Shree Minerals releases Activity report for June quarter, Enters into Arunta JV, Applies for new tenements

Summary

• Shree enters into Arunta JV to explore Box Hole, Edwards Creek and Bruce Gold and base metals projects
• Applies for new exploration licence applications at Dundas and Ulysses South Projects
• Seeks to finalise DPEMP with Tasmania EPA by the end of 2020, a decision on Nelson Bay commencement in 2021

Diversified and experienced explorer and miner Shree Minerals Ltd. (ASX:SHH) released the activity report for the June quarter emphasizing on securing new gold and base metals exploration projects as well as inched towards the resumption of mining operations at the flagship Nelson Bay River Iron Project.

Arunta Joint Venture: Shree’s new Gold and Base metals Project

Shree Minerals announced entering into a farm-in and JV agreement in June to explore the gold and base metals tenements at the Territory Lithium Pty Limited’s (TLPL) Box Hole, Edwards Creek and Bruce Gold Projects in the Northern Territory. Arunta Joint Venture has popularly known the Joint venture between the Lithium and diversified explorer counterparts.

Arunta Joint Venture projects in the prolific regional setting source: Shree Minerals

The Arunta JV holds jurisdictions across 3 wholly owned TLPL’s tenements namely EL 31225, EL32419 and EL32420, in the highly prospective Arunta region.

As per the terms and conditions of the Joint Venture partnership-

1. Shree would be entitled to a 50% stake in the JV upon the total expenditure of $50,000.
2. Further on following the equal partnership stage, the two partners would be required to make contributions on pro-rata basis or else non-contributing partner faces dilution of its equity.
3. In the case of sole funding, Shree would attain a 90% stake on the total expenditure of $450,000.
4. The remaining stake if 10% or lower, will be automatically swapped against a 1% NSR Royalty.
5. Shree will be managing the JV during the earn-in stage and when it controls the majority stake.

Edwards Creek Project – The historical exploration showcased similarities of the Cu-Au mineralisation with the Johnnies Creek copper-gold project and the Jervois Copper Project. The deposit type is interpreted to be metamorphosed volcanic massive sulphide.

Historical diamond drill holes intersected with the shallow mineralisation resulting in-

4.5 meters with 2.25% Cu, 0.11% Pb, 1.54% Zn, 0.14 g/t Au, 47.45 meters downhole

Including 0.72 meters with 7.11% Cu, 1.9% Zn, 0.24 g/t Au in hole DD80EC02.

Shree believes that the anomaly source has not been effectively interpreted. Further, Shree plans to reassess historical exploration data and carry out reconnaissance work and sampling program.

Box Hole Project – The project hosted historical non-mechanised galena mining in the 1960s with almost 15 tonnes of galena being mined along with lead, Silver and Bismuth to be processed at the Broken Hill Smelter.

The IP, gravity, geochemical surveys and a shallow drilling program was conducted by Uramet Minerals in 2007-09 resulting in intersections of-

12 meters with a grade of 2.8% Zn, 0.67% Pb, 17 meters downhole in HDB045 Including 1 meter with 14.7% Zn, 0.3% Pb from 24 meters.

The processing and modelling of the IP and gravity data is planned to be utilised to identify priority target areas. Upon the selection of priority targets, a dense soil sampling program is anticipated on the coincident gravity, magnetic and geochemical anomalies.

Bruce Gold-Copper Project – Shree has already identified additional quartz veins across the project area from the interpretation of the regional aerial imagery. A field reconnaissance program, an Ultra-fine soil sampling or an auger or RAB drilling program may be scheduled to test the geochemical samples within the Bruce project area.

New Exploration Licence Applications Lodged at the Dundas project

Shree lodged 2 exploration license applications namely, E63/2046 and E63/2048 or Dundas project, in Western Australia. The tenement has been subjected to minimal expiration activities mostly due to the covering of a 5-10-meters blanket of transported cover over the surface.

Drilling intersections at the exploration licence applications Source: Shree Minerals

Several historical exploration initiations include AngloGold Ashanti’s (ASX:AGG) 1 kilometer space auger drilling program and a concentrated RAB/RC drilling program by Pan Australian Resources in the 1990s identifying gold mineralisation within mafic deposits at E63/2046. Here are a few intersections-

• T4RC032 2m @ 3.5g/t Au from 23m
• T4RC042 1m @ 2.1g/t Au from 87m
• T4RC0018 1m @ 1.2g/t Au from 53m

New prospective exploration ground in the neighbourhood of Golden Chimney

The Ulysses South Project is located almost 6 kilometres north of the Shree’s Golden Chimney exploration licence (E40/378). The exploration licence applications (E40/384) was historically explored by Money Mining (1992-1996), Asarco Pty Ltd (1984-1988), and Consolidated Gold Operations (1995-1996).

Aberfoyle during the 1995-96 period conducted an aeromagnetic interpretation, soil and vacuum drilling and RAB and RC drilling at the Ulysses South Project. The RAB hole resulted in intersections with gold mineralisation including –

• ROCW0385: 1m with 0.31g/t Au from 42m

1m with 0.14g/t Au from 45m

• ROCW0387: 4m with 0.18g/t Au from 30m

Shree plans a reconnaissance air core drilling close to the historical drill holes upon the granting of the tenement. Further anomalous drilling intersections are planned to be tested during the successive RC drilling programs.

Golden Chimney Project – The Golden Chimney project is located in the neighbourhood of the world class Sons of Gwalia Gold mine which is located on the geological terrain which holds over 1.9 million ounces of gold in mineral reserves with historical gold production of over 4 million ounces.

While the pandemic impacted site exploration activities at the Golden Chimney, significant progress was achieved on the interpretation of the geology and the selection of the priority targets.

Junior Minerals Incentive Program awards $600,000 exploration credits

Shree succeeded in the Junior Minerals Exploration Incentive program and has been allocated exploration credits of $600,000 for the fiscal year 2021. The exploration credits can be used for eligible exploration activities or can be transferred to eligible investors who are a resident of Australia and can seek a refund tax offset. Eligible investors are any investors who participated in the fundraisings through subscribing of ordinary shares of Shree Minerals. In the case of the investor is a corporate tax entity, additional franking credits can be issued. Further, the distribution of exploration credits must be done in the proportion of the exploration investment.

Nelson Bay River Iron Project approaching Resumption of Mining Activities

The Nelson Bay River Iron ore mining operations are located in north-western Tasmania. Shree pioneered the concept of an iron ore DSO in the region and produced the direct shipping Iron Ore (Fines & Lump) products before placing the operations on hold and maintenance in June 2014 due to low iron ore price environment.

Proposed Development of DSO operations source: Shree Minerals

With the strengthening of the iron ore prices, Shree seeks to resume the mining operations and seeks an environmental permit from the Tasmanian EPA. The industry seeks the NBR product due to the low content of impurities such as alumina at only 1.3%.

The activities during the June quarter were impacted by the pandemic, Shree plans to finalise the DPEMP in coordination with the EPA to advance to further permitting stages. The tentative finalisation of the DPEMP is anticipated by the end of the year, which will put Shree in a position to take the final decision on the resumption in 2021.

Shree closed at $0.006 a share, with a market capitalisation of $3.65 million on 4 August 2020.

All financial information pertains to Australian currency unless stated otherwise.