St George Mining Identifies Paterson Province Exploration Targets

THE DRILL SERGEANT: St George Mining (ASX: SGQ) has carried out an airborne magnetic survey over the company’s Paterson project, located within the Paterson Province of Western Australia.

St George Mining completed the survey in March with the aim of evaluating the structure and stratigraphic setting and identifying focus areas for further exploration.

The company has interpreted the high-resolution magnetic data from the survey to identify prominent magnetic features, which it has deemed to represent key stratigraphic units and granitic intrusions similar to what hosts other precious metals and base metals discoveries in the region.

“The results from the aeromagnetic survey have exceeded our expectations with multiple areas of interest identified across the 35 kilometres strike of prospective stratigraphy on our exploration ground,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We have begun planning for the 2020 drill program and applied for the Western Australian Government’s Exploration Incentive Scheme (EIS), which provides co-funding for exploration drilling up to a prescribed capped amount.

“Our Paterson project is shaping up as an outstanding opportunity to make a greenfields discovery.

“We are excited to be progressing exploration at the Paterson while we continue our principal exploration and development activities at our flagship Mt Alexander nickel-copper sulphide project.”





Blackstone Minerals Welcomes $6.8M Sth Korean Investment

THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) bounced out of a self-imposed trading halt to announce $6.8 million investment in the company by South Korea-based battery and environment material company, EcoProa.

Blackstone Minerals has signed a binding share purchase agreement with EcoPro Co. Limited, who’s subsidiary company, EcoPro BM, is the world’s second largest and Korea’s largest nickel-rich cathode materials manufacturer.

The placement of 40 million fully paid ordinary shares at an issue price of $0.17 per share represents a healthy 62 per cent premium to Blackstone Minerals’ last traded price before it went into self-exile.

Blackstone Minerals said the binding agreement outlines an alliance structure under which it will work in partnership with EcoPro – by way of an additional investment via a Joint Venture Agreement – to develop a downstream processing facility in association with Blackstone Minerals’ Ta Khoa nickel-PGE project in northern Vietnam.

“We are pleased to announce this investment of $6.8 million at a premium which strengthens our alliance with EcoPro,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“Our Ta Khoa nickel-PGE project has the potential to deliver the critical raw materials required for EcoPro’s cathode manufacturing to meet the demand from the imminent electric vehicle (EV) revolution.

“We look forward to working towards the next stage of our partnership to develop the downstream processing facility in northern Vietnam.”

Blackstone Minerals has signalled its intent to deliver a maiden resource in Q3, focused initially on the disseminated sulphide (DSS) at Ban Phuc as it continues to investigate the potential to restart the existing Ban Phuc concentrator through focused exploration on both massive sulphide veins (MSV) and DSS deposits.

Blackstone has already commenced a scoping study on the downstream processing facility at Ta Khoa, which is anticipated to also to be announced in Q3.

This is expected to provide details for JV partners to formalise the next stage of investment.

Metallurgical testing is also underway on the Ban Phuc DSS deposit with an aim to develop a flow sheet for a product suitable for the lithium-ion battery industry.

Blackstone is also investigating the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium-ion battery industry.

The company’s purchase of the Ta Khoa nickel-PGE project came with an existing modern nickel mine that had been placed under care and maintenance since 2016 due to falling nickel prices.

Existing infrastructure includes an internationally designed 450,000 tonnes per annum processing plant.

Previous project owners focused mining and exploration efforts primarily on the MSV at Ban Phuc, where Blackstone plans to explore both MSV and DSS targets throughout the project, initially within a five kilometres radius of the existing processing facility.

EcoPro is a South Korea-based company engaged in the battery and environment material sector, principally in the manufacture and sale of secondary battery materials.

The company manufactures cathode active materials and precursors used for secondary batteries and provides environmental materials including sorbents and catalysts, chemical air filters, and greenhouse gas reduction devices, among others.





