Hi Ho, Hi Ho, it’s off to work we go

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THE DRILL SERGEANT: Each week any number of junior exploration plays set out to drill their ground. Here’s a small selection of what’s been happening this week.

Drilling Recommences at Matilda

Blackham Resources (ASX: BLK) announced the arrival of an RC drill rig at the Matilda mine, armed with the task of drilling a 4,000 metre program, targeting growing the Matilda mine life in the following areas:

M4 northern and southern extensions; M2 northern extensions; M1 West and Central lode northern extensions; and further definition of lodes linking M1/M3/M4 and M2 sub pits.

The drilling is designed to follow up on previous intercepts by testing down-plunge extensions with the aim of increasing the resources within open pit limits at both sites.

“Significant opportunities remain at the Matilda mine to extend the base load mill feed and grow the Matilda project’s mine plan beyond the initial four year mine life,” Blackham Resources managing director Bryan Dixon said.

“We are currently revising the Matilda mine resource to include additional drilling over the last 18 months.”


2015 Exploration Program kicked off

Xanadu Mines (ASX: XAM) informed of its exploration activities in 2015, which will cover the company’s Kharmagtai and Oyut Ulaan copper-gold projects.

Xanadu has commenced exploration activities at the Oyut Ulaan copper-gold project where it found outcropping high-grade gold and copper during initial works in 2013.

The company has been able to commence the program earlier than expected due to favourable weather conditions in Mongolia.

The current exploration program has been designed to test potential extensions to high-grade porphyry mineralisation along strike from the Diorite Hill and Stockwork Hill prospects and test an outcropping variably mineralised breccia dyke complex.

The work will include approximately 2,000 metres of surface trenching plus the acquisition of high-resolution ground magnetics and induced polarisation data.

The program has been developed around a realistic geological model and will contribute to defining a shallow resource estimate at Oyut Ulaan.

“Oyut Ulaan is a very exciting prospect, our last exploration program at Oyut Ulaan encountered spectacular results including multiple intersections with economic grades of copper-gold mineralisation from surface,” Xanadu Mines chairman Mark Wheatley said.

“It represents a great opportunity for Xanadu to utilise its local experience to explore for a large deposit, close to surface and of economic grade.”

Impact releases Maiden high-grade Resources at Commonwealth

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THE DRILL SERGEANT: Impact Minerals (ASX: IPT) released a maiden Inferred Mineral Resource for the company’s 100 per cent-owned Commonwealth gold-silver-zinc-lead-copper project, located north of Orange in New South Wales.

The JORC Code 2012-compliant Inferred Resource – at a 0.5 grams per tonne gold cut off is:

720,000 tonnes at 4.7g/t gold equivalent for a contained 110,000 gold equivalent ounces, comprising 2.8g/t gold, 48g/t silver, 1.5 per cent zinc, 0.6 per cent lead and 0.1 per cent copper.

The resource, which is open along trend and at depth, extends from surface to an average depth of 90m, has a strike length of 400m and is up to 25m thick.

Impact has also calculated a separate Inferred Mineral Resource (included within the overall resource) for the massive sulphide lens at Main Shaft alone to demonstrate the high-grade nature of such deposits that are the principal target for the company’s exploration program.

The Main Shaft Inferred Resource is:

145,000 tonnes at 10g/t gold equivalent for a contained 47,000 gold equivalent ounces, comprising 4.3g/t gold, 142g/t silver, 4.8 per cent zinc, 1.7 per cent lead and 0.2 per cent copper.

“This maiden gold resource demonstrates the high grade nature of the mineralisation at Commonwealth,” Impact Minerals managing director Dr Mike Jones said in the company’s announcement to the Australian Securities Exchange.

“The fact that it is open along trend and at depth indicates that further drilling could rapidly increase the size and grade of this deposit, in particular with our focus on the discovery of further very high grade massive sulphide bodies like that at Main Shaft.

“The last line of drilling at the southern end of the deposit returned a bonanza grade intercept of four metres at 41g/t gold, 93g/t silver, 5.5 per cent zinc and 2.3 per cent lead in what we hope will be a new gold-rich massive sulphide lens.

“Further drilling should begin in the next Quarter.

“The resource contains just over 1,000 ounces per vertical metre of gold equivalent from surface.

“This is very encouraging for the possible future development of an open pit mine given that such values represent a common threshold for profitable underground mines.”

Email: info@impactminerals.com.au

Website: www.impactminerals.com.au

Mithril intersects Stark disseminated and massive sulphides

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THE DRILL SERGEANT: Mithril Resources (ASX: MTH) released results of two follow-up diamond drill holes (NRD15001 and 002) recently completed at the company’s Stark copper-nickel-PGE prospect near Meekatharra in Western Australia.

