Company News

Update on Mauritian Note Offer

Update on Mauritian Note Offer

African focussed gold and graphite explorer and developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) wishes to advise that the closing date of the Company’s Mauritian Note Offer (“Note Offer”) has been extended.

The Note Offer opened on January 27 and is now planned to close by 30 September 2020. The first day of trading of the Notes on the Stock Exchange of Mauritius DEM is expected to be 6 October 2020.

As previously advised (see ASX release dated 28 January 2020), Volt’s wholly owned subsidiary Volt Graphite Tanzania Plc (“VGT”), is aiming to raise US$15,000,000 through the issue of Senior Notes – with a greenshoe option of up to US$15,000,000 – to raise a total of US$30,000,000 by way of private placing on the Development and Enterprise Market (“DEM”) of the Stock Exchange of Mauritius (“SEM”).

Due to the widespread and continuing impact of the COVID-19 pandemic on financial markets where the Senior Notes are being marketed combined with the associated delays as institutions and investment groups change their work arrangements leading to the deferral of investment decisions and travel restrictions significantly impacting the Company’s ability to market the Senior Notes, the Company is providing additional time for investors to complete their internal due diligence and investment approval
process and allow the Company the opportunity to appropriately market the Senior Notes.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
Luiri Hill Gold Project Mineral Resource Estimate 851,000 ounces at 2.6 g/t gold

Luiri Hill Gold Project Mineral Resource Estimate 851,000 ounces at 2.6 g/t gold

Highlights include:

  • Luiri Hill Gold Project Mineral Resource estimate of 10.2 million tonnes at 2.6 g/t gold for 851,000 ounces of gold.
ClassificationMillion tonnesGrade (g/t gold)Gold ounces
Measured
Indicated
Inferred
1.0
4.3
4.9
2.7
2.8
2.4
86,000
381,000
385,000
Total10.22.6851,000
  • Matala deposit estimated to contain 674,000 ounces of gold and the Dunrobin deposit estimated to contain 177,000 ounces of gold
  • Matala and Dunrobin deposits are open at depth
  • Further project exploration potential
  • Leach Pads resource estimate to be progressed

Volt Resources Limited (ASX: VRC) (“Volt” or the “Company”) is pleased to announce the Mineral Resource estimate for the Luiri Hill Gold Project located in south-central Zambia, 120km westnorthwest of the Zambian capital of Lusaka.

Volt Managing Director, Trevor Matthews, said:

“This is a significant step forward for Volt’s gold business strategy with this updated Mineral Resource estimate confirming Luiri Hills as a quality gold project with outstanding economic potential.

“Combined with the numerous gold bearing stockpiles and local exploration potential, the Mineral Resource estimate provides the platform for early gold production based on the significant amount of study work already conducted for the Luiri Hill Gold Project.”

Optiro Pty Ltd (Optiro) has provided assistance to Volt Resources Ltd (Volt) with an updated Mineral Resource estimate for the Matala and Dunrobin deposits. These deposits are part of Volt’s Luiri Hill Gold Project, located in south-central Zambia, approximately 120 km west-northwest of the Zambian capital of Lusaka in the Mumbwa District. The Luiri Hill Gold Project is comprised of one large-scale exploration licence and a mineral processing licence with a total area of 31.38 km2.

The open pit Mineral Resources at Dunrobin and Matala are reported above a 0.5 g/t gold lower cut-off grade and within preliminary pit shells based on a gold price of US$1,800/oz and the potential underground resources, that are external to the pit shells, are reported above a 1.0 g/t gold lower cut-off (Table 1). These cut-off grades were selected by Volt and are commensurate with cut-off grades applied for the reporting of gold Mineral Resources elsewhere in Africa.

The Mineral Resources include Measured Mineral Resources of 1.0 Mt at 2.7 g/t gold (86 koz gold), Indicated Mineral Resources of 4.3 Mt at 2.8 g/t gold (381 koz gold) and Inferred Mineral Resources of 4.9 Mt at 2.4 g/t gold (385 koz gold). The total Mineral Resource is 10.2 Mt at 2.6 g/t gold for 851 koz gold.

Table 1 Dunrobin and Matala Mineral Resources as at June 2020

Notes
– Reported above a gold cut-off grade of 0.5 g/t for open pit potential (within a
preliminary pit shell) or 1.0 g/t or underground potential (external to the pit shell).

– Tonnages and grades have been rounded to reflect the relative uncertainty of the
estimate

Leach Pads Mineral Resource

The Company has previously advised of the presence of large leach pads at Luiri Hill containing gold bearing ore. Initially the Company is arranging for a representative sample to be analysed and is planning an auger drilling, survey and density measurement programme utilising the services of Optiro and Zambian based GeoQuest to enable the preparation of a JORC Mineral Resource estimate for the Leach Pads.

The Luiri Hill Gold Project

The Luiri Hill Gold Project is an advanced gold project with considerable drilling and studies already undertaken. The Matala and Dunrobin deposits, which collectively form the Luiri Hill Gold Project, have the potential to be developed into a medium scale gold mine in the near term.

The Project is comprised of one large-scale exploration licence (“LEL”) and a mineral processing licence (“MPL”) with a total area of 31.38km2 within the Matala Dome mineralised structure. Access to the Project area is by a bitumen sealed road, of approximately 120 km, in a westnorthwest direction from the Zambia capital city, Lusaka. The area has significant potential for gold occurrences both related to the Matala Dome mineralised structure and the surrounding Katangan rocks where there is potential for iron oxide copper-gold (“IOCG”) style mineralisation.

The Matala and Dunrobin deposits were majority owned by Luiri Gold Limited until 2014, when the Project was sold to a South African company. Volt has entered into a binding term sheet to acquire an 85% interest in the Luiri Hill Gold Project. Mineral Resource estimates were completed by Coffey Mining Pty Ltd (Coffey) in 2010 for the Matala deposit and in 2012 for the Dunrobin deposit.

These Mineral Resource estimates were classified and reported in accordance with the 2004 edition of the JORC Code. Optiro reviewed the input data, mineralisation interpretations, block models and documentation provided by Coffey and has used this data as the basis for the current resource models

Figure 1: Luiri Hill Gold Project location

Summary of JORC 2012 Table 1

A summary of JORC Table 1 (included as Appendix 1) is provided below for compliance with the Mineral Resource and in-line with requirements of ASX listing rule 5.8.1.

Geology and Mineralisation Interpretation

The Luiri Hill Gold Project is located in an area of south-central Zambia that is dominated by the Mwembeshi Shear Zone. A significant number of south-central Zambia’s gold and gold-copper occurrences are located within or close to this regionally significant structural zone.

Gold mineralisation at Dunrobin is associated with ferruginous (hematite) gossans within dolomites and limestones with quartz veining; and in quartz veins and quartz vein stockworks within quartz-mica schists. The interpreted mineralised domain extends for 280 m along strike, 600 m down dip and has an average thickness of around 20 m. The mineralisation extends to a maximum vertical depth of 250 m and is open down-dip.

The mineralised zone at Matala forms an east-northeast trend along the proposed hinge zone to the Matala Dome and parallel to the Mwembeshi shear zone to the south. The gold mineralisation is associated with tourmalinised breccias and veins. The main mineralised domain extends for 1,200 m along strike, 625 m down dip and has an average thickness of around 12 m. The mineralisation extends to a maximum vertical depth of 500 m and is open down-dip.

Drilling

Drilling techniques used at the Luiri Hill Gold Project comprise: reverse circulation (RC/4.75”) with a face sampling hammer, and diamond core drilling (DD) was collared with HQ3 (63.5 mm diameter) to the base of weathering and then an NQ (47.6 mm diameter, single tube) core size was routinely adopted for fresh rock drilling.

The drilling database used to define the gold mineralisation at Dunrobin comprises 141 RC drillholes for a total of 9,078.7 m, 25 DD holes for a total of 4,317.8 m and 9 RC/DD for a total of 1,422.3 m. In general, the drill spacing ranges from 20 m by 20 m within the upper parts of the deposit to 40 m by 40 m at depth, with some closer spaced drilling within the upper area of the deposit.

The drilling database used to define the gold mineralisation at Matala comprises 85 RC drillholes for a total of 9,830.7 m, 72 DD holes for a total of 12,977.9 m and 5 RC/DD drillholes for a total of 1,249.2 m. The drill spacing ranges from 20 m by 25 m within the upper parts of the deposit to 40 m by 60 m at depth.

Sampling techniques

RC samples were at collected at 1 m intervals and were split using a 50-50 riffle splitter. Diamond core samples were marked after geological logging and the sample boundaries honour changes in the geology (sulphide concentration, alteration and lithology). Sample lengths were generally restricted to a minimum of 30 cm and a maximum of 150 cm. The core was cut lengthwise using a diamond saw and the half core sent for assaying.