Red 5 Completes Great Western Acquisition

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), through its wholly-owned subsidiary, Darlot Mining Company Pty Ltd, has exercised an Option Agreement to acquire a 100 per cent-interest in Mining Lease M37/54.

The Mining Lease includes the Great Western gold deposit.

Red 5 has executed a Sale and Purchase Agreement (SPA) with the tenement holder, Terrain Minerals (ASX: TMX).

The company believes the acquisition supports its stated multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions in addition to aggressive exploration being undertaken as part of its Darlot Mining Hub Strategy.

The Great Western gold deposit is located 80 kilometres trucking distance south of Red 5’s Darlot processing plant, which is currently operating at one million tonnes per annum.

Red 5 considers the acquisition of the Great Western gold deposit and surrounding Mining Lease represented a high-quality strategic addition to its Mineral Resource base within trucking distance of the Darlot mill.

Terrain Minerals had previously completed a JORC 2012-compliant Mineral Resource estimate for the Great Western deposit totalling 709,000 tonnes at an average grade of 2.7 grasm per tonne gold for 62,000 ounces of contained gold.

“Having completed the due diligence drilling, we believe the Great Western deposit represents a highly prospective addition to our Darlot Mining Hub Strategy, with an existing 62,000 ounce Mineral Resource and exploration upside, particularly at depth,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“With an acquisition cost of $40 per Resource ounce, it boosts our Mineral Resource base within economic trucking distance of the Darlot mill.

“We will continue to seek further such opportunities – both through our exploration programs as well as through strategic acquisitions – with the aim of establishing five to ten years of Ore Reserves either at or within trucking distance of the Darlot mill as part of the company’s Darlot Mining Hub Strategy.”





Peel Mining Continues Wirlong Drill Success

THE DRILL SERGEANT: Peel Mining (ASX: PEX) recently completed a diamond drill program at the Wirlong prospect, south of Cobar in western New South Wales.

Wirlong is part of the company’s Cobar Superbasin project, A Joint Venture with JOGMEC (Japan Oil, Gas and Metals National Corporation).

Peel Mining’s latest drilling at Wirlong comprised three diamond drillholes that were designed to target the Wirlong Central zone to test a newly interpreted strike orientation of high-grade copper mineralisation returned from historic drillholes.

“Importantly, the newly returned high-grade copper intercepts support the revised structural model, offering excellent potential to define high-quality resources and add new mineralisation in the future,” Peel Mining said in its ASX announcement.

Results from the drilling include:

4.26 metres at 2.22 per cent copper, 7 grams per tonne silver from 380m, including 0.26m at 15.85 per cent copper, 58g/t silver from 384m; and
0.74m at 14.3 per cent copper, 66g/t silver from 396.2m.

1.15m at 7.71 per cent copper, 30g/t silver from 54.45m, including 0.25m at 30 per cent copper, 97g/t silver from 54.45m;
30m at 1.64 per cent copper, 8g/t silver from 305m, including 14m at 2.63 per cent copper, 12g/t silver from 320m; and
9.6m at 1.32 per cent copper, 2g/t silver from 436.4m.

5.9m at 3.19 per cent copper, 13g/t silver from 347.1m, including 0.65m at 18.65 per cent copper and 48g/t silver from 351.87m.

Peel Mining completed down-hole EM on drillholes WLDD003 and WLDD004, using a newly designed transmitter loop designed to couple with mineralisation based upon its revised structural model.

“A number of high-grade copper intercepts in the area intersect the modelled plate or are in close proximity to its position, further supporting the new structural models’ validity,” the company explained.

“The strike of mineralisation remains open to the southeast and northwest, and downdip.”

The company forecast future activities for Wirlong to include further infill and extensional drilling and geophysical surveying to assist with exploration drill targeting along with the completion of a maiden mineral resource estimate.






