Redstone Resources - Quarterly Report
Redstone Resources (ASX:RDS) had a busy June quarter with the release of the initial JORC-2012 Resource for the Tollu Copper Project in WA. The Company has defined a number of analogue targets for follow up. The Company has planned a 53 hole 8,000m RC program to follow up on priority prospects.
Redstone Resources Limited (ASX Code: RDS) (“Redstone” or “the Company”) presents its quarterly report for the period ending 30 June 2016 (“the Quarter”).
Redstone’s primary focus is the advancement of the Tollu Project (“Tollu” or the “Project”), located in the southeast portion of the West Musgrave region of Western Australia. This Project hosts a giant swarm of hydrothermal copper rich veins in a mineralised system covering an area at least 5km2. Copper mineralisation is exposed at the surface and forms part of a dilation system between two major shears.
Redstone expects the Project’s mineralised area and the volume of hydrothermal mineralisation to increase significantly with further drilling.
- Initial JORC 2012 resource of 3.8 million tonnes at 1% Cu, containing 38,000 tonnes of copper at the Tollu Project defined
- The Tollu JORC resource includes 8,000 tonnes approx. of copper oxide, which provides scope for the evaluation of a low cost expedited development path as part of the broader development of higher grade sulphide prospects.
- Review and significant upgrade of the Conceptual Exploration Target for the Tollu Project resulting in a significant increase in size to 31 to 47 million tonnes of mineralisation at a conceptual grade range of 0.8 to 1.3% Cu, containing 259,000 to 626,000 tonnes of copper. The potential quantity and grade of this target is conceptual in nature. It is important to note that there has been insufficient exploration to estimate a Mineral Resource for the Target and it is uncertain if further exploration will result in the estimation of a Mineral Resource for the Target.
- Significant upgrade of the Forio Prospect at the Tollu Project following the success of the 2015 drilling program, which identified mineralised strike over 250m open in all directions, despite displaying limited surface expression and not yet being effectively drilled out below 50m. Results at Forio displayed the widest and strongest copper mineralisation discovered at this depth to date at the Tollu Project.
- Identification of seven additional new Forio analogues and three existing Forio analogue prospects
- Prospectivity of tenement further increased
- Planning underway for follow‐up drilling at Forio and at four of the identified Forio analogues, which have been elevated in priority for further testing, with a proposed RC drilling program comprising 53 holes for a total of 8,000m.
- WA Government awards EIS co‐funded drilling grant of up to $200,000 for the Tollu Project, planned to be used for a single deep diamond drill hole of approximately 1,000m at the Chatsworth Prospect.