Metal Bank : Kingsley Deposit Maiden Mineral Resource Estimate
MBK.AX
ASX ANNOUNCEMENT 18 January 2022
ASX: MBK
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Kingsley deposit Maiden Mineral Resource Estimate and
updated Exploration Target
Highlights
Metal Bank Limited (ASX: MBK) ('Metal Bank', 'MBK' or the 'Company') is pleased to report a maiden JORC 2012-compliant Mineral Resource Estimate for the Kingsley deposit of 669Kt at 1.42g/t Au for 30,500oz Au (0.5g/t Au cut-off). This initial JORC 2012-compliant Inferred Resource is based on drilling completed to date1, continuity of mineralisation demonstrated on multiple structures over 1km of strike to a maximum depth below surface of ~75m and positive metallurgical testwork2, in conjunction with updated economic parameters.
In addition, previous drilling and the Mineral Resource Estimation work provides the basis for an Exploration Target at Kingsley for an additional 290 - 400Kt at 1.8 - 2.0 g/t Au for 16,800 - 25,700oz Au. It should be noted that the potential quantity and grade of the Exploration Target is conceptual in nature and there is insufficient drilling information to estimate a Mineral Resource over the Exploration Target area and it is uncertain if further exploration will result in the estimation of a Mineral Resource over this area.
Kingsley represents just one of a number of advanced gold targets in MBK's recently acquired Livingstone Au Project in the Bryah Basin near Meekatharra in Western Australia3.
P a g e | 1 Metal Bank Limited ABN 51 127 297 170 Suite 506 Level 5 50 Clarence Street Sydney NSW 2000
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Commenting on the Maiden Resource, Metal Bank's Chair, Inés Scotland said:
"We are very excited to be reporting a Maiden Mineral Resource Estimation at Kingsley providing a baseline of JORC-compliant gold resources for us to build on in 2022. The initial resource is shallow, easily treatable and contains a number of high-grade intersections. It also only forms a small part of the existing mineralisation and we have developed a work program for this year aimed at substantially increasing JORC resources as well as testing the multiple additional targets across the project. With over 90,000oz of gold across our projects and a significant endowment of copper and cobalt we are expecting 2022 to be a year of resource growth combined with exploration success.
Kingsley Mineral Resource Estimation
Gold mineralisation at Kingsley was discovered by Kingston Resources (ASX: KSN) via aircore drill testing of a 2km long soil Au anomaly in 2018. Follow-up work and a further 50-hole (4,390m) RC and diamond drilling program in 2020 targeted the Western Zone, defining areas of shallow Au mineralisation and mineralisation continuity over ~750m strike length4 (Figure 1). Drilling in this Western Zone5 combined with positive metallurgical testwork6 provided the basis for the maiden Mineral Resource Estimation recently completed by Cube Consulting of Perth to approximately 75m below surface (Table 1). Mineralisation remains open at depth and along strike of the maiden Resource, with the Eastern Zone, in particular, subject to limited drilling and not included in the Mineral Resource Estimate.
Table 1: Kingsley Maiden Mineral Resource Estimate (JORC 2012-compliant)
Au cut-off
Classification
Auoz
kTonnes
Au g/t
grade
Inferred
30,500
669
1.42
0.5 g/t
Total
30,500
669
1.42
0.5 g/t
The Kingsley Mineral Resource Estimate (Figures 1-4) was completed using data from a total of 76 drill holes (71 RC and 5 diamond) with nominal drill spacing of approximately 40m x 40m considered appropriate for the style of mineralisation and Resource classification. Aircore drilling was used as an additional guide to the interpretation. Modelling was based on drilling intercepts, with 1m minimum sample widths and 0.5 g/t Au cut-off grade demonstrating 750m of system strike continuity and mineralisation contained within a number of steeply dipping and generally planar mineralised quartz veins generally trending 110° within a mafic to ultramafic schist or 'talcose' schist. High grade intervals are typically associated with several 'shoots' and/or structural intersections and flexures, and top caps were applied (maximum 13 g/t Au) to minimise 'nugget' influence.
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Figure 1: Kingsley maiden Inferred Resource block model and resource drilling intersections.
The Mineral Resource was estimated using Ordinary Kriging ('OK') via Datamine software for each of the veins/shoots in 20mE x 10mN x 5mRL parent blocks (half drill hole spacing) and 2.5mE x 1.25mN x 1.25mRL sub-blocks for accuracy. Au grade estimates were validated against composited drill hole data via extensive visual checking of models, global (per shoot) comparisons and statistical methods with satisfactory results. Variogram nugget/spherical models were consistent with shoot
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geometry. Bulk density measurements conducted on drill samples provided values of 1.60t/m3 (oxidised), 2.25 t/m3 (transitional) and 2.45 t/m3 (fresh rock), noting the majority of drilling and subsequent Resource is contained within oxidised to transitional zones.
Pit optimisation work for Reasonable Prospects for Eventual Economic Extraction ('RPEEE') justification was undertaken on a regularised version of the block model with block dimensions of 5mE x 5mN x 5mRL, with the lowest RL of the resulting pit shell (420m RL, approximately 75m maximum depth below surface) used to vertically constrain the Resource. The resultant Au grades and geometry of mineralisation is amenable to open cut mining, with metallurgical testwork undertaken in 2019 on ten RC drill samples returning excellent Au recoveries via simple cyanide-extractable processing of 94.9% (oxide), 95.6% (transitional) and 89.5% (fresh rock). Mineralisation styles observed show very low levels of deleterious elements. There are no known environmental issues, and a number of operational gold mines exist within 80 km of Kingsley in similar mineralisation and physical geographical settings that are capable of treating mineralisation.
Inferred Mineral Resources are reported under the JORC 2012 Code - refer to Section 3 in Table 1 (Appendix 1) for further details, with additional supporting information in Section 1-2 of JORC Table 1 and drill hole details in Table 1.
Figure 2: Kingsley long-section showing Inferred Resource block model and resource drilling with key results.
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Figure 3: Kingsley 566350E +/-25mcross-section showing resource block model and drilling intersections.
Kingsley Exploration Target
Gold mineralisation at Kingsley is present within a 2km long Au anomaly, with the maiden Mineral Resource Estimate specific to the Western Zone and only defined to shallow depths. While there is scope for further extension to the west, the Eastern Zone remains a compelling yet poorly-drilled target due to continuity of host geology, consistent strike of structural fabric supported by geophysics, and significant soil geochemistry anomalism. The limited drilling that does exist in the eastern zone displays some shallow gold anomalism of a similar tenor to that in the Western Zone and warrants immediate follow-up (Figure 4).
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Disclaimer
Metal Bank Limited published this content on 17 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2022 21:34:09 UTC.