DAMPIER GOLD LIMITED (ASX:DAU) ABN 43 141 703 399 29 Brookside Place, Lota, Queensland 4179 Phone/Fax: (07) 3901 0751 Email: [email protected]dampiergold.com ASX RELEASE 19 December 2019 INITIAL RESULTS FROM DAMPIER’S TECHNICAL DUE DILIGENCE ON CREDO AND ZULEIKA JV AREAS Highlights: • Dampier Gold Limited (ASX: DAU) (Dampier) on the 4 th October 2019, entered into binding Joint Venture Terms Sheets with Torian Resources Limited (ASX: TNR) (Torian) on the Zuleika Gold Project (Zuleika Project) and the Credo Well Gold Project (Credo Well Project). • Pre-conditions of the agreements required Dampier to obtain shareholder approval and complete a detailed due diligence on or before the 6 th January 2020 covering the status of the mining and exploration licenses and the Torian technical data base. • Shareholder approval for the transactions was obtained on 19 th December 2019. • Current status is that the due diligence of the extensive Torian and historical data packages is well advanced and the drilling QAQC is confirmed and results presented in this announcement are JORC compliant. • As a result of the work completed by Dampier, the Company is now in a position to make this first ASX release of its analysis and interpretation of historical results. • Despite a large number of drill-holes having been drilled into the areas, there remains underexplored targets which are worthy of ongoing exploration. • Several high-grade intercepts and promising mineralised systems have been identified. • The Credo Well prospect includes several significant structural and stratigraphic targets for both supergene and primary mineralisation. • The Zuleika Project is an extensive area covering several strong structural and stratigraphic targets that have confirmed high grade intercepts from previous drilling. Dampier Directors are pleased to present this first update of the Company’s technical due diligence on the Zuleika and Credo Well Projects. Dampier’s due diligence has revealed that in general, Torian and historical drilling has not penetrated the highly weathered zone or transported cover and high-grade intersections have not been adequately followed up with additional drilling. The due diligence shows that there are a number of intersections presented in this report, in the weathered (supergene) and primary zones which require follow-up exploration (see Appendix A JORC Table, Sampling Techniques and Appendix B, Assay Data). Dampier is working towards completing its technical due diligence by 6 th February 2020 and in this period will also plan future drilling programs to follow-up on priority intersections and develop exploration strategies on the tier 2 and tier 3 targets. Currently Dampier has identified 11 targets on the Credo tenements and 26 targets on the Zuleika tenements.
Highlights: • Dampier Gold Limited (ASX: DAU) (Dampier) on the 4th October 2019, entered into binding
Joint Venture Terms Sheets with Torian Resources Limited (ASX: TNR) (Torian) on the Zuleika Gold Project (Zuleika Project) and the Credo Well Gold Project (Credo Well Project).
• Pre-conditions of the agreements required Dampier to obtain shareholder approval and complete a detailed due diligence on or before the 6th January 2020 covering the status of the mining and exploration licenses and the Torian technical data base.
• Shareholder approval for the transactions was obtained on 19th December 2019. • Current status is that the due diligence of the extensive Torian and historical data packages
is well advanced and the drilling QAQC is confirmed and results presented in this announcement are JORC compliant.
• As a result of the work completed by Dampier, the Company is now in a position to make this first ASX release of its analysis and interpretation of historical results.
• Despite a large number of drill-holes having been drilled into the areas, there remains underexplored targets which are worthy of ongoing exploration.
• Several high-grade intercepts and promising mineralised systems have been identified. • The Credo Well prospect includes several significant structural and stratigraphic targets for
both supergene and primary mineralisation. • The Zuleika Project is an extensive area covering several strong structural and stratigraphic
targets that have confirmed high grade intercepts from previous drilling.
Dampier Directors are pleased to present this first update of the Company’s technical due diligence on the Zuleika and Credo Well Projects. Dampier’s due diligence has revealed that in general, Torian and historical drilling has not penetrated the highly weathered zone or transported cover and high-grade intersections have not been adequately followed up with additional drilling. The due diligence shows that there are a number of intersections presented in this report, in the weathered (supergene) and primary zones which require follow-up exploration (see Appendix A JORC Table, Sampling Techniques and Appendix B, Assay Data).
