pdi-toro jv sharpens focus with major drilling program · pdi-toro jv sharpens focus with major...
TRANSCRIPT
16 January 2019
PDI-TORO JV SHARPENS FOCUS WITH MAJOR DRILLING
PROGRAM HIGHLIGHTS
• The Predictive/Toro Gold Joint Venture has focused its Cote D’Ivoire exploration activity on its
Boundiali and Ferkessedougou North Projects with Boundiali assessed as the most likely to advance
rapidly towards resource definition.
• 10,000m of RC and diamond drilling will commence at Boundiali in the March Quarter.
• At Ferkessedougou North, an IP survey identified a 1.5km long chargeable trend, correlating with
gold mineralisation, on which trenching is currently underway. Drilling is likely to begin later in the
field season.
• To facilitate progress at Boundiali and Ferkessedougou North, further work on non-core Joint
Venture properties will be limited and some ground may be surrendered, consistent with Predictive’s
business model.
• The Company has decided to reduce its equity in the Toro JV to 30% (from 35%) via non-
contribution of expenditure for the past 6 months. Through this decision, receipt of cash from the
Bobosso transaction along with careful control of exploration expenditure in Guinea and Mali, the
Company now holds more cash (A$1.5M) than it had at the end of the September Quarter.
Predictive Discovery Limited (“Predictive” or “Company”) is pleased to provide an update on the
Predictive/Toro Gold Joint Venture exploration program in Cote D’Ivoire. In the 2019 field season, the Joint
Venture will focus exploration activities on the Boundiali and Ferkessedougou North Projects.
Approximately 10,000 metres of Reverse Circulation (RC) and diamond drilling is programmed to begin in
the March Quarter with further drilling expected later in the field season.
“At our most recent JV meeting, it was agreed that Boundiali and Ferkessedougou North represent the best
opportunities for making a multi-million-ounce discovery. An initial 10,000m drill program is planned to
target both the 6km-long Nyangboue gold-in-soil anomaly (on Boundiali) and the 14km-long Boundiali
North soil anomaly. With excellent results so far including 30m at 8.3g/t Au and 20m at 10.5g/t Au1 and
only 2km of the 20km of gold-in-soil anomalies drill tested, Boundiali remains underexplored and offers a
strong opportunity to expand the known gold mineralised zones in 2019. Another key target is the recent
gold discovery at Ferkessedougou North, which is currently being tested by trenching and likely to be
followed up by drilling later in the field season.
Our decision to reduce equity in the Toro JV balanced retention of cash reserves in the light of the current
unfavourable equity market against maximising our JV share. We believe that this decision is in the best
interest of shareholders by minimising the need for a dilutive capital raising while holding our JV equity at
our target level of 30%” - said Paul Roberts, Managing Director.
1ASX Release - 30m at 8.3 g/t Au from Boundiali, Cote D’Ivoire
http://www.investi.com.au/api/announcements/pdi/9d7ee0bf-2a8.pdf
Page 2 of 11
BOUNDIALI PROJECT
The Boundiali and Boundiali North permits represent the highest-priority exploration targets for the 2019
field season with 10,000m of initial drilling planned on both permits including reconnaissance RC drilling
to test the stronger Boundiali North soil anomalies.
At Boundiali North, drilling will focus on the recently discovered 14km-long gold anomalous zone (Figure
1) with results from the recent soil sampling programs2 increasing the prospects for a large-scale gold
discovery with several large and coherent high-grade anomalies including:
• Northern Zone: 1.5km long, 900m wide, peak values of 707ppb and 579ppb Au
• Central zone: 2.7km long, with peak values of 317ppb, 414ppb
Figure 1 - Boundiali and Boundiali North highlighting large gold soil anomalies within 14km long zone in Boundiali
North (white outlines). The grey ellipse covers the 6km long Nyangboue anomaly.
2 ASX Announcement – BOUNDIALI NORTH - LARGE COHERENT GOLD SOIL ANOMALIES WITHIN 14KM LONG ZONE https://www.investi.com.au/api/announcements/pdi/303be473-e42.pdf
Page 3 of 11
At Boundialli, Infill drilling on the Nyangboue prospect (Figure 2) will build on the previous RC and
diamond drilling programs which identified a 1.2 km long gold mineralised zone3 with broad widths,
visible gold and high-grade results including:
• NDC007 - 30m at 8.3g/t Au from 39m, including 1.5m at 56.9g/t Au and 1.5m at 39.3g/t Au
• BRC003 - 28m at 4.0g/t Au from 3m, including 1m at 49.7g/t Au
• BRC004BIS (twin hole) - 20m at 10.45g/t Au from 38m including 1m at 145.5g/t Au
• BRC006 - 9m at 7.9 g/t Au from 99m including 1m at 44.7g/t Au
Figure 2 - Nyangboue Prospect RC and diamond drill results superimposed on soil geochemical map
Of the 6km long Nyangboue gold-in-soil anomalous zone, 4km remains untested by drilling.