Both holes intersected disseminated and massive copper nickel sulphide mineralisation down dip and along strike from previously drilled mineralisation.

NRD15001 intersected multiple mineralised intervals within a sequence of gabbro and minor intermixed sediments (downhole widths), including:

50.25 metres (from 162.1m downhole) of weak disseminated sulphides (pyrite-pyrrhotite-chalcopyrite);

0.27m (from 213.43m downhole) of massive sulphides (pyrrhotite-chalcopyrite-pentlandite, followed by 10.95m of disseminated sulphides (pyrite-pyrrhotite-chalcopyrite);

7.65m (from 226.75m) of weak disseminated, blebby and stringer sulphides (chalcopyrite-pyrrhotite); and

0.15m (from 246.35m) of massive and stringer sulphides (chalcopyrite-pyrrhotite).

Mithril explained the mineralisation encountered by NRD15001 is approximately 40m down dip of drill hole NRC14008, completed in December 2014, which intersected:

16m @ 0.81% copper, 0.09% nickel, and 0.39g/t PGE’s from 183m, including 4m @1.91% copper, 0.18% nickel, and 0.96g/t PGE’s from 194m.

“NRD15001 intersected a cross–cutting dolerite dyke towards the bottom of the hole which is interpreted to have ‘stoped out’ the prospective basal gabbro contact along which massive sulphides can occur,” Mithril Resources said in its ASX announcement.

“The 0.15 metres of massive and stringer sulphides from 246.35 metres occurs at the lower edge of the dyke and may represent the remains of a thicker massive sulphide unit that was present before the dyke was emplaced.”

The second hole, NRD15002 was drilled as an extension (diamond tail) to reverse circulation drill hole (NRC14002) also carried out in December 2014.

The latest hole intersected 35.25m (from 304.2m downhole) of weak to moderate stringer and disseminated sulphides (chalcopyrite-pyrite).

“The mineralisation extends for at least 22 metres into the footwall sediments below the basal gabbro contact,” Mithril explained.

“The NRD15002 intercepts lie 100 metres north of NRD15001 within the central portion of a largely undrilled 500 metre long modelled EM plate.

“Both holes have been cased for downhole EM surveying and geological logging and sampling is currently underway.

“Drill samples are expected to be dispatched to the laboratory this week for analysis with results expected next month.”

The Stark copper-nickel-PGE prospect is situated within the company’s Nanadie Well project on tenements subject to a Farmin and Joint Venture Agreement with Intermin Resources (ASX: IRC).

Under the terms of the JV, Mithril can earn up to a 75 per cent interest in the project tenements by completing expenditure of $4 million over six years with a minimum expenditure of $250,000 required by 14 April 2015 and before any withdrawal.

Email: info@mithrilresources.com.au

Website: www.mithrilresources.com.au

White Rock identifies new Mt Carrington copper target

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THE DRILL SERGEANT: White Rock Minerals (ASX: WRM) has received results from a deep-penetrating, electrical geophysics ‘MIMDAS’ survey recently undertaken at the company’s Mt Carrington project in northern New South Wales.

According to White Rock the survey has revealed a new large, robust anomaly, which has been interpreted to represent a potential porphyry copper system at Mt Carrington.

The anomaly is located 1.5 kilometres west of known shallow copper mineralisation on the central Mining Leases at Mt Carrington and extends vertically from 150 metres depth to in excess of 1,000m depth.

The anomaly has not been identified in previous geophysics nor tested by previous drilling.
 
White Rock indicated it will shortly complete interpretation of final data in order to prioritise targets for drill testing in the near future.

Drilling will be partly funded by a $200,000 grant awarded by the NSW Government under its ‘New Frontiers’ Cooperative Drilling Program.

“The results of the MIMDAS survey are outstanding and underpin what we consider are the most exciting and compelling exploration targets we have generated at Mt Carrington to date,” White Rock Minerals managing director Geoff Lowe said in the company’s announcement to the Australian Securities Exchange.

“The data provides an excellent endorsement of our porphyry copper-gold exploration model and will form the basis for drill testing of a number of high priority targets within a potentially extensive alteration system interpreted to be more than five kilometres in diameter.

“Success in the upcoming drill program is likely to generate significant new interest in the Mt Carrington project for the company, and would complement the pending development of the existing shallow gold-silver resources on the project.”

Email: info@whiterockminerals.com.au

Website: www.whiterockminerals.com.au

Carnarvon completes Thai Asset divestment

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THE ROADHOUSE BOWSER: Carnarvon Petroleum (ASX: CVN) announced it has completed the divestment of the company’s remaining 20 per cent interest in the Thailand oil production concessions L44/43, L33/43 and SW1A.

