Sydney, May 1, 2008 AEST (ABN Newswire) - Robust Resources Limited (ASX: ROL) which listed on the ASX on 26 February 2007, is a mineral explorer focused on gold, silver, copper, lead and zinc in the Lachlan Fold Belt of NSW. With experienced management who have a track record of major discoveries, Robust is exploring favourable areas near proven world-class deposits and existing infrastructure.
Robust holds five tenements with a total area of 739 km2, four of which are adjacent to or on the same structural trend as major gold producers, and are underlain by rocks of similar age and lithology. The fifth tenement is a previous gold and base metal producer situated in an untested 27km2 epithermal envelope.
ACQUIRES MAJOR MULTI-COMMODITY PROJECT STRATEGIC EXPANSION INTO PACIFIC ARC
KEY POINTS
Romang Island, Indonesia
- Option to acquire 75% interest in Romang Island, an advanced exploration project with multiple target styles; prime prospects ready for immediate drilling.
- 80% of scout drill holes by Billiton (1998-99) in the southern prospect area intersected wide zones of gold-zinc-silver-lead-copper mineralisation, including:
# LWD 02 averaged over 1 g/t Au over entire length 73.9m
# LWD 06 intersected 31m @ 1.2 g/t Au, 2.9% Pb, 1.8% Zn
# LWD 07 averaged 1 g/t Au over entire length of 67.4m
# LWD 08 intersected 4m @ 2.5 g/t Au, 150 g/t Ag, 3.1% Pb, 3.7% Zn
- Drilling by Ashton Mining (1988-91) identified high-grade veins in the northern prospect area, which could support low-CAPEX start-up, including:
# DDHK 01 2.1m @ 29% Pb, 168 ppm Ag, 3.79 ppm Au from 0m
# DDHK 03 2.5m @ 30% Pb, 98 ppm Ag, 1.89 ppm Au from 19.5m
# 2m of trenching @ 19% Pb, 109 ppm Ag, 26.7 ppm Au
# 2m of trenching @ 9.2% Pb, 438 ppm Ag, 8.8 ppm Au
- Mineralising system in the south is situated in a volcanic caldera similar in size to the Lihir gold caldera in PNG.
- Exploration programme to commence April, including mapping and sampling of high-grade veins in the north; and mapping, sampling and geophysics in the south.
- 5000m drill programme to commence in northern and southern prospects in July Quarter, to:
# Delineate high-grade northern 'Kiahar' prospect for mining feasibility.
# Follow up Billiton drilling and identify high-grade volcanogenic massive sulphide (VMS) pods for phase 2 drilling.
SAFETY and ENVIRONMENT
The Company had no lost time injuries. There were no environmental incidents during the quarter.
OPERATIONAL UPDATE
Corporate Activity
Under a Mining Co-operation Agreement with PT Gemala Borneo Utama (PT GBU), the present owner of five mineral titles totalling 25,000 hectares covering the entire Romang Island, Indonesia (Romang), Robust has acquired an option to acquire a 75% interest for five million shares plus $150,000 cash.
In a two-stage acquisition Robust is required to spend $1.5m in the ground to earn a 51% interest in Romang. The Company then has an option to earn a further 24 per cent (taking equity to 75 per cent) by expenditure of a further $3 million.
Robust shareholders subsequently approved the issue and allotment of shares at the General Meeting held on 11 April 2008.
During the quarter discussions were also held with two companies seeking farm-in or JV deals with Robust in relation to the Company's NSW tenements. These discussions are ongoing.
ROMANG ISLAND, INDONESIA
Background
Romang Island is part of the Barat Daya Islands in Indonesia, located at 7.58* S 127.43* E, 60 km east of Wetar Island. Romang is situated within Indonesia's Magmatic Arc, which includes the islands of Sumatra, Java, Sumbawa and Wetar recognised as being richly endowed with gold and base metal deposits. This area contains some of the world's largest and richest gold deposits, including Newmont Mining's massive Batu Hijua.
Previous explorers in the 1980s and 1990s recognised the mineral potential of Romang and carried out geological, geochemical, geophysical exploration programs culminating in a 14-hole diamond-drilling program by Billiton PLC (now BHP Billiton) totalling 2,424 metres.
