Proactiveinvestors Australia Shree Minerals https://www.proactiveinvestors.com.au Proactiveinvestors Australia Shree Minerals RSS feed en Tue, 25 Jun 2019 14:18:52 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Shree Minerals enters into option to acquire Golden Chimney Gold Project in WA ]]> https://www.proactiveinvestors.com.au/companies/news/216063/shree-minerals-enters-into-option-to-acquire-golden-chimney-gold-project-in-wa-216063.html Shree Minerals Limited (ASX:SHH) has entered into an option to acquire the Golden Chimney Project from Carmicheael Prospecting Limited on October 4, 2018, through a share based payment of 9 million ordinary shares.

Following the grant of the license, Shree Minerals has started preparations to immediately begin exploration activities to determine the prospectivity for minerals, in particular gold.

  In position to execute “clear exploration strategy”

Shree Minerals executive director Sanjay Loyalka said: “We have been eager to commence exploration activities on the Golden Chimney Gold Project.

“The project has now received formal granting and the company is in a position to execute a clear exploration strategy to determine the prospectivity of these prospective gold assets.

“WA gold has been a strong sector and the Leonora province has re-emerged as a historic gold region and we look forward to updating shareholders on the progress in WA while we also continue to advance the Nelson Bay Iron Project in Tasmania.”

Next steps

The company has already started preparations to immediately start exploration activities to determine the prospectivity of the project.

Initial steps prior to applying for relevant permitting and the beginning of drilling will focus on but is not limited to:

A more detailed review of historic reports and data mining;

The registering and digitising of remaining historic results from scanned reports;

Reviewing and tabulating mineral occurrences and alteration within the Melita complex and Niagara Igneous Formation; and

Collecting rock specimen samples from key geological units across prospects and historic mines.

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Fri, 08 Mar 2019 01:56:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216063/shree-minerals-enters-into-option-to-acquire-golden-chimney-gold-project-in-wa-216063.html
<![CDATA[News - Shree Minerals Ltd surges ahead of $2.84 million placement ]]> https://www.proactiveinvestors.com.au/companies/news/162123/shree-minerals-ltd-surges-ahead-of-284-million-placement--68427.html Shree Minerals Ltd’s (ASX:SHH) share price surged today after finalising a $2.84 million share placement to Singapore's RBI Investments Pte Ltd at $0.02 per share to meet the working capital needs of the company.

Interestingly, the share placement is at a 122% premium to Shree’s last traded price of $0.009 per share.

The company recently flagged that it was pursuing business development opportunities as well.

Shree Minerals said it was maintaining a close watch over iron markets for an appropriate window to recommence shipments of inventory on hand from its Nelson Bay River Iron Project in the North West Tasmania which is under care and maintenance.

The company has taken steps to move the iron ore inventory at site to Port in preparedness to making shipment which would earn revenues.

The price of iron had fallen sharply towards the end of 2015 and has recovered some part of that fall.

 

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Wed, 04 May 2016 12:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/162123/shree-minerals-ltd-surges-ahead-of-284-million-placement--68427.html
<![CDATA[News - Shree Minerals completes third iron ore shipment from Nelson Bay River ]]> https://www.proactiveinvestors.com.au/companies/news/162122/shree-minerals-completes-third-iron-ore-shipment-from-nelson-bay-river-55486.html Shree Minerals (ASX:SHH) has shipped its third shipment of iron ore from its wholly-owned Nelson Bay River iron ore project, which is expected to add to its revenues for the June 2014 quarter.

The company had previously noted that receipts from the second shipment produced last quarter would be largely included in the current quarter’s cash flow report.

Shree is also continuing to adjust mine scheduling to deliver an efficient balance through the company’s ore supply chain.

Measures are also being targeted towards the objective of conserving resources during the current iron ore price cycle.

These measures include changes to certain parts of the production chain including mine development (waste stripping) and ore mining which are being suspended temporarily.

The company is also working with various stakeholders to optimise costs in its export chain & in the interim the scheduling of other parts of production chain are being adjusted as per business and operational needs.

NBR is located about 70 kilometres south-west of Smithton in north-west Tasmania and 7 kilometres north-east of the coastal town of Temma.

The company started mining in November 2013 the DSO South Pit, which has total Resources of 650,000 tonnes at 56.7% iron.

