Horseshoe Metals (ASX: HOR) is an Australian copper and gold focused exploration company with a package of tenements covering approximately 300km2 in a highly prospective region of Western Australia.
The Company’s projects are the Horseshoe Lights Project and the Kumarina Project. The Horseshoe Lights Project includes the closed Horseshoe Lights Mine which produced over 300,000 ounces of gold and over 54,000 tonnes of copper from 1946-1994.
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Horseshoe Metals Limited is an exploration company which listed on the Australia Securities Exchange (ASX) in July 2010.
Horseshoe Metals focus is on the exploration and development of copper/gold projects in the highly prospective Peak Hill Mineral Field in central Western Australia.
The Strategic Plan for Horseshoe Metals Limited is to successfully undertake mining operations with a primary focus on copper and gold projects in Australia.
In order to achieve its Strategic Plan, Horseshoe Metals Limited has the following short-medium term objectives:
1. To evaluate mining and development options for the substantial existing surface and in-situ copper resources located at the Horseshoe Lights Mine.
2. To undertake a comprehensive exploration programme aimed at identifying additional copper/gold resources at the Horseshoe Lights Mine.
3. To undertake a comprehensive copper exploration programme over the Kumarina Project tenements.
The Company will by organic growth, acquisitions and corporate activity seek to access additional copper resources in the region around its existing projects.
The Company will also seek to pursue complementary assets and corporate opportunities with the potential to add shareholder value.
Wholly owed subsidiary Murchison Copper Mines Pty Limited holds 100% beneficial interests in the Horseshoe Lights and Kumarina Projects, covering 297.1 square kilometres of mining tenements north of Meekatharra in central Western Australia (see figure 1).
The Horseshoe Lights Project includes the closed Horseshoe Lights mine which operated up until 1994, producing over 300,000 ounces of gold and 54,000 tonnes of copper. The Company has increased the Measured, Indicated and Inferred Mineral Resource to 12.85 million tonnes @ 1.00% copper and 0.1g/t gold containing 128,600 tonnes of copper metal and 36,000 oz of gold (using 0.5% Cu cut-off grade). The potential remains to delineate additional near mine resources through follow-up exploration.
Copper mineralisation was discovered at Kumarina in 1913. Although approximately 580 tonnes of copper metal is reported to have been mined from the Kumarina Project, the current tenement area has been subjected to only limited modern exploration. Drilling at the Rinaldi Prospect in 2011 and 2012 by the Company has successfully delineated quartz vein hosted Copper mineralisation within a N-S fault zone. The Rinaldi Prospect Measured, Indicated and Inferred Mineral Resource is 835,000 tonnes @ 1.3% Cu containing 10,600 tonnes of copper metal (using 0.5% Cu cut-off grade).
The Board believes the Projects are located in a very prospective area as highlighted by the 2009 discovery of the nearby Degrussa copper/gold mine by Sandfire Resources NL (see figure 2). The Degrussa deposit is located in the Narracoota Volcanics geological unit, the same unit which hosts the Company’s Horseshoe Lights Mine.
Figure 1 – Project Locations
Figure 2 – Regional Geological Map of Project Area
Horseshoe Lights Project (100%)
The historic Horseshoe Lights gold-copper mine and associated tenements are located approximately 800km north-northeast of Perth and 140km north of Meekatharra (Figure 1).
The Horseshoe Lights Project comprises sixteen tenements that cover an area of approximately 79.98km2 (see Figure 3).
Figure 3 – Project Tenements over Geology
The Horseshoe Lights deposit was discovered in 1946 and was in production up until 1994.
The total life of mine production to 1994 is summarised in the table below:
In-Situ Mineral Resources
In 2013 the Company commissioned CSA Global Pty Limited to undertake a mineral resource estimation using the historical drilling database and the results from the company's 2010/11 and 2012/13 drilling programmes (94 RC drill holes, 9 Diamond drill holes and 3 Diamond Tails for 19,951m).
The mineral resource estimation identified a Measured, Indicated and Inferred Mineral Resource of 12.85Mt at 1.00% Cu and 0.1g/t Au using a cut-off grade of 0.5% Cu containing 128,600 tonnes of copper and 36,000 oz of gold. Over 30% of the Resource is in the Measured and Indicated categories, providing a high level of confidence in the estimation.
The mineral resource estimation for low-grade copper-bearing material remaining on surface at Horseshoe Lights in stockpiles, dumps and tailings is given below.
The potential to host additional copper-gold resources within the current tenements can be supported by the following evidence:
-Past production of around 3.3Mt at 1.7% Cu and 2.9 g/t Au demonstrates the project area is significantly mineralised.
-The area has major regional shear structures that have tended to displace the mineralised zones that were being mined (such as the east northeast striking fault recognised late during the mining that terminated the Southern end of the main ore-body. These structures have excellent potential to yield en-echelon ore-body repetitions elsewhere within the project area.
-There has been extensive surface disturbance, potentially obscuring any surface expression of mineralised extensions and hampering access for drilling; and as a result there has been little exploration to locate potentially displaced mineralisation.
-Opportunity exists to increase the zone of mineralisation either along strike or down dip of the known ore-body due to the gaps that exist in the previous drilling. These untested zones represent the highest priority for future drilling programs.
Potential also exists for en-echelon repetitions of the Horseshoe Lights deposit, especially in the area immediately east of the pit, near the CIP tailings dam and vat leach areas. These areas have only received limited drilling in the past.
The Kumarina Project comprises two tenements covering an area of approximately 217.1km2 as shown in Figure 4.