Sampling Analyses

Samples were sent to South Africa and prepared at Genalysis’ preparation facilities in Johannesburg. The pulps were split and the Johannesburg laboratory used Fire Assay for gold analysis, while a second pulp was freighted to Genalysis Laboratories in Perth (Australia) for gold analysis by Fire Assay (using a lead collection fire assay of a 50 g sample with aqua regia digestion and an AAS finish) and silver, lead, zinc, copper and arsenic by Aqua Regia technique, followed by an atomic absorption spectrometer (AAS) reading.

Estimation Methodology

Optiro completed a gold Mineral Resource estimate for the Dunrobin deposit using a categorical indicator kriging (CIK) technique to define mineralised’ material within a wireframed volume of the mineralisation interpreted by Coffey in 2012. The categorical indicator was estimated to define volumes containing 0.3 g/t gold mineralisation within the mineralised wireframe.

The block model was built using a parent block size of 15 mE by 15 mN on 2 m benches and the parent blocks were allowed to sub-cell down to 5 mE by 5 mN by 1 mRL. The sub-cell size was used for development of the CIK model and for definition of the ‘mineralised’ material and for postprocessing using local uniform conditioning (LUC).

The gold Mineral Resource estimate for the Matala deposit was constrained within a mineralisation wireframe interpreted by Coffey in 2010 using a 0.4 g/t gold cut-off grade. The block model was built using a parent block size of 25 mE by 5 mN on 4 m benches and the parent blocks were allowed to sub-cell down to 5 mE by 2.5 mN by 2 mRL to more accurately represent the geometry and volume of the mineralised domain and for post-processing using LUC.

The parent (panel) block grades were post-processed using LUC to provide a theoretical indication of the tonnage and grade conditions that may be encountered at Dunrobin and Matala if more selectivity is applied during mining, based on data from closer-spaced grade control data becoming available or visual indications of the presence of quartz veining.

Mineral Resource Classification

The Mineral Resources at Dunrobin have been classified as Measured, Indicated and Inferred and the Mineral Resources at Matala have been classified as Indicated and Inferred on the basis of confidence in geological and grade continuity and taking into account data quality, data density and confidence in the estimation of the gold content (using the modelled grade continuity and kriging metrics as criteria).

In general, the mineralisation at Dunrobin that has been tested by the close spaced (up to 20 m by 20 m) 2012 drilling has high confidence in the geological interpretation and, having higher estimation quality, were classified as Measured. Areas where the drill spacing is up to 40 m by 40 m that have good confidence in the geological interpretation and estimation quality were classified as Indicated. Areas at depth, that have been tested by wider spaced drilling and where there is interpreted geological continuity, have been classified as Inferred.

In general, the mineralisation at Matala that has been tested by the close spaced (20 m by 25 m) drilling in the upper areas of the deposit has high confidence in the geological interpretation and, having higher estimation quality, were classified as Indicated. Areas at depth, that have been tested by wider spaced drilling and where there is interpreted geological continuity have been classified as Inferred.

Cut-off Grade

Preliminary pit shells were developed using a gold price of US$1,800/oz. The Mineral Resources have been reported within these pit shells above a cut-off grade of 0.5 g/t gold and external to the pit shells using a cut-off grade of 1 g/t gold.

Mining Factors

Preliminary pit shells, developed using a gold price of US$1,800/oz, have confirmed RPEEE for extraction of the near surface material by open pit mining. In addition, it is expected that a portion of the defined gold mineralisation outside of the US$1,800/oz pit has RPEEE by underground mining methods.

Metallurgical Factors

Detailed metallurgical test work was completed on composite samples from Dunrobin for a Feasibility Study completed by Coffey 2013. These indicated that the average metallurgical recovery over the LOM is 88.1%. An earlier scoping metallurgical study indicated average recoveries of 94% at Matala.

Project Acquisition

The proposed acquisition of the Luiri Hill Gold Project continues Volt’s progression in establishing a new gold business whilst continuing with the development of its Bunyu Graphite Project in Tanzania. Together with the proposed acquisition of the Guinea gold projects announced on 14 May 2020 (the “Guinea Gold Projects”), the acquisition of the Luiri Hill Gold Project will provide Volt with a combination of highly prospective grass roots exploration in Guinea together with an 85% interest in an advanced gold project in Zambia that has near term development potential.

The creation of a new gold business provides Volt shareholders with the opportunity to participate in the potential value accretion from gold exploration and development activities, particularly through leveraging the Company’s existing extensive networks in Africa.

The Company has entered into a binding term sheet to acquire an 85% interest in the Project. Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries, the execution of a share sale agreement in a form acceptable to Volt, as well as the approval of Volt shareholders to the issue of the consideration shares to be sought at an upcoming meeting of Volt shareholders to be held at 10.00am Monday 20 July 2020.

Settlement of any acquisition is expected to occur within 5 business days of shareholder approval to the issue of the proposed consideration shares for the acquisition of an 85% interest in the Luiri Hill Gold Project being obtained.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
Luiri Hill Gold Project Updated Mineral Resource Estimate In Progress

Luiri Hill Gold Project Updated Mineral Resource Estimate In Progress

Highlights include:

  • Update of Luiri Hill Gold Project Mineral Resource estimate being prepared in accordance with the 2012 JORC code and will be released in the near future.
  • Technical site visit completed as part of the due diligence programme confirmed the existence of various large stockpiles, pads and dumps.
  • The Project area has good existing power and water infrastructure.
  • The Luiri Hill Gold Project is an advanced project with metallurgical, historic Mineral Resource estimates, feasibility studies and significant other work undertaken by credible international consultants with over US$20 million expended on the project to date.
  • Shareholder meeting to approve issue of Volt shares to Luiri Hill Gold Project vendors scheduled for Monday 20 July 2020.

Volt Resources Limited (ASX: VRC) (“Volt” or the “Company”) is pleased to provide an update on the preparation of the Mineral Resource estimate in accordance with JORC code 2012 requirements, the acquisition due diligence and other activities for the Luiri Hill Gold Project located in south-central Zambia, 120km west-northwest of the Zambian capital of Lusaka.

The proposed acquisition of the Luiri Hill Gold Project continues Volt’s progression in establishing a new gold business whilst continuing with the development of its Bunyu Graphite Project in Tanzania. Together with the proposed acquisition of the Guinea gold projects announced on 14 May 2020 (the “Guinea Gold Projects”), the acquisition of the Luiri Hill Gold Project will provide Volt with a combination of highly prospective grass roots exploration in Guinea together with an 85% interest in an advanced gold project in Zambia that has near term development potential.

The creation of a new gold business provides Volt shareholders with the opportunity to participate in the potential value accretion from gold exploration and development activities, particularly through leveraging the Company’s existing extensive networks in Africa.

The Luiri Hill Gold Project

The Luiri Hill Gold Project is an advanced gold project with considerable drilling and studies already undertaken. The Matala and Dunrobin deposits, which collectively form the Luiri Hill Gold Project, have the potential to be developed into a medium scale gold mine in the near term.

The Luiri Hill Gold Project was previously majority owned by Luiri Gold Limited, a company that was listed on ASX (ASX code “LGM”) until 2014, when it was sold by Luiri Gold Limited to a South African company.

The Project is comprised of one large-scale exploration licence (“LEL”) and a mineral processing licence (“MPL”) with a total area of 31.38km2 within the Matala Dome mineralised structure. Access to the Project area is by a bitumen sealed road, of approximately 120 km, in a westnorthwest direction from the Zambia capital city, Lusaka.

The area has significant potential for gold occurrences both related to the Matala Dome mineralised structure and the surrounding Katangan rocks where there is potential for iron oxide copper-gold (“IOCG”) style mineralisation.

JORC 2012 Mineral Resource Estimate

Coffey Partners Pty Ltd (Coffey) previously reported a JORC (2004) Mineral Resource estimate (Measured, Indicated and Inferred) in relation to the Matala and Dunrobin deposits. A significant amount of historical information including drilling and assay data, resource models and reports has been obtained from Coffey.

The Company has engaged geological and mining consultants, Optiro Pty Ltd, to prepare a Mineral Resource estimate in accordance with the 2012 edition of the JORC Code. Volt plans to release the updated Mineral Resource estimate in the near future.

Most of the gold mineralisation is near surface and therefore suitable for open cut mining. Volt considers there is an opportunity, with the current and forecast gold price, to reduce the economic cut-off grade and potentially increase the gold ounces available for extraction from what has previously been used to report the historic Mineral Resources.

Figure 1: Luiri Hill Gold Project location

Significant Work Undertaken to Date

Over US$20 million has been invested in the Luiri Hill Gold Project to date with extensive RC and diamond drilling programmes, Mineral Resource reports, metallurgical test work programmes and studies, and feasibility studies completed by consultants Coffey (2013) and PenMin (2016) and various other activities.

The current Luiri Hill Gold Project exploration licence was historically covered by a mining lease and was granted an environmental permit in 2013 covering the same footprint of what is now the LEL. A baseline socioeconomic study and Local Labour and Economic Development Plan have also been prepared for the Project by past owners. The historical studies and plans provide a good basis to prepare updated reports and plans to facilitate early project development.

