NQ Minerals PLC
(the “Company” or “NQ Minerals”; NEX:NQMI”)
11 May 2017
NQ Minerals (ISDX: NQMI), the Australian-based exploration and mining company is pleased to announce an update on its Ukalunda project in Queensland.
With the grant of EPM 26204 at Ukalunda the project now covers over 130 sq. km of well mineralised terrane.
The Sunbeam Mining Lease application is now proceeding to formal grant following conclusion of Compensation agreements on the area.
Metallurgical testing of the Sunbeam silver / base metal stockpiles included work at Gekko’s laboratories in Ballarat. Their preliminary results suggest that bulk flotation to produce a saleable concentrate may be an option.
The work by Gekko was aimed at utilizing their Python processing technology. This is a modular system which uses energy efficient comminution, gravity separation and flotation to produce a high value concentrate.
Since the last update in June 2016, drill planning, geological mapping and soil geochemical surveys have been undertaken plus further evaluation of previous work.
Drill planning proposes a program for up to 3,550m of reverse circulation drilling to test mineralisation on western EPM 18019:
- High gold zones of the Pyramid silver-lead vein field.
- The 500m diameter Birthday Gift zinc-silver-lead bearing breccia pipe.
- The silver-gold-copper-bismuth mineralisation at Renegade.
Preparations were made for the mapping and sampling of the Salopia to provide additional data for the planning of the drilling to outline the extent of the 3m intersection of 11 g/t gold found in hole SAL-01.
A soil geochemical survey at Renegade where geological mapping outlined gossanous lenses in altered granite delineated silver (>0.5 g/t Ag) over 1 km of strike and anomalous Au, Cu, Pb, Bi and Mo. Assays from an old exploration trench ran 5 g/t Ag over 150m.
Evaluation of previous exploration upgraded the potential of several prospects:
- In a 1km long skarn/hornfels system at Mt Wyatt previous drilling intersected 2m @ 3.9 g/t gold in hole MWC3 and 2m @ 1.0 g/t Au in MWC4. Two of the other 4 holes there did not reach target depth.
- At Earlscliffe a 3m trench intersected 61.2 g/t gold (estimated true width 1 to 1.5m) in altered granite.
- A 50 g/t silver stream sediment assay which has not been followed up was noted the Zone A target 1 km ENE of Sunbeam. This suggests potential for ore grade mineralisation nearby.
A new government geological report on the region confirmed that the epithermal gold bearing Drummond Basin sequence outcrops in the central eastern sub-blocks of the EPM where the Polka Dot and Wynne Creek gold prospects are located. Their mapping indicates that the sequence could contain the unit which host the mineralisation at the Wirralie gold mine 25 km to the south.
Statutory reporting of 2016 work confirmed that the stand-out results were from the drilling at White’s Hope and Carrington.
- At White’s Hope potentially ore grade gold was intersected in WHC003 with a 3m down hole length of 3.6 g/t Au. Previously unknown zinc mineralisation was also discovered including one metre intervals of 11.8% and 4.1% Zn.
- At Carrington a large pyritic alteration system was encountered with promising grade bismuth-copper intersections. The best hole (CRC018) intersected widespread mineralisation including 2m of 2.3% Cu from 158-160m and 6m @ 2.4% Pb, 97 g/t Ag from 49-55m. CRC011 intersected 2.1% Bi from 141-142m.
Follow-up work was proposed:
- On the promising gold prospect areas at Wynne Creek, Golden Ridge and elsewhere.
- At White’s Hope where additional drilling is required to establish the gold and copper/zinc resources.
- Drilling of Pyramid, Polka Dot, and Birthday Gift base metal and gold mineralisation.
- Systematic exploration of the 3 km strike length west from Carrington for Cu, Ag, Au, Bi bearing hydrothermal alteration.
- Evaluating the major structures evident in the 3D magnetic inversion model.
- Completion of the stream sediment sampling and broad spaced soil geochemistry to identify zones of hydrothermal activity and mineralisation.
Brian Stockbridge, Non-Executive Chairman, commented today:
“The Board and management of NQ Minerals continue to uncover the inherent value of the mineralisation within the Ukalunda project and have enlarged the permit area to include more land containing historic high grade mineral discoveries. The management is also highly encouraged by the gold values from drill results and rock chip assays, as well as recent approvals to drill key areas.
The mining lease application is progressing on the Sunbeam area. Once granted, this will allow processing of the surface stockpiles to begin providing cash flow to fund the exploration and development of the project. This is planned to minimise dilution for shareholders going forward. The Board is looking forward to announcing the results of the metallurgical tests on the rich silver ore from the Sunbeam stockpiles in the coming weeks.”
NQ Minerals is delivering on its two key objectives – drilling to ascertain the extent and grade of targets identified from previous resource data and taking steps to process the approximately 48,000t of mineral stockpiles at Sunbeam which contain potentially commercial grades of silver and other minerals at its Ukalunda Project at EPM 18019.
The short term strategy is aimed at generating cash flow from processing the Sunbeam mineral stockpiles and increasing value by the targeted drilling of known deposits. The tenement contains a number of previously operational silver, lead and copper mines. The easiest way to add value is by drilling and upgrading the previous resource data, which is too old to be Joint Ore Reserves Committee Code (JORC) compliant.
About NQ Minerals:
NQ Minerals is an Australia-based exploration and mining company, focusing on projects where past exploration work has established the presence of mineral occurrences. The Company’s management team has decades of experience in the exploration and production of gold, silver and a variety of base metals.
Please visit our website at www.nqminerals.com.
For further information, please contact:
NQ Minerals Plc
Brian Stockbridge, Non – Executive Chairman
+ 44 (0) 7876 888011
Kris Kottmeier, VP Corporate Development
+ 44 (0) 20 3637 6522 (UK)
+ 1 (604) 506 6502 (North America)
Daniel Stewart & Company Plc
+ 44 (0) 20 7776 6596
+ 44 (0) 20 7776 6550
Yellow Jersey PR
+ 44 (0) 776 932 5254
+ 44 (0) 776 932 5254