Sconi Scandium-Cobalt Project
Australian Mines entered a joint venture agreement with Metallica Minerals (ASX: MLM) on the Sconi Project in 2016.
The Sconi Project encompasses five deposits (two scandium-cobalt rich, and three nickel-cobalt).
The total scandium resource at Sconi is 12 million tonnes at 162 ppm scandium for 2,989 tonnes of scandium oxide.
The combined nickel and cobalt Mineral Resource for the Sconi Project is 89 million tonnes at 0.58% nickel + 0.06 % cobalt for 514,000 tonnes of contained nickel metal and 54,000 tonnes of contained cobalt metal.
A Pre-Feasibility Study (PFS) recently completed on the scandium ore body at Sconi confirmed it to be an economic and technically viable mining project capable of producing 50 tonnes of high purity scandium oxide (Sc203) per year over a 20-year mine life, and generating an average EBITDA of $59 million per annum.
A mining operation at Sconi has the potential to become the world’s largest source of this critical metal from a primary scandium deposit.
Flemington Scandium-Cobalt Project
Australian Mines entered an option agreement with Jervois Mining (ASX: JRV) in 2016 to acquire 100% of the Flemington Project.
In 2013, Jervois Mining drilled a reconnaissance air core program immediately west of Clean TeQ Holdings’ Syerston nickel-cobalt-scandium deposit, which intersected high grade scandium and cobalt mineralisation from surface.
Subsequent drilling campaigns delineated a Mineral Resource of 3.14 million tonnes at 434 ppm scandium, including 2.67 million tonnes at 435 ppm scandium in the Measured Resource category making the Flemington Project one of the highest-grade scandium deposits in the world.
The Flemington Project also offers considerable exploration upside for additional high-grade scandium deposits as well as complementary mineralisation including cobalt and nickel. Previous drilling at the project, for example, returned relatively thick intersections of cobalt mineralisation, including 14 metres @ 0.21% Cobalt from 6 metres and 9 metres @ 0.21% Cobalt from 10 metres.
Marymia Gold Project
Australian Mines entered a joint venture agreement with Riedel Resources (ASX: RIE) on the Marymia Project in 2014.
Small gold workings were reported across the Marymia Project dating back to the 1930s. It was not until the 1980s when Great Central Mines discovered what is now the Plutonic Gold Mine that exploration across the Marymia region commenced to an appreciable level.
Shallow rotary air blast (RAB) and air core drilling was completed across the joint venture area in the mid-1990s – testing a low-order gold plus arsenic anomaly – successfully intersected a zone of supergene gold mineralisation within the weathered profile above a fractionated dolerite unit in the south of the project area.
Australian Mines drilled a single reverse circulation (RC) hole into the bedrock beneath this supergene gold layer in late 2015, which subsequently returned 10 metres @ 8.79 g/t gold from 130 metres downhole. This prospect, referred to as the Dixon Gold Prospect, is the focus of the joint venture’s exploration activities into 2017.
Arunta West Copper-Gold Project
Australian Mines entered a joint venture agreement with Jervois Mining (ASX: JRV) on the Arunta West Project in 2016.
It was the potential for large-scale iron-oxide copper-gold (IOCG) mineralisation that attracted BHP Billiton to the Arunta West region in the 1990s.
Following initial reconnaissance exploration across the region, BHP Billiton subsequently concentrated their activities on the North Dovers target (as is the intention of Australian Mines when it commences on-ground exploration of this project from the start of the 2017 field season).
BHP Billiton’s work revealed a coincident gravity-magnetic anomaly suggestive of an IOCG deposit and they subsequently reported a probable electromagnetic conductor associated with this buried gravity plus magnetic feature.
The base metal potential of the province was reaffirmed in October 2015 when Independence Group, in partnership with ABM Resources, announced the Bumblebee copper-gold-silver-lead-zinc-cobalt discovery immediately east of Australian Mines’ Arunta West project area.
Marriotts Nickel Project
Australian Mines exercised an option agreement to acquire the Marriotts Nickel Deposit from BHP Billiton in 2007.
The Marriotts orebody currently carries an Indicated and Inferred Mineral Resource of 0.83 million tonnes at 1.13% nickel for 9,400 tonnes of contained nickel and appears suitable for shallow open-pit mining.
Drilling has demonstrated a large amount of upside at Marriotts, with interpreted extensions of the existing Mineral Resource, particularly up-dip of the existing drilling, while the ore body also remains open at depth.
Although Australian Mines’ exploration to date has focused on delineating the mineralisation within 100 metres of surface, several deeper holes were drilled with one intersecting 20 metres at 2.46% nickel from 129 metres – indicating the grade of the ore body may in fact increase at depth and support future extensions.