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 Recommencement on New Zaway Target

Tawana Resources (ASX: TAW) is set to recommence drilling at the company’s 100per cent-owned Mofe Creek project in Liberia.

The program will focus on the new Zaway North-West exploration target and has been designed to minimise costs and focus on the most value accretive targets with scale potential, and pre-existing drill access.

An initial 19 hole-program over the Zaway North-West and Zaway main extension targets has been defined.

“This is an exciting drill target that has the potential to add significant resource tonnes to the project and is geographically located within a one to two kilometre radius of the current Zaway-Main deposit,” Tawana Resources executive chairman Wayne Richards said.

“The continuity and extension of the Zaway deposit, coupled with the potential low operating cost of US$40.60 per tonne Free On Board at a 2.5 million tonnes per annum production rate as outlined in the Scoping Study, provides a great opportunity for value appreciation within the company.”

Sefaatli Phase 2 Drilling to Commence

Having completed its Phase 1 drilling at the Deliler and Tulu Tepe uranium prospects in late 2014, which generated a number of encouraging high grade results, Anatolia Energy (ASX: AEK) announced a Phase 2 drilling program will commence in March 2015.

The Phase 2 drilling program will consist 40 holes advancing over 7,000m and will be completed at a density which is expected to be sufficient for an initial resource estimate.

Core material will be collected from both the Deliler and Tulu Tepe prospects for preliminary metallurgical ‘bottle roll’ test work, and chemical and ‘closed can’ radiometric analyses for disequilibrium studies.

These studies will be necessary for the estimation of an initial resource.

Anatolia Energy interim CEO and MD Paul Cronin said.
“Based on the results of our recent drilling and surface mapping, the
Sefaatli project is emerging as an exciting uranium district, with results to date exceeding our expectations,”

“It is increasingly likely that Sefaatli may be capable of being developed as a satellite operation to feed into our advanced Temrezli ISR uranium project.

“I am confident, that at the completion of the current drilling and testing program, an initial resource can be estimated at Sefaatli.”


Drilling underway at Stark copper-nickel-PGE Discovery

Mithril Resources (ASX: MTH) has commenced a diamond drilling program at the Stark copper–nickel–PGE discovery, located southeast of Meekatharra in Western Australia.

A 300-metre diamond hole will be drilled approximately 40 metres down-dip of two drill intercepts recently obtained from the first ever drill test of Stark by the company with the aim of confirming the prospect’s grade potential and continuity of mineralisation.

The drilling will also test a modelled ground EM conductor, the bulk of which is interpreted to lie beneath the two intercepts.

Results from the program are expected by March 2015.

Cobre adds another lithium project, GBM picks up a goldie.

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THE BOURSE WHISPERER: The resilience of the small end of town exploration sector continues to show its hand as companies enhance their exploration portfolios.

Cobre completes fifth WA lithium acquisition

Cobre Montana (ASX: CXB) has completed the acquisition of lithium prospective Exploration Licence 74/0543 near Ravensthorpe in southern Western Australia.

It will be the company’s fifth lithium investment in WA, with others including interests in lithium projects south of Perth.

The new tenement is being acquired from Dempsey Minerals, with title transfers having been lodged with WA’s Department of Mines and Petroleum.

The licence area contains a sizeable proportion of the Cocanarup Pegmatite Field which hosts lithium and rare metals and forms part of a geological suite hosting the nearby Mt Cattlin lithium/tantalum project, owned by Galaxy Resources (ASX: GXY) and recently subject to an option to purchase by General Mining (ASX: GMM).

“The Cocanarup pegmatites contain abundant lithium minerals and have been the subject of past beryl production,” Cobre Montana said.

“Cobre’s focus is lithium micas contained within the pegmatites, which it will evaluate as part of the company’s strategy to commercialise the production of lithium from micas.”

Cobre is hoping it can repeat its recent achievements at Ravensthorpe, having been successful in extracting lithium from micas at Lepidolite Hill near Coolgardie in Western Australia and the Cinovec project in the Czech Republic where it has partnered with Focus Minerals (ASX: FML) and European Metals (ASX: EMH) respectively.

The company considers the Ravensthorpe material selected for processing test work to have similar mineralogy to Cinovec which achieved lithium float recoveries of 98 per cent and leach extractions of 99.5 per cent.


