Shearers Otways ASX release Clarification No letter · Page 5 of 11 Figure 1: Nullagine Location...

Ground Floor 17 Ord Street West Perth WA 6005 Australia. PO Box 117 West Perth WA 6872 Australia.

T: +61 (0) 8 9216 9011 F: +61 (0) 8 9481 0288 E: [email protected] W: www.millenniumminerals.com.au

ABN 85 003 257 556

13 July 2010 Manager Company Announcements Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000

Via Electronic Lodgement

Dear Sir/Madam

Clarification _ High Grade Gold Intersections from Shearers and Otways

Show potential for pit extensions and increased Mineral Resources

• Spectacular gold zone intersections at Shearers, and shallow high grade gold intersections at Otways;

• Significant gold intercepts include:

1. Shearers

o 41 metres at 4.2 g/t Au from 89 metres, including 3 metres at 29.6 g/t Au from

119 metres;

o 14 metres at 6.57 g/t Au from 106 metres, including 2 metres at 29.5 g/t Au

from 107 metres;

o 4 metres at 4.09 g/t Au from 100 metres;

2. Otways

o 17 metres at 3.72 g/t Au from 16 metres, including 1 metre at 44.1 g/t Au from

17 metres;

o 7 metres at 5.39 g/t Au from 79 metres, including 1 metre at 31.5 g/t Au from

83 metres;





• At Shearers the new results, just 20 metres below the current proposed southern

open pit, show very strong potential to expand the pit design with further infill drilling;

• At Otways, shallow strong grades show continuity for 200 metres along strike from previous drilling (mineralisation still open to east).

of 11

Introduction Millennium Minerals Limited (“Millennium” or “the Company”) is pleased to report further results to date from a completed RC drilling programme at its Nullagine Gold Project, in the East Pilbara District of Western Australia. The initial drilling programme was designed to test for extensions to mineralisation outside the margins of the current pit designs at Golden Eagle and Shearers, targeting Inferred Mineral Resources not included in the designs. In addition, the drilling targeted gold mineralisation at the Otways prospect, located adjacent to the Shearers pit. This drilling is aimed at upgrading the Inferred Mineral Resource estimate to Measured and Indicated Final assay results have now been received for Shearers and Otways. Outstanding assay results from the final 12 holes at Golden Eagle will be reported as they come to hand.

Shearers

At Shearers, final fire assay results for the last 9 holes have been received from Ultra Trace in Perth. All results to date have been collated in conjunction with QAQC results (Certified Reference Material standards, field and laboratory duplicates), which demonstrated acceptable performance. Significant Shearers gold results include:

• SHX022: 41 metres at 4.2 g/t Au from 89 metres, including 3 metres at 29.6 g/t, 1 metre

at 9.67 g/t Au, and 1 metre at 12 g/t Au;

• SHX023: 14 metres at 6.57 g/t Au from 106 metres, including 2 metres at 29.5 g/t Au

and 1 metre at 13 g/t Au;

• SHX024: 4 metres at 4.09 g/t Au from 100 metres;





The full results from the drilling are presented in Table 1. Figure 2 details collar locations, including previous drilling, and the current proposed pits design. Intervals are expressed as metres down hole and are not true width. Many of the new and very strong intersections fall outside the current southern pit design. The results to date confirm that there are several zones with potential to expand Shearers mineral resources. Wide, locally very high grade gold intersections have now been demonstrated along over 80+ metres of strike, within the broader current southern pit design. The recent results show excellent continuity with mineralisation incorporated within current pit designs. However most of these new intersections are spatially located beneath the current southern pit design and some of the highest grades lie only 20 vertical metres below the currently designed pit floor e.g. in holes SHX022 & SHX023.

of 11

These, and previously released results also show potential to merge the current southern and northern pit designs. With further infill drilling, it is anticipated that Measured and Indicated Mineral Resources will be defined in this area with the view to deepening the southern pit and materially increasing contained gold ounces. Gold mineralisation at Shearers is hosted by bedding semi‐conformable, northerly trending thin quartz stringers predominantly within weakly metamorphosed conglomerate, mudstone and sandstone units of the Mosquito Creek Formation and dips between 70 and 90 degrees to the west (Figure 3).