In addition to the Dunrobin and Matala deposits, a further twenty-four gold prospects have been identified within the area of the LEL as being targets for further exploration work. Based on historical exploration activity including soil geochemistry, rock chip/trench sampling, RC drilling and the associated reports, targets within the LEL include Eclipse, Matala West, Tanduma, Chosa, Shadreck, Shadreck South and Jack & Rode.

Previous resource modelling has also identified the potential for the Matala deposit to extend deeper underground below the currently identified
historic Mineral Resources.

Figure 2: Luiri Hill Gold Project licence area in relation to gold and gold/copper occurrences

Luiri Hill Project Information – Due Diligence Programme

The due diligence programme is advanced with Lusaka based technical consultants, GeoQuest Ltd (“GeoQuest”), recently conducting a site visit to Luiri Hill which confirmed the general layout of site infrastructure, buildings and historical mines. GeoQuest also confirmed the presence of a number of stockpiles, pads and dumps which will be the subject of further survey work, sampling, drilling and resource modelling to determine the quantity of material and potential gold resource ounces.

The Company considers these stockpiles and dumps represent an opportunity to develop a relatively simple processing facility to enable early low-cost gold production from the Luiri Hills Project.

GeoQuest also commented that access across the LEL is generally good via a network of unmaintained dirt roads and tracks. The areas are well drained with no significant drainage problems encountered.

The Matala mine lies approximately 7 km east of the Dunrobin mine and can be accessed through the network of tracks relatively easily. The Matala mine and associated historical dumps are located within the LEL.

The Dunrobin site, leach pads, ore (oversize) stockpile, overburden (low grade), all current mineral processing activities, approximately 60% of the historical Dunrobin open pit and the water pumping station and associated water boreholes lie within the Bukomo MPL which is situated within the LEL boundary.

Infrastructure and Buildings

GeoQuest confirmed the presence of power and water infrastructure as follows:

  • Power supply options include a 330kV transmission line that traverses the LEL with an 88kV transmission line also cutting through the LEL. A smaller 11kV transmission line is connected to the Dunrobin mine office.
  • Water supply is currently sourced through existing bores on site including four 30cm bores
  • in one borefield, one 30cm bore and a 15cm bore in another location and a standalone 15cm bore. There appears to be sufficient quantities of ground water for future operations.

The following buildings were also identified on site:

  • Core and bulk RC sample/duplicate RC sample building.
  • Small historical office block (single storey) which appears to be now used as accommodation for site personal and with at least one room dedicated for use by the Zambian Police.
  • Small historical laboratory block which appears to be now used as accommodation, some office and storage areas.
  • Historical infrastructure related to previous operators – concrete bases, old ponds etc.

Small Scale Processing

The existing owners (Bukomo) are currently operating a small scale, low cost gravity gold recovery circuit (sluicing operation) making use of historical concrete foundations and ponds. It is processing auriferous dump material sourced from Matala (Mill Tailings Dump) and gold rich red brown soils overlying the Chosa prospect which lies a short distance to the north within the tenement package.

A second operation is also a low cost (though larger operation) gravity gold recovery circuit (sluicing operation) occupying the same area as the historical crushing plant from the 1990s. Sourced material appears to be originating from Matala (Mill Tailings Dump) and also from Shadreck South, a previous artisanal mining area to the south of the tenure package, the mineralisation associated with quartz veining in hematite, iron rich, gossanous rocks.

Once the acquisition is completed Volt will assess the small-scale operations gold production performance including recoveries, costs, safety, environmental, social and other factors and consider options for the continuation and upgrading of processing.

Stockpile, Leach Pads and Dumps

The Project has significant existing stockpiles, leach pads and dumps of gold bearing ore and processed material, which Volt considers may be material in terms of providing a funding mechanism for the completion/updating of studies to progress to a mining licence, advance any remaining environmental and other approvals and transition to a development decision.

GeoQuest confirmed the existence of the following stockpiles, leach pads and dump at the Dunrobin mine site.

Dunrobin Leach Pads

Approximate 230m upper length, 250m base length, upper width of 100m, and a base width of 100 to 140m, though with variability in along strike and across strike dimensions. An average approximate height from base to the top surface is in the order of 10m. In essence, the leach pads are in place with similar dimensions to those outlined in an historical report dated 2009 (see Figure 3 below).

Reports have identified the large leach pads contain gold bearing ore. Initially the Company is arranging for a representative sample to be analysed and is planning an auger drilling, survey and density measurement programme to enable the preparation of a JORC Mineral Resource estimate for the Leach Pads.

Figure 3: Dunrobin Leach Pads

Dunrobin Ore (Oversize) Stockpile

Based on preliminary observations the ore stockpile extends over an area of ~230m NW-SW and 80-100m NW-SE with an average height of approximately 2m, though in places it can reach ~5m. Typically, the dump is composed of large oversize boulders, up to 1-2m in diameter, though two
internal areas are essentially void of any large boulders, but rimmed by them and could well be underlain by stockpile material and appear to be advancing dumping access tracks.

A range of rock types are visible on the surface including ferruginous (hematite) gossanous (limonitic) rocks, weakly carbonate altered banded hematite-calcitic (veined) gossanous rocks, quartz veining in association with various rocks, carbonate (dolomite / limestone) rocks and degraded quartz mica schist loose material / rubble which have originated from the Dunrobin open pit under historical mining operations.

Dunrobin Overburden Dump (Low Grade)

The dump is located east of the haul road which runs from the Dunrobin open pit towards the previous Dunrobin crushing and leaching operation towards the northeast. The approximate dimensions are 285m by 250m with a broad circular coverage with an access track running through the centre trending southeast with dumping off to the side, to the northeast, the southwest and to the southeast.

The height of the dump varies: on the southwest margin it is approximately 5m, whilst on the northeastern margin it is upwards of 10m, and over the central portion in close vicinity to the access track, it is generally in the range of 2 to 5m.

Figure 4: Mineral Processing Licence infrastructure, processing activities and Dunrobin
stockpiles/dump/pads including open pit.

In addition to the above, at the Matala historical mine site a number of dumps are reported as follows:

Mill Tailings Dump

Occupies an area immediately adjacent to the north of the Matala main shaft over an approximate area of 65m west-east by 60m north-south. It is reported that the dump once had a vertical thickness of 20 to 30m close to the shaft, but recent significant artisanal activity and the current removal of material by Bukomo for gravity separation at Dunrobin has removed significant material from the dump. The dump contains a range of material; schists, gneissic rocks and highly weathered / altered mineralised rocks representative of the mineralised assemblage as noted above.

Slimes Dump

Located immediately to the north of the base of the Mill Tailings Dump, the Dump extends northwards and ranges in height from ~2m to ~5-10m at its northern margin. It covers an approximate area of 110m north-south by 60m west-east. A recent excavation indicates a nonstratified, very fine grained brown to red-brown silt and/or clay.

A Waste Dump and Scree Rubble Deposit are also reported but were not visited due to time constraints.

Project Acquisition

The Company has entered into a binding term sheet to acquire an 85% interest in the Project.

Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries, the execution of a share sale agreement in a form acceptable to Volt, as well as the approval of Volt shareholders to the issue of the consideration shares to be sought at an upcoming meeting of Volt shareholders to be held at 10.00am Monday 20 July 2020.

Settlement of any acquisition is expected to occur within 5 business days of shareholder approval to the issue of the proposed consideration shares for the acquisition of an 85% interest in the Luiri Hills Gold Project being obtained.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
World Class Birimian Gold Belt Exploration Update – Mandiana and Konsolon Projects

World Class Birimian Gold Belt Exploration Update – Mandiana and Konsolon Projects

Highlights

  • Mandiana Project – Volt’s in-country geology team has commenced field activities in its Monebo and Nzima permits. The Nzima permit is in close proximity to the Nzima large artisanal mining operation. Work completed includes:
    • Geological mapping of artisanal workings and collection of grab samples.
    • Numerous active artisanal workings have been mapped across both permits.
    • A total of 90 grab samples have been collected in Monebo (11 grab samples) and Nzima (79 grab samples) permits. The samples have been despatched to SGS Mali for analysis.
  • Konsolon Project – The company has undertaken additional review of the Konsolon legacy soil geochemistry. Multiple gold in soil anomalies were identified between 1.0km and 2.5km in length across this permit.
    • Review of soil samples in this dataset has identified high grade gold including 20.25g/t, 12.87g/t, 5.12g/t, 4.97g/t and 3.21g/t.
    • Volt will collect grab samples across prospective zones prior to undertake an auger geochemistry program to refine drill targets.

Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide an exploration update on its Mandiana and Konsolon Projects, which are part of the richly mineralised West African Birimian Gold Belt.

The Company has reviewed historical soil sample geochemical data for the Konsolon Project. A total of 3,544 samples were collected by Crew Gold Corporation from the Konsolon area in 2006. The collected samples included systematic grid soil samples and grab samples.

