Announcement PDF KINGSTON RESOURCES LIMITED Bynoe Phase 1 drilling results highlight lithium potential at Lei ASX Announcement 19 July 2017 ASX Code: KSN Highlights Share Price: A$0.018 Shares Outstanding: 665,769,985 • Market Capitalisation: A$12.0m Cash: A$4.5m (Mar 31, 2017) ACN 009 148 529 • Board and Management Anthony Wehby Chairman Andrew Corbett Managing Director Significant lithium mineralisation intersected at Lei o 12m @ 1.43% Li2O from 121m, including 9m @ 1.69% o 1m @ 1.80% Li2O from 142m, and o 5m @ 1.07% Li2O from 152m Deep Ground Penetrating Radar (DGPR) indicates a possible second large pegmatite 180m east, untested by drilling • Additional DGPR surveys, soil sampling and RC drilling to follow Kingston Resources Ltd (ASX:KSN) (Kingston or the Company) is pleased to announce Andrew Paterson Technical Director the results of the first phase of RC drilling at Bynoe. A small program at the Lei prospect Stuart Rechner Non-Executive Director KBRC024 (Figure 1). Subsequent surveys using Deep Ground Penetrating Radar Chris Drew Commercial Manager intersected lithium mineralisation, with a best result of 12m @ 1.43% Li2O in hole technology (DGPR) indicate that this pegmatite has a north-easterly strike, and a second large pegmatite may be located approximately 180m further east. Follow up drilling is now being planned to continue testing the Lei area. Further north at the Cai prospect, drill testing beneath a north-south soil anomaly intersected pegmatites, returning assays of up to 0.3% Li2O. These results, as well as high tantalum values of up to 915ppm Ta, support the Company’s view that Cai remains a prospective area, however further work remains to identify additional drill targets. The program comprised 45 holes for a total of 4,507m: nine at Lei (924m); 29 at Cai (2,938m); five at Bao (493m); and two at Liana (152m). This program has tested prospects on only two of the Company’s nine granted tenements at Bynoe, with the majority of the work focussed on EL31133. As such, the drilling has only tested a small portion of the overall potential of Kingston’s Bynoe project. During the drilling program, the Company also successfully tested the potential of DPGR to augment identification and interpretation of drill targets. The use of DGPR surveys at Bynoe is showing potential to deliver significant value as a targeting tool that will allow better precision in positioning drill holes. DGPR may be one of the only geophysical techniques that can accurately distinguish pegmatites from Contact Details the surrounding country rock under cover, as their lack of contrasting density, magnetic 205/283 Alfred St, North Sydney, NSW 2060 +61 2 8249 4968 susceptibility or conductivity makes them difficult to identify using conventional info@kingstonresources.com.au specific pegmatites, reducing drill metres and accelerating the exploration process. www.kingstonresources.com.au geophysical techniques. This is of particular benefit at Bynoe where a veneer of shallow cover makes pegmatites difficult to detect. The DGPR data will allow holes to target “The initial drill program has identified lithium bearing pegmatites within Kingston’s Bynoe Project at the Lei Prospect, which is an encouraging start to our exploration ASX Announcement – 19 July 2017 program at Bynoe”, commented Kingston’s Managing Director Andrew Corbett. “We will build on these early results at Lei as soon as possible, and will also develop other drill targets within the Bynoe region using surface geochemistry and ground geophysics to be drill tested in the next program.” Work is already underway to obtain the necessary approvals to recommence drilling at Bynoe. Figure 1: Lei section 8591200E, looking north. The Company is also finalising approvals for an RC program testing two targets at the Spotted Wonder project within the Arunta region, Delmore and Tank Hill, where soil and rock chip sampling and mapping have identified lithium enrichment. 2 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 Figure 2: DGPR section 8591200E with drilling results superimposed. The large interpreted eastern pegmatite-like structure will be tested in the next round of drilling. Hole ID Northing Easting RL Depth Dip KBRC023 693666 8591199 20 118 -60 KBRC024 693703 8591200 21 172 -60 Azimuth 270 From (m) 60 To (m) 61 Width (m) Li2O (%) 1 0.44 And 65 66 1 0.44 270 121 134 13 1.36 Including 121 133 12 1.43 Including 121 130 9 1.69 And 142 158 16 0.69 Including 142 143 1 1.80 Including 152 157 5 Table 1: Significant intersections. Calculated at a 0.4% Li2O cut-off with a maximum of 2m internal dilution. 