Musgrave Minerals Adds Numbers to List of Cue Gold Hits

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported further gold assay results from recent regional aircore/reverse circulation (RC) drilling undertaken at the company’s Cue project in Western Australia’s Murchison district.

This time Musgrave Minerals announced results from infill drilling carried out at the Numbers prospect, approximately four kilometres south of Break of Day/Lena that intersected further high-grade gold within sedimentary iron formation below thin hardpan cover.

Shallow gold mineralisation encountered at the Numbers prospect include:

11 metres at 2.45 grams per tonne gold from 28m down hole, including 6m at 4.05g/t gold from 29m;

12m at 2.09g/t gold from 54m down hole, including 1m at 7.65g/t gold from 54m; and

5m at 3.03g/t gold from 61m and 11m at 1.68g/t gold from 93m down hole, including 4m at 2.87g/t gold from 94m.

The Numbers prospect currently hosts a near surface gold resource (JORC 2004 Inferred Resource) of 278,000 tonnes at 2.5g/t gold for 22,000 ounces of gold and has been defined over a 260m strike extent.

Musgrave Minerals said the latest infill drilling will help to enhance its geological confidence in the resource and provide an opportunity for additional follow-up drilling at depth and along strike.

“This is another good result and adds to our understanding and confidence in the Cue project, which continues to deliver on our exploration objective of making new discoveries and growing the resource base,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Further drilling results from the new Lake Austin North, A Zone target are expected in late July.”





Corazon Mining Increases Mt Gilmore Cobalt Potential

THE DRILL SERGEANT: Corazon Mining (ASX: CZN) is focused on identifying new cobalt-copper-gold sulphide targets within the company’s Mt Gilmore project in New South Wales, including the identification of extensions to the Cobalt Ridge deposit.

Corazon Mining claimed the recent discovery of four substantial cobalt-copper-gold anomalies, resulting in a total of six areas requiring further testing, within a contiguous 10 kilometre strike around the Cobalt Ridge deposit.

This is in addition to three high-tenor Lantana Downs anomalies the company announced in April, located a further 2km to the north.

The company considers the new anomalies to be of some significance, placing them on a par in tenor to the soil geochemical anomaly for the outcropping Cobalt Ridge deposit.

They were defined during an ongoing project-wide 200 metre by 200 metre soil sampling program.

Corazon now intends bringing the spacing in to conduct infill soil sampling to a 50 metre by 50 metre patterns to further define and refine potential drill targets.

The company’s next phase of drilling at Mt Gilmore is expected to commence in early July and will initially focus on infill and extension testing at Cobalt Ridge, and also provide a first-pass test of priority features generated by the recently completed 3D Induced Polarisation (IP) geophysical survey.

“The company plans to complete approximately 14 holes for about 2000 metres of reverse circulation (RC) and core drilling at Cobalt Ridge,” Corazon Mining said in its ASX announcement.

“The drilling contractor has been engaged and is expected to mobilise to site during the first week of July.

“The company will advise the market on the commencement of drilling and provide additional exploration results as they become available.

“The proposed drilling will also progressively test new target areas within the wider Mt Gilmore project area generated by the company’s ongoing regional soil sampling program.”





Azure Minerals Reports Initial Oposura Resource

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) reported an initial Mineral Resource estimate for the company’s 100 per cent-owned Oposura zinc-lead-silver project in Sonora, Mexico.

Azure Minerals declared the Mineral Resource to be based upon 173 diamond drill holes (comprising 16 historical holes drilled by Grupo Minero Puma SA de CV and 157 holes drilled by Azure) and has been estimated and classified as Indicated and Inferred Mineral Resources in accordance with the guidelines of the JORC Code 2012.

The initial Mineral Resource estimate has come in at 2.9 million tonnes at 5 per cent zinc and 2.8 per cent lead for contained metal of 146,000 tonnes of zinc, 82,000 tonnes of lead and 1.6 million ounces of silver.

The company highlighted that 75 per cent of the contained metal is classified in the Indicated Mineral Resource category, saying this provides confidence in the continuity of grade and widths of the mineralisation.

“This initial Oposura Mineral Resource is a very positive outcome for the company’s development and production strategy,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“Containing over 220,000 tonnes of zinc and lead and 1.6 million ounces of silver in near-surface, high-grade mineralised zones, Oposura is presenting a strong case for mine development.

