ASX ANNOUNCEMENT
29 July 2022
QUARTERLY ACTIVITIES REPORT
FOR THE PERIOD ENDING 30 JUNE 2022
Aeon Metals Limited (ASX:AML) (Aeon or the Company) is pleased to present its activities report for the quarter ending 30 June 2022.
Highlights:
- Exploration drilling commenced at Walford Creek
- CEI grant funded airborne electromagnetic survey (AEM) scheduled for next quarter
- CEI grant funded gravity survey at Sugarbag prospect scheduled for next quarter
Commenting on the activities for the quarter, Aeon Managing Director, Dr Fred Hess, said:
"Primary activities for the quarter were preparation for, and commencement of, exploration drilling at Walford Creek. In addition, the CEI funded geophysical surveys were planned with the expectation that these will be undertaken in the current quarter.
"By mid-July, some 4,000 metres of drilling had been completed, mainly in the Le Mans zone. The extended turnaround times for analytical results in the current environment has delayed any meaningful reporting of drilling outcomes. The targeted PY1 and PY3 lodes were however intersected where expected.
"Drilling has now moved to the western end of Amy zone where the 900 metre gap between two of the highest grade previous intersections is set to be tested. Once the geophysical survey results are analysed, it is expected that drilling will then move to focus on the regional target areas."
2022 drill program at Walford Creek
Large-Scale 2022 Exploration Program
An aggressive drilling exploration strategy commenced in the quarter, with two multipurpose rigs operating. Rig one commenced on 21 May, and rig two shortly thereafter. Both rigs have now transitioned to double shift, maximising productivity. At the end of the quarter, approximately 3,000 metres of drilling had been undertaken with five completed drill holes and five partially completed pre- collars or active holes.
The twin objectives of the drilling program are to establish the potential for continuation of mineralisation along the 10km Amy-to-Vardy trend, and to commence exploration of satellite mineralisation within the Walford Creek Project area.
An Airborne Electromagnetic (AEM) survey, which is co-funded by the Queensland Government Collaborative Exploration Initiative (CEI) scheme, has been confirmed for late July. This will allow results to be received in time to allow integration of this data into the final drill targeting of satellite targets identified following the 2021 magnetic and gravity survey. Drilling of these targets is set to commence in September 2022 and will include any additional targets generated from the AEM survey.
AEM survey being mobilised to Walford Creek in July 2022
Initially both drill rigs have been assigned to expanding the Mineral Resources west of the Marley/Vardy deposits into the Le Mans zone, and beyond into the Amy zone. The existing Mineral Resource estimate for Vardy and Marley only includes mineralisation as far west as 210675 metres east, with the initial 5 holes completed to the end of this quarter located within 750m of this boundary.
At the completion of the 2021 infill drilling program at Vardy and Marley, three exploratory holes were drilled stepping out some 150m to the west of Marley into the Le Mans zone. These step-out holes demonstrated the previously unrecognised presence of continued mineralisation within the PY1 unit, with a 60m periphery zone intersected over 50m away from the Fish River Fault (FRF). The Walford Creek geological model, based on the extensive drilling completed to date, anticipates a continuation of the high-grade mineralisation within the PY1 adjacent to the fault along the entire 2.1km strike of this untested zone.
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Of the five holes completed to date in this campaign, drill holes WFDH532 and WFDH533 were both drilled on section 210180, targeting PY3 and PY1 mineralisation respectively (marked in red on first section below). Drill holes WFDH531 and WFDH530 were both drilled on section 210330, targeting PY3 and PY1 mineralisation respectively (marked in red on second section below). Drill hole WFDH534 was completed along strike 250m to the west of section 210180, testing for continuation of mineralisation within the PY3.
Assay results for the 2022 program are expected to commence being received in early August 2022.
In addition to the CEI grant for the AEM survey at Walford Creek, Aeon were successful in securing an additional CEI grant of $96,800 of funding to conduct a ground gravity survey at the North Sugarbag EPM within the Mount Isa West project area. The proposed program is for an extensive ground gravity survey to be undertaken over the regional gravitational highs and along major structures at Sugarbag North. It is expected that gravity will facilitate the identification of potential dense pyritic shales within the Gunpowder formation which might be prospective for base metal mineralisation. In addition, it will contribute to the development of an improved understanding of the basement sequences west of Mount Isa in the Western fold belt. Aeon are pleased to advise that this program has now been scheduled to commence in August 2022.
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Corporate
On 9 May 2022, Aeon announced it had undertaken a placement to raise approximately A$7.2 million (before costs). The issue price of the new shares was 4.0c plus a free, one-for-two unlisted loyalty option (strike price 8.0c and expiring 31 December 2023). Major shareholder, OCP Asia, provided commitments to participate in the placement, as did all Aeon directors.
In conjunction with the placement, a one-for-three entitlement offer was launched on the same price terms. The entitlement offer raised approximately A$1.0 million (before costs).
