AMEX RESOURCES LIMITED
QUARTERLY REPORT
For the period ended 30 September 2009
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30 October 2009
The Manager
Company Announcements Office
Australian Securities Exchange
Exchange Centre
4
th
Floor, 20 Bridge Street
Sydney NSW 2000
Dear Sir,
QUARTERLY ACTIVITIES REPORT TO 30 SEPTEMBER 2009
Amex Resources (`Amex') is pleased to update our investors with the results of our exploration
programmes undertaken throughout the quarter, including:
MBA DELTA TITANO-MAGNETITE PROJECT - FIJI
Drilling is underway over the four domains of the Mba Delta.
The drilling will result in JORC resource over the four geomorphic domains at Mba.
Initial indications are that mineralisation extends to a greater depth than modelled in the 1970's
work by Manganex.
The components for the `pilot plant' have been ordered and are on route to Fiji.
Discussions continue with a number of parties in regard to `off take' agreements for the titano-
magnetite concentrate.
EnviroWorks have been appointed to conduct the baseline environmental study at Mba, which is
now underway and forms part of the Scoping and Feasibility studies.
BREAKAWAY DAM COPPER PROJECT - WA
A programme of diamond drilling has been completed over MLEM targets to test the extensions to
the copper mineralisation in BDRC 010.
All three planned holes intersected sulphide mineralisation, with a fourth diamond `tail' completed to
test the sulphide mineralisation at depth on BDRC 010.
The style of mineralisation encountered is indicative of the `feeder zone' for a Volcanogenic
Massive Sulphide' (`VMS') deposit, with further exploration required to delineate the location of the
massive sulphide mineralisation.
Assay results are expected in the coming weeks.
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Quarterly Report
For the period ended 30 September 2009
Amex has continued its exploration programme through the quarter, with work focusing on the Mba Delta
Magnetite project in Fiji and the Breakaway Dam Copper Project in Western Australia.
Evaluation and collation of the Company's new project areas continues, as well as active project generation.
A review of the exploration programme for the quarter is detailed below:
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1.
MBA DELTA TITANO-MAGNETITE PROJECT
The Mba Delta project is held by Amex under SPL 1463 (100% Amex Resources) and covers over 120 km
2
at the mouth of the Mba River, in the northwest of Viti Levu.
Mba Delta Project Location Fijian Islands
Amex's SCOPING STUDY for the Mba Delta has continued this quarter and has included:
Commencement of the baseline environmental study over the Mba Delta and its
surrounds.
The commencement of drilling to allow the calculation of a JORC resource.
Ordering of components for the `pilot plant' in Fiji.
Contact with various parties in regard to `off-take' agreements.
In addition to work on the Scoping Study, Amex has also established an operational base close to the delta
at Sorokoba, which will be used to house the exploration team and pilot plant. The base gives the Company
quick and easy access to the delta and its surrounds, and Amex has begun to compliment its team by
employing a number of the local Fijian community.
Amex's active work programme at Mba is detailed below:
1.1
BASELINE ENVIRONMENTAL STUDY
Amex has appointed Perth-based EnviroWorks to undertake the baseline environmental study and
environmental monitoring over the Mba Delta project. The baseline study commenced during the
quarter, with principle Laura Todd visiting the project.
EnviroWorks initial work programme has been to gather and collate the existing environmental data for
the Mba river, its delta and surrounds. The historical data is extensive and includes an environmental
study by Manganex from the 1970's as well as more recent studies including water quality monitoring
and floral & fauna studies.
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Quarterly Report
For the period ended 30 September 2009
The `desktop' study was complimented by a site visit and commencement of field observations and
sampling. Work included a overview of the project area and its surrounds as well as:
A detailed review of the river and its surrounding domestic and commercial users.
Sampling of the river at various strategic locations to monitor the water quality.
Checking of the `off-shore' ecosystems to gauge their current `health' and begin to determine
what effect a dredging operation on the Mba Delta may have on them, if any.
The active field programme for EnviroWorks will be ongoing and form a crucial part of both the scoping
and feasibility studies for the project.
Enviroworks principle, Laura Todd (left), with Amex country manager, Emori Toloi (centre), and Fijian field crew.