Billiton spent in excess of US$3 million (1998 dollars) exploring for gold on the southern part of Romang Island. The target was a large zone of alteration and mineralisation situated within the caldera of an extinct submarine volcano, similar in size to PNG's Lihir gold ore body hosting caldera. In addition to identifying gold, Billiton intersected wide zones of lead-silver-zinc-copper mineralisation.
Muswellbrook Energy & Minerals Ltd in cooperation with Ashton Mining Group (1988-91) completed an exploration program in the north, and identified high-grade gold-silver-lead vein targets at the 'Kiahar' prospect. Kiahar is one of seven prospective areas subsequently identified in the north.
Independent consulting geologists Agricola Mining Consultants Pty Ltd reviewed the Romang Island project for Robust in December 2007 and stated the project has " significant potential for the discovery of both very large base metal - gold breccia hosted deposits and exhalative volcanogenic massive sulphide base metal - precious metal deposits." At the time of the review, data from the northern areas was not available.
Lakuwahi Prospect (South)
Lakuwahi in the south is the current prime target with the potential to host a large base metal - gold breccia deposit and high-grade exhalative volcanogenic massive sulphides. Eighty Percent (80%) of the holes drilled by Billiton intersected economically significant gold-silver-zinc-lead-copper mineralisation - an excellent hit rate for scout drilling. Key results from the Billiton drilling included:
- LWD 02 averaged over 1 g/t Au over its entire length of 73.9 metres.
- LWD 07 averaged 1 g/t Au over its entire length of 67.4 metres.
- LWD 08 intersected a 30 metre zone averaging 1.43 g/t Au and LWD 06 intersected 4 metres at 2.48 g/t Au and 3 metres at 2.39 g/t Au at shallow depths and base metal intersections of 4m @ 3%Pb,and 3m @ 4.8% Zn.
The size of the Lakuwahi alteration and mineralising system is demonstrated by the large geochemical and magnetic anomalies covering an area of approximately 20 square kilometres.
The Lakuwahi prospect has barite-style mineralisation similar to the Kali Lerokis/Kuning projects on Wetar Island. Wetar, located 60km to the west of Romang, previously mined by Billiton. Wetar is currently being developed by Finders Resources (ASX/AIM: FND).
Whilst Romang hosts similar Wetar-style epithermal gold-barite targets, it is also prospective for volcanogenic massive sulphide and large polymetallic tonnage breccia sulphides. Further, Romang presents an opportunity to quickly deliver a maiden resource.
Kiahar Prospect (North)
In the northern parts of Romang Island several prospective gold-silver-lead-zinc-barite veins exist at 'Kiahar' and nearby 'Pawawan', 'Joirtuna' and 'Dedern'. All are prime drill targets with the potential to be developed into a low-CAPEX, direct-shipping (ore) operation.
Diamond drilling (18 holes for a total of 756.8m), trenching and soil sampling by Ashton Mining (1998-1991) identified several high grade quartz-galena vein stockworks at the 'Kiahar' prospect with high grade lead intersections including:
- DDHK 01 2.1m @ 29% Pb, 168 ppm Ag and 3.79 ppm Au from 0.0m
- DDHK 03 2.5m @ 30% Pb, 98 ppm Ag and 1.89 ppm Au from 19.5m
- 2m of trenching @ 19% Pb, 109 ppm Ag and 26.7 ppm Au
- 2m of trenching @ 9.2% Pb, 438 ppm Ag and 8.8 ppm Au
Exploration Program
An initial 10-month exploration program was announced during the quarter to explore the northern and southern prospects concurrently. A key objective will be to bring one of the northern prospects, which has the potential to be developed into a low-CAPEX direct shipping (ore) operation into rapid production.
Southern (Lakuwahi) Prospect
The southern 'Lakuwahi' prospect, which is the prime large-scale target, has several mineralisation styles with the potential to host a large base metal-gold breccia deposit, Wetar-style epithermal gold-barite deposit and high-grade poly metallic exhalative volcanogenic massive sulphide pods.
The main objective of the exploration program will be to follow up earlier Billiton drilling to better understand the geological setting. It is proposed that phase 1 of the program will consist of detailed geological mapping, geochemical (rock chip sampling), 2,500m of step out diamond drilling and geophysical (magnetic, gravity, IP) work to identify high-grade volcanogenic massive sulphide (VMS) targets within the deposit for phase 2 detailed drilling.
