Bulletin Resources Limited: Acquisition of Gold Project Queensland, Australia

(firmenpresse) - Acquisition of Gold Project Queensland, Australia

Highlights

- Bulletin to acquire an 80% interest in the Hodgkinson Basin Gold Project consisting of 11 mining and 19 exploration licences in North Queensland, Australia
- The project contains a gold resource of 618,000 oz (2004 JORC compliant) covering an extensive area of ~784km2
- Project located in a known gold district with nearby operating and historical mines providing access to infrastructure and facilities
- A small accommodation camp with associated equipment and fully equipped office in nearby Cairns included
- Deal presents itself to be an outstanding opportunity to acquire a large quality brownfields exploration play with significant potential for further exploration and development
- Acquisition is in staged payments over 30 months allowing funding through existing cash reserves
- Work will commence as soon as possible with the initial focus on upgrading the resource to JORC 2012

Bulletin Resources Limited (Bulletin, BNR) is pleased to announce that it has entered into a Sale and Purchase Agreement (SPA) with unlisted public company, Territory Minerals Limited (TML) to acquire an 80% direct interest in the Hodgkinson Basin Gold Project (HGBP) in north Queensland.

The acquisition is subject to due diligence and shareholder approval, a date for which will be set in due course.

The HGBP comprises approximately 784km2 of ground including 19 Exploration Permit for Minerals (EPM) tenements and 11 granted or pending Mining Leases. The tenements host a historical JORC 2004 Mineral Resource estimate of approximately 618,000 oz gold and 11,000 tonne of antimony. Bulletin believes that significant exploration and development potential exists within the project ground.

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Figure 1: Location map of JV showing tenements and project areas

The acquisition includes a small 6 person camp complete with power generators and messing facilities as well as an equipped office in Cairns which has been used as TMLs offsite base of operations.

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Figure 2: Small accommodation camp part of acquisition

Bulletins Chairman, Mr Paul Poli said It has taken us a fair while to find a project we thought was worthwhile, after the sale of our interest in the Nicolsons gold project and the fantastic subsequent return of capital distribution to shareholders. We have reviewed many projects, and we believe that the Hodgkinson Basin gold project including the interesting and potentially valuable antimony resource offers Bulletin an opportunity to develop significant shareholder value over time. This project provides the opportunity to build on already known gold and antimony mineralisation within the tenements, of which some are granted mining licences. As a more advanced exploration project with a wealth of data, there are already a significant number of areas flagged for further exploration and development and I believe, in time, this could become a high value mining enterprise.

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Figure 3: Remains of former treatment plant on site
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Figure 4: Panorama of East Ridge looking south to Retina pit
Acquisition Terms

Bulletin has entered into SPA, Joint Venture, Security Deed and Royalty agreements with TML to acquire an 80% direct interest in the HGBP tenements by paying TML $1.65M to acquire an 80% direct equity interest on the following terms:

1. A non-refundable deposit of $50,000 (paid)
2. A payment of $350,000 upon completion of 21 day due diligence period including receipt of Bulletin shareholder approval and completing all other conditions precedent (Preliminary Completion date)
3. A payment of $500,000 twelve (12) months after Preliminary Completion
4. A payment of $500,000 twenty four (24) months after Preliminary Completion
5. A payment of $250,000 thirty (30) months after Preliminary Completion.
6. There is a further payment of $500,000 payable to TML 90 days after first production from the project.

In addition to the above cash payments TML will be free-carried on the project until Bulletin has spent $7M on the project. The $7M can be spent on exploration, development and production expenditure as applicable and has no set timeframe to occur.

Upon Bulletin meeting the expenditure requirements, TML must either contribute its share of ongoing expenditure (20%) or dilute to a net smelter royalty (NSR) of 1.125% on all gold produced and any other metals. Should TML dilute to the NSR, Bulletin will then own a 100% interest in the project.

