results!, page-34

re: results!-to newry Newry -Here is the full ann.
8 PAges. If it doesn't take it all - I'll post you a link.
Rakia
1131 Hay Street, West Perth, W.A. 6005 PO Box 1036 West Perth, W.A. 6872
Tel: (08) 9486 7100 Fax: (08) 9486 7300. Website: www.matrixmetals.com.au Email: [email protected]
J:\Company Sec\ASX\Company Announcements\MtWatsonDrilling1Aprilr04Final.doc
1 April 2004
Manager Company Announcements
Company Announcements Office
Australian Stock Exchange Limited
Level 10, 20 Bond Street
SYDNEY NSW 2000
ABN 42 082 593 235
Electronic delivery
No of pages: 8
Dear Sir,
ANNOUNCEMENT
Primary Sulphide Copper Intersection
at Mt Watson and Capital Raising
Summary
Matrix Metals Limited is delighted to announce the following:
• A primary sulphide copper drill hole intersection of high grade
chalcopyrite and chalcocite has been reported at Mt Watson. The drill
hole, MWRC 130, reported an intercept of 20m @ 3.03% Cu from
163m including 8m @ 4.89% Cu from 175m. Intersecting this
primary mineralisation, particularly at this high grade, greatly
exceeded expectations.
The drill hole was terminated in high grade mineralisation due to the
depth capacity of the drill rig being reached. This resource grade and
width primary copper mineralisation indicates that a sulphide copper
resource may be defined at Mt Watson.
• Further success has been recorded in the ongoing oxide copper
drilling program at Mt Watson.
• Matrix has reached in-principle agreement with Hartleys Limited
(“Hartleys”) to place $15 million to its international and domestic
institutional clients. The Company will also undertake a Shareholder
Purchase Plan for up to $5000 per shareholder, to all shareholders
registered with Matrix’s share registry as at Thursday 8 April 2004.
• The funds raised will be applied to expanded drilling programs in the
Mt Watson region, increased exploration at the White Range project
area and to proceed with a exploration program to assess the primary
sulphide potential over the Company’s Mt Isa inlier tenement holding.
2
Primary Sulphide Intercept
Drill hole MWRC130, in which the primary sulphide mineralisation has been
intercepted, is located in the Western Zone of the Mt Watson deposit and was
collared to intercept mineralisation 50m to 70m down dip of the previously
reported intersection of 70 metres @ 1.34% copper. The drill hole intersected
significantly higher grade chalcopyrite and chalcocite mineralisation in the target
area.
The drill hole was terminated in the high grade mineralisation at 183m due to
the depth capacity of the drill rig being reached. Drilling equipment appropriate
for further testing the mineralisation will be mobilised to site as soon as
practicable.
The partially complete intersection is highly significant as it is the first intercept
reporting primary sulphide copper mineralisation of grades and width which
indicate that a primary sulphide copper resource may be defined at Mt Watson.
A diagrammatic representation of the MWRC 130 intercept is presented below.
3
Oxide Copper Drilling Results
Matrix has also received assays for copper intersections of significance from
the ongoing drilling Mt Watson which include:
Drillhole No Intersection
MWRC 111 15m @ 1.48 % Cu from 57m
and 22m @ 1.01 % Cu from 87m
MWRC 112 24m @ 0.83 % Cu from 60m
MWRC 113 21m @ 1.42 % Cu from 0m
MWRC 118 9m @ 1.09 % Cu from 54m
MWRC 120 8m @ 1.44 % Cu from 41m
MWRC 121 23m @ 1.17 % Cu from 130m
MWRC 124 17m @ 0.77 % Cu from 49m
MWRC 125 8m @ 0.78 % Cu from 51m
MWRC 129 10m @ 0.92 % Cu from 71m
MWRC 130 20m @ 3.03 % Cu from 163m
MWRC 131 6m @ 1.42 % Cu from 80m
and 9m @ 1.14 % Cu from 103m
MWRC 133 23m @ 0.94 % Cu from 110m
The points of significance in regard to these oxide copper intercepts are:
• The results have confirmed extensions to resource grade mineralisation in
the up-faulted block immediately north of the Central Zone mineralisation.
The up-faulting has moved the mineralised horizon closer to the surface in
this area and has therefore extended the potential size of the open cut
resource.
• The results confirm additional widespread relatively thick, high grade
mineralisation on the down dip northern extension of the Western Zone,
including the high grade intercepts reported above, which are also
supported by significant intersections in other nearby holes.
• Resource grade mineralisation has been confirmed in the 100m spaced
scout drilling between the Vegetation Anomaly Area and the Western Zone
which now further extends the mineralisation and resource potential to the
west.
Drilling continues at Mt Watson with the mineralisation remaining open in all
directions. Based on these results and the increased availability of funds as
detailed in the next part of this announcement, drilling activities at Mt Watson
will be increased including mobilisation of additional drilling rigs to allow testing
of the newly confirmed primary sulphide potential.
