REDSTONE RESOURCES LIMITED Redstone Resources Limited (ASX Code: RDS) ("Redstone" or "the Company") presents its quarterly report for the period ending 31 December 2015 ("the Quarter").
Redstone's primary focus is the advancement of the Tollu 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.
KEY HIGHLIGHTS
- Successful completion of a fully subscribed non renounceable entitlement offer to raise $1.25 million (before costs), to fund drill programme
- RC drilling programme of 50 holes for a total 8,146 metres completed
- Logging confirms presence of significant copper mineralisation, including on numerous prospects previously undrilled
- Campaign included drilling to target near surface oxide mineralisation to demonstrate geological continuity
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Significant copper intercepts from the first batch of assay samples from the Chatsworth Prospect:
7m at 1.75% from 30m (TLC088)
9m at 1.07% Cu from 22m, including 5m @ 2.6% Cu and 3m @ 1.7% Cu (TLC090)
- Balance of drill programme assays expected to be analysed by February 2016
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Maiden (JORC) copper resource for the Tollu Project expected to be delivered in the March Quarter
TOLLU PROJECT
During the Quarter the Company undertook a reverse circulation ("RC") drilling programme (the Programme), with 50 holes drilled for a total of 8,146 metres completed, primarily on the Chatsworth, Eastern Reef and Main Reef Prospects.
The drilling consistently intersected quartz veining, with strong malachite mineralisation in the near surface holes, and quartz veins with stringer and disseminated sulphides (chalcopyrite/pyrrhotite/pyrite) in the deeper holes.
Aim of the Drilling ProgrammeThe Company identified a number of prospective targets for drilling at the Tollu Project, with the aim of the RC drilling programme being to target near surface hydrothermal copper (oxide and sulphide) mineralisation. The main activity concentrated on the known higher‐grade zones at the Chatsworth, Main Reef and Eastern Reef prospects within the Tollu Project. The primary purpose was to validate the Tollu mineralised system. The delivery of a maiden (JORC) copper resource is an expected outcome.
Figure 1 - Drill Hole Location Map
First Batch Assay Results - Chatsworth ProspectThe first batch of assay results from the Chatsworth Prospect disclosed the following significant copper intersects;
7m at 1.75% from 30m (TLC088)
9m at 1.07% Cu from 22m, including 5m @ 2.6% Cu and 3m @ 1.7% Cu (TLC090)
The Chatsworth Prospect is a single sub vertical hydrothermal body exposed at the surface. This prospect forms part of the dilation system between two north south trending shears. The Chatsworth Prospect has received the majority of the technical and drilling activity to date. The Chatsworth Prospect was the primary focus of the first batch of assays, the results of which are included in Table 1 below.
Hole | Prospect | Easting (m) | Northing (m) | RL (m) | Dip (degree) | Azim (degree) | Depth (m) | From (m) | Interval (m) | True Width (m) | Cu (%) |
TLC088 | Chatsworth | 438026 | 7108625 | 596 | ‐50 | 240 | 155 | 201 | 5 | 2.6 | 1.51 |
TLC090 | Chatsworth | 437996 | 7108654 | 595 | ‐60 | 302 | 96 | 90 | 4 | 2.8 | 0.92 |
The balance of the drill programme assays are expected to be analysed by February 2016, following which the delivery of a maiden JORC resource is expected in the March 2016 quarter.
CORPORATE
During the Quarter the Company successfully completed a fully subscribed pro rata non renounceable entitlement offer pursuant to the prospectus dated 4 November 2015 (the Offer), raising $1.25 million (before costs).
The Offer was made to eligible holders of shares in the capital of the Company on the basis of three (3) new fully paid ordinary shares (New Shares) for every four (4) existing shares held at an issue price of
$0.009 per New Share.
Shareholders also received two (2) free attaching options, exercisable at $0.03 on or before 31 July 2017, for every five (5) New Shares subscribed for and issued under the Offer.
The Company received maximum subscriptions under the Offer available to eligible shareholders. The success of the Offer was pleasing given the difficult market conditions prevailing.
The funds received under the Offer will contribute to funding the costs of the exploration and RC drilling programme undertaken during the Quarter and the ongoing evaluation of the Programme results.
The Company holds the following tenements at the end of the 31 December 2015 quarter.
Project | Tenement | Registered Holder Applicant | Registered Holder Interest | Consolidated Entity Interest | Grant Date (Application Date) | Expiry | Blocks | Area km2 |
Tollu | E 69/2450 | Redstone Resources Limited | 100% | 100% | 19/09/2008 | 18/09/2018 | 41 | 125.0 |
Blackstone Range* | E 69/2108 | River Gold Exploration Pty Ltd | 100% | 75% | 28/04/2006 | 27/04/2016 | 39 | 121.0 |
Blackstone Range* | E 69/2109 | River Gold Exploration Pty Ltd | 100% | 75% | 28/04/2006 | 27/04/2016 | 70 | 217.0 |
150 | 463.0 |
* Blackstone Range Project - E69/2108 and E69/2109: Farmin with Resource Mining Corporation Ltd (ASX: RMI), Redstone earning 90%
The Company has a beneficial interest of 75% in its Blackstone Range joint venture at the end of the Quarter. The Company did not acquire or dispose of any beneficial interests in any joint ventures, farm‐in or farm out arrangements during the Quarter.
Competent Persons Statement
The information in this announcement that relates to Exploration Targets and Exploration Results was authorised by Mr Darryl Mapleson, a Principal Geologist and a full time employee of BM Geological Services, who are engaged as consultant geologists to Redstone Resources Limited. Mr Mapleson is a Fellow of the Australian Institute of Mining and Metallurgy. Mr Mapleson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to act 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 Mapleson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward‐Looking Statements
This document may include forward‐looking statements. Forward‐looking statements include, but are not limited to statements concerning Redstone Resources Limited's (Redstone) planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward‐ looking statements. Although Redstone believes that its expectations reflected in these forward‐looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward‐looking statements.
Redstone Resources Limited issued this content on 29 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 February 2016 23:26:12 UTC
Original Document: http://www.redstone.com.au/investor_centre_asx_announcements_files/2016_01_29_01.pdf