“Open pit and underground mine planning and scheduling are now underway.

“The schedules will be used to optimise the proposed plant throughput rate and finalise the capital and operating cost estimates.

“Further information on the results of these studies will become available during the third quarter of 2018.

“Since acquiring Oposura less than a year ago, the company has significantly advanced and de-risked the project.

“Potential risks that have been positively addressed include the Mineral Resource, metallurgical performance and process route, concentrate marketing and transport, environmental baseline studies and access to infrastructure.”

Azure believes the Mineral Resource shows potential for future expansion as the mineralisation remains open in several directions with the most obvious area for increase being the Central Zone, a 500m-wide zone situated between the East and West Zones.

This area has been only lightly tested by historical drilling and the mineralised horizon is present in several drill holes.

Additional upside potential is also present to the north of the Mineral Resource.

The company has further drilling planned for 2018 to upgrade the classification and expand this initial Mineral Resource, and to explore the wider property.




Rox Resources Exercises Gold and Nickel Tenement Options

THE BOURSE WHISPERER: Rox Resources (ASX: RXL) exercised an option to purchase two tenements at the company’s Fisher East nickel and Mt Fisher gold projects, located 500 kilometres north of Kalgoorlie in Western Australia.

Rox Resources explained the tenements, situated along strike to the south of known nickel and gold zones on existing Rox tenements, were subject to an Option to Purchase Agreement struck in 2014.

“These two tenements are key strategic assets to our nickel and gold projects at Fisher East and Mt Fisher respectively,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“They represent highly-prospective areas where we have identified strong indications of mineralization, and I am confident that we will make further discoveries, which will allow mineral resources to be defined.”

The Fisher East nickel project hosts a Mineral Resource of 2 million tonnes at 2.5 per cent nickel for 50,600 tonnes of contained nickel at Camelwood, Cannonball and Musket, with a fourth deposit, Sabre, yet to be drilled out.

The first of the new tenements, E53/1802, is located along strike to the south of Rox’s existing Sabre nickel sulphide discovery and covers 10km of the prospective ultramafic horizon, now providing Rox with a total 40km strike length of that favourable stratigraphy.

Work since the option by Rox was announced has identified nickel and copper geochemical anomalies on E53/1802, with fresh nickel sulphides intersected in aircore drilling at the Mt Tate prospect coincident with an EM anomaly.

Further drilling at Mt Tate, and other prospects within E53/1802 is planned over the coming months.

The second tenement, E53/1788, is located along strike to the south of a 7km long gold-in-regolith anomaly currently held by Rox at the Dam and Dirks prospects, which also hosts the Shiva gold prospect, where a recent aircore drilling program identified a 500m long continuous zone of gold anomalism, extending the potential gold-bearing corridor to more than 10km.

Under the terms of the Option the exercise price is $600,000 cash.





Musgrave Minerals and Westgold to Develop Cue Project

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) gained a great leap forward for the company’s Cue project in the Murchison district of Western Australia.

Musgrave Minerals has signed a non-binding Term Sheet with Westgold Resources (ASX: WGX) providing a near term development pathway for the existing gold resources at Musgrave’s Cue project.

The Term Sheet outlines the terms of a Mine Management and Profit Sharing arrangement, under which Musgrave can receive 50 per cent of profits from operations that would be financed, managed and operated by Westgold.

Musgrave explained the Term Sheet is non-binding and provides the scope on which a formal Mine Management and Profit Sharing Agreement can be negotiated.

The arrangement would be restricted to the existing JORC-compliant gold resources Musgrave has already established at the Lena, Break of Day, Jasper Queen, Gilt Edge and Rapier South deposits on its 100 per cent-owned tenements at Cue.

Musgrave would retain 100 per cent of the exploration interests and upside outside of the defined resources.

“This outcome reduces the technical and capital risk for Musgrave and provides the potential for a near term development option for the company,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“We welcome the opportunity to partner with Westgold, an experienced gold mining company with strong technical capabilities, equipment and operating mills in the region.

“Musgrave would retain a 100 per cent interest in all the exploration upside and the potential development is expected to generate positive cashflow that can be utilised to fund exploration, resource growth and discovery for the benefit of Musgrave shareholders.

