Sydney, June 25, 2008 (ABN Newswire) - Trafford Resources Limited (ASX: TFR) has offered to acquire a 19.98% interest in Robust Resources Limited (ASX: ROL) with a placement of $1.4 million for 7.2 million fully paid shares to be issued at A$0.20c each, to take a position in Robust's 25,000 sq. km Romang Island gold and base metals project in Indonesia's Magmatic Arc.
The offer, which is subject to approval by Robust shareholders, will provide additional funding, and Trafford's proven technical expertise, to an expanded exploration program in the highly prospective area.
The offer by Trafford also proposes:
- The issue to Trafford of one option for each two shares issued (3.6 million options) to be exercised at 30c each within 24 months. If exercised this will give Trafford a 26.57% interest in a fully capitalised Robust and provide a further A$1.08m for exploration funding on Romang.
- The right to nominate two Directors with exploration expertise to the Robust Board. Trafford's Managing Director, Ian Finch, B.Sc. (Hons), is currently also the Chairman of Robust so the offer, if accepted, will require the appointment of one additional geoscientist to the Board. Trafford plans to nominate its independent director, Mr Shane Sadlier, B.Sc. (Hons), for the position.
The independent directors of Robust Resources will recommend to shareholders the acceptance of the Trafford offer and look forward to further developing the Romang Island tenements in cooperation with Trafford.
Romang Island, which was acquired by Robust Resources in February this year, has a mineralising system comparable in size to that at Lihir in PNG. The five mineral titles involved total 25,000 hectares and cover the entire volcanic Island.
Billiton explored Romang Island for silver and lead during the 1990's, with good results from its preliminary work which included drilling. However the property was sold in the rationalisation of global assets following the merger of BHP and Billiton.
Soil, stream and rock chip geochemistry were previously completed during a number of exploration programs and identified a number of anomalous areas (Figure 1). Two of these areas were followed-up by limited drilling programs. The two prospects drilled are at the Lakuwahi Prospect in the south of the island and the Kiahar prospect in the north.
Lakuwahi Prospect
Exploration activities were completed by Billiton during 1997-1999. A detailed soil geochemistry survey was completed over an area characterised by low magnetic intensity. A large area of anomalous soil geochemistry was defined based on analyses of Au, Ag and Ba. It is important to note that a large part of the soil survey grid is overlain by reef limestone, which may mask underlying mineralisation.
Follow-up scout drilling of 14 diamond holes for 2,424m within the identified anomalous areas was then completed. The best reported drilling results from the Lakuwahi Prospect included*:
* Laporan Terminasi Kontrak Karya PT Prima Wetar Mining (March 1999) p30, 34, 35
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Hole From To Width Au g/t Ag g/t Cu% Pb% Zn % Ba%
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LWD01 4 7 3 0.26 65 0.1 1.9 0.4 18.5
13 21 8 0.14 141 0.08 0.7 0.6 1.2
60 62 2 0.14 14 0.06 0.7 1.5 0.4
LWD02 0 44 44 1.53 27 0.13 0.4 0.03 8.2
incl. 15 42 27 1.43 63 0.20 0.16 0.03 6.2
and 22 24 2 8.12 15 0.01 0.2 0 7
51 53 2 0.28 15 0.07 2.3 0.6 4
56 58 2 0.54 25 0.15 1.6 1.3 3
72 74 2 0.5 6 0.04 0.3 1.1 2.5
LWD03 0 3 3 0.23 1 0.33 7.8 0.4 11.3
21 25 4 0.14 83 0.22 0.7 0 1.3
LWD04 32 33 1 19 3 0.01 0.1 0.6 0.2
LWD05 8 9 1 0.19 13 0.12 2.5 4.0 0.8
LWD06 12 16 4 2.48 150 0.26 3.1 3.7 41.1
39 42 3 1.7 27 0.08 0.1 0.1 0.4
LWD07 23 27 4 2.27 20 0.36 0.5 0.3 22
31 40 9 1.86 7 0.02 0 0 2.0
50 67 17 0.59 38 0.18 1 1 5.7
LWD08 14 19 5 0.55 95 0.05 1.2 0.1 2.6
37 68 31 1.17 34 0.26 2.9 1.8 6.2
75 77 2 0.15 12 0.05 1.3 1.3 0.5
83 85 2 0.14 16 0.07 1 1.3 0.9
181 212 31 0.07 8 0.15 0.9 2 1.1
LWD09 6 15 9 0.02 255 0.03 0.7 0 24.5
45 67 22 0.01 61 0.14 1.2 1 3.7
75 87 12 0.01 24 0.02 1.1 1.3 1.6
LWD10 50 126 76 0.03 43 0.09 2.3 1.4 2.3
130 133 3 0.01 11 0.04 0.7 1.6 2.5
149 151 2 0.01 22 0.03 0.8 1.3 0.5
LWD12 63 70 7 0.76 50 0.37 1.5 0.3 10.7
77 133 56 0.19 14 0.07 1.2 1.2 5.1
140 151 11 0.17 27 0.2 1.1 1.5 3.3
163 166 3 0.21 52 0.57 1.4 2.3 2.3
LWD14 42 47 5 0.14 68 0.23 1.3 2.3 0.2
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Table 1: Lakuwahi Prospect Significant Diamond Drill Results
Kiahar Prospect
Located near the northern coast of Romang Island the Kiahar Prospect was identified by the Ashton Group and exploration activities were completed between 1988 and 1991. Work completed included ridge crest geochemical sampling, trenching, mapping and follow-up diamond drilling. Eighteen holes were completed for 756m.
The best results from the trenching program were 18m @ 11g/t Au while the best reported drilling results included**:
** "Geological Setting, Style and Exploration of Gold-Silver Mineralisation on Romang Island, Moluccas province, East Indonesia". S.L. Garwin and Herryansyah, 1992, Ashton Group Indonesia p262.
- DDH-K01 2.1m @ 3.79g/t Au and 20% Pb from surface.
- DDH-K03 2.5m @ 1.89g/t Au and 30% Pb from 19.5m.
- DDK-K06 1.0m @ 1.06g/t Au and 0.4% Pb from 12m
- DDK-K16 1.3m @ 1.23g/t Au and 8.2% Pb from 59m
Of the 18 holes completed 12 were less than 50m total depth and 10 holes were drilled vertically. Drilling identified a zone of quartz -galena vein types trending NNW and dipping about 40 degrees to the west. The zone was described to have a strike extent of 200m.
Other Prospects
Two other prospects, Perra and Larmemere, have also been identified in the northern area of Romang Island and have previously had systematic soil geochemistry surveys completed. No follow-up work has yet been carried out.
The Larmemere soil survey shows strong Pb anomalism with some gold and silver support. The data have not been plotted up but anomalous areas appear to extend over several hundred metres. The geology mapping in this area shows outcropping areas of quartz-barite veining and stock working. This area appears to be prospective for both gold and base metal mineralisation.
The Directors of Trafford Resources consider that the large Lakuwahi Prospect at the southern end of the island, has the potential to host a large base metal-gold breccia deposit and high-grade exhalative volcanogenic massive sulphides. The prospect has barite-style mineralisation similar to the Kali Lerokis/Kuning projects on nearby Wetar Island, which is being developed by Finders Resources Limited.
The Directors of Trafford also note that the success of their offer for a 19.98% interest and role in assisting the exploration activities of Robust Resources will add significantly to Trafford's asset base.
Robust Directors believe that the funds generated by such a placement will provide sufficient initial finance to develop the Romang tenements to the extent required for a project of this magnitude.