1.2
JORC DRILLING
Exploration by Manganex in the 1970's outlined a significant deposit of titano-magnetite rich sands at the
mouth of the Mba River. Drilling completed by Manganex was undertaken on 1000 x 500 metre centres,
to a depth of approximately three metres. This defined a significant deposit across three zones, which
can be expressed as an exploration target of approximately:
115145 Million Tonnes @ 6-7% Titano-Magnetite (Manganex, 1974)
A detailed evaluation of the deposit, including its mineralogy and geomorphology, has now been
completed. Amex plans to initially drill out Manganex's `Central Zone', which hosts the Sea Snake &
Remora domains, and will follow up this work by also drilling the Stingray and Flying Fish domains.
The drilling will result in an `Inferred' JORC code resource, with an exploration target in the order of:
150200 Million Tonnes @ 7-10% Titano-Magnetite (Amex, 2009)
The drilling at Mba is scheduled to be completed prior to the end of November, 2009. The JORC
resource will be calculated based upon the Amex and Manganex drilling, and geomorphic modeling.
Completion of the resource modeling is expected by the end of January 2010, or before.
Initial indications are that the mineralisation at Mba extends below the 2.5 3 metres modeled by
Manganex, and may result in additional tonnage being added to the deposit.
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Quarterly Report
For the period ended 30 September 2009
Figure 1. Google imagery of the Mba Delta showing the domains within the deposit.
1.3
PILOT PLANT
The resource drilling is currently generating substantial quantities of material for metallurgical sampling
and trial processing. Accordingly components of the pilot plant have been ordered and are now been
manufactured or are on site in Fiji. Components include:
A Wet Low Intensity Magnetic Separator
is
on order from Outotec in Florida in the USA, and
will be delivered in November, 2009.
A Shaker Table (for gravity separation) has been purchased and is already on site in Fiji.
Various splitters, screens and pumps are enroute to Fiji.
It is expected that the plant will be assembled and begin operation in early 2010. The plant will greatly
assist in confirming the test work previously undertaken by Manganex and assist our consulting
engineers, ProMet Engineering, in the design of the mining scenario and processing plant for the Mba
Delta operation.
1.4
OFF-TAKE AGREEMENTS
Amex has established the market for the titano-magnetite concentrate and made contact with a number
of potential end users. The response from the market has been encouraging and Amex will remain
focused on engaging the market, and will update investors as formal agreements put in place.
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Quarterly Report
For the period ended 30 September 2009
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2.
BREAKAWAY DAM COPPER PROJECT (E 29/585 & 666)
Breakaway Dam Project Location
2.1
DIAMOND DRILLING
Amex's programme of Moving Loop EM (`MLEM') has proven an effective exploration tool for the
accurate targeting of the mineralisation for drill testing. Amex initially planned three diamond drill
holes (BDD 001-003) to test the north western extensions to the mineralisation encountered in
BDRC 010 (see below).
MLEM Channel 15 (approx 50-75 m below surface) with existing (BDRC) and the completed drill holes (BDD).
The drilling was designed to test a number of MLEM targets and extend the known mineralisation
along more than 600 metres of strike. The drilling in each hole successfully intersected a number of
mineralized lodes in each hole, which predominantly contained pyrrhotite, pyrite and chalcopyrite
sulphide mineralisation.
Breakaway Dam copper project is located 18 kilometres
to the east of the goldfields town of Menzies and is
composed of two granted exploration licenses (E 29/585
& E 29/666), covering an area of approximately 39 km
2
.
The project is prospective for base metal mineralisation,
specifically copper-silver mineralisation.
Amex completed a programme of four diamond drill
holes to test a number of MLEM targets at the
Breakaway Dam (E 29/585) copper prospect.
The diamond drilling intersected sulphide mineralisation
in all four drill holes. Sulphides are predominantly
pyrrhotite, pyrite, & chalcopyrite and appear to be
indicative of the `feeder zone' of a Volcanogenic Massive
Sulphide (VMS) mineralised system.
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Quarterly Report
For the period ended 30 September 2009
Pyrite-Pyrrhotite mineralisation in BD 001
In addition a further diamond `tail' was added to BDRC 010 to test a Down Hole EM (`DHEM')
conductor detected following the previous `round' of RC drilling.