“The relationship would also enable Musgrave to focus on its exploration strengths and accelerate our drilling programs across a range of high-grade targets including Lake Austin North.”





Saturn Metals Strikes Visible Gold Hits in First Drill Hole

THE DRILL SERGEANT: Saturn Metals (ASX: STN) reported visible gold in the first diamond tail completed by the company at its Apollo Hill gold project near Leonora in the West Australian goldfields.

Saturn Metals said the visible gold was supported by a 3D X-ray scan of a 20-metre section of core from the diamond tail, AHRCD0016, using Swick Mining Services’ Orexplore GeoCore X10 core scanning technology showing the presence of additional interpreted gold grains.

Using the Orexplore technology, interpreted gold grains were scanned at 181.7m, 184.21m, 184.45m 197.2m and 201.25m, giving gold indications over the entire 20m section of AHRCD0016 core.

Saturn has submitted the whole drill core to the laboratory for assay to ensure all gold grains are captured in the analysis.

The company explained that AHRCD0016 is the first of a nine-hole diamond drilling program completed in June to test for higher grade plunging shoots (including the Armstrong and Eagle Shoots) within the current Apollo Hill 0.505 million ounce JORC 2012 Inferred Resource of 17.2 million tonnes at 0.9g/t gold.

“We are extremely pleased with the unusually high number of gold indications we have seen in the AHRCD0016 core so far,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

“We look forward to reporting the assay results for this hole, and the other eight holes in the coming weeks.

“The GeoCore X10 scan has provided us with additional confidence in our interpretations, some timely geological targeting information for the start of our upcoming RC program and a great data set for the deposits apparently simple metallurgical development.”





Alto Metals Claims New Vanguard Gold Mineralisation

THE DRILL SERGEANT: Alto Metals (ASX: AME) claimed discovery of gold mineralised systems at the Vanguard deposit on the company’s Sandstone gold project in Western Australia.

Alto Metals received 50 gram metre fire assays of four metre composite aircore samples taken from 35 AC holes drilled on the periphery of the Vanguard deposit.

According to the company, ten of these ‘extension holes’ intersected shallow intersections of plus-0.5 grams per tonne gold.

Assay highlights include:

20 metres at 1.4 grams per tonne gold from 40m; and

12m at 2.5g/t gold from 0m and 9m at 4.0g/t gold from 60m.

Alto interpreted these new gold results as further evidence the Vanguard system is robust and open and justifies the current aircore drill program to test and expand the footprint of the Vanguard gold deposit.

“Between 26 May and 25 June 2018, Alto completed 253 infill and/or extensional aircore drill holes for a total of 12,175 metres over ten high priority prospect areas at Sandstone,” Alto Metals managing director Dermot Ryan said in the company’s announcement to the Australian Securities Exchange.

“Approximately half of these holes and half of the metres were drilled around Vanguard and between Vanguard and Vanguard North.

“This first batch of four-metre composite assays now received from 35 holes around Vanguard are highly encouraging, and they add two more mineralised structures to the three mineralised structures previously defined by Alto.

“We are looking forward to the assay results of the outstanding 118 Vanguard AC holes over the next four to five weeks, which will potentially define further mineralized structures.”





Metalicity Defines New Lithium Targets

THE DRILL SERGEANT: Metalicity (ASX: MCT) has identified further lithium targets at the company’s 100 per cent-owned Pilgangoora North lithium project located in the Pilbara Region of Western Australia.

Metalicity reported on recent field work, from which it identified two lithium target areas to advance additional field work and potential drilling at the Pilgangoora North lithium project, located approximately nine kilometres north of the world class Pilgangoora group of lithium deposits currently being developed by Pilbara Minerals (ASX: PLS) and Altura Mining (ASX: AJM).

Metalicity completed preliminary mapping, satellite imagery interpretation and rock ship sampling to define a series of pegmatites over a 10km trend.

The recent reconnaissance mapping and rock chip sampling, combined with the earlier rock chip sampling results, has identified priority target areas for further work.

“The exploration program has confirmed the likely source granite for many of the pegmatites with rare-element geochemical signatures present within the Pilgangoora North tenements and has provided additional information which supports the two priority target areas (PN 2 and PN 3) in which to focus further exploration activity for lithium bearing pegmatites,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.