Importantly, Bulletin has the right to withdraw from the project at any time prior to making all the above payments (other than the production payment) with no ongoing liability to TML. Bulletin only earns its 80% direct interest upon completion of the payments to the total of $1.65M.

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Figure 5: Old Sleeping Giant, one of many former small scale pits on the tenements
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Figure 6: East Leadingham open pit

Project Summary

The project consists of approximately 784km2 of ground in the Hodgkinson Basin in Far North Queensland, approximately 60 - 150km inland from Cairns). The tenements are considered highly prospective for gold and antimony and include a JORC 2004 resource estimate of 11.4Mt at 1.7g/t for 619,000 oz gold and 11,000t antimony within four main project areas named Tregoora, Northcote, Atric and Reedy-Hurricane.
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Figure 7: Northcote Project Area

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Figure 8: Tregoora, Atric and Reedy Project Areas

JORC 2004 Mineral Resource

The Hodgkinson Basin Gold Project hosts a historical JORC 2004 Mineral Resource estimate of approximately 618,000 oz gold and 11,000 tonnes of antinomy. The Mineral Resource estimate was publically reported to the ASX by a former owner, Republic Gold Limited (ASX: RAU), on 30 October 2009 on an equity share basis. Table 1 below reports the Mineral Resource estimate on the RAU equity share basis. The HGBP tenement package is held 100% by TML and Table 2 reports the RAU Mineral Resource estimate on a 100% equity share basis.


Gold Measured Indicated Inferred Total
RAU equity TonnesAu TonnesAu Tonnes Au Tonnes Au Gold
share ('000 ('000 ('000) ('000) Oz ('0
basis ) () ( ( (00)
g/t) g/t) g/t) g/t)

Northcote1 1,125 2.2 1,722 1.6 908 1.6 3,755 1.8 217
Tregoora 11 2.1 2,301 1.6 2,160 1.5 4,472 1.6 229
Atric1 890 1.9 46 1.7 936 1.9 57
Reedy1 Hurric 797 1.3 797 1.3 33
ane

Total 1,136 2.2 4,913 1.7 3,911 1.5 9,960 1.7 536

Antimony Measured Indicated Inferred Total
RAU equity TonnesSb TonnesSb Tonnes Sb Tonnes Sb Sb
share ('000 ('000 ('000) ('000) Tonne
basis ) ) s
(%) (%) (%) (%)

Northcote1 1,295 0.3 1,056 0.2 635 0.3 2,985 0.3 8,000
Table 1: RAU Equity Share Mineral Resource estimate as
reported 30 October
2009

Note 1: RAU equity share of Northcote Project is 75% and RAU
equity share of Atric and Reedy Project is
90%


Gold Measured Indicated Inferred Total
100% share TonnesAu TonnesAu Tonnes Au Tonnes Au Gold
basis ('000 ('000 ('000) ('000) Oz ('0
) ) ( ( (00)
(g g/t) g/t) g/t)
/t)

Northcote 1,500 2.22,296 1.6 1,211 1.6 5,007 1.8 289
Tregoora 11 2.12,301 1.6 2,160 1.5 4,472 1.6 229
Atric 989 1.9 51 1.7 1,040 1.9 63
Reedy Hurrica 886 1.3 886 1.3 37
ne

Total 1,511 2.25,586 1.7 4,307 1.5 11,404 1.7 618

Antimony Measured Indicated Inferred Total
100% share TonnesSb TonnesSb Tonnes Sb Tonnes Sb Sb
basis ('000 ('000 ('000) ('000) Tonne
) ) s
(%) (%) (%)
(%)

Northcote 1,727 0.31,408 0.2 847 0.3 3,980 0.3 11,000
Table 2: RAU Mineral Resource estimate as reported 30 October 2009 presented on a 100% share basis