1.07 3 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 About Kingston Resources Kingston Resources is a metals exploration company. The Company holds an attractive portfolio of lithium exploration tenements covering four key project areas. In Western Australia, the Mt Cattlin and Greenbushes projects are adjacent or near existing lithium mines. In the Northern Territory, the Bynoe project area is home to some exciting new discoveries and the Arunta project lies within a significant pegmatite field. In addition, the Livingstone Gold Project holds a 50koz inferred resource and is the site of a number of high grade historic intersections. The Company is well funded to rapidly advance its exploration projects. Competent Persons Statement The information in this report that relates to Exploration Results, Mineral Resources or Reserves is based on information compiled by Mr Andrew Paterson, who is a member of the Australian Institute of Geoscientists. Mr Paterson is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a competent person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Paterson consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. Kingston Resources Project Locations 4 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 Hole ID Easting Northing RL Prospect Dip KBRC001 KBRC002 Azimuth Depth From 691707 8598045 47 Cai -60 90 100 No significant intersection 691667 8598051 44 Cai -60 90 118 No significant intersection KBRC003 691740 8598048 35 Cai -60 90 88 No significant intersection KBRC004 691727 8597928 48 Cai -60 90 100 KBRC005 691686 8597919 38 Cai -60 90 76 No significant intersection KBRC006 691735 8597790 22 Cai -60 90 100 No significant intersection KBRC007 691687 8597796 47 Cai -60 90 82 No significant intersection KBRC008 691569 8597902 29 Cai -60 90 100 KBRC009 691656 8597438 33 Cai -60 90 100 32 33 0.03 137 KBRC010 691622 8597437 34 Cai -60 90 118 15 18 0.02 193 And 73 74 0.03 118 KBRC011 691564 8598053 29 Cai -60 90 118 KBRC012 691607 8598055 48 Cai -60 90 88 KBRC013 688876 8597912 31 Bao -60 45 88 KBRC014 693981 8587689 47 Liana -60 215 47 To 48 Li2O % Ta ppm 0.06 100 No significant intersection No significant intersection 14 18 0.03 140 No significant intersection 88 33 34 0.02 234 And 39 42 0.07 243 20 26 0.05 130 KBRC015 694019 8587715 47 Liana -60 215 64 KBRC016 688941 8597789 35 Bao -60 45 99 No significant intersection KBRC017 688916 8597761 28 Bao -60 45 118 No significant intersection KBRC018 688944 8597821 27 Bao -60 45 88 No significant intersection KBRC019 688916 8597938 31 Bao -60 45 100 No significant intersection KBRC020 693667 8591157 24 Lei -60 270 100 No significant intersection KBRC021 693700 8591160 22 Lei -60 270 100 No significant intersection KBRC022 693665 8591240 25 Lei -60 270 88 0 11 0.02 236 KBRC023 693666 8591199 20 Lei -60 270 118 56 57 0.04 103 KBRC024 693703 8591200 21 Lei -60 270 And 62 63 0.10 101 172 121 134 1.36 47 And 142 158 0.69 58 KBRC025 693737 8591158 20 Lei -60 270 100 No significant intersection KBRC026 693780 8591158 21 Lei -60 270 112 KBRC027 693646 8591196 26 Lei -60 270 52 28 30 0.04 169 And 33 34 0.04 170 And 40 41 0.03 116 No significant intersection KBRC028 693823 8591147 37 Lei -60 270 82 No significant intersection KBRC029 691685 8597151 25 Cai -60 135 100 No significant intersection KBRC030 691655 8597178 28 Cai -60 135 100 20 22 0.04 210 KBRC031 691633 8597200 22 Cai -60 135 100 51 53 0.01 122 KBRC032 691606 8597228 33 Cai -60 135 100 82 83 0.05 215 KBRC033 691745 8597206 25 Cai -60 135 100 No significant intersection KBRC034 691714 8597225 34 Cai -60 135 100 No significant intersection KBRC035 691574 8597006 33 Cai -60 135 100 41 44 0.01 249 KBRC036 691552 8597034 30 Cai -60 135 100 65 67 0.01 180 5 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 KBRC037 691533 8597056 30 Cai -60 135 94 KBRC038 691659 8597361 30 Cai -60 90 100 KBRC039 691621 8597363 30 Cai -60 90 100 74 76 0.05 370 KBRC040 691662 8597524 30 Cai -60 90 KBRC041 691620 8597485 30 Cai -60 90 KBRC042 691580 8597440 30 Cai -60 90 83 85 0.02 132 No significant intersection 84 38 40 0.02 254 And 44 45 0.02 202 And 49 50 0.02 187 112 29 31 0.01 750 And 78 79 0.09 104 136 113 114 0.03 161 And 120 121 0.01 105 106 33 36 0.01 104 And 88 89 0.02 103 KBRC043 691619 8597523 30 Cai -60 90 KBRC044 691529 8597902 30 Cai -60 90 118 No significant intersection KBRC045 691605 8597900 30 Cai -60 90 100 No significant intersection Table 2: Hole collar details. Coordinates are GDA94 Zone 52. Intersections are calculated at 0.4% Li2O or 100ppm Ta cut-off, with a maximum 2m of internal dilution. 6 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 JORC Code, 2012 Edition – Table 1 report template Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (eg cut channels, random chips, or 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 and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge 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. • Drill type (eg core, reverse circulation, open-hole hammer, rotary air 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). • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. • Whether core and chip samples have been • RC chips were sampled in 1m intervals from a rig-mounted cone splitter. The splitter was levelled at the start of each hole using a bullseye-type spirit level. A sample of approximately 3kg was produced. • Pegmatite intersections were submitted for assay plus a buffer zone of 3m on either side of the pegmatite, based on the lithology log. • The splitter reject material was collected in green plastic bags and put aside. Drilling techniques Drill sample recovery Logging • Reverse Circulation (RC) • Sample recovery was visually assessed by comparing bag size (sample plus reject split). Very little variation was observed. • The cone splitter was regularly cleaned with compressed air • All samples were geologically logged. 7 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 Criteria JORC Code explanation • • Sub-sampling techniques and sample preparation • • • • • • Quality of assay data and laboratory tests • • • Verification of sampling and assaying • • • Location of data points • • geologically and 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 costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in 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 being sampled. