Hawthorn Resources Limited March 2011 Quarterly Report

Transcription

1 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 ASX Release 29 April 2011 ABN Hawthrn Resurces Limited Level 2, 90 William Street Melburne VIC 3000 Australia Tel: Fax: inf@hawthrnresurces.cm Directrs Hawthrn Resurces Limited March 2011 Quarterly Reprt Deep Suth Prject, Gld Western Australia high grade results g/t Au (incl g/t Au) and g/t Au (incl g/t Au) Mineralised hrizn intercepted 1500 metres suth f knwn gld sht 900 metres strike t be drilled March April 2011 drilling results May 2011 Yundamindera Prject, Gld Western Australia near surface, stckwrk veined, prphyry at Cffey Bre Mr Mark Gregry Kerr (Chairman) g/t Au (incl g/t Au) and g/t Au (incl g/t Au) Mr Mark Edward Ellitt (Managing Directr) Mineralisatin drilled ver 500 metres f strike Dr David Tyrwhitt (Nn Exec. Directr) Senir Management Mr Ian Mdy (Explratin Manager) Mr Murice Garbutt (Cmpany Secretary) ASX Symbl: HAW Open at depth and alng strike Fllwup drilling and testwrk MayJune 2011 Triumph Edjudina Prject, Gld Western Australia shallw intercept f main gld lde g/t Au frm 36 metres depth Intercept utside f histric resurce area Drill testing f histric resurces June 2011 Mt Bevan Prject, Irn Ore Western Australia JV partner Legacy Irn Ore intercepts cnsistent, thick, shallw dipping, magnetite mineralisatin n kilmetre spaced drill lines. Results t date include: % Fe % Fe % Fe Legacy reprt that an initial JORC cmpliant Inferred Resurce shuld be generated by the current drilling.

2 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 INTRODUCTION Hawthrn Resurces Limited hlds 5 advanced gld prjects within the prductive Suth Lavertn Gld Zne f Western Australia each with near term ptential t generate ecnmic, mineable gld resurces. Deep Suth High grade gld shts in 1500 metre strike f gld mineralised hrizn. New results due May 2011 Yundamindera Near surface, gld mineralised prphyry pen at depth and alng strike. Drill t btain JORC Resurce MayJune 2011 Edjudina High grade, histric undergrund reserves near surface high grade intercept. Drilling f Histric Resurce panels June 2011 Truser Legs Angl Saxn assessment f mining ptins & high grade prspects Exile, Exile Nrth & Wessex MayJune 2011 Whiteheads Cmpelling drill targets adjacent and alng strike f Carrick Gld s Lindsays Resurce (3.0 Mz cntained gld). Drilling May 2011 At Mt Bevan Central Yilgarn Irn Prvince JV partner Legacy Irn Ore has cmpleted drilling designed t cnfirm the annunced explratin target f 500 Mt f magnetite mineralisatin and elevate this explratin target t an Inferred Resurce categry Results May June

3 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Suth Lavertn Gld Explratin Western Australia incrprating Deep Suth, Yundamindera, TriumphSavannah, Pinjin, Melita, Whiteheads and Truser Legs Prjects (Hawthrn Resurces 100%),(Hawthrn Resurces 80%, Alacer Gld 20%),(Hawthrn Resurces 70%, Gel Resurces 30%). Figure 1 Hawthrn Resurces Suth Lavertn Gld Explratin Zne incrprates six prject areas where Hawthrn Resurces hlds, slely r in jint venture, ver 100 mining, explratin and prspecting titles. The prjects are surrunded by majr gld mines, depsits and resurces including the Sunrise Dam, Wallaby, Red Octber, Carsue Dam, Safari Bre, Deep Suth, Prphyry and Butchers Well Mines. Figure 1. Eastern Gldfields, Western Australia Prject Lcatins Deep Suth Prject (Hawthrn Resurces 80%, Alacer Gld 20%). The prject area lies directly alng strike t the suth f Deep Suth Mine, apprximately 170 km t the nrth east f Kalgrlie in Western Australia. Hawthrn hlds tenements in this area in Jint Venture, with Alacer Gld (frmerly Avca Resurces Limited). Hawthrn has identified a gld mineralised hrizn analgus t the adjacent Deep Suth Mexic gld rebdies (Indicated and Inferred Resurce 232,000 z Au) f Saracen Mineral Hldings Limited. 3

