ACN 009 253 187
Vulcan - Moving from Discovery to Potential
Deposit
Tasman’s promising 100% owned Vulcan iron-oxide copper-gold-uranium
(IOCGU or Olympic Dam-style) discovery near Olympic Dam in South
Australia has the potential to become a world class mineral deposit.
Figure 1: Tasman’s diamond drilling at Vulcan, June 2010.
Vulcan Discovery
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New IOCGU discovery by Tasman in November 2009, 30km north of Olympic Dam
8 holes drilled, best intercepts 7.8m at 1.21% Cu and 0.35g/t Au and 0.65m at 7.82% Cu, 2.41g/t Au
and 0.03kg/t U3O8. Recent hole intersected +150m of “classic” IOCGU hematite-rich rocks.
Very encouraging results from early exploration
IOCGU mineralisation associated with strong geophysical anomalies – gravity and magnetics
12km2 exploration target, comparable in size to Olympic Dam
Very small portion of target area tested
Figure 2: Location Plan showing the Vulcan IOCGU Project, nearby IOCGU
deposits/systems and several key (historic) tectonic lineaments (dashed blue lines).
Figure 3: Tasman tenements superimposed on regional gravity image.
Targeting
Vulcan was identified as a priority target from a combination of:
 Strong geophysical anomalies – Gravity and magnetics, as seen at Olympic Dam (see Figure 3).
 Favourable tectonic location or address – Vulcan lies very close to key tectonic lineaments or structures
used in the original targeting of Olympic Dam by WMC (Figure 2).
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Regional seismic data from Government Surveys – these revealed interesting, but unexplained
anomalous features in the area.
Figure 4: Vulcan residual bouguer gravity image (background) showing drill hole locations.
Follow-Up Drilling Results
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Since the first hole VUD 001, Tasman has drilled seven follow-up holes (Figure 4).
VUD 002 and 004 intersected thick zones of similar alteration and low grade mineralisation
o VUD 002 also intersected further anomalous rare earths - with one five metre zone (from 947m
to 952m down hole) averaging 0.29% Ce and 0.18% La, comparable to levels seen in
mineralised hematite-rich breccias at Olympic Dam.
o VUD 004 also hit a 1.37m thick zone averaging 0.91kg/t U3O8, indicating a potential new target
of interest.
However, major breakthroughs were achieved with holes VUD 003 and VUD 007:
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VUD 003 intersected a very thick zone (over 245m thick) of IOCGU mineralisation and alteration.
Mineralisation is much stronger than the discovery hole VUD 001. Intersection of 56.65m at 0.59% Cu,
includes:
o 7.8m down hole at 1.21% Cu, (and 0.35g/t Au) higher copper grade than the Olympic Dam
discovery hole RD 1.
o 0.65m at 7.82% Cu, 2.41g/t Au and 0.03kg/t U3O8 (Figure 5a).
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VUD 007 has intersected a very thick zone (+150m) of “classic” mineralised, hematite-rich breccias
(Figure 5b) on the eastern side of the Vulcan IOCGU target. The mineralogy and style of the zone in
VUD 007 is consistent with a well defined part of the Olympic Dam zonation sequence and now
provides a vector towards the potentially high grade southern part of the Vulcan system (see Figure 4).
Assays returned 163m at 0.23% Cu, 0.07g/t Au, 2.4g/t Ag, 0.04kg/t U3O8 and 0.01% Mo (hematite-rich
zone, including lower grade dykes, host rock intervals etc.)
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The host rocks consist of variably IOCGU – altered, originally granitic and metamorphic rocks which
now contain hematite, sericite, siderite, chlorite and sulphides (dominantly pyrite and chalcopyrite, and
minor molybdenite), as seen at Olympic Dam.
Host rocks variably fractured, veined and brecciated.
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Strong correlation between the specific IOCGU elements copper, gold, silver and uranium within the
holes.
Minor elements such as molybdenum, barium, cobalt, lanthanum and cerium (normally associated with
IOCGU deposits) are also strongly anomalous.
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The results from VUD 003 and VUD 007are extremely encouraging and demonstrate that
the geological processes at Vulcan are clearly very strong and capable of concentrating
large amounts of copper, gold and uranium.
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The most recent hole, VUD 008 has intersected 180m of alteration and some mineralisation.
Encouragingly, the copper sulphide, bornite was intersected in one part of the hole, again providing a
vector to high grade mineralisation – assays are awaited.