Otways

At Otways, located approximately 300 metres to the southeast of Shearers, the results of the 22 hole RC programme have now been received from Ultra Trace. All results to date have been collated in conjunction with QAQC results (Certified Reference Material standards, field and laboratory duplicates), which demonstrated acceptable performance. Significant Otways gold results include:

• OWX021: 17 metres at 3.72 g/t Au from 16 metres, including 1 metre at 44.1 g/t Au from 17 metres;



• OWX012: 19 metres at 1.46 g/t Au from 0 metres, including 2 metres at 4.91 g/t Au from 0 metres;

• OWX010: 6 metres at 2.66 g/t Au from 23 metres;






The full results from the drilling are presented in Table 2. Figure 4 details collar locations, including previous drilling, and the current proposed pits design. Intervals are expressed as metres down hole and are not true width. Results show moderate to broad zones of shallow mineralisation which, with further planned extension and infill drilling, has potential to further upgrade the current Indicated and Inferred Mineral Resource estimate to Measured and Indicated. The assays confirm that the mineralisation strikes for over 600 metres, and provides good support for potential extension a further 150 metres further to the east. Gold mineralisation at Otways is hosted by east‐north easterly trending quartz veins within siltstone, sandstones and conglomerates of the Mosquito Creek Formation and dips between 80 and 90 degrees to the northwest (Figure 5).

of 11

Summary The Company is very pleased with the results from the RC drilling at Shearers and Otways. The primary objective for this round of drilling was to improve the confidence levels of the mineral resources estimates at Shearers. At Otways the objective is to upgrade the confidence levels of the Mineral Resource estimates. These objectives are now more likely to be achieved. The potential for continuing development of prospectivity indicated by the drilling to date in and around Golden Eagle, Shearers and Otways also continues to be encouraging, and will warrant further exploration work both on strike and at depth Outstanding assay results from Golden Eagle will be reported as they come to hand. The geological data collected from the work at all three deposits will now be added to the existing databases so that revised Mineral Resource estimates can be determined. This work is expected to take approximately 8 weeks from receipt of final assay results.

Background ‐ Nullagine Gold Project

The Nullagine Gold Project is a 1.15 million ounce JORC compliant gold resource contained within 7 deposits on granted mining leases. The largest deposit is Golden Eagle located approximately 10 km south of the township of Nullagine (Figure 1) and contains 68% of the total Mineral Resource inventory. Much of the permitting and design work for an average 1.15 million tonne per annum Carbon‐In‐Leach (CIL) processing facility has been completed.

Brian Rear CEO ENQUIRIES: Brian Rear

Telephone: +61 (8) 9216 9011

Competent Persons Statement

The information in this report that relates to exploration results was compiled by Mr I Hay (MAIG), a geologist employed full‐time by Millennium Minerals Limited. Mr Hay is a member of the Australian Institute of Geoscientists and has sufficient experience that is relevant to this style of mineralization and type of deposit under consideration and to the activity that is being reported on to qualify as a Competent Person as defined in the 2004 edition of the “Australasian Codes for Reporting of Mineral Resources and Ore Reserves”. Mr Hay consents to the inclusion in the report of the matters in the form and context in which it appears.

Qualifying Statement

This release may include forward‐looking statements. These forward‐looking statements are based on Millennium’s expectations and beliefs concerning future events. Forward‐looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Millennium, which could cause actual results to differ materially from such statements. Millennium makes no undertaking to subsequently update or revise the forward‐looking statements made in this release, to reflect the circumstances or events after the date of this release

of 11

Figure 1: Nullagine Location Plan

Table A: Nullagine Gold Project Mineral Resource Estimate November 2009

Measured Indicated Inferred Total

Deposit

Mt Grade Mt Grade Mt Grade

Mt Grade Ounces

(g/t Au) (g/t Au) (g/t Au)

(g/t Au)

(Au)

Golden Eagle² 11.43 1.26 4.60 1.02 4.04 1.00 20.07 1.16 749,000 Shearers² 0.59 1.09 1.04 0.87 0.40 0.90 2.03 0.93 61,000 Bartons² 1.33 1.47 0.85 1.48 0.37 1.70 2.55 1.51 125,000 All Nations² 1.11 1.30 0.19 1.04 0.14 1.10 1.45 1.25 58,000 Golden Gate (ABCD Reef)² 0.58 3.24 0.11 2.60 0.68 3.12 69,000 Golden Gate Satellites³ 0.33 3.00 0.13 3.40 0.46 3.10 45,000 Otways³ 0.61 0.76 0.44 0.91 1.04 0.82 27,000 Little Wonder³ 0.58 1.22 - - 0.58 1.22 22,900 Totals 14.46 1.28 8.78 1.26 5.63 1.12 28.86 1.24 1,156,900

