ORESRUS NL

EXPLORAT
ION
PROPOSA
L
TENEMENT E
70/4529

Md Salim Pervez & Nur Anbiyak

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 TABLE OF CONTENTS

TABLE OF CONTENTS.............................................................................................. i
1. INTRODUCTION.................................................................................................. 1
1.1 Target commodity.............................................................................................. 1
1.2 Location......................................................................................................... 1
1.3 Access, topography and climate............................................................................ 2
2. PREVIOUS WORK................................................................................................ 2
2.1 Open file summary............................................................................................. 2
3. GEOLOGY........................................................................................................... 3
3.1 Regional geology:............................................................................................... 3
3.2 Local geology.................................................................................................... 4
4. EXPLORATION MODEL....................................................................................... 5
5. EXPLORATION PLAN........................................................................................... 8
6. EXPLORATION BUDGET...................................................................................... 9

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 EXPLORATION PROPOSAL FOR E 70/4529
ORESUS NL

1. INTRODUCTION
1.1 Target commodity
The targeting commodity for the exploration are gold, nickel and copper. Rocky Gully Ni-Cu
Project is located about 250 km west of the tenement. From drilling of the project, Ni-Cu
high anomalies has been identified in the area. As, Rocky Gully Ni-Cu Project area and
tenement E 70/4529 are situated in the same Albany Fraser Orogen (AFO) region and they
are not far away from each other; so, there will be a high potential to get Ni-Cu deposits in
our tenement. Therefore, geophysical, geochemical and drilling program involved in the
project to explore Au-Ni-Cu deposits.

1.2 Location
The tenement areas are part of Fraser Range South Project that is located south-west of
Western Australia. It is away from roughly 200 km west of mount Barker, 45 km North West
side of Bremer Bay and 16km south east side of Jerramungup. The Stirling Range National
Park located southwest of the tenement.

Figure 1 Location map of tenement area.

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1.3 Access, topography and climate
Two main highways can be used to access the tenement; firstly South Coast Highway
followed by local roads, secondly follow Albany Hwy then follow toward east along the
Gnowangerup-Jerramungup Rd followed by South Coast Highway. Many farm paddocks
restricted to access the tenement area.

The eastern side of the tenement characteristic by gently undulating low relief area and west
& northern side of the tenement identified by colluvial plain with drainage systems. Wheat
crops and eucalypt trees are main vegetation in the area.

Southwestern Australia predominantly shows a mediterranean climate that is typically winter

rainfall and summer drought. The annual rainfall varies from 1400 mm to 250 mm and annual
evaporation ranges from 1200 mm to 2600 mm over the area (Luke et al., 1987).

2. PREVIOUS WORK
2.1 Open file summary
Year of Tenement Company Exploration Activities Key Findings
Explora number Name
tion
1988- E 70/473- Placer Air core drilling and 500 samples Heavy minerals
1989 475 Exploration were taken from there. concentration were found
E 70/ 594 Ltd. Natural gamma logs in 16 holes in in three areas, but they
E 70/ 630 the area. were too small deposits to
Sectional resource estimation of carry out operation.
three sections in Pallinup area.

1989- E 70/473- Eucla Mining Ground magnetometer surveys. Insignificance heavy

1991 475 NL RC drilling mineral deposits. The
E 70/ 594 323 samples analysis. presence of hard silicified
E 70/ 876 Palynogical studies. bands downgraded the
12 water samples analysis. probability of economic
minerals.

1999- E 70/1986 Defiance Laterite geochemical analysis by Some survey plan had
2000 Mining NL taking 532 samples. been made, such as
Made of land access agreement. airbone magnetic and
Digital topographic data collection. radiomatric survey, drill
Made of dieback management plan. within magnetic and
laterite anomalies area.
2000- E 70/2225 BHP Minerals Aeromagnetic survey No significant
2001 Pty Ltd Drilling geochemical anomalies
Geochemical analysis. were found.
2005- E 70/2681 Dominion Gridding Low anomaly of gold that
2006 Mining Ltd 31 geochemical samples analysis. was 3 ppb found from
geochemical analysis.

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2006- E 70/2848 Mr Asking Literature review of previous work. Prospectivity of gold,
2007 PW Past drill holes location digitalised. heavy minerals sand and
Field reconnaissance visit. polymatellic deposits had
Make potential model for been pointed out.
mineralization.
Determine the prospectivity of the
area.