Northern Prospects
The main initial objective in the North is to define a resource on the high-grade Pb-Ag-(Au) veins at Kiahar through 2,500m of diamond drilling. This will be followed by completion of a feasibility study to assess the potential of bringing 'Kiahar' into production through shallow open cut mining Pb-Ag Galena lump ore to be shipped direct to Asian smelters, providing an early income stream.
Other northern prospect area work (9 target areas) will comprise mapping and geochemical sampling to identify and prioritise targets for drilling.
Current Status
A camp has been established in the Southern area and another camp is in the process of being established in the North to support activities in each area. Two diamond drill rigs are being mobilised along with labour. Drilling is expected to commence in the July Quarter.
NSW TENEMENTS
EL 6414 'BAULOORA' (100% equity)
A drilling programme was undertaken from late October to mid November 2007. In all 2 pre-collared diamond holes, and 10 RC percussion holes, were completed. Five of the holes, including the 2 diamond holes, were designed to test the main vein at depth, and the balance were designed to test various bedrock anomalies adjacent to the main vein, and further away.
Eleven of the holes were drilled at 50 degrees declination to the east, and one at 50 degrees to the west. The two diamond holes, designated holes 1 and 2, were pre-collared (RC percussion drilled) to 60 and 100 metres respectively, and reached final depths of 162 and 262 metres. The 10 RC percussion holes ranged from 50 to 120 metres. In all 264 metres of diamond, and 868 metres of RC percussion drilling was undertaken.
In the 2 diamond holes mineralisation was noted to occur in 4 to 6 narrow, steeply dipping brecciated (silica-carbonate-chlorite-kaolin-sulphide) veins cross-cutting (shallow dipping) acid volcanic rocks (mainly medium grained rhyodacitic tuffs, with minor fine grained water lain equivalents). Host rocks were clearly silicified, chloritised and epidotised to varying degrees, especially adjacent to veins. Sulphides in veins were quite noticeable and varied in concentration from minor to abundant. They consisted of mainly fine grained (honey coloured) sphalerite and fine to very fine-grained "sooty" galena, with lesser chalcopyrite, pyrite and arsenopyrite. Proportions of the two main sulphides were difficult to estimate visually.
In the 10 RC percussion holes, veins, sulphides and weathered (ferruginised) sulphides were locally evident, but were not as distinct as in the 2 diamond holes. Visual evidence pointed to the presence of 4 to 6 sulphide bearing "veins" in each of holes 1 and 2. The 10 RC percussion holes also showed local evidence of veins as sulphides and weathered sulphides.
In order to properly evaluate sulphide zone extents and concentrations, 281 percussion chip samples and 41 half core samples (52.3 metres of core split) were collected over various intervals ranging from 20 cm to several metres, and submitted for gold, silver, copper, lead, zinc and arsenic analysis.
Geochemical results from the 10 RC percussion holes revealed the following:
- Continuity of the main sulphide vein for about 250m to the south, and 150m to the north of the "main" (historical) shaft-detected in holes 1, 2, 3, 3A, and 6.
- Absence of significant mineralisation in hole 4 (200m north of main shaft -stopped short) and hole 6 (500m north of main shaft). The latter suggests that the top of the main vein plunges to the north.
- Hole 8 detected a probable new vein about 150m east of the main vein-1m intersection at 5.1% Pb, 2.44% Zn.
- Other holes encountered minor sulphide concentrations, detected originally in soil geochemical survey.
- Overall results were encouraging (eg in hole 3A 76 to 78m - 6.8% Zn, 1.9% Pb, 3.2g/t Au over 1m, or 4.5% Zn, 1.45% Pb, 2.1g/t Au over 2m)
- There is also the possibility that the veins are part of a larger system that joins up and increases in size with depth, becoming a significant resource.
The southern boundary of this EL is proximal to, and on strike with, the old Mt Boppy Gold Mine. Earlier maglag and rock chip sampling by Robust in that area yielded anomalous gold values, as did sampling at Langbein and Mc Guinness. In October 2007 follow up prospecting was undertaken, using air-core drilling on 13 accessible targets. In all 176 holes were drilled, with holes spaced at 10m intervals along lines ranging in length from 60 to 300m. Samples were analysed for gold (1ppb), silver (0.2 ppm), arsenic, copper, lead and zinc (all 2 ppm). [detection limits-in parts per billion and parts per million, shown in brackets]
The above work outlined two strongly gold (Au) anomalous areas-at Langbein (associated with anomalous Pb and As) and at North Mc Guinness (associated with anomalous Pb) plus three other slightly Au anomalous areas. These were described in detail in the Dec 2007 Quarterly Report.
