ASX Announcement 19 January 2017
Final assays from December 2016 drilling confirm extensions to shallow, +10% TGC, high-grade graphite zone; follow-up drilling underwayFinal assays from December 2016 diamond core drilling define a near flat-lying, shallow
+10% total graphitic carbon (TGC) zone of approximately 1km strike-length along the southern boundary of the Siviour Indicated Resource
Thick, shallow intersections of +10% TGC in holes immediately along-strike (Siv063, Siv067 and Siv068) suggest the potential for this shallow, higher-grade zone to extend at least an additional 1km to the east of the current Indicated Resource
This higher-grade zone occurs under surficial cover, suggesting favourable strip-ratio characteristics and low-cost, free dig mining
In light of these encouraging results, Renascor has this week commenced a follow-up drill program of up to 2,000 metres
Renascor is concurrently progressing its mineral processing test program, incorporating core samples from December drilling, and its Scoping Study, with a focus on the higher- grade zone; initial metallurgical results are expected later this quarter
Renascor Resources (ASX: RNU) is pleased to announce that final drill assays from its recently completed diamond core program at its Siviour Graphite Deposit in South Australia's Eyre Peninsula have defined a near flat-lying, shallow +10% total graphitic carbon (TGC) zone of approximately 1km strike-length along the southern boundary of the Siviour Indicated Resource.
Additional drill assays from holes immediately to the east (Siv063, Siv067 and Siv068 - see Figures 1 and 2 and RNU ASX release dated 23 December 2016) suggest the potential for this shallow, higher-grade zone to extend at least an additional 1km to the east of the current Indicated Resource.
In light of the potential of this expanded higher-grade zone to support a large-scale, commercially competitive mining operation, Renascor has this week commenced a follow-up drill program of up to 2,000 metres.
The in-progress mineral processing test program and Scoping Study have been revised to consider an expanded production case incorporating this higher-grade graphite zone.
Drill results
Renascor completed eleven diamond core holes in December 2016, totalling approximately 500 metres primarily across the southern portion of the Siviour Indicated Resource. Renascor focused on the southern boundary of the Siviour Indicated Resource due to the high concentration of near-surface higher-grade, +10% TGC material indicated from previous drilling in this area. See Figure 1.
Ten of the eleven holes drilled in the December 2016 program intersected high-grade graphite at shallow depths, with multiple intersections recording significant intervals of greater than 10% TGC.
Complete drill details for all assays from the December drill program are provided in Table 1.
Hole | Prospect | Collar (MGAE) | Collar (MGAN) | From (metres) | To (metres) | Interval (metres) | TGC%* |
16SIVDD067 | Siviour | 632195.4 | 6245601.2 | 13 | 45 | 32 | 9.6 |
21 | 43 | 22 | 12.6 | ||||
16SIVDD068 | Siviour | 632395.5 | 6245597.4 | 17 | 21 | 4 | 7.0 |
23 | 37 | 14 | 8.4 | ||||
16SIVDD069 | Siviour | 632101.7 | 6245659.4 | 13 | 16 | 3 | 9.7 |
18 | 36 | 18 | 12.3 | ||||
16SIVDD070 | Siviour | 631898.8 | 6245625.0 | 9 | 17 | 8 | 10.9 |
19 | 24 | 5 | 5.7 | ||||
16SIVDD071 | Siviour | 631898.8 | 6245625.9 | 8 | 22 | 14 | 11.8 |
16SIVDD072 | Siviour | 631700.5 | 6245700.1 | 12 | 22 | 10 | 15.0 |
16SIVDD073 | Siviour | 631598.5 | 6245699.9 | 9 | 18 | 9 | 11.1 |
16SIVDD074 | Siviour | 631500.7 | 6245700.5 | No significant intersections | |||
16SIVRC075 | Siviour | 631398.7 | 6245698.7 | 15 | 22 | 8 | 7.3 |
16SIVDD076 | Siviour | 631400.9 | 6245787.2 | 49 | 53 | 4 | 8.6 |
16SIVDD077 | Siviour | 631894.9 | 6245695.0 | 19 | 35 | 16 | 12.0 |
36 | 38 | 2 | 5.7 |
* TGC based on a 5% cut-off, with maximum 1m internal waste
Table 1. Drill results - (see Appendix 1 for drill hole parameters)Shallow, high-grade graphite zone
The results from the recent drill program, together with previous drilling, confirm the existence of a near flat-lying, shallow +10% TGC zone along the southern boundary of the Siviour Indicated Resource. Renascor's modeling suggests that this area contains a large portion of the higher- grade (8.5% cut-off) graphite estimate of 22.2 million tonnes @ 10.0% TGC for 2.2 million tonnes of contained graphite, as reported in Renascor's most recent mineral resource statement. See RNU ASX release dated 26 October 2016.
As illustrated in east-west composite section 6245600N (shown below in Figure 2), this higher- grade zone is continuous over a strike length of over 1km along the southern portion of the current Indicated Resource area, with the potential to extend at least an additional 1km along- strike to the east.
Figure 2. Siviour plan view (top), showing drill holes and resource boundaries over electromagnetic conductive zones and composite east-west section 6245600N/6245700N (bottom), extending across the southern portion of Indicated Resource to SIV063Eastward extensions to high-grade graphite zone
As shown in Figure 2, the recent drill results suggest that the higher-grade zone defined within the Indicated Resource may prove to be larger than previously indicated. Holes SIV067 and SIV068, which are both located outside of the Indicated Resource, returned significant intervals of shallow, +10% TGC. Ground electromagnetic data indicate that the higher-grade zone may extend for at least a further 1km to the east of the current Indicated Resource to SIV063, which intersected 23 metres @ 9.2% TGC (from 16m).
In light of the potential of this expanded higher-grade zone to support a large-scale, commercially competitive mining operation, Renascor has this week commenced follow-up drilling of up to 2,000 reverse circulation metres, targeting extensions to the east, as well as closer-spaced drilling within the higher-grade zone in the southern portion of the current Indicated Resource.
Mineral process test program and Siviour Scoping Study
Renascor considers that the higher-grade graphite zone, including both the area within the southern portion of the Indicated Resource and the area extending east to SIV063, is likely to offer the potential to access a significant portion of Siviour's higher-grade graphite inventory, while taking advantage of the zone's favourable strip-ratio characteristics and low-cost, free dig mining.
It is apparent that a large-scale, commercially competitive mining operation may be practicable based on this higher-grade graphite zone. The current metallurgical test work and Scoping Study parameters have accordingly been redefined to consider and account for the commercial advantages of this possibility.
Next steps
Drilling is expected to continue through the second week of February, with assay results expected approximately two to four weeks thereafter.
Core samples collected from the December drill program have been integrated into Renascor's mineral processing test program, with initial results expected later this quarter.
Pending completion of the mineral processing test program, Renascor intends to continue to advance the in-progress Siviour Scoping Study. Results from the Scoping Study, which will include product parameters to be defined by the current mineral processing testing, are expected to be available shortly after completion of the mineral processing tests.
Renaissance Uranium Limited published this content on 19 January 2017 and is solely responsible for the information contained herein.
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