2012- E 70/3902 Australia Literature review of previous work. 27 Mt @ 2.5% HM of

2013 Minerals and Past drill holes location digitalised. mineral sand deposits
Mining Group Field reconnaissance visit. were found that was not
Ltd. Make potential model for above the benchmark of
mineralization. economic extraction.
Determine the prospectivity of the
area.

2013- E 70/4083 Windward Literature review of previous work. Some Au and base metal
2016 E 70/4085 Resource Ltd Sale agreement anomalies were found
E 70/ Infill geochemical sampling from geochemical analysis
3117 Priority targeting of roadside sample, but
An aeromagnetic/ radiomatric probability were
downgraded due to low
survey and interpretation.
priority.
Roadside geochemical sampling and
result interpretation.
Evaluation of geochemical
programs.

3. GEOLOGY
3.1 Regional geology:
The whole region including Fraser Range South project is composed of Mesoproterozoic
rocks. The exposure of the rock type has been found along southern coastline in Western
Australia. The region is identified as Albany Fraser Orogen (AFO) that is located beside
Archean Yilgarn Craton along northwest and it extends toward eastwards below the Eucla
Basin (Spaggiari et al, 2009, as cited in Sanders 2015). Depending on structural style, field
and isotopic studies, AFO region was subdivided into four lithotectonic areas (Beeson et al,
1988; Myers, 1990; Whitaker, 1992, 1993; Fitzsimons, 2003; Spaggiari et al, 2011, as cited in
Sanders 2015); they are i) a foreland component, ii) a basement component describe as the
Kepa Kurl Booya area, iii) Recherche and Esperance Supersuite igneous intrusives (Spaggiari
et al, 2009, as cited in Sanders 2015). Basement compound divided into two groups; Biranup,
Fraser and Nornalup Zones. Tectonic activities in the AFO occurred in two ages; one was
13451260 Ma ago that generated high grade metamorphism and deformation (Clark et al,
2000; Spaggiari et al, 2009) and other was 12151140 Ma ago that created intracratonic
reactivation of the AFO (Clark et al, 2000; Spaggiari et al, 2009, as cited in Sanders 2016).

Major linear structures are SW to NE trending; they are parallel and started SW margin and
continued upto NE margin. Associated with linear structure, strike-slip faults and shear zones
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have been found that are sub-parallel or cross-cut to main structure. Some different
directional linear structure that are NW to SE trending also noticed in the area. Numerous
network of dykes are located in the region that are N-S and E-W trending and cross-cut each
other.

Figure 2 Regional geological setting.

3.2 Local geology

Local geology can be subdivided in to three units; proterozoic basement geology, tertiary
cover and surficial materials.
Proterozoic basement geology: The Fraser Range South Project is part of lithotectonic units
of the Albany Fraser Orogen and consists of two zones; Northern Foreland and Birinup Zone;
they are divided by the Darling Fault. Northern Foreland comprises Munglinup Geniss
lithotectonic unit that are granite, gneisses and dolerite dykes. Due to having metamorphic
magnetite in the granitic gneisses rock, Birinup Zone shows high magnetic anomalies
(Spaggiari et al, 2009). The Dalyup Gneiss is the primary lithotectonic unit of Birinup Zone
that goes through the south of these tenements. This unit consisted of heterogeneous granitic
rocks and less abundant mafic rocks.

Tertiary cover: Tertiary sediments are situated over the Proterozoic basement and is divided
into two formation; Werillup Formation and on top of that Pallinup Siltstone (Muhling et al.
1985, as cited in Stephen 2013). According to water bore drilling and historical exploration,
the total thickness can be more than 100m of Plantagenet Group sediments in the tenement
area.

Surficial materials: Top part of Fraser Range South Project is mostly covered by
unconsolidated Aeolian sands and lateritic residuum with minor outcropping Proterozoic
basement rock. Laterite was the product of both basement Proterozoic rocks and terrestrial
and shallow marine sediments in tertiary age.
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Structure: SW to NE trending linear structure and S-W trending dyke have been found in the
tenement area. In the middle of the area, SW-NE trending high gravity value is observed that
indicates the presence of high specific gravity mafic rock.

