Steel Minerals - Iron, Nickel and Tungsten
Iron Ore
Cullen has two Joint Ventures for Iron Ore in the Ashburton/West Pilbara Region and one in the Paraburdoo Region:
| Project | Province | JV Partner / Manager | Target Type / Comments |
|---|---|---|---|
| Mt Stuart Iron Ore Joint Venture | Ashburton / West Pilbara Region, WA | API JV (Aquila Resources 50%; AMCI 50%) | Channel-hosted Iron Deposit (CID) |
| Wyloo Dome Iron Ore Project | Ashburton / West Pilbara Region, WA | FMG | Bedded Iron Deposit (BID) |
| Paraburdoo Iron Ore Project | Pilbara Region, WA | FMG | Bedded Iron Deposit (BID) |
View Ashburton Projects - Simplified Geology and Tenement Location pdf
Mt Stuart Iron Ore Joint Venture (Cullen 30%, API 70%)
The Mt Stuart Iron Ore Joint Venture comprises Australian Premium Iron Management Pty Ltd (API) 70% and Managers, and Cullen Resources Limited, 30% and contributing. API is a JV between Aquila Resources Limited (50%), and AMCI Holdings Pty Ltd (50%). These two entities are both substantial shareholders in Cullen. The Joint Venture is part of API's substantial tenement interests in the West Pilbara, including a joint venture with Red Hill Iron Limited, which forms a large, contiguous land package with significant resources of Channel Iron Deposits (CID's) already defined (501Mt@ 56.43%Fe).
On 16 May 2007, the West Pilbara - Mt Stuart Joint Venture announced to the ASX an initial Resource Estimate for its Catho Well Channel Iron Deposit (CID) of 68Mt @ 55.38% Fe. The Catho Well CID is one of nine separate iron resources in the West Pilbara Region; centred approximately 50 kilometres southwest of Pannawonica, in which API has an interest.
On 7 March 2008, the API JV announced an updated Resource Estimate for Catho Well of 79.5Mt @ 55.34% Fe. Positives of the Catho Well Resource are the relatively low average phosphorous levels at Catho Well (0.037%) and average alumina levels of 3.06%. There may be the opportunity to blend this resource with others in the project area to satisfy potential product specifications.
View Iron Ore Poster pdf
Wyloo Dome Iron Ore Project (Iron Ore Rights JV with FMG Ltd)
This is a Joint Venture with the Fortescue Metals Group Ltd which can earn up to an 80% interest in the iron ore rights on a group of tenements (EL08/1393, ELs47/1154, 1649 and 1650) in the West Pilbara Region which include Mamba and Marra Brockman Iron Formations along the eastern and northern margin of the Wyloo Dome. These formations host the adjacent Metawandy bedded goethitie-haematite deposits of Hamersley Iron Pty Ltd. FMG has completed an aeromagnetic and radiometric survey over the northern portion of the tenements, purchased satellite imagery, and completed reconnaissance mapping and rock chip sampling. Assays included Fe values of economic interest (up to 66% Fe).
Wyloo Location Plan
Paraburdoo Iron Ore Project - Iron Ore Rights JV with FMG Ltd.
The Company has signed a Memorandum of Understanding with Fortescue Metals Group Ltd (FMG) allowing FMG to earn up to an 80% interest in the iron ore rights on Cullen's EL52/1667, located ~25km southeast of Paraburdoo in the Pilbara Region of Western Australia.
EL52/1667 includes potential for bedded iron deposits within the Brockman Iron Formations, along strike from the Paraburdoo and Channar Group of iron deposits.
Paraburdoo Location Plan
Tungsten
Minter Project, Central Lachlan Fold Belt, NSW (Cullen 100%)
At the Minter Project near Lake Cargelligo, Cullen is targeting stockwork and vein-type tungsten mineralization related to the granitic cupolas (domes).
Broad zones of low grade tungsten mineralisation in stockworks of quartz-carbonate-pyrite veinlets in hornfelsed sediments are known from 1980s drilling (best intersection 27m @ 0.16 % WO3, PDH2). The target at Doyenwae is higher grade stockwork and vein type tungsten mineralisation within or adjacent to the underlying granitic cupolas (domes). This model is based on magnetic interpretation and analogies to vein/stockwork tungsten deposits elsewhere, such as in China and Europe.
Exploration drilling and soil sampling by Cullen to date indicates an extensive zone of tungsten-anomalous stockwork veining is considered to be related to underlying granitic cupola(s) as the potential source of the tungsten mineralisation.
