ELYSIUM RESOURCES LIMITED
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ELYSIUM RESOURCES LIMITED
Suite 705, 3 Spring Street, Sydney NSW 2000 Australia
Tel: (02) 9247 7744
ABN 45 115 593 005
Elysium Signs HoA to Explore for Potential Large Scale Copper-Gold Projects.
Elysium Resources Limited (“EYM” or “Company”) has agreed to terms of a Heads of Agreement
(“HoA”) with PT Gata Sumber Daya (“Gata”), through its proposed subsidiary, to earn 67.5% of the
Malang Project on East Java in Indonesia by advancing the exploration efforts at the copper and gold
targets.
Gata, headed by highly regarded geologist Mr Adi Maryono, will partner EYM and provide local
exploration and administrative expertise on its Indonesian projects. Mr Maryono is a long standing
associate of EYM’s Chief Technical Advisor Neb Zurkic, having worked together on Newmont
Mining’s world class Batu Hijau and Elang deposits. Mr Maryono led the team that took the Elang
deposit in Indonesia from early discovery and delineated a giant world-class deposit with reported
resources of ~25.3M ounces of gold and ~16.3B pounds of copper. Mr Maryono has previously held
management positions at BHP, having led the site team who discovered Reko Diq in Pakistan with a
reported endowment1 of ~41.7M ounces of gold and ~53.3B pounds of copper.
Gata through its experience in discovering and working directly on some of the largest copper-gold
deposits in the world has been able to identify prospective areas on the Indonesian Archipelago
through methodical reconnaissance exploration. The South Malang district along with three
porphyry Cu-Au deposits at Batu Hijau (2000 feasibility reserve2 reported at ~13.1Moz of Au and
~12.7 Blb of Cu), Elang (reported Indicated and Inferred resources3 of ~25.3 Moz of Au and ~16.3 Blb
of Cu) and Tujuh Bukit (reported Inferred resources4 of ~28.1 Moz of Au and ~19.0 Blb of Cu) are
located along the prospective Neogene magmatic arc belts of Eastern Sunda. These districts are
tectonically confined to the fertile eastern segment, from East Java to Sumbawa, that was
constructed on thinner island arc crust bounded by the Australian continental crust further east in
Sumba and Timor.
The four NE prospects are contained within a single 99.93 sq km concession named after the nearest
major city of Malang some 60km to the NW. EYM principles visited the prospects at Binglis and
Tambakrejo during April (see Figure #1). Large lithocap alteration footprints represent gold-silver-
copper exploration targets of overlying high sulphidation epithermal gold-silver and possibly
underlying porphyry gold-copper deposits. Previous rock chip sampling by IndoChina Goldfields
Limited in the 1990s and Asia Gold (Ivanhoe) in 2006 returned significant results. The four identified
prospective areas are geochemically characterized by elevated Au, Cu, As and Sb which are typical
pathfinders for high sulphidation epithermal mineralized systems. Significant results include 8.11 gpt
1
Tethyan Copper Company website
2
Newmont Mining Corporation website
3
AMEC Scoping Study, July 2010
4
NI 43-101 Technical Report, November 2012
Au, 0.10 % Cu, 490 gpt As and 36 gpt Sb5. Low oxide gold values (0.3 to 0.7 g/t Au) are reported at
Binglis by previous explorers, the results are consistent over the prospect area and associated with
multiple central silica ledges (pervasive and vuggy quartz zones).
EYM has incorporated a new Australian company called Malang Resources Pty Ltd (“Malang
Resources”) and agreed to lend funds to Malang Resources in an amount of US$200,000 on the
condition that Malang Resources agrees to subsequently advance these funds to Gata for the
purposes of securing the exploration permit (IUP) from the relevant Indonesian government
authority.