Mineralisation: Heavy minerals sand deposits and nickel-copper high anomalies have been
detected in the tenement area from previous exploration that can be used as pathfinders for
future exploration.

Figure 3 Local geology with mineralisation.

4. EXPLORATION MODEL
The project is located in the Albany-Fraser Mobile Belt that is known to host several world
class base metal and precious metal deposits, such as Nova-Bollinger nickel deposit and
Tropicana gold deposit. The Oresrus project is targeting Ni-Cu sulphide mineralization in the
tenement which associated with mafic rocks intrusion.

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 Fig 4 Oresrus Project location (modified after Heron Resources)

The major nickel sulphide deposits typically occurs in craton margin that associated with
extensional tectonic setting which caused thinning of lithosphere. The deposit occurs in the
areas where tectonic activities created zones of crustal thinning, adjacent to major crustal
sutures (Dulfer et al., 2016). The Albany-Fraser mobile belt is formed as the result of
continental rifting caused by the break-up of Godwana. The break-up triggered by the rifting
process provide mechanism for ascending magma from the mantle and become the source for
the mineralization.

According to Dulfer et al. (2016), the genesis of Ni-Cu sulphides deposits is controlled by the
abundance of metal elements in the primary magma, sulphur saturation of the magma that
allowed precipitation of the metal bearing sulphide minerals, and the sulfide minerals
concentration to form an ore deposit. The high concentration of Ni, Cu, and PGE is
associated ultramafic-mafic rocks that provide metal source for the deposit.

The bedrock lithology of the area is formed by combination of Proterozoic metamorphosed

granitic rocks and Proterozoic granite and mafic intrusion rocks which intruded into older
Archean greenstone and granitic rocks. The area is structurally modified and the mafic rocks
were variably mixed with the felsic rocks. The mafic rocks intrusion is potentially host Ni-Cu
sulphide deposit in the Oresrus project. Dulfer et al. (2016) provides prospectivity map of Ni-
Cu deposit in a continental scale in Australia and placed the tenement area as moderate
prospective area to host the deposit.

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 Fig 5 Modelled potential of Ni-Cu sulphide deposits occurence

The tenement area is located in the relatively flat region with low relief and majority of the
area is covered by thick regolith units. Previous drilling by BHP shows that that regolith
thickness reach 50 m depth in the area. Exploration targets have been developed for Oresrus
Project using magnetic intensity map from the Geoview and previous drilling result, the
priority targets are characterized by:
Magnetic anomalies which may represent the occurrence of mafic-ultramafic rocks
Previous drilling result that indicated enhancement of nickel and copper level in the
saprolite regolith unit
The elevated value of nickel and copper that coincide with magnetic anomaly location

According to priority target criteria, three exploration targets are selected in the Oresrus
project as shown in the Fig 6 below.

Fig 6 Exploration target location

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5. EXPLORATION PLAN
The mineralogy of nickel sulphide deposit typically consists of pyrrhotite, pentlandite and
chalcopyrite that have anomalous magnetic susceptibility, density, electrical conductivity and
chargeability, therefore the combination of those physical properties are able to delineate
nickel sulphide orebodies (King, 2007).

The airborne electromagnetic (EM) survey using helicopter is chosen for the area because its
ability to collect the data rapidly and provide contrast between massive sulphide bodies that
typically has high conductivity compared to the surrounding wall rocks. Consequently, EM
anomaly is representing the occurrence of nickel sulphide deposit.

The EM survey is planned in the first year of exploration period to cover 75% of the
tenement area including the three target areas. The line length is 654.5 km with 100 m
spacing line. It will allow for a better evaluation of the character and potential of
mineralization in the project area. The survey will be conducted on the month of May due to
low rainfall during that period that allow optimum helicopter operation.

Fig 7 Heli EM Survey Location

The 8 holes of reverse circulation (RC) drilling with total depth at 1200 m (150 m each) will
follow in the second year of exploration target. It is targeted to test the magnetic anomaly in
the Target 1 and Target 2 area. The drilling objective beside testing the anomaly is to define
metal dispersion within regolith unit in the area. Two RC drilling rigs will be used during one

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month drilling activities. RC is chosen because it provides fast penetration rate and able to
penetrate fresh rocks with minimum sample contamination.

