Menninnie Zinc Project

Profile

Figure 1. Tenements comprising Terramin's Menninnie Zinc Project

Menninnie Dam

Location

The Menninnie Zinc Project centres on the Menninnie Dam tenement (EL3640) covering 101 km²on northern Eyre Peninsula in South Australia, about 160km WNW  of the lead smelter at Port Pirie. The project is close to the industrial infrastructure and seaport of Whyalla, the third largest town in South Australia.

Menninnie Metals has recently purchased MMGs 76% interest in the tenement , bringing its (Terramin's) ownership to 100%.  The transfer of full title to the tenement has been approved by the Minister for Mineral Resources Development.

Scope

The Menninnie Dam tenement includes a JORC-compliant Inferred Resource of 7.7Mt @ 3.1% Zn, 2.6% Pb, 27g/t Ag at a 2.5% Pb+Zn cut-off. This Inferred Resource consists of 8 lodes; 6 in the Menninnie Central Prospect, and 2 in the nearby Viper Prospect.  There is scope to significantly extend these lodes with further drilling. Three other prospect areas have IP and geochemical signatures comparable to or better than the Menninnie central area.  These are discussed here and Menninnie Metals is preparing to drill these in the latter half of 2011.

Status

During 2008, 10,777 metres of drilling was conducted in mineralised areas adjacent to Menninnie Central, and an IP programme totalling 191 line km completed over prospective areas elsewhere in the tenement. MMG consolidated the project's technical database throughout 2009 and 2010 but did not carry out any new exploration activities in this period. Having resumed ownership and management of the project in January 2011, used the entire dataset in revising its 2007 resource estimate and reassessing the exploration potential of EL3640 and project areas to the north.  Menninnie Metals plans to resume drilling and geophysical work by mid 2011.

Nonning

Location

The Nonning tenement (EL3535) has an area of 312 sq km, adjoins the Menninnie Dam tenement on Northern Eyre Peninsula.  From mid 2008 until September 2010 Menninnie Metals operated and managed tenement EL 3535 (Nonning), approximately 70km N of Kimba  under a Joint Venture Agreement with Minotaur Operations Pty Ltd (MinOps), a wholly-owned subsidiary of Minotaur Exploration Limited.  Title to the tenement was held by Menninnie Metals in Trust for MinOps during the JV earn-in period.  In September 2010 MinOps agreed to sell its 100% interest in the tenement to Menninnie Metals.  The sale has taken place but the title transfer is still in progress.

Scope

Nonning is prospective for zinc-lead mineralisation similar to that of Menninnie Dam, and for epithermal gold deposits.

Status

Initial geophysical surveys (ground magnetics and IP, airborne VTEM and magnetics) have identified a number of prospective targets which will be followed up in 2011.

Kolendo

The Kolendo tenement, EL4285, granted to Menninnie Metals in July 2009, has an area of 208 square kilometres and lies to the west of Nonning (Figure 1).

The tenement is considered prospective for Menninnie Dam style zinc-lead mineralisation and for epithermal gold.  An airborne geophysical survey in 2010 identified several encouraging EM targets that will be investigated further in 2010.

Taringa

MMPL's Taringa tenement (EL 4669) covers 988 km2 to the north and east of Nonning and Kolendo.  Menninnie Metals has identified several areas within Taringa that have encouraging indicators of copper and/or gold mineralisation.  Reconnaissance airborne EM (VTEM) has confirmed the presence of conductive bodies in two of these areas, and ground-based follow-up is planned.  Several parts of the tenement are also believed to be prospective for Menninnie Dam style zinc-lead deposits.

Click here to read the JORC Competent Person Statement and Notes to Resources and Reserves.