Predictive obtained the Boundiali permit in January 2014 and the Boundiali North permit was granted in
April 2018. The Boundiali and Boundiali North permits are located within a very well mineralised
greenstone belt which contains the large operating Tongon and Syama gold mines and consists of granite,
metasediments (including conglomerates), mafic volcanics and intrusives.
3 ASX Announcement - Drilling Extends Boundiali Gold Mineralised Zone to at least 1.2km https://www.investi.com.au/api/announcements/pdi/c54f2535-1b4.pdf
Page 4 of 11
FERKESSEDOUGOU NORTH PROJECT
In 2016, soil sampling at Ferkessedougou North4 revealed a 17km long zone of gold-in-soil anomalies,
with only a small portion receiving drill testing. The widespread gold mineralisation is located in altered
sheared granite bodies, with one zone in the southern part of the zone in which gold mineralisation has
been drilled over more than 1 km of strike with the best intercept from hole FNRC016 with 25m at
3.06g/t Au from 64m5, including 4m at 13.78g/t Au, within an 80m wide zone of lower-grade gold
mineralisation.
A recently completed gradient array Induced Polarisation (IP) survey over the southern gold mineralised
zone (Figure 3) has demonstrated a clear spatial correlation between mineralisation identified in previous
drilling and a 1.5km long IP (chargeability) anomaly. The survey also identified other chargeability
anomalies indicating potential for more gold mineralisation to the east and west of the drilled zone.
More information about the IP survey is reported in the Appendix. Trenching is in progress on the new IP
anomalies with results to be assessed in combination with previous drill results to identify key targets for a
future drilling program.
Figure 3 – Southern Gold Prospect, Ferkessedougou North, showing previous drill results and IP (chargeability)
anomalies
4 ASX Announcement – 17km Long gold-anomalous soil trend on new Cote D’Ivoire permit https://www.investi.com.au/api/announcements/pdi/3477a0e2-45f.pdf 5 ASX Announcement – Assays Confirm and Expand New Gold Discovery in Cote D’Ivoire
http://www.investi.com.au/api/announcements/pdi/9bee2336-4da.pdf
Page 5 of 11
OTHER PROJECTS
Recent drill results at Kokoumbo have emphasised the complexity of the geology there. While drill assays
have demonstrated significant gold on both the Kokoumbo and Beriaboukro permits, further work is
needed to achieve the targeted one-milllion-ounce discovery that the Joint Venture partners require.
The Joint Venture will consider its options at Kokoumbo over the coming months, allowing work at
Boundiali and Ferkessedougou North to be accelerated.
TORO JOINT VENTURE UPDATE
Predictive has made the strategic decision not to contribute its 35% share of exploration expenditure for
the six months to December 2018 in order to restrict cash outflows at a time when raising capital based on
an acceptable share price is difficult. Consequently, the Company’s cash holdings at the end of December
2018 were A$1.5 million, $0.1 million more than the cash held at the end of the September Quarter.
Predictive’s equity in the JV has therefore been reduced from 35% to approximately 30%. A 30% stake
reflects the Company’s ideal equity structure and contribution at the lower equity will help with future calls
on Predictive’s cash position.
Joint Venture exploration work for the current field season will be very largely confined to the Boundiali
and Ferkessedougou North Projects. Some permits may be surrendered, allowing maximum focus on
Boundiali and Ferkessedougou North. This turnover of permits is entirely consistent with the prospect
generator model of and allows the Company to focus its expenditure only on the highly prospective
targets.
- END -
For further information please contact:
Paul Roberts Bruce Waddell
Managing Director Company Secretary
Tel: +61 402 857 249 Tel: +61 8 6143 1840
Email: [email protected] Email: [email protected]
APPENDIX – IP Survey Details
Section 1: Sampling Techniques and Data
Criteria
JORC Code
Explanation
Commentary
Sampling Technique Nature and quality of sampling
(eg cut channels, random chips,
or specific specialised industry
standard measurement tools
appropriate to the minerals
under investigation, such as
downhole gamma sondes, or
handheld XRF instruments, etc).
These examples should not be
taken as limiting the broad
Not applicable – this release refers to a ground geophysical survey.
Page 6 of 11
meaning of sampling Include
reference to measures taken to
ensure sample representivity
and the appropriate calibration
of any measurement tools or
systems used. Aspects of the
determination of mineralisation
that are Material to the Public
Report.
In cases where ‘industry
standard’ work has been done
this would be relatively simple
(eg ‘reverse circulation drilling
was used to obtain 1 m samples
from which 3 kg was pulverised
to produce a 30 g charge for fire
assay’). In other cases more
explanation may be required,
such as where there is coarse
gold that has inherent sampling
problems. Unusual commodities
or mineralisation types (eg
submarine nodules) may
warrant disclosure of detailed
information.