Notes:

1. Figures in Table may not sum due to rounding. 2. The Mineral Resources were estimated using Multiple Indicator Kriging methodology for grade estimation by Hellman and

Schofield Pty Ltd. 3. The Otways, Little Wonder and Golden Gate satellite deposits namely Falcon, Harrier, Crow, G-Reef and Condor were

estimated using Ordinary Kriging methodology for grade estimation by CSA Global. 4. The table excludes royalties payable to third parties. 5. The Golden Gate and Bartons deposits are the subject of a mining licence agreement whereby Millennium has the sole and

exclusive right to explore and mine gold and other minerals. Millennium then is required to pay 25% of the net proceeds to the tenement owners (Livestock Marketing Pty Ltd, Duncan Thomas Young, Simba Holdings Pty Ltd and Ronald Lane Swinney) after mining and processing cost deductions.

of 11

Compliance Statements

The reported Mineral Resource as it relates to Golden Eagle, Bartons, Shearers, All Nations, Little Wonder and Golden Gate ABCD reefs has been compiled by Mr Nic Johnson. Mr Johnson is a Member of the Australian Institute of Geoscientists and an employee of Hellman & Schofield Pty Ltd. He has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves’ of December 2004 (“JORC Code”) as prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, the Australian Institute of Geoscientists and the Minerals Council of Australia. The Competent Persons listed consent to the inclusion in the report of the matters based on their information in the form and context in which it appears. The reported Mineral Resource as it relates to the Otways, Little Wonder and Golden Gate satellite deposits was completed under the overall supervision and direction of Steven Hodgson, MAIG, of CSA Global who is a Competent Person as defined by the Australasian Code for the Reporting of Exploration Results, Mineral Resources or Ore Reserves (JORC Code 2004 Edition) and who consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this report that relates to in-situ Mineral Resources based on information provided by Millennium Minerals Limited. The Mineral Resource estimate was compiled by Steven Hodgson, MAIG, of CSA Global. David Williams, MAusIMM, of CSA Global was responsible for the technical review of the Mineral Resource estimate.

Figure 2: Shearers Deposit with historical & recent drilling, mineralisation and current proposed pit outline

of 11

Figure 3: Shearers cross section SHX023

of 11

Figure 4: Otways Deposit with historical & recent drilling, and mineralisation trends

Figure 5: Otways cross section OWX020 ‐ 022

of 11

Table 1. Shearers Significant RC Assay Results

Nullagine Gold Project RC Drilling Programme Significant Intercepts

Hole ID GDA East

GDA North RL Azm Dip Depth From To Length Au

(mE) (mN) (m) (deg) (deg) (m) (m) (m) (m) g/t SHX022 211715 7573699 387 90 ‐60 132 69 70 1 1.03

79 83 4 1.13 89 130 41 4.2 Incl. 93 94 1 9.67 Incl. 100 101 1 12 Incl. 119 122 3 30

SHX023 211706 7573681 388 90 ‐60 132 106 120 14 6.57 Incl. 107 109 2 30 Incl. 110 111 1 13

SHX024 211717 7573658 391 90 ‐60 132 84 85 1 1.08 100 104 4 4.09

SHX025 211742 7573641 398 90 ‐60 120 11 13 2 8.38 Incl. 11 12 1 16 73 82 9 1.17

SHX026 211731 7573620 398 90 ‐60 120 88 97 9 1.19 SHX027 211736 7573579 394 90 ‐60 102 0 1 1 1.17

8 9 1 1.43 58 61 3 0.83 80 84 4 0.72

SHX028 211730 7573596 394 90 ‐60 114 89 96 7 1.04

SHX029 211756 7573562 392 90 ‐60 72 47 60 13 0.63

SHX030 211731 7573562 391 90 ‐60 96 71 82 11 1.06

Table 2. Otways Significant RC Assay Results Nullagine Gold Project RC Drilling Programme Significant Intercepts

