RC Drilling at Hill 616 and Dead Camel has recently been completed
Holes confirm shallow, gently dipping, laterally extensive Manganese mineralisation across the Hill 616 prospect that is open in both directions along strike
All corresponding RC samples now submitted to ALS laboratories for assaying with first round of results expected in early November
Diamond drilling program now underway at the Hill 616 prospect
2.6 Metre zone of massive Manganese mineralisation intersected in diamond hole JDDH01
Selected samples from the diamond core to be used in metallurgical beneficiation test work during the coming quarter
Other field activities, including surface mapping and reconnaissance sampling, continue across the Jigalong project More...
Our Exploration Team completed a substantial amount of preparatory field work and permitting during Q2 2011 and is now ready to test gold, nickel, manganese and iron targets with RC and diamond drilling during Q3 and Q4. Direct exploration cash expenditure during the Q was $0.9M. The Exploration Manager has set out the work completed during Q2 2011 in his report that follows.
In August 2011 we’ll commence RC drill testing a number of deep nickel sulphides targets at the Forrestania Project. These have been generated after a detailed study of the projects geology, geochemistry and geophysical data sets. Shortly thereafter we’ll commence a comprehensive RC drill program aimed at identifying high grade gold and nickel sulphides at Lake Johnston. We’re particularly excited about the gold drilling because the targets are robust and the gold price is high. Any gold exploration success at Lake Johnston should result in an immediate re-rating of the share price. The opportunity to put together the Company’s first mineral resource is likely to come from an RC and diamond drill program planned for manganese at the Jigalong Project late in Q3 or early Q4. An exploration budget of $4.5M has been set aside for the balance of 2011.
During the Q it was announced that Hannans’ iron and manganese projects would be developed within a new company owned 100% by existing Hannans shareholders. The Record Date for determining entitlement to the ‘spin out’ has been amended, as required by ASX, to a date to be fixed after consideration of the matter by shareholders. All details will be contained in a Notice of Meeting to be lodged in August 2011.
HANNANS INVESTMENT MANAGEMENT
At the end of the Q the equity and convertible loan portfolio was worth approximately $28.7M and the cash at bank $0.7M. No material purchases or sales of listed or unlisted equities took place during the Q. The equity portfolio will be sold down as and when required to fund exploration and working capital.
Foundation asset to be the 3,000km2 Jigalong Manganese Project in the South East Pilbara region of Western Australia adjacent to Atlas Iron Ltd and FerrAus Ltd iron projects
Hannans to provide Newco with funding to implement its strategy
Hannans shareholders at the Record Date to own 100% of new company
Hannans to maintain 100% ownership of its precious & base metals projects, investment portfolio and convertible notes valued at approximately $25 million
Field reconnaissance activities at the Forrestania Project have identified BIF outcrop in a number of locations at the Beautiful Sunday West Prospect area (E77/1512). The extensive BIF outcrop has confirmed the presence of greenstone stratigraphy in the area and has also significantly increased the probability of identifying ultramafic lithologies in the area.
A gravity survey has also been completed over the Beautiful Sunday West Prospect; the survey has helped to confirm the presence of greenstone lithologies west of the Beautiful Sunday Deposit (owned by Western Areas NL).
Surface auger sampling has been completed over the western ultramafic within the Stormbreaker Prospect on tenements E77/1354, E77/1406, E77/1430, P77/3607, P77/3848 and P77/3849 for a total of 3,152 samples, assays results are pending.
Wide spaced auger sampling has also been completed at the Stormbreaker North area (M77/693), assays results have been received. The data has been processed and has confirmed that the central ultramafic unit continues north on to tenement M77/693.
Gold anomalism has been identified in historical RAB drilling north-west of the Forrestania Project-Skeleton Rocks Prospect, an Exploration License application (ELA77/1846) has been processed by the DMP.
Queen Victoria Rocks Project
RC percussion drilling commenced at the Benari Prospect within the Queen Victoria Rocks Project area. A total of 6 holes have been completed for 1,478 metres. The drilling to date has intersected amphibolites, komatiitic and granitic lithologies. Assays have been received for three holes with no significant assays to report.
Lake Johnston Project
Gravity surveys were completed over the Ernest and Hardcore prospect areas; the surveys have shown that the gold mineralisation at both prospects is associated with a steep gravity gradient. The gravity gradient is interpreted to represent a large scale structure.
