Australian Mines flags potential resource expansion at Flemington

Australian Mines flags potential resource expansion at Flemington

Advanced battery materials developer Australian Mines (ASX: AUZ) has announced positive assay results from the first phase of its resource expansion drilling campaign at its 100%-owned Flemington Project in New South Wales. Early indications suggest the mineralised horizon continues to extend beyond the existing resource. Further assay results are expected to come in over the coming four to five weeks.


Advanced battery materials developer Australian Mines (ASX: AUZ) has announced positive assay results from the first phase of its resource expansion drilling campaign at its 100%-owned Flemington Project in New South Wales.

HIGHLIGHTS

·       High grade cobalt and scandium intersections returned from Flemington resource extension drilling

·       Intersections included:

·       12 metres at 1,732ppm (0.17%) cobalt from 10 metres deep

·       10 metres at 1,600ppm (0.16%) cobalt from 4 metres deep  

·       5 metres at 1,383ppm (0.13%) cobalt from 13 metres deep

·       4 metres at 1,283ppm (0.12%) cobalt from 7 metres deep

·       12 metres at 402ppm scandium from 9 metres deep

·       20 metres at 425ppm scandium from 8 metres deep

·       10 metres at 309ppm scandium from 12 metres deep  

·       10 metres at 267ppm scandium from 1 metre deep

·       Early indications suggest the mineralised horizon continues to extend beyond the existing Flemington Mineral Resource

·       Further assays from recently completed resource expansion drilling anticipated to become available throughout the coming month

The Flemington Project, located in central New South Wales, is Australian Mines’ second battery materials project after its flagship Sconi Nickel-Cobalt-Scandium Project in North Queensland, where the Company continues to advance project development following the release of a Bankable Feasibility Study in November 2018 and a subsequent optimised study reported earlier this month.

Over 3,300 metres of air core drilling was completed at Flemington over a 16-day period in May 2019. Based on a nominal 80 metre by 80 metre grid spacing, this first phase of the Company’s resource expansion drilling campaign was designed to test the interpreted western continuation of the Flemington mineralisation and to enable the Company’s independent mining consultants to update the project’s current Mineral Resource Estimate at a future date.

To date, the Company has received assay results from 26 holes of the total 197 holes that comprise the May 2019 drilling program. These initial results indicate that the mineralisation at Flemington may extend more than one kilometre beyond the boundary of the current Resource and, encouragingly, also appears to remain open to the west, and potentially to the north, of the current drilling.

Further assays results are anticipated to become available throughout the coming month. Given the highly encouraging early results (as summarised in this report), a follow-up large scale expansion drilling campaign is currently being planned for later in the calendar year to enable the Company to better determine the full extent of the mineralised envelope at Flemington and, in turn, maximise the Mineral Resource8 potential for the Project.

Australian Mines notes that the recent drill program returned some anomalous copper results, with grades approaching 0.5%9 . This will require further analysis by the Company’s geological team to understand its significance (if any), and the project’s potential to host copper mineralisation.

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