Waddikee

Monax 100% - EL 4662

Manganese and Iron

The Waddikee project area has potential for manganese and iron within the Proterozoic Hutchison Group metasediments.  More than 80km of strike length of the host sequence, including banded iron formation (BIF), occur within the Waddikee tenement. The BIF sequences are clearly evident as long curvi-linear highs within the 100m line spaced aeromagnetic data acquired over the entire tenement (Figure 1).  Monax has a Farm-in agreement with OM (Manganese) Ltd for the exploration of manganese and iron ore on the tenement.

Initial rock chip sampling conducted in early 2008 identified a number of iron (hematite) and manganese prospects within the tenement.  Samples returned highly encouraging iron, manganese and vanadium results with maximum values of 60.1% iron, 43.8% manganese and 1.13% vanadium oxide.

A 2955 m RC drilling program was conducted at the Jamieson Tank and Polinga manganese prospects in June 2008, with assay results confirming the presence of manganese mineralisation in all eight traverses at the Jamieson Tank Prospect and Polinga Prospect and much higher than expected results for iron.

In August 2009, Monax entered into a Farm-in agreement with OM (Manganese) Ltd, a wholly owned subsidiary of OM Holdings Ltd (ASX:OMH).  Under the terms set out in the agreement, OMM has the right to earn 60% interest in all ferrous minerals (manganese and iron ore) by funding expenditure to the value of $2,000,000 over a 4 year period.  During the Farm-in period, Monax will remain exploration operator.

Drilling in May/June 2010 on the Jamieson Tank Prospect comprised 83 holes totalling 4565 metres, aimed at testing previous auger soil sampling results.  Manganese was intersected in a significant number of holes with the best intersections being:

• 10m @ 17.5% Mn (JTRC069 26 – 36m) including 2m @ 26.7% Mn (26 – 28m)
• 4m @ 17.4% Mn (JTRC053 15-19m)
• 3m @ 19.8% Mn (JTRC057 18-21m)
• 3m @ 17.7% Mn (JTRC057 30–33m)
• 3m @ 21.2% Mn (JTRC067 28–31m)
• 3m @ 18.2% Mn (JTRC089 22-25m)
• 3m @ 18.3% Mn (JTRC095 33-35m)

The drilling results complemented the initial drilling results which included 2m @ 34% Mn in drill hole JTRC034.  From earlier beneficiation testing, Monax believes that beneficiation is likely to significantly upgrade the manganese with the removal of iron and silica.  Monax has previously reported beneficiation success at Waddikee with two samples reporting significant increases in grade with beneficiation:

• JTRC034 (14 – 21m ) – initial Mn grade of 18.7% Mn was upgraded to 34.7% Mn (88.2%  recovery); and
• JTRC036 (8-13m) – initial grade of 20.3% Mn was upgraded to 42.5% Mn (80.96% recovery) – see ASX Release 18 December 2008 for full details of the beneficiation.

A follow up RC/RAB/aircore drilling program was undertaken in March 2011, comprising 62 holes for a total of 3317 m.  Targets were drill tested at the Jamieson Tank, Polinga, Windyzell, Bunora West and Hodgins prospects, with 552 samples submitted for assay. Best drilling results were returned from the Hodgins (HRC) prospect, located in the northern area of the tenement, where six holes were drilled.  Best intersections included:

• 10m @ 29.2% Mn (Hole HRC05 46-56m EOH)
• 20m @ 23.8% Mn (Hole HRC05 22-42m)
• 11m @ 20.8% Mn (Hole HRC03 9-20m)
• 14m @ 16.8% Mn (Hole HRC01 32-46m)

Drillhole HRC05 is the most successful and highest grade intersection from drilling to date on the project area. Overall, the hole returned 52m @ 21.2% Mn (4-56m) and ended in mineralisation, with the bottom two metres reporting 36.6% Mn.

