Jadar to Acquire Yanamina Gold Project and Vranje-South Lithium Update

(firmenpresse) -
Highlights

- Jadar to acquire the advanced Yanamina Gold Project located in the Ancash Province in Peru

- Yanamina is an outcropping epithermal gold resource with existing resource of +200,000 ozs gold

- The upfront purchase cost is minimal relative to the potential upside of the project


- Yanamina also provides significant exploration upside through potential depth and lateral extensions and a significant faulted extension target at depth.

- Jadar is in final preparations for maiden drill program at Vranje South Lithium Project in Serbia.

September 16, 2019 - Jadar Lithium Limited is poised to tap into the global gold market to further its Austrian and Serbian lithium projects on the back of record high gold prices and investment activity, with a strategic investment in the established Peruvian gold bearing region of the prolific Ancash Fault Zone. Non-executive Chairman, Mr Luke Martino commented:

The Yanamina Gold Project presents a rare opportunity in which such an advanced gold project with exploration upside and the potential for near term production can be acquired with minimal upfront cost.

The project will provide shareholders with a balanced diversification from Jadars advanced Vranje-South and Rekovac lithium projects in Serbia, as well as its lithium projects in Austria, and presents a cost effective exposure to gold in the current strong climate for that metal.

Jadar Lithium Limited (ASX; JDR) (Jadar or the Company) is pleased to advise that it has executed a term sheet for the purchase of the Yanamina Gold Project (Yanamina or the Project) located in the Ancash region of northern Peru.

Yanamina Gold Project Acquisition
The Yanamina Gold Project hosts an outcropping epithermal derived inferred and indicated gold resource of +200,000 ozs of gold with additional significant exploration potential.

The Project is being purchased from Canadian TSX listed company Wealth Minerals Limited (Wealth Minerals) for US$100,000 in cash, a 1.0% net smelter royalty (NSR) and the assumption of US$8 million in production linked milestone payments and additional NSRs of 3.0% (refer Appendix 1). The Company will undertake a capital placement of $380,000 at $0.009 to fund the acquisition, review the Projects data and prepare an economic study to determine work required to fast track the Project to production status. The capital placement will take place using the Companys Listing Rule 7.1 placement capacity.

The acquisition is subject to shareholder approval in accordance with Listing Rule 11.1.2 and will be put to shareholders at the Companys Annual General Meeting.

The project has effectively lay dormant since 2012 and presents Jadar with an advanced gold production opportunity to compliment the Companys high potential lithium projects located in Serbia and Austria.
https://www.irw-press.at/prcom/images/messages/2019/48839/2019-09-XX_JDR_ASX_Ann_Yanamina Gold Project (FINAL)_PRcom.001.jpeg

Figure 1: Yanamina Gold Project Location Plan

About the Yanamina Gold Project

Geology
The Yanamina Gold Project area lies within a regional northerly trending belt of complexly folded and intensely faulted, Late Mesozoic marine sediments, which have been intruded by Tertiary batholithic rocks of various compositions. The oldest rocks in the region are Cretaceous quartzites and shales.

The most important structure in the region is the Yungay Graben, which trends northerly across the region and has been traced along strike for almost 100 kilometres. The eastern edge of the Yungay Graben is defined by the Ancash Fault Zone which hosts the Yanamina Gold Project.

The intense structural deformation associated with the formation of the Yungay Graben and the Ancash Fault provided conduits for gold bearing hydrothermal solutions giving rise to a number of gold occurrences and deposits in the region.

The mineralisation and alteration within the Yanamina Gold Project is a reflection of a typical low sulphidation epithermal gold system.

Access
The Yanamina Gold Project is easily accessible by all-wheel drive vehicle and is located 16 kilometres east of the village of Caraz, which lies within the buffer zone around the Huascaran National Park. A small portion of the Project area covering approximately 28 hectares lies within the park boundary but does not impact the existing resource or any potential mining operation

Past Exploration
The Yanamina Gold Project has a history of artisanal mining dating back to the 1600s when Portuguese miners exploited small pockets of high grade gold within the current resource area. This mining was through small pits and no production records exist.

In 1994, the first modern recorded exploration was carried out on the Project by Arequipa Resources and this company completed over a two year period detailed geological mapping, surface sampling and 60 diamond drill holes totaling 2,179.18 metres.

In April 2006, ASX listed Latin Gold Limited (Latin Gold) through its wholly owned subsidiary Golden Eagle Resources Peru SAC purchased 100% of the Project and subsequently completed detailed mapping of the geology and alteration, channel sampling, limited adit sampling, digitizing of the historic and current data base and the drilling of an additional 25 diamond drill holes totaling 1,468 metres.

