Mt Gunson Co-Cu

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Torrens Mining owns 75% of the Mount Gunson Copper Cobalt Project, located about 45 kilometres south of Woomera and 135km north of Port Augusta in South Australia. The remaining 25% interest is owned by ASX-listed miner Gindalbie Metals Ltd (Gindalbie) which, under a farm-in agreement, has the right to earn up to a 70% stake in Mt Gunson by solely financing feasibility studies up to $6.62m. Gindalbie has the right to acquire a further 5% interest to a total of 75% by payment of $1.5m to Torrens.

The Mt Gunson Project is located within Australia’s most productive copper belt, the Olympic Copper-Gold Province, and the leases are centred 100km south of BHP’s giant Olympic Dam mine and 40km south-west of the OZ Minerals Carrapateena deposit. The deposits are about 9km off the sealed Stuart Highway and are accessed by unsealed mining roads. There is also established access to electrical grid power and scheme water. Regular air services are available at Woomera, Olympic Dam and Port Augusta. There is a serviceable airstrip for light aviation at Mt Gunson.

The known resources at Mt Gunson consist of shallow, flat-lying deposits which are hosted by flat-lying Upper Proterozoic marine sediments of the Stuart Shelf, and are considered to belong to a world-wide family of sediment-hosted copper-cobalt deposits, such as those of the Central African Copper Belt, Poland’s Kupferschiefer and Michigan’s Copper Country.

The tenement package comprises three exploration licenses totaling 750km² of ground, and contains the MG14, Windabout, and Emmie Bluff deposits. The Windabout and MG14 deposits have been extensively drilled, and the resources calculated to JORC-12 standard. The Emmie Bluff deposit has only been partially drilled, and no resource can be quoted at this time.

The combined JORC-12 Indicated Mineral Resource for Windabout and MG14 is 19.50Mt at 0.81% Cu, 477ppm Co and 9g/t Ag comprising:

Windabout:
17.67Mt averaging 1.41% Cu eq
(0.77% Cu, 0.05% Co, 8g/t Ag)
(249,000 tonnes copper equivalent)

MG14:
1.67Mt averaging 1.67% Cu Eq
(1.83% Cu, 0.033% Co, 14g/t Ag)
(21,000 tonnes copper equivalent)

Please refer to Gindalbie ASX announcement dated 19 January 2018 for all information regarding the recently revised Mineral Resources for the Windabout and MG14 deposits and other evaluation activities at the Mt Gunson Project.

Emmie Bluff Mining Concept Study

A preliminary concept study to assess the viability of mining the Emmie Bluff Cu-Co-Ag prospect has shown a positive result. The Exploration Target is considered to be potentially similar in size and grade to the Windabout deposit. The mineralisation lies at about 400m below surface and will require underground mining. It is intended to continue this work, with further drilling and metallurgical testwork taking place in Stage 2.

Regional Exploration Assessment

A major exploration targeting campaign across the tenement package is underway by independent consultants to assess the potential for both additional sedimentary-hosted copper-cobalt mineralisation and IOCG mineralisation.

Gindalbie Metals Ltd. Farm In Agreement

In May 2017, Gindalbie commenced a 3 stage farm-in to acquire up to a 75% interest in the Mt Gunson Project. The first stage “Scoping Study (Reduction of Risk)”, which was concerned with the Windabout and MG-14 deposits, was successfully completed in May 2018.

The second stage Pre-Feasibility Study has been commenced which will also encompass a preliminary assessment of the deeper Emmie Bluff prospect. It is intended that following successful completion of this stage, the parties will progress the project into Stage 3 - a Definitive (Bankable) Feasibility Study.