This hematite oxide cap is surrounded by lower grade ore considered to have potential to produce a commercial beneficiated oxide product.

 

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Fri, 06 Jun 2014 17:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/162122/shree-minerals-completes-third-iron-ore-shipment-from-nelson-bay-river-55486.html
<![CDATA[News - Shree Minerals is closer to DSO iron production in Tasmania ]]> https://www.proactiveinvestors.com.au/companies/news/162121/shree-minerals-is-closer-to-dso-iron-production-in-tasmania-36194.html Shree Minerals (ASX:SHH) is edging closer to production from its Nelson Bay River Iron Project (NBR) in north-west Tasmania.

While waiting for Commonwealth approvals for mining to commence, the emerging iron ore producer in Tasmania has not been idle ticking off significant project development items.

With mininal CAPEX and no infrastructure CAPEX, Shree is well placed to be the next iron ore miner into production.

Re-cap NBR Project

A global iron resource of 11.3Mt at 36.1% Fe including magnetite resources and goethite-hematite resources.

Goethite-hematite Inferred Resource of 1.4Mt containing:

- 0.7Mt of Direct Shipping Ore (DSO) at an average grade of 58% Fe and
- 0.7Mt of Beneficiable goethite-hematite

Magnetite Resources of 7.8 Mt @ 38.3 DTR

- Capable of producing high-grade concentrates to produce:

- Blast Furnace (BF) Pellets

- Dense Media Magnetite (DMM)

NBR Exploration potential

There is significant upside potential as there are additional magnetic features suggesting possible Iron mineralisation:

- West of the NBR occurrence
- North of Nelson River
- An anomaly in the far south east of the licence
- An anomaly in Rebecca Creek

NBR Iron Project –DSO Mine Plan

The production schedule for the first two years comprise of mining DSO iron ore.

The DSO requires no further beneficiation to produce a marketable product.  The DSO is a first, lucrative stage of mining at NBR.  It involves minimal CAPEX and no infrastructure CAPEX.

Two separate DSO pits are planned in the first two years (comprising DSO South Pit and DSO North Pit, which is within the BFO resources)

Commonwealth approval

Shree said it expects a final decision from the Australian Commonwealth Government under EPBC Act, for which the final EIS has been published following response to submission received as a result of public exhibition of Draft EIS.

Management

There is a plethora of experience at Shree including:

Sanjay Loyalka, Chairman

CEO and Managing Director of Aditya Birla Minerals Ltd, (2003-08); Responsible for the acquisition of Nifty & Mount Gordon Copper mines, development of the Nifty project.

Arun Jagatramka, Director

Chairman of Gujarat NRE Coking Coal Ltd.

Mahendra Pal, Director

Responsible for the discovery of several iron ore bodies in the Hamersley basin; Mt Tom Price (Southern Batter), Paraburdoo (Lens II), Lamington, JunaDowns (MarraMamba ore) etc.

Ticking boxes at NBR

Shree has been moving forward at NBR achieving milestones on the road to production:

- Port Access: MOU with Grange Resources
- Offtake Contract: MOU with Large International Trading house
- Funding: Advanced stage of discussions with Banks for Debt Funding
- Mining Contractors/Equipment Suppliers: Advanced stage of discussions

Analysis

The NBR project will be profitable at current iron ore prices despite smaller size (v typical iron ore projects). 

NBR will have accessible good infrastructure and availability of experienced labour force.

Shares on issue are tightly held at 95.9M at a Market Capitalisation of $19M. Cash in hand is $2.5M.

Proactive Investors retains its price target of $0.40 - $0.50 for Shree Minerals.

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Thu, 22 Nov 2012 08:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162121/shree-minerals-is-closer-to-dso-iron-production-in-tasmania-36194.html
<![CDATA[News - Shree Minerals’ drilling focuses on DSO resource upgrade and extension ]]> https://www.proactiveinvestors.com.au/companies/news/162120/shree-minerals-drilling-focuses-on-dso-resource-upgrade-and-extension--35996.html Shree Minerals (ASX: SHH) has outlined a 3,500 metre drilling program for its Nelson Bay River (NBR) Iron Project targeting an upgrade in the confidence, as well as an extension, of the direct shipping ore (DSO) resources and reserves.

