Drilling Proceeding at the Cyclops Target on the Coober Pedy Project in South Australia • The Cyclops Prospect contains an Iron Oxide Copper Gold (IOCG) target, which exhibits gravity and magnetic geophysical anomalies similar to the world-class Prominent Hill copper-gold mine; • Modelling of the gravity and magnetic data suggests the target at Cyclops is at least 250m in vertical depth extent and potentially over 1500m along strike; • Drilling at Cyclops to test the causative sources of the geophysical anomalies is ongoing and is currently at a depth of 182.6m, in basement rocks. The overburden/basement interface was intersected at 177.8m down hole depth; • It is estimated that the current hole will intersect the causative source of the gravity anomaly at a depth of 300-350m down hole and the causative source of the magnetic anomaly at 400-450m down hole; • Due to the modelled significant down-dip extent (250m) of the sources of both geophysical anomalies it is anticipated that the current drill hole will extend to a depth of 700-750m; • This first drill program will include at least 1200m of drilling to test the depth and lateral extent of the Cyclops Prospect; Highlights 3 June 2015 DIRECTORS David Deloub Chairman Jeremy Read Managing Director Paul Niardone Non-Executive Director Adam Davey Non-Executive Director Stephen Kelly Company Secretary SHARE INFORMATION ASX Code: MNQ Issued Capital: 130,125,008 Fully Paid Shares 61,589,766 Unlisted Options CONTACT INFORMATION Registered Office: 96 Stephens Road South Brisbane, QLD 4101 T: +61 7 3844 0372 F: +61 7 3844 0154 www.minquest.com.au MinQuest Limited ACN: 146 035 127 For personal use only
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Drilling Proceeding at the Cyclops Target on the Coober Pedy Project in South Australia
• The Cyclops Prospect contains an Iron Oxide
Copper Gold (IOCG) target, which exhibits gravity and magnetic geophysical anomalies similar to the world-class Prominent Hill copper-gold mine;
• Modelling of the gravity and magnetic data
suggests the target at Cyclops is at least 250m in vertical depth extent and potentially over 1500m along strike;
• Drilling at Cyclops to test the causative sources of
the geophysical anomalies is ongoing and is currently at a depth of 182.6m, in basement rocks. The overburden/basement interface was intersected at 177.8m down hole depth;
• It is estimated that the current hole will intersect the
causative source of the gravity anomaly at a depth of 300-350m down hole and the causative source of the magnetic anomaly at 400-450m down hole;
• Due to the modelled significant down-dip extent
(250m) of the sources of both geophysical anomalies it is anticipated that the current drill hole will extend to a depth of 700-750m;
• This first drill program will include at least 1200m of
drilling to test the depth and lateral extent of the Cyclops Prospect;
Highlights 3 June 2015
DIRECTORS David Deloub Chairman Jeremy Read Managing Director Paul Niardone Non-Executive Director Adam Davey Non-Executive Director Stephen Kelly Company Secretary
MinQuest Limited (“MinQuest” or “The Company”) (ASX:MNQ) is pleased to announce that drilling is proceeding at the Cyclops Prospect on the Coober Pedy Project, South Australia. (Figure 1). The Cyclops Prospect contains magnetic and gravity geophysical anomalies which are very similar in size and amplitude to the magnetic and gravity anomalies which occur at the world-class copper-gold mine at Prominent Hill, South Australia. 1,200m of drilling will be completed to test the geophysical and geochemical anomalies at the Cyclops Prospect.
MinQuest’s Managing Director Mr Jeremy Read said, “The Cyclops drilling is proceeding well. We are now approaching the first target depth and are very keen to determine the source of the geophysical anomalies at Cyclops.”
“The similarities in the geophysical expressions of Cyclops and the Prominent Hill copper-gold mine are very striking, so Cyclops is a quality target deserving of comprehensive drill testing”, said Mr Read.
MinQuest will continue to update the market with regular announcements to the ASX during the ongoing drill program.
CYCLOPS PROSPECT, COOBER PEDY PROJECT (SOUTH AUSTRALIA)
The Coober Pedy Project is currently 100% owned by Teck Australia Pty Ltd (Teck) and comprises three exploration licenses, located at the north-western end of the highly endowed Proterozoic Olympic Dam IOCG Province on the Gawler Craton, South Australia (Figure 1). Under the terms of a joint venture agreement with Teck, MinQuest has the ability to earn up to a 100% interest in the Coober Pedy Project, subject to a 2% Net Smelter Return Royalty to be retained by Teck.
Previous work by Teck defined strong, discrete magnetic and gravity anomalies, at the Cyclops Prospect, to the south-west of Coober Pedy. Forward modelling of the gravity and magnetic data indicated the potential source is a magnetite-rich body of approximately 800m x 250m, starting at a depth of approximately 100-150m. Soil geochemical surveys detected a gold geochemical anomaly, coincident with the geophysical feature, on one of two lines of soil samples collected at Cyclops.
The main target at Cyclops is the source of the gravity anomaly, as it may be a Prominent Hill style hematite breccia complex. However, in IOCG’s magnetite can play an important role in the deposition of copper mineralisation. Consequently the source of the magnetic anomaly will also be properly drill tested.
MinQuest is currently drilling the deeper of two holes planned to drill test the causative sources of the gravity and magnetic anomalies at Cyclops (Figure 2). The drill is currently in basement rocks and at a down hole depth of 182.6m and drilling
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ahead. The overburden/basement interface was intersected at 177.8m, a vertical depth of 160m. Modelling of geophysical data suggests that the causative source of the gravity anomaly will initially be intersected between 300-350m down hole and will continue until 400-450m depth down hole. It is anticipated that the causative source of the magnetic anomaly will be intersected between 400-450m down hole and will continue until 500-550m down hole. Overall, the sources of the geophysical anomalies are predicted to occur in a package of rocks up to 250m thick between 300-550m down hole.
Once the geological results from the currently drilled hole are known, MinQuest will determine whether to drill a shallower hole, above the current drill hole, or move along strike 400m and drill another section of the Cyclops prospect.
MinQuest will provide a further update to the ASX once the geological context of the rocks intersected in the current hole has been determined.
Competent Person Statement - Mineral Resource
The information in this report that relates to exploration results is based upon information reviewed by Mr Jeremy Read BSc (Hons) who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Read is a full time employee of MinQuest Limited and 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 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Read consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Read is the Managing Director of MinQuest and currently owns 2,525,253 Fully Paid Ordinary Shares and has the entitlement to a further 2,525,253 deferred consideration shares subject to relevant milestone events being achieved.
Forward Looking Statements
This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to commodity prices and foreign exchange rate movements; estimates of future production and sales; estimates of future cash flows, the sensitivity of cash flows to commodity prices and foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of resources and statements regarding future exploration results; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to commodity price volatility, currency fluctuations, increased production costs and variances in resource or reserve rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
