Triangle Energy Presenting at Good Oil 2019

THE CONFERENCE CALLER: With a healthy cash flow coming from its dominant holding (78.75%) in the offshore Cliff Head project in Western Australia, Triangle Energy (ASX: TEG) has been able to chase further growth opportunities in the Perth Basin.

The company has its eye on the prospective Xanadu oil field and is now awaiting the results of a recently conducted 40 square kilometre 3D seismic program.

Located offshore about 270km south west from the WA coastal town of Dongara – and 14km south of the Cliff Head oil field – Xanadu is a joint venture between Triangle (45%) and Norwest Energy.

Triangle is also completing the necessary approvals for the onshore Mt Horner l7 production licence, in which it holds a 50 per cent interest with farm out agreement partner Key Petroleum.

The PL overlies the Allanooka Terrace in the North Perth Basin (and is adjacent to the prolific Dandaragan Trough).

So far, multiple “attic” locations for infill development wells have been identified.

The JV partners now anticipate conducting a 50sqkm 3D seismic survey and drilling at least two in-fill development wells as soon as possible.

Additionally, the WA-based Triangle is looking at another growth opportunity – this time in Queensland’s Bowen Basin via its 35.47 per cent interest in State Gas, 80 per cent owner of the prospective Reid Dome gas project.

In 2018, two wells – Primero West 1 and Nyanda-4 – were successfully drilled, with the 1200 metre deep Nyanda encountering 40.4m of net coal seams as well as 25m of separate carbonaceous shales and thinner coal seams.

During the June quarter Cliff Head generated revenues of $6.89 million for project operator Triangle – a $760,000 increase over the March period due to higher production.



Talon Petroleum Presenting at Good Oil 2019

THE CONFERENCE CALLER: Being in the right address pretty much sums up Talon Petroleum’s (ASX: TDP) corporate strategy as it consolidates its presence in the UK North Sea.

During the June quarter the Perth-based company completed the acquisition of EnCounter Oil, giving it unfettered access to the highly prospective Skymoos and Rocket prospects.

Then, in late July, Talon announced two new developments regarding further holdings in the area.

First, it was granted (in a joint bid with ONE-Dyas E&P) a licence over Block 14/30b, wherein lies the Thelma, Louise and Buffalo prospects.

Best estimates for these targets are currently 29 million barrels of oil, 17mmbbl and 160 billion cubic feet of gas respectively.

Second, site survey activities over the proposed location of the Curlew-A appraisal well – in which Talon has a 10 per cent interest – was started on Block 29/7b by Corallian Energy.

Currently, Curlew-A’s gross 2C contingent resource for recoverable oil is 36.2mmbbl. According to Talon managing director Matt Worner, this acquisition was the company’s first piece of operational work since it established its UK North Sea strategy in 2018.

Moreover, it is deemed significant given it contains an estimated discovered resource of 39mmbbl and is close to nearby infrastructure.

Despite these developments, it’s the EnCounter acquisition which has arguably generated the most excitement amongst investors during 2019.

As it stands, Skymoos – which is a direct analogue to the Upper Jurassic Buzzard Field (the UK North Sea’s largest producing oil field) and is on trend with several developed oil and gas discoveries – has a best estimate prospective resources of 107mmbbl.

Meanwhile Rocket, with its potential resource of 27mmbbl, is a direct analogue to amplitude-supported oil fields to the north east.



Norwest Energy Presenting at Good Oil 2019

THE CONFERENCE CALLER: Like other Perth Basin explorers, Norwest Energy (ASX: NEW) is reviewing the oil and gas prospectivity of its Western Australian onshore portfolio in light of the Waitsia gas discovery.

In particular, the company is approaching its 10.1 square kilometre Springy Creek oil prospect – which sits in the northern part of its EP368 Joint Venture (with Energy Resources) some 30km north east of Dongara – with renewed enthusiasm, and is now confident its geological chance of success is 25 per cent.

During July Norwest told the market that Waitsia, located 5km to the west of EP368, had “opened up an exciting new petroleum play within the basin by encountering a very significant hydrocarbon accumulation within the Lower Permian Kingia and High Cliff Sandstone formations”.