The RAU Mineral Resource estimate was reported under JORC Code 2004 and may not conform to the requirements of the JORC Code 2012. Modifying factors used in the Mineral Resource estimate are presented in Table 3. The RAU Mineral Resource estimate is based on lower cut-off grades of 0.5 g/t Au for oxide and transitional material and 1 g/t Au for fresh (sulphide) material. Bulletin believes these lower cut-off grades may be too low for practical economic consideration and work to upgrade the Mineral Resource estimate to JORC Code 2012 will include a review of these economic considerations in determining an appropriate lower cut-off grade. Other modifying factors used in the RAU Mineral Estimate are yet to be suitably examined and a review of these factors will also form part of works towards a JORC Code 2012 Mineral Resource estimate. Bulletin intends to upgrade the Mineral Resource estimate to JORC Code 2012 as soon as reasonably practicable. Work will include drilling the historical resources using Bulletin funds.

LocatioGrade SectioCut-offCut-ofTop DensitDensity Densit
n Interpolan Grade f cut y Transity
tion Spaci Au Grade Oxideional Sulph
Method ng (g/t) Au Au ide
metre (g/t) (g/t
s )

Oxi Su
de & lphide
Transi
tion

NorthcoBlock 25 0.5 1.0 0 - 2.3 2.65 2.7
te Model 20.0
OK

TregoorBlock 25 - 0.5 1.0 0 - 2.3 2.45 2.6
a Model 50 6.0
OK

Atric Block 25 - 0.5 2.5 2.5
Model
ID2
Table 3: RAU Mineral Resource estimate modifying factors as reported 30 October 2009

Cautionary Statement

The Mineral Resource estimate was originally publically reported to the ASX by Republic Gold Limited (ASX: RAU) on 30 October 2009 on an equity share basis. Mineral Resources are not reported in accordance with the JORC Code 2012. A Competent Person has not done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012. It is possible that following evaluation and/or further exploration work the currently reported estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2102. Excepting the lower cut-off grade used in the Mineral Resource estimate, as discussed elsewhere in this document, nothing has come to the attention of BNR that causes it to question the accuracy or reliability of the RAU estimates but BNR has not independently validated the RAU estimates and therefore is not to be regarded as reporting, adopting or endorsing those estimates.

Geology

The metasedimentary Hodgkinson Province forms the northern part of the Tasman Fold Belt.

The Hodgkinson Formation is dominated by laterally discontinuous arenites, siltstones and shales with minor conglomerate, chert, basalt and limestone units. The sedimentary structures and bedding features are diagnostic of turbidity current deposits in a deep water, submarine fan system. The geological age of the formation is Late Silurian to Late Devonian. The formation has been subjected to a complex brittle and ductile structural history in the Late Devonian to Early Permian. At least four deformation phases have been recognised, resulting in a progressive sequence of overprinting structures ranging from early isoclinal folds and brittle ductile mylonite zones, to later more open steeply plunging folds and reverse faults.

The Hodgkinson is host to widespread mineralisation with several major centres of past production, such as the Herberton tin-field and the Palmer and Hodgkinson gold-fields. Tungsten is widespread, mainly as wolfram but also as scheelite in association with gold quartz veins. Antimony, as stibnite is a frequent minor associate of gold. Base metals have been found in sub-volcanic settings, such as at the OK mine. Despite total regional production of alluvial gold amounting to some 1-2 million oz, there is a distinct lack of major hard rock gold occurrences in the region.

Gold generally occurs as epigenetic gold-quartz veins in the Hodgkinson and Palmer River Goldfields. The gold-quartz vein deposits are generally hosted within small fissures or larger reverse faults, as laminated veins, stockworks or breccia lodes. The gold is often associated with some pyrite and arsenopyrite and at times galena and sphalerite, chalcopyrite, or stibnite which may occur as late overprinting veins.

