The Asia Miner

JAN-FEB 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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88 | ASIA Miner | Volume 14 • Issue 1 | 2017 South Pacific OCEAN Minerals LLC has identified areas of prospective potential for rare earth elements, including scandium, in the Cook Islands' Exclusive Economic Zone. The company has entered into an agree- ment with the government for exclusive rights to prospect and ex- plore these areas. The areas in the Cook Islands were discovered during a research study of alternative sources of REEs conducted by Houston-based Deep Reach Technology, Inc (DRT). Ocean Minerals has entered into a licensing agreement with DRT for engineering technology and information gained during the study. The DRT research involved analysis of existing archived seabed sam- ples throughout the Pacific leading it to the discovery of these enriched sediments near the Cook Islands. DRT also performed laboratory tests on the samples and is working on an economic means of processing the sediments on board the production vessel at sea. Ocean Minerals believes it has reserved the most promising areas and plans during the next few years to undertake several phases of seabed sampling which will incorporate the collection of environ- mental baseline data. The areas reserved contain concentrations of scandium and heavy REEs. Ocean Minerals believes the scandium content has the potential to fuel a new aluminium-scandium alloy business serv- ing the aerospace and automotive industries. Rare earth elements (REEs) are critical to the demanding high tech, green energy and defence applications. New applications of REEs are constantly being discovered, including the use of scan- dium in the next generation of high strength aluminium alloys for aerospace applications. Scandium, when added in small quantities to aluminium, cre- ates a metal alloy which is extremely light, strong, corrosion re- sistant, heat tolerant and weldable. The use of such an alloy in automobiles and aircraft could yield fuel savings while protecting lives. This application could lead to a reduction in carbon output serving to reduce sea level rise to which the Cook Islands is highly vulnerable. Ocean Minerals, LLC is a Texas Limited Liability Company formed in 2016 with the goal to explore and develop ocean minerals in an environmentally sustainable manner utilising a precautionary ap- proach and employing world-class technology and expertise. The company strives to develop mineral resources which lead to an overall reduction in man's carbon footprint and total impact on the land and sea biosphere. DEVELOPMENT of the Coronation North deposit at OceanaGold's Macraes Goldfield project on New Zealand's South Island is expect- ed to begin during the current quarter. In December the company said that it remained on track to receive the permits required to advance the project into development. Exploration in 2016 increased the Coronation North measured and indicated resource by 62% from 134,000 to 218,000 ounces. This work was part of about 27,000 metres of drilling at Macraes in 2016, focusing on resource conversion, extension and identifying new zones of mineralisation from a pipeline of targets along the 35km Hyde-Macraes Shear Zone. Results include: Nunns - 6 metres @ 3.2g/t gold and 3 metres @ 7.5 g/t; Coronation - 8.9 metres @ 1.7 g/t, 8.4 metres @ 1.8 g/t and 5 metres @ 2.9 g/t; and Frasers Underground - 6.9 metres @ 3.5 g/t, 7.6 metres @ 3.2 g/t and 11.4 metres @ 2.1 g/t. The company also had exploration success at Waihi on the North Island with approximately 33,000 metres of drilling completed with three underground and up to five surface drill rigs. Surface diamond drilling continues to produce encouraging re- sults intersecting mineralisation over significant widths while testing the resource potential of major lodes, linking veins and four stock- work zones beneath the Martha open pit. Underground diamond drilling has focused on reserve and re- source additions at Daybreak, Empire and Christina veins. Oceana- Gold has received permits to mine in an area adjoining the Correnso mine to the west where high-grade intercepts demonstrate potential for reserve additions. Waihi results include 10.8 metres @ 9.25 g/t gold and 97.0 g/t silver and 1.8 metres @ 20.1 g/t gold and 836.3 g/t silver from surface; and 2.6 metres @ 93.80 g/t gold and 125.1 g/t silver and 7.9 metres @ 24.33 g/t gold and 79.9 g/t silver from underground. During the September quarter Waihi production decreased due mainly to lower grades and the temporary suspension of operations for a week at the beginning of August while at Macraes, produc- tion increased due to better underground grades, processing less stockpiled ore and better recoveries. The company expects to pro- duce 110,000-120,000 ounces in 2017 from Waihi and 180,000- 190,000 ounces from Macraes. In December OceanaGold commenced closure and rehabilitation activities at Reefton Gold Mine on the South Island. The work is expected to take several years to complete. Cook Islands REE exploration rights granted Processing facilities at the Macraes Goldfield project in the Otago region of on New Zealand's South Island Coronation North on track for development

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