Figure 4 – Project Tenements
The Kumarina copper deposits were discovered in 1913 and worked intermittently until 1973. The workings extend over nearly 3km as a series of pits, shafts and shallow open cuts. At the main Kumarina Copper Mine on M52/27, the workings are entirely underground with drives from the main shaft extending for some 200m in the upper levels and for about 100m in the lower levels at a depth of 49m below surface.
Records indicate that the Kumarina Copper mine was the second largest producer in the Bangemall Basin group of copper mines. Recorded production to the late 1960s is 481t of copper ore at a high-grade of 37.0% Cu and 2,340t at a grade of 17.51% Cu.
The potential to host copper mineralisation within the current tenements can be supported by the following evidence:
-Approximately 2800t of high-grade copper ore has been mined from underground between 1913 and 1973; this production demonstrates copper mineralisation occurs in the project area.
-Generally past mining has been above the water table to 17m. Potential exists for copper mineralisation extensions below the water table. A 1962 drill hole by Carpentaria intersected 5.59% Cu over 6.7m.
-Potential multiple copper targets were discovered by St Barbara that ranged in assays from 1.15% to 3.5% Cu. These targets warrant follow-up exploration including mapping and surface rock chip sampling.
-The current tenement area has only been subjected to limited modern exploration. Consequently, the area is considered to be at a very early stage of assessment with potential for the discovery of additional ‘greenfield’ copper mineralisation using modern exploration techniques.
-Satellite imagery interpretation completed by Murchison Copper Mines in 2009 has identified several high priority targets for detailed exploration. (See >Figure 5)
Figure 5 - Kumarina Regional Geology
Two reverse circulation percussion drilling programmes were completed by Horseshoe during the December 2011 quarter. Results of the drilling programmes identified significant shallow copper mineralisation at the Rinaldi Prospect along a north – south oriented fault. The Company’s 2012 diamond drilling programme of seven holes intersected visible copper with some high grade zones returning one metre assays of up to 15.2% copper.
Follow-up RC drilling in 2012 was completed at the Rinaldi Prospect ahead of a maiden mineral resource estimation. The mineral resource estimation identified a Measured, Indicated and Inferred Mineral Resource of 835,000 tonnes @ 1.3% Cu, using a cut-off of 0.5% Cu, containing 10,600 tonnes of copper. Mineralisation at the Rinaldi Prospect is shallow and remains open along strike and down dip. Follow-up RC drilling at the Rinaldi Prospect is warranted.
Mr. Jeremy David Shervington - Non-Executive Chairman - B.Juris, LLB
Mr Shervington operates a legal practice in Western Australia. Mr Shervington has approximately 30 years experience as a lawyer. He specialises in the laws regulating companies and the securities industry in Australia. Since 1985 Mr Shervington has served as a director of various ASX listed companies as well as a number of unlisted public and private companies.
Mr Shervington is currently a director of the following ASX listed companies:
Australian Zircon NL and Emerald Oil & Gas NL
Mr. Neil Andrew Marston - Managing Director - B.Com, ACIS
Mr Marston is a qualified accountant and chartered secretary with over 30 years experience working in the resources and other industry sectors. Mr Marston has served most recently as the Company Secretary and/or CFO of Grange Resources Limited and Gippsland Limited. He has extensive experience in the areas of accounting, capital raising, corporate governance and compliance, project management, mining and environmental approvals, contract negotiations and stakeholder engagement.
Mr Marston is not presently a director of any other ASX listed company.
Mr. Michael George Fotios - Non-Executive Director -BSc(Hons) MAusIMM
Mr Fotios has qualifications in Geology specialising in Economic Geology with extensive experience in exploration throughout Australia working with gold, base metals, tantalum, tin and nickel from exploration to feasibility over the last 28 years. He is currently a director of the unlisted company, Investmet Limited, a non-executive director of listed gold producer and explorer, Northern Star Resources Limited, a non-executive director of listed junior explorers General Mining Corporation Limited and Pegasus Metals Limited, and has previously held positions with Homestake Australia Limited, Galaxy Resources Limited, Tantalum Australia NL (now ABM Resources Ltd) and Sons of Gwalia Limited.
Mr. Stuart John Hall - Non- Executive Director - B.Sc Hons, FAusIMM, FGS
Mr Hall is a qualified geologist with over 40 years experience in exploration and mining projects located in Australia and Africa. He has extensive experience in the areas of exploration strategy, mine geology, open pit and underground mining operations, resources/reserve estimations & reconciliation, feasibility studies, mine project development and mine management. Mr. Hall has been involved in the feasibility, construction, commissioning and management of several open pit and underground mining operations. Mr. Hall currently operates his own geological consultancy.
Mr Hall is currently a director of the following ASX listed companies:
Gladiator Resources Limited.
Mr. Damian Delaney - Company Secretary - CA (SA)
Mr Delaney is a Chartered Accountant with over 20 years of experience working with international listed companies.
Mr Delaney commenced his career in South Africa, qualifying with Coopers & Lybrand, before taking up a series of Finance positions in the United Kingdom, finally as FD of LSE listed Tarsus Group plc until 2004. He has worked in the resource sector for the past 7 years and has been involved in numerous capital raisings for the junior resource sector, holding a number of executive and non-executive Directorships. He was Managing Director of Nimrodel Resources Ltd from 2009 to 2011 and is currently a Director and Company Secretary for Genesis Minerals Ltd as well as Company Secretary for Horseshoe Metals Ltd.
Mr Delaney brings significant experience in capital markets for the SME sector. He is fully conversant with all regulatory requirements of the Australian and UK markets and has many years hands on experience managing all aspects of a Company's finances and operations and associated regulatory reporting.
Unit 6/11 Colin Grove
West Perth WA 6005
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Telephone: +61 8 9481 5866
Facsimile: +61 8 9481 5966
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ASX Code: HOR, HORO