Figure 5a: VUD 003 Core photo of massive sulphide interval – pyrite/chalcopyrite - 0.65m at 7.82% Cu, 2.41g/t Au. (NQ
Core – approx. 50mm diameter).
Figure 5b:VUD007 Close-up photo of typical hematite breccia from VUD 007. Hematite is dark grey, sulphides (pyrite
and chalcopyrite) are yellow/silverish and the other minerals are carbonate (probably siderite), quartz and feldspar.
(NQ Core – approx. 50mm diameter).
Significance
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Vulcan is a very large target, comparable in size to Olympic Dam, and clearly capable of hosting a very
large ore deposit (see Figures 6 & 7).
However, after only eight drill holes, exploration at Vulcan is still at a very early stage – at Olympic
Dam it is well known that it was not until the ninth hole was drilled that other than low grade
mineralisation was hit, and only in the sixteenth hole (RD 17) that economic grades were intersected.
The main sulphide minerals intersected in VUD 001 to VUD 008 are pyrite and chalcopyrite and not
the higher tenor bornite or chalcocite as seen in higher grade parts of the Olympic Dam Deposit,
although minor bornite was observed in VUD008. However, Vulcan is clearly large enough (about
12km2, Figures 4, 6 & 7), for significant development elsewhere within the system of this style of
higher-grade, and economically more attractive mineral assemblage.
Figure 6: Olympic Dam (Upper) – Vulcan (Lower) residual gravity comparison
(calculated residual gravity response if Vulcan is at the same depth as Olympic
Dam.
Future Program
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Assess encouraging results from recent holes including refinement of geophysical model and dating of
selected samples from Vulcan system.
Selection of new drill targets based on vectors from recent drilling results.
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Until aboriginal heritage issues over the highest priority southern target area are resolved Tasman will
continue to focus on the northern and eastern sections of the Vulcan system.
Figure 7: Comparison of areal extent of regional IOCGU systems with Vulcan
target as currently defined.
Fission Energy Ltd Investment
Tasman holds a 19.7% interest (25,000,000 FIS shares) in Fission, which owns 50% of the Mt Thirsty JV. Mt
Thirsty is located 20km north of Norseman in Western Australia. The Mt Thirsty JV has a nickel-cobaltmanganese oxide deposit with a current JORC compliant Indicated Resource of 16.6 million tonnes at 0.14%
Cobalt, 0.60% Nickel and 0.98% Manganese and a JORC compliant Inferred Resource of 15.3 million tonnes
at 0.11% Cobalt, 0.51% Nickel and 0.73% Manganese. The Mt Thirsty JV has discovered a high grade nickel
sulphide prospect at Mt Thirsty which has so far returned down hole intersections of 6m at 3.4% Ni, 2m at
5.9% Ni, 2m at 3.5% Ni and 1m at 4% Ni in four separate holes. Follow up drilling to commence early April.
Eden Energy Ltd Investment
Tasman holds a 16.8% interest (35,121,988 EDE shares) in Eden, a clean energy company involved in
production, development and marketing of carbon fibre and nanotubes, and various hydrogen and natural
gas based fuel technologies in India and the US. It also holds a significant share in a joint venture over a
large UK coal seam gas, shale gas and conventional hydrocarbon project.
Tasman Resources Ltd – Contact Details:
Level 40, Exchange Plaza
2 The Esplanade, Perth, Western Australia 6000
Telephone: (08) 9282 5889; Facsimile: (08) 9282 5855
Website: www.tasmanresources.com.au
Email: mailroom@tasmanresources.com.au
Competent Person’s Statement
The interpretations and conclusions reached in this report are based on current geological theory and the
best evidence available to the authors at the time of writing. It is the nature of all scientific conclusions that
they are founded on an assessment of probabilities and, however high these probabilities might be, they
make no claim for complete certainty. Any economic decisions that might be taken on the basis of
interpretations or conclusions contained in this report will therefore carry an element of risk.
The information in this announcement, insofar as it relates to Mineral Exploration activities, is based on
information compiled by Robert N. Smith and Michael J. Glasson, who are members of the Australian
Institute of Geoscientists, and who have more than five years experience in the field of activity being
reported on. Mr Smith and Mr Glasson are full-time employees of the company. Mr Smith and Mr Glasson
have sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in
the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’. Mr Smith and Mr Glasson consent to the inclusion in the report of the matters based on
their information in the form and context in which it appears.
It should not be assumed that the reported Exploration Results will result, with further exploration, in the
definition of a Mineral Resource.