“The prospect offers significant potential for sizeable oil accumulations within both the Kingia and the High Cliff Sandstone formations which, based on well intersections in the wider region, are prognosed to incorporate thick, high-quality reservoir sand units at the prospect location at target depths of 2,470 metres and 2,570m respectively,” it said.

The greater Springy Creek structure, encompassing the southern and northern culminations, is an elongate north-south trending three-way dip closure with fault closure to the south.

Reservoirs within this structural feature could be sourced by oil migrating from the proven Kockatea Shale oil kitchen to the south. Furthermore, the prospect is situated within a structural setting comparable to that of the Mt. Horner oil field 15km to the west.

In terms of its Perth Basin offshore activities, Norwest – along with Triangle Energy (Global) – is conducting a 3D seismic survey of its Xanadu oil discovery 300km north of Perth.

Results for this work should available by October.



Pioneer Resources Advances Dome North Spodumene Drilling

THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) has commenced drilling at the Dome North spodumene target, located within the company’s 100 per cent-owned Pioneer Dome project in the Eastern Goldfields of Western Australia.

Pioneer Resources said the drilling had intersected pegmatites in all three holes it has drilled to dat at Dome North.

The drilling is targeting priority areas where outcropping spodumene has been mapped.

The first hole (PDRC263) hit an intersection of pegmatite from 175 metres downhole to end of hole at 311m.

The intersection was down dip of outcrop from where the company recently reported 17 rock chip samples producing spodumene assays between 1.65 per cent and 3.7 per cent lithium oxide (Li2O).

Two further holes (PDRC264, PDRC265) also returned healthy pegmatite intersections.

The company said the targeted drilling in and around the spodumene outcrops would continue with assay results anticipated to be available around October.

“The company’s emphasis on first principle exploration practices ha delivered an excellent priority target at the Dome North Area,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“We are excited with what has been observed in the first few drill holes and look forward to delivering results to the market as they become available.”





Predictive Discovery Drills Impressive Boundiali Results

THE DRILL SERGEANT: Predictive Discovery (ASX: PDI) RELEASED results from a recently completed step-out RC drilling program at the company’s Boundiali project, located in Cote D’Ivoire.

Predictive Discovery explained these new results come from part of the Resolute Mining (ASX: RSG) Joint Venture exploration program in Cote D’Ivoire that is currently focused on the Boundiali and Ferkessedougou North projects, each of which contain recent gold discoveries and are considered to have excellent potential to find further gold mineralisation.

The JV completed a 16-hole step-out program in June 2019 to follow-up a 31-hole infill RC drilling program that was carried out in March-April.

This new program extended infill drill coverage to approximately 920m of mineralised strike on the Nyangboue gold prospect with the RC holes designed to explore for mineralisation both up-dip and down-dip of earlier intercepts and along strike of the earlier infill drill lines.

Better intercepts (0.25g/t gold cut-off grade) included:

3 metres at 14.97g/t gold from 9m;

13m at 1.92g/t gold from 68m;

16m at 1.64g/t gold from 7m;

10m at 2.32g/t gold from 146m;

4m at 3.56g/t gold from 109m;

5m at 2.31g/t gold from 29m;

6m at 2.48g/t gold from 71m;

6m at 2.68g/t gold from 116m; and

7m at 1.92g/t gold from 112m.

“These new results from Nyangboue add to the picture obtained in the April-May infill drilling program of a series of north-striking, sub-parallel, gold-mineralised zones dipping shallowly to the west,” Predictive Discovery managing director Paul Roberts said in the company’s announcement to the Australian Securities Exchange.

“Given that the mineralisation is open to the north, south and down dip, there is clearly more drilling to be done at Nyangboue to determine the full size of the gold mineralised system.

“When combined with the new gold mineralisation discovered in the Boundiali North permit, the potential scale of the mineralised systems at Boundiali continue to grow.

“Release of these results is a great start to the joint venture relationship with new partner Resolute Mining.

“We look forward to working with Resolute to uncover more gold in the Boundiali project and across our Joint Venture projects in Cote D’Ivoire.”