Very significant results of up to 20.25g/t Au were obtained. Volt has made some changes to its initially planned soil sampling program, where it will now collect a lesser number of samples to verify the previous explorer’s results before planning the next phase of exploration.

Volt’s in-country geology team has also started exploration in the highly prospective Nzima and Monebo permits. Initial works included site visits, mapping and collection of grab samples from the artisanal workings.

The team has mapped several artisanal workings in the Nzima permit and a limited number of new workings in the Monebo permit. A large area in the north of the Nzima permit is covered by artisanal activities and a total of 79 rock samples have been collected in the area.

The artisanal workings to the NW of Monebo permit are new while those at the centre of the permit are old. The team has collected 11 rock samples in the Monebo permit. The collected samples have been dispatched to SGS Mali for analysis.

Guinea Projects and Permits

Volt has six permits covering an area of 348.7 square kilometres in Guinea’s highly prospective Siguiri Basin and has grouped them into three projects – the Kouroussa Project, Mandiana Project and Konsolon Project. See Figure 1 below for the project and permit locations.

The Kouroussa Project comprises three permits, the Kouroussa, Kouroussa West and Fadougou permits. The Kouroussa and Kouroussa West permits border the Predictive Discovery Limited (ASX:PDI) permit which was the subject of a recently announced1 discovery of high-grade gold mineralization. To the NE, the Kouroussa Permit borders the Kouroussa mine and the Fadougou permit is located 13km NE of the same mine.

The Konsolon Project constitutes one prospective permit. The permit consists of several geochemical gold in soil anomalies identified by previous explorers.

The Mandiana Project comprises the highly prospective Nzima permit and Monebo permit. The Nzima permit borders the Nzima artisanal mine and is 15km SW of the 1.1Moz Tri-K Deposit owned by Managem.

Figure 1. The Permits located in the Suguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

Mandiana Project

Field works

Volt’s geology team has commenced field work activities on the Mandiana Project permits. The activities have included site visits to both permits, mapping of artisanal workings and collection of grab samples from the
workings and available outcrop. Figure 2 below shows the location of Nzima and Monebo permits over a regional geology map and recorded gold occurrences.

Figure 2. Nzima and Monebo Permits on regional scale geological map
(Digitized from Guinea Government Geological Map of 2006)

Nzima permit. A site visit to the permit has identified very large areas (500m to 1,400m in length) of artisanal mining activities concentrated to the north of the permit.

  • The artisanal workings formed in clusters have been mapped. Mapping of the workings show that some of the artisanal activities are in line with interpreted NW-SE and NE-SW structures in the regional geological map.
  • Gold mined by artisanal miners is hosted mainly in quartz veining. Similarly, the same host for gold is reported by the nearby Nzima artisanal mine.
  • A total of 79 samples including quality control samples have been collected from the artisanal workings. The samples have been dispatched to SGS Mali laboratory for analysis.

The photos below show the artisanal activities observed in the permit area and Figure 3 shows the location of identified artisanal workings on the Nzima Permit.

Figure 3. Location of identified artisanal workings on the Nzima permit.

Monebo permit. The permit is isolated and covered by small trees and bushes. The team visited the area three times to map existing and old artisanal workings, collect grab samples and observe the geology of the
area.

  • Three virgin and old artisanal mining activities were observed to the east and centre of the permit respectively. The artisanal workings were mapped and 11 rock samples collected from the workings.
  • During this reconnaissance field trip only ~20% of the permit has been assessed to date.
  • The area is dominated by highly weathered undifferentiated country rock, overlaid by lateritic duricrust. Several quartz veins crosscutting the weathered country rock were observed.
  • Artisanal miners are extracting gold from laterite materials (6-8m thick), mineralized quartz veins and saprolite materials.
Figure 4. Location of identified artisanal workings on the Manebo permit.

Next Steps

Nzima Permit. When the initial results of collected grab samples become available, the team will plan a systematic auger drilling geochemical sampling program to generate initial drill targets.

Monebo Permit. In the areas with artisanal workings, the team will plan a systematic auger drilling geochemistry program to determine initial targets. For the areas that are not disturbed, the team is planning to execute a systematic soil sampling program. The soil sampling program will be followed by a shallow auger drilling geochemical sampling program.

Konsolon Project

The Company has undertaken additional review of the historic soil and grab sampling geochemistry results. The data resulted from exploration undertaken in 2006 by Crew Gold Corporation.

Volt’s ASX announcement dated 15 June 2020 highlighted a number of 1.0km to 2.5km gold in soil anomalies. The soil samples have been reviewed in further detail and have returned some high-grade gold values in the data including 20.25g/t, 12.87g/t, 5.12g/t, 4.97g/t and 3.21g/t.

Volt will undertake additional reconnaissance grab sampling and then plan an auger geochemistry program to generate in-situ gold targets for drilling. Figure 5 below is a map showing the location of all the results and the high-grade sample results.

Figure 5. Konsolon soil sampling grid with high grade sample results.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
World Class Birimian Gold Belt Exploration Update – Kouroussa Project and Additional Information

World Class Birimian Gold Belt Exploration Update – Kouroussa Project and Additional Information

Highlights

  • Volt and Sahara geology teams have completed the desktop study phase for new Guinea Gold Projects and commenced initial field exploration works.
  • The desktop studies and initial site visits have identified the presence of Birimian greenstone sequences in all Kouroussa Project permits. The geology is similar to Predictive Discovery’s (PDI:ASX) permits and the nearby Kouroussa and Kiniero Gold Projects currently in development.
  • In the Kouroussa area, significant artisanal workings have been mapped along a NE interpreted structural trend through the Kouroussa and Fadougou permits. Gold panning of material from one of the artisanal pits produced visible gold. This structural trend hosts the Predictive Discovery and Cassidy Gold Projects.
  • Volt has extended its Kouroussa West permit area to the south, doubling its size. Active small scale gold mining has been identified 1.5km south of the permit area.
  • Historical data compilation of the Konsolon Permit has identified multiple “gold in soil” anomalies between 1 to 2.5km in length. This project is located ~20km West from Nordgold’s Lefa Gold Mine which has resources and reserves of over 6 million ounces.

Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide an exploration update on its Guinea Gold Projects located in the Siguiri Basin, which forms part of the richly mineralised West African Birimian Gold Belt. The geology team has finalized desktop studies on most of the Guinea Permits.

The teams have now commenced field exploration activities. Initial activities include geological mapping and sampling of outcrop and artisanal workings and collection of soil samples. This will be followed up
shortly with Auger Geochemistry and then reconnaissance drilling.

Desktop studies and initial ground works have confirmed the presence of extensive Birimian Greenstone sequences in all the permits including mineralised quartz veining, active artisan mining and extensive
lateritic cover.

Guinea Projects and Permits

Volt has six permits in Guinea’s highly prospective Suiguri Basin and has formed them into three regions – the Kouroussa Project, Mandiana Project and Konsolon Project. See Figure 1 below for the project and permit locations.

The Kouroussa Project is formed by three permits, the Kouroussa, Kouroussa West and Fadougou permits.The Kouroussa and Kouroussa West permits border the PDI permit which was the subject of a recently
announced discovery of high-grade gold mineralization.

The Konsolon Project constitutes one large permit. The permit has a NW-SE trending soil geochemical anomaly identified by previous explorers.

The Mandiana Project is formed by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima gold deposit which is operated by small scale miners.

Permits located in the Suguiri Basin
Figure 1. The Permits located in the Suguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

Kouroussa Project

Desktop studies
The studies included historical data compilation, GIS and Remote Sensing, and conducting desktop interpretation of the data to generate initial targets.

  • Review of previous geological maps covering the Kouroussa Project (Kouroussa, Kouroussa West and Fadougou permits) have identified a series of EW (Fault 1 and Fault 2) trending faults displaced by a second set of NS (Fault 3) trending fault systems. A final NE sequence of interpreted faults is aligned with the main know deposits in the region. Gold mineralization seems to be associated with the fault systems which cut through the Kouroussa and Kouroussa West permits (see Figure 2 below).
  • Large parts of the permits are dominated by Birimian meta-volcanic and meta-sedimentary sequences. The areas have been identified as very prospective as they have similar geology to the nearby Predictive Discovery (PDI) and Cassidy Gold(Private) gold development projects.
Figure 2. Permits on regional scale geological map (Digitized from Guinea Government Geological Map of 2006)

Field works
The geology teams have commenced field work activities on the Kouroussa Project permits. Activities have included site visits to all the permits and collection of soil and rock samples.

Kouroussa permit. A site visit to the permit has identified an area of artisanal mining activities in the NE border with the Kouroussa Mine known locally as the “World Bank”.

Several artisanal working clusters have been mapped in the area measuring approximately 600 metres by 800metres. The workings seem to be an extension of mineralization from Cassidy Gold’s Kouroussa Gold Project.

The artisans are mining gold from lateritic cover. The area coincides with an interpreted NE Fault sequence. The area is covered by mineralized laterites. Grab sampling from these artisanal workings is in progress and
will be sent for assaying.