Twenty-Seven Co Identifies Its Name in New Conductors

THE DRILL SERGEANT: TSC Limited (ASX: TSC) has identified 27 new conductors at the company’s Rover project in Western Australia.

TSC made the identifications via a recently-completed AEM survey over southern half of the Rover project.

The company explained that the vast majority of the conductors are situated along a 20-kilometres-long prospective gold strike that is part of the Maynard Hills greenstone belt.

TSC’s consultant geophysicist analysed the final data from the AEM survey, facilitated by New Resolution Geophysics’ advanced Xcite system.

From this an additional 14 AEM conductors have been identified, taking the total to a substantial 27 (up from 13 in early March).

Twenty-five conductors are located along a 15km stretch of the Maynard Hills greenstone belt, one conductor is located on the Cook Well greenstone belt and one is located in granitic rocks between the greenstone belts.

The bulk of the conductors have been grouped into five areas sequentially from north to south, including:

Two conductors west of Creasy 1 gold prospect;
Four conductors at Creasy 2 VMS prospect;
Five conductors near Creasy 3 prospect;
Five conductors covering a 600m strike at the newly discovered Red Bush prospect; and
Nine conductors southeast of Red Bush, with six coincident to a gold target identified in a geophysics study last year.

“Without doubt, the final AEM survey results have significantly surpassed expectations, with a substantial 27 conductors to follow up at the Rover project,” TSC CEO Ian Warlandsaid in the company’s announcement to the Australian Securities Exchange.

“To maintain exploration momentum, TSC has contracted a GEM crew to survey the most promising AEM conductors so that high-quality test-drill targets can be finalised for future drilling campaigns.

“With the second RC drilling program complete, TSC is now eagerly awaiting assays and GEM results which will determine next steps.”





Rox Resources Encounters High-Grade Grace Intersections

THE DRILL SERGEANT: Rox Resources (ASX: RXL), in conjunction with its joint venture partner Venus Metals Corporation (ASX: VMC) reported results from its early 2020 drilling program undertaken at the Youanmi project in Western Australia.

Rox Resources reported that recent drilling at Youanmi has defined a very high-grade zone of mineralisation (greater than 30 gram-metres) extending from surface, open to the north that lies within a broader wide zone of mineralisation.

Recent assays from drilling undertaken at the Grace prospect include:

7 metres at 54.6 grams per tonne gold from 8m;

1m at 29.7g/t gold from 23m;

6m at 5.7g/t gold from 24m;

4m at 4.5g/t gold from 9m, and 3m at 5.32g/t gold from 53m.

“The Grace prospect is emerging as an exciting high-grade deposit with one of the better recent intersections returned from hole RXRC151 being a spectacular 7 metres at 54.6 grams per tonne gold from 8 metres,” Rox Resources managing director Alex Passmore said in the company’s announcement to the Australian Securities Exchange.

“This newly discovered mineralisation has all the hallmarks needed to bring it into early production-it is close to surface, lies near to existing pits and sits within a granted mining lease which already has substantial infrastructure.”





Neometals Completes Lithium Battery Recycling Pilot Testing

THE BOURSE WHISPERER: Neometals (ASX: NMT) declared the completion of pilot plant test‐work on the company’s proprietary lithium‐ion battery (LIB) recycling technology a success.

Neometals said the pilot testing validated earlier bench scale assumptions with high recoveries of the targeted suite of cathode active elements and refined them into high purity chemicals for re‐use in the battery supply chain.

Neometals has developed a sustainable process for recovering nickel, cobalt and other valuable materials from spent and scrap LIBs that might otherwise be disposed of in land fill or processed in high emission pyrometallurgical recovery circuits.

The technology physically separates and recovers battery steel casings, aluminium and copper foil, plastic separators, and graphite from high‐value battery cathode materials including nickel, cobalt, manganese and lithium.

The company considers the successful completion of the pilot work as an important commercial milestone for the recycling technology.

