graeme Hutton essentially pegged the ground looking for tantalum bearing pegmatites, 2 at a time when tantalum
was the more recognised and appreciated commodity and prior to the more recent discovery and evaluation of
the Pilgangora Lithium-Tantalum project in the Wodgina district. Tantalum is considered to be a significant
pathfinder for Lithium-Tantalum-Cesium (LCT) pegmatites and the area remains a high priority target for LCT
pegmatites.
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
2
Yule Lithium-Tantalum Projects – June 2016
And this based on the Independent Geological Report …
“A widespread layer of alluvial material 2 – 15 m thick covers large parts of the project area, with some thicker
intervals forming in channels where intervals of up to 63 m have been intersected in previous drilling. This cover
has made geochemical exploration methods ineffective and consequently the previous exploration has consisted
mainly of geophysical surveys. The potential for the presence of so far undiscovered mineralisation is high.
There is the potential for lithium, tin and tantalum mineralisation to be located within the tenements as these
metals occur in similar granitoid rocks to the east and southeast of the project areas. There is no record of the
area having been previously explored for lithium, tin or tantalum as the alluvial cover would have deterred the
early prospectors.” 3
SUBSEQUENT EXPLO RATIO N AT YULE
An airborne geophysical survey (100 m spacing) including aeromagnetics, radiometrics and DEM was completed
in November / December 2006. Data was subsequently processed and interpreted by Bruce Craven of Southern
Geoscience Consultants (SGC). A summary interpretation of the targets most relevant to the current project area
is set out in Appendix 1. 4 The Yule South tenements cover part or all of these targets.
Following Mr Hutton’s passing in July 2007 and various management changes, a few years followed with minimal
exploration on Brumby’s Yule projects (other than an aeromagnetic survey on newly acquired ground
immediately north of the original project area), and virtually no exploration at all for LCT pegmatites. 5 The focus
was mainly on other projects and other minerals, such as iron ore.
However, in September 2008 Brumby conducted a further airborne magnetics and radiometric survey on newly
acquired tenements to the north of (but contiguous with) the original tenements (part of this area broadly
corresponds with the Yule North project).
In August 2010, Brumby conducted first pass drilling targeting (from the aeromagnetic interpretation) a
vanadium-bearing magnetite deposit hosted within a layered gabbro complex similar to the nearby Balla Balla
deposit. Two vertical holes were completed before the drilling program was abandoned in part because of the
collapse of holes within the alluvial overburden. 6 These holes were near an area of contact with the Harding
granitoid complex and were on the newly acquired project areas (see figure in Appendix 2 for drill hole locations
and geology map).
The interpretation of the previously flown 2006 aeromagnetic survey data identified a number of targets, (see
Appendix 1, includes some gold targets), including a detached roof pendant, which is considered to be
prospective for lithium, tin, tantalum, and niobium mineralisation associated with coarse fractionated granite. In
late 2010 Brumby planned a drilling programme to test this target with five RC drill holes for a total of ca 1000 m
(see Appendix 3). A POW was submitted on 2 September 2010 and granted on 15 November 2010. 7
However, a significant change in the board and management of Brumby in late 2010, which continued into early
2011, prompted a complete strategic review of all Brumby’s projects, including the Yule projects, to focus on
projects which showed the most immediate commercial potential (including a more advanced manganese
project). This resulted in relinquishment of all Yule projects, 8 with Brumby having drilled only the two RC holes
referred to above, neither of which were on the original tenements selected by Mr Hutton nor were they for the
minerals he considered those original tenements prospective.
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
3
Yule Lithium-Tantalum Projects – June 2016
EXPLORATIO N POTENTIAL
The original hypothesis which Graeme Hutton was looking to test when he pegged the original tenements
remains untested, despite interpretation of closer-spaced aeromagnetics indicating a detached roof pendant,
considered to be prospective for lithium, tin, tantalum, and niobium mineralisation associated with coarse
fractionated granite. These and similarly identified targets are yet to be drill tested.
Although exploring for iron ore, vanadium and titanium (and not for lithium, cesium or tantalum), assays for
almost all elements were procured from the two holes drilled in August 2010. Further, detailed review of the
assay data identified lithium anomalies over the entirety of the assayed samples from one drill hole (BYRC002,
160-194 m ranging from 5 ppm to 332 ppm with many over 100 ppm. 9
The same intersection interval in BYRC002 also contains anomalous values of Cs which is part of the LCT
pegmatite assemblage. The drill logs for this hole indicate that the anomalous Li values are in lithologies
recorded as undefined clays and undifferentiated mafics. Lithium, cesium and tantalum assay results for each
one meter interval are set out in Appendix 4.