A twelve hole reverse circulation (RC) drilling program has been completed for 2,446 metres at the Forrestania Project. Favourable ultramafic host rock lithologies have been confirmed from the drilling
Surface TEM traverses have been completed over the central ultramafic corridor at Forrestania. The survey has generated TEM anomaly coincident with an historic soil anomaly (PAC_007)
Ongoing RC percussion drilling at Forrestania expected to commence during the December quarter
Queen Victoria Rocks Project - Nickel
Hannans auger sampling has been processed resulting in two priority anomalies being generated over the western ultramafic contact position (EMT5 prospect area) at Forrestania
Three discrete moving loop electromagnetic (EM) anomalies have been identified from recently completed geophysical surveys at the Queen Victoria Rocks Project (Benari Prospect). The EM anomalies are coincident with helicopter borne VTEM anomalies and historical geochemical (nickel and copper) anomalies announced on 19 May 2010
Reverse circulation drill testing of nickel sulphide targets at the Benari Prospect is being planned for the coming Quarter
Summary of Activities
Hannans exploration activities are aimed at identifying an economic nickel sulphide deposit (internal target) in excess of 30Kt of contained nickel metal (i.e. stand alone operation) characterised by high tenor (i.e. the percentage of pentlandite relative to pyrrhotite)nickel sulphides. The target model is characterised by a small 'foot print' generally 200m to 300m in strike extent and 5m to 20m width but with a very elongated (+1km) linear down-dip extent. This makes exploration for such an ore body with surface EM methods technically challenging, particularly more so in a conductive environment.
Mr Huntly’s background includes Chief Exploration Geologist for Xstrata Nickel Australasia (October 2008 – December 2009), District Exploration Manager for Jubilee Mines NL (February 2004 – October 2008) and Exploration Project Manager for Goldfields of South Africa
Mr Huntly’s nickel experience will add significant value to Hannans’ nickel sulphide exploration projects at Forrestania, Lake Johnston and Queen Victoria Rocks
Government approvals process delays RC drilling (originally scheduled to commence mid March 2010)
All required approvals now received, drill pads and access pads cleared, drilling scheduled to commence early May
Final processing & interpretation of helicopter borne VTEM survey produces additional electromagnetic (EM) anomalies at Stormbreaker*, Skeleton Rocks and Lucy Rocks Prospects
Review of historical ground geophysical surveys identifies 5 new EM anomalies located within Stormbreaker Prospect Ground EM surveying of these 5 new EM anomalies produces 8 new RC drill targets
Multiple tenement applications made
Field reconnaissance of newly applied for tenements confirms the presence of prospective ultramafic stratigraphy
Anomalous rock chip returns values including: 1055ppm Ni, 529ppm Cu, 1360ppm Cr and 35ppb Pt
Lake Johnston Project
Review of historical ground geophysical surveys identifies 3 new EM anomalies
Follow-up ground geophysical surveys to be completed during May
Queen Victoria Rocks Project
Hannans/Vale joint venture comes to an end
Hannans retains 100% of project and will review data before planning next phase of exploration
Jigalong Project
370 surface samples collected
Sunday Project
Results pending from three diamond drill holes completed by joint venture partner
Hannans confirmed as 100% legal and beneficial owner of the Jigalong Project, located 110kms east of Newman in the East Pilbara region of Western Australia
Jigalong Community Inc (JCI) strongly supports Hannans’ and future joint venture partners’ exploration activities within the Jigalong lands, including providing timely assistance with land access and heritage related matters
Hannans excellent long-term relationship with JCI ensures the Community has exposure to Hannans’ exploration portfolio through the issue of Hannans equity
Hill 616 confirmed as the highest priority surface manganese prospect with 3km strike length (approx.)
Testwork suggests opportunity exists to sell a manganese fines concentrate from the Jigalong Project for use in the steel alloy industry
Further testwork recommended including mineralogical examination of Hill 616 ore, additional crushing and grinding to assess potential for a fines product and drill testing to establish Hill 616 manganese profile
Aircore drilling at Hill 616 to commence mid June
Mineralogical examination (using QEMSCAN) to commence mid June
Scoping study into economic potential of Hill 616 surface manganese to commence subject to positive outcomes of further testwork
Significant potential remains to identify a sub-surface primary source of manganese with the greater Jigalong Project (approx. 2,000km2 in area)
Hannans holds unencumbered legal title to 100% of the Jigalong Project (through its wholly owned subsidiaries).
Hannans has an excellent relationship with the Jigalong Community Inc.
Jigalong Community Inc have indicated they strongly support exploration activities within the Jigalong Lands and look forward to continuing to work with Hannans and future funding partners.
Primary manganese mineralisation intersected in RC drilling at the Marru - Manganese Prospect (E52/1813) – refer attached location map and photos - Mineralisation interpreted to continue along strike for 3km - Mineralisation ranging in widths from 5m to 30m at depths from surface to 60m - Seven of the fourteen RC holes intersected primary stratabound manganese
Drill testing of manganese targets at Jigalong will commence upon completion of the current iron exploration drilling programme.
The initial phase of manganese drilling will comprise approximately 20 holes for 1,500m. If encouraging manganese mineralisation is intersected, drilling will continue beyond the initial phase.
Memorandum of Understanding announced with Jigalong Community Incorporated on 5 December 2003 to form a joint venture to explore within the Jigalong Lands, approximately 160 km east of Newman.