GBM to acquire gold project from Drummond Gold

GBM Resources (ASX: GBZ) has struck a binding Share Sale Agreement with Drummond Gold (ASX: DGO), under which GBM will acquire a 100 per cent-interest in Mt Coolon Gold Mines, a wholly-owned subsidiary of DGO.

The terms of the agreement include a consideration payable by GBM to DGO consisting of a cash payment of $850,000 and the issue and allotment of 50 million shares in GBM.

The acquisition of Mount Coolon gives GBM a tenement holding and resource inventory, located 250 kilometres west of Mackay in Queensland in the northern Drummond Basin an established gold mining region.

Mount Coolon Gold Mines has published resources containing a total of 283,000 ounces of gold from three deposits, of which the largest, Eugenia contains 63 per cent of the total defined resource.

This deposit is considered by GBM to have the greater exploration potential.

The tenement package includes four granted Mining Leases, two granted exploration permits and one exploration permit application covering a total area of 802 hectares.

“The Mount Coolon Gold Mines acquisition provides an opportunity to rapidly upgrade the confidence levels of the key Eugenia resource, and to quickly add further resources from known project areas,” GBM Resources said.

“This upgraded resource base will provide the foundation to investigate near term production options, including from heap leaching of oxidised ores at Eugennia.

“GBM will evaluate a range of funding options to progress Mount Coolon.”

Tap Oil walks away from Otway Basin Farm-in

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THE ROADHOUSE BOWSER: Way back in September 2013 Tap Oil Limited (ASX: TAP) announced it had executed an agreement with WHL Energy Limited (ASX: WHN) for an option to acquire an initial 10 per cent interest in exploration permit Vic/P67 in the offshore Otway Basin.

Under the terms of the agreement, Tap purchased an option to acquire an initial 10 per cent interest in Vic/P67 by paying up to US$2.95 million of the Year Two commitment seismic costs in the permit.

The payment was deferred until 31 March 2015.

Tap has now advised WHL that it has elected not to exercise its option to acquire 10 per cent of the VIC/P67 permit.

The final seismic cost amounts to US$ 2,778,887 and remains payable on 31 March 2015.

Upon payment Tap will have no further obligation or liability in respect of exploration permit Vic/P67.

Email: info@tapoil.com.au

Website: www.tapoil.com.au

Sandfire blazes Solar Power trail

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THE CLEAN ENERGY CAFE: It’s been a long time coming but at last a mining company operating in the middle of one of the most sun-drenched landscapes in the world is embarking on a solar-power initiative.

Sandfire Resources (ASX: SFR) has signed an agreement with juwi Renewable Energy to construct a 10.6 megawatt (MW) solar power station at the company’s DeGrussa copper mine in Western Australia.

The $40 million project will involve construction of the largest integrated off-grid solar array in Australia, which Sandfire believes has the potential to establish DeGrussa as an industry leader in the use of renewable power for mining and processing operations.

Funding for the facility is being coordinated by juwi, which will be owner and operator with Sandfire’s cash contribution to the project coming in under $1 million.

The proposed solar power station will utilise a 10.6MW solar array comprising 34,080 solar photovoltaic panels that track the sun and a 6MW battery.

It will be constructed on 20 hectares of land near the site of the current underground mine and 1.5 million tonnes per annum concentrator.

Sandfire boasted that when constructed, the facility will be one of the largest integrated off-grid solar power systems to be used in the mining industry anywhere in the world.

The solar power station will be fully integrated with an existing 20MW diesel-fired power station at DeGrussa, which is owned and operated by Kalgoorlie Power Systems (a subsidiary of Pacific Energy, ASX: PEA) under an agreement with KPS.

This agreement will be structured to maximise the consumption of lower cost solar power and therefore reduce Sandfire’s reliance on diesel.

Sandfire explained the integrated system will be designed so the diesel power station continues to provide base-load power to the DeGrussa mine with sufficient minimum load to ensure it can respond quickly to meet the power requirements of the process plant and underground mine.

The project is expected to achieve savings in the consumption of diesel fuel and will deliver a significant environmental benefit for the DeGrussa copper mine, reducing its carbon dioxide emissions by an estimated 12,000 tonnes per year.

“The scale of this project will be an Australian and world first – a unique combination of an off-grid, high capacity solar power array which will be fully integrated with an existing diesel power station,” Sandfire Resources managing director Karl Simich said in the company’s announcement to the Australian Securities Exchange.

