Australian Mines Unveils New Tin Mineralization Zones at Resende Project in Brazil
AUSTRALIAN MINES LIMITED (AUZ) Share Update September 2024 Monday 16th
Australian Mines Identifies Promising Tin Mineralization Zones in Brazil
Australian Mines Limited (ASX: AUZ) has announced the identification of three promising drill-ready target zones with elevated tin mineralization at its Resende Project in Minas Gerais, Brazil.
Instant Summary:
- Three drill-ready target zones identified at Resende Project.
- Soil sampling program revealed significant tin, indium, and bismuth anomalies.
- Historical alluvial tin mining in the area supports potential for new discoveries.
Resende Project Overview
Australian Mines Limited has made significant progress at its Resende Project in Minas Gerais, Brazil. The company has identified three drill-ready target zones with elevated levels of tin (Sn), indium (In), and bismuth (Bi). These findings are based on a comprehensive soil sampling program that covered five lines, spaced 400 meters apart, with samples taken every 50 meters along each line. A total of 231 samples were collected and analyzed.
The Resende Project is situated in a region known for its tin, tantalum (Ta), and lithium (Li) prospective drainage basins. Previous stream sediment assays had shown promising results, with tin concentrations reaching up to 1180 ppm. The soil sample assays revealed three distinct target zones with significant enrichment of tin and related pathfinder elements, indicating the potential for substantial mineral deposits.
Details of the Target Zones
Target Zone A: This zone is characterized by a broad anomalous trend from northwest to southeast, covering a strike length of approximately 1600 meters and a width of 300 meters. The area is dominated by tin and is believed to be near a Sn-granite source. The zone remains open along strike to both the east and west.
Target Zone B: This composite target zone shows coincident anomalous values of tin, indium, and bismuth, suggesting a Sn-granite related hydrothermal system. The anomalous zone is located on the southwest margin of the soil grid and remains open to the east and southwest. The area of interest extends approximately 300-400 meters along strike and 300 meters across strike.
Target Zone C: This zone is contiguous with Target Zone A and is characterized by a distinct coincident anomaly of tin, indium, and bismuth. It is interpreted to reflect a lower-temperature Sn-granite hydrothermal system. The zone extends approximately 600 meters along strike and 200 meters across strike.
Historical Context and Future Exploration
The Resende Project area has a rich history of tin mining, dating back to the 1940s. Historical alluvial tin mining activities have been identified in drainages downstream and immediately south of the newly identified target zones. This historical context supports the potential for discovering new mineralization systems similar to those exploited at AMG's Mibra Mine, which produces tin, tantalum, lithium, and feldspar concentrates.
Following the successful soil sampling program, Australian Mines plans to continue its exploration efforts by conducting further soil sampling across adjacent drainage basins. These basins have shown potential for rare earth elements (REE) based on earlier stream sediment programs. Results from this additional work are expected by the end of September and will be released in due course.
The identification of these drill-ready target zones is a significant milestone for Australian Mines. The elevated levels of tin, indium, and bismuth in the soil samples indicate a strong potential for substantial mineral deposits. This discovery could positively impact the company's stock as investors react to the promising exploration results. The historical context of tin mining in the area further supports the potential for new discoveries, which could enhance the company's valuation and investor confidence.
Investor Reaction:
Analysts are likely to respond positively to this announcement, given the promising exploration results and the historical context of tin mining in the area. The identification of drill-ready target zones suggests that Australian Mines is on the right track in its exploration efforts. However, investors will be keenly watching the upcoming results from further soil sampling and the company's strategic plans for drilling and development.
Conclusion:
Investors should keep a close eye on Australian Mines' ongoing exploration activities at the Resende Project. The identification of promising drill-ready target zones is a positive development that could lead to significant discoveries. Investors are encouraged to monitor the company's updates and consider the potential long-term impacts on their portfolios.