Latin Gold reported that the drilling confirmed the geology and the disseminated epithermal gold and silver mineralisation, which is locally exposed in outcrop. Latin Gold also reported that gold was intersected in the majority of the drill holes and demonstrated strong continuity along strike.
https://www.irw-press.at/prcom/images/messages/2019/48839/2019-09-XX_JDR_ASX_Ann_Yanamina Gold Project (FINAL)_PRcom.002.jpeg

Figure 2: Yanamina Gold Project showing drill pads and artisanal workings

Following the 2006 exploration program, Latin Gold commissioned two contemporaneous independent JORC compliant resource estimates for the project (Note: pre 2012 JORC) and through 2007 to 2010 undertook two pre-feasibility studies which also included various metallurgical studies, processing circuit design and financial analysis The results were reported by Latin Gold in June 2007 and March 2008.
(refer announcements https://www.asx.com.au/asxpdf/20070607/pdf/312v1tvmyxr5vr.pdf and https://www.asx.com.au/asxpdf/20080404/pdf/318dw35ybfgbgb.pdf).

Latin Gold reported that the mineralized envelope had not been closed in a north-west direction and recommended additional drilling to explore this potential extension and also the source porphyry at depth.

In addition the company highlighted the potential for a possible down faulted extension to the mineralized zone at the base of the hill under alluvial cover (see Figure 3). This was on the basis of field evidence that the current surface of the mineralized zone is a fault plane.

The drilling programme by Latin Gold also highlighted the possibility of an increased tonnage to the north-west of the resource where the boundary of the mineralised zone remains open. Unfortunately, as a result of the limited capability of the diamond rig employed for the programme, Latin Gold was unable to comprehensively test this potential extension, the porphyry source at depth or significant potential of a possible faulted extension to the outcropping mineralization situated at the base of the hill under alluvial cover.
https://www.irw-press.at/prcom/images/messages/2019/48839/2019-09-XX_JDR_ASX_Ann_Yanamina Gold Project (FINAL)_PRcom.003.jpeg

Figure 3: Yanamina Gold Project cross section showing mineralized envelope and faulted extension target

In 2011 Latin Gold sold the project to Coronet Metals Inc. (Coronet) a TSXV listed company. Coronet then undertook a complete review of the project which culminated in a NI43-101 compliant resource and preliminary economic assessment being completed. The NI43-101 document was disclosed on 28 February 2011 and is attached in Appendix 3.

The NI43-101 study by Coronet calculated indicated and inferred resources as 4,801,900 tonnes grading 1.34g/t using a 0.5g/t cut-off.

Cut-off Indicated Inferred Total
Grade

g/t Tonnes Au Tonnes Au g/t: Tonnes Au g/t
g/t:

0.5 1,566,91.65 3,235,001.19 4,801,901.34
00 0 0

The Company considers these historical estimates to be both material and relevant to the decision by the Company to acquire the Yanamina Project. There is a significant data base available over the Project from various companies dating from the initial diamond drilling carried out in 1994. This data base includes drilling and assay results, metallurgical testing, conceptual mine designs and costings and initial financial modelling. The NI43-101 report is based on this extensive data base and has synthesised this data into a comprehensive summary of the Project and its potential, including an estimate of available resources. The report was prepared on behalf of a publicly listed TSX-V company (Coronet Metals Inc.) by a reputable and experienced consulting group (Southampton Associates). Our Competent Person has reviewed the report and informed the Company that it was prepared in a competent and conservative manner. The resource as calculated pursuant to the NI43-101 report has been classified as Indicated and Inferred. These categories are comparable (see Cautionary Statement below) with the categories used by JORC Code 2012. It is the opinion of the Company that these estimates are reliable and represent the results of work done to high standards, using quality sampling, testing and geological and geostatistical modelling. The foreign estimates represent best practice work at the time.

The Yanamina resource is epithermal derived with the primary host being a Tertiary Monzonite (see figure 3). The mineralisation forms an outcropping blanket of around 30 metres in thickness within the upper part of the Monzonite.

All the drilling completed over Yanamina has been by HQ diamond drilling. A total of 85 holes aggregating 3,647 metres have been drilled over the resource. The diamond drill core was oriented, cut using a diamond saw, logged and the interval selected for sampling was indicated by means of a black marker. The samples were geologically controlled and the sample interval was typically 1.0 metres. Generally, the core recovery was good. Each sample was placed in a plastic bag, tagged and secured with a ziplock tie. Drill Core Samples were taken every metre and standards were introduced every 30 samples. Drill core the core recovery was typically greater than 90%, and the sampling was done by qualified geologists under geologic control, respecting the geology. The sample interval reflects true widths for the interval sampled. The continuity of the mineralized zone with respect to the true width, downdip and on strike continuity is very consistent for a gold deposit.

