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Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

It has lodged a 65sq km investigation permit application over crystalline, coarse flake graphite occurrences in the Aracena Metamorphic Belt, Huelva province in SW Spain. 

Several strata-bound graphite occurrences and former small mines occur over an 11km strike length within a sequence of high grade metamorphic rocks near the small town of Cortegana.

Interestingly, three areas of old workings have been identified at La Nina, San Carlos and Hormiga, which were worked on a small scale in the early 1900’s with reported grades of 10-20%C in deposits 1-8m thick.

However, graphite deposits up to 24m thick have been reported. To the best of Meteoric’s knowledge, no drilling or modern exploration has been carried out in the Cortegana graphite belt.

Meteoric’s 100%-owned permit application covers all of the available known graphite occurrences in the Aracena Metamorphic Belt, an area of undulating forest and olive groves with a good network of roads and ready access to power. 

The eastern part of the permit application covers the margin of the Sierra de Aracena nature park, however exploration permits are allowed within this park subject to certain conditions. 

Whilst Meteoric cannot guarantee grant of the permit, the company understands that it has priority of application according to the mining law and knows of no reason why it should not be granted the permit. 

Investigation Permits are a form of exploration title allowing detailed exploration and definition of resources and are granted for a period of three years with provision to extend the title for a further three years.

Meteoric has engaged a Europe-based consultant to propose an exploration programme in readiness for grant of the permit. As graphite is an excellent conductor and has a strong electromagnetic response,

Meteoric plans to assess the use of airborne electromagnetic surveying in identifying further high grade crystalline graphite deposits within the 20km-long stratigraphic sequence hosting the graphite occurrences within the permit.

Spain welcomes foreign investment

Foreign investment in Spain is welcomed, particularly at this time, and the government is supportive of exploration and mining.

Graphite market

The market outlook for coarse crystalline graphite remains bright, particularly in energy applications, composite materials and uses related to the new material, graphene.

Meteoric is very encouraged by the potential of the Cortegana graphite belt to produce premium quality flake graphite and is planning to start assessment of this opportunity as soon as the permit is granted.

Analysis

Although early days, and the permit has to be granted, this is a skilful deal taking advantage of encouragement by the Spanish Government to welcome foreign investment given the economic slowdown.  In addition, the prospectivity of the Cortegana graphite belt to produce premium quality flake graphite appears strong. The deal should add significant value to Meteoric and its shares look cheap at $0.03 on this deal alone.

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Meteoric has a 40 kilometre strike length of BIF at the Coorara project, tellingly located just 50 kilometres from the Kalgoorlie-Kwinana standard gauge railway and east of Cliffs Natural Resources Inc (NYSE: CLF) Yilgarn tenements and iron ore mine.

Significantly, the 40 kilometre-long BIF sequence has potential for magnetite ore similar to Macarther Minerals’ (TSXV: MMS) identified magnetite resource of 1.3 billion tonne (Bt) at 30.1% iron (Fe) situated immediately north along strike from Coorara.

In addition, the company said "mapping identified several occurrences of cemented detrital hematite goethite mineralisation on the flanks of the BIF sequence."

Meteoric has an exploration target of 1 billion tonnes of predominantly magnetite with hematite alteration. The significant advantage enjoyed by Coorara is the closeness to standard gauge rail and access to either Esperance or Kwinana ports.

Meteoric is planning a 2,500 metre scout rotary air blast (RAB) drilling program to test both the elevated hematite-goethite targets and the soil covered detrital iron target in order to identify specific targets for follow-up reverse circulation (RC) drilling.

The company expects drilling to commence in August subject to completion of permitting and sourcing of a suitable drill rig.

In other news, at the Tiboobura gold Project where Meteoric has the right to earn 75%, a 3,000 metre RAB drilling program is scheduled to commence in late July, following permitting and heritage clearances.

The drilling will test gold and multi-element anomalies at the New Bendigo, Kink and Mt Poole prospects for the presence of high grade quartz veins and/or bulk tonnage stockwork styles of mineralisation.

On June 1, Meteoric reached an agreement with North Australian Diamonds (ASX: NAD) for NAD to explore a 500 square kilometre package of tenements in the unexplored West Arunta region of Western Australia for diamonds (Meteoric 100% diluting).

The agreement is subject to completion of an access agreement on to aboriginal reserves. The company expects clearance surveys to commence in July prior to NAD starting field work to test these conceptual targets.

Meteoric acquired the tenements earlier in the year over a cluster of more than 50 discrete, circular magnetic anomalies, which are evident from regional aeromagnetic data in the Webb area, which is located in the West Arunta region of Western Australia.

Meteoric wholly owns three of the granted exploration licences, with the rights to acquire up to a 90% interest in a fourth.