Under the HoA, EYM or Malang Resources have agreed to provide up to AUS$2M over a 3 year
period upon (interalia) Gata securing the IUP, EYM completing due diligence in respect of Gata and
the completion of the acquisition by Malang Resources of 75% of the share capital in Gata. Any use
of any such advances will be subject to Malang Resources consent. However, EYM expects that such
advances will be used for the purposes of systematic stream sampling, mapping and soil sampling
along with geophysical surveys over the 4 targets defined to date. This will be followed by drilling in
areas if warranted by results from the initial fieldwork. Good access to the prospects is by all-
weather roads with no airborne support for ground based field work being envisaged ensuring that
the bulk of the expenditure will be “in the ground.”
Following the acquisition, subject to the satisfaction of various conditions precedent Malang
Resources will pay the existing shareholders of Gata a total consideration of US $100,000 plus the
issue of a total of 40M fully paid EYM shares to be issued in equal monthly instalments over 20
months.
EYM is also currently considering a portfolio of additional opportunities both in Australia and that
have been identified by Gata in Indonesia. EYM has had informal discussions with holders of other
concessions at various stages of exploration. While reviewing its current assets, EYM is taking
advantage of the downturn in global and local markets by looking to grow its portfolio of copper-
gold projects. The Company is focussed on the core business of finding large, high quality mineral
deposits which build shareholder value first and foremost.
Mr Zurkic commented “Partnering with the right group is paramount in any jurisdiction and EYM is
pleased to welcome Gata, bolstering its technical expertise with individuals boasting an impressive
track record of discovery. At the same time Gata’s administrative team has extensive experience in
dealing with both local and the central government on all matters relating to mineral exploration
giving EYM comfort in security of tenure. It is my utmost pleasure to be able to work with Adi again
and it is somewhat of a coup for EYM to be able to secure his expertise so widely sought in the
industry.”
5
IndoChina Goldfields government reports.
Figure #1. IUP lease boundary location, showing the four prospective areas at Purwoharjo, Binglis, Tumpak Bedil and Tambakrejo. Figure #2. Mineralized silica ledges (pervasive silica and vuggy quartz zones) containing remnant sulphides 2 to 5% (pyrite and black sulphides) and abundant iron-oxides.
Figure #3. Mineralized silica ledges (pervasive silica and vuggy quartz zones) containing abundant sulphides 2 to 5% (pyrite, tennantite and tetrahydrite) consistent with low gold grades. Figure #4. Pronounced hill at the Binglis prospect composed of pervasive silica ledges (pervasive and vuggy quartz zones) containing abundant sulphides (pyrite and black sulphides) 2 to 5%, partially and totally oxidized. Figure #5. Silica ledges at the Binglis prospect with abundant iron oxides (dominant hematite after complex sulphides) indicative of oxide gold occurrence. Gold grades range from 0.3 to 0.7 g/t.
JORC Compliance Statement The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore reserves is based on information reviewed or compiled by Neb Zurkic BAppSc(Geol), MSc(Min & Energy Economics), a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and a Registered Professional Geoscientist with the Australian Institute of Geoscientists. Mr. Zurkic is employed by Zurkic Mining Consultants Pty Ltd. Mr. Zurkic has sufficient experience that is relevant to the styles of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr. Zurkic consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. Caution Statement Mineral property endowments and resources are stated as referenced. EYM has referenced the quantities as reported by the individual operators. The reported quantities may or may not be resource estimates as outlined by the JORC Code. EYM does not guarantee the veracity of the reported quantities and does not imply that these quantities will be discovered at the Malang Project. The Malang Project is an early stage exploration property; the Company is unaware of any historical resource estimates being estimated over the Malang Project area. The Company has included in the announcement the various established mineral deposits to illustrate the calibre and credentials of the partnership that EYM is entering into.
The Following table provides explanations required under JORC 2012
Section 1 Sampling Techniques and Data
Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (eg cut channels, random chips, or Random rock chip samples taken historically.
techniques specific specialised industry standard measurement tools appropriate
to the minerals under investigation, such as down hole gamma
sondes, or handheld XRF instruments, etc). These examples should
not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity Not representative. Sample taken to demonstrate anomalous
and the appropriate calibration of any measurement tools or systems mineralization over area of interest.
used.
Aspects of the determination of mineralisation that are Material to the Historical results appear to be associated with multiple central silica
Public Report. ledges (pervasive and vuggy quartz zones) as mapped by current
operators and are typical pathfinders for high sulphidation epithermal
Au-Ag mineralized systems.
