Shree releases Annual Report, expanding portfolio and commencing Nelson Bay

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Shree releases Annual Report, expanding portfolio and commencing Nelson Bay

 Shree releases Annual Report, expanding portfolio and commencing Nelson Bay

Summary

  • Arunta JV, highly underexplored with substantial shallow mineralisation potential
  • Shree’s acquired 2 exploration licence, consolidates with Golden Chimney
  • Nelson Bay River finalising DPEMP in the association of Tasmanian EPA, resumption of mining following granting of permits

Shree Minerals Ltd. (ASX:SHH), the experienced diversified explorer and miner, released the annual report for the fiscal year 2020 ending on 30 June 2020. The annual report discussed the growth opportunities pursued during the year and the addition of new critical minerals project to Shree’s arsenal.

Arunta Joint Venture: Gold and base metals Projects to lead the way

Shree Minerals in June announced entering into a farm-in and Arunta joint venture agreement with Territory Lithium Pty Limited to explore gold and base-metals tenements in the Northern Territory. The gold projects include Box Hole, Edwards Creek and Bruce prospects stretching across the tenements including EL 31225, EL32419 and EL32420.

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

Arunta Joint Venture and Minerals Project in Northern Territory

Historical drilling and assaying indicate the presence of substantial near surface mineralisation including:

  • Edwards Creek prospect: Intercept of 4.5 metres with a grade of 2.5% Copper, 0.67% Lead, 17 metres downhole.
  • Box Hole Project: Historic RAB drill recorded an intersection of 12 metres with a grade of 2.8% Zinc, 0.67% Lead including a 1 metre wide section with 14.7% Zinc and 0.3% Lead.
  • Bruce Gold-Copper Project: Rock chip sampling program tested the quartz veins at the project resulting in grades of 53 grams of Gold a tonne

New Exploration License Applications in the Western Australia

Shree minerals have lodged 2 exploration license applications namely E63/2046 and E63/2048 (Dundas project), almost 60 kilometres from Norseman in Western Australia

Secures highly prospective tenements for Gold in prolifically mineralised terrains Source: Shree Minerals

Must Read: Shree strengthening presence in Western Australia, Applies for new tenements

The Dundas project is highly underexplored with historical exploration programs restricted to the upper 5-10 metres thin blanket. AngloGold Ashanti Limited (ASX:AGG) conducted a 1 km spaced auger and Pan Australian Resources’ localised RAB/RC drilling program identifying substantial gold mineralisation hosted within the mafic rocks in E63/2046.

The drilling intersections include:

  • T4RC032: 2 metres with­­­ 3.5 g/t Au, 23 metres downhole
  • T4RC042: 1 metre with 2.1 g/t Au, 87 metres downhole
  • T4RC0018: 1 metre with 1.2 g/t Au, 53 metres downhole

New Exploration License Application in the Neighbourhood of Golden Chimney

Shree Minerals acquired the exploration license application (E40/384), only 6 kilometres from the Shree’s Golden Chimney project in the neighbourhood of the developing Ulysses Group of Gold Mines.

Aberfoyle conducted the most comprehensive exploration program within E40/384 from 1995-1996 including an aeromagnetic interpretation, a soil and vacuum drilling and RC/RAB drilling program.

Here are the individual gold intervals, such as:

  • ROCW0385: 1 metre with 0.31g/t Au, 42 metres downhole

1 metre with 0.14 g/t Au, 45 metres downhole

  • ROCW0387: 4 metres with 0.18g/t Au, 30 metres downhole

Consolidation of Gold Chimney Project with P40/1354, Drilling Campaign at E40/378

Upon granting of the prospecting licence P40/1354 with E40/378, Shree decided to consolidate the prospecting licence with the Gold Chimney project. The P40/1354 surrounds the historical gold workings, including the mining lease M40/09 (Lone Hand). The historical data reports processing of 358 kgs of ore with a grade of 2.08 g/t gold during 1983-84.

Further Shree recently concluded a RC drilling program at the Golden Chimney at the mineralisation in the south-west direction.

Drilling assay results at the Golden Chimney Source: Shree Minerals annual report -ASX update

The drilling assays indicate that the gold mineralisation is open along the strike to the south. Induced Polarization survey may be used at the Golden Chimney on the pyrite altered mafic structures prior to the drilling program.

Must Read: Shree Minerals Holds two aces, Nelson Bay Iron Ore Operations and Golden Chimney Gold Project

Exploration credits worth $600,000, Aimed to benefit Shree and its Investors

Shree recently succeeded to participate in the Junior Minerals Exploration Incentive and received an allocation worth $600,000 as of the exploration credits for the year 2021. The exploration tax credits can either be created by the company or can be distributed to eligible investors.

Resumption of Nelson Bay River Iron Ore Project

Shree Minerals owns 100% of the Nelson Bay River Project, which includes the Mining Lease 3M/2011, engaged in the mining of iron ore. Following the recent recovery in the iron ore prices, Shree plans to resume the mining operations and is currently seeking an environmental permit from the Tasmanian EPA.

Read Here: Bulls rain on Iron ore, Shree Minerals preps up for Nelson Bay

Shree plans to complete the existing Direct Shipping Ore (DSO) pit through mining, processing and shipping of hematite ore. The DSO product is a low impurity, including alumina (Al2O3) at only 1.3%.

Shree has already prepared the working draft of the DPEMP (Draft Development Proposal & Environment Management Plan) to conclude various technical studies and plans. SHH plans to finalise the DPEMP soon in close coordination with the Tasmanian EPA.

Shree Minerals closed $0.0060 a share on 17 August 2020, with a market capitalisation of $4.56 million.

All financial information pertains to Australian Currency unless stated otherwise.

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