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, 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, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and Commentary Logging is qualitative in nature. • Samples were split using a static cone splitter. Material sampled can be dry or wet from ground water intersected in the drilling, the sample wetness is recorded in the logging. The sample size is considered to be appropriate to the style of mineralisation. • A separate sample is sieved from the splitter reject material into chip trays and used for geological logging. • Samples were submitted to Intertek Darwin, where they were processed then sent to Intertek Perth for mineral processors for analysis by peroxide fusion with ICP finish. • Deep Ground Penetrating Radar trials were conducted by Derek Reeves of Loza Radar Australia using his DGPR unit with a 6m antenna, testing 50m and 250m-deep profiles. • No independent geologists were engaged to verified results. • Kingston’s project geologists are supervised by Kingston’s Chief Geological Officer. • All coordinate information was collected using hand held GPS utilising GDA 94, Zone 52. 8 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 Criteria JORC Code explanation Commentary other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. • Collar RL’s show large variations in GPS readings, indicating errors of +/10m. The collar points were draped over SRTM 1m topographic data to better approximate Z accuracy. These will be updated later using a more accurate survey technique. • RC holes were surveyed by down hole tool to measure any deviation • RC holes were drilled generally on ~E/W traverses. The collar locations are recorded in Table 2 in this release. • No sample compositing has been applied to the data. . Sample security • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the 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. • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • The measures taken to ensure sample security. Audits or reviews • The results of any audits or reviews of sampling techniques and data. • Not applicable as no audits or reviews of sampling techniques have been undertaken. Data spacing and distribution Orientation of data in relation to geological structure • Angled holes were drilled approximately orthogonal to the dip of the target lithologies. There was no sampling bias due to hole orientation. • Standard QA/QC protocols (Geostats standards and field duplicates). Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. • These results are from within Kingston Resources Ltd’s Bynoe Project. These results are from the Cai Prospect location on EL31133, which is owned 100% by Kingston Resources Ltd through a 100% owned subsidiary. 9 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 Criteria JORC Code explanation Commentary Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. • Previous exploration of pegmatite hosted mineralization has occurred in the Bynoe region predominantly through historical small scale mine workings targeting Sn ± Ta and through regional recent RC drilling programs by Core Exploration and Liontown Resources. Within KSN’s target areas only historical workings and sparsely selected rock chip samples (pegmatite + host rock) have previously been undertaken. Geology • Deposit type, geological setting and style of mineralisation. • KSN is targeting any potential mineralization within the outcropping pegmatites within the Bynoe Project. The mineralization style is expected to be pegmatite hosted hard rock Sn + W + Ta + Li. The age and sources of the different pegmatite bodies in the area is thought to be Palaeoproterozoic. Drill hole Information • A summary of all information material to the understanding of the 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 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. • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade 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 • Drilling data is supplied in Table 2. Data aggregation methods • As all samples are 1m intervals there is no weighting applied. Intervals are reported as a simple arithmetic mean grade. 10 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au ASX Announcement – 19 July 2017 Criteria Relationship between mineralisation widths and intercept lengths JORC Code explanation • • • Diagrams • Balanced reporting • Other substantive exploration data • Further work • • metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). Appropriate maps and sections (with scales) and tabulations of 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. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Commentary • For the holes drilled at -60° the true thickness is approximately equal to 90% of the interval thickness. • See figures in release. Collar details are published as Table 2. • All currently received results have been reported. • See release details • KSN plans to continue its planned 4000m initial RC program at its Bynoe Project testing 5 prospects Cai, Bao, Lei, Liana and Min (see Figure 1) 11 3 Spring Street, Sydney, NSW 2000 +61 2 8249 4968 info@kingstonresources.com.au