INVITATION TO PARTICIPATE IN SHARE PURCHASE PLAN
Venus Metals Corporation Limited (VMC ) is pleased to offer you the opportunity to increase your investment in the Company through the approved Share Purchase Plan (SPP)
Proceeds raised through the SPP will principally be used for due diligence evaluation of the Youanmi Gold Mine, exploration activities throughout the Youanmi Gold project and for general working capital.
The SPP is offered exclusively to all shareholders who are recorded on the Company’s share register at 5pm (WST) on 25 May 2018 (Record Date).
It provides shareholders with an opportunity to buy a parcel of new shares in the Company with no brokerage or commission costs, irrespective of the size of their shareholding, up to a maximum value of $15,000.
The issue price of each share under the SPP is $0.12 which is at a discount to recent market trading in the company’s securities.
The issue of shares under the SPP will be limited to 3,333,333 new fully paid ordinary shares to raise only up to an amount of A$400,000.
The Company presently intends that any shortfall in the SPP not taken up by shareholders will be offered to directors and other professional and sophisticated investors as a further placement. There is no guarantee such offer will be made, or that such an offer will be taken up. Any such issue to directors will be subject to shareholder approval.
Participation in the SPP is optional and the right to participate is not transferable. The Offer opens on Friday 1 June 2018 and remains open for subscription until 5.00pm (WST) on 15 June 2018.
Full details on the SPP and how to participate are contained in the documents attached. To apply for a parcel of shares please read these documents carefully and follow the instructions on the enclosed personalised application form.
On behalf of your Board of Directors, I commend the Share Purchase Plan to you and thank you for your continuing support as a shareholder of Venus Metals Corporation which is much appreciated.
TRANSFORMATIONAL DEAL FOR VENUS YOUANMI GOLD MINE PURCHASE OPTION
- The Directors of VMC are pleased to announce that VMC has entered into 2 option agreements to enable it to purchase the historical Youanmi Gold Mine (MLs), and all associated infrastructure and mine village.
- The Youanmi Gold Mine has historic production of 667,000 ounces of gold grading 5.42 g/t from open pit and underground operations conducted between 1908 and closure in 1997.
- Substantial indicated and inferred resources remain at the Youanmi Mine.
- The Underground Youanmi deeps resource has JORC 2012 compliant indicated and inferred resources (Table 1). This resource is refractory in part.
2,400,000 t grading 8.5g/t for 657,900 ounces.
- The Near Surface JORC 2004 compliant indicated and inferred resources (Table 2) occurs in four areas.
5,200,000 t grading 1.5g/t for 245,700 ounces
The estimates of Mineral Resources near surface are not reported in accordance with the JORC Code 2012. A Competent person has not done sufficient work to classify the estimates of Mineral Resources in accordance with the JORC Code 2012. It is possible that following evaluation and /or further exploration work the currently reported estimates may materially change and hence will need to be reported afresh under and in accordance with the JORC Code 2012; that nothing has come to the attention of the acquirer that causes it to question the accuracy or reliability of the former owner’s estimates; but the acquirer has not independently validated the former owner’s estimates and therefore is not to be regarded as reporting, adopting or endorsing those estimates.
- The Youanmi Gold Mine closed in 1997 when the gold price was around AUD $400 per ounce. The gold price is now AUD $1760 per ounce, transforming the economics for gold mining. The gold price rise of over 4 times since mine closure is very significant for future feasibility studies.
- Importantly, Venus tenements completely surround the gold mine area and controls 40 km of exploration along strike. Venus has identified multiple EM targets along the Youanmi Shear to the south (refer ASX release 23 March 2018).
- The eleven mining tenements, totalling 5459 ha, cover a zone some 10km long by 7 km wide completely surrounding and covering the Youanmi Gold Mine and its nearby extensions.
- The Youanmi Gold Mine options present Venus with an excellent advanced opportunity with significant open cut gold and high grade underground gold resources with near term cash flow potential.