Objectives were met and surpassed, no fatal technical flaws arose, and the company now has the data to commence feasibility‐level studies and proposed demonstration trials in Europe.

With the Pilot greatly reducing the technical risk of its proprietary process, Neometals said it can proceed confidently towards the proposed commercialisation JV with SMS Group and advance feed supply and product offtake activities.

“We are delighted to have completed the lithium battery recycling Pilot with such encouraging results,” Neometals managing director Chris Reed said in the company’s announcement to the Australian Securities Exchange.

“We remain convinced that electrification of transport is an unstoppable trend, which by default will generate ever increasing volumes of production scrap and end‐of‐life batteries to responsibly manage.

“We have now proven that we have a solution to meet the lithium‐ion battery supply chains need for a safe, environmentally friendly recycling process which can reduce reliance on imported mineral feedstocks and satisfy increasing regulatory and stakeholder demands for sustainable and ethical raw material supply chains.

“We are looking forward with our partner to commercialise this asset. SMS’s skill set and global presence will further enhance value and lower risk as we prepare to showcase our offering to the market in a Commercial Demonstration Plant in Europe, the region with the fastest growing battery cell production capacity.”

Neometals indicated that SMS Group will complete its review of the final metallurgical test work report and Metsim mass‐energy balance.

The review constitutes the final technical diligence requirements to enable an SMS decision to enter a project commercialisation JV by the end of April 2020.

Both parties are negotiating the JV legal agreements in parallel with Commercial Demonstration Plant design and procurement work packages.

The Pilot learnings have highlighted scope to further improve outcomes in optimisation test‐work that has commenced and will precede the Demonstration Trial.





Kin Mining Returns Further High-Grade Cardinia Results

THE DRILL SERGEANT: Kin Mining (ASX: KIN) received final results from drilling undertaken at the company’s Cardinia gold project (CGP) near Leonora in Western Australia.

Kin Mining said the results came from one-metre split samples collected at Lewis East and Lewis West and were generated from an aircore (AC) drilling program completed in December 2019.

The company explained the 1m samples were collected from 4m composite samples greater than 0.1 grams per tonne gold, to allow for better definition of the mineralised zones.

Highlights included near-surface, high-grade zones of gold mineralisation confirmed at Lewis East of:

11 metres at 3.85 grams per tonne gold from 24m, including 8m at 5g/t gold from 24m;

6m at 3.63g/t gold from 9m, including 2m at 9.27g/t gold from 10m;

19m at 1.04g/t gold from 14m, including 5m at 2.28g/t gold from 26m.

The drilling also confirmed low grade zones along controlling structures Lewis West, including:

1m at 3.24g/t gold from 10m.

Kin mining interpreted the Lewis East results have added to previously released results and continue to confirm the presence of several lodes of high-grade gold mineralisation, within wider haloes of lower grade.

“The Lewis East mineralisation based on the four-metre composite assays was interpreted to be broad zones of medium grade material with occasional higher grade zones generally in a north east dipping orientation,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The one-metre split sampling has confirmed that the broad medium grade intersections generally contain a narrower, higher grade core of mineralisation displaying vein style pyrite mineralisation surrounded by lower grade disseminated sulphides and alteration.

“The one-metre sampling has helped the geological teams define the controls on the mineralisation more clearly.

“At Lewis East, the higher grade, north east dipping mineralised zones appear to be similar to the Lewis mineralisation located between 500 metres to 1000 metres to the north west within the Bruno-Lewis mineralised system.

“The Lewis East mineralisation occurs directly along strike of the two North east dipping Lewis lodes, which have undergone extensive historical RC and diamond drilling.

“Further RC drilling at Lewis East is planned to test the depth and strike extent of the Lewis East lodes and the potential continuity with the Lewis mineralisation.

“These veins appear to be initiated from north east trending faults associated with the rapidly expanding Lewis Fault system.

