REG - Artemis Resources Ld - Greater Carlow Exploration Update

Artemis ResourcesAnnouncement

09/05/2023 07:15

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RNS Number : 7217Y  Artemis Resources Limited  09 May 2023

Artemis Resources Limited

 

("Artemis" or the "Company")

 

(ASX/AIM: ARV, FRA: ATY, US: ARTTF)

 

Greater Carlow Exploration Update and

JORC Exploration Target for the Carlow Castle Deposit

 

Highlights:

 

Greater Carlow Exploration Update

·    Rapid assessment program to be undertaken to define new
mineralisation around the 704,000 oz Au Eq. Carlow Castle Mineral Resource
estimate (refer ASX release of 13 October 2022).

·    Priority areas include Europa gravity anomaly, Titan target and
Carlow Castle extensions.

·    Moving Loop Electromagnetic survey (MLTEM) contractor engaged to
complete surveys over Europa, Titan, and Carlow Castle.

·    Mapping and rock chip sampling planning underway for Titan gold
target.

 

JORC Exploration Target for the Carlow Castle Deposit

·    An Exploration Target reported in accordance with the JORC Code, 2012
around the 704,000 oz Au Eq. 2022 Mineral Resource has been compiled for the
Carlow Castle gold-copper-cobalt project.

o  The Exploration Target is reported as: 2.5 Mt to 5.0 Mt at 2.5 g/t Au Eq.
to 3.1 g/t Au Eq. for 200,000 oz Au Eq. to 500,000 oz Au Eq.

 

An Exploration Target as defined in the 2012 JORC Code is a conceptual
indication of tonnage and grade range of mineralisation, which is not
necessarily economic. These figures are not Mineral Resource or Ore Reserve
estimates. There is no guarantee that such tonnages or grades will be either
realised or economic, or that further study will result in the estimation of a
Mineral Resource.

 

Artemis Resources Ltd (ASX/AIM: ARV) is pleased to provide an exploration
update for the Greater Carlow project area, and the delivery of a JORC
Exploration Target for the Carlow Castle deposit. Artemis' 100% owned gold,
copper, and cobalt Carlow Castle project is situated in the premier mining
district of Western Australia's West Pilbara, 25 km from the regional city of
Karratha. With well serviced infrastructure on its doorstep including power,
roads and port access, the project is a well-serviced, undeveloped
polymetallic deposit with potential for resource development.

 

Technical Director, and interim CEO, Dr Simon Dominy commented "The Artemis
technical team have been working to prepare for an active and successful
exploration season around the Greater Carlow project area. The Company is
making a concerted effort to identify and assess new prospective targets as
part of its plan to add gold ounce equivalents to the project."

 

Greater Carlow Exploration

The July 2022 MLTEM survey was the first time a high-powered deep penetrating
EM survey had been completed within the Greater Carlow project and resulted in
the identification of a significant EM anomaly at Marillion. Encouraged by
this success Artemis, in conjunction with its geophysical consultants
(Southern Geoscience Consultants), has engaged a contractor to complete four
new MLTEM surveys over high priority exploration targets within the Greater
Carlow project area in search for additional sulphide hosted mineralisation.

 

A MLTEM survey will be conducted over Europa and Titan along with two surveys
around Carlow Castle to define new structures and/or extensions to the known
mineralisation (Figure 1).

Figure 1: Proposed 2023 MLTEM surveys against prospect locations and the 2022
MLTEM survey which identified Marillion.

 

The Europa target is located approximately 1.7 km south-west along strike of
the Carlow Castle deposit. It is situated within a structurally bound gravity
high on the southern side of the Regal Thrust within the prospective Roebourne
Complex. Its structural and gravity signature are of a similar nature to the
Carlow Castle deposit. With no surface exposure, MLTEM has been identified as
the preferred exploration technique in defining new conductors that may
represent sulphide mineralisation.

 

Following the success of the Ultrafine Fraction (UFF) soil program in defining
coincident gold and arsenic over the Titan target (refer ASX release
03/04/2023), the Company has also decided to complete a MLTEM program over the
anomalous zone to determine if any conductors can be identified at depth. The
MLTEM program will traverse over the anomalous skeletal soils to the north and
track over the covered basement to the south, in which modern alluvial
sediments cover the basement. Additionally, the program will cover a subtle
bulls-eye gravity anomaly immediately south of the main Titan soil anomaly
that also produced an elevated gold signal.

MLTEM will also be used to assist in defining new mineralisation and/or
extensions to the Carlow Castle mineralised system. Two surveys have been
planned around Carlow Castle to assist. The first survey, immediately to the
north, covers two north-west striking gossanous outcrops, one of which is
believed to be the structure that host the Crosscut mineralisation to the
south. This area was cleared as part of an archaeological and ethnographical
heritage survey in August 2022, and has an approved work plan lodged for both
RC and diamond drilling.

 

The second area for the MLTEM survey covers the western and southern sides of
Carlow Castle. With such a significant EM anomaly being identified at
Marillion, it is hoped an additional MLTEM anomaly can be defined immediately
west of Carlow Castle.