EIGHT EM CONDUCTORS PRIORITIZED FOR TESTING ALONG THE PROSPECTIVE YOUANMI SHEAR BETWEEN THE HIGH-GRADE PENNY WEST AND THE YOUANMI GOLD MINES
- Recent Interpretation of the HEM final survey data by independent geophysical consultants Core Geophysics has identified 25 mid- to late-channel conductors within and adjacent to the Youanmi Shear zone; 8 of these conductors (highlighted in red, see Figure 2) may represent priority targets for sulphide-related gold mineralisation and are considered high priority for follow-up work.
- The HEM survey targeted potential conductive horizons along 23 km of the Youanmi Shear Zone which may represent increased sulphide contents related to gold mineralisation such as at the historical Youanmi Gold Mine (c. 3.9M t @ 5.4 g/t Au for 667,000 oz Au) 1,2 and the high-grade Penny West Gold Mine (c. 0.2M t @ 22 g/t for 150,000 oz Au)3 , both located along strike from VMC’s tenements (Figure 1).
- Flight lines were also flown over the Penny West tenements including the historical Penny West Gold Mine and other known gold occurrences north of the mine. Subtle responses are closely associated with the gold occurrences and the mapped shear zone. This suggests that HEM responses to shear/sulphide associated gold mineralisation are detectable as subtle, weak to moderate strength, early to mid-time signals. The HEM anomalies were classified and prioritized based on their geological setting and anomaly strength.
- The HEM survey has confirmed the correlation of EM responses with known gold mineralization and, hence, similar EM responses on Venus’ ground along the Youanmi shear zone are prospective. All of the priority conductors on Venus’ ground are under transported cover. The Company is planning further field evaluation of the priority targets along the Youanmi shear zone in preparation for drill testing.
- Munro K D 1990 - Youanmi Gold deposit: in Hughes F E (Ed.), 1990 Geology of the Mineral Deposits of Australia & Papua New Guinea The AusIMM, Melbourne Mono 14, v1 pp 279-282
- Radford and Boddington, 2003. Penny West Gold Deposit, Youanmi, WA. crcleme.org.au/RegExpOre/PennyWest.pdf
The term ‘Exploration Target’ should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012), and therefore the terms have not been used in this context.
This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Venus Metals Corporation Limited planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may”, "potential," "should," and similar expressions are forward-looking statements. Although Venus Metals Corporation Ltd believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
YOUANMI PROJECT THICK HIGH-GRADE COBALT-NICKEL DISCOVERY
- Thick intersections of high-grade Co-Ni and anomalous Sc mineralization encountered at shallow depth in recent AC drilling (77 holes for 3022m) at the Youanmi Co-Ni Project (Figure 1).
- At Estonia Prospect, drilling outlines two north-trending zones of significant Co-Ni mineralization that may extend over strike lengths of c. 1.8 km and 1 km respectively, with widths of up to c. 250m. Best results include:
ES25 16m @ 843ppm Co & 0.71% Ni from 8m
Including 8m @1002ppm Co & 0.76% Ni from 12m
ES27 20m @ 504ppm Co & 0.56% Ni from 16m
Including 4m @1490ppm Co & 0.84% Ni from 20m
ES39 20m @ 0.76% Ni from 8m
Including 8m @ 1.07% Ni from 12m
- At Stone Tank Bore Prospect, significant Co and Ni intercepts form an east-trending zone c. 500m long. Best results include:
ST17 12m @ 917ppm Co from 24m
Including 4m @ 1490ppm Co from 24m
ST18 12m @ 687ppm Co & 0.75% Ni from 16m
Including 4m @ 950ppm Co & 1.05% Ni from 20m
- Anomalous scandium (Sc) is associated with the Co-Ni mineralization. The best Sc values are from Stone Tank Prospect:
ST01 12m @ 96ppm Sc from 12m
ST02 12m @ 83ppm Sc from 8m
- Individual one-metre samples for anomalous intercepts will be analysed for Co, Ni and Sc, and reported in due course. Infill AC/RC drilling is planned. Multiple new target areas, including along strike, will also be tested (Figure 2).