4 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Drilling during December 2010 and March 2011 has cntinued t intercept high grade gld mineralisatin and increased the strike length f knwn gld mineralisatin t ver 1900 metres, fllwing receipt f results frm the suthern end f the tenement blck. Figure 3.Deep Suth RC Drilling Drilling f the main quartzsulphidegld lde, in the centre f the prject area, cntinued t return high grade gld mineralisatin at depth, with results including: g/t Au (incl g/t Au) g/t Au (incl g/t Au) Drilling in the suthern prtins f the Deep Suth blck intersected similar pervasive quartzsulphide veins, hwever gld mineralisatin appears partially stped ut by later dirite dykes. Nnetheless gld results frm DSC052 and 054 indicate that the mineralised hrizn cntinues a further 1100 metres suth alng strike. With n drilling carried ut t date between the tw clearly linked, gld mineralised znes the ptential fr further high gld grade mineralisatin remains strng. 4

5 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Figure 4 Deep Suth Lngitudinal Sectin Results frm the recent drill hles are presented belw. Table 1. RC Gld Drilling Results Deep Suth Hle N. East Nrth Azim Dip Frm (m) T (m) Width (m) Au (g/t) DSC incl and DSC and DSC incl DSC and DSC DSC DSC DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending DSC Assay Pending All hles 1 metre split samples. Interval 0.50 g/t cutff, 2.0 metres internal waste. Assays Amdel Labratries, Kalgrlie Fire Assay 0.01 ppm DL These results are significant as: Mineralisatin cntinues at depth in high grade gld shts, as in the Deep Suth Mine, further drilling is t be targeted twards definitin f undergrund and pencut resurces 5

6 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Intercepts in frm March 2011 drill hles DSC & 069 are gelgically similar t high grade intercepts returned frm DSC (Assays Pending) The newly identified Suthern Mineralisatin psitin highlights the cntinuity f the gld bearing hrizn, and The 900 metres f Target Hrizn between the tw knwn gld mineralised znes has never been drilled several analgus targets have been identified, each large enugh t hst a sizeable Deep Suth style gld resurce. Mining is scheduled t recmmence at the Deep Suth Mine during 2012, increased infrastructure and activity in the area will enhance gld resurces defined by Hawthrn. Yundamindera Prject (Hawthrn 100% and Hawthrn Resurces 80%, Alacer Gld 20%). In the Yundamindera Prject area, lcated apprximately 175 kilmetres t the nrth east f Kalgrlie, Western Australia explratin has fcused n the discvery f gld assciated with mineralised syenitic prphyry dykes, BIF s and shears. Within the Suth Lavertn Zne syenite prphyries hst r are assciated with significant gld mineralised bdies including Wallaby (+7.1 Millin unces), Butcher Well (0.3 Millin unces) and Jupiter (0.1 Millin unces). Figure 5 Yundamindera Prject Area Cffey Bre Prspect 6

7 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 RC drilling carried ut at Cffey Bre Prspect, has been extremely successful with 14 f the 17 hles drilled returning substantial widths f gld mineralisatin ver 450 metres f strike including g/t Au (incl g/t Au) and g/t Au (incl g/t Au) Gld mineralisatin is cnsistently assciated with stckwrk quartz veining at the base f a shallw, 45 east dipping, prphyry intrusin. Lw sulphide cntent bserved in the gldinstckwrk veining indicate the ptential fr freemilling re. Table 1. RC Gld Drilling Results Yundamindera Cffey Bre Hle N Nrth East Azimuth Dip Frm T Width Au (g/t) YMC YMC incl YMC incl YMC YMC and YMC incl and YMC incl YMC incl YMC incl YMC YMC YMC and YMC YMC g/t Au cut, <2.0 metres f sub grade / interval One metre sample splits Fire Assay Amdel Kalgrlie 7