 

The Artemis geological team are also making final preparations for a mapping
and rock chipping program around the Titan gold target. The team will map and
sample a 3 km by 1.5 km area around Titan to better understand the geology and
structural controls of the Titan target. Currently only limited reconnaissance
has occurred, however highly altered and sheared rocks were identified. Field
work will commence in the coming days.

 

The Marillion target is a significant EM anomaly with conductance over
11,000S. It was originally identified in July 2022 with a MLTEM survey and
then reconfirmed with a Fixed Loop Electromagnetic survey (FLTEM) in October
2022. The anomaly is located 450 m east of the Carlow Castle MRE and has a
modelled strike length of 500 m to 600 m with a down dip extent of 250 m to
360 m (Figure 2). With a conductance greater than 11,000s Artemis technical
team believe Marillion is a target of exceptional potential. Depth to the top
of the anomaly is 350 m to 450 m and the anomaly dips at 40° to the
south-southwest.

 

Figure 2: 3D oblique view of the Carlow Castle MRE  and spatial location of
the Marillion 'plates'

 

Two drillholes have initially been planned to intercept the EM plate at a
depth of approx. 550 m and 600 m below surface via a combination of RC
pre-collars and diamond drillhole tails.

 

JORC Exploration Target for the Carlow Castle Deposit

 

Artemis is pleased to advise that it has calculated an Exploration Target at
Carlow Castle. The Exploration Target covers the Main, Quod Est, and Crosscut
zones of Carlow Castle (Table 1) and has been expressed as a range of gold
equivalent grades and tonnages. The potential for copper and cobalt, in
addition to gold, has been assessed. The Exploration Target is additional to
the 2022 MRE.

 

Table 1. Carlow Castle Exploration Target. The Exploration Target excludes the
2022 MRE. The metal equivalent relationship from the 2022 MRE is restated as
Note 1 below from the ASX release dated 13/10/22.

 Metric                  Low case           High case
 Tonnage range           2.5 Mt             5.0 Mt
 Grade range             2.5 g/t Au Eq.     3.1 g/t Au Eq.
 Contained Au eq. range  200,000 oz Au Eq.  500,000 oz Au Eq.

(1)Gold equivalent equations for the oxide, transition and fresh domains as
derived for October 2022 Resource Estimate:

 Oxide Au Eq. = Au(g/t) + Cu(%) x 0.86 + Co(%) x 2.31

 Transitional Au Eq. = Au(g/t) + Cu(%) x 0.81 + Co(%) x 2.17

 Fresh Au Eq. = Au(g/t) + Cu(%) x 1.31 + Co(%) x 3.96

 

An Exploration Target as defined in the 2012 JORC Code is a conceptual
indication of tonnage and grade range of mineralisation, which is not
necessarily economic. These figures are not Mineral Resource or Ore Reserve
estimates. There is no guarantee that such tonnages or grades will be either
realised or economic or that further study will result in the estimation of a
Mineral Resource. These figures are based on the gross continuity of
mineralisation and projection of <150 m into unexplored ground around the
2022 MRE. The Exploration Target has been prepared in accordance with the JORC
Code (2012).

 

Metallurgical factors supporting the Exploration Target

Preliminary metallurgical testwork was completed in 2019 at an independent
laboratory on two 100 kg drill core composites. The testwork demonstrated a
potential Carlow Castle process flowsheet utilising gravity and cyanide leach
for gold, and flotation to produce copper and cobalt concentrates. Some 48% of
the gold was recovered using gravity separation, with most of the balance
recoverable in sulphide concentrates as a by-product using standard flotation.
The total recovery of gold achieved was 94.8%. Quick floating copper minerals
produced a high-grade, premium copper concentrate of approximately 30% Cu.
Deleterious elements, including arsenic, could be managed with a light
concentrate polishing using regrind or blend control. Recoveries depended on
mineralogy, with 77% to 85% copper recoveries achieved. Unrecovered copper
minerals relate to non-floating silicates and/or secondary copper oxides.
Cobalt recoveries ranged from 73% to 79%. Saleable cobalt concentrate grades
ranged from 2.3% to 5.3% Co. Cobaltite (CoAsS) is the dominant cobalt bearing
mineral, and is therefore intrinsically linked to arsenic, affecting its sale
price. The gold equivalent equations are given in the Table 1 footnote.

 

For the metal equivalent calculations used in the 2022 MRE and this
Exploration Target, the metallurgical recoveries applied are given in Table 2.

 

Table 2. Metallurgical recoveries used in the metal equivalent calculations.

 Metal   Metallurgical recovery
         Oxide     Transitional  Fresh
 Gold    96%       93.5%         93%
 Copper  61%       56%           90.5%
 Cobalt  47%       43%           78%

 

Basis of the Carlow Castle Exploration Target

 

Carlow Castle mineralisation is confined to the chlorite-silica altered mafic
volcano-sedimentary rocks of the Ruth Well Formation. Primary sulphide
mineralisation is the most significant (70% of the 2022 MRE) and occurs as
relatively continuous vein-hosted breccias and sheared quartz-carbonate ±
sulphide veins. The deposit comprises fresh sulphide-dominated and
oxide-dominated (oxide, silicate, and carbonates) mineralisation. A transition
zone shows characteristics of both fresh and oxide mineralisation. The 2022
MRE area is open in a number of directions, as shown in Figure 3.