The company flagged the divestment in December 2014 saying it had agreed to sell its remaining 20 per cent interest in its Thai assets to the Berlanga Group for a base consideration of US$50 million plus final completion adjustments.

In addition, Carnarvon retains its US$32 million receivable in the Thai assets, which was agreed to as part of the Loyz transaction the company announced in March 2014.

“We are pleased to have completed another important step in transitioning the company into a well-funded and well-resourced North West Shelf focused business,” Carnarvon Petroleum managing director and chief executive officer Adrian Cook said in the company’s announcement to the Australian Securities Exchange.

“Carnarvon now has the cash to ensure it can add value in the Phoenix area through further exploration and appraisal activities, fund ongoing corporate costs through the US$32 million receivable linked to Thailand oil field revenue and grow the business through further exploration activities, such as those relating to its 100 per cent-held Cerberus blocks in the Carnarvon Basin.”

Poseidon identifies new Lake Johnston mineralised zone

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THE DRILL SERGEANT: Poseidon Nickel (ASX: POS) has received assays for 29 underground diamond drill holes undertaken at the company’s Lake Johnston project, prior to its acquisition.

The company claims the latest results will increase the potential life of the mine and enhance the profitability of the intended restart.

The drilling was carried out before the mine closed in order to explore beyond the known extent of the current mineralised zones at Maggie Hays and was mostly in the southern and northern ends of the ore body.

The upshot has been the identification of mineralised extensions.

Drilling highlights include:

Western Zone:
4.29 metres at 3.51 per cent nickel;

2.96m at 2.09 per cent nickel;

2.55m at 1.92 per cent nickel; and

2.39m at 1.3 per cent nickel.

Suture Zone:
17.77m at 1.48 per cent nickel;

17.84m at 1.39 per cent nickel;

9m at 1.38 per cent nickel; and

5m at 3.23 per cent nickel.

North Shoot
4.05m at 2.38 per cent nickel;

9.86m at 1.55 per cent nickel, including 3.9m at 2.47 per cent nickel;

2.64m at 3.45 per cent nickel;

5.6m at 2.68 per cent nickel; and

2.9m at 2.24 per cent nickel.

“The drilling in the southern end of the deposit was particularly targeting newly identified mineralisation to the west of the known ore body,” Poseidon Nickel said in its ASX announcement.

“This mineralisation is now recognised as being remobilised nickel sulphide associated with a large scale basal fault which runs under the main Maggie Hays ore body and through the middle of North Shoot.

“Drilling at Maggie Hays also concentrated on defining extensions within the North Shoot and infilling data.

“The drilling consistently intersected potentially economic extensions to the mineralised zone.

“This is likely to lead to an initial mine life significantly beyond that previously expected by Poseidon.

“The drilling also indicates that further extensions to the ore body are likely when follow up drilling is undertaken.”

In a resource estimate released in December 2014, the North Shoot was all categorised as Inferred resource.

Poseidon intimated the amount of drilling carried out at the time warranted a much better result.

“It was identified that survey errors existed in the database resulting in misalignment of the model with the development, resulting in low geological confidence in the resource modelling,” the company said.

“These survey errors have now been corrected. In addition 100 drill holes were identified as missing from the database and the data for these have now been located.”

Poseidon is now in the middle of a resource re-estimation, which it anticipates should result in the majority of the North Shoot being upgraded to Indicated resource category or higher.

The company has also kicked off a detailed mine planning and scheduling program, which will examine maximising the ore extraction and redeveloping the mine infrastructure to better access the ore zones.

This work is expected to be complete in March 2015, some three months ahead of the original schedule.

Email: admin@poseidon-nickel.com.au

Website: www.poseidon-nickel.com.au

Toro Energy passes latest Wiluna milestone

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THE BOURSE WHISPERER: Toro Energy (ASX: TOE) has ticked off another important box as it progresses development of the company’s wholly-owned Wiluna uranium project in Western Australia.

Toro announced the Western Australian Environmental Protection Authority (EPA) has approved the Environmental Scoping Document (ESD) for the project extension.

The EPA received 27 submissions following a two-week public review of the ESD in October 2014 and its approval follows Toro’s responses to the submissions.

The approvals follow major environmental approvals from the Western Australian and Federal governments to establish a processing facility and commence mining two of Wiluna’s deposits, Centipede and Lake Way.

The ESD provided information about Toro’s plans to integrate two additional deposits at Millipede and Lake Maitland into an extended Wiluna project.

Toro explained the purpose of the ESD is to identify the key environmental issues to be addressed during further government assessment of the project, and to identify the work required to complete the environmental review.

“The EPA’s approval of the ESD will allow Toro to continue preparation of the Public Environmental Review (PER) as the next step in the assessment process,” Toro Energy managing director Dr Vanessa Guthrie said in the company’s announcement to the Australian Securities Exchange.