Drilling is now set to begin in early December 2012, with the company having finalised arrangements with a replacement drilling contractor.

Shree also plans to undertake geotechnical studies of the proposed mine area.

Importantly, Shree is adequately funded to carry out the next phase of exploration at the NBR Project with around A$2.6 million cash at the end of the September quarter 2012.

A 3D Magnetic Inversion study was aimed to assist planning of the 2012 drilling program as well as get a better understanding of the likely continuity of the main magnetic anomaly from north to south within the NBR tenement.

The study is based on aeromagnetic data from Mineral Resources Tasmania.

The 3D magnetic inversion model suggests continuity between the Main Body (Northern Anomaly) and the South Anomaly but with in-between areas of non-magnetic material that could be oxide mineralisation.

The modelling indicates substantial continuation at depth of the magnetite-bearing ultramafic dyke.

Recently, Shree has focused on work to support statutory approvals besides shallow drilling in the Northern Anomaly area to support a “Project startup”. 

The potential target for the resource increase along strike to the Southern Anomaly and at depth is considered substantial and will be gradually progressed by Shree.


Milestones to production

In mid-September Shree was granted a mining lease by the Tasmanian Government for its NBR Project.

More recently, the company defined maiden reserves of 330,000 tonnes at 57.4% iron for the project, based on a mine plan of two years.

The production schedule for the first two years comprises the mining of DSO iron ore, which requires no further beneficiation to produce a marketable product, and only needs crushing and screening.
 
Two separate DSO pits are planned in the first two years, comprising the DSO South Pit and the DSO North Pit which is within the BFO resources.
 
This is based on the two pits of about 815,000 tonnes of DSO ore at a grade of 57.5%.

The company plans to mine the DSO first followed by BFO material, and then the magnetite resource. 


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Fri, 16 Nov 2012 15:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162120/shree-minerals-drilling-focuses-on-dso-resource-upgrade-and-extension--35996.html
<![CDATA[News - Shree Minerals receives key planning permit for Nelson Bay Iron Project ]]> https://www.proactiveinvestors.com.au/companies/news/162118/shree-minerals-receives-key-planning-permit-for-nelson-bay-iron-project-32750.html Shree Minerals (ASX: SHH) has revealed the Nelson Bay River Iron Project (NBR) has received its planning permit from the Circular Head Council of Tasmania.

In July, Shree reached a milestone with a decision by the Tasmanian Environment Protection Authority (EPA) to issue approval conditions for the company’s proposed magnetite and hematite mine at Nelson Bay River, in northwest Tasmania.

The EPA provided its conditions to Circular Head Council. The planning permit received from the Council completes the Tasmanian planning and environmental approval requirements.

The company’s chairman, Sanjay Loyalka, said that Shree now looks forward to the issue of the mining lease by the Tasmanian Government and also to the Commonwealth Government’s separate environmental approval decision.

NBR Project

The NBR Project area is located about 6 kilometres North East of the town of Temma and about 70 kilometres South West of Smithton, in North West Tasmania.

NBR project has a JORC iron resource of 11.3 million tonnes including goethitic‐hematite resource of 1.4 million tonnes and magnetite resource of 7.8 million tonnes.

During the March quarter, the DSO resource for NBR increased by 55% to 450,000 tonnes at an average grade of 57.8% iron and 700,000 million tonnes of beneficiable goethite-hematite.


Analysis

With final approvals, mining of DSO material could begin relatively quickly for Shree Minerals given low CAPEX and  generate strong cash flows and transform Shree Minerals from explorer to producer.

Mining of DSO material is likely to have a CAPEX cost only around $4-$6 million and using contractor mobile mining and crushing would only take between three to four months to set-up.

The hematite ore is similar to ore found in Western Australia's Pilbara region; low alumina and a premium product easy-to-extract, with little financial or execution risk.

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Fri, 24 Aug 2012 14:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/162118/shree-minerals-receives-key-planning-permit-for-nelson-bay-iron-project-32750.html
<![CDATA[News - Shree Minerals one step closer to mining iron ore in Tasmania with EPA approval conditions ]]> https://www.proactiveinvestors.com.au/companies/news/162117/shree-minerals-one-step-closer-to-mining-iron-ore-in-tasmania-with-epa-approval-conditions-31748.html Shree Minerals (ASX: SHH) has reached a major milestone with a decision by the Tasmanian Environment Protection Authority (EPA) to issue approval conditions for the company’s proposed magnetite and hematite mine at Nelson Bay River, in northwest Tasmania.