YOUANMI PROJECT EXPLORATION LICENCE GRANTED JORC 2012 INFERRED MINERAL RESOURCE ESTIMATE OF 330.6 Mt @ 0.29% V205, 5.95% TiO2 951,000 TONNES OF VANADIUM PENTOXIDE
The Directors of Venus Metals Corporation Limited (“Venus”) are pleased to announce the recent grant of exploration licence E57/986 Youanmi Project, Western Australia (Figure 1). This tenement contains a large Vanadium-Titanium-Iron resource that has been historically drill tested along 3.5 km strike length. Venus has recently completed a JORC 2012 compliant Inferred Resource estimate of 330.6 Million Tonnes @ 0.29% V2O5, 5.95% Titanium (TiO2) and 19.41% Fe (Table-1) which includes 167.7 Million tonnes @0.41% V2O5, 7.52% TiO2 and 24.6% Fe.
This resource estimate was carried out by Widenbar and Associates based on the historical RC drillholes (Australian Gold Resources Limited (AGR), 1998-1999) and diamond holes (Youanmi Metals Pty Ltd, 2010) data. There is strong geological evidence that the resource continues for many kilometres along strike within the Venus tenements which has potential for a major increase on the Vanadium-Titanium-Iron mineral resource (refer Target Potential page 4).
The Youanmi Vanadium Project tenement E57/986 (210.9 km2 ) is located about 42km southeast of Windimurra and 4km west of Youanmi Mining Centre (Figure 1). Venus holds a 90% interest and the prospector holds a 10% interest in this tenement (refer ASX Release 1 August 2014).
The tenement area falls within Youanmi Intrusive Complex in Southern Cross province of Archean Yilgarn Craton of WA. The tenement covers substantial strike length of Youanmi intrusive gabbroic complex that has intruded the poorly exposed Youanmi greenstone sequences. The Youanmi Intrusion occupies an oval shaped area about 20 kilometres northsouth by 10 kilometres east-west bounded by marginal greenstone lithologies and granitic rocks (Figure 2). The Youanmi Intrusion contains several prominent vanadiferous titanomagnetite units forming two strong magnetic horizons near the base of the intrusive stratigraphy. The units comprise many individual titano-magnetite bands up to 1m thick separated by magnetite gabbro. This stratigraphy is well exposed in the northern and western part of the tenement forming prominent resistive strike ridges (Figure 3).
The surrounding areas of this tenement contain numerous gold, zinc (+copper) occurrences or deposits.
During late 1990’s Australian Gold Resources Pty Ltd (AGR) carried out reconnaissance surface sampling, aeromagnetic data acquisition and interpretation, geological mapping, RC drilling, metallurgical test work and resource estimation. After the identification of vanadiferous horizons from surface sampling and aeromagnetic interpretation, 101 vertical RC holes were drilled at 80m spacing on 4 lines approximately 640m apart. Out of which 74 RC holes falls within Venus E57/986. AGR in 1999, had calculated the Pre JORC Inferred Resource of 136 Million Tonnes grading 0.42% V2O5 (cut-off 0.27% V2O5).
Subsequently a diamond drilling program was carried out during 2010 by Youanmi Metals Pty Ltd comprising 11 holes for 637.5m targeting Fe-V-Ti mineralisation which confirmed the presence of thick layers Vanadiferous Magnetite in this tenement.
JORC 2012 Resource Model:
Widenbar and Associates (“WAA”) was commissioned by Venus Metals Corporation Limited (“Venus”) to produce a Mineral Resource Estimate for the Youanmi Vanadium Deposit. Two high grade mineralised domains have been interpreted, with low grade domains lying between and above them. The Resource Estimate has been classified in the Inferred category as defined by the 2012 edition of the JORC code. WAA has reviewed the drilling, sampling and assaying data used in the estimate and considers it to be of sufficient quality to support the resource classification applied (refer Appendix 1- JORC 2012 Table). Historical drillhole data of 49 RC holes and 11 diamond holes were used for resource modelling1 (Figure 4).