Impact Minerals Following Silica Hill Mineralisation

THE DRILL SERGEANT: Impact Minerals (ASX: IPT) has commenced a new round of drilling at the company’s 100 per cent-owned Commonwealth project north of Orange in New South Wales.

Impact Minerals is carrying out follow up diamond drill program to test the depth extent of high-grade gold and silver mineralisation at the Silica Hill prospect

The drill holes are targeted at the down dip and down plunge extension of the southern and northen mineralised zones that company identified either side of a recently identified porphyry unit within the Silica Hill rhyolite.

The company outlined the southern mineralised structure has good grade and geological continuity over a strike extent of at least 150 metres and recently returned high-grade gold and very high-grade silver results within the north west trendng part of the zone.

The lower-grade northern mineralised zone also demonstrates continuity and recently returned its thickest zone of mineralisation to date, which Impact has interpreted to suggest that, similar to the southern zone, lower-grade mineralisation is increasing in thickness and grade at depth and also to the east.

Impact declared the Silica Hill results continue to demonstrate the potential for bulk mining and to increase the Resources at the Commonwealth project, which currently stand at 720,000 tonnes at 2.8 grams per tonne gold, 48g/t silver, 1.5 per cent zinc and 0.6 per cent lead.

“The recently identified porphyry unit within the Silica Hill rhyolite is similar in composition to the porphyry unit at the Commonwealth deposit 150 metres to the west which comprises a gold-silver rich base metal massive sulphide lens and veins and disseminations of gold and silver mineralisation,” Impact Minerals said in its ASX announcement.

“This suggests a common link between the two mineralised areas and importantly indicates that this new porphyry unit could be the top of a pipe or sheet like feature that extends to some depth.”





Blackstone Minerals’ Consistent Cobalt Hits Continue to Polish Little Gem

THE INSIDE STORY: Blackstone Minerals (ASX: BSX) has made a rapid start and impressive progress since joining the competition to discover high-grade cobalt deposits.

Blackstone Minerals listed on the ASX in January 2017 and in July that year acquired 100 per cent of the Little Gem project, located in British Columbia, Canada.

Cobalt is very much a metal-of-the-moment, due mainly to its 60 per cent contribution to the makeup of lithium-ion batteries, which is the basis for 50 per cent of global demand.

Expected growing demand for electric vehicles leads the lithium-ion battery charge that is sweeping cobalt along in its wake.

As a result, cobalt is expected to have a supply deficit, especially as current global mining output is only just meeting demand.

The cobalt price has enjoyed a buoyant run over the past two years, rising from US$10 per pound (US$22,000/tonne) to US$40/lb (US$87,000/t).

Current prices are still well short of the highs of US$52/lb (US$115,000/t) experienced in 2008, which was the last time cobalt was in deficit.

Blackstone Minerals commenced a six-hole maiden diamond drilling program at Little Gem in 2017, which came up trumps from the get go.

The first drill hole intersected massive, semi-massive and disseminated mineralisation, returning:

4.3 metres at 1 per cent cobalt and 15 grams per tonne gold, including 1.1m at 3 per cent cobalt and 44g/t gold.

These results were encouraging and were consistent with high-grade historic underground drilling and adit channel sampling data results of 1.8m at 2.4 per cent cobalt and 112g/t gold and 1.8m at 4.4 per cent cobalt and 73g/t gold respectively.

The first hole only tested the upper portion of the mineralised target but was able to identify multiple zones of massive sulphide (cobalt-gold) mineralisation within a broader alteration halo.

Blackstone re-commenced its 2018 field season drilling in April and immediately revealed the Little Gem alteration halo to be much larger than the company had previously estimated.

The 2018 drilling results the company had received at the time of writing had consistently intersected a broad alteration zone, highlighting potential for a major hydrothermal system at Little Gem.

The third hole to be completed at Little Gem, LGD18-002, continued to encourage Blackstone, returning:

3.2m at 0.8 per cent cobalt and 4g/t gold, including 1m at 1.2 per cent cobalt and 5g/t gold.