At a General Meeting held on 19 July 2022, Aeon shareholders approved a number of resolutions ratifying participation and terms associated with the placement and entitlement offer. A revised company constitution was approved.
As noted in the March 2022 quarter activities report, the Walford Creek Pre-Feasibility Study (PFS) has been paused to allow an increased focus on exploration in the interim.
At quarter end, Aeon held A$2.1 million cash and had drawn debt of A$28.4 million.
ASX Additional Information
ASX listing rule 5.3.1: Exploration and evaluation expenditure during the quarter was A$2.5 million. Details of exploration activity during the June 2022 quarter are set out in this report and are mostly associated with costs relating to the Walford Creek Project.
ASX listing rule 5.3.2: There were no substantive mining production or development activities during the quarter.
ASX listing rule 5.3.5: Appendix 5B, Section 6.1 - description of payments: During the June 2022 quarter, Aeon paid directors fees of A$189,000.
Appendix 5B
The Company's Appendix 5B cash report has also been released today.
This ASX release has been authorised by the Aeon Board:
For more information, please contact:
Investors | Media |
Dr. Fred Hess | Michael Vaughan |
Managing Director & CEO | Fivemark Partners |
info@aeonmetals.com.au | +61 422 602 720 |
ABOUT AEON METALS
Aeon Metals Limited (Aeon) is an Australian based mineral exploration and development company listed on the Australian Securities Exchange (ASX: AML). Aeon holds a 100% ownership interest in the Walford Creek Copper-Cobalt Project (Walford Creek Project) located in north-west Queensland, approximately 340km to the north north-west of Mount Isa.
Aeon's vision: making a difference - creating sustainable value by delivering key metals driving the low carbon future.
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TENEMENT HOLDER | TENEMENT I.D. | LOCATION | INTEREST HELD |
Aeon Monto Exploration Pty Ltd | EPM 14628 | Northwest of Monto, Qld | 100% |
Aeon Monto Exploration Pty Ltd | EPM 15921 | Northwest of Monto, Qld | 100% |
Aeon Monto Exploration Pty Ltd | EPM 17001 | Northwest of Monto, Qld | 100% |
Aeon Monto Exploration Pty Ltd | EPM 17002 | Northwest of Monto, Qld | 100% |
Aeon Monto Exploration Pty Ltd | EPM 17060 | West of Monto, Qld | 100% |
Aeon Monto Exploration Pty Ltd | EPM 27604 | Monto | 100% |
Aussie NQ Resources Pty Ltd | EPM 18359 | South of Georgetown, Qld | 100% |
SLW Queensland Pty Ltd | EPM 19029 | West of Monto, Qld | 60% |
Aeon Walford Creek Limited | EPM 11898 | Mount Isa North | 80% |
Aeon Walford Creek Limited | EPM 13412 | Mount Isa South | 80% |
Aeon Walford Creek Limited | EPM 13413 | Mount Isa South | 80% |
Aeon Walford Creek Limited | EPM 13682 | Mount Isa South | 80% |
Aeon Walford Creek Limited | EPM 14220 | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 14233 | Mount Isa South | 72% |
Aeon Walford Creek Limited | EPM 14694 | Mount Isa North | 80% |
Aeon Walford Creek Limited | EPM 14712 | Constance Range | 80% |
Aeon Walford Creek Limited | EPM 14821 | Mount Isa South | 80% |
Aeon Walford Creek Limited | EPM 14854 | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 14935 | Constance Range | 80% |
Aeon Walford Creek Limited | EPM 15156 | Mount Isa South | 80% |
Aeon Walford Creek Limited | EPM 15911 | Mount Isa South | 100% |
Aeon Walford Creek Limited | EPM 18552 | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 18769 | Mount Isa West | 100% |
Aeon Walford Creek Limited | EPM 26906 | Walford Creek | 100% |
Aeon Walford Exploration Pty Ltd | EPM 26316 | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 27311 | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 27312 | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 27314 (Application) | Walford Creek | 100% |
Aeon Walford Creek Limited | EPM 27315 (Application) | Walford Creek | 100% |
Aeon Isa Exploration Pty Ltd | EPM 27435 | Mount Isa West | 100% |
Aeon Isa Exploration Pty Ltd | EPM 27436 | Mount Isa West | 100% |
Aeon Walford Creek Limited | EPM 27512 | Walford Creek | 100% |
Aeon Walford Exploration Pty Ltd | EPM 27535 | Constance Range | 100% |
Aeon Isa Exploration Pty Ltd | EPM 27743 | Mount Isa West | 100% |
Aeon Isa Exploration Pty Ltd | EPM 27744 | Mount Isa West | 100% |
Aeon Isa Exploration Pty Ltd | EPM 27745 | Mount Isa West | 100% |
Aeon Walford Creek Limited | EPM 28402 (Application) | Walford Creek | 100% |
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Disclaimer
Aeon Metals Limited published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 07:43:04 UTC.