“It is a very manageable project which, importantly, will not impact on the efficiency or safety of our existing operations, while allowing Sandfire to make a solid contribution to the broader challenge of reducing CO2 emissions and potentially reducing our operating costs in the long run.

“It has the capacity to significantly reduce our medium and long-term power costs, especially with further extensions of the mine life of the DeGrussa project.

“We are pleased to have this opportunity to work with juwi, a world-leader in renewable energy, to advance the use of solar power in the mining industry.

“We are also confident that this project will help to promote the use of renewable energy in the resource industry, and potentially streamline and improve the technology to make a bigger contribution to powering mine sites in the future.

“This project is entirely consistent with our ongoing efforts to optimise and enhance our operations at DeGrussa and reduce costs wherever possible.

“We are continuing to explore other options to reduce our energy costs, including using alternatives such as Compressed Natural Gas for gas-fired power generation.”

Email: info@sandfire.com.au

Website: www.sandfire.com.au

IMX confirms high-grade graphite at Chilalo

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THE DRILL SERGEANT: IMX Resources (ASX: IXR) has received final assay results from diamond drilling completed last year at the company’s Chilalo graphite project in south-east Tanzania.

The company claims the results reinforce the potential for a sizeable graphite resource at Chilalo as the diamond drilling results correlate with those from a twinned Reverse Circulation (RC) drilling program.

IMX said these results could lead to a maiden JORC 2012 Mineral Resource estimate for the project.
 
The final assay results from the 2014 diamond drill program included:

Hole DD067
24 metres at 12.29 per cent total graphitic carbon (TGC) (twinned from Hole RC140 which returned 24m at 11.7 per cent TGC);

Hole DD068
24m at 12.5 per cent TGC (twinned from Hole RC157 which returned 24m at 13.1 per cent TGC);

Hole DD069
12m at 10.2 per cent TGC and 10m at 9.64 per cent TGC (twinned from Hole RC151 which returned 20m at 7.2 per cent TGC); and

Hole DD070

16m at 10.3 per cent TGC and 16m at 7.4 per cent TGC (twinned from Hole RC154 which returned 16m at 11.7 per cent TGC and 16m at 5.9 per cent).

 

Location of RC and diamond drilling with notable intersections. Source: Company announcement

 

IMX indicated the diamond drilling core samples will undergo metallurgical testwork in order to glean information regarding the flake size distribution of the deposit, flotation recoveries and concentrate grades as well as providing enough core for marketing samples to be prepared.

The company explained its metallurgical testwork program and resource calculation are progressing, with both expected to be completed in March 2015.

“The Chilalo project is emerging as an exciting opportunity for IMX,” IMX Resources acting CEO Phil Hoskins said in the company’s announcement to the Australian Securities Exchange.

“We have made outstanding progress in the six months since completing a desktop review of the graphite potential at Nachingwea.

“We are looking forward to receiving the results of both the metallurgical testwork and the resource estimation.

“Our initial objective was to rapidly assess Chilalo’s potential against competing graphite projects internationally.

“With this work almost complete, we look forward to putting Chilalo on the map as one of the highest quality, undeveloped graphite deposits in the world.

“We expect to receive initial results from the recently commenced high-level development study on Chilalo next month, and this, together with the maiden resource and metallurgical testwork, should pave the way for us to progress to the next stage.”

Email: info@imxres.com.au

Website: www.imxresources.com.au

Cobre Montana metallurgy contributes to Cinovec Resource upgrade

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THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) has claimed its metallurgical processing technique has been a major contributor to a recent Resource upgrade at the Cinovec tin-lithium project in the Czech Republic.

Cobre said the test processing methods it had employed on the combined tin-lithium project contributed to a major upgrade of the project’s resource inventory, particularly its lithium potential.

Australian tin developer, European Metals Holdings Limited (ASX: EMH) is the 100 per cent owner of the Cinovec’s project.

EMH incorporated the new Cobre results to redefine the economics of the resource, which delivered:

An Inferred lithium Resource of 5.5 million tonnes lithium carbonate equivalent (LCE), 514.8 million tonnes at 0.43 per cent lithium oxide (0.1 per cent lithium cutoff); resulting in a 285 per cent increase in tonnage and a 175 per cent increase in contained lithium; and

An additional Exploration Target of 3.4 to 5.3 million tonnes LCE, 350 to 450 million tonnes at 0.39 to 0.47 per cent lithium oxide.