Full details of the copper intercepts are presented in Table 1 with drill-hole
details and locations presented in Table 2.
4
Capital Raising
Matrix has reached in-principle agreement with Hartleys to place 130,434,783
ordinary shares at an issue price of 11.5 cents per share to raise $15,000,000
(the “Issue”) principally to Hartleys international and domestic institutional
clients.
The Issue is being undertaken in two tranches, with the first tranche comprising
55,737,746 shares at 11.5 cents per share placed pursuant to the Company’s
15% placement authority and the second tranche being 74,697,037 shares at
11.5 cents per share placed subject to shareholder approval at a general
meeting of shareholders to be held on or about 5 May 2004.
In addition, the Company also intends to undertake an offer of shares to
shareholders by way of a Share Purchase Plan (“SPP”) to raise up to a further
$5,000,000 at 11.5 cents per share. Under the SPP, each shareholder
registered with the Company’s share registry as at Thursday 8 April 2004 will be
invited to subscribe for new shares up to a total value of $5,000 each. If
subscriptions for the SPP exceed $5,000,000 all applications will be scaled
back pro-rata by the oversubscription percentage.
Expanded Exploration Program
The funds raised from the Issue will be applied to an expanded exploration
program in the Mt Watson region, at the White Range project area and will
include an exploration program to assess the primary sulphide potential across
Matrix’s Mt Isa inlier tenement holding. This expanded program will include
deep drilling to further assess the primary sulphide zone potential of the Mt
Watson deposit.
The expanded exploration program will include continuing exploration at the
White Range Project area with a view to increasing the oxide copper resource
inventory, targeting an increase in the production life of the project and
potentially a production capacity increase from the currently proposed
15,000tpa to 20,000tpa of copper cathode.
Specifically the expanded exploration program will target the following:
• Exploration at Mt Watson to further delineate oxide copper resources
within the known areas of mineralisation of the deposit as well as
further testing strike extensions to the east and west of the existing
resource area. In addition, drilling programs will be extended at depth
to further test the now identified primary sulphide zone.
• Programs in the Mt Watson region will also be designed to test the Mt
Watson “look a like” prospects known as Mt Earl, Tewinga and Mt
Wonder. Regional exploration will also target the identification of
additional prospects in the Mt Watson region.
5
• At White Range, exploration will continue in a more aggressive form
both to the north and south of the Greenmount deposit as well as at
the Desolation, Copper Canyon and Toby Barty prospects. All of
these prospects produced positive results from a scout drilling
program completed in 2003.
• Primary sulphide exploration programs will proceed, (in addition to
the deep drilling at Mt Watson) and will involve field mapping and
sampling and a range of geophysical programs to identify primary
sulphide zone drill targets across Matrix’s tenement position.
These exploration activities will proceed in parallel with completion of the White
Range Bankable Feasibility Study (BFS) that has been funded by a debt facility
secured from SG Australia Limited (“SG”). It is noted that the BFS is proceeding
as planned with defined targets and objectives being achieved.
Yours Faithfully
Andrew Chapman
Chief Executive Officer
The information in this report that relates to Mineral Resources and Ore Reserves is based on
information compiled by Mr Bob Dennis. Mr Bob Dennis is a Member of the Australasian Institute of
Mining and Metallurgy and a full-time employee of the Company. Mr Dennis has sufficient experience
which is relevant to the style of mineralisation and the type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 1999 edition of the
“Australasian Code for Reporting of Mineral Resources and Ore Reserves. Mr Dennis, consents to the
inclusion in the report of the matters based on information in the form and context in which it appears.
