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Shree Minerals (ASX:SHH) outlines growth opportunities across portfolio

Summary

  • Shree plans to re-commence the DSO iron ore operations at NBR and plans to be able to decide on the re-commencement of DSO project in 2021.
  • Gold project is also under focus as the explorer gears up for major footprint across prospective regions including Lachlan Fold Belt, Boulder Lefroy Fault Zone and WA goldfields
  • SHH had entered into a farm-in agreement to explore gold and base metals tenures at the Territory Lithium’s Box Hole, Edwards Creek and Bruce Gold Projects

Shree Minerals Ltd. (ASX:SHH) pushes forward towards the development of a robust and efficient Direct shipping ore (DSO) operations at the Nelson Bay River project in North-West Tasmania. The iron ore and gold explorer and developer has been advancing on the premium gold assets across the prolific jurisdictions across Australia.

Source: Shree Minerals Presentation 14 December 2020

NBR Re-commencement Program in the Strong Iron Ore Price Environment

Nelson Bay Iron River Project: Shree plans to re-commence the DSO iron ore operations at NBR following the temporary suspension of the mining operations in June 2014 due to weak iron ore price environment. The DSO project, while operational shipped 5 cargo batches of 58% Fe, high purity iron ore DSO product to China. The DSO project operated at an all-in cost of $72 a ton FOB Burnie Port.

SHH plans a systematic 2+ years of DSO operations and then switch to magnetite ore mining and processing operations producing 0.15mtpa 67-69% Fe concentrate over at least 7 years life of mine. SHH gears up for re-permitting of the mining operations and plans to be in a position to decide on the re-commencement of DSO project in 2021.

Read Here: Shree Minerals Ltd. (ASX:SHH) updates on Nelson Bay River Project

Lachlan Fold Belt Gold Projects

Source: Shree Minerals Presentation 14 December 2020

Rock Lodge Gold Project: Shree owns a 100% stake in the exploration tenement application (ELA6147) and encapsulates a folded sequence of Ordovician aged shales and siltstones and Gungoandra Siltstones. The historical assay results at the tenement include up to 5.36 g/t Au, 55.6 g/t Ag, 0.12% Bi, 0.8% Cu and 1.46% Zn.

The mineralisation is related to massive and disseminated pyrite, arsenopyrite, chalcopyrite sphalerite sulphides and quartz. The rock chip sampling program of outcropping quartz veins recorded gold grades up to 11.1 g/t Au. SHH is currently progressing on compiling historical exploration data.

Important Read: Shree Minerals Ltd. (ASX:SHH) gaining momentum across Lachlan Fold Belt

Turondale Gold Project: Shree holds highly prospective tenement sharing boundaries with Krakatoa Resources in the north and Alkane Resources in the east. The high-grade quartz reef at the tenement held by Krakatoa has registered rock chip assay grades up to 1535 g/t gold, which possible strike into Shree’s tenement.

The quartz reef structures are understood to strike southward and extend into SHH’s ELA6044. A reconnaissance geological mapping and geochemical sampling program is planned at the project.

The Turondale project includes areas with limited exploration. The project includes historical workings with high anomalous grades of gold, copper, silver, and lead. The stream sediment and soil values were recorded up to 2.55 g/t gold. A follow up geochemical sampling program has been planned.

Fraser Dundas Gold Project: Shree owns 100% interest in 2 highly prospective tenement exploration licence applications in the Albany Fraser Province. The tenement application is interpreted to overlap the southern extent of the renowned mineralised Boulder Lefroy Fault Zone (BLFZ) and the Zuleika Shear (ZS).

SHH considers the new tenements to be located within a major structural corridor which contains world class gold deposits. The company considers a very high exploration potential of the project on the back of the presence of mafic rocks and untested geochemical anomalies adjacent to the major mineralisation structures in the underexplored region.

Must Read: Shree Minerals’ (ASX:SHH) Fraser Dundas Gold Project Under Focus, Large anomalies identified

The tenement application ELA63/2048 remains untested, despite the presence of gold anomalies with lengths up to 6 kilometres. The historical exploration program on the tenement application ELA63/2046 includes a 1 km spaced auger traverse by AngloGold Ashanti Australia and a localised RAB/RC drilling program by Pan Australian Resources during the 1990s. The Pan Aust drilling program registered gold grades up to 3.5 g/t gold.

SHH plans to in-fill AngloGold’s soil sample traverses to identify and prioritise targets. The gold in soil anomaly will be further tested by RAB and RC drilling.

WA Gold projects

The company owns two prominent gold projects in the Leonora Geological Terrain, namely, Golden Chimney & Ulysses South. The projects share the geological terrain with the world class gold Sons of Gwalia Gold mine (Reserve 1.9 Moz Au at 7.5 g/t Au and past production of 4 Moz Au).

Source: Shree Minerals Presentation 14 December 2020

Golden Chimney: The gold project hosts gold mineralisation associated with sulphide (mainly pyrite) in a quartz gabbro/dolerite. The IP geophysical program will be utilised to locate the pyrite altered mafic sequence and identify targets. The rock chip samples resulted in gold grades up to 201 g/t gold. The sulphide nature of the mineralisation makes the IP geophysical survey technique to be effective in locating the pyrite altered mafic sequence and generate targets.

Ulysses South Project: The historical exploration in the area primarily includes the aeromagnetic interpretation, soil sampling RAB and RC drilling conducted during 1995 - 1996. The historical RAB drilling by Aberfoyle recorded gold intersections warranting follow up drilling. SHH plans a reconnaissance aircore drilling close to the historical holes.

Also Read: Shree Minerals (ASX:SHH) hits a major milestone at Ulysses South Project

Arunta JV in Northern Territory

SHH had entered into a farm-in and joint venture agreement to explore gold and base metals tenures at the Territory Lithium’s Box Hole, Edwards Creek and Bruce Gold Projects in the Northern Territory.

Source: Shree Minerals Presentation 14 December 2020

Edwards Creek: The outcropping gossan was discovered by CRA in 1980 and conducted a 2-hole diamond drilling program which recorded intercepts of 4.5 metre in length with grades of 2.5% Cu and 0.67% Pb, 17 metres downhole.  A step out RC drilling program is required along with the mineralised trend.

Bruce Gold prospect: Shree has already completed a rock chip sampling and an orientation soil sampling program and plans a field reconnaissance and sampling program on the regional veins to determine the nature of same gossanous formations.

Box Hole: The prospect is highly prospective for bulk tonnage lead-zinc deposits of the Mississippi Valley Type (MVT). The project includes the historical King’s Workings which produced 15 tonnes of galena at an average grade of 66% Pb, 58.5g/t Ag and 0.43% Bi during 1960s. The best intercepts recorded at the project was 12 metres long with a grade of 2.8% Zn and 0.67% Pb, 17 metres downhole.

SHH traded at $0.027 a share on 15 December 2020 with a market capitalisation of $18.61 million.

*All financial information pertains to Australian Dollars unless stated otherwise.

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