Drilling
Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).
Not applicable – this release refers to a ground geophysical survey.
Drill Sample Recovery
Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
Not applicable – this release refers to a ground geophysical survey.
Page 7 of 11
Logging
Whether core and chip samples have been geologically and geotechnical logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean/Trench, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
Not applicable – this release refers to a ground geophysical survey.
Sub-Sampling Technique and Sample Preparation
If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
Measures taken to ensure that the
sampling is representative of
the in situ material collected,
including for instance results
for field duplicate/second-half
sampling. Whether sample sizes
are appropriate to the grain size
of the material being sampled.
Not applicable – this release refers to a ground geophysical survey.
Quality of Assay Data and Laboratory Tests
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
For geophysical tools,
spectrometers, handheld XRF
instruments, etc, the
parameters used in determining
the analysis including
instrument make and model,
reading times, calibrations
factors applied and their
derivation, etc.
Nature of quality control
procedures adopted (eg
standards, blanks, duplicates,
external laboratory checks) and
whether acceptable levels of
accuracy (ie lack of bias) and
Not applicable – this release refers to a ground geophysical survey.
Page 8 of 11
precision have been
established.
Verification of Sampling and Assaying
The verification of significant intersections by either independent or alternative company personnel.
The use of twinned holes The verification of significant intersections by either independent or alternative company personnel. Discuss any adjustment to assay data
Not applicable – this release refers to a ground geophysical survey.
Location of Data points
Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid
system used Quality and
adequacy of topographic
control
GPS navigation was used to locate data points.
Grid details: WGS84 datum, Zone 30 North.
Data Spacing and Distribution
Data spacing for reporting of Exploration Results
Whether the data spacing and
distribution is sufficient to
establish the degree of
geological and grade continuity
appropriate for the Mineral
Resource and Ore Reserve
estimation procedure(s) and
classifications applied.
Whether sample compositing
has been applied
Gradient array IP station spacing was 100 x 25m. A subsequent
three line pole-dipole survey used a station spacing of 50m
(a=50m, n=10).
No information is reported that is relevant to a Mineral
Resource of Reserve estimation.
Orientation of Data in Relation to Geological Structure
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised
The gradient array and pole-dipole lines were orientated east-south-
east in order to image north-north-east trending structures
identified in geological mapping and an aeromagnetic survey.
Page 9 of 11
structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample Security
The measures taken to ensure sample security
Not applicable – this release refers to a ground geophysical
survey.
Audits or Reviews
The results of any audits or reviews of sampling techniques and data
No audits or reviews of sampling techniques and data have
been undertaken.
Section 2 Reporting of Exploration Results Mineral Tenement and Land Tenure Status
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
The Ferkessedougou North exploration permit was granted to
GIV Minerals SARL in 2015. Predictive Discovery Cote D’Ivoire
SARL may earn a 51% interest by spending US$1 million and 85%
by completing a DFS. Predictive Discovery Limited holds
approximately 30% of Predictive Discovery Cote D’Ivoire SARL.
Exploration Done by Other Parties
Acknowledgment and appraisal of exploration by other parties.
Information about previous exploration work has not been found.
Geology Deposit type, geological setting and style of mineralisation.
The geology of the Ferkessedougou North permit consists of
foliated metasediments, granite, granodiorite and lesser amounts
of probable mafic volcanics and mafic intrusives.
Drill Hole Information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
• easting and northing of the drill hole collar
• elevation or RL (Reduced
Level – elevation above
sea level in metres) of the
drill hole collar
• dip and azimuth of the hole
• down hole length and interception depth
• hole length
• If the exclusion of this information is justified on the basis that the information is not Material and
this exclusion does not detract from the understanding of the report, the Competent Person should clearly
Not applicable – this release refers to a ground geophysical
survey.
Page 10 of 11
explain why this is the case.
Data Aggregation Methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
The assumptions used for any
reporting of metal equivalent
values should be clearly stated.
Not applicable – this release refers to a ground geophysical survey.
Relationship
Between
Mineralisation
Widths and
Intercept Lengths
These relationships are
particularly important in the
reporting of Exploration Results
If the geometry of the
mineralisation with respect to
the drill hole angle is known,
its nature should be reported.
If it is not known and only the
down-hole lengths are
reported, there should be a
clear statement to this effect
(eg ‘down hole length, true
width not known’).
Not applicable – this release refers to a ground geophysical survey.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
An appropriate map is included – Figure 3.
Balanced Reporting Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
Not applicable – this release refers to a ground geophysical
survey.
Other Substantive Exploration Data
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
All relevant exploration data is either reported in this release or
has been reported previously and is referred to in the release.
Page 11 of 11
Further Work The nature and scale of planned further work (eg tests for lateral extensions or large scale step out drilling.
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Trenching to test IP targets generated by this survey is currently in
progress.