“The EPA has determined that the PER should be open for public review for a 12-week period and Toro is planning to release this document in mid-2015.”

Toro considers the PER to be a further opportunity to consult with the community about plans for the wider Wiluna project, where it can explain how development of the Millipede and Lake Maitland deposits can be undertaken with the environment and local and regional communities in mind.

Toro said it looks forward to further consultation with the community about its extended project and remains confident that a rigorous government environmental assessment for Millipede and Lake Maitland can be completed during 2016.

Email: info@toroenergy.com.au

Website: www.toroenergy.com.au

Ramelius Resources locks in forward gold sales

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) has sold forward 47,200 ounces of gold at an average price of $1,582 per ounce.

The company explained the forward program represents approximately 40 per cent of its forecast production of the Mt Magnet operation in Western Australia over the next two years, and approximately 20 per cent of total planned group production for the same period.

Ramelius said the gold price it achieved under the hedging program will assist the company in securing a satisfactory profit margin for the Mt Magnet operation.

The program also delivers a level of certainty for future cash flows from Mt Magnet as the company moves into an expansion phase with a proposed near-term development of its two new high-grade WA gold projects, Vivien and Kathleen Valley.

“Our new hedging strategy delivers a number of medium-term benefits to the company, particularly in executing our growth strategy, at a time of high gold price volatility,” Ramelius Resources chief executive officer Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“With a clear view to profitability, the company can progress further pit cut-backs at our Mt Magnet operation, whilst still retaining exposure to gold price upside.

“The underpinning of future cash flows also forms a crucial element in reaching a final decision on our two high-grade, high-margin gold development projects at Vivien and Kathleen Valley.”

Email: info@rameliusresources.com.au

Website: www.rameliusresources.com.au

Immuron signs agreement to sell Travelan in China

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THE ROADHOUSE PHARMACY: Immuron Limited (ASX: IMC) has entered into an agreement with Linker Holdings Limited, a Beijing company with offices in Hong Kong, for the sale of Travelan in the Peoples’ Republic of China, Hong Kong and Macau.

Under the agreement, Linker will have the exclusive rights to market, distribute and sell Travelan as a functional food and a dietary supplement in its licensed territory and has undertaken to contractually comply with specified annual minimum purchase obligations.

Immuron said Linker’s minimum purchase obligations represent a notable increase in the volume of the company’s Travelan business and will be measurable in multiples of the company’s current volumes, adding that the Chinese market has the potential to eclipse the combined global sales of Travelan in all other regions.

The company talked up the scale of the opportunity the deal presents, indicating the success many products marketed in China experience, often being transformative for the originator company.

Immuron said the commencement of this increase in Travelan sales is expected to occur as soon as Linker attains regulatory approval from the Chinese Food and Drug Administration (CFDA).

“Travelan is currently available in Australia and Canada,” Immuron chairman Dr Roger Aston said in the company’s announcement to the Australian Securities Exchange.

“China represents a very large market opportunity for the expansion of our global Travelan franchise.

“China is a large and increasingly wealthy market, in which gut and liver health are important concerns.

“Additionally, the South East Asian cultures’ pre-disposition to, and appreciation of, the benefits of colostrum strongly positions Travelan in this market.

“Linker has a team with a proven record of successfully commercialising a range of products, which gives us great confidence on the potential of Travelan in the Chinese market and we expect that the strength of this market combined with minimum purchase order requirements will result in substantial growth in Immuron’s revenue over the coming two-to-three years.”

 

Website: www.immuron.com

Elixir completes Petra project seismic

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THE ROADHOUSE BOWSER: Elixir Petroleum (ASX: EXR) announced the acquisition of a proprietary 2D seismic survey on the company’s Petra project, located in Washington County, Colorado USA.

The company said approximately 35 kilometres of seismic acquisition was completed with no incidents, on time and within budget.

Based on quality assurance undertaken during the shooting of the survey, Elixir said it considers the data quality to be very good, adding conditions for the acquisition were ideal, with winter conditions providing a good seismic response.

Elixir indicated the data is currently being processed and integration of the new data into the company’s data set will be completed mid to late March 2015.

The company anticipates the detailed interpretation of the new data together with the existing data set will further enhance its understanding of the structures in this core area of the Petra project.

“The seismic shoot was undertaken without a hitch by our Denver based partner and further adds to their already proven operating capability,” Elixir Petroleum managing director Dougal Ferguson said in the company’s announcement to the Australian Securities Exchange.

“We eagerly await the integration and interpretation of the full data set which will allow both Elixir and Apollo to determine the next stage of the exploration program.

“The completion of this survey is yet another milestone we have accomplished in less than six months from the initial acquisition of the Petra project.”

Email: info@elixirpetroleum.com

Website: www.elixirpetroleum.com