8 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Figure 6 Cffey Bre Plan View The suthern extensin f the prphyry intrusin is faulted ff t the suthwest the interpreted psitin f the reemergence f the unit has seen n drilling t date and will be a fcus f drilling campaigns during May and June Drilling in this campaign will als test the nrthern strike and depth extensins f the well defined stckwrk prhphyry. The results frm Cffey Bre t date are significant and Hawthrn believes that a gld resurce can be generated frm drilling planned fr May and June Triumph Prject Edjudina Mine s Prspect (Hawthrn 100%). The histric Edjudina Mines field, within the Triumph Prject area, is situated 140 km nrth east f Kalgrlie, Western Australia and 20 kilmetres t the east f the perating Prphyry and Enterprise Gld Mines (Saracen Mineral Hldings Limited). The tenements within the prspect are slely held by Hawthrn. Histric gld prductin ( ) frm 4 majr undergrund mines in the field ttalled 33, g/t f gld alng 1.4 kilmetres f strike. 8

9 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Explratin and develpment by Paget Gld Mining Cmpany Limited in 1983 resulted in an estimated remaining undergrund Prven and Prbable Reserve (t 160 metres frm surface) f 195, g/t Au (75,000 z Au). The grade f the histric gld lde was cnfirmed during the quarter with resampling f Hawthrn s 2010 drilling: Hle N. East Nrth Azim Dip Frm (m) T (m) Width (m) Au (g/t) EDC and All hles 1 metre split samples. Interval 0.50 g/t cutff, 2.0 metres internal waste. Assays Amdel Labratries, Kalgrlie Fire Assay 0.01 ppm DL This shallw intercept f the main gld lde, apprximately 70 metres sutheast f the Senate Mine (6, g/t Au), is extremely significant as it is in an area with few histric wrkings, perhaps indicating that the riginal main lde was nt lcated by earlier mining, and remains substantially intact. Figure 7 Edjudina Mines Lngitudinal Sectin With cmpilatin f histric mine level plans cmplete, Hawthrn will cmmence a detailed drillut t redefine the histric resurce, and the Senate Suth extensin, in drill prgrams during June Hawthrn views the mines in this area as ptentially delivering high grade gld mining pprtunities. During the quarter Hawthrn was granted a Mining Lease ver the prpsed Mine Area. 9

10 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Figure 7 Edjudina Mining Lease M31/481 (Granted) With near term ptential fr the develpment f high grade gld depsits, prvisin fr necessary mine infrastructure within the Mine Lease has been made. Whiteheads Prject Western Australia (Hawthrn Resurces 100%). This Whiteheads Prject area is situated within the histric Gindalbie Mining area 50 kilmetres nrtheast f Kalgrlie in Western Australia. The prject areas surrunds bth the histric Gindalbie Mining Centre (45,000 unces f gld prduced at 27 g/t) and Carrick Resurces Lindsays Resurce (3.0 Millin unce resurce). RAB drilling prgams designed t test sil anmalies and existing RAB drillhles with results t g/t t EOH (including g/t Au t EOH) were delayed in March due t RC drilling at Deep Suth these prgrams are nw t cmmence during May Truser Legs Prject (Hawthrn Resurces 70%, Gel Resurces 30%) incrprating the Angl Saxn gld prject. The prject area is situated apprximately 140 kilmetres east f Kalgrlie, and 35 kilmetres t the east f the Carsue Dam Operatin f Saracen Mineral Hldings Limited. The prject area hsts the AnglSaxn Mining Area Assessment f mining ptins fr the histric Angl Saxn Resurce and smaller high gld grade znes at Exile, Exile Nrth and Wessex has cntinued. 10