The NBR Project area is located about 6 kilometres north east of the town of Temma and about 70 kilometres South West of Smithton, in north west Tasmania.

NBR project has a JORC iron resource of 11.3 million tonnes including goethitic‐hematite resource of 1.4 million tonnes and magnetite resource of 7.8 million tonnes.

During the March quarter, the DSO resource for NBR increased by 55% to 450,000 tonnes at an average grade of 57.8% iron and 700,000 million tonnes of beneficiable goethite-hematite.

The company’s chairman, Sanjay Loyalka, said that "the EPA Board’s decision comes after a very long and rigorous assessment process to confirm that the mine will proceed in accordance with best practice environmental management.

"He said this included measures to prevent acid drainage, to protect and enhance wildlife habitat and to minimise the risk of roadkill by confining product transport to daylight hours.

Loyalka said that his company was excited about the prospects of developing the mine after the remaining approvals have been obtained.

Perhaps the main point is that the actual "footprint of mining" is very small in relation to the economic benefits that can be obtained and represented a balanced approach to land management.

The EPA has provided its conditions to Circular Head Council. Council must include those conditions in its planning permit if it approves the development application for the mine. Council’s assessment process can now proceed to completion.

Shree Minerals is also waiting on the Commonwealth’s separate approval decision.

The iron mineralisation at NBR is hosted by a 10 to 28 metres wide mafic dyke, which crosses cuts the country rocks and increases in width with depth. Within this dyke is a magnetite‐rich section and oxidation of the magnetite has generated goethite‐hematite mineralisation to varying depths.

Analysis


Mining of DSO material will generate strong cash flows and transform Shree Minerals from explorer to profitable producer.

The hematite ore is similar to ore found in Western Australia's Pilbara region; low alumina and a premium product easy-to-extract, with little financial or execution risk.

Mining of DSO material is likely to have a CAPEX cost only around $4-$6 million and using contractor mobile mining and crushing would only take between three to four months to set-up.

At current Lump and Fines prices, the DSO output from Nelson Bay is expected to generate $10-15 million in annual cash flows for Shree Minerals.

With current market capitalisation at less than $9 million, this under-valuation will look acute in time.

 

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

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Fri, 27 Jul 2012 08:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/162117/shree-minerals-one-step-closer-to-mining-iron-ore-in-tasmania-with-epa-approval-conditions-31748.html
<![CDATA[News - Shree Minerals' study points to 1 million ounce gold potential at Sulphide Creek ]]> https://www.proactiveinvestors.com.au/companies/news/162116/shree-minerals-study-points-to-1-million-ounce-gold-potential-at-sulphide-creek--13982.html Tasmanian focussed Shree Minerals (ASX: SHH) has added a potential one million ounce gold project to its hematite and magnetite project at Nelson Bay River.

Shree commissioned Hellman & Schofield to undertake a data compilation and review of all available information on, and around the Sulphide Creek tenement (EL43/2004) in Tasmania to evaluate the area’s potential for gold mineralisation.

This followed drilling by Shree on the Sulphide Creek tenements in 2010, which yielded encouraging results.

These included gold intersections that returned: 18.5 metres at 0.5g/t gold including 3 metres at 1.26g/t gold and 14 metres at 0.53g/t gold.

The tenement has 3 known prospects; the Davie, Coupon and Anomaly 24-28.  Historical records indicate Davie workings recorded 14g/t gold at surface.  At Coupon, 32 tonnes of ore was mined at 12g/t gold.

The current study by Hellman found the broad low grade consistent mineralisation intersected in the drilling at Coupon and Davie prospects, indicates "potential for a series of low grade gold deposits within the Sulphide Creek area."

There were similarities in geological age and settings to the South Carolina Slate Belt deposits of the Haile and Ridgeway mines.

The study concluded, there exists significant exploration potential for the Sulphide Creek area "in the order of 30-50Mt @ 0.75-1g/t gold for a total of 1 million ounces."