Proposed next-stage exploration program (other than drilling):
•
•
•
•
Collection of spoils possibly available from some old drill holes (especially RAB holes; prior to
environmental requirements necessitating rehabilitation) in the area.
Interpretation of 2008 aeromag survey over northern area, targeting the possible source of the very high
lithium anomaly.
Clarifying or determining the depth of the magnetic basement of targets from interpretations previously
identified by Southern Geoscience Consultants.
Bedrock sampling looking for halos.
ABO UT G RAEME J HUTTON
Mr Hutton is a legend in Australian mineral exploration. He was and remains one of Australia’s most successful
prospecting geologists, with over 40 years of experience and a record of success which continued to be proven
even after his passing, including:
•
Pioneer of the Hamersley Iron province – receiving significant royalties from key major iron ore producers.
•
Co-founder of Metana Minerals NL – A star performer of the 1980s.
•
Driving force behind the establishment of Kimberley Diamond Company - which became Australia's second
commercial diamond producer.
•
Co-founder of Sandfire Resources – with its Doolgunna Project being part of the original package of
tenements hand-picked by Mr Hutton for Sandfire.
Mr Hutton had an ambition to advance new conceptual exploration prospects rather than be beholden to
historical workings and the resurrection of worn out prospects – an unconventional thinker looking for really big
discoveries.
Sadly, Mr Hutton passed away in July 2007, prior to Sandfire’s major discovery of the DeGrussa copper-gold
deposit at its Doolgunna project in April 2009, and before his hypothesis underpinning the Yule South Project
could be drill tested.
DISCLAIMER
You should not act or refrain from acting in reliance on this document. This document does not purport to contain all information which its
recipients may require in order to make an informed assessment of the projects described. You must conduct your own investigation and
perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions
contained in this document and making any acquisition or investment decision. No warranties are made in relation to such matters.
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
4
Yule Lithium-Tantalum Projects – June 2016
APPENDIX 1 – TARG ETS DEFINED BY SGC IN 2007 10
Target
YR/21
Priority
1-2
YR/22
YR/23
3
2?
YR/24
3?
YR/25
3?
YR/26
2-3
YR/27
3?
YR/28
YR/29
1-2
1-2
YR/30
YR/31
1-2
2?
YR/32
3?
YR/33
3?
YR/34
2?
YR/35
YR/36
2-3?
2
Description
Zone of increased magnetism along the northern margin of a major granitic complex. Possible distinct
intrusive phase or alteration zone. Similar to YR/29, 30. Sn/Ta or gold target
Local magnetic high within granite. Alteration, xenolith, small intrusive or noise? Gold, Sn or Ta target.
Possible large scale alteration zone around major fault intersection zone. May be within relict greenstones or
sediments, or non magnetic granite. Gold target
Zone of enhanced magnetism within central section of granitic complex. Alteration or distinctly magnetic
intrusive phase. Sn-Ta target, ± gold.
Locally enhanced magnetism within granitic complex. Alteration or distinctly magnetic intrusive phase. Sn-Ta
target, ± gold.
Locally enhanced magnetism near margin of granitic complex. Alteration or distinctly magnetic intrusive
phase. Sn-Ta target, ± gold.
Locally enhanced magnetism within granitic complex. Alteration or distinctly magnetic intrusive phase. Sn-Ta
target, ± gold.
Major fault intersection zone coincident with the granite-Mallina Fm. contact.
Zone of increased magnetism along the northern margin of a major granitic complex. Possible distinct
intrusive phase or alteration zone. Sn/Ta or gold target
Similar to YR/29. Includes possible demagnetized component.
Possible large scale alteration zone around major fault intersection zone. May be within relict greenstones or
sediments, or non magnetic granite. Gold target
Locally enhanced magnetism within granitic complex. Alteration or distinctly magnetic intrusive phase. Sn-Ta
target, ± gold.
Locally enhanced magnetism within granitic complex. Alteration or distinctly magnetic intrusive phase. Sn-Ta
target, ± gold.
Possible localized alteration-demagnetization zone along major, N-S fault. Coincides with interpreted contact
between Mallina Fm./greenstones and granitic complex. Gold target.
Possible localized alteration-demagnetization zone along major, N-S fault. Within Mallina Fm. Gold target.
Discrete magnetic high within Mallina Fm. Localized alteration, discrete intrusive or folded stratigraphy?
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
5
Yule Lithium-Tantalum Projects – June 2016
YR31
YR34
YR35
Yule Lithium-Tantalum Projects – June 2016
APPENDIX 2 – BRUMBY RC DRILLING O F IRON TARGET (2010)* 11
* Current Yule tenement applications E 47/3503-I, E 47/3507-I and E 47/3508-I overlayed with red boundaries (
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
).