11 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Munt Bevan Irn Ore Prject Western Australia (Hawthrn Resurces 100%, Legacy Irn Ore earning 60%) The Munt Bevan Prject n Explratin Licence 29/510 is lcated apprximately 100 km west f Lenra in the central Yilgarn regin f Western Australia. The prject area is the subject f Jint Venture with Legacy Irn Ore Limited. Legacy can earn a 60% equity interest in the prject area by meeting stipulated explratin and develpment expenditure. Legacy has reprted that an initial 5,000m RC drilling prgram is nw cmplete, with five drill fences drilled at apprximately 1.0 km fence spacing alng strike f the target magnetitebif hrizn identified by Hawthrn s explratin effrts in Each fence f drilling intersected a 80m 140m thick, magnetite bearing Banded Irn Frmatin ( BIF ) unit that dips shallwly t the east. The unit shws excellent cntinuity between the drilling fences and assay results t date indicate that the magnetite BIF carries grades f 35% 38% Fe. Assays frm the drilling will be cmplete within a mnth, and preliminary metallurgical test wrk, including DTR (Davis Tube Recvery) testing, is underway. Legacy, upn cmpletin f metallurgical wrk and mdelling, intend t calculate a maiden JORC cmpliant Inferred Resurce fr the drilled area. The cmpleted drill prgram is lcated in the suthern part f the Mt Bevan prject area, t the immediate nrth f significant magnetite and hematite resurces annunced by Jupiter Mines Limited ( Jupiter ) at Mt Ida and Mt Masn respectively. Figure 8 Mt Bevan Prject Area 11

12 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Jupiter have annunced a magnetite Inferred Resurce f 31.9% Fe hsted at Mt Ida, and a DSO haematite Inferred Resurce f 59.9% Fe at Mt Masn. Explratin by Hawthrn during 2008 & 2009 demnstrated that the Mt Masn DSO haematite resurce extends int tenement E29/510 with intercepts including: % Fe frm 48 metres and % Fe frm 59 metres t EOH The Mt Ida and Mt Masn resurces are reprted t be the subject f nging scping studies. 12

13 Hawthrn Resurces Limited Quarterly Activities Reprt MARCH 2011 Jint Ventures Lake Rebecca Gld Jint Venture Western Australia (Renaissance Minerals Limited 90%, Hawthrn Resurces 10%). This jint venture cvers tenements n the suthern margin and within Lake Rebecca, Western Australia, apprximately 20 kilmetres suth f Hawthrns Angl Saxn Mining Area. Jint Venture peratr Renaissance Mineral Limited has reprted drill results t g/t Au in the Kirgella area apprximately 5.0 kilmetres nrth f the Jint Venture tenements. Drill targets are still being assessed within the Jint venture tenements. Erayinia Jint Venture Western Australia (ABM Resurces 70%, Hawthrn Resurces 30%). The Erayinia Jint Venture is centred apprximately 150 kilmetres suth east f Kalgrlie, Western Australia. The jint venture is managed by ABM Resurces NL ( ABM ) and has hsted encuraging vlcangenic massive sulphide ( VMS ) intercepts at the King r E1 Prspect. ABM have reprted that n new explratin was carried ut during the quarter. East Kimberley Jint Venture Western Australia (Thundelarra 80%, Pindan Panramic Resurces earning t 48.8% f Thundelarra interest, Hawthrn Resurces 20%) Panramic Resurces have reprted that n new explratin was undertaken n the East Kimberley Jint Venture during the quarter. Murice R Garbutt Cmpany Secretary The infrmatin in this reprt that relates t Explratin Results, Mineral Resurces r Ore Reserves is based n infrmatin cmpiled by Mr Ian Mdy, wh is a member f the Australasian Institute f Mining and Metallurgy and a full time cnsultant gelgist with First Principle Mineral Explratin Cmpany Pty Ltd. Mr Mdy has sufficient experience as a gelgist which is relevant t the style f mineralizatin and the type f depsit under cnsideratin and t the activity which he is undertaking t qualify as a Cmpetent Persn as defined in the 2004 editin f the Australasian Cde f Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Mdy cnsents t the inclusin in this reprt f the matters based n his infrmatin in the frm and cntext in which it appears. Attached is a cpy f the Cmpany s Mining Explratin Entity Quarterly Reprt in accrdance with Listing Rule