“The Lewis Fault system is intimately associated with mineralisation at the Lewis, Lewis East, Nevertire, Black Chief and the Comedy King deposits.

“These deposits are spread over an area covering approximately four-kilometres by two-kilometres and represent a cluster of deposits displaying both high-grade vein and lode style mineralisation and lower grade alteration halo mineralisation, all with a common geological control.”





Emmerson Resources Awarded NSW Government Drilling Grants

THE DRILL SERGEANT: Emmerson Resources (ASX: ERM) has been awarded drilling co-funding grants from the New South Wales government for the company’s Kiola and Kadungle projects.

The Kiola project is situated within the Molong Belt, providing favourable nearology to Alkane Resources’ recent Boda copper-gold discovery and Newcrest’s world class Cadia-Ridgeway copper-gold deposit.

The Kadungle project sits within the Narromine Belt where previous drilling has intersected high-grade gold and copper.

The New Frontiers Cooperative Drilling grants program by the NSW government encourages private exploration drilling in the search of high-value mineral deposits in prospective underexplored areas of NSW and where companies are using the latest technology to identify new deposits.

The $2 million program is a co-funded initiative where the NSW government provides up to 50 per cent of direct drilling costs for individual projects, capped at $200,000.

“Emmerson is well placed to emerge in a very strong position once this COVID-19 crisis allows field activities to recommence,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“We have exceptional ground positions in one of the Australia’s highest-grade gold provinces at Tennant Creek plus a suite of early mover assets in some of the hottest exploration districts in New South Wales.

“The announcement by the New South Wales government that Emmerson has secured two Cooperative Drilling Grants has not only reduced our exploration costs across both our Kiola and Kadungle projects but is also testament to the potential of these projects to generate new copper-gold discoveries.

“Additionally, we have prudently implemented cost saving measures across our business to help weather the challenging economic conditions we currently face.”





De Grey Mining Increases Mallina Gold Resources

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) announced a substantial increase to the Mineral Resources at the company’s Mallina project in Western Ausralia.

De Grey Mining reported a 29 per cent increase in overall Mineral Resources at the Mallina project – for drilling undertaken up to 31 December 2019 – compared to the July 2019 Total Gold Mineral Resource (JORC 2012).

The total Mineral Resource has come in at 37.44 million tonnes at 1.8 grams per tonne golf for 2.2 million ounces of gold.

This breaks down as Measured and Indicated (49%) 18.95 million tonnes at 1.7g/t gold for 1.1 million ounces of gold; and Inferred (51%) 18.49 million tonnes at 1.9g/t gold for 1.1 million ounces of gold.

The resource upgrade includes updated resource models for Withnell open pit, Withnell Underground, Toweranna open pit depth extensions and Toweranna underground, together with shallow extensions to the Mallina resource.

Of note is that the updated Resource does not include any drilling results from the company’s recent Hemi discovery.

“We are very pleased to have achieved 2.2 million ounces based on all drilling to the end of 2019,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“Importantly, we have maintained the high average grade of 1.8 gram per tonne, all deposits commence from surface making them readily amenable to open pit mining and all remain open.

“Our new Hemi discovery is shaping up as a game changer and is not included in this resource statement.

“The thickness of mineralisation at Hemi is an order of magnitude larger than our existing deposits which provides an exciting opportunity to significantly grow our resources.

“As we have repeatedly stated, our next corporate goal is to achieve plus-three million ounces and we strongly believe this will be eclipsed by the end 2020.

“Substantial increases in the project economics are anticipated with the inclusion of the Hemi deposit.

“Accordingly, the economic studies will be updated once the scale and resources are defined at Hemi.

“Ongoing feasibility activities including detailed metallurgical test work and long lead items such as environmental, infrastructure and water studies will continue during the Hemi resource drilling.

“At Hemi, drilling is continuing with two diamond and one RC rig into the foreseeable future.

“The next Hemi results are scheduled for early next week.”