7
Yule Lithium-Tantalum Projects – June 2016
APPENDIX 3 – BRUMBY PRO POSED RC DRILLING OF TANTALUM TARGET (2010) 12
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
8
Yule Lithium-Tantalum Projects – June 2016
APPENDIX 4 – BRUMBY BYRC002 LITHIUM, CESIUM AND TANTALUM RESULTS 13
From
(m)
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
To
(m)
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
Li
ppm
165.3
148.6
57.6
31.3
12.5
15.7
23.7
17.2
17.7
12.8
26.3
20.4
40.1
7.8
6.5
8.1
11.4
11.1
12.3
25.9
332.1
84.3
24.0
20.0
5.5
6.4
14.3
90.5
88.0
67.6
110.5
110.2
141.1
101.8
Cs
ppm
7.4
77.2
5.9
5.1
2.9
3.7
4.0
3.6
2.6
2.9
2.6
2.6
5.9
1.8
1.9
2.0
2.2
2.5
2.8
4.2
37.3
8.1
5.3
4.6
1.7
2.7
2.9
2.1
4.1
8.6
4.3
2.0
2.4
2.3
Ta
ppm
0.6
1.7
0.2
0.1
0.2
0.1
0.2
0.2
0.2
0.3
0.2
0.2
0.2
0.1
0.1
0.2
0.1
0.2
0.2
0.2
0.3
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.3
0.2
0.2
0.2
0.2
0.3
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
9
Yule Lithium-Tantalum Projects – June 2016
BYRC002 assay results 180-181m; Li converts to Li2O at Li:Li2O = 1:2.153; Assays sourced from BMY WAMEX Yule River
Project E47/1750, 1730, E45/2939 and E45/3341 Annual Report 1 Oct 2009 to 30 Sep 2010 – see Drill Assay Results in
digital appendices ‘YuleRiver_WADG3_ASS_2010A.txt’
1
Reasonable inference from the fact that Graeme was looking for tin and tantalum in a potential cupola zones of an intrusive
post tectonic granite stock
2
Brumby IPO Independent Geologist Report by Continental Resource Management, slightly edited with the permission of
the original author, John Chisolm of Continental Resource Management.
3
4
BMY WAMEX annual report - YuleGroup AR 17Nov2006-16Nov2007 on E47/1193, E47/1331, 1340 and 1341.
5
DK statement based on review of annual/quarterly reports to ASX, as well as WAMEX reports seen
6
Brumby June 2011 annual report – page 13 ‘Balla Yule Project’
Supported by BMY WAMEX Yule River Project E47/1750, 1730, E45/2939 and E45/3341 Annual Report 1 Oct 2009 to 30
Sep 2010, section 7.2
7
Brumby June 2011 annual report – page 2 ‘Operational’ first bullet, page 4 ‘Overview’ third para and page 13 ‘Balla Yule
Project’ last para
8
BMY WAMEX Yule River Project E47/1750, 1730, E45/2939 and E45/3341 Annual Report 1 Oct 2009 to 30 Sep 2010 –
see Drill Assay Results in digital appendices ‘YuleRiver_WADG3_ASS_2010A.txt’
9
BMY WAMEX Yule Group Project E47/1193, 1331, 1340, 1341 2006 / 2007 Annual Report (table from ‘2_Yule
RiverTargets 807.pdf’ extracted from ‘a076979_appendix_geophysical images_18282488.zip’; image from
‘a076979_ar_yulegroup_2007_18281936.pdf’ page 12); Current Yule tenement applications E 47/3503, 3507 and 3508
overlayed with blue boundaries; Lithium/tantalum targets traced with bolded red line
10
BMY WAMEX Yule River Project E47/1750, 1730, E45/2939 and E45/3341 Annual Report 1 Oct 2009 to 30 Sep 2010 –
page 16; BYRC002 and 003 hole locations manually drawn by DK based on visual comparison of Fig 2 and Fig 3 in the
same report; Current Yule tenement applications E 47/3503, 3507 and 3508 overlayed with red boundaries.
11
12 BMY WAMEX Yule River Project E47/1750, 1730, E45/2939 and E45/3341 Annual Report 1 Oct 2009 to 30 Sep 2010 –
page 16
13 BMY WAMEX Yule River Project E47/1750, 1730, E45/2939 and E45/3341 Annual Report 1 Oct 2009 to 30 Sep 2010 –
see Drill Assay Results in digital appendices ‘YuleRiver_WADG3_ASS_2010A.txt’
CONTACT: Damien Kelly, Western Tiger Corporate Advisers, +61 8 6323 2344; [email protected].
10