Introduction

Myanmar Metals Limited controls through farm-in arrangements with Merlin Diamonds Ltd and in its own right, one of the largest portfolios of highly prospective exploration tenements in the Northern Territory of Australia.

The Company has mineral rights other than diamonds for the farm-in tenements and holds all mineral rights for two tenements held in its own name. 

The Company’s primary focus in Australia is its base metals project located in Arnhem Land, in the Northern Territory.

Arnhem Land Project

The Company’s key base metals project is located in Arnhem Land and comprises granted tenements EL26206 and EL30051.  

EL26206 and EL30051

Geophysical Exploration

In 2013 a ground gravity survey was completed over an area defined by surface mineralisation with rock chips reporting >3% zinc.  The gravity survey identified a 0.8 milligal Residual Gravity anomaly that is spatially associated with the mineralised area.  Preliminary modelling of the gravity data indicates the potential source to be within 150 metres of the surface.  Review of historical sampling data has further supported the target as a mineralised body and identified new target areas within the region.

Gravity Modelling

Manual slope methods were applied to the gravity data, which estimated the depth to the source of the anomaly as between 100m and 150m below surface.  Gravity modelling software was subsequently used to model the response due to a rectangular prism over a portion of the anomaly at the depth determined using manual slope methods.  The model parameters used are similar to other carbonate-hosted base metal deposits and whilst there are an infinite number of models that can produce a similar response, the model was found to correlate well with the actual data.  The Company is confident the source producing the gravity anomaly is within the upper 150m and is amenable to reverse circulation drilling.

New Target Areas

The Company’s residual gravity anomaly is associated with an area defined by surface rock chip mineralisation.  Previous explorers collected conventional soil samples and rock chip samples over this area but did not encounter the mineralisation identified by the Company’s geological team.  Conventional soil samples exhibit no response over the mineralised area but do show a response down slope from the mineralised area.

A possible explanation is that this anomalism is due to the topography and sampling medium forming a down slope trap for the zinc-in-soil samples.  Previous explorers drill-tested the down slope zinc soil anomaly, however, economically significant mineralization was not detected.

This observation of surface mineralisation and an associated down slope soil anomaly is considered significant given that additional zinc soil anomalies were defined by previous explorers within the Company’s tenements.  Carbonate-hosted zinc deposits typically occur in extensive districts often covering several thousand square kilometres and the Company considers these additional soil anomalies as high priority targets that could host additional mineralised areas.

Regional Exploration

The majority of the Company’s exploration licences are held under application and are located on Aboriginal Land.  The licences are at various stages of progression through the Aboriginal Land Rights Act.  Ongoing review of historical exploration reports and publicly available geoscientific data enables the Company to continue to prioritise those licenses considered to be of higher prospectivity.

These include several licenses in northeastern Arnhem Land, which fall within an area described by the Northern Territory Geological Survey in 2013 as the ‘hottest untested exploration play in the NT’.  Significant potential exists in this area for various styles of sediment-hosted base-metals deposits, particularly in the northern part of the basin which is a direct analogue of the Pb-Zn endowed Batten Trough and which is effectively unexplored.  The licences are also considered prospective for gold, uranium and other commodities. 

The Company holds several licences located in western Arnhem Land closer to the East Alligator River uranium deposits (Ranger, Jabiluka, Koongarra, and Nabarlek).  These licences contain historic uranium mineralisation and are considered prospective for unconformity-type uranium deposits near the base of the Kombolgie Sandstone. 

Negotiations are continuing with the Northern Land Council to prioritise upcoming land access meetings or allow early ground access to these areas through Preliminary Exploration agreements. These agreements allow non-ground disturbing exploration including mapping, rock chip and soil sampling, and ground geophysical surveys.