The photos below are of artisanal workings and Figure 3 below shows the location of identified artisanal workings on the Kourassa Permit.

Video of artisanal workings in the NE of the Kouroussa permit
Figure 3. Location of identified artisanal workings on the Kouroussa permit.

Kouroussa West permit. The permit is in an isolated area covered by shrubs and small trees. The team has visited the area twice to conduct geological reconnaissance. Due to the exploration potential identified during the site visits, Volt has doubled its permit area from the initial size of 47.9km2 to 99.83km2

  • Old artisanalshafts/pits and active workings were observed about 1.5km to the south of the permit boundary. The shafts and pits are following a 420 NE trending mineralized quartz veining system with mineralized lateritic cover.
  • The permit area is covered by lateritic cover materials with quartz fragments scattered in the area. The geology is a continuation ofthe geology observed in the artisanal workingssouth of the permit.
  • Some gold mineralization is associated with sulphides in quartz veins. Artisans are extracting their gold from both laterites and quartz veins.
Figure 4. Map showing the increase in the Kouroussa West permit area, artisanal workings to the south and PDI’s recent discovery to the north-east.

Fadougou permit. The permit is covered by small trees, bushes and shrubs. The team has visited the area twice to conduct geological reconnaissance.

  • The area features numerous artisanal mining activities. Several artisanal pits/shafts clusters have been observed and mapped.
  • In this reconnaissance field trip, only a small area was able to be visited. The artisanal workings identified on this visit are in the NE of the permit.
  • The area has a very thick laterite cover overlaying saprolitic material. Several quartz veins have been observed. The artisans are extracting gold from lateritic cover, saprolites and quartz veins.
Figure 5. Location of identified artisanal workings on the Fadougou permit

Next Steps

Kouroussa Permit. Sahara and Volt teams will continue collecting grab samples in the artisanal workings area known as the “World Bank”. Following sampling and assay, an auger drilling geochemical sampling
program will be undertaken in the area highlighted in Figure 3.

Kouroussa West Permit. The teams will execute a systematic soil sampling program to generate initial targets. The soil sampling program will be followed by a shallow auger drilling geochemical sampling program.

Fadougou Permit. Volt’s team will continue collecting grab samples in the area identified to have artisanal workings. The sampling step will be followed by an auger geochemical sampling in the area that has active
and old workings. For the areas that are not disturbed by human activities, the team will conduct a systematic soil sampling program.

Mandiana Project

The Mandiana Project is constituted by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima gold deposit which is operated by small scale miners.

Desktop Studies
The team has finished the desktop studies for the Mandiana Project. The desktop work included gathering of previous information, geo-referencing, digitization and conducting interpretation of the data to generate initial exploration targets. Further information obtained from this work and next steps will be advised in the near future.

Figure 6: Mandiana Project permit locations and regional gold occurrences

Konsolon Project

The Project is located in a highly prospective gold region with several gold occurrences and artisanal mining activities along with the Nordgold Lefa (Lero) operating gold mine 20km East. Sampling conducted by previous explorers identified a NW-SE trending gold in soil geochemical anomaly within the permit area.

The received data is still under review and further information will be reported in the near future. The geology of the area includes meta-sedimentary rocks of the Lower Proterozoic Birimian Group.

The area is covered by laterites formed on the metamorphized terrigenous and volcanogenic rocks of the Birimian Group. The geology is very analogous with the Lero Gold Mine.

Soil and shafts sampling campaign

The team has developed a soil sampling program in an area that was identified as a NW-SE trending geochemical anomaly by previous explorers. The soilsamples have been planned at a grid of 100m by 500m to cover all the anomalous area with a buffer of 300m – 400m. The program will comprise of 1,800 soil samples and additional samples from sampling of artisanal mining shafts.

Historical Konsolon gold in soil anomaly1

1 All samples are displayed per the legend. Samples less than 12.5ppb Au are gridded as blue and considered background.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
WORLD CLASS BIRIMIAN GOLD BELT EXPLORATION UPDATE – KOUROUSSA PROJECT

WORLD CLASS BIRIMIAN GOLD BELT EXPLORATION UPDATE – KOUROUSSA PROJECT

Highlights

  • Volt geology team has completed the desktop study phase for Kouroussa and Mandiana Projects and commenced initial field exploration works.
  • The desktop studies and initial site visits have identified the presence of Birimian greenstone sequences in all Kouroussa Project permits. The geology is similar to Predictive Discovery’s (PDI:ASX) permits and the nearby Kouroussa Mine.
  • Significant artisanal workings have been mapped in a NE line through the Kouroussa and Fadougou permits. Panning of material from one of the artisanal pits produced visible gold and nuggets.
  • Due to its increased potential Volt has extended its Kouroussa West permit area to the south, doubling its size. Old and virgin artisanal gold mining has been identified 1.5km south of the permit area.
  • Mapped artisanal shafts in Kouroussa West, Kouroussa and Fadougou are in line with PDI’s discovery and the Kouroussa Gold Mine. This strongly suggests a NE-SW mineralized trend.

Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to provide an exploration update on its Guinea Gold Projects located in the Siguiri Basin, which forms part of the richly mineralised West African Birimian Gold Belt. Volt’s geology team has finalized its desktop studies on the Kouroussa and Mandiana Projects.

The team has now commenced field exploration activities on all three permits within the Kouroussa Project. Initial activities include site visits, mapping and sampling of artisanal workings and mines and collection of soil samples.

Desktop studies and ground works have confirmed the presence of extensive Birimian Greenstone sequences in all the permits forming the Kouroussa Project. The permits have lower and undifferentiated Birimian rocks with lateritic cover, quartz veining and saprolitic materials. Similar geology is reported in the nearby PDI permits and Kouroussa mine.

The team has mapped a number of artisanal workings in the NE of the Kouroussa and Fadougou permits. Some old and virgin workings have been observed 1.5km south of the Kouroussa West Permit boundary. Collection of grab samples from these artisanal workings for assaying is in progress.

Guinea Projects and Permits

Volt has six permits in Guinea’s highly prospective Suiguri Basin and has formed them into three projects – the Kouroussa Project, Mandiana Project and Konsolon Project. See Figure 1 below for the project and permit locations.

The Kouroussa Project is formed by three permits, the Kouroussa, Kouroussa West and Fadougou permits. The Kouroussa and Kouroussa West permits border the PDI permit which was the subject of a recently announced discovery of high-grade gold mineralization which included a drilling intersection of 46m@6.58g/t Au and is described as open in all directions.

The Konsolon Project constitutes one large permit named Konsolon. The permit has a NW-SE trending soil geochemical anomaly identified by previous explorers.

The Mandiana Project is formed by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima gold deposit which is operated by small scale miners.

Figure 1. The Permits located in the Suguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

Kouroussa Project

Desktop studies
Volt has completed desktop studies for the Kouroussa Project. The studies included gathering of previous information, geo-referencing, digitization and conducting desktop interpretation of the data to generate initial targets.

  • Review of previous geological maps covering the Kouroussa Project (Kouroussa, Kouroussa West and Fadougou permits) have identified a series of EW (Fault 1 and Fault 2) trending faults displaced by a second set of NS (Fault 3) trending fault systems. Gold mineralization seems to be associated with the fault systems which cut through the Kouroussa and Kouroussa West permits (see Figure 2 below).
  • Large parts of the permits are dominated by Birimian meta-volcanic and meta-sedimentary sequences. The areas have been identified as very prospective as they have similar geology to the nearby PDI discovery and the Kouroussa Mine.
Figure 2. Permits on regional scale geological map (Digitized from Guinea Government Geological Map of 2006)

Field works
Volt’s geology team has commenced field work activities on the Kouroussa Project permits. Activities have included site visits to all the permits and collection of soil and rock samples.

Kouroussa permit. A site visit to the permit has identified an area of artisanal mining activities in the NE border with the Kouroussa Mine known locally as the “World Bank”.

Several artisanal working clusters have been mapped in the area measuring approximately 600 metres by 800 metres. The workings seem to be an extension of mineralization from the Kouroussa Mine. The artisans are mining gold from lateritic cover. The area coincides with NW-SE trending Fault 3 shown in Figure 2. The area is covered by mineralized laterites. Grab sampling from these artisanal workings is in progress and will be sent for assaying.

The photos below are of artisanal workings and Figure 3 below shows the location of identified artisanal workings on the Kourassa Permit.

Figure 3. Location of identified artisanal workings on the Kouroussa permit.

Kouroussa West permit. The permit seats in an isolated area covered by shrubs and small trees. The team has visited the area twice to conduct geological reconnaissance observations. Due to the exploration potential identified during the site visits, the Company has more than doubled its permit area from the initial size of 47.9km2 to 99.83km2

  • Old artisanal shafts/pits and active workings were observed about 1.5km to the south of the permit boundary. The shafts and pits are following a 420 NE trending mineralized quartz veining system with mineralized lateritic cover.
  • The permit area is covered by lateritic cover materials with quartz fragments scattered in the area. The geology is a continuation of the geology observed in the artisanal workings south of the permit.
  • Some gold mineralization is associated with sulphides in quartz veins. Artisans are extracting their gold from both laterites and quartz veins
Figure 4. Map showing the increase in the Kouroussa West permit area, artisanal workings to the south and PDI’s recent discovery to the north-east.

