Electromagnetic Advances World-Class Australian Graphite Project
Adelaide, July 11, 2017 AEST (ABN Newswire) - Renascor Resources (
ASX:RNU) (RU8:FRA) is pleased to announce the completion of an airborne electromagnetic survey over its advanced Siviour graphite development project in South Australia's Eyre Peninsula. See Figure 2 (refer the link below).
- Recently completed airborne electromagnetic (EM) survey over Siviour graphite deposit confirms shallow, flat-lying orientation of Siviour mineralised body and identifies significant near-surface, flat-lying extensions along strike
- The results follow the recently completed Scoping Study for Siviour (see RNU ASX release dated 23 May 2017) that estimated an operating cost among the lowest of reported graphite developments globally
- The results of the EM survey will be used in advanced mine planning studies and are expected to further contribute to establishing a globally competitive, low-cost mining operation
- The results will also be used to optimize life-of-mine throughput and concentrate production options consistent with product sales opportunities
Commenting on the results, Renascor Managing Director David Christensen stated:
The survey results confirm the shallow, horizontal orientation of Siviour, which we recognise as a key factor underpinning the comparatively low operating costs estimated in our recent Siviour Scoping Study.
We expect Siviour's ability to produce high-quality flake graphite from Australia at costs that are competitive with emerging production globally to be critical in advancing Siviour's development.
By further delineating near-surface, flat-lying graphite, these results offer additional support for establishing a world-class, low-cost mining operation at Siviour as we advance our on-going feasibility studies.
Background
The Siviour Graphite Deposit, located in South Australia's Eyre Peninsula (see Figure 2 in the link below), is among the world's largest reported graphite deposits, with a Mineral Resource estimate of 80.6 million tonnes @ 7.9% TGC for 6.4 million tonnes of contained graphite, including higher-grade mineralisation of 30.1 million tonnes @ 10.0% TGC for 3.0 million tonnes of contained graphite.
Renascor recently completed a Scoping Study for Siviour (see RNU ASX release dated 23 May 2017) that suggests Siviour can produce a high quality flake concentrate at an estimated operating cost among the lowest of reported graphite developments globally.
Discussion
To support on-going advanced mining studies at Siviour, Renascor recently completed an airborne electromagnetic (EM) survey over areas within and adjacent to the Siviour Indicated Resource.
Survey data was collected using the Xcite helicopter EM system over flight lines following a northwest-southeast pattern. Flight-line spacing consisted of 100m-spacing over the Siviour Indicated Resource and areas immediately adjacent to it, and a series of 200m- and 400m-spacing across areas extending further from the immediate Indicated Resource zone.
Analysis of the EM data has confirmed the general shallow, flat-lying orientation of the Siviour mineralised body, as well as identifying significant near-surface, horizontal extensions along strike.
As illustrated in the EM depth slices shown in Figure 3 (see the link below), at an interpreted depth of approximately 20m (top left image), there is strong correlation between conductivity and the Siviour Indicated Resource. In this area, graphite mineralisation commences from approximately 5m to 10m and includes intersections of graphite mineralisation of over 30m.
As shown in the EM cross-section for flight line 1390 (see Figure 3 in the link below, bottom image), the EM data confirms the near-surface, flat-lying orientation of graphite mineralisation over the Indicated Resource and suggests this geometry continues into conductive anomalies in the Buckies and Paxton areas, adjacent to the current Indicated Resource.
At a depth slice of 40m (see Figure 3 in the link below, top right image), larger areas of comparable conductivity are evident to the north of Siviour (at the Buckies prospect) and to the southeast (at the Paxtons prospect). Previous drilling within these prospect areas intersected some of the widest graphite intersections within the project area, suggesting the potential for significant extensions to the current Indicated Resources with a similarly favourable near-surface, flat-lying orientation.
Next steps
Renascor is currently conducting a pre-feasibility study in relation to the development of Siviour. The results of the recent EM survey will be used in advanced mine planning studies and are expected to further contribute to establishing an efficient, low-cost mining operation at Siviour.
The EM results will also be used to define potential resource extensions and to optimize life-of-mine throughput and concentrate production options consistent with product sales opportunities.
Background information
Siviour is part of Renascor's Arno Graphite Project. Renascor has the right to acquire the project through an option agreement between Renascor's wholly-owned subsidiary Eyre Peninsula Minerals Pty Ltd (EPM) and Ausmin Development Pty Ltd (Ausmin). EPM's option to acquire the project is exercisable upon completing a feasibility study in relation to the commercial development of graphite by issuing to the owners of Ausmin a 22% equity interest in a listed vehicle holding the project. See RNU ASX release dated 1 September 2016.
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About Renascor Resources Limited
Renascor Resources Limited (ASX:RNU) is engaged in exploration for copper, gold, uranium and other minerals in Australia. The Company's projects include Arno Graphite Project, which consists of four granted exploration licenses: ELs 5618, 5204, 5496 and 5714, covering approximately 1,372 square kilometers in the Eyre Peninsula.
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