In cases where ‘industry standard’ work has been done this would be The random sampling is taken in sufficient quantity and over an area
relatively simple (eg ‘reverse circulation drilling was used to obtain 1 believed to be expressive of the geological system that may lay
m samples from which 3 kg was pulverised to produce a 30 g charge beneath.
for fire assay’). In other cases more explanation may be required,
such as where there is coarse gold that has inherent sampling
problems. Unusual commodities or mineralisation types (eg
submarine nodules) may warrant disclosure of detailed information.
Drilling Drill type (eg core, reverse circulation, open-hole hammer, rotary air Not applicable at this time, no drilling was carried out.
techniques blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
or standard tube, depth of diamond tails, face-sampling bit or other
type, whether core is oriented and if so, by what method, etc).
Drill sample Method of recording and assessing core and chip sample recoveries Not applicable at this time, no drilling was carried out.
recovery and results assessed.
Measures taken to maximise sample recovery and ensure Not applicable at this time, no drilling was carried out.
representative nature of the samples.
Whether a relationship exists between sample recovery and grade Not applicable at this time, no drilling was carried out.
and whether sample bias may have occurred due to preferential
loss/gain of fine/coarse material.Criteria JORC Code explanation Commentary
Logging Whether core and chip samples have been geologically and Not applicable at this time, no drilling was carried out.
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies.
Whether logging is qualitative or quantitative in nature. Core (or Not applicable at this time, no drilling was carried out.
costean, channel, etc) photography.
The total length and percentage of the relevant intersections logged. Not applicable at this time, no drilling was carried out.
Sub-sampling If core, whether cut or sawn and whether quarter, half or all core Not applicable at this time, no drilling was carried out.
techniques taken.
and sample If non-core, whether riffled, tube sampled, rotary split, etc and Not applicable at this time, no drilling was carried out.
preparation whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the Sample preparation technique is unknown.
sample preparation technique.
Quality control procedures adopted for all sub-sampling stages to Not applicable at this time, no sub-sampling was undertaken.
maximise representivity of samples.
Measures taken to ensure that the sampling is representative of the in Not applicable for the type of sampling results reported.
situ material collected, including for instance results for field
duplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the material Not applicable for the type of sampling results reported.
being sampled.
Quality of The nature, quality and appropriateness of the assaying and Unknown.
assay data laboratory procedures used and whether the technique is considered
and partial or total.
laboratory For geophysical tools, spectrometers, handheld XRF instruments, etc, Not applicable at this time.
tests the parameters used in determining the analysis including instrument
make and model, reading times, calibrations factors applied and their
derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, Quality control procedures are unknown for the results stated.
duplicates, external laboratory checks) and whether acceptable levels
of accuracy (ie lack of bias) and precision have been established.
Verification of The verification of significant intersections by either independent or Not applicable at this time.
sampling and alternative company personnel.
assaying
The use of twinned holes. Not applicable at this time, no drilling was carried out.Criteria JORC Code explanation Commentary
Documentation of primary data, data entry procedures, data Data is historical and as sourced from government department
verification, data storage (physical and electronic) protocols. records.
Discuss any adjustment to assay data. No adjustments were made to the data.
Location of Accuracy and quality of surveys used to locate drill holes (collar and Not applicable at this time, no Mineral Resource estimation
data points down-hole surveys), trenches, mine workings and other locations undertaken.
used in Mineral Resource estimation.
Specification of the grid system used. Latitude and Longitude
Quality and adequacy of topographic control. Not applicable at this time.
Data spacing `Data spacing for reporting of Exploration Results. Spacing is variable and restricted to where outcrop is available.
and Samples are not intended for a Mineral Resource Estimate.
distribution
Whether the data spacing and distribution is sufficient to establish the No Resources estimation is carried out.
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and
classifications applied.
Whether sample compositing has been applied. No compositing of samples was carried out.