Initial geological analysis indicates that the drilling may have intersected portions of the `feeder zone'
for a Volcanogenic Massive Sulphide (VMS) system. Typically these `feeder zones' are adjacent to
the main massive sulphide mineralisation, in pritine systems, but show lower grades of
mineralisation than the `main zone'. Mineralisation typical of the `main zone' has yet to be
intersected by drilling at Breakaway Dam.
Pyrite-Chalcopyrite mineralisation in BD 002
The assay results from the drilling are currently pending but are expected in the coming weeks.
Amex has also undertaken DHEM on the three new drill holes, although problems with ground
conditions have meant that the full extent of these holes could not be tested.
In summary the drilling at Breakaway Dam indicates that:
Breakaway Dam represents a large, sulphide-rich mineralised system.
Mineralisation and previous geochemistry indicates that Breakaway may be a remobilized
VMS system.
Further exploration is required to delineate the location of the main sulphide lodes, whether
at depth or along strike.
Amex looks forward to updating shareholders on pending assays in the coming weeks.
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Quarterly Report
For the period ended 30 September 2009
3.
YUNGALGA HILL & MT BURGESS PROJECTS
Recent Amex Project Applications
4.
CONCLUSION
Amex continues its exploration programmes in both Fiji and Western Australia, and will continue update
investors as results are received from the various project areas. In addition, the Company's active project
generation and evaluation continues with a view to acquiring and exploring project areas that represent the
best possible opportunities to discover economic mineralisation for future development.
Yours faithfully,
Matthew Collard
Managing Director
Amex Resources Limited
Competent Persons Declaration
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled
by Timothy Putt of Amex Resources Ltd, who is a member of The Australasian Institute of Geoscientists and the Society of Economic
Geologists. Mr. Putt has sufficient experience that is relevant to the various styles of mineralisation and types of deposit under
consideration, and to the activity that they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves". Timothy Putt consents to the inclusion
in the report of the matters based on his information in the form and context in which it appears.
Forward-Looking Statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements
concerning Amex Resources Limited's planned exploration programme and other statements that are not historical facts. When used
in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may", "potential," "should," and similar expressions
are forward-looking statements. Although Amex Resources Limited believes that its expectations reflected in these forward-looking
statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statements.
Amex's project generation continues in Western
Australia, with several new tenement areas under
application.
The Yungalga Hill Project is located in the Musgrave
Block, near the eastern border of Western Australia. The
company's application covers an area in close proximity
of Traka Resources Ltd (ASX:TKL) extensive ground
holding, which was recently joint ventured to Anglo
American Exploration Pty Ltd. The project is
considered prospective for precious & base metal
mineralisation, as well as uranium.
The Mt Burgess Project is located 15 kilometres to the
north of Coolgardie in the Eastern Goldfields. The project
covers an area of greenstone stratigraphy that is
prospective for both gold and nickel.
Amex has begun data compilation and targeting for these
two areas as they proceed towards granting.
8
ACN 001 936 901
Corporate Information
Directors
Mr Dudley J. Kingsnorth
Non-Executive Chairman
Mr Matthew J. Collard
Managing Director
Mr Timothy S. Putt
Technical Director
Mr Yibo Qiu
Non- Executive Director
Company Secretary
Mr Gary Dunlop
Company Secretary
Registered and Principal Office
IBM Building, Level 3
1060 Hay Street
West Perth
Western Australia 6005
Tel: +61 (0) 8 9480 0455
Fax: +61 (0) 8 9321 0320
Issued Capital
At 30 September 2009, Amex had on issue
44,875,216 fully paid ordinary shares, and
2,250,000 unlisted options held by 1,064
shareholders.
Investor Relations
Enquiries concerning this Report may be directed to
either:
Mr Matt Collard Managing Director
Tel: +61 (0) 8 9480 0455
Mr Tim Putt Technical Director
Tel: +61 (0) 8 9480 0455
Shareholder Enquiries
Matters relating to shares held, change of address
and tax file numbers should be directed to the share
registry at:
Security Transfer Registrars Pty Ltd
PO Box 535
Applecross
Western Australia 6953
Tel: +61 (0) 8 9315 2333
Australian Stock Exchange releases and other
information on Amex Resources is available at
Amex's website at www.amex.net.au
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