Drilling of new targets and testing of shallow mineralisatio
Released
Released
Announcement PDF
Emu NL
Drilling of new targets and testing of shallow mineralisation
27 September 2018
Drilling of new targets and testing of shallow
mineralisation
HIGHLIGHTS:
Preparation for the 2018-19 drilling and field programme well advanced
10,000m of aircore (AC) and 3,000m of diamond drilling (DDH) proposed
Plan to drill test three new targets
Shallow silver and gold mineralisation at Vidalita targeted with in-fill AC drilling to test for
a potential resource
High grade gold, silver, copper, lead, and zinc mineralisation at Vidalita to be further
defined and extended, possibly by DDH
Exciting new soil geochemistry discovery at Peon 4 to be drill tested
Vidalota D soil geochemistry anomaly to be drill tested
Jotahues rock chip anomalies to be drilled
Reconnaissance geology and geochemistry of Emu’s 100% owned Arroyo Ancho to test
large epithermal alteration zone
2018-19 Field Season
Planning for the 2018-19 field season at Emu’s Vidalita Project in the Maricunga Belt, Chile, is now
well advanced.
The services of an AC driller have been secured. This drilling method, not well known in Chile,
ultimately delivered a good drilling production rate at very low costs compared to other options
available in Chile. Importantly, it also delivered excellent samples for both geological and assaying
needs.
For deeper drilling requirements, Emu is looking to engage a locally based, family owned, well
credentialed diamond driller with base costs below that experienced by Emu during the last season.
Vidalita
The last drilling season at Vidalita highlighted two mineralisation styles (Figure 1).
The first is a shallow vuggy silica mantle style that is silver dominated with gold credits. It is expected
that this style will be spatially extensive and represents an Exploration Target of 5 to 15 million tonnes
(Mt) at 0.1 to 3g/t gold and 5 to 120g/t silver. This Exploration Target estimate is based on previous
drilling, with AC holes completed on 200m spaced sections, spaced 100m apart, and drilled to depths
of less than 200m. Four metre sample composites from this drilling were assayed for a suite of
elements, including gold and silver (see ASX announcement 18 July 2018 which also contains the
JORC Table 1 information). The potential quantity and grade of this Exploration Target is conceptual
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Emu NL
Drilling of new targets and testing of shallow mineralisation
27 September 2018
in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if
further exploration will result in the estimation of a Mineral Resource.
The second style is a deeper, higher grade gold and silver style associated with base metals (copper,
lead, and zinc). This style is more representative of the high gold and silver grade rockchip samples
seen at surface. While the shallow mineralisation conceptually supports the presence of the surface
geochemistry, drilling has yet to intersect the gold and silver grades returned from surface sampling.
This observation leads to the conclusion that such mineralisation (if it has not been eroded) still exists
and lies between the sections drilled to date, possibly coming to surface. Emu is of the view that the
high grade source of the gold and silver grades returned from surface sampling has not been eroded.
Diamond drilling will be used to follow up this style of mineralisation.
Figure 1 Section 5300N, Vidalita. Gold grade histogram in gold, silver in green. This is a
preliminary, simplified geological interpretation based on sparse data and subject to change as
more data comes to hand. Note the two styles of mineralisation represented: a vuggy silica
hosted silver-gold style, and a volcanic breccia hosted gold-silver-base metals style. Coordinate system is WGS84/UTM19S.
Peon 4
Anomalous results from the soil geochemistry survey previously reported (ASX release on 14 May
2018) are associated with a major north-north-east trend along which Anglo American’s Cacique
discovery occurs. The geochemistry reflects High Sulphidation Epithermal pathfinders and has an
identified epithermal-style alteration signature in the satellite data.
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Emu NL
Drilling of new targets and testing of shallow mineralisation
27 September 2018
The target area, 600m wide, 1,200m long and open along strike, will be initially drilled tested with
two lines of inclined, overlapping AC holes (Figure 3).
Figure 2 Vidalita drill hole collars. Black dots are 2017-18 drill collars labelled with hole ID, red
diamonds are the proposed follow-up drill collars for the 2018-19 season. The yellow zone represents the
possible extent of the shallow silver-gold mineralisation target. Co-ordinate system is WGS84/UTM19S.
Figure 3 Peon 4. Soil geochemistry showing gold (yellow low, red high). Black diamonds are the
proposed drill collars for the 2018-19 season. Co-ordinate system is WGS84/UTM19S.
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Emu NL
Drilling of new targets and testing of shallow mineralisation
27 September 2018
Jotahues
Rockchip geochemistry has identified a number of anomalous areas that will be tested with wildcat
drilling. The holes are designed to provide both deeper geochemical sampling and provide geologic
information in this area.
Vidalota D
An anomalous gold geochemistry target identified though soil geochemistry will be preliminarily
tested with two lines of inclined, overlapping AC drilling.
Arroyo Ancho
Geological and geochemical sampling reconnaissance work is planned to be undertaken on this 100%
owned ground. The area has been highlighted through alteration mapping from remote sensing data.