Orientation of Whether the orientation of sampling achieves unbiased sampling of The rock chip sample results are considered relevant to demonstrate
data in possible structures and the extent to which this is known, considering the scale of the alteration footprint.
relation to the deposit type.
geological If the relationship between the drilling orientation and the orientation Not applicable at this time, no drilling was carried out.
structure of key mineralised structures is considered to have introduced a
sampling bias, this should be assessed and reported if material.
Sample The measures taken to ensure sample security. Sampling is historical, no samples are available.
security
Audits or The results of any audits or reviews of sampling techniques and data. Not known.
reviewsSection 2 Reporting of Exploration Results
Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location and ownership including IUP(Industrial) number: 180/005/IUPE/421.302/2013
tenement and agreements or material issues with third parties such as joint Approximately 60km SE of Malang, Java, Indonesia.
land tenure ventures, partnerships, overriding royalties, native title interests, Malang Resources owns 75% of the share capital in Gata Sumber
status historical sites, wilderness or national park and environmental Daya, the remaining 25% is owned by Indonesian locals.
settings. Malang Resources is owned by EYM and Zuca Investments Pty Ltd
(90:10).
The security of the tenure held at the time of reporting along with any Tenure for industrial minerals is current and in good standing. The
known impediments to obtaining a licence to operate in the area. term is renewable after initial tenure is 3 years. Conversion to a metal
license is in process.
Exploration Acknowledgment and appraisal of exploration by other parties. IndoChina Goldfields Ltd and Asia Gold (Ivanhoe) carried out the
done by other reported rock chip sampling results to the relevant department office
parties upon relinquishment of the lease.
Geology Deposit type, geological setting and style of mineralisation. Mapped lithocap alteration is interpreted to represent gold-silver-
copper exploration targets of overlying high sulphidation epithermal
gold-silver and underlying porphyry gold-copper deposits.
Drill hole A summary of all information material to the understanding of the Not applicable at this time, no drilling was carried out.
Information exploration results including a tabulation of the following information
for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the basis that the Not applicable at this time, no drilling was carried out.
information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly
explain why this is the case.
Data In reporting Exploration Results, weighting averaging techniques, Reported rock chip results are point data as assayed.
aggregation maximum and/or minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material and should be stated.Criteria JORC Code explanation Commentary
methods Where aggregate intercepts incorporate short lengths of high grade Not applicable at this time.
results and longer lengths of low grade results, the procedure used
for such aggregation should be stated and some typical examples of
such aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values Not applicable at this time.
should be clearly stated.
Relationship These relationships are particularly important in the reporting of Not applicable at this time.
between Exploration Results.
mineralisation If the geometry of the mineralisation with respect to the drill hole Not applicable at this time, no drilling was carried out.
widths and angle is known, its nature should be reported.
intercept
If it is not known and only the down hole lengths are reported, there Not applicable at this time, no drilling was carried out.
lengths
should be a clear statement to this effect (eg ‘down hole length, true
width not known’).
Diagrams Appropriate maps and sections (with scales) and tabulations of Included in report.
intercepts should be included for any significant discovery being
reported These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional views.
Balanced Where comprehensive reporting of all Exploration Results is not Low level gold data is considered relevant in the context it was
reporting practicable, representative reporting of both low and high grades reported as it supports the interpreted geology.
and/or widths should be practiced to avoid misleading reporting of
Exploration Results.
Other Other exploration data, if meaningful and material, should be reported Not applicable at this time.
substantive including (but not limited to): geological observations; geophysical
exploration survey results; geochemical survey results; bulk samples – size and
data method of treatment; metallurgical test results; bulk density,
groundwater, geotechnical and rock characteristics; potential
deleterious or contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral Systematic soil and stream sediment sampling along with aerial and
extensions or depth extensions or large-scale step-out drilling). ground geophysics is anticipated to confirm preliminary field
investigations and assess whether drilling is warranted.
Diagrams clearly highlighting the areas of possible extensions, All future exploration work is commercially sensitive and will not be
including the main geological interpretations and future drilling areas, released to the market until definitive exploration work plans have
provided this information is not commercially sensitive. been made; diagrams will accompany these plans at that time.You can also read