Follow up drilling is likely by Shree on the Coupon and Davie prospects focusing on either the significant previous drill intercepts or untested surface geochemical anomalies.

The drill targets will aim to intersect higher grade gold mineralisation of substantial widths.

The Sulphide Creek Gold tenement is located near Lynchford, 5 kilometres south of Queenstown, Western Tasmania.

Should drilling continue to be successful at Sulphide Creek, the region is renowned for its major discoveries and mines, strong infrastructure and established workforce.

Shree’s Sulphide Creek tenements (EL43/2004) are within the Dundas element, which hosts world class deposits such as: Bass Metals' (ASX: BSM) Rosebery and Hellyer copper, lead & zinc mines; the Mt Lyell Copper-Gold Mine; the Henty Gold Mine; Metals X's (ASX:MLX) Renison Tin Mine and the Avebury Nickel Deposit.

Historical records show that alluvial gold was panned in many streams of the Sulphide Creek area and traced back to source.  This resulted the excavation of several shallow shafts and adits. The Woody Hill Gold Mine, just north of the current licence is reported as producing 4.6 kg of gold from 265 tonnes of ore at a grade of 17.6 g/t gold.

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Wed, 16 Feb 2011 12:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162116/shree-minerals-study-points-to-1-million-ounce-gold-potential-at-sulphide-creek--13982.html
<![CDATA[News - Shree Minerals feasibility study on track, moves closer to DSO mining at Nelson Bay River ]]> https://www.proactiveinvestors.com.au/companies/news/162115/shree-minerals-feasibility-study-on-track-moves-closer-to-dso-mining-at-nelson-bay-river-13727.html Shree Minerals (ASX: SHH) is maintaining the momentum to achieve near term cash flows from direct shipping ore (DSO) at the company's Nelson Bay River Iron project, with Feasibility studies progressing on schedule.

The studies are based on the 12.6 million tonne (1.8Mt Indicated and 10.8Mt Inferred) Resource estimation by Hellman & Schofield in October 2010.

Minserve has conducted the mine planning and site layout for mining the DSO and the follow-up magnetite resources.

The DSO will be mined first from an open pit to 40 metres, followed by a magnetite pit to 225 metres.

The mine plan has been based on open pit mining for an initial 10 year mine life based on 400,000 tonne per year of ore.

The hematite ore is similar to ore found in Western Australia's Pilbara region; low alumina and a premium product easy-to-extract, and should enable Shree to gain near term cash flows with little financial or execution risk.

As part of the feasibility study, budgetary proposals have been obtained for operations based on mobile contractor equipment, transport contractors and port facilities.

Mining of DSO material is likely to have a CAPEX cost only around $4 million and using contractor mobile mining and crushing would only take between three to four months to set-up.

These studies have indicated an estimated FOB Burnie port cash cost in the range of A$45 to A$50 per tonne for the DSO product.

The DSO ore is moderately strong and bulk handling will be possible due to the high ratio of lump to fine split (68% to 32%).

Current market prices are very favourable for Shree, with recent spot prices of iron ore fines 62% iron around U$186 per tonne, with a continued strong forecast demand from China.

Lump ore prices are also trading at a premium to these prices.

At current Lump and Fines prices, the DSO output from Nelson Bay is expected to generate $15-20 million in annual cash flow for Shree.

 

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Mon, 07 Feb 2011 12:28:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162115/shree-minerals-feasibility-study-on-track-moves-closer-to-dso-mining-at-nelson-bay-river-13727.html
<![CDATA[News - Shree Minerals could commence iron ore mining at Nelson Bay in 2011 ]]> https://www.proactiveinvestors.com.au/companies/news/162114/shree-minerals-could-commence-iron-ore-mining-at-nelson-bay-in-2011-11135.html Shree Minerals (ASX: SHH) has upgraded the global iron resource estimate at its fully owned Nelson Bay Iron Ore Project in Tasmania to 12.7Mt at 36.1% Fe including magnetite resources and goethite-hematite resources, and believes the project has potential to produce Direct Shipping Iron Ore (DSO).

The upgrade represents a 14% increase in magnetite resources, part of which have changed to Indicated category.

In addition, there is a new goethite-hematite Inferred Resource of 1.2Mt containing 0.5Mt of DSO at an average grade of 57.8% Fe and 0.7Mt of Beneficiable goethite- hematite.