Tenements

The tenement area totals approximately 784km2. There are Exploration Permits (EPMs) of which 2 are pending renewal and 11 Mining Leases of which 2 are granted, 2 are pending renewal and 7 are in application. A list of tenements is provided in Table 4.
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Table 4: List of Tenements
Historical Mining

The central part of the Hodgkinson Basin, in which the Tregoora Project area is situated, has a history of mineral production extending back to the Palmer River gold rush days of 1873. Since that time gold, tungsten, tin, copper and antimony have all been produced in the region.

Total output of gold from the Palmer River catchment to the north of Tregoora was recorded as 1.335 million ounces. More than 90% of this was from alluvial sources and approximately 10% was from hard rock mining of auriferous quartz reefs at Maytown, some 60 kilometres north-north-west of the project area. Conversely, some 90% of the 300,000 ounces gold production from the Hodgkinson field to the south in the Northcote area has been from hard rock sources.

The Big A antimony mine, centrally located within the area and at the now Retina Mine, produced an unknown quantity of antimony from workings dating back as far as the 1880s. The red brick antimony smelter chimney and other remnants also attest to the areas history as a major gold and antimony producer.

More recently, Solomon Mines operated the Tregoora area in the 1980 and 90s with production reported to be less than 20,000 oz gold through the Tregoora plant and heap leach from the Black Knight, Sleeping Giant, Retina and Rainbird deposits.

A 100ktpa CIP plan was established at Minnie Moxham (Northcote area) in the late 1980s and produced approx. 3,500oz Au. Nittoc Mining Corporation used the plant to treat oxide dirt from Northcote during 1991-2 to produce 78,246t at 5.2g/t Au for 12,000oz. The plant no longer exists and the area has been rehabilitated.

Historical Exploration

Historical exploration has been completed by BHP, Placer, Western Mining Corporation and several others. Republic Gold Limited floated on the ASX in 2003 and completed approximately 16,000m of drilling to establish their resource estimate in 2009 before turning their attention to their Bolivian asset. TML has completed limited exploration since acquiring the tenements in 2012 and exploration work largely derives from the earlier explorers.

Drilling is largely limited to known resource areas and is generally shallow at less than 60m depth as previous explorers targeted oxide material. Only 6% of holes were drilled at depths greater than 100m (Figure 9). This lack of deeper drilling presents a significant opportunity for exploration around known resources.

More regional exploration appears limited and focused on extensions of known resources. Identification of structural features (typically the host to gold deposits in this area) using high resolution magnetics has yet to be completed and this presents an excellent opportunity to explore for additional target areas.

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Figure 9: Number of holes drilled sorted by drill depth showing the lack of deeper drilling

Significant Other Mining Operations in Area
- Mungana Au Cu mine (Actus Resources): 0.7 Mtpa plant with a fine grind circuit and Cu float
- Mt Garnet Cu mine (Consolidated Tin Mines Ltd): concentrate trucked to Townsville
- Mount Carbine Tungsten (Speciality Metals): Feasibility studies


For further information, please contact:
Paul Poli, Chairman-----
Phone: +61 8 9230 3585

Chairman
Paul Poli

Non- Executive Directors
Frank Sibbel
Robert Martin

Company Secretary
Andrew Chapman

Shares on Issue
179.29 million shares
15.5 million options

Top Shareholders %
Matsa Resources Ltd 26.8
Goldfire Enterprises 22.2

Market Capitalisation
$6.45 million (at) 3.6 cents


Bulletin Resources Limited
Suite 11, 139 Newcastle Street
Perth, WA 6000
PO Box 376 Northbridge WA 6865
phone (08) 9230 3585
fax (08) 9227 0370
www.bulletinresources.com


Competent Persons Statement

The Mineral Resource and exploration information in this report is based on information compiled by Mark Csar, who is a Fellow of The AusIMM. The Mineral Resource and exploration information in this report is an accurate representation of the available data and studies. Mark Csar is a consultant to Bulletin Resources Limited and is a full-time employee of Matsa Resources Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking 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. Mark Csar consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Datum: 03.08.2018 - 06:59 Uhr
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