The sample analysis method was fire assay 30g charge with acid digest for Au and AAS for Ag.

The resource block estimation was completed using:
- 1/D² (Inverse distance squared) algorithm
- Search ellipsoids:
- Major axis: 337° horizontal, 25m and 50m radius
- Secondary axis: 40°, 25m and 50m radius
- Minor axis: horizontal, 1/3 of major axis
- Number of informing samples per block:
- Maximum: 9
- Minimum: 3
- Maximum of 6 samples per hole
- Specific gravity estimated to be 2.8g/cc

A total of 2643 sample results across 3,402 metres of core in 78 diamond holes comprised the data set.

The lower cut-off grade used was 0.5g/t. The basis for this lower cut-off was that it still provided an acceptable internal rate of return.

The NI43-101 report and financial analysis was determined with the Yanamina Project as an open cut resource. The metallurgical recoveries were based on extensive metallurgical work completed by a previous owners pre-feasibility studies.

A summary of the work programs used to prepare the indicated and inferred resources includes a data base comprising 85 holes aggregating 3,647 metres, adit sampling, channel sampling, geological mapping, metallurgical test work, conceptual financial analysis.

Appendix 2 contains Table 1 of Appendix 5A.
Please follow the link to view entire original news: https://www.asx.com.au/asxpdf/20190916/pdf/448k295153923j.pdf

Cautionary Statement: The information disclosed above was prepared and first disclosed under the NI43-101. National Instrument 43-101 is a national instrument for the disclosure for mineral projects within Canada or mineral properties owned by, or explored by, companies which report these results on stock exchanges within Canada. The NI43-101 is broadly comparable to the JORC 2012 Code. The content of the technical reports, and the scientific rigors to which the mineral resource classifications within them are put, are often very similar and in many cases, NI43-101 and JORC Code technical reports are considered inter-changeable. The NI43-101 report was based on the historic exploration work completed by parties prior to 2012 and hence to update the NI43-101 analysis to JORC 2012 the same historic data base will be evaluated. The NI43-101 report has not been prepared by the Company and has not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. The resource estimates may not comply with JORC Code 2012 and a Competent Person has not done sufficient work to classify the estimates to comply with the JORC Code 2012. A review of the data on behalf of the Company indicates the estimates were prepared in a competent manner and nothing has come to the attention of the Company that causes it to question the accuracy or reliability of the former owners estimates but the Company has not independently validated the former owners estimates and therefore is not to be regarded as reporting, adopting or endorsing these estimates.

It is possible that following further evaluation and/or further exploration work that the estimates presented may materially change and will be needed to be reported afresh under and accordance with the JORC Code 2012.

In late 2015 Coronet sold the project to Wealth Minerals, with little work performed on the Yanamina Project since that date.

Proposed Work Programme
The Yanamina Gold Project presents a neglected potential near term production opportunity with a low capex, low opex, solid cash flow and significant untested exploration potential.

In terms of the proposed work programme Jadar plans the following, and will use best endeavours to complete such programme within 12 months of shareholder approval for the aquistion:

1. Establish a relationship with the local community as early as possible to faciliate local support and assistance with future programmes;
2. Review the extensive existing data base to verify the historical estimates as mineral resources in acordance with the JORC Code 2012;
3. Prepare a conceptual economic study to analyse the Projects potential economics with current costings and metal prices;
4. Determine what additional drilling is required to elevate the majority of the Project resource to Measured status;
5. Undertake sampling - bulk and drill - to secure additional material for metalurgical testworkwork;
6. Develop a drilling programme to test the fault block target together with potential extensions to the mineralisation at depth and to the north west of the existing resource boundaries; and
7. Undertake the proposed resource definition and exploration drilling.

This work, and the acquisition cost, will be largely funded from the capital placement pursuant to the proposed acquistion.

Serbian Scout Drilling Program
Following the encouraging results received from the Companys latest field program, the Company is pleased to advise that it has selected its first zone for follow up works on its Vranje South project with aim to select preliminary scout drill targets with drilling estimated to commence late October 2019.

Works will include a further analysis and reinterpretation of the gavity survey data, reconassions programs to confirm initial scout drilling locations and the drilling contractor selection.