Geological and geophysical studies suggest further potential for DSO, Beneficiable goethitic-hematite material and magnetite resource in the project.

The present estimates are made by the independent geological consultants Hellman & Schofield Pty Ltd and are reported according to the JORC Guidelines, based on information from 24 diamond holes, drilled for 2,512.96 metres.

The company carried out upgrading of access tracks and clearance of drill site pads for the 2010 diamond drilling and other feasibility study works earlier in the year.

The Nelson Bay Iron Project includes two contiguous licences, EL 41/2004 and EL 54/2008 and cover areas of 50 km2 and 42 km2 respectively. The Project areas are located about 5 km east of the town of Temma and about 70 km southwest of Smithton.

Access to the tenements is via the Temma and Heemskirk sealed road and thereon via maintained forestry tracks.

The iron mineralisation at Nelson Bay River Iron Project (EL41/2004) is hosted by a 10 to 28 metres wide mafic dyke, which cross-cuts the country rocks and increases in width with depth.

Within this dyke is a magnetite-rich section and oxidation of the dyke by weathering has generated near surface goethite-hematite mineralisation.

The DSO has the potential to be produced with very low deleterious elements and Iron Ore product (Fines & Lump) from the Beneficiable goethitic-hematite iron resource.

In addition, the project could provide Magnetite concentrates suitable for Dense Media separation in coal washery and high-grade Blast Furnace pellets.

Recent Davis Tube Recovery results from the 2010 drilling show improved magnetite concentrate grades over previous results.

With the encouraging exploration results the company intends to pursue its objective of completing processes to make application for various approvals in early 2011 to commence mining operations later in the year.

Requisite Environmental & Engineering studies are well advanced in this regard.

With the DSO and Beneficiable Goethitic-hematite Iron resources being near surface, the company has had discussions with appropriate mining contractors & believes it can start mining operations within few months of obtaining regulatory approvals.

The company has also submitted an application for approval for a further drilling program aimed to extend DSO resources to the south of the current resources and upgrade the category of the current inferred Goethite-Hematite Resources.

The drilling work is anticipated to commence in early 2011.

SHH has a market capitalisation of A$13.11 million and had A$3.1 million at the end of the June quarter.

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Tue, 26 Oct 2010 11:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162114/shree-minerals-could-commence-iron-ore-mining-at-nelson-bay-in-2011-11135.html
<![CDATA[News - Shree Minerals sees potential for gold mineralisation at Sulphide Creek Prospect ]]> https://www.proactiveinvestors.com.au/companies/news/162113/shree-minerals-sees-potential-for-gold-mineralisation-at-sulphide-creek-prospect-6073.html Shree Minerals (ASX: SHH), a diversified Australian exploration and development company, is pleased to announce that it has successfully completed diamond drilling program at the company’s wholly owned Sulphide Creek Gold Prospect (EL23/2004) in Tasmania.

The Sulphide Creek Gold tenement is located near Lynchford, 5 km south of Queenstown, Western Tasmania. The Prospect is endowed with good infrastructure and labour supply.

The Prospect has several gold occurrences out of which three are strongly anomalous (Davie, Coupon, and Anomaly 24-28) and geologically rated high for their exploration potential for economical gold mineralisation.

A major north-south striking fault, informally named the Harvey Creek fault, passes through the middle of the tenement.

This fault structure has been considered to act as a conduit for the gold mineralising solutions in the area. The Coupon, Anomaly 24-28, and the Davie gold prospects occur in close proximity to this fault.

The Davie Prospect has several shafts and adits developed on quartz reefs which recorded 14 g/t gold at surface. Strong iron oxide filled quartz stockwork is noted near one of the Davie Adits (Plate 1).

Drilling at the Davie Prospect had intersected substantial intersections of ferruginous stockwork which is positive indication for the presence of gold mineralisations and has an intercept of 101 metres @ 0.35 g/t gold, including a 1 m intercept @ 1.05 g/t gold.

Presence of anomalous gold values in soil along with geological interpretation suggests good potential for defining significant gold mineralisation in the Prospect lands.

Additionally, low grade gold mineralisation was drilled at the Coupon Prospect to a depth of about 70 m. This drilling tested only 150 m of strike length. From the Woody Hill Gold Mine, just north of the Sulphide Creek tenement, 4.6 kg of gold was produced at a grade of 17.6 g/t from 265 tonnes of ore.

