The Liontown/Waterloo Project is located 40km southwest of Charters Towers in North Queensland. It is accessed by the Flinders Highway and the Gregory Developmental Road. Tenure for the Liontown/Waterloo Project area comprises two exploration permits (or part thereof) and one mining licence.

Liontown-Waterloo Project

Mt-Windsor-Plan

The project area lies within the Mt Windsor Sub‐province, which forms an east‐west trending belt extending for about 165km from the Leichardt Range, south of Ravenswood in the east, almost to Pentland to the west. Rocks of the sub‐province have been extensively intruded and dismembered along the northern margin by emplacement of the Ordovician to Permian Ravenswood Batholith and Lolworth Igneous Complex. A discontinuous cover of Tertiary alluvium, the Campaspe Formation, obscures much of the terrane.

The Liontown project area has been mined on a minor scale by underground methods and has been explored by numerous companies over several decades. Original prospecting in the area dates from the 1870s, but the deposit itself was discovered in approximately 1905 and mined between 1905 and 1911 for copper and gold which came from a lode that lies in the footwall to the main deposit.

Kagara (ASX:KZL) acquired the Liontown Project from Liontown Resources Ltd (ASX:LTR) for A$4.5m in December 2009.

Mineralisation in the Liontown Horizon is developed in the basal siltstone unit of the hangingwall sequence, with the most consistent mineralisation lying immediately above the pumice breccia. Mineralisation is developed as multiple zones of stratiform, laminated, semi‐massive and rarely massive sulphide. The Liontown host rocks comprise a footwall sequence of dacitic pyroclastics termed pumice breccia, which has been strongly silicified and chlorite altered.

Waterloo is a blind VHMS deposit that lies under 25 to 60m of Campaspe cover. Mineralisation occurs near the contact of a footwall sequence of pyrite‐sericite‐quartz schist and a hangingwall sequence of coarse rhyolitic volcaniclastics. It was discovered after interest was generated from the discovery of sericite‐pyrite schist outcrop in a creek to the east. Follow‐up RAB drilling outlined an area of anomalous base metals in weathered basement below the cover sequence. Drilling to date appears to have constrained the lodes that comprise the current resource, however the system remains open down plunge to the west and along strike to the east and west which has only been sparsely drilled.

The Liontown/Waterloo Project remains highly prospective for VHMS style mineralisation. The project area comprises the full sequence of prospective Trooper Creek Formation, which covers the Thalanga, Waterloo, Highway Reward and Liontown positions. It is noteworthy that large parts of the project area are covered by Tertiary and Quaternary sediments, which has been a significant impediment to previous exploration because of the conductive nature of the Campaspe Formation. Red River recently completed a total of four induced polarisation (IP) lines, for 12.8 kilometres, at the Liontown-Waterloo project. The results of the Stage 1 IP survey are highly significant for Red River, as it indicates that IP can see through the conductive cover formation and identify mineralisation, giving Red River the ability to identify new exploration targets in areas which previous explorers had discounted. For more details please refer to the ASX release “Multiple new drilling targets identified from Stage 1 IP survey results at Liontown-Waterloo” dated 6 February 2015.

Liontown Mineral Resource

Liontown hosts a JORC Code (2012) compliant Mineral Resource of 2,038Kt grading 0.5% Cu, 1.6% Pb, 4.6% Zn, 0.8g/t Au and 26g/t Ag. (8.3% Zinc Equivalent). The Mineral Resource estimate was published by Red River on the 24 June 2015 in the ASX release “Liontown Deposit JORC 2012 Resource Estimate”.

Category Type Tonnage (kt) Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t) Zn Eq. (%)
Indicated Fresh 334 0.4 1.9 4.6 1.2 20 8.3
Transitional 34 0.5 1.3 4.0 1.4 29 7.6
Oxide 36 0.7 1.5 4.4 1.7 31 9.0
Subtotal 403 0.5 1.8 4.6 1.3 21 8.3
Inferred Fresh 1,586 0.5 1.5 4.6 0.8 28 8.2
Transitional 85 0.7 1.7 5.4 0.4 15 9.4
Oxide 184 1.0 1.3 4.7 0.8 12 9.3
Subtotal 1,855 0.5 1.5 4.6 0.8 26 8.4
Total All 2,258 0.5 1.6 4.6 0.8 25 8.4
Total Fresh/Tras 2,038 0.5 1.6 4.6 0.8 26 8.3

Figures are rounded according to JORC Code guidelines and may show apparent addition errors. Details of relevant inputs for estimating Mineral Resources are given in the ASX release published by Red River Resources on 24 June 2015 Competent Person for the Liontown Resource is Stuart Hutchin of Mining One Consultants.

 

Waterloo Mineral Resource

Waterloo hosts a JORC Code (2012) compliant Mineral Resource of 707Kt grading 1.9% Cu, 1.6% Pb, 11.0% Zn, 0.9g/t Au and 50g/t Ag. (19.1% Zinc Equivalent). The Mineral Resource estimate was published by Red River on the 24 April 2015 in the ASX release “Waterloo Deposit – Updated Mineral Resource Estimate.

Resource Class Tonnage (kt) Cu (%) Pb (%) Zn (%) Au (g/t) Ag (g/t) Zn Eq. (%)
Transition              
Indicated 97 3.2 2.4 14.5 1.6 78 21.7
Inferred 69 0.8 1.1 6.4 0.4 24 7.8
Subtotal 166 2.2 1.9 11.1 1.1 55 15.9
Fresh              
Indicated 309 2.5 2.0 13.0 1.3 65 25.5
Inferred 232 0.9 0.8 8.3 0.4 28 13
Subtotal 541 1.8 1.5 11.0 0.9 50 19.1
Total 707 1.9 1.6 11.0 0.9 50 19.1
Oxide              
Inferred 55 0.2 2.3 0.1 3.7 15 -

Figures are rounded according to JORC Code guidelines and may show apparent addition errors. Details of relevant inputs for estimating Mineral Resources are given in the ASX release published by Red River Resources on 24 April 2015. Competent Person for the Liontown Resource is Stuart Hutchin of Mining One Consultants.