14 Appendix 5B Mining explratin entity quarterly reprt Appendix 5B Rule 5.3 Mining explratin entity quarterly reprt Intrduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10, 17/12/10 Name f entity HAWTHORN RESOURCES LIMITED ABN Quarter ended ( current quarter ) March 2011 Cnslidated statement f cash flws Current quarter Year t date Cash flws related t perating activities (9 mnths) $A 000 $A Receipts frm prduct sales and related debtrs 1.2 Payments fr (a) explratin and (558) (1,949) evaluatin (b) develpment (c) prductin (d) administratin (291) (873) 1.3 Dividends received 1.4 Interest and ther items f a similar nature received 1.5 Interest and ther csts f finance paid 1.6 Incme taxes paid 1.7 Other (prvide details if material) GST (Refundable) Net Operating Cash Flws (673) (2,459) Cash flws related t investing activities 1.8 Payment fr purchases f: (a) prspects (b) equity investments (c) ther fixed assets 1.9 Prceeds frm sale f: (a) prspects (b) equity investments (c) ther fixed assets 1.10 Lans t ther entities 1.11 Lans repaid by ther entities 1.12 Other (prvide details if material) Net investing cash flws 1.13 Ttal perating and investing cash flws (carried frward) (673) (2,459) + See chapter 19 fr defined terms. 17/12/2010 Appendix 5B Page 1

15 Appendix 5B Mining explratin entity quarterly reprt 1.13 Ttal perating and investing cash flws (brught frward) (673) (2,459) Cash flws related t financing activities 1.14 Prceeds frm issues f shares, ptins, etc. 1, Prceeds frm sale f frfeited shares 1.16 Prceeds frm brrwings 1.17 Repayment f brrwings 1.18 Dividends paid 1.19 Other (prvide details if material) Net financing cash flws 1,500 Net increase (decrease) in cash held (673) (959) 1.20 Cash at beginning f quarter/year t date 2,555 2, Exchange rate adjustments t item Cash at end f quarter 1,882 1,882 Payments t directrs f the entity and assciates f the directrs Payments t related entities f the entity and assciates f the related entities Current quarter $A' Aggregate amunt f payments t the parties included in item Aggregate amunt f lans t the parties included in item Explanatin necessary fr an understanding f the transactins Nncash financing and investing activities 2.1 Details f financing and investing transactins which have had a material effect n cnslidated assets and liabilities but did nt invlve cash flws 2.2 Details f utlays made by ther entities t establish r increase their share in prjects in which the reprting entity has an interest Financing facilities available + See chapter 19 fr defined terms. Appendix 5B Page 2 17/12/2010

16 Appendix 5B Mining explratin entity quarterly reprt Add ntes as necessary fr an understanding f the psitin. 3.1 Lan facilities 3.2 Credit standby arrangements Amunt available $A 000 Amunt used $A 000 Estimated cash utflws fr next quarter 4.1 Explratin and evaluatin 4.2 Develpment 4.3 Prductin 4.4 Administratin $A Ttal 590 Recnciliatin f cash Recnciliatin f cash at the end f the quarter (as shwn in the cnslidated statement f cash flws) t the related items in the accunts is as fllws. Current quarter $A 000 Previus quarter $A Cash n hand and at bank Depsits at call 1,510 2, Bank verdraft 5.4 Other (prvide details) Ttal: cash at end f quarter (item 1.22) 1,882 2,555 Changes in interests in mining tenements 6.1 Interests in mining tenements relinquished, reduced r lapsed Tenement reference Nature f interest (nte (2)) See Attached Interest at beginning f quarter Interest at end f quarter 6.2 Interests in mining tenements acquired r increased See Attached + See chapter 19 fr defined terms. 17/12/2010 Appendix 5B Page 3