Minter Poster
Nickel
| Project | Province | JV Partner / Manager | Target Type / Comments |
|---|---|---|---|
| Gunbarrel | Northeastern Goldfields, Yillgarn Craton | BHP Billton | Komatiite - hosted |
| Killaloe | Northeastern Goldfields, Yillgarn Craton | Cullen Resources | Komatiite - hosted |
| Forrestania | Southern Cross Province, Yilgarn Craton | Hannans Reward | Komatiite - hosted |
Gunbarrel (Cullen 25%, BHPB 75%)
The Gunbarrel Project in the northeastern Goldfields is located ~90km E of the Yandal Gold Belt. It covers granite-greenstone terrane, prospective for both gold and nickel deposits. BHPB manage the Gunbarrel Nickel Joint Venture and have earned a 75% interest in the nickel and base metals rights in certain Gunbarrel tenements. Cullen retains a 25% free carried interest to a Decision to Mine.
BHPB has identified the following positive indicators for nickel sulphides:
- Geological similarities to the productive Leinster-Mt Keith Greenstone Belt;
- Indications of thick, prospective channel facies ultramafics from magnetic data;
- Limited earlier exploration work in an area mostly covered (80-85%) by transported overburden;
- Ni-Cu geochemical anomalies from earlier exploration; and
- Occurrences of nickel sulphides in previous drilling.
BHPB completed lag geochemistry, geophysical surveying (EM) and drilling of a number of deep diamond holes to test nickel sulphide targets (electromagnetic conductors) at the AK 47 prospect. One of these holes, GBD2, intersected massive nickel sulphide mineralization : 0.20m @ 1.79% Ni at the AK47 prospect.
Northeast Goldfields Projects Location Plan
Killaloe (Cullen 100%)
Killaloe is located approximately 25 km NE of Norseman in the Eastern Goldfields of WA and covers Archaean greenstones between the Zuleika Shear and the Boulder-Lefroy Fault at the southern end of the Norseman-Wiluna Greenstone Belt. The area is highly prospective for both gold and nickel deposits.
Within the Killaloe tenement area, ~27 strike kilometres in two parallel belts of ultramafics are stratigraphically equivalent to rock units hosting the world-class Kambalda and Widgiemooltha nickel mines to the north. Previous nickel exploration (1960 to 1982) comprised only limited percussion drilling along these belts.
Exploration for massive nickel sulphides by former joint venture partners Sipa Resources International Ltd and Nickel Australia Limited included ground electromagnetic (EM) surveys, and diamond, reverse circulation and air core drilling. Twelve conductors were tested and identified either as sulphidic black shales or as barren massive sulphides.
Exploration for gold is continuing at the Duke and Cashel prospects
View Killaloe Geology Map
Forrestania (Cullen 20%, Hannans Reward 80%)
In April 2006, Cullen and Hannans Reward Limited jointly acquired (50:50) the Stormbreaker Nickel Sulphide Project and the North Ironcap Gold Project, located in the Forrestania region of Western Australia. This is a strategically important group of highly prospective tenements for both nickel sulphides and gold.
The Stormbreaker Project is interpreted to contain 8 km strike length of the same ultramafic units that host Western Areas NL's Flying Fox, New Morning and Daybreak Nickel Deposits, approx. 12 kms to the south.
Following a re-structure of the Joint Venture, Hannans increased its equity in the Forrestania tenement group to 80%; and will Free Carry Cullen at 20% to a Decision to Mine (DTM) based on completion of a Bankable Feasibility Study. At a DTM, Cullen may participate in Mine Development at 20%, or take a 2.5% Net Smelter Royalty, on the Mining Area excised from the on-going Exploration Joint Venture area on which Cullen remains 20% Free Carried until any subsequent DTM.
The Hannans-Cullen JV has completed the first modern ground geophysical exploration employed in the Stormbreaker Prospect area. In early 2008, Hannans Reward, as Manager of the JV, completed two new geophysical surveys (MLEM and SQUID)
A review of all previous geophysical surveys (completed by Hannans and others) was initiated to identify any unresolved conductors. Auger soil sampling is has been completed to target the basal contact of a major, strike-extensive (approx. 10km) interpreted ultramafic unit within the JV area. This will be followed by aircore drilling to test any resulting soil anomalies.
The recent start-up of Western Areas' Flying Fox Nickel Mine, just 12km south of the Hannans-Cullen tenements, and the entrance of Kagara Zinc Limited as a new player in the Forrestania greenstone belt attest to the area's prospectivity. Cullen's exposure to exploration success on the Hannans-Cullen ground remains significant and relatively risk free.
Forrestania Summary Location Plan