Fadougou permit. The permit is covered by small trees, bushes and shrubs. The team has visited the area twice to conduct geological reconnaissance observations.

  • The area features numerous artisanal mining activities. Several artisanal pits/shafts clusters have been observed and mapped.
  • In this reconnaissance field trip, only a small area was able to be visited. The artisanal workings identified on this visit are in the NE of the permit.
  • The area has a very thick laterite cover overlaying saprolitic material. Several quartz veins have been observed. The artisans are extracting gold from lateritic cover, saprolites and quartz veins.
Figure 5. Location of identified artisanal workings on the Fadougou permit.

Next Steps

Kouroussa Permit. Sahara and Volt teams will continue collecting grab samples in the artisanal workings area known as the “World Bank”. Following sampling and assay, an auger drilling geochemical sampling program will be undertaken in the area highlighted in Figure 3.

Kouroussa West Permit. The teams will execute a systematic soil sampling program to generate initial targets. The soil sampling program will be followed by a shallow auger drilling geochemical sampling program.

Fadougou Permit. Volt’s team will continue collecting grab samples in the area identified to have artisanal workings. The sampling step will be followed by an auger geochemical sampling in the area that has active and old workings. For the areas that are not disturbed by human activities, the team will conduct a systematic soil sampling program.

Mandiana Project

The Mandiana Project is constituted by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima gold deposit which is operated by small scale miners.

Desktop Studies
Volt’s team has finished the desktop studies for the Mandiana Project. The desktop work included gathering of previous information, geo-referencing, digitization and conducting interpretation of the data to generate initial exploration targets. Further information obtained from this work and next steps will be advised in the near future.

Figure 6: Mandiana Project permit locations and regional gold occurrences

Konsolon Project

The Project is located in a highly prospective gold region with several gold occurrences and artisanal mining activities. Sampling conducted by previous explorers identified a NW-SE trending gold in soil geochemical anomaly within the permit area. The geology of the area includes meta-sedimentary rocks of the Lower Proterozoic Birimian Group and the Lower Cambrian deposits.

The most part of the area is covered by laterites formed on the metamorphized terrigenous and volcanogenic rocks of the Birimian Group. The geology is very analogous with the Lero Mine gold ore deposits which indicate that dominant in the Lower Proterozoic basement are the volcano-sedimentary deposits of the Birimian Group conventionally classified into upper and lower complexes.

The Birimian deposits are intensely deformed, characterized by isoclinal folding and faults with shifting gold ore deposits and occurrences spatially associate with the coarser deposits of the lower complex.

Soil and shafts sampling campaign

The team has developed a soil sampling program in an area that was identified as a NW-SE trending geochemical anomaly by previous explorers. The soil samples have been planned at a grid of 100m by 500m to cover all the anomalous area with a buffer of 300m – 400m. The program will comprise of 1,800 soil samples and additional samples from sampling of artisanal mining shafts.

Further information regarding the Konsolon Project exploration activities will be released in the near future.

Figure 7. Konsolon soil sampling grid overlaid on the historical gold in soil anomaly results.

Authorised by:
Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
GOLD EXPLORATION IN THE WORLD CLASS BIRIMIAN GOLD BELT UNDERWAY

GOLD EXPLORATION IN THE WORLD CLASS BIRIMIAN GOLD BELT UNDERWAY

Highlights

  • Volt Guinea geology team formed and commenced an exploration program at the Konsolon Permit. The program will initially include systematic soil sampling, mapping and sampling of artisanal shafts.
  • A 100m by 500m grid soil sampling program is being conducted to cover the NW-SE geochemical anomaly identified by previous explorers.
  • The samples collected from the artisanal shafts and the soil sampling program will be shipped to a nearby laboratory for analysis.
  • The Konsolon program is expected to be completed within 30 days at a relatively modest cost with 1,800 samples collected.
  • To accelerate the exploration program across the Guinea projects, Volt has contracted Sahara Natural Resources (Sahara) to conduct exploration on its other five permits (Kouroussa, Kourossa West, Fadougou, Nzima and Monebo).
  • Sahara has extensive experience in conducting exploration and drilling within the Siguiri Basin including a current drilling program for Predictive Discovery’s (ASX:PDI) at its new gold discovery.

Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has commenced exploration programs at its Guinea gold projects located in the Siguiri Basin, which forms part of the richly mineralised West African Birimian Gold Belt. Early exploration activities include systematic soil sampling combined with mapping and sampling of artisanal mining pits and shafts.

The initial Konsolon program is estimated to be completed within 30 days. The follow-up programs will involve detailed mapping of generated soil geochemical targets and shallow auger drilling and sampling to analyse soil geochemistry.

Volt has contracted Sahara Natural Resources (“Sahara”), a mineral exploration consultancy and drilling company, to conduct exploration in its Kouroussa and Mandiana Projects. Sahara has staff on the ground and broad experience in the region and has recently been involved with PDI’s new greenfields gold discovery. The initial stages of the Sahara exploration program is scheduled to be completed in 17 weeks.

The Konsolon Project exploration program is being undertaken by Volt’s newly formed Guinea team comprising three geologists led by one expatriate senior geologist. Volt’s geology team has already mobilized to site to commence the Konsolon Project exploration program and Sahara will soon mobilize to commence the Kouroussa and Mandiana Projects exploration program.

Volt has commenced the early works on the Guinea projects to fast track the drill target generation phase on these highly prospective tenements. The shareholder meeting to approve the issue of the Completion Shares and complete the Guinea gold projects acquisition is scheduled for late June 2020 (see ASX announcement dated 14 May 2020 “Volt Acquires Highly Prospective Gold Project and Finalises Capital Raising”).

Guinea Projects and Permits

Volt has six permits and has formed them into three projects – the Kouroussa Project, Mandiana Project and Konsolon Project. See Figure 1 below for the project and permit locations.

The Kouroussa Project is formed by three permits, the Kouroussa, Kouroussa West and Fadougou permits. The Kouroussa and Kouroussa West permits border PDI’s Kaninko Project which was the subject of a recently announced discovery of high-grade gold mineralization which included a drilling intersection of 46m@6.58g/t Au and is described as open in all directions.

The Konsolon Project constitutes one large permit named Konsolon. The permit has a NW-SE trending soil geochemical anomaly identified by previous explorers.

The Mandiana Project is formed by the Nzima and Monebo permits. The Nzima permit area surrounds the Nzima gold deposit which is operated by small scale miners.

Figure 1. The Permits located in the Siguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.
Figure 2. Map showing the location of all projects and permits in relation to regional geology, gold occurrences and major mines.

Konsolon Project

The project is located in a highly prospective gold region with several gold occurrences and artisanal mining activities. Sampling conducted by previous explorers identified a NW-SE trending gold in soil geochemical anomaly within the permit area. The geology of the area includes metasedimentary rocks of Lower Proterozoic Birimian Group and the Lower Cambrian deposits.

Figure 3 below identifies the Konsolon permit in relation to local gold occurrences and the Lero mine.

Figure 3. Gold occurrences including the Lero Mine near the Konsolon Project overlaid on a contour map of the region

Exploration Plan
The planned works in the project area include the review and understanding of the geography and geology, systematic soil geochemical sampling, geological and structure mapping, mapping of artisanal shafts and pits, potentially followed by trenching, ground magnetic surveys, shallow auger drilling followed by Aircore drilling.

Soil and Artisanal Works Sampling
The team has started a soil sampling program in an area that was identified as a NW-SE trending geochemical anomaly by previous explorers. The soil samples have been planned at a grid of 100m by 500m to cover all the anomalous area. The program will comprise 1,800 soil samples plus additional samples from sampling of artisanal mining shafts. All the samples will be dispatched to the SGS Mali laboratory for analysis.

Figure 4. Konsolon soil sampling grid overlaid on the historical gold in soil anomaly results.

Kouroussa and Mandiana Projects

The Kouroussa Project comprises three permits, two of which border PDI’s Kaninko Project which was the location of the recent spectacular greenfield gold discovery. The Mandiana Project includes the Nzima permit area which surrounds the Nzima gold deposit which is operated by small scale miners.

Exploration Plan
Volt has engaged Sahara to conduct exploration of the Kouroussa and Mandiana Projects. Sahara is a specialist West African focussed firm that provides a range of services to exploration and mining companies.

Sahara will be using a similar exploration methodology for both the Kouroussa and Mandiana Projects to that employed at PDI’s recent successful drilling program. The plan includes desktop review of available existing geological and exploration data, site visit and area reconnaissance, geological mapping and sampling, auger geochemical drilling and sampling followed by Aircore/Reverse Circulation/Diamond Core drilling.