Venture Minerals Signals Go-ahead at Riley Iron Ore Mine

THE BOURSE WHISPERER: Venture Minerals has committed to the recommencement of mining activities at the company’s Riley iron ore mine in Tasmania.

Venture Minerals made the announcement following completion of an updated Riley Iron Ore Mining Study with the associated Pre-Feasibility Study (PFS) delivering strong returns from a low capex two-year project, that the company believes to be well positioned to capture the current higher iron ore price environment.

In addition to completing the study the company, having previously signed a Binding Terms Sheet for the Riley Iron Ore Mine off-take with Prosperity Steel, has now signed a full off-take agreement for the Riley product for 100 per cent of the first two years of iron ore production.

First shipment of ore from the Riley Mine is currently planned for the fourth quarter of 2019, however the company indicated it was continuing to work on additional strategies to further reduce operating costs on the project before the first ore shipment.

These cost optimisation programs will focus on enhancing ore transport solutions.

“This is an exciting phase for the company as it moves from explorer to producer,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.

“The Riley Iron Ore Mining Study demonstrates the delivery of an exceptional Internal Rate of Return in excess of 300 per cent is possible by leveraging the relatively small capex required to commence production.

“Venture has brought together an experienced team with a blend of local knowledge that has built, managed and operated iron ore and other similar sized projects, thereby de-risking the execution phase of the Riley project.

“The Riley Iron Ore Mine will create 80 to 100 jobs and will be a boost for the economy of the West Coast of Tasmania.

“We look forward to commencing production shortly.”







Cazaly Resources to Sell Parker Range Project to Mineral Resources

THE BOURSE WHISPERER: Cazaly Resources (ASX: CAZ) received a binding Heads of Agreement (HoA) proposal from Mineral Resources (ASX: MIN to purchase the company’s Parker Range iron ore project.

Cazazly had already agreed commercial terms for the sale of its 100 per cent-owned subsidiary, Cazaly Iron Pty Ltd, which holds the tenements that comprise the project, to Gold Valley Iron Pty Ltd.

The agreement with Gold Valley allowed for an initial three-month due diligence exclusivity period, however Cazaly reserved the right to terminate the exclusivity period should it receive another proposal or offer from a third party which is more favourable to Cazaly and its shareholders.

The Mineral Resources deal fit that description.

The unsolicited HoA proposal from Mineral Resources involves a payment of $2 million cash upon completion of the sale; and a royalty of 50 cents for every dry metric tonne of iron ore extracted and removed from the project area the first 10 million dry metric tonnes.

“Cazaly has received a binding Heads of Agreement (HoA) proposal from Mineral Resources which the Board considers to be more favourable to Cazaly and its shareholders and therefore has terminated the exclusivity period with Gold Valley,” Cazaly Resources said in its ASX announcement.

“Following such termination Cazaly has agreed to commercial terms with Mineral Resources for the sale of the assets comprising the project.

“The agreement with Gold Valley remains in place whilst Cazaly evaluates the proposal and its next steps for the sale of the project.

“In the event that Cazaly terminates the agreement with Gold Valley a $250,000 break fee is payable by Cazaly.”







Spectrum Metals Drills High-Grade Extensions at Penny North

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) continued its run of high-grade results from extensional RC drilling within the high-grade shoot at the company’s Penny North project.

Spectrum Metals received results from four new holes that returned results of:

4 metres at 63.1 grams per tonne gold from 289m, including 3m at 83.7g/t from 289m;

2m at 50.5g/t gold from 338m;

2m at 48.7g/t gold from 264m, including 1m at 95.5g/t gold from 264m;

2m at 27.1g/t gold from 2315m, including 1m at 44.6g/t gold from 315m.

The company also received results from parts of two holes from Penny South, including:

2m at 17.1g/t gold from 182m;

5m at 2.5g/t gold from 234m, including 1m at 5.7g/t from 237m.

The company claimed the result in SPWRC078 of 2m at 17.1g/t gold at Penny South indicates that the main lode continues to the south.

Further assay results at Penny South are pending and additional holes have been planned.

“We are very pleased to see continuing high-grade down plunge gold mineralisation at Penny North,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“In addition, early drilling at Penny South suggests this location may represent a new target in the short term.