RC chip samples are logged for two meter intervals and stored in the chip tray boxes. The
composite of 4 meter samples in each drill holes is sent to the laboratory in Perth and
analysed using inductively coupled plasma mass spectrometry (ICP-MS) method for 51
elements, including Ni, Cu, Au, Ag, Fe, Pb, Sn, Zn, As, Ce, Ga, Mg, Rb, Sr, Ba, Co, Ge, Mn,
Re, Ta, W, Be, Cr, Hg, Mo, Sb, Y, Bi, Cs, Nb, Sc, Th, Zn, Ca, Se, Ti, and Zr.

6. EXPLORATION BUDGET
During two years of exploration period, one exploration geologist will be hired on permanent
basis to supervise exploration activities while the other workforces are rely on the contractors
and consultant. The field supporting facilities is only hired during one month of survey and
drilling campaign. The detailed exploration budget is shown in the Table 1 below.

Year 1 ($) Year 2 ($)

Wages and Salaries
Project Geologist 150,000.00 150,000.00
Field Assistant 50,000.00
Field Supplies
Meal 5,400.00 8,100.00
Field Support
Accomodation 4,500.00 4,500.00
Car Rent 4,500.00 4,500.00
Geophysics
Helicopter EM (654 line km) 163,625.00
Geochemistry
Drilling Sample
Preparation 3,000.00
ICP-MS (51 elements) 10,500.00
Drilling
RC Drilling (600 m) 120,000.00
Consultant 30,000.00 30,000.00
Administration 71,605.00 76,120.00
Total 429,630.00 456,720.00
Table 1 Oresrus Project exploration budget

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 REFERENCES

Downie A & Adams M., July 2014. Annual Technical Report C25/2014. E 70/4083 & E 4085
for the period 1st June 2013 to 31st May 2014. Accessed on 21 th October 2016.
file:///D:/Semister%20two/Advance%20Predictive%20Mineral%20Exploration/Report
%20and%20Presentation/tenament%20previous
%20work/a102880_c25_2014_2014a_16080358.pdf
Dulfer, H., Skirrow, R. G., Champion, D. C., Highet, L. M., Czarnota, K., Coghlan, R., &
Milligan, P. R. (2016). Potential for intrusion-hosted Ni-Cu-PGE sulfide deposits in
Australia: A continental-scale analysis of mineral system prospectivity. Canberra:
Geoscience Australia.
Heron Resources (2016). "Albany Fraser Mobile Zone." Retrieved 2 November 2016, from
http://www.heronresources.com.au/albany.php.
King, A. (2007). Review of Geophysical Technology for Ni-Cu-PGE deposits. Paper presented
at the Proceedings of Exploration 07: Fifth Decennial International Conference on Mineral
Exploration.
Sanders H., 2016. Partial Surrender Report E70/3117 for the period 12 March 2013 to 12
May 2016, Fraser Range South Project. Accessed on 21th October 2016. file:///D:/Semister
%20two/Advance%20Predictive%20Mineral%20Exploration/Report%20and
%20Presentation/tenament%20previous%20work/a109593_a109593_v1_report.pdf
Sanders H., 2015. Surrender Report C 25/2014 E70/4083 E70/4085 for the period 7 th March
2012 to 28th January 2015, Fraser Range South Group 5. Accessed on 21th October 2016.
file:///D:/Semister%20two/Advance%20Predictive%20Mineral%20Exploration/Report
%20and%20Presentation/tenament%20previous%20work/a105187_frs_c25_2014_2015s.pdf
Turley Stephen, April 2013. Fraser Range South Project, E 70/4083. Annual Exploration
Report for year ending 6 th march 2013. Accessed on 21 th October 2016. file:///D:/Semister
%20two/Advance%20Predictive%20Mineral%20Exploration/Report%20and
%20Presentation/tenament%20previous%20work/2013pdf...pdf
Turley Stephen, April 2013. Fraser Range South Project, E 70/4085. Annual Exploration
Report for year ending 6 th march 2013. Accessed on 21 th October 2016. file:///D:/Semister
%20two/Advance%20Predictive%20Mineral%20Exploration/Report%20and
%20Presentation/tenament%20previous%20work/2013pdf...pdf