Schedule
Emu’s geological crews are expected to be on site by the beginning of November for geological
reconnaissance and preparatory work (full camp establishment, track and drill pad preparation.) It is
anticipated that the area may be accessible for drilling by the beginning of December. The drilling
season typically extends to the end of April. Sufficient drilling metres will be held in reserve to
enable follow-up of significant results with further drilling as required.
Investor enquiries:
General Manager
T +61 8 9226 4266
E info@emunl.com.au
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Emu NL
Drilling of new targets and testing of shallow mineralisation
27 September 2018
About the Vidalita and Jotahues Gold Projects, Maricunga Belt, Chile
MARICUNGA BELT DEPOSITS
Salares Norte (Gold Fields) – Indicated & Inferred
Resource of 26.8 Mt @ 3.9 g/t Au & 48.9 g/t Ag, for
3.3 Moz Au & 42.1 Moz Ag
Maricunga Mine (Kinross ) - 390 Mt @ 0.7 g/t Au
Cerro Casale (Barrick/Goldcorp) - 1,200 Mt @ 0.6
g/t Au
Cerro Maricunga Mine (Atacama Pacific) - 473 Mt @
0.4 g/t Au
Caspiche project (Goldcorp ) - 810 Mt @ 0.67 g/t Au
Alturas (Barrick) - 5.5M oz @ 1.25 g/t; intercepts of
170 meters grading 2.76 g/t Au
The Vidalita and Jotahues gold projects are located in the Maricunga gold belt in the Atacama Region
in northern Chile hosting numerous world class gold and silver projects. Emu’s projects cover an area
of approximately 135.7 km2 secured by mineral exploration concessions and host alteration and
mineralisation that appear geologically similar to other high sulphidation gold deposits of the
Maricunga gold belt. The projects are accessed using a network of roads that link Copiapó with the
Refugio project (Kinross), Cerro Casale project (Barrick/Goldcorp) and the Caspiche project
(Goldcorp). Refugio is located 30 km to the northwest of Vidalita.
The Company holds an option (Option) to acquire a 100% interest in certain of the Vidalita and
Jotahues concession packages from two Chilean companies.
The concessions, the subject of the Option, comprise two packages: the six Prospex SpA concessions
are subject to a 2% NSR on any production, and the three BLC SpA Jotahues concessions and two
Vidalita (Vidalota A&B) concessions subject to a 1% NSR. Since entering into the Option, additional
concessions have been included in the second package in accordance with the area of influence.
An Option payment of US$100,000 is due in November 2018 if Emu elects to continue with the
project. The Option may be exercised in November 2019 on payment of US$2M following
expenditure of US$1M, the issue of 2.5M Emu shares and then if Emu defines: (i) 0.5Moz of gold
in measured resources, a further 5M ordinary shares will be issued; and (ii) 1Moz of gold in measured
resources, a further 5M ordinary shares will be issued.
Emu continues to look for new mineral exploration, development and mining opportunities within
Australia and at various overseas jurisdictions.
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Emu NL
Drilling of new targets and testing of shallow mineralisation
27 September 2018
Emu NL
ABN 50 127 291 927
ASX Code: EMU
10 Walker Ave
West Perth, WA 6005
T +61 8 9226 4266
E info@emunl.com.au
PO Box 1112
West Perth, WA 6872
Fully paid shares (listed)
90,999,728 (inc. 4m which Emu can buy
back for nil consideration)
Contributing Shares (listed)
33,668,824 paid to $0.03, $0.03 to pay, no
call before 31/12/2018
Options (unlisted)
4,750,000 unlisted options, exercisable at
$0.10, expiring 20 December 2018
2,000,000 unlisted options exercisable at
$0.11 expiring 20 December 2018
300,000 options, exercisable at $0.25,
expiring 20 December 2018
Directors:
Peter Thomas
Non-executive Chairman
Greg Steemson
Non-Executive Director
Gavin Rutherford
Non-Executive Director
COMPETENT PERSON’S STATEMENT
Any details contained herein that pertain to exploration
results, mineral resources or mineral reserves are based
upon information compiled by Mr Marcus Flis, General
Manager of Emu NL. Mr Flis is a Fellow of the
Australasian Institute of Mining and Metallurgy
(FAusIMM) and has sufficient experience in the
activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 edition of the
“Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves” (JORC
Code). Mr Flis consents to the inclusion herein of the
matters based upon his information in the form and
context in which it appears.
FORWARD LOOKING STATEMENTS
As a result of a variety of risks, uncertainties and other
factors, actual events and results may differ materially
from any forward looking and other statements herein
not purporting to be of historical fact. Any statements
concerning mining reserves, resources and exploration
results are forward looking in that they involve
estimates based on assumptions. Forward looking
statements are based on management’s beliefs, opinions
and estimates as of the respective dates they are made.
The Company does not assume any obligation to update
forward looking statements even where beliefs,
opinions and estimates change or should do so given
changed circumstances and developments.
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