This report presents Dampier’s analysis of the data base, current technical results andconclusionsoftheduediligenceandpresentstheJORCcompliantcriteriainAppendixAandsupportingcrossreferencedassaydatainAppendixB.Figure1:Jointventureoverview:
Targets9and10havereturnedsomeveryhigh-gradegoldofupto74g/tfromwithinaquartzgabbro unit andmuch of the gold is in the supergene zone (Refer: CTRB0096, 47 to 48m,AppendixA,Page16).Adeeperholeinthevicinityhadbroadanomalousgoldintheprimaryzone.Theseprospectshavepotential fora supergene resourceaswell as thepotential tohaveasignificantresourceintheprimaryzone.Figure4:Target9CrossSection
TheZuleikaProjectcoversanareacontaining50kmstrike lengthofprospectivestratigraphyadjacenttoandcontainingsectionsofthehighlyproductiveZuleikaShearandthesignificantlyless explored Carnage Shear. There are several more advanced prospects as well as someunderexploredstructuralzonesalongbothshears.Inthenorthernpartoftheprojectthereareatleast3prioritytargetsforimmediatefollowup.They include theParadigmEast andSouthprospectswhere significant interceptshavebeenverifiedbyDampier’sduediligenceandtheBrownsDamprospectwherebedrockdrillinghasreturnedhighgoldandsignificantzonesofgreenstonealongtheZuleikaShear.Figure8:Northernportionofprojectareaprospects(Refer:AppendixB,Pages13,15,16)
IntheCentralArea,bedrockdrillingintheareahasnotalwayspenetratedbelowtheclayzoneand part of the due diligence effort has been to identify these poorly tested zones in theintrusivesandvolcaniclasticsalongtheCarnageShear.Thereisalsoawidelateriteanomalytothesouthwhichhasnotbeentestedbydeeperdrilling.TheSouthernportionof theZuleikaShearhasalso identifiedpotential targets for followup,includingpreviouslowerlevelgoldanomaliesandinterpretedkeystructuralzoneswhichhavepreviouslybeensparselytested.Figure11:SouthernZuleikaProjectarea
Page | 8
dampiergold.com
Figure12DampierTargets,ZuleikaandCredoJointAreas
Malcolm Carson
CHAIRMAN
Competent Persons Statement – Mr Malcolm Carson Mr Malcolm Carson has reviewed and presented information in this report from information and exploration results compiled by consultants engaged by the Company and presented to Dampier Gold Limited. Malcolm Carson has sufficient experience that is relevant to the style of mineralisation, the types of deposits under consideration and to the activity that he is undertaking and qualifies as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results ("JORC Code"). Mr Carson is a Member of the Australian Institute of Mining and Metallurgy (AusIMM) and Australian Institute of Geoscientists (AIG) and is a Director of Dampier Gold Limited and Allegiance Coal Limited. Mr Carson consents to the inclusion in the report the matters based on the information in which it appears.
Competent Persons Statement – Mr David Jenkins The information in this report that relates to exploration results has been compiled by Mr David Jenkins, a full time employee of Terra Search Pty Ltd, geological consultants employed by Dampier Gold Ltd. Mr Jenkins is a Member of the Australian Institute of Geoscientists and has sufficient experience in the style of mineralisation and type of deposit under consideration and the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results (“JORC Code”). Mr Jenkins consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
Zuleika Shear (26 targets)
• 50km contiguous acreage• major crustal conduit for gold fluids• hosts million-ounce deposits• high grade open pit and underground
potential• Dampier’s tenements underexplored along
strike and at depth
Carnage Shear (8 targets)
• 20km contiguous strike in tenements• largely underexplored, splay off Zuleika• major target and mirror image of Zuleika
Credo Well (11 targets)
• numerous shallow supergene and primary drill targets from Torian and historical drilling
• drilling generally shallow and not adequately followed up
• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
• Results reported are from previous exploration completed by Torian Resources and historical explorers including Pan Continental Resources, Homestake, Barrick Exploration, Norton Goldfields,
Drilling techniques
• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
• A variety of techniques have been used, from Bedrock RAB and Aircore to Reverse circulation and NQ diamond Drilling. Standard industry techniques have been used where documented. The drilling was undertaken in a period where face sampling hammer was standard for RC drilling.