 

Figure 3. Oblique view of the 2022 MRE model showing potential continuations
of known mineralised zones.

 

The Exploration Target is located around the down-dip margins of the 2022 MRE
(Figure 4). Polygons were constructed using DATAMINE Studio RM Pro, based on
projections around the block model for the Main East and West, Crosscut and
Quod Est domains (Figure 4). Where necessary, parallel structures were
assessed separately with their own polygons (e.g. Main West South and Main
West North structures). The 150 m maximum projection distance was based on the
maximum geostatistical range identified by variography during the 2022 MRE.
For Crosscut and Quod Est, a more conservative maximum projection of 100 m was
applied. For all Main Zone domains, the maximum projection applied was 150 m.
In all domains, the existing drilling information was used to control the
actual projection distance.

 

Figure 4. Carlow Castle Exploration Target projection polygon (green) around
the Main Zone West and East.

 

The mineralisation width was assigned from the MRE wireframes that bound the
polygon. The high case uses the mean model width, and the low case uses 80%
(20% reduction) of the mean model width.

 

All volumes were modified for "geological continuity" using a percentage
factor, which averaged at 90% for the high case and 80% for the low case. This
attempts to allow for breaks in local geological continuity.

 

An additional "grade payability" factor was applied to allow for lower grade
material within the mineralised volume, which averaged 70% for the high case
and 50% for the low case.

 

The Exploration Target is dominantly located in fresh mineralisation, and a
bulk density of 2.9 t/m(3) was applied to both the high and low cases to
define mineralisation tonnages.

 

The high and low case tonnages have been calculated using the formula:

 

polygon area* x thickness* x geological continuity* x grade payability* x bulk
density

 

where the * factors are different between the high and low cases.

 

The grade was assigned at 3.1 g/t Au Eq. for the high case and 2.5 g/t Au Eq.
for the low case, based on the mean MRE model grades for the underground and
open pit scenarios in the 2022 MRE. Copper and cobalt grades were considered
in the assessment of the Au Eq. grade.

 

 

This announcement was approved for release by the Board.

 

For further information on the Company, please visit
www.artemisresources.com.au (http://www.artemisresources.com.au) or contact:

 Artemis Resources Limited

 Guy Robertson                                         via Camarco

 WH Ireland Limited (Nominated Adviser and Broker)
 Antonio Bossi / James Bavister (Corporate Finance)    Tel: +44 20 7220 1666

 Camarco (Financial PR)
 Gordon Poole / Emily Hall / Rebecca Waterworth        Email: artemis@camarco.co.uk (mailto:artemis@camarco.co.uk)

 

About Artemis Resources

 

Artemis Resources (ASX/AIM: ARV; FRA: ATY; US: ARTTF) is a Perth-based
exploration and development company, led by an experienced team that has a
singular focus on delivering shareholder value from its Pilbara projects - the
Greater Carlow project in the West Pilbara and the Paterson Central
exploration project in the East Pilbara.

 

 

Announcements Related to this Release.

 

3/04/2023              Ultrafine soil sampling program confirms
Titan gold prospect and defines elevated copper in Greater Carlow Project
Area.

14/11/2022            December 2022 Quarterly Activities Report.

14/22/2022            Greater Carlow regional growth plan - high
priority targets.

13/10/2022            High-grade gold-copper-cobalt Inferred
Mineral Resource lays foundation for a robust Greater Carlow project.

Competent Person's Statement

 

Exploration Results

The information in this report that relates to exploration results was
prepared by Mr Luke Meter, a Competent Person who is a member of the
Australasian Institute of Geoscientists (MAIG) and Australasian Institute of
Mining and Metallurgy (MAusIMM). Mr Meter is employed by Artemis Resources as
Exploration Manager. Mr Meter has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Mr Meter consents to the inclusion in
this report of the matters based on his information in the form and context in
which it appears.

 

The information in this report that relates to the Exploration Target was
prepared by Dr Simon Dominy, a Competent Person who is a Fellow of the
Australasian Institute of Geoscientists (FAIG RPGeo) and Australasian
Institute of Mining and Metallurgy (FAusIMM CPGeo), and Chartered Geologist
(FGS CGeol) of the Geological Society of London. Dr Dominy is employed by
Artemis Resources as Executive Technical Director and holds Options in the
Company. Dr Dominy has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Dr Dominy consents to the inclusion in
this report of the matters based on his information in the form and context in
which it appears.

 

The information in this report that relates to the Exploration Target was
prepared by Ms Janice Graham, a Competent Person who is a Member of both the
Australasian Institute of Geoscientists (MAIG) and Australasian Institute of
Mining and Metallurgy (MAusIMM). Ms Graham is employed by Snowden Optiro as a
Principal Consultant. Ms Graham has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves". Ms Graham consents to the inclusion in
this report of the matters based on his information in the form and context in
which it appears.

 

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