Hole ID GDA East GDA North RL Azm Dip Depth From To Length Au

(mE) (mN) (m) (deg) (deg) (m) (m) (m) (m) g/t OWX001 212107 7573500 396 150 ‐60 102 0 2 2 0.88

68 74 6 1.78 79 86 7 5.39 Incl. 83 84 1 32 96 101 5 1.89 Incl. 99 100 1 5.26

OWX002 212139 7573541 395 150 ‐60 126 80 82 2 0.58 107 120 13 1.25

OWX003 212221 7573493 402 150 ‐60 72 2 7 5 3.87 Incl. 3 4 1 14

of 11

Nullagine Gold ProjectRC Drilling Programme Significant Intercepts

Hole ID GDA East


(mE) (mN) (m) (deg) (deg) (m) (m) (m) (m) g/t

9 12 3 0.75 OWX004 212246 7573544 394 150 ‐60 96 18 22 4 0.56

35 37 2 0.58 45 50 5 0.8 66 70 4 0.81 75 80 5 0.6

OWX005 212273 7573588 394 150 ‐60 54 NSA

OWX006 212312 7573500 398 150 ‐60 30 NSA

OWX007 212310 7573589 395 150 ‐60 30 NSA OWX008 212419 7573601 397 150 ‐60 54 35 36 1 1.65

38 40 2 0.71 45 47 2 1.45

OWX009 212429 7573586 398 150 ‐60 48 11 12 1 1.88 OWX010 212445 7573564 402 150 ‐60 60 1 3 2 0.66

12 14 2 2.17 23 28 6 2.66 Incl. 26 27 1 6.22 30 31 1 1.39

OWX011 212485 7573586 403 150 ‐60 60 NSA OWX012 212531 7573591 404 150 ‐60 66 0 19 19 1.46

Incl. 0 2 2 4.91 OWX013 212475 7573608 399 150 ‐60 48 3 5 2 1.71

23 25 2 0.58

OWX014 212464 7573626 398 150 ‐60 56 NSA OWX015 212522 7573607 401 150 ‐60 60 0 1 1 1.57

44 47 3 0.54 54 60 6 0.83

OWX016 212513 7573634 400 150 ‐60 42 10 14 4 0.62 26 27 1 1.77 37 39 2 1.32 41 42 1 2.61

OWX017 212573 7573595 400 150 ‐60 60 1 5 4 1.12 10 11 1 1.84

OWX018 212566 7573612 399 150 ‐60 48 1 4 3 0.98 28 34 6 1.35 37 40 3 1.33

OWX019 212554 7573631 397 150 ‐60 42 9 10 1 2.53 32 33 1 1.57

OWX020 212613 7573596 400 150 ‐60 60 NSA OWX021 212602 7573618 398 150 ‐60 54 0 9 9 2.04

16 33 17 3.72 Incl. 17 18 1 44 38 40 2 1.59

of 11

Nullagine Gold Project RC Drilling Programme Significant Intercepts

Hole ID GDA East


(mE) (mN) (m) (deg) (deg) (m) (m) (m) (m) g/t OWX022 212596 7573630 398 150 ‐60 60 29 33 4 0.69

42 44 2 2.81 49 53 4 1.14 56 57 1 2.36

Notes

1. Cut offs for reported results are: minimum 2 metres at ≥0.5 g/t Au, or 1 metre ≥ 1.0 g/t Au. 2. All holes drilled with Reverse Circulation with face sampling hammer. 3. Easting and Northing is based on the GDA 94 datum. 4. Collar co‐ordinates are accurate to ≤5 metres (multipoint averages with handheld GPS),

or licensed surveyor (accurate to ≤0.1 metres but rounded in tables; 5. Azimuths are expressed as magnetic (true north vs. magnetic <1.5 degrees). 6. Intervals are expressed as metres down hole and are not true width 7. Assay method is 40g fire assay, AAS finish. 8. NSA – No Significant Assays

Shearers Otways ASX release Clarification No letter · Page 5 of 11 Figure 1: Nullagine Location...

Documents

Transcript of Shearers Otways ASX release Clarification No letter · Page 5 of 11 Figure 1: Nullagine Location...