Sherlock Bay Extended Base Metal Project

The Sherlock Bay Extended project is composed of two Exploration Licences (E47/1769 and E47/1770), which surround the main Sherlock Bay nickel deposit (wholly owned by Australasian Resources Ltd - ‘ARH’). The project is located between Roebourne and Whim Creek in the Western Pilbara and is prospective for nickel, copper, silver and gold mineralisation. Known deposits within the region include; Sherlock Bay (Ni,Cu), Balla Balla (Fe,Ti,V & P), plus the Salt Creek, Balla Balla and Whim Creek base metals deposits (Cu,Zn,Pb).

The project is a joint venture between ARH (70% interest) and Metals (30% interest). ARH are the managers of the project, with Metals being ‘free-carried’ through to the completion of a bankable feasibility study and the decision to commence commercial mining.

A sampling program, which was based on a combination of information generated by hyperspectral and topographic surveys and past biogeochemical assay data, was completed during the 2012/2013 reporting year. The program included sampling on all tenements in the Sherlock Bay and Sherlock Bay Extended project areas. A total of 20 target areas have been identified for follow-up.

ARH also undertook an extensive vegetation sampling program across tenements making up the Sherlock Bay Extended Project. ARH has requested that their consultant review and interpret the assay results in conjunction with existing hyperspectral and topography data, and in combination with historic data. Assay results were received in the first half of 2013, and an interpretation completed.

The interpretive work has identified seven areas of interest, shown below. Thirteen targets where further exploration is warranted were identified on the JV tenements. The interpretation gave significant consideration to specific elements that might be most significant in determining areas of potential economic mineralisation.

Areas of exploratory interest set against 1:250,000 topography data (red oval indicates Sherlock deposit)

Targeted Anomalism Prospective Areas Prospective Area Subgroup  Tenement
Nickel Area 1 A1.1
Area 2 A2.1
Area 7 A7.1
Gold Area 8   E47/1770
Area 9 E47/1769
Platinoid Titanium Area 10   E47/1769
Area 11 E47/1770
Area 12 E47/1770

Total areas of exploratory interest (note Ti is often elevated in areas of interest for Nickel)

The consultant to ARH has recommended further geochemical and biogeochemical sampling in order to better define targets identified throughout the area covering the joint venture tenements.