SYNDICATED METALS LIMITED - ASX: SMD

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Description

Syndicated Metals Limited listed on the Australian Securities Exchange (ASX) in December 2007 with the ASX Code "SMD". The Company is base metal focused with its principal projects located in the Mount Isa region in Northwest Queensland, one of the world’s premier base metal mining provinces. Our vision is to deliver superior returns to shareholders through the discovery and development of mineral deposits.

Syndicated has:

* a large ground position in the Mount Isa Inlier with a primarily copper focus plus multi-commodity exposure to molybdenum, gold, rhenium, uranium, lead-zinc and silver;
* interests in two exciting new mineral discoveries in the Mount Isa mining province where the Company has already built a substantial base metals inventory, namely the Barbara copper deposit and the Kalman South molybdenum-rhenium-copper-gold deposit;
* copper resource base expected to significantly expand with drill testing of additional advanced copper targets in proximity to Barbara;
* a 49% free carried interest to completion of final feasibility study in the Kalman South Joint Venture;
* a clear strategy to achieve near-term copper production;
* an early stage project near Exmouth in Western Australia with potential for lead-zinc-silver and uranium as well as phosphate;
* $4.8 million in cash at December 31st 2009

An experienced Board of Directors with a broad range of resources industry experience over a number of key areas has been brought together to direct the operations of the Company. Syndicated’s cornerstone investor is Korea Zinc Company Limited, one of the world’s largest zinc producers, which holds, through its Australian subsidiaries a 14.9% interest in the Company.

Mount Isa Region

The Mount Isa Inlier is recognised as Australia's premier base metal province. The region is host to a number of major mineral deposits including the Mount Isa copper and zinc-lead-silver deposits, the George Fisher-Hilton zinc-lead-silver deposits, the Century zinc-lead-silver deposit, the Cannington lead-zinc-silver deposit and the Ernest Henry copper-gold deposit.

Syndicated holds a highly prospective tenement package in the Mary Kathleen Fold Belt, located in the central part of the Mount Isa Inlier. The Mary Kathleen Fold Belt hosts several significant mineral deposits including the Dugald River lead-zinc deposit, the Mount Roseby copper deposits, the Mary Kathleen uranium mine, the Tick Hill gold mine and the Duchess and Trekelano copper-gold deposits.

Syndicated's tenements cover an area of around 3,700 square kilometres and form two principal project areas, namely; the Mount Remarkable Project located about 60 kilometres to the northeast of Mount Isa and the Kalman South Joint Venture located about 60 kilometres southeast of Mount Isa.

In addition, Syndicated has made application for tenements to the north of Mount Isa which, when granted, will form the basis of the Company's Carpentaria Zinc Project.

Kalman South Joint Venture (EPM13870)

The Kalman South Project (EPM13870) is a joint venture between Syndicated Metals and Cerro Minerals NL (formerly Kings Minerals NL). EPM13870 contains a significant portion of the Kalman molybdenum-copper-gold-rhenium deposit. The tenement also contains a number of other targets prospective for copper-gold +/- molybdenum. Under the joint venture Cerro has earned a 51% interest in EPM13870 by spending $4 million and, could earn up to a 70% interest in the tenement by completing a final feasibility study by July 2011, with Syndicated being free carried until completion of the study.

Since commencement of the joint venture to August 2008, 67 holes for around 25,600 metres of mostly core drilling was drilled within EPM13870 with excellent results. However little work has been carried out by Cerro at Kalman over the past two years and negotiations are currently underway aimed at restructuring the joint venture in order to reactivate this project.

The Kalman deposit is hosted in a steeply dipping shear zone adjacent to the regional-scale Pilgrim Fault. The mineralisation comprises chalcopyrite, molybdenite and pyrite within the altered calc-silicates (sediments) of the Corella Formation now comprised dominantly of alkali feldspar, actinolite and chlorite. The most recent Inferred Mineral Resource estimate for the Kalman deposit was released by Cerro to the ASX on September 10th, 2008. The total mineral resource estimate as announced was 60.8 million tonnes grading 0.32% Cu, 0.05% Mo, 1.19g/t Re and 0.15g/t Au. The southern part of the deposit as defined within EPM13870 was estimated at 36.7 million tonnes grading 0.31% Cu, 0.06% Mo, 1.46g/t Re and 0.15g/t Au.

The Mount Remarkable Project

The Mount Remarkable Project, which includes the Barbara copper-gold resource, is located about 60 kilometres northeast of Mount Isa and comprises mostly contiguous tenements covering around 1145 square kilometres. All tenements are 100% owned by Syndicated apart from two, (EPM16112 and EPM16197) which cover the northwestern part of the Barbara copper-gold deposit and the area surrounding the Blockade copper mine. These form the Leichhardt Joint Venture with Mount Isa Metals Limited, 51% owned and managed by Syndicated. Syndicated's aim is to delineate sufficient resources at the Barbara Project to form the hub of a long term copper-gold mining and processing operation.

Exmouth Project

Syndicated Minerals' Exmouth project is located about 1000 kilometres north of Perth and 50 kilometres east of Coral Bay, between the Exmouth Gulf and the Minilya Roadhouse. The project is considered to have potential for zinc-silver mineralisation, phosphate and sandstone-hosted uranium mineralisation similar to the Manyingee uranium deposit located 100km to the northeast.

Syndicated has the rights to a 100% interest in three granted exploration licences (E08/1413, E08/1739, and E08/1740), covering a total area of 480 square kilometres and an exploration license application (E08/1854) of 180 square kilometres that covers extensions of the prospective stratigraphy at the southern end of the project.

Georgina Basin Tenements

Syndicated Metals has submitted three tenement applications (EPM17676, EPM17678 and EPM17689) covering 716 square kilometres targeting phosphate in the Georgina Basin in northwest Queensland. These applications are located over areas of thin recent cover masking the Cambrian sediments which host the known phosphate deposits and occurrences within the Georgina Basin.

Previous phosphate exploration results have been compiled which indicate the presence of the phosphate bearing stratigraphy and elevated levels of phosphate in limited historical drilling. Following a decision by Syndicated to focus on its base metals interests, these tenements are now available for joint venture.

Mine For

copper, gold, molybdenum, rhenium, lead, silver, zinc, uranium, phosphate

Location of operation(s)

Queensland

Australian Basins

Georgina

Address

Level 1, 68 Hay Street
SUBIACO, WA, AUSTRALIA

Phone

(61 8) 9380 9440

Email

Website

http://www.syndicatedmetals.com.au

Last Updated

11/5/2011