1131 Hay Street, West Perth, W.A. 6005 PO Box 1036 West Perth, W.A. 6872
Tel: (08) 9486 7100 Fax: (08) 9486 7300. Website: www.matrixmetals.com.au Email: [email protected]
J:\Company Sec\ASX\Company Announcements\MtWatsonDrilling1Aprilr04Final.doc
Table 1
Mt Watson Deposit
February & March 2004 RC Drilling
Details of Copper Intersections
(cut-off of 0.5% Cu, including up to 2m internal dilution)
Hole No Intersection
MWRC111 3 m @ 1.14 % Cu from 51m
and 15 m @ 1.48 % Cu from 57m
and 22 m @ 1.01 % Cu from 87m
MWRC112 3 m @ 0.56 % Cu from 45m
and 24 m @ 0.83 % Cu from 60m
MWRC113 21 m @ 1.42 % Cu from 0m
and 1 m @ 0.58 % Cu from 29m
and 5 m @ 0.51 % Cu from 32m
MWRC114 1 m @ 0.63 % Cu from 54m
and 2 m @ 0.72 % Cu from 57m
MWRC115 4 m @ 0.83 % Cu from 19m
and 2 m @ 0.65 % Cu from 31m
MWRC116 1 m @ 1.05 % Cu from 25m
and 1 m @ 0.91 % Cu from 30m
and 1 m @ 0.58 % Cu from 43m
and 2 m @ 0.81 % Cu from 51m
MWRC117 1 m @ 0.58 % Cu from 35m
MWRC118 2 m @ 0.80 % Cu from 24m
and 3 m @ 0.66 % Cu from 32m
and 9 m @ 1.09 % Cu from 54m
and 6 m @ 0.64 % Cu from 69m
MWRC119 6 m @ 0.90 % Cu from 40m
and 3 m @ 2.78 % Cu from 79m
MWRC120 2 m @ 0.74 % Cu from 31m
and 1 m @ 0.55 % Cu from 37m
and 8 m @ 1.44 % Cu from 41m
and 1 m @ 0.91 % Cu from 51m
MWRC121 3 m @ 1.00 % Cu from 83m
and 1 m @ 0.85 % Cu from 94m
and 1 m @ 1.40 % Cu from 101m
and 23 m @ 1.17 % Cu from 130m
MWRC122 4 m @ 0.70 % Cu from 52m
and 1 m @ 1.14 % Cu from 75m
and 3 m @ 1.10 % Cu from 79m
and 3 m @ 1.29 % Cu from 89m
MWRC123 4 m @ 0.52 % Cu from 76m
and 1 m @ 0.64 % Cu from 113m
and 1 m @ 0.54 % Cu from 116m
and 2 m @ 0.64 % Cu from 121m
MWRC124 4 m @ 0.68 % Cu from 36m
7
and 17 m @ 0.77 % Cu from 49m
and 1 m @ 0.67 % Cu from 71m
MWRC125 5 m @ 1.22 % Cu from 31m
and 4 m @ 1.03 % Cu from 43m
and 8 m @ 0.78 % Cu from 51m
MWRC126 4 m @ 0.66 % Cu from 34m
MWRC127 1 m @ 1.00 % Cu from 68m
MWRC129 1 m @ 0.55 % Cu from 26m
and 6 m @ 1.60 % Cu from 38m
and 1 m @ 0.67 % Cu from 50m
and 1 m @ 0.60 % Cu from 54m
and 1 m @ 0.96 % Cu from 58m
and 10 m @ 0.92 % Cu from 71m
MWRC130 1 m @ 0.56 % Cu from 69m
2 m @ 0.86 % Cu from 83m
and 1 m @ 0.53 % Cu from 89m
and 20 m @ 3.03 % Cu from 163m*
including 8 m @ 4.89 % Cu from 175m*
MWRC131 6 m @ 1.42 % Cu from 80m
and 9 m @ 1.14 % Cu from 103m
and 4 m @ 0.97 % Cu from 122m
and 5 m @ 1.00 % Cu from 133m
and 1 m @ 0.61 % Cu from 158m
MWRC132 1 m @ 0.66 % Cu from 113m
and 1 m @ 1.01 % Cu from 119m
MWRC133 4 m @ 1.31 % Cu from 76m
and 3 m @ 1.06 % Cu from 85m
and 1 m @ 0.93 % Cu from 99m
and 1 m @ 0.64 % Cu from 104m
and 23 m @ 0.94 % Cu from 110m
* Incomplete intercept, last interval above cut-off
Table 2
Mt Watson Deposit
February & March 2004 RC Drilling
Drill Hole Details and Location
Hole No Northing Easting RL Dip Azimuth (mag) Hole Depth (m)
MWRC111 5018.7 9548.6 274.4 -70 198.3 131
MWRC112 4999.6 9750.6 256.4 -60 198.3 93
MWRC113 5008.5 9849.2 262.6 -60 198.3 81
MWRC114 5023.4 9898.7 262.5 -60 198.3 87
MWRC115 5024.5 9952.3 265.9 -60 198.3 93
MWRC116 5043.9 9950.1 264.4 -70 198.3 87
MWRC117 5064.8 9949.4 267.3 -70 198.3 63
MWRC118 5049.2 9899.2 263.6 -70 198.3 75
MWRC119 5068.6 9898.8 264.4 -70 198.3 99
MWRC120 5056.6 9848.9 275.3 -70 198.3 87
MWRC121 5080.1 9500.0 288.4 -70 198.3 171
MWRC122 5020.6 9298.7 286.3 -70 198.3 105
MWRC123 5055.5 9300.1 286.7 -70 198.3 135
MWRC124 4917.9 8999.9 253.8 -60 198.3 87
MWRC125 4933.8 9104.0 259.2 -60 198.3 81
MWRC126 4959.4 9199.8 253.6 -60 203.0 63
8
MWRC127 5024.9 9999.9 266.6 -70 198.3 111
MWRC128 5012.4 10099.4 260.8 -70 198.3 105
MWRC129 4975.8 10200.1 267.2 -70 198.3 99
MWRC130 5084.0 9451.7 283.2 -70 198.0 183
MWRC131 5086.9 9400.5 285.4 -70 198.3 183
MWRC132 5033.2 9199.8 290.4 -70 198.3 141
MWRC133 4984.4 9099.0 285.1 -70 198.3 135
END