In January 2017, Bullamine Magentite Pty Ltd, a wholly owned subsidiary of Reedy Lagoon, lodged an application for an exploration licence covering its previous Burracoppin Magnetite Prospect located near Merredin about 250 kilometres east of Perth in Western Australia.
Reedy Lagoon held the Burracoppin Magnetite deposit when it was discovered in 2012 with its then joint venture farm-in partners: Cliffs Magnetite Holdings Pty Ltd (manager), NS Iron Ore Development Pty Ltd and Sojitz Mineral Development Pty Ltd. The farm-in parties withdrew in 2014 and Reedy Lagoon relinquished the ground in April 2016.
Magnetite mineralisation in multiple bands with variable continuity was intersected by drilling in 2012 by our previous joint venture. Additional drilling is required to better understand the extent of the mineralisation. However, the limited drilling completed indicates the mineralised bands have combined horizontal widths of between 150 metres and 200 metres. Detailed magnetic data indicate a strike length of 3,000 metres and a potential tonnage of magnetite bearing rock of between 140 and 220 million tonnes (refer to ASX release 31 January 2013). Note that the potential quantity and grade of the Burracoppin deposit is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Metallurgical studies on core samples have produced concentrate with high iron levels (67% to 70% Fe) and low levels of impurities at a relatively coarse grind size (P80 -150 micron) (refer to ASX release 23 November 2012).
Magnetite mineralisation in multiple bands with variable continuity has been intersected by drilling in 2012. Additional drilling is required to better understand the extent of the mineralisation. However, the limited drilling completed indicates the mineralised bands have combined horizontal widths of between 150 metres and 200 metres. Detailed magnetic data indicate a strike length of 3,000 metres and a potential tonnage of magnetite bearing rock of between 140 and 220 million tonnes. Note that the potential quantity and grade of the Burracoppin deposit is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Refer to ASX release 31 January 2013. (500 kb PDF)
Metallurgical studies on core samples have produced concentrate with high iron levels (67% to 70% Fe) and low levels of impurities at a relatively coarse grind size (P80 -150 micron) (2012).
Refer to ASX release 23 November 2012. (1 mb PDF)
The graphs above show Davis Tube Recovery (DTR) concentrates of several Australian magnetite projects plotted against grind size information sourced from public documents. Graph A shows iron grades and Graph B shows silica. Typical cut-off grades for commercial grade products are shown by the horizontal dotted lines - minimum 65 % iron and maximum 5 % silica. Preliminary metallurgy for the Burracopin Project shows good comparison to other projects at a coarser grind size than is typically achievable. Coarser grind size means lower production costs and potentially better product prices.
Refer to ASX release 18 January 2013. (800 kb PDF)
Notwithstanding the potential for production of a premium sinter product from Burracoppin, RLC proposes also investigating the potential for producing a saleable product without grinding but instead magnetically separating an iron rich concentrate after crushing the mineralised material.
RLC expects if such a product can be produced using only crushing equipment (no grinding) and dry LIMS (low intensity magnetic separation) then CAPEX and OPEX for this product would be substantially less than for production of a premium sinter product.
The next steps to advance the Burracoppin project will include additional drilling to determine whether a resource exists and to recover additional material for further metallurgical testing.
RLC retains an interest in its Edward Creek project focussed on the Victory prospect where anomalous uranium and REE (rare earth element) mineralisation has been identified.
Field investigation of an airborne radiometric (uranium) anomaly in 2010 identified anomalous levels of uranium and REE which led to the initiation of the Victory prospect.
All interests in diamonds within the project area (EL 5580) are held by unlisted diamond explorer DiamondCo Limited. The project was explored by the Edward Creek Base Metal Joint Venture ("ECBMJV") from 30 June 2003 until the joint venture was terminated by RLC on 9 June 2009. The termination and the forfeiture of joint venture interests to RLC resulting from the termination has been disputed by the other parties to the joint venture. RLC considers the dispute to be baseless and that it holds a 100% interest in the tenements which were previously the subject of the joint venture.
The Edward Creek Project area is located on the interpreted north-eastern boundary of the Gawler Craton. The western parts of the Project area are on the Gawler Craton. Along the Project's eastern side local geology is dominated by a group of four Precambrian inliers known collectively as the Denison Inlier. The Denison Inlier was uplifted, about 11 - 25 million years ago, by block faulting to form the Peake and Denison Ranges. The Project area extends eastward over the western margin of the southern most inlier (Margaret Inlier) which forms the Davenport Range.
The rocks of the inlier are prospective for copper, gold, lead, zinc, and uranium. In the western part of the Project area Cainozoic, Mesozoic and minor Permian sediments outcrop and on-lap the basement inlier to the east. Rocks comprising the inlier within the Project area include Early Proterozoic metamorphics and Late Proterozoic (Adelaidean) sediments and volcanics (including andesite, dacite and rhyolite). Ordovician diapiric breccia, monzonite and dolerite dykes intrude the inlier.
Extensive chemical weathering, represented by a widespread zone of alteration in rocks underlying the Jurassic sediments, is likely to have leached and reduced the geochemical signature of underlying mineralisation.
Ground spectrometer surveying in 2010 investigated an airborne radiometric anomaly and identified anomalous uranium to establish the 'Victory' uranium prospect. The 2010 ground survey identified an area of about 6.5 hectares within which Gamma-Ray Spectrometer readings were above about 5 times background. Within this area a strongly anomalous linear zone measuring approximately 20 metres by 100 metres was identified.
Results from 52 surface rock chip and soil samples collected from the Victory prospect in August 2010 include several samples with anomalous uranium. Maximum uranium assay was 412 ppm for a "grab" sample from 30-35 cm depth in the bottom of a shallow pit within the strongly anomalous linear zone identified in the ground spectrometer survey data. The sampled material was an intensely weathered, kaolinised, fine-grained rock. It also assayed 0.39 % total rare earth elements (+ Yttrium) ("TREE+Y"). The extent and thickness of this mineralised material are not known.
Other results from the Victory prospect include elevated copper-uranium-cobalt in weathered metamorphic rock (1320 ppm Cu, 60.3 ppm U, 1250 ppm Co, 361 ppm Zn, 7.87 % Mn) and in ferruginous material associated with a weathered basic dyke (1420 ppm Cu, 58.3 ppm U). These results are interpreted to represent secondary enrichment due to weathering effects and therefore unlikely to be of economic significance in themselves, but they may indicate the presence of primary source mineralisation in the vicinity.
Maximum gold assay was very low but anomalous, at 0.067 ppm Au. It was from a weathered quartz vein along the margin of the principal uranium anomalous zone.
The Edward Creek area was targeted in the early 1970s for uranium exploration by Uranertz (Australia) Pty Ltd. Uranertz focussed on the unconformity between the late and early Proterozoic rocks. Part of this unconformity lies a few hundred metres east of the current Victory prospect and was identified here by Uranerz as an "area of detailed investigation". Reconnaissance helicopter and fixed-wing surveys were flown over this and other areas, but the unconformity here is under surface cover. The flight lines did not pass over the adjacent Victory prospect area, where uranium-bearing weathered basement rocks have now been found. Uranertz's best assay in this area was only 20 ppm U3O8, compared to the best to date at the Victory prospect of 418 ppm U. The anomalism at Victory may be marginal to prospective zones under cover, at or near the unconformity.