Drill sample recovery
• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
• Drill recovery has not been recorded on historical work.
Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.
• Geological logs have been examined for key prospects where available. Geological logging of regolith has occurred in most drillholes allowing interpretation of primary vs Supergene zones.
Page | 11
dampiergold.com
Criteria JORC Code explanation Commentary
Sub-sampling techniques and sample preparation
• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise samples representivity
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.
• Standard industry practices have been undertaken but QA/QC data is not present in the historical data. It is considered that aapropriate sampling and analytical methods have been used by all explorers. Some standards and blanks have been inserted into the Torian drill sampling. .
Quality of assay data and laboratory tests
• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
• Gold assays are a combination of Aqua regia and Fire Assay. Detection limits and techniques are appropriate for included results.
Verification of sampling and assaying
• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes. • Documentation of primary data, data entry
procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.
• Intercepts have been calculated generally using a 1g/t cut off and internal waste of up to 2m thickness with total intercepts greater than 1g/t.
Location of data points
• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used. • Quality and adequacy of topographic control.
• Location of a majority of holes has been using handheld GPS, or local grids that have been converted to MGA coordinates
Data spacing and distribution
• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient
to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Variable across the project as shown on diagrams.
Orientation of data in relation to geological structure
• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is
• Intercepts given are downhole widths with the true widths not determined.
Page | 12
dampiergold.com
Criteria JORC Code explanation Commentary
considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample security
• The measures taken to ensure sample security. • Not applicable to historical data review
Audits or reviews
• The results of any audits or reviews of sampling techniques and data.
• Review of data in key areas has been undertaken with ongoing QA/QC on the remainder of the data within the project areas being ongoing.
• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
• Located in the Norseman - Wiluna Greenstone Belt ~35km northwest of Kalgoorlie in the Eastern Goldfields mining district in WA
• All granted tenements held and maintained by Torian Resources Limited and are in good standing.
• Dampier Mining Ltd have the opportunity to earn up to 50% in the Credo Well Project Tenements and up to 75% in the Zuleika Project Tenements through expenditure over 4 years of $A2M and $A4M respectively
Exploration done by other parties.
• Acknowledgment and appraisal of exploration by other parties.
• Extensive previous work by Pan Continental Resources, Homestake, Barrack Exploration, Norton Goldfields
• Data compiled from: WAMEX reports listed following this table1
Geology • Deposit type, geological setting and style of mineralisation.
• Gold mineralisation at Credo and Zuleika projects is orogenic, hosted within sheared and faulted Volcanics, Sediments, felsic,
Page | 13
dampiergold.com
Criteria JORC Code explanation Commentary
mafic and ultramafic rocks. Mineralisation is hosted in shear zones and controlled by regional structures
Drill hole Information
• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
§ easting and northing of the drill hole collar
§ elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole
§ down hole length and interception depth
§ hole length. • If the exclusion of this information is justified on
the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
• Location of Drillholes based on historical reports and data, originally located on GPS.
• Northing and easting data generally within 10m accuracy
• RL data +/-20m • Down hole length =+- 0.2 m
Data aggregation methods
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated.
• Intercepts have been calculated generally using a 1g/t cut off and internal waste of up to 2m thickness with total intercepts greater than 1g/t.
• No upper cut off has been applied to intersections.
Relationship between mineralisation widths and intercept lengths
• These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
• Orientation of mineralised zones are still to be ascertained
Page | 14
dampiergold.com
Criteria JORC Code explanation Commentary
Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
• The data has been presented using appropriate scales and using standard aggregating techniques for the display of regional data. Geological and mineralisation interpretations are based on current knowledge and will change with further exploration.
Balanced reporting
• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
• All results have previously been reported by Torian – see TNR:ASX Announcements dated: 10/7/2018, 03/05/2018, 25/07/2017, 07/03/2017, 04/02/2017, 02/12/2015.
Other substantive exploration data
• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
• Geological interpretations are taken from published maps, historical and ongoing exploration. Many of the prospects are at an early exploration stage and further work will enhance the understanding of the area.
Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
• Further work currently underway is a full project review identifying and ranking targets
• Drill testing of these targets is planned as soon as practical following the finalisation of the JV.