Boosting the prospectivity of the area, Meteoric’s geophysical consultants have advised the company that the magnetic character of these anomalies is consistent in shape, size and amplitude with those associated with some kimberlite and lamproite pipes in Archean cratons and Proterozoic mobile belts.

The magnetic targets may represent a kimberlite or lamproite pipe field in an area of extensive windblown sand cover.

There are no records of any previous diamond exploration having been carried out in this area and the targets are considered to be completely untested.

North Australian Diamonds will add exploration experience to the agreement, with the company Australia’s most active diamond explorer and has a long term commitment to diamond exploration and development in the country.

North Australian Diamonds has extensive diamond holdings in northern Australia and recently announced an upgraded resource at the Merlin project of; 30 million tonnes containing 7.2 million carats of diamonds.

Meteoric will allow North Australian Diamonds to earn 70% of Meteoric’s rights in the tenements by expenditure of $2.5 million within five years of signing an access agreement, and subject to completion of an exploration access agreement with the traditional owners.

A minimum program of sampling and 1,000 metres of drilling is required during the first two years prior to North Australian Diamonds right of withdrawal.

What is so interesting about the acquisition, is upon completion of an access agreement, Meteoric will explore for diamond-bearing, mantle-derived volcanic rocks.

Expressions of interest have already been received from a number of diamond exploration companies, with Meteoric saying the company is contemplating a joint venture in order to bring specialist expertise to this project.

The tenements are situated on aboriginal reserve land where until recently there was difficulty in negotiating access agreements.

It is reported that BHP Billiton (ASX: BHP) applied for this area for diamonds in 1991 but was unable to complete access negotiations at that time.

As a result, these conceptual targets remain totally unexplored.

Meteoric also has gold, copper, nickel and iron projects.

The funds raised will be for drilling hematite and magnetite iron ore targets at the Coorara project in Western Australia and for general working capital.

Applicant shareholders will also be issued with 4,000,000 contributing shares (ASX: MEICA) for no consideration, though an amount of $0.20 is due to be paid when called by the company.

Following the placement, Meteoric will have 74,029,251 fully paid shares and 27,504,727 contributing shares on issue and cash and liquid investments of $2.1 million after payment of raising costs.

The survey outlined 4.5 kilometres of drilling targets, with a 3000 metre reverse circulation campaign to test high grade outcrops next week.

The drilling will be targeted both on areas of outcropping high grade hematite-goethite and on gravity anomalies where the bedrock is obscured by banded iron formation rubble or laterite cover.

Surface sampling obtained grades up to 35 metres at 58.9% iron, along with plus 50% iron for grades to the south along strike where, detailed mapping has yet to be completed.

A total of 236 samples were collected at 20m intervals on traverses nominally 400m apart from where the outcrop was found to exist. As the sampling was first pass exploration the high grade iron discovered is a particularly encouraging result for the company.

From this, five priority exploration zones have been defined for follow up work, where samples contain over 50% Fe. The priority zones have strike lengths greater than 1km.  Interestingly, other samples exist

The values define a coherent trend over several of the nominally 400m spaced traverses, of which all of these priority zones appear to have a strike lengths greater than 1km, and will be assessed in detail by Meteoric.

The exploration was planned to objectively indicate the potential presence of hematite-goethite alteration and resulted in definition of widespread and coherent areas hematite-goethite alteration of the quartz-magnetite BIF

- A 10km x 8km gold anomaly identified, being the largest and most coherent gold response in a 6,500sq km regional geochemical survey.
- Up to 20km of coincident multi-element anomalism.
- Strong multi-element association indicative of potential for a major mineralisation system.
- Totally unexplored.
- Negotiations for access in progress.

The anomaly was identified by a helicopter-supported regional geochemical sampling programme carried out by GSWA following field work by Geoscience Australia which highlighted the copper-gold and gold potential of the Mt Webb area in the western part of the Arunta Complex which extends from the NT to WA.

Meteoric has applied for three exploration licences totalling 760sq km covering geochemical anomalies and other targets identified outside the GSWA survey area. No record of previous exploration in these areas has been found and the areas appear to be totally unexplored.

Importantly, the Webb anomaly is supported by a large number of other anomalous elements including As, Cu, Zn, U, Co, Sn, Sc, Ce, Nd, Sm, Tl, Y, La and Ni. Some of these associated anomalies (such as arsenic, cobalt, tin and scandium) are 20km in length.

The large extent and multi-element nature of the anomalism shows characteristics similar to those shown by large hydrothermal alteration and mineralisation systems. For example, of 18 anomalous elements associated with the 20Moz Telfer gold system 17 are present at anomalous levels at the Webb anomaly (however the geological and regolith setting of the anomaly is not well understood and no direct comparison can be made to Telfer at this stage).

The directors of Meteoric "are excited by the excellent potential of this very large, previously unrecognised gold and multi-element target and have initiated discussions regarding access to this highly prospective and unexplored area".