“The higher Inferred lithium resource estimate at Cinovec is a pleasing outcome, reinforcing the company’s metallurgical approach to optimising the project’s potential,” Cobre Montana managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

It builds on the company’s recent breakthrough in extracting lithium from micas from one of its Western Australian projects, allowing the new Czech results to be incorporated into the current Cinovec scoping study, due for completion by mid-year.”

Cobre explained the initial success it achieved in Western Australian using process technology developed by Perth-based Strategic Metallurgy and subject-to-patent applications, to extract lithium from micas deposits at Lepidolite Hill, near Coolgardie in a joint initiative with Focus Minerals (ASX: FML).

“The high lithium yields from the lepidolite micas at Lepidolite Hill and the zinnwaldite micas from Cinovec we announced in October 2014, and February 2015 respectively, demonstrated their suitability for processing with Strategic Metallurgy’s proprietary leach technology, which is now licensed to Cobre.”

Email: info@cobremontana.com.au

Website: www.cobremontana.com.au

Orthocell breaks into Asia market via Hong Kong

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THE ROADHOUSE PHARMACY: Orthocell (ASX: OCC) has expanded its presence in Asia with treatment of the first patients in Hong Kong with the company’s tendon repair therapy.

The two patients recently underwent the Ortho-ATI therapy last Friday, performed by Hong Kong orthopaedic surgeon Jason Brockwell from sports orthopaedic group Asia Medical Specialists.

Orthocell said the patients are receiving therapy to treat degenerate hamstring tendons that have been resistant to conservative treatment options such as corticosteroid injections and exercise regimes.

“This is an important step forward in the expansion of the Ortho-ATI treatment into Asia and comes on the back of solid clinical data that has been published and presented over the past year,” Orthocell managing director Paul Anderson said in the company’s announcement to the Australian Securities Exchange.

“There is great interest for a clinically effective treatment that has long term durability and cost effectiveness.”

Ortho-ATI involves taking tendon cells from a patient, expanding their number in an Australian Therapeutic Goods Authority-licensed laboratory and then injecting them into the patient’s damaged tendon to address the underlying pathology and regenerate the damaged tissue.

PharmAust pleased with progression of PPL-1 trial

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THE ROADHOUSE PHARMACY: PharmAust (ASX: PAA) reported that preliminary analysis of white blood cells from four patients receiving PPL-1 at the Royal Adelaide Hospital (RAH) has shown a meaningful reduction of a key target of PPL-1, which is expressed in the cancer.

The primary objective of PharmAust’s ‘First in Man’ trial is to demonstrate safety in a rising dose format.

The company said the Evaluation of white blood cells of patients who have received PPL-1 for three consecutive days has shown the levels of p70S6K are reduced as compared to its levels before treatment started.

PharmAus outlined this preliminary analysis was undertaken in four patients who received daily doses of PPL-1 for at least 3 consecutive days and resulted in a reduction of p70S6K of between 8 per cent and 65 per cent.

“This observation confirms the biological activity of PPL-1 in man by inhibiting a key cancer growth messenger, p70S6K,” Professor David Morris, inventor of the use of PPL-1 in cancer therapy and surgeon at the St George Hospital said in PharmAus’ ASX announcement

“This finding supports our studies on p70S6K in cancer cells and in animal models.”

Professor Michael Brown, principal investigator at the RAH supported Professor Morris by saying, “This is a particularly interesting result as we are still at the lowest dose of PPL-1 in the trial and we are seeing apparent reductions in the levels of the p70S6K pharmacodynamics marker.
 
“We will continue to monitor patients’ blood as recruitment progresses.”

The company explained the p70S6K is considered as a promising marker and indicator of the aggressive behaviour and prognosis of carcinomas.

Overexpression of p70S6K is generally associated with aggressive disease and poor prognosis among cancer patients.

Patients with elevated p70S6K often have poor survival rates and metastases.

Reductions of p70S6K in blood cells may reflect blocks to tumour progression.

PPL-1 is an approved veterinary drug launched in recent years by one of the leading global animal health corporations for the treatment of parasitic diseases in sheep.