A team of Sahara geologists are currently undertaking desktop studies in preparation to mobilize to site for the next stage of the program. Several East–West and NW-SE trending structures have already been identified. The structures are associated with gold mineralization and are crosscutting the Kouroussa and Kouroussa West permits. The two areas of PDI’s discoveries lie within these structures suggesting possible mineralization extension to our permits.

An initial site visit to the Kouroussa permit identified several clusters of artisanal mining shafts and pits. The two photos below are of some of the existing artisanal workings in the Kouroussa permit and Figure 5 below is a map showing the location of identified artisanal workings in the permit area in relation to the Kouroussa mine and the PDI gold discovery.

Artisanal workings in the Kouroussa Permit
Figure 5. Identified Artisanal workings in the Kouroussa Project

Project Schedule

The table below is the schedule for the completion for the first phase of exploration by Sahara.

ActivityCompletion Schedule
Stage 1: Regional Desktop Study: Data review and reporting for 5 permits2 Weeks
Stage 2: Initial Project Site Visits and Sampling: Site visits and reporting5 Weeks
Stage 3: Initial Auger Geochemistry Over Priority Targets10 Weeks
Stage 4: Dependent On Outcome Stage 3
Total Schedule for Proposed SOW17 Weeks

Sahara has assembled an experienced team of professionals to undertake Volt’s planned project exploration activities. All of the professionals proposed have significant relevant experience and include personnel who are qualified to act as the competent person under the JORC 2012 code. The Sahara team has worked with Volt’s senior geologist in Guinea on Lindian Resources Ltd’s (ASX:LIN) recent successful bauxite exploration program in Guinea.

Volt Resources Chairman, Asimwe Kabunga, commented:

“After a recent successful exploration campaign at Lindian which led to the discovery of a world class high-grade conglomerate bauxite deposit in Guinea, we’re pleased for the newly formed Volt team to again be working with the Sahara team on this exciting gold project.

“Against the backdrop of Sahara’s role in the recent spectacular success of Predictive Discovery’s drilling program, including a gold intersection of 46m@6.58g/t, combined with evidence of gold mineralisation trending through our adjacent Kouroussa permits, Volt is excited to get the exploration activities underway and looks forward to providing the results of the exploration programs in due course.”

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
BINDING TERM SHEET TO ACQUIRE ADVANCED GOLD PROJECT

BINDING TERM SHEET TO ACQUIRE ADVANCED GOLD PROJECT

Highlights include:

  • Binding Term Sheet signed for the conditional acquisition of an 85% interest in the advanced Luiri Hills Gold Project in Zambia.
  • The Luiri Hills Gold Project is an advanced project with Metallurgical and Mineral Resource studies and significant other work undertaken by credible international consultants with over US$20 million expended on the project to date
  • Minimal work expected to be required to update existing studies and to progress with required development approvals to a ‘Decision to Mine’
  • Opportunity to build on Volt’s long-standing relationship with Chinese Engineering and Construction group, Yantai Xinhai, who previously proposed a funded BOOT gold plant development plan for the Project development
  • Potential to realise funds from stockpiled gold bearing ore
  • Acquisition remains subject to completion of due diligence

Volt Resources Limited (ASX: VRC) (“Volt” or the “Company”) is pleased to advise that it has entered into a binding Term Sheet (“Term Sheet”) to conditionally acquire an 85% interest the Luiri Hill Gold Project (“Luiri Project”) located in south-central Zambia, 120km west-northwest of the Zambian capital of Lusaka.

The proposed acquisition of the Luiri Project continues Volt’s progression in establishing a new gold business whilst progressing the development of its Bunyu Graphite Project in Tanzania.

Together with the proposed acquisition of the Guinea gold project announced on 14 May 2020 (the “Guinea Gold Project”), the acquisition of the Luiri Project will provide Volt with a combination of highly prospective grass roots exploration in Guinea together with an 85% interest in an advanced gold project in Zambia that has near term development potential.

The creation of a new gold business provides Volt shareholders with the opportunity to participate in the potential value accretion from gold exploration and development activities, particularly through leveraging the Company’s existing extensive networks in Africa.

Volt Resources Chairman, Asimwe Kabunga, commented:

“As a shareholder I am excited about the opportunity for Volt to develop its world class graphite business in Tanzania combined with the potential to become a gold producer in Zambia in the near future.

“The board is working with the management team to realise our goal to transform Volt into a diversified mineral producer.

“Our Zambian partners in the Luiri Hill Gold Project have the local knowledge and important relationships which can be utilised to add considerable value if the acquisition proceeds.”

Volt Resources Managing Director, Trevor Matthews, added:

“ The Luiri Hill Gold Project is at an advanced stage supported by a number of studies.

“The opportunity to realise some cashflow from the sale of the existing on-site stockpiles to provide early funding is unique.

“Given the substantial increase in the gold price in the past year combined with the project’s potential supports the ability to debt fund the project development to minimise future equity requirements and can create real long-term value for shareholders.”

The Luiri Hill Gold Project

The Luiri Project is an advanced gold project with considerable drilling and studies already undertaken. The Matala and Dunrobin deposits, which collectively form the Luiri Project, have the potential to be developed into a medium scale gold mine in the short term.

The Luiri Project was previously majority owned by Luiri Gold Limited, a company that was previously listed on ASX (ASX code “LGM”) until 2014, when it was sold by Luiri Gold Limited to a South African company.

The Project is comprised of one large-scale exploration licence and a mineral processing licence with a total area of 31.38km2 within the Matala Dome mineralized structure. Access to the Project area is by a bitumen sealed road from Lusaka.

The area has significant potential for gold occurrences both related to the Matala Dome mineralized structure and the surrounding Katangan rocks where there is potential for iron oxide copper-gold (“IOCG”) style mineralization.

Luiri Hill Gold Project location

Significant Work Undertaken to Date

Over US$20 million has been invested in the Luiri Hill Gold Project to date with extensive RC and diamond drilling programmes, mineral resource reports, metallurgical testwork programmes and studies, feasibility studies undertaken by consultants Coffey (2013) and PenMin (2016) and various other activities.

In 2016 Yantai Xinhai Machinery, a Chinese based firm, entered a partnership agreement with the previous owner to arrange vendor financing through a loan for the design, build operate (DBO) contract for the Matala deposit.

Yantai Xinhai Machinery has a longstanding relationship with Volt Resources Limited as the preferred processing plant constructor for the Bunyu Stage 1 Graphite Project. Due to previous experience and work done by Yantai Xinhai Machinery on the Matala project, Volt has commenced engagement with Yantai Xinhai Machinery to explore the role they can play in development of the Luiri Hill Gold Project.

Whilst Coffey Partners Pty Ltd previously reported a JORC (2004) Mineral Resources (Measured, Indicated and Inferred) in relation to the Matala and Dunrobin deposits, the Company is seeking access to further information regarding the extent of the historical work conducted in order to comply with ASX continuous disclosure requirements regarding the reported estimates of Mineral Resources given that they were prepared under a pre-2012 edition of the JORC Code, and will release that information when it becomes available.

In any event, with most of the mineral resource near surface and therefore suitable for open cut mining, Volt considers there is an opportunity with the current and forecast gold price to reduce the cut-off grade and increase the ounces available for extraction from what has previously been used for the purposes of estimating that mineral resource.

In addition to the Dunrobin and Matala project area, a further twenty-four gold prospects have been identified within the area of license as being targets for further exploration work.

Dunrobin mineralised core
Luiri Hill Gold Project licence area in relation to gold and gold/copper occurrences

Stockpiles

The project also reportedly has significant existing stockpiles of gold bearing ore, which Volt considers may be material in terms of providing a funding mechanism for the completion/updating of studies to progress to a mining licence, advance any remaining environmental and other approvals and transition to a development decision.

As with the existing Mineral Resource estimates, the Company is seeking access to site to physically inspect these stockpiles as part of its due diligence investigations and will provide further information when it becomes available.

Volumetric calculations being undertaken at one of the stockpiles

Zambian Vendor Continuing Role to Assist the Project Development

The project vendors are to retain a 15% interest in the project ownership and have committed to assist Volt with government and local community engagement using their deep relationship with the local communities including the community leadership, as well as their invaluable connection
within the Zambian Government to ensure the partnership is able to successfully develop the Luiri Hill Gold Project.

Transaction Details

The Company has entered into a binding term sheet to acquire an 85% interest in the Project.

The project licences are held by two entities incorporated in Zambia. Cupriferous Resources Ltd holds a Large Scale Exploration Licence and with Bukimo Mining Limited, the two companies jointly hold a Mineral Processing Licence. It is proposed both entities will be acquired by an Australian parent entity which is to be incorporated by Volt prior to settlement, which in turn will be owned 85% by Volt and 15% by the project vendors.

The consideration for the acquisition of at 85% interest in the Luiri Project comprises:

  • the issue of A$3.75 million ordinary fully paid shares on settlement of the acquisition, with the number of shares to be issued calculated based on the 5 trading day volume weighted average price of Volt securities on ASX in the period immediately prior to settlement; and
  • payment of A$250,000 in cash within 30 days of settlement occurring.

Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries, the execution of a share sale agreement in a form acceptable to Volt, as well as the approval of Volt shareholders to the issue of the consideration shares to be sought at an upcoming meeting of Volt shareholders expected to be held in late June 2020.

There are no change to Volt’s board or management structure arising out of the proposed acquisition, although the project vendors will be entitled to representation on the Board of the Australian holding company, as well as the relevant Zambian subsidiary entities, as a consequence of their ongoing 15% interest in the Luiri Project.

Settlement of any acquisition is expected to occur within 5 business days of shareholder approval to the issue of the proposed consideration shares for the acquisition of an 85% interest in the Luiri Project being obtained.

The Company will update shareholders of any material developments as it progresses with its due diligence enquiries in relation to the Luiri Project.

Authorised by:

Trevor Matthews
Managing Director
Volt Resources Limited


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News
VOLT ACQUIRES HIGHLY PROSPECTIVE GOLD PROJECT AND FINALISES CAPITAL RAISING

VOLT ACQUIRES HIGHLY PROSPECTIVE GOLD PROJECT AND FINALISES CAPITAL RAISING

Highlights include:

  • Volt has acquired gold projects comprising six (6) permits in the highly prospective Birimian Greenstone in Guinea.
  • Permits cover an area of 388km2
  • Kouroussa and Kouroussa West Permits border the recently discovered gold mineralization announced by Predictive Discovery (PDI:ASX) with up to 46m@6.58g/t
  • Konsolon Permit with an 8 km soil anomaly with gold bearing grab samples
  • Artisanal mining locations on the Kouroussa permit on a north-east line from the PDI discovery and the Kouroussa mine
  • Capital raising finalised to raise $800,000
  • Transitions Volt to a diversified mineral resources company with a continuing commitment to developing the Bunyu Graphite Project combined with gold exploration and development

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) is pleased to advise that it has entered into a Share Sale Deed (“Deed”) to acquire an exciting gold project located in Guinea, Africa.

The project comprises six permits (“Permits”) in the prolific Siguiri Basin with a total area of 388km2.

The Company is also finalising a capital raising of $800,000 before costs through a share placement to sophisticated investors.

Guinea Gold Project Acquisition

The Permits are located in the Suguiri Basin which forms part of the richly mineralised West African Birimian Gold Belt.

Permit locations in relation to significant mines in the Birimian Gold Belt

Key information regarding the Permits acquired and identified in more detail in the map below includes:

  • The Kouroussa and Kouroussa West permits are located immediately adjacent to Predictive Discovery Limited’s (ASX:PDI) Kaninko Project which was the subject of significant exploration results announced to the ASX on 15 April 2020. Artisanal miners are active on the Kouroussa permit which indicates the presence of high-grade gold (see image below). Combined with the Fadougou permit this provides Volt with a strategic land holding in this highly prospective area.
  • At the Konsolon permit a coherent 8 km gold in soil anomaly has been identified along with gold bearing grab samples
  • The Nzimi permit is 16km south east of the Tri K deposit in an area of high gold prospectivity. The geology in the permit is analogous to nearby resources and mines.
  • The Monebo permit is within a highly prospective region with nearby gold occurrences.

The map below shows the 8km strike soil geochemistry anomaly identified in the Konsolon permit.

The map above identifies artisanal mining locations on the Kouroussa permit on a north-east line from the PDI discovery and the Kouroussa mine.

The below image shows artisanal mining undertaken on the Kouroussa permit.

Planning for exploration works on these under-explored permits is already underway and further information will be provided in coming weeks.

Volt will continue to progress its graphite business plans and the current Stage 1 development funding program in relation to its Bunyu Graphite Project in Tanzania. The addition of a gold focus will provide current and new shareholders with the opportunity to participate in the potential value accretion from gold exploration and development, particularly through leveraging off its existing networks in Africa.

The Volt board considers the transaction will provide an additional value driver for the company, diversify project specific risks, improve the ability to raise capital at better prices and may potentially assist with the graphite development funding process.

Transaction Details

In accordance with the Share Sale Deed, the Company has agreed to acquire all of the issued shares in Gold Republic Pty Ltd (Gold Republic), an Australian proprietary company controlled by Volt Chairman, Mr Asimwe Kabunga.

Gold Republic is the legal and beneficial holder of all of the issued share capital in each of Norsk Gold Pte. Ltd, (a registered Singapore entity which in turn is the legal and beneficial holder of all of the issued share capital in Novo Mines Sarlu) and KB Gold Sarlu. Novo Mines and KB Gold hold 100% of the legal and beneficial interests in the Permits.

The consideration for the acquisition comprises:

  • The issue of 121,718,576 Volt ordinary fully paid shares on completion of the acquisition; and
  • A 2% Net Smelter Royalty covering the Permit area as well as a 10 km radius from the permit boundaries.

Completion of the acquisition is subject to the satisfactory completion of Volt’s due diligence enquiries as well as the approval of Volt shareholders to the issue of the Completion Shares which is to be sought at an extraordinary general meeting expected to be held in late June 2020.

Volt Managing Director, Trevor Matthews, commented;

“This is an exciting opportunity for Volt to acquire a gold project with permits in a highly prospective and under-explored area. With Alphier Capital, I am continuing to advance the graphite funding process and this remains a key focus for the Company.

“The addition of a new gold focus provides shareholders with exposure to one of the best performing metals on financial markets and the benefits of diversification in a period of economic uncertainty.”

Capital Raising

The Company has successfully raised $800,000 (before costs) to assist with funding the initial exploration programs on the Guinea gold project and to provide working capital for Volt’s Tanzanian graphite project and meet corporate costs.

The capital raising will be completed through the placement of 160,000,000 new fully paid ordinary shares at A$0.005 per share (Placement) plus 80,000,000 unlisted options with an exercise price of A$0.01 and a maturity date 24 months from the date of issue (with each investor to receive one option for every two shares subscribed for under the Placement).

The Placement securities will be issued within the next two days and are being issued pursuant to Volt’s 15% capacity under ASX Listing Rule 7.1.

Authorised by :
Trevor Matthews
Managing Director


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788


Posted by Volt Resources in Company News
BOARD CHANGES AND EXPENDITURE REDUCTION MEASURES

BOARD CHANGES AND EXPENDITURE REDUCTION MEASURES

Tanzanian-focused flake graphite developer Volt Resources Limited (ASX: VRC) (“Volt” or “the Company”) provides the following information in relation to the board and management’s focus on development funding and expenditure reduction initiatives.

With the Company having completed all of the activities to move the Bunyu Graphite Project to its development ready status, Volt is focused on securing the funding for the Stage 1 development. The current funding focus and the board changes described below have provided the opportunity to reduce expenditure to conserve cash while still working to create shareholder value through securing the Stage 1 funding.

Board and Management

The Board of Volt Resources has been restructured with the resignation of Non-executive Director Stephen Hunt. Current Chief Executive Officer, Trevor Matthews, has been appointed as Managing Director commencing 1 May 2020.

Chairman, Asimwe Kabunga, commented “Stephen has been a significant contributor to Volt’s success in his earlier role as Executive Chairman and later as a Non-executive Director. His marketing experience and commitment to the Bunyu graphite project were instrumental in the company now advancing with its project development funding process. On behalf of the Volt board we wish Stephen success with his future endeavours.”

“The board is pleased that Trevor has accepted the Managing Director role and we look forward to the continuation of our development funding efforts.

The Company structure will continue to be reviewed taking into account our development funding status and the broader macro-economic factors as a result of the global pandemic.”

Combined with the board changes, director fees will be reduced effective 1 May 2020 with the Chairman fee reduced to $3,000 per month and the Non-executive Director fee reduced to $2,000 per month. The Managing Director will be engaged under a consultancy agreement and will be paid a fixed monthly fee of $3,000 per month with incremental services charged at an hourly rate of $200 per hour.

A summary of the Managing Director’s material terms under the consultancy agreement is included below.

Expenditure Reduction

Over the past 12 months Volt has implemented a number of changes to reduce its cost structure including:

  • Moving from a commercial office lease to a serviced office combined with remote working capability including the use of video conferencing since April 2019.
  • The retrenchment of most Perth staff with services outsourced and a reduction in Tanzanian personnel during January and early February 2020.
  • Reduced use of consultants for various corporate and administration activities.

Managing Director Consultancy Agreement Material Terms

Commencement Date1 May 2020
Monthly retainer fee
Hourly rate
$3,000
$200
TerminationOne month’s notice by either party
without cause.
Immediate termination by Company
for cause.
Performance RightsTo be agreed with the Volt Board and
as approved by shareholders

This announcement was authorised for release by the Board of Volt Resources Ltd.


FOR PERSONAL USE ONLY
For further information please contact:

Trevor Matthews
Managing Director
Tel: +61 8 9486 7788

Posted by Volt Resources in Company News