17 Appendix 5B Mining explratin entity quarterly reprt Issued and quted securities at end f current quarter Descriptin includes rate f interest and any redemptin r cnversin rights tgether with prices and dates. Ttal number Number quted Issue price per security (see nte 3) (cents) Amunt paid up per security (see nte 3) (cents) 7.1 Preference + securities (descriptin) 7.2 Changes during quarter (a) Increases thrugh issues (b) Decreases thrugh returns f capital, buybacks, redemptins Ordinary securities 1,775,595,897 1,775,595, Changes during quarter (a) Increases thrugh issues (b) Decreases thrugh returns f capital, buybacks Cnvertible debt securities (descriptin) 7.6 Changes during quarter (a) Increases thrugh issues (b) Decreases thrugh securities matured, cnverted 7.7 Optins (descriptin and cnversin factr) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter 7.11 Debentures (ttals nly) 7.12 Unsecured ntes (ttals nly) 10,000,000 2,500,000 13,569, ,084,231 13,569, ,084,231 Exercise price $0.10 $0.10 $0.20 $0.10 Expiry date 25 January, June, April, February, See chapter 19 fr defined terms. Appendix 5B Page 4 17/12/2010

18 Appendix 5B Mining explratin entity quarterly reprt Cmpliance statement 1 This statement has been prepared under accunting plicies which cmply with accunting standards as defined in the Crpratins Act r ther standards acceptable t ASX (see nte 5). 2 This statement des give a true and fair view f the matters disclsed. Sign here:... Date: 29/04/2011 (Cmpany secretary) Print name: MOURICE GARBUTT Ntes 1 The quarterly reprt prvides a basis fr infrming the market hw the entity s activities have been financed fr the past quarter and the effect n its cash psitin. An entity wanting t disclse additinal infrmatin is encuraged t d s, in a nte r ntes attached t this reprt. 2 The Nature f interest (items 6.1 and 6.2) includes ptins in respect f interests in mining tenements acquired, exercised r lapsed during the reprting perid. If the entity is invlved in a jint venture agreement and there are cnditins precedent which will change its percentage interest in a mining tenement, it shuld disclse the change f percentage interest and cnditins precedent in the list required fr items 6.1 and Issued and quted securities. The issue price and amunt paid up is nt required in items 7.1 and 7.3 fr fully paid securities. 4 The definitins in, and prvisins f, AASB 6: Explratin fr and Evaluatin f Mineral Resurces and AASB 107: Statement f Cash Flws apply t this reprt. 5 Accunting Standards ASX will accept, fr example, the use f Internatinal Accunting Standards fr freign entities. If the standards used d nt address a tpic, the Australian standard n that tpic (if any) must be cmplied with. == == == == == + See chapter 19 fr defined terms. 17/12/2010 Appendix 5B Page 5

19 Appendix 5B Mining explratin entity quarterly reprt HAWTHORN RESOURCES LIMITED ACN CHANGES IN INTERESTS IN MINING TENEMENTS 6.1 Interests in Mining Tenements relinquished, reduced r lapsed Tenement Reference Nature f Interest [nte (4)] Interest at beginning f quarter Interest at end f quarter E31/659 Surrendered 100% 0% E31/792 Surrendered 100% 0% E37/891 Surrendered 100% 0% E40/112 Surrendered 100% 0% E40/113 Surrendered 100% 0% E40/138 Surrendered 100% 0% E40/145 Surrendered 100% 0% E40/216 Surrendered 100% 0% P31/1613 Expired 100% 0% P31/1614 Expired 100% 0% P37/7323 Surrendered 100% 0% 6.2 Interests in Mining Tenements acquired Or increased Tenement Reference Nature f Interest [nte (4)] Interest at beginning f quarter Interest at end f quarter M31/481 Granted 0% 100% + See chapter 19 fr defined terms. Appendix 5B Page 6 17/12/2010