These gold targets enhance the prospectivity of the southern part of the EL, particularly in the Langbein and Mc Guinness areas. A programme of RC percussion and/or diamond drilling is now required to test for gold mineralisation at depth-beneath leached and weathered bedrock. Minor gold mineralization- 2.2 g/t Au, down to 12m-was noted by previous explorers in the Buds Tank/ Mc Guinness areas. Drilling by Robust was not possible during the current quarter due to non-availability of drill rigs.
There is a reasonable chance that one or more small low to medium grade gold deposits could be found in the Langbein/McGuiness/Buds Tank areas of the EL, in which case ore could be trucked to nearby treatment facilities at Mt Boppy. The best case scenario would be discovery of a hidden Mt Boppy style deposit.
Base Metal Targets
The highly prospective (ferruginised/silicified, base Pb anomalous) Florida Trig/Chert Ridge/North Pole zone, which runs up the middle of the EL, will be mapped and rock chip sampled in April 2008, to hopefully delineate drill targets. Detailed 10,000 scale coloured air photos will be used to enhance ground control. Aeromagnetics, including a large magnetic anomaly in the east of the EL will be electronically filtered/computer enhanced to delineate sub- targets for future sampling/ drilling.
EL 6415 "TINDAREY" (100% equity)
Robust initially collected some 325 maglag and 29 rock chip samples from areas of interest, especially the Mt Merrere gold field.
The Mt Merrere gold field, 2 to 4 km SSE of Mt Merrere, and near the Kidman Way, is a priority target sampled by Robust on two occasions last year. As noted the field consists of numerous shallow pits, and many deep shafts (20- 30m) extending along strike for about 1.5 km. Names in the DPI records include Burtons shaft, Levers prospect, Lone Hand mine and Kinkead prospect. Gold values and extents are considerable-eg 120m width at 3.8 g/t gold in Lone Hand mine, and up to 3.6g/t in grab samples collected by recent past explorers. Gold mineralisation occurs in sheared and altered sediments (locally phyllitic sandstone and siltstone) and tuffs impregnated by swarms of discontinuous quartz-(with minor sulphide) veins, 5 to 10m in length, locally up to 40-50m, and up to 1.5m in width. The mineralised zone appears to be 50 to 100m plus wide. Veins trend northerly and northwesterly, and, in part cut across bedding and cleavage. As noted of 22 rock chip samples collected by Robust 13 were anomalous as follows (averag
e values in ppm, range in brackets)- Au 0.44 (0.01-2.15), Ag 1.40 (0.4-3.5), As 475 (21-1970), Cu 642 (35-1740), Pb 1908 (43-4290), Zn 480 (46-1640), suggesting the primary ore consists of gold with minor pyrite, arsenopyrite, galena and sphalerite.
Carefully selected targets (from DPI sources, and Robust data) will be probed by some 6 to 8 RC percussion holes, when rigs become available in 2008.
EL 6416 "MT BARROW" (100% equity)
Mt Barrow EL has many prospective targets including the Glengarry gossans, Herald-New Era-Victory gold diggings, and Rankins-Bradburys diggings. These will shortly be prioritised, mapped/prospected and rock-chip sampled. Significant anomalies will be air core sampled later in 2008, in the same manner as at Copper Gossan Dam in 2007.
RESPONSIBILITY FOR EXPLORATION RESULTS STATEMENTS
- The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Pieter Moeskops BSc PhD DIC who is a member of The Australian Institute of Mining and Metallurgy.
- Pieter Moeskops is a full time employee of the Company.
- Pieter Moeskops has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Pieter Moeskops consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
CORPORATE
Cash and Funding Position
At the end of March 2008, Robust had A$1,308,814 cash at bank and no debt. The Company considers that it is fully funded to complete the current exploration projects on all tenements.
Contact
Gary Lewis
www.robustresources.com.au
Tel: +61-2-8249-4384
Fax: +61-2-8249-4962
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