Victory West updates Sulawesi molybdenum project
Saturday, August 1 2009 - 03:22 AM WIB
Malala Molybdenum Project, Central Sulawesi.
Project Activity Update
Anomaly B trenching
In February 2009, VWM commenced a trenching programme at Anomaly B with the aim of providing further valuable geological data to assist in defining the size of the Anomaly B target area and planning future resource drilling programs. A total of 1027 samples from 5,597.1 metres of trench line were collected and analysed during the three months to end June 2009. Each sample is a 5m continuous rock chip sample.
Fresh molybdenite, pyrite and chalcopyrite in fractures and veins has been reported at numerous locations within all trenches.
Significant assay results were reported during the quarter from the trench samples returned to date, including broad continuous intervals such as:
- 280m @ 120ppm Mo, including 70m @ 1300ppm Mo from trench L800
- 163m @ 688ppm Mo, including 30m @ 1200ppm Mo from trench L850
- 165m @ 675ppm Mo, including 50m @ 1050ppm Mo from trench L900
- 70m @ 679ppm Mo, including 25m @ 894ppm Mo from trench Li 000
- 62m @ 694ppm Mo from trench L750
These results have defined the bedrock anomaly associated with the Anomaly B target area to be in excess of 800m long and 350m wide (Figure 2). Additional samples are still to be collected from extensions to five of the seven lines (L750, L800, L850, L900 & L950), with the potential to increase the width beyond the 350m defined to date. Furthermore, another five trench lines will be excavated during the current quarter with the aim of extending the strike length of Anomaly B to approximately 2000m.
Importantly, two of these additional trench lines will target the south-eastern extension of Anomaly B where little recent exploration activity has taken place to date, however the historic Rio Tinto drill hole M30 reported a very broad intersection of 363m @ 600ppm Mo. In addition, several high priority targets in close proximity to Anomaly B will be the subject of fieldwork over the coming months (see Figure 3). These additional areas have the potential to further expand the size of the Anomaly B target area. The Company continues to employ over 60 full-time personnel based out of the Nancy Camp at Anomaly B.
Regional Stream Sediment Sampling
Regional reconnaissance stream sediment sampling continued throughout the period on the company?s KP?s with a total of 82 stream sediment samples collected and submitted for assay during the three month period.
Assay results have been received for a number of samples collected from streams and drainages within the Inti Cemerlang KP. Figure 4 illustrates the location and Mo grade of results received to date. Numerous significant assays have been reported from a very broad area around the Anomaly B target area. These results demonstrate that the molybdenum-bearing system present in this area could be much more extensive that originally envisaged. This stream sediment data supports the molybdenum-in-soil geochemistry (Figure 3), increasing the likelihood of further molybdenum discoveries in close proximity to the Anomaly B target area.
In total, 28 stream sediment samples have returned assay results >20ppm Mo. These are significant results when compared to the historical stream sediment assay of 8ppm Mo which lead Rio Tinto to make the initial discovery of molybdenum at Anomaly B. Importantly, several +l00ppm Mo stream sediment assays have been reported from drainages covering large areas to the south, south-west, west and north-west of Anomaly B.
The stream sediment sampling programme within Inti Cemerlang will continue through the current quarter.
Submission of Documents for Conversion of KP?s into IUP?s
In accordance with requirements under the new and recently enacted Indonesian Mining Law, VWM has submitted the formal documents required to convert the Company?s tenements, known as Kuasa Pertambangan?s (KP?s), into Izin Usaha Pertambangan?s (IUP?s). VWM has ensured the KP?s have been kept in excellent standing since acquiring the Malala Molybdenum Project by undertaking a significant amount of exploration to date, as well as committing to ongoing exploration and development campaigns. The Company has decided to convert five of it?s six KP?s into IUP?s, relinquishing the PT Satria Mas KP as it is located within the water supply catchment of the Toli-Toli township. Sampling undertaken within Satria Mas has not returned any significant results and was therefore considered a low priority target area for the Company.
Preliminary Metallurgical Testwork
A 350kg composite sample of drill core from M37 and M38 was sent to Beijing General Research Institute of Mining and Metallurgy (BGRIMM) in the March quarter 2009. BGRIMM performed testwork consistent with a standard crushing, grinding and flotation circuit used in molybdenum processing operations. Results of these tests became available and were reported in the June quarter, indicating a very good recovery up to 89.1% is possible, with a concentrate grading 51% Mo able to be produced. These results are highly encouraging and suggest that the mineralised material present at Anomaly B can produce a commercially acceptable concentrate product. A significant amount of additional testwork is required to determine the metallurgical characteristics of the mineralised material across the entire Anomaly B zone. Further testwork is expected to be conducted upon completion of diamond drilling at Anomaly B within coming months.
Petrological Analysis of Drill Core Samples from Anomaly B
A suite of polished thin sections were prepared from 24 drill core samples selected from the recently completed diamond drilling program undertaken by VWM at Anomaly B. These thin sections were sent to petrologist Dr Jane Barron for detailed petrological and mineragraphic analysis (identification and description of minerals within the drill core at a micro-scale). Dr Barron has prepared a comprehensive report on these samples, focussing on the distribution, location and relationship of molybdenite mineralisation with other sulphide and silicate minerals. A number of interesting conclusions have resulted from this study.
Furthermore, Dr Barron has also recognised an unusual mineral assemblage in a number of the samples taken from the bottom of diamond drill hole M38. This mineral assemblage is found associated with colloform textures consistent with low-sulphidation epithermal systems. As a number of the sulphide minerals present in this assemblage could not be identified visually, the thin sections have been sent to the Dr Graham Hutchison at the University of Melbourne for microprobe analysis. This analysis is being used to identify the unidentified sulphide minerals. Results of this work are expected within the coming weeks, after which shareholders will be updated as to the significance of these results and observations.
During the activity period, the Company did not undertake any mining production or development activities. (end of edited excerpt)