Mt Lindsay Project, North West Tasmania

The Mt Lindsay Project (148 km2) is located in north-western Tasmania within the contact metamorphic aureole of the highly perspective Meredith Granite. The project sits between the world class Renison Bell Tin Mine (Metals X Ltd/Yunnan Tin Group >231kt of tin metal produced since 1968) and the Savage River Magnetite Mine (operating for > 45 years, currently producing approximately 2.5 Mtpa of iron pellets). Mt Lindsay has excellent access to existing infrastructure including hydro-power, water, sealed roads, rail and port facilities.

Venture owns 100% of the tenure that hosts both the Mt Lindsay Tin-Tungsten Deposit and all of the surrounding prospects.

 

Location Map for Mt Lindsay Tin-Tungsten Deposit/Riley DSO Deposit/Livingstone DSO Deposit

 

Since commencing exploration on the project in 2007, Venture has completed approximately 83,000m of diamond core drilling at Mt Lindsay and defined JORC compliant Measured, Indicated and Inferred Resources.

  

Table One | Resource Statement - Mt Lindsay Tin-Tungsten Project

Lower Cut (Tin equity)

Category

Tonnes

Tin Equiv. Grade

Tin Grade

Tungsten Grade (WO3)

Mass Recovery of Magnetic Iron (Fe) Grade

Copper Grade

Contained Tin Metal (tonnes)

Contained Tin/ Tungsten Metal (tonnes)

0.20%

Measured

8.1Mt

0.6%

0.2%

0.1%

17%

0.1%

18,000

29,000

Indicated

17Mt

0.4%

0.2%

0.1%

15%

0.1%

32,000

43,000

Inferred

20Mt

0.4%

0.2%

0.1%

17%

0.1%

32,000

41,000

TOTAL

45Mt

0.4%

0.2%

0.1%

17%

0.1%

81,000

113,000

0.45%

Measured

4.3Mt

0.8%

0.3%

0.2%

18%

0.1%

12,000

22,000

Indicated

5.2Mt

0.7%

0.3%

0.2%

15%

0.1%

14,000

22,000

Inferred

3.9Mt

0.6%

0.3%

0.1%

9%

0.1%

12,000

17,000

TOTAL

13Mt

0.7%

0.3%

0.2%

14%

0.1%

38,000

61,000

 

Note:

 

Reporting to two significant figures. Figures have been rounded and hence may not add up exactly to the given totals. Full details of the estimate are in the ASX announcement for the Quarterly Report on 17 October 2012.

 

Notes:

  • The Sn equivalent formula used to calculate the Sn equivalent values for the Main and No.2 Skarns is as follows: Sn Equivalent (%) = Sn% + (WO3% x 1.90459) + (mass recovery % of magnetic Fe x 0.006510) + (Cu% x 0.28019). Whereas for the Sn equivalent formula used to calculate the Sn equivalent values for the Stanley River South and Reward Skarns is as follows: Sn Equivalent (%) = Sn% + (WO3% x 1.65217) + (Cu% x 0.34783).
  • The mass recovery of the magnetic iron is determined mostly by Davis Tube Results ("DTR"). 
  • The Sn equivalent formulae uses a tin metal price of US$23,000/t, an APT (Ammonium Para Tungstate) price of US$380/mtu (1mtu =10kgs of WO3), a magnetite concentrate price of US$110/t and a copper metal price of US$8,000/t.
  • Pilot scale metallurgical testwork has been completed on the Main and No.2 Skarns with results indicating the metallurgical recovery for tin is 72%, for WO3 is 83%, for iron in the form of magnetite is 98% and for copper is 58%. The results of this testwork are stated in the ASX announcement of 31 August 2012.
  • It is the Company's opinion that the tin, WO3 and copper as included in the metal equivalent calculations for the Stanley River South and Reward Skarns have a reasonable potential to be recovered for when the Mt Lindsay Project goes into production.

The resource base at Mt Lindsay is hosted within two magnetite rich skarns (Main Skarn and the No.2 Skarn) which extend over a total strike of 2.8 km and remain open at depth. Additional indicated and inferred resources have been defined at the Reward and Stanley River South Prospects, which extend over an additional 1.1 km of strike. 

Recently, Venture has focussed efforts at Mt Lindsay on identifying additional high grade tin/tungsten targets in close proximity to the Mt Lindsay Deposit. The low cost exploration work is part of a broader strategy focussed on identifying high grade mineralization within trucking distance of the existing deposit that has the potential to further strengthen the economics of the Mt Lindsay Project. 

In recent months, Venture has successfully defined eight new targets considered prospective for high grade tin/tungsten mineralization as well as targets prospective for copper and nickel mineralization. These targets are hosted within the broader skarn units identified throughout the Mt Lindsay area of which to date only 10% have been drill tested. 

Recently, the Company continued to focus on reconnaissance work designed to identify additional targets in the broader Mt Lindsay area.  

 

Figure Eleven | Mt Lindsay - recently identified exploration targets