REWARD MINERALS LTD - ASX: RWD

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Description

Reward Minerals is a potash, base metals and gold exploration company listed on the Australia stock exchange (ASX Code: RWD).

POTASH EXPLORATION PROJECTS

Gascoyne

The Gascoyne project comprises 13 granted Exploration Licenses, covering approximately 2600 sq km’s, within the Carnarvon Basin in the Western Australia. The Carnarvon Basin has a geological setting similar to the Canadian Basins that host the Saskatchewan deposits. Logistically the project is adjacent to the National Highway and has existing port facilities and salt works nearby. The oil exploration efforts in the area have defined the basin which Reward has use for its modelling and defined its potash drilling targets.

Officer

The Officer project comprises 8 Exploration Licenses, covering approximately 1500 sq km’s, within the Officer Basin in the Western Australia. The Officer Basin is a very large sedimentary basin with extensive salt horizons, thus having the potential to host a ‘world class’ potash deposit. Major salt diapers are present at surface (Madley and Browne) and seismic survey have delineated sub surface areas of salt uplift.

Rodinga

The Rodinga project comprises 6 granted Exploration Licenses, covering approximately 5000 sq km’s, within the Amadeus Basin in the Northern Territory. The basin geometry is akin to the Spanish basins that host the Cardona deposit/s. Seismic surveys conducted for oil and gas exploration have interpreted the evaporites close to the surface, facilitating economical exploration and subsequent exploitation of potential potash horizons. Potash (sylvite) has been logged in oil wells drilled in the area suggesting the basin ‘went to dryness’ and thus hosts a deposit.

Willara

The Willara project comprises 5 Exploration Licenses, covering approximately 1400 sq km’s, within the Canning Basin in the Western Australia. The Canning Basin was the subject of a potash exploration programme carried out by BHP in the 1980’s. Whilst no potash was encountered the drilling delineated extensive salt horizons at depths of between 900 and 1800 metres. Open file reports on the programme concluded that the area was highly prospective and further drilling was warranted. No further work was done however. Reward has pegged what it believes to be the most prospective areas. Subsequent pegging by Rio Tinto surround Rewards holdings and has the basin completely covered.

LAKE DISAPPOINTMENT PROJECT

The Lake Disappointment project is comprised of 7 Exploration Licenses covering 1600sqkm’s over the playa lake of the same name. An Access and Heritage agreement was executed, in February 2006, between the Martu People and the Company in respect of Exploration Licenses E69/2156-2159 and E45/2801-04. The resource estimates for total contained Sulphate of Potash (SOP) are as follows:

Lower estimate - 7,705 Mt @ 3.17kg/t for 24.43 Mt K2SO4
Upper estimate - 8,635 Mt @ 3.17kg/t for 27.37 Mt K2SO4

The difference between the upper and lower figure relates to depth and area assumptions for the lake margins.

The average potassium sulphate (SOP) content per tonne of lakebed sediment is derived from the analysis of the whole drill core. The average of 3.17kg/t translates to 6.17kgSOP/m3 of lakebed material. Higher grade areas of the lake reported 10.40 kgSOP/m3. In practice the recovery of SOP will be via the (solar) evaporation of the entrained brines. Brine samples drawn from drill holes have returned SOP values as high as 20.01g/L. Of significance is the average (arithmetic mean) SOP value of 12.56g/L for all brine samples collected. Vigorous brine flow was encountered in all of the holes drilled. Brine flow parameters are currently being determined.

GABANINTHA PROJECT

The Gabanintha Gold Project comprises four granted prospecting licences, 12 prospecting licence applications and three exploration licence applications and covers a total area of 81km2. The Gabanintha project tenements are situated in the Meekatharra District of the Murchison Mineral Field and are prospective for gold, copper and nickel. They include the former Gabanintha gold mine workings. Since listing Reward Minerals has completed numerous drilling campaigns, culminating in the definition of drill indicated resources at Yagahong. The holes at Yagahong were completed on a 20m x 20m grid covering an area 150 metres long by 100 metres wide, immediately north of the 60 metre deep Yagahong Pit.

Reward Minerals commissioned consultants G C Arthur and Associates, to prepare a preliminary 3D Visualization and quantity estimate for Gold/Copper mineralization intersected in drilling below the existing Yagahong open pit at Gabanintha. This study was to establish whether a mining feasibility study is indicated, and to highlight further drilling targets.

The results of this study suggest that an underground mining operation may be viable, and a pre feasibility study is recommended. The attached tables report the quantity estimates at both 4g/t Au and 1g/t Au cutoff grade.. A JORC compliant drill indicated resource has been calculated as follows:

4g/t Au lower cut
151,000 tonnes @ 12.1g/t Au for 59,121ozs (no upper cut)
148,000 tonnes @ 10.7g/t Au for 51,027ozs (50g/t upper cut)

1g/t Au lower cut
511,470tonnes @ 4.35g/tfor71,559ozs(50g/tuppercut)

JERVOIS PROJECT

Jervois Range copper-silver-base metals project 280km east north east of Alice Springs, Northern Territory, covering an aggregate area of 117km. The Jervois Project comprises two exploration licences, 16 mineral claims and 14 mineral leases, plus three authorised holdings and covers a total area of 117km2. A complete tenement schedule is included in the annual report. Within the Marshall-Reward lode system there appears to be several north plunging higher grade zones assaying above 2% copper. Drilling density is currently insufficient to define resources in these zones. Both the northern and southern shoots show a broad southerly extension down to about 180m depth which could be interpreted as downward influence of higher level supergene alteration but this is very speculative conclusion without the benefit of supporting data. Infill drilling aimed establishing the ore potential of these shoots is the top priority for the Company at the Jervois Project.

Bellbird

The relatively small number of “grade” drill holes intercepts at the Bellbird Lode (9 holes over 500m strike length) suggest that there may be an approximately 160 metres deep shoot plunging flatly at about 20 degrees north. There is virtually no testing to 250 metres depth at Bellbird, within the confines of this possible shoot north of hole J33 although MIMEX delineated a target some 300m north – and fitting within the current shoot interpretation – which was unsuccessfully drilled by abandoned holes J6 and J7. Very shallow Britannia drill holes BR97-148 and BR-149 intersected 4m @ 1.67%Cu, 160m above the MIMEX target.

Green Parrot

Within the Green Parrot lodes system, south of the Marshall prospect, the Green Parrot East lode has the potential as a smaller but high grade accessory to the Marshall-Reward and Bellbird prospects. As previously noted, the western Green Parrot lode was subjected to a short-lived and unsuccessful mining operation by Plenty River Mining Co. MIMEX apparently consider the Green Parrot to be too restricted in size, and hence tonnage. However there does not appear to be much recognition by either MIM or Plenty River of the Green Parrot East lode which certainly deserves further investigation in view of a strong IP response and the several drill hole intersections with significant, albeit variable, Cu-Ag-Pb-Zn assays.

Mine For

copper, lead, silver, zinc, potash, gold

Location of operation(s)

Western Australia, Northern Territory, Queensland

Address

159 Stirling Hwy
NEDLANDS, WA, AUSTRALIA

Phone

(08) 9386 4699

Email

Website

http://www.rewardminerals.com

Last Updated

02/03/2010