The company said all above work indicates that the Davie Prospect has potential for hosting a sizable gold mineralisation. Accordingly, from 14 January to 24 February the company drilled 391 metres (diamond) along 2 holes at the Davie Prospect.

The drilling was aimed to extend the strike of gold mineralisation by approximately 80m northwest of the drilling carried out by earlier explorers. Extensive iron oxide filled quartz stockwork (Plate 2) within the silicified quartz sandstone was intersected right from surface in both drill holes.

The stockwork is highly pronounced between faults and extends beyond 165 metres. Currently the drill core is being geologically examined and sampled. Additionally, all tasks (access, drill pad preparation, mobilisation and demobilisation of drill rig, core transport, etc.) relevant to a drilling operation were attended to.

Shree Minerals said it is quite pleased with the drilling results. Based on assay results and subsequent geological studies of all available data further work planning for the tenement during the Second Quarter of 2010 is scheduled.

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Tue, 30 Mar 2010 06:03:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162113/shree-minerals-sees-potential-for-gold-mineralisation-at-sulphide-creek-prospect-6073.html
<![CDATA[News - Shree Minerals sees DSO and magnetite potential at Nelson Bay Iron Project ]]> https://www.proactiveinvestors.com.au/companies/news/162112/shree-minerals-sees-dso-and-magnetite-potential-at-nelson-bay-iron-project-5402.html Shree Minerals (ASX: SHH) commenced diamond drilling at Nelson Bay River in North West Tasmania on 10th February 2010.

The drilling has intersected magnetic mineralisation from 223 to 234m.

The Company believes the Nelson Bay River Project has potential to produce Direct Shipping Ore (DSO) with grades of greater than 60% Fe, and beneficiable material (magnetite) of greater than 38% Fe capable to produce concentrates suitable for coal washeries and high-grade pellets.

The Company carried out upgrading of access tracks and clearance of drill site pads for the 2010 diamond drilling and other feasibility study works.

The Nelson Bay Iron Project includes two contiguous licences, EL 41/2004 and EL 54/2008 and cover areas of 50 km2 and 42 km2 respectively. The Project areas are located about 5 km east of the town of Temma and about 70 km southwest of Smithton.

Access to the tenements is via the Temma and Heemskirk sealed road and thereon via maintained forestry tracks.

The Nelson Bay River iron mineralisation is hosted by a 10 to 28 metres wide mafic dyke that cross cuts the country rocks at right angle.

The Tasmanian Government airborne magnetic survey has mapped a series of NW striking, strong amplitude magnetic features. One of these magnetic features, a 4 km long structure occurs within the EL41/2004, is known as the Nelson Bay River Iron Prospect.

A second significant magnetic feature, similar to the Nelson Bay River iron mineralisation occurs 5 km south at EL54/2008 and is known as the Rebecca Magnetite Occurrence.

The Company has 100% interest in the Project tenements. The Nelson River Prospect (EL41/2004) has two identified magnetic anomalies: the North and South. A major part of the exploration work has been carried out on the Northern anomaly.

Since inception the Company has directed its resources towards the development of the Northern anomaly (Nelson Bay River Iron Project) and has carried out outcrop sampling, diamond drilling of 535.3 m along 11 holes, ground magnetic survey, etc.

The drilling has extended the strike length of the iron mineralisation to almost 1km in the northern anomaly. The drilling has intersected both DSO and beneficiable magnetite materials.

Additionally, Shree’s exploration work has confirmed the presence of iron mineralisation at the southern anomaly as well.

With the encouraging results of 2008-2009 exploration, further drilling program of 500m diamond is planned, to test for deeper extensions of DSO as well as beneficiable magnetite mineralisation.

The Company currently has JORC compliant magnetite resource of 6.9Mt at 38.2% magnetite, using a 20% cut off.

On completion of the 2010 drilling a JORC compliant resource estimate for the DSO and magnetite for the Northern anomaly will be made followed by work on a bankable feasibility study to determine the project economics.

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Thu, 04 Mar 2010 13:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/162112/shree-minerals-sees-dso-and-magnetite-potential-at-nelson-bay-iron-project-5402.html