Figure 1:  TMI image for EL 4662 showing Mn and Fe prospects

The manganese and iron prospects are also clearly evident on the regional gravity data (Figure 2).

Figure 2:  Location of Mn and Fe prospects on regional 1km x 1km gravity data (1vd image)

Initial rock chip sampling conducted in early 2008 identified a number of iron (hematite) and manganese prospects within the tenement.

Samples returned highly encouraging iron, manganese and vanadium results with maximum values of 60.1% iron, 43.8% manganese and 1.13% vanadium oxide.

A 2955 m RC drilling program was conducted at the Jamieson Tank and Pollinga manganeses prospects in June 2008, with assay results confirming the presence of manganese mineralisation in all eight traverses at the Jamieson Tank Prospect and Pollinga Prospect and much higher than expected results for iron.

Manganese

Jamieson Tank Prospect
The Jamieson Tank Prospect in the south west of the tenement consists of a 10 km strike length of banded iron formation (BIF) of the Lower Middleback Jaspilite. Manganese mineralisation occurs along strike parallel bands on either side of the BIF sequence. Mapping of the Jamieson Tank Prospect has identified scattered float of highly manganiferous ironstone over a strike length of 5 km. Rock chip samples assayed up to 50.61% Mn with low phosphorous levels of 0.02 to 0.18%.

Pollinga Prospect

Mapping at the Pollinga Prospect identified manganese mineralisation over an area of approximately 900m by 300m. The manganese occurs both adjacent to, and within a de-magnetised zone of banded iron formation. In late March 2008, nine reconnaissance rock chip samples were taken over sporadically out/sub-cropping manganese mineralisation at the Pollinga Prospect. The samples returned highly encouraging manganese results with a maximum value of 41.9% Mn reported. One drill hole was completed in 2008 and intersected manganese mineralisation at depth.

Hodgins Prospect

Manganese oxide has been mapped and sampled at the Hodgins Prospect, 40 km north of the Jamieson Tank Prospect. Outcrop of massive manganiferous rocks occurs adjacent to a manganiferous chert outcrop, just to the south of the Eyre Highway, 20km to the west of the township of Kimba. One rock chip sample returned a value of 37.2% Mn. While no drilling has been undertaken at the Hodgins Prospect to date, it remains a high priority target for future exploration.

Iron

Bunora Siding

Rock chip samples up to 55% Fe have been collected over an area of 3.5 km by 1.3 km at the Bunora Siding Prospect. The prospect occurs within and adjacent to BIF of the Proterozoic Hutchison Group Metasediments. Mineralisation appears to be controlled by a north easterly cross cutting fault. The Cummins-Buckleboo railway passes through the middle of the prospect.

Lambell Prospect

Rock chip samples up to 60% Fe have been collected over an area of 1.5 km by 0.75 km at the Lambell Prospect. The prospect occurs within a similar geological environment to the Bunora Siding Prospect. One sample at this prospect assayed 1.13% V2O5.
Kelly Tank Prospect

Rock chip samples up to 58% Fe have been collected over an area of 1 km by 0.5 km at the Kelly Tank Prospect. The prospect occurs within and adjacent to BIF of the Proterozoic Hutchison Group Metasediments which can be traced for over 13 km to the north and south of the prospect.

Jamieson Tank Prospect

As part of the recent drilling program at Jamieson Tank targeting manganese, selected intervals were assayed for their iron content.  The best results include:

• 20m @ 32.1% Fe (JTRC054 5 – 25m) and 8m @ 25.9% Fe (JTRC054 31 – 39m)
• 7m @ 31.3% Fe (JTRC067 11 – 18m)
• 10m @ 28.0% Fe (JTRC065 22 – 32m)
• 5m @ 27.3% Fe (JTRC053 19 – 24m)
• 5m @ 28.1% Fe (JTRC068 38 – 43m)

The iron potential of the Waddikee tenement has not been fully tested.