The purpose of the planned scout drilling program will be to test the identified geochemical, gravity and magnetic anomalies identified in Jadars announcement dated 16 July 2019 and scope the geology of the basin to understand the potential for mineralisation.
https://www.irw-press.at/prcom/images/messages/2019/48839/2019-09-XX_JDR_ASX_Ann_Yanamina Gold Project (FINAL)_PRcom.004.png

Figure 4: Location of Jadar Lithium Limiteds projects

ENDS

Further Enquiries:
Luke Martino
Non-Executive Chairman
Tel: +61 8 6489 0600
E: luke(at)jadarlithium.com.au -

311-313 Hay Street Subiaco, Western Australia 6008
T:+61 (0) 8 6489 0600
F: +61 (0) 8 9388 3701
www.jadarlithium.com.au

Competent Persons Statement
The information in this announcement that relates to the Yanamina Project Exploration Results and Mineral Resources is based on information compiled by Howard Dawson. Mr. Dawson is a member of the Australian Institute of Geoscientists and 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 Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results. The resources quoted in this announcement were estimated by the former owners in accordance with the National Instrument 43-101 Code. The resource estimates have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Mr. Dawson has not done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012. The information in this market announcement is an accurate representation of the available data and studies for the Project. Mr. Dawson is a consultant to the Company and consents to the inclusion of the information in the form and context in which it appears. A company associated with Mr Dawson, Happy Diamonds Pty Ltd, introduced the acquisition and will receive a fee for services rendered and is the recipient of the production linked milestone payments and 1% NSR royalty on greater than 200,000ozs.

Disclaimer

Forward-looking statements are statements that are not historical facts. Words such as expect(s), feel(s), believe(s), will, may, anticipate(s), potential(s)and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Companys prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

JADAR LITHIUM
QUICK STATS

ASX Code: JDR
Shares on Issue: 480.4 million
Market Cap: $4.8 million
Cash: $2m (at 30 June 19)

BOARD & MANAGEMENT
Non- Executive Chairman
Mr Luke Martino

Non-Executive Directors
Mr Steven Dellidis
Mr Nicholas Sage
Mr Stefan Müller

Company Secretary
Ms Louisa Martino

ASSET PORTFOLIO

AUSTRIA
Weinebene
(80% interest - ~28km2)
Eastern Alps Projects
(80% interest - ~37km2)

SERBIA
Cer
(100% interest - ~92.77km2)
Rekovac
(100% interest - ~75.4km2)
Vranje-South
(100% interest - ~90.44km2)

Appendix 1 - Acquisition Terms
The material terms of the Acquisition are as follows:
- Jadar to acquire Minera Wealth Peru S.A.C, the holder of five concessions known as the Yanamina Gold Project;

- Consideration is US$100,000 and a 1.0% net smelter royalty on all metal production from the Yanamina Project. In addition, a payment of $100,000 is to be made to the party who introduced the acquisition (Happy Diamonds Pty Ltd) for services relating to the acquisition;

- The agreement is subject to a number of conditions precedent including:
- completion of due diligence on Minera Wealth Peru S.A.C and the concessions by Jadar;
- execution of a binding Sale and Purchase agreement;
- Assumption by Jadar of potential production obligations of US$8.0 million in production linked milestone payments and royalties, payable to Happy Diamonds Pty Ltd, comprised as follows When Coronet acquired the Yanamina Project from Latin Gold in 2011, production obligations were negotiated between the parties. These production obligations remain with the Yanamina Project. In March 2017, Latin Gold assigned its right to receive the production obligations to Happy Diamonds Pty Ltd. Happy Diamonds Pty Ltd and Jadar will enter into a separate agreement concerning the production obligations.
:
- On or before 5th business day following commencement of mine construction, a payment of US$1.5 million;
- On production of greater than 275,000ozs, US$1 million;
- Before the 10th business day following the date of the initial gold pour, US$1 million;
- Before the 10th business day following the first anniversary of the date of the initial gold pour, US$1 million;
- Before the 10th business day following the second anniversary of the date of the initial gold pour, US$1 million;
- A payment of US$2.5 million, following the delivery of a technical report commissioned by Jadar which discloses an inferred mineral resources of 250,000 ozs or greater of gold, as calculated using a cut-off grade equal to or less than 0.8 grams of gold per metric tonne for the Yanamina fault target.

This payment will be payable upon the earlier of:
a) the first-year anniversary of the Company having been in gold production in Peru from the Yanamina fault target, or
b) the Company completing a transaction to sell the Yanamina fault target for cash or shares, should such a transaction be carried out; and

- 1% NSR on all gold production from the Yanamina Project of greater than 200,000ozs.

- Assumption by Jadar of a 2% NSR on all metal production from the Yanamina Project. This royalty can be purchased outright for US$200,000 and is payable to Franco-Nevada Corporation, a gold focused company who owns a large diversified portfolio of royalties and streams. This is an historical obligation of the Project.
- Jadar obtaining all necessary shareholder or regulatory approvals required by the Corporations Act 2001 (Cth) (Corporations Act) or the ASX Listing Rules in relation to the Acquisition; and
- the parties obtaining any other necessary third party consents to allow the parties to lawfully complete the acquisition.

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Datum: 16.09.2019 - 08:20 Uhr
Sprache: Deutsch
News-ID 598858
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