Previous estimates of the Youanmi Vanadium Deposit (and other similar deposits in the region) have typically used 0.25 or 0.27% V2O5 economic cut-offs to report resources. Review of modern metallurgical process technology in similar deposits in Northern Territory has results in the economic cut-off being reduced to 0.1% V2O5.
WAA has reported a JORC 2012 compliant Inferred Mineral Resource estimate of 330.6 Million Tonnes @ 0.29% V2O5, 5.95% Titanium (TiO2) and 19.41% Fe (0.10% V2O5 cut-off, 350m RL base) for 951,000 tonnes of Vanadium Pentoxide resource.
This mineral resource includes high grade 167.7 Million tonnes @ 0.41% V2O5, 7.52% TiO2 and 24.6% Fe (0.25% V2O5 cut-off) for Vanadium Pentoxide resource of 683,000 tonnes.
The resource model wireframe cross section and block model section are presented in Figures 5a and 5b respectively.
Alan Birchmore has had extensive management experience in Australia, the UK, Europe, South America and the United States. His activities have included gold, diamonds, iron and supply base/marine support to the offshore oil and gas industry. As CEO of NYSE listed Bond International Gold Inc, he was responsible for a worldwide workforce of 3,300 employees, including the initial construction and start-up of the Super Pit at Kalgoorlie. Once commissioned, he negotiated the joint venturing of that operation with America's Homestake Gold. Through Northern Mining, he was a founding member through to development of what is now Argyle Diamonds.
Mr Birchmore was founding Chairman of St Barbara Mines (Gold) at its ASX listing and also led the listing of Mermaid Marine Australia Ltd as its Chairman. More recently he chaired United Minerals Corporation Ltd culminating in a scheme of arrangement with BHP Billiton to merge UMC's proposed iron ore mine, with the adjoining BHP Billiton Area C iron ore production hub. Mr Birchmore was appointed by the WA Government to Chair the Albany Port Authority and later Fremantle Ports.
Mr Matthew Hogan was formerly an Executive Director and Chief Executive Officer of United Minerals Corporation NL (UMC) which successfully discovered the Railway Iron Ore DSO deposit in the Central Pilbara. In February 2010 UMC was acquired by BHP Billiton for AUD$204 million.
Mr Hogan was instrumental in the ASX listing of Iron Ore Holdings Limited (IOH). IOH acheived a market capitilisation of over AUS $200 million and that company was ultimately acquired by BC Iron Limited for AUS $250 million. Mr Hogan was employed by the IOH and assisted the Board and management in that particular role.
Mr Hogans earlier career spanned sevaral decades in the stock broking industry as an authorised representative and where he specialised in corporate transactions at several firms including Hogan and Partners.
Executive Exploration Director
Bachelor of Science (Honors Geology)
Mr Fehlberg has a 50 years of successful experience in exploration for gold, base metals, diamonds and iron ore. Mr Fehlberg has been director of exploration for various ASX listed Companies since 1978, and during his career he has made numerous discoveries in all these commodities. In 1980 he led the drilling team for Spargos Exploration N.L. that discovered the depth extensions of the Bellevue Gold mine which was successfully brought into production.
In more recent times, Mr Fehlberg led the exploration team as Technical Director that discovered the Railway Iron Ore deposit for United Minerals Corporation Ltd. This Company was taken over by BHP Billiton in 2010 in a $204 million transaction.
Mr Barry Fehlberg is an Honours Geology graduate of the University of Adelaide (1968).
Chief Executive Officer
MAusIMM M.Sc (Geology), M.Tech (Hydrogeology), PG Dip in Geothermal Tech (NZ), Diploma in Science (GIS) (NZ)
Kumar has over 38 years experience in geological and hydrogeological investigations in India, New Zealand and Australia. He has successfully managed environmental studies, approvals, tenements, native title at United Minerals Corporation.
Kumar was appointed as Executive Director in July 2011 and managing various projects at VMC.