Look in the rearview mirror and you may see a lot of carnage....

Look in the rearview mirror and you may see a lot of carnage. Look at the road map and you may see where you are going!


ARM are targeting 3 different styles of mineralisation at Capricorn Southeast in:
1) The Bedrock
2) The Laterites
3) Detrital Fans.

My personal expectation was that the Laterites or Detritals may be the motherload areas - however the Bedrock formation has for mine, grown in prospectivity over the past few days significantly.

So far they have only drilled at a very small number of the Bedrock targets. Within the Bedrock, the Company is searching for lenses of high grade mineralisation extending from the surface to decent depths. These will no doubt occur in lenses along the targeted zone (some 90km).

Reading the drill logs published by the Company yesterday I see some very large intersections of Shale interbed with Manganese and Vice-Versa. Some intersections up to 36m thick and many above 10m in thickness.

So why is this potentialy very very good news?

Firstly it would appear to reflect the material reported by the Company at surface.

Secondly it would appear to extend to significant depths thereby creating the scope for large pods or lenses.

Thirdly the widths being intersected are excellent.

To put things into perspective regarding any confusion as to the potential of shale hosted manganese deposits I have attached the following link which explains the depositional environment of some Very Large Deposits associated with Black Shales and Proterozoic Sediments in China which appear to be associated with some very very similar geology to the initial observations of the 'BEDROCK' sequence at Capricorn Southeast. There are multiple deposits in excess of 20MT at grades >22% (non-benificiated numbers) Most of them are in the Guangxi Province.

http://econgeol.geoscienceworld.org/cgi/content/abstract/87/5/1419

Given the sheer scale of the Bedrock Sequence at Capricorn Southeast the scope for 10's of millions of tonnes of High Grade Manganese mineralisation associated with the Bedrock has been dramtically increased in my opinion as a consequence of these drill log observations.

To put things into perspective only a fraction of these intersections of Manganese would need to be beneficiable to high grade to make this possible.

Should the Company achieve some consistant early Laterite mineralisation intersections (1-3m at the base of the laterite cap) then ARM's first wide spaced drilling campaing could proove very fruitful indeed.

Its ironical that a Company should report observations that are clearly in line if not better than many would have anticipated and get plundered as this has.

IMO
DYOR