Australia Minerals and Mining Group Limited is pleased to announce that a JORC compliant inferred resource of 701 million tonnes (Mt) at 3.8% heavy minerals (HM) containing 2.6% ilmenite has been delineated at the Rover Range Deposit. To the north-east of this deposit lies the Miller’s Mill Deposit, where a further JORC compliant inferred resource of 106Mt at 3.6% HM containing 2.8% ilmenite has been delineated. Both deposits lie within the Company’s 100% owned Glenarty Creek Mineral Sands Project, Western Australia.

The project is located within a known mineral sands region and is approximately 120km from the Bunbury port in the south-west of Western Australia. It is bisected by the Brockman Highway, with a direct route to the port of Bunbury via BHP’s purpose-built heavy haulage Sues Road (see Figure 3). The Glenarty Creek Project is situated over private freehold bush and farmland where Native Title is extinguished. AMMG managing director Mr Ric Dawson said, “These recent resource delineations are a significant upgrade for AMMG’s mineral sands portfolio within the south-west region of Western Australia. “Our project lies in the heart of a well established mineral sands province, with port and infrastructure within very close proximity”, he concluded.

Background
The Company’s 100% owned Glenarty Creek Mineral Sands Project was acquired (via its wholly owned subsidiary Australia Mineral Sands Pty Ltd) in May 2013 and is comprised of one 45-block exploration licence application and one granted seven block exploration licence. The total project area is approximately 150km2 (see Figure 1 above). Most of the project is situated on the Vasse Shelf containing granulite derived heavy mineral accumulations within Cainozoic sediments, which were deposited in a fluvial environment. The Scott Coastal Plain is located in the South Perth Basin, which is part of the large Perth Basin. The Perth Basin is a world-class heavy minerals region that contains a number of heavy minerals deposits stretching from Port Gregory, north of Geraldton, to Jangardup, near the south coast of Western Australia.

BHPTM’s exploration concluded that the predominant heavy minerals encountered was ilmenite, which was interpreted as having been derived from the high-grade metamorphic rocks of the Proterozoic Leeuwin Complex, to the west of the Dunsborough Fault. BHPTM anticipated that additional HM mineralisation would exist if further analysis of drilling data was conducted.

Rover Range Deposit

Resource Estimation
Following a comprehensive review of the data and modelling by AMMG’s competent person the mineralisation at the Rover Range Deposit is categorised as an Inferred Mineral Resource under the JORC code, 2004 edition. AMMG’s JORC inferred resource estimate at its Rover Range Deposit is 701Mt at 3.8% HM containing 2.6% ilmenite, using a lower cut-off of 2% ilmenite. Within the Rover Range area, the mineralised unit has been shown to extend for 5km north-south and 2.5km east-west Material was sectionally interpreted using geological modelling and a lower ilmenite cut-off grade of 2% to develop a wireframe of the mineralisation. A block model of the resource was created using IDW interpolation methods. One of the highlights and distinct advantages of the Rover Range Deposit is the potential low strip ratio and thickness of the deposit, which is up to 50m. The shallow water table also makes the deposit amenable to traditional sand mine dredging techniques similar to those used at other nearby deposits.

Previous Exploration
BHP Titanium Minerals Pty Ltd (BHPTM) carried out extensive exploration in the project area from 1987 to 1999 and outlined two areas of HM mineralisation. BHPTM’s exploration included aircore drilling, tonnage-grade estimations, assays, conceptual mine plan feasibility studies and environmental, geotechnical and hydrological studies. AMAX Mining (Australia) Inc. (AMAX) carried out exploration for HM in the project area in 1969, reporting a dominant ilmenite presence in the widespread HM mineralisation.

Miller’s Mill Deposit

Resource Estimation
Based on BHP historical drilling; and updated Continental Resource Management’s independent geologist report (August, 2011), the Company has determined a JORC (2004) inferred resource of 106Mt at 3.6% HM containing 2.8% ilmenite, using a lower cut-off of 2.5% ilmenite at Miller’s Mill Deposit over the entire thickness of the resource.