“This is separate to hole SPWRC006 (5m at 28.9g/t from 203), that appears to represent a separate hanging wall position to the main lode.”





Musgrave Minerals Intersects Further Cue Gold

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported encouraging assay results from drilling at the Lena deposit and initial drilling at the Mainland prospect, both part of the company’s Cue gold project in Western Australia’s Murchison district.

Musgrave has received assays from the first reverse circulation (RC) holes drilled in the current program at Lena and from a maiden drilling program at Mainland, a recently acquired tenement holding that has produced abundant alluvial gold but where only minimal basement exploration has been conducted.

The company said the high-grade gold intercepts returned from RC drilling at Lena highlight potential at depth including:

1 metre at 25.7 grams per tonne gold from 110m down hole; and

24m at 3.2g/t gold from 140m down hole, including 4m at 13.1g/t gold from 151m including, 1m at 42.8g/t gold from 153m.

High-grade gold was also intersected at Mainland including:

3m at 5.4g/t gold from 74m down hole.

“These are exciting results at Lena and Mainland. At Mainland, the initial program has returned strong results and further drilling is planned,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“The upside at Lena is significant with drilling confirming high-grade gold mineralisation below the existing resource that remains open.

“Our reinterpretation of the geology and shoot control has highlighted the excellent potential to extend the current Lena resource and we look forward to further strong results as drilling continues.”





Horizon Minerals Returns Encouraging Drill Hits at Binduli

THE DRILL SERGEANT: Horizon Minerals (ASX: HRZ) announced reverse circulation (RC) drilling results from the company’s 100 per cent-owned Binduli gold project area located west of Kalgoorlie-Boulder in the Western Australian goldfields.

The results come from a follow up 56-hole RC drilling program completed at the Crake and Coote prospects, part of the Binduli gold project area.

The current Mineral Resource for Crake stands at 1.12 million tonnes at 1.59 grams per tonne gold for 57,700 ounces at a 1g/t lower grade cut-off.

Latest results received from Crake include:

3 metres at 7.41 grams per tonne gold from 81m and 10m at 1.78g/t gold from 102m;

5m at 4.91g/t gold from 36m and 9m at 1.58g/t gold from 65m;

3m at 3.18g/t gold from 14m and 4m at 2.47g/t gold from 55m;

3m at 1.28g/t gold from 10m, 1m at 2.91g/t gold from 17m, 1m at 2.13g/t gold from 25m, 1m at 5.19g/t gold from 32m and 14m at 1.75g/t gold from 44m;

12m at 1.65g/t gold from 32m;

10m at 1.46g/t gold from 77m;

1m at 3g/t gold from 57m and 7m at 2.78g/t gold from 97m.

Horizon Minerals said the results continue to demonstrate both width and grade continuity across a 450m strike length with the mineralisation open along strike to the north, east and to the west at depth.

Mine optimisation and design work has commenced as part of a consolidated Feasibility Study due for completion in the June Quarter 2020.

Results received from Coote, 700m to the west include:

1m at 8.18g/t gold from 40m and 1m at 1g/t gold from 64m;

1m at 5.1g/t gold from 53m;

1m at 1.76g/t gold from 17m, 5m at 1.4g/t gold from 24m and 4m at 2.63g/t gold from 51m;

1m at 2.7g/t gold from 9m, 4m at 1.22g/t gold from 36m and 1m at 1.03g/t gold from 59m and 1m at 1.87g/t gold from 65m and 1m at 1.06g/t gold from 91m; and

1m at 1.33g/t gold from 33m, 1m at 1.83g/t gold from 43m, 1m at 1.61g/t gold from 88m, 1m at 2.1g/t gold from 96m and 4m at 1.15g/t gold from 114m.

“The results continue to demonstrate that Binduli is a genuine contributor to our mine development and production pipeline as part of the consolidated Feasibility Study currently underway,” Horizon Minerals managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“The drilling has improved geological confidence and demonstrated excellent width and grade continuity over a 450 metres strike length and remains open in all directions.

“Further RC and diamond drilling is planned across the Binduli project area, located only 25 kilometres from our baseload Boorara gold project.”