PharmAust, through its wholly owned subsidiary, Pitney Pharmaceuticals, owns patents on the use of PPL-1 in cancer and malignant disease.

The drug will be potentially administered to patients suffering from diverse cancers.

Recruitment will include selection of patients suffering from lung, pancreas, oesophageal, gastric, colorectal, ovarian, breast, prostate, liver, sarcoma, lymphoma, and melanoma.

Website: www.pharmaust.com

Genesis Minerals confirms Viking Mineralisation

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THE DRILL SERGEANT: Genesis Minerals (ASX: GMD) has received results of a drill program completed at the company’s Viking gold project in Western Australia in December 2014.

The sixteen-hole RC program targeted the Beaker 2 and Beaker 4 gold zones, which form part of the Beaker gold prospect.

At Beaker 2 eleven RC holes were completed centred on a plus-100 metre wide sub horizontal blanket of oxide mineralisation Genesis had defined by RC drilling in September 2014.

The drilling intersected wide zones of shallow oxide mineralisation at Beaker 2 including:

14VKRC015
20 metres at 1.71 grams per tonne gold from 10 metres;

14VKRC016
5m at 0.57g/t gold from 20m and 10m at 2.12g/t gold from 40m; and

14VKRC017

15m at 0.61g/t gold from 10m.

 

Beaker 2 Cross Section. Source: Company announcement

 

“Drilling intersected deeply weathered zones of saprolite containing zones of quartz veining,” Genesis Minerals said in its ASX announcement.

“An exciting aspect of the gold mineralisation at Beaker 2 is that it wraps around the eastern edge of a large magnetic intrusion which is spatially coincident with the broader Beaker prospect.”

Genesis explained drilling activity over the next 3 months will include extensional, infill and deeper drilling to identify the source of primary mineralisation prior to completing a resource estimate in the June 2015 quarter.

Drilling at Beaker 4 continued to focus on the Beaker 4 West structure, the western most structure currently defined at the Beaker 4 anomaly.

The high-grade gold surface was tested by a further 4 holes with results returned including:

14VKRC027
10m at 0.78g/t gold from 120m; and

14VKRC028
5m at 1.06g/t gold from 75m.

The company said it anticipates 1m splits from these intersections may report high-grade gold mineralisation in zones of quartz veining.

The high-grade gold shoot identified to date on the Beaker 4 West structure remains open.

Genesis said this requires further testing particularly at depth.

In addition to the follow-up drilling at Beaker 4 and Beaker 2, the company has further exploration lined up in the coming months, which will target the strike extent of known mineralisation at the Beaker prospect as well as the assessment of a number of the auger defined gold anomalies throughout the Viking project.

Email: info@genesisminerals.com.au

Website: www.genesisminerals.com.au

Musgrave Minerals granted Mamba Exploration licence

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THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) has been granted the Exploration Licence (E28/2405) within the company’s wholly-owned Mamba project in the Fraser Range.

The Mamba nickel-copper project is located in the same belt as the Nova-Bollinger nickel-copper sulphide discoveries of Sirius Resources (ASX: SIR) in south-eastern Western Australia.

 

Mamba project location. Source: Company announcement

Musgrave has identified 12 priority nickel-copper targets at the Mamba project from a detailed aeromagnetic survey the company carried out over the entire tenement in September 2014.

According to Musgrave the targets show magnetic characteristics, which it has interpreted to be consistent with mafic-ultramafic intrusive bodies, the prospective host for nickel-copper sulphide mineralisation in the district.

“We are excited to have this new tenement granted and look forward to some exciting exploration results as we progress,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“There has been very little previous exploration conducted here in what appears to be a very prospective part of the belt.”

Musgrave explained the targets comprise of two broad target styles it has interpreted from the aeromagnetic data.

The first style includes discrete magnetic highs interpreted to be mafic/ultramafic intrusive bodies prospective for magmatic nickel-copper deposits.

The second style includes de-magnetised zones associated with major structural intersections or fold closures, which the company consider could represent increased areas of fluid flow and potential mineralisation.

Musgrave indicated its follow-up exploration on the 12 priority targets will involve a combination of ground electromagnetic (EM) surveys to define specific bedrock conductors and air core drilling to identify the potential footprint of nickel-copper mineralisation.

The ground EM survey is anticipated to commence, as a priority, in March with drilling to follow.

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au