“It’s very clear that the results we have achieved to date are in line with our expectations, especially with our first hole at Little Gem hitting three per cent cobalt,” Blackstone Minerals managing director Scott Williamson told The Resources Roadhouse.

“We have now followed that result with further high-grade cobalt hits of one per cent and over.

“To put that in perspective – our peers in Australia are averaging around 0.1 per cent cobalt.

“We have recorded two intersections of over one per cent cobalt, which is ten times anything our Australian peers have encountered.

“We believe we are, potentially, dealing with a major hydrothermal system, which means there is a lot of fluid flow and a broad halo around this mineralisation.”

On the back of these positive results, Blackstone initiated a geophysical survey to test for further high-grade cobalt-gold prospects within the identified plus-1.8-kilometre strike target zone at Little Gem and the nearby Jewel prospect located 1.1km north-northeast of Little Gem.

“We are now seeing a significantly larger alteration zone at Little Gem and we are also seeing that the disseminated mineralisation is carrying good widths within flat lying zones of mineralisation,” Williamson said.

“To really understand that, we need to carry out more geophysical studies, so we can unlock what is really happening within the deposit.

“Over the next three to six months we will be focused on doing just that.”

The second mineral occurrence to attract Blackstone’s attention at the Little Gem project is the historic Jewel gold prospect which supported limited gold production from 1938 to 1940.

The Jewel prospect is located only 1.1 km north-northeast of the Little Gem Mine, near the (serpentinite/ granodiorite) contact zone which is prospective for cobalt-gold mineralisation in a fashion the company considers being analogous to the world class Bou-Azzer primary cobalt district in Morocco.

The comparisons to Bou-Azzer are inevitable with the district Little Gem is situated in having been well-explored and well-understood for gold and other metals, however, Blackstone is the first to be primarily on the hunt for cobalt.

The multi-element potential of the district has been demonstrated since Blackstone began working on the Little Gem project.

The company has verified mineralisation identified historically at the Little Gem prospect as well as at the Jewel gold prospect and discovered a new high-grade gold prospect named Roxey.

The Roxey gold prospect is located 1.5km west-southwest of the Little Gem prospect and was visually identified by Blackstone during the company’s original due diligence site visit, during which it took rock chip samples that returned assays of up to 24g/t gold, 1.9 per cent copper and 24g/t silver.

This was supported by surface rock chip samples taken at the Jewel prospect, which returned up to 98g/t gold and 3.2 per cent copper.

These results confirm what Blackstone found from its investigation of historical samples.

The Little Gem Project was discovered in the 1930s by prospectors who identified a pink cobalt-bloom on weathered mineralisation that led to the development of three adits.

A total of 1,268m of underground drilling was completed at this time and detailed channel sampling was taken from the adits.

Results from this historic work generated exceptional cobalt and gold assays including:

Historic drilling
1.8m at 2.4 per cent cobalt and 112g/t gold 3.3m at 1.4 per cent cobalt and 12g/t gold; and
4.1m at 1.4 per cent cobalt and 11g/t gold.

Underground channel sampling
1.8m at 4.4 per cent cobalt and 73g/t gold; and
2m at 3.1 per cent cobalt and 76g/t gold.

Surface channel sampling
0.4m at 5.7 per cent cobalt and 1,574g/t gold; and
0.1m at 4.6 per cent cobalt and 800g/t gold.

The Little Gem deposit is mostly underlain by granite of the Coast Plutonic Complex and ultramafic rocks on what has been interpreted to be the northern extension of the Cadwallader fault zone.

These are the major geological units and structures important to the mineral deposits either as the host rocks or sources of the mineralising fluids that gave rise to the Bridge River mining camp.

This camp has 60 mineral localities including the Bralorne-Pioneer mining complex, which boast an endowment of 4.4 million ounces at 17g/t gold and is the biggest gold producer in British Columbia and the sixth largest in Canada.

Little Gem is only 15km along strike to the north of the Bralorne-Pioneer mining complex.

Incredibly, there has been very little modern-day exploration carried out at Little Gem and what has been undertaken mostly consists of airborne geophysical surveys, including magnetic, radiometric and electromagnetic (EM) surveys completed in the 1970s and a further two drill holes completed in 1986.

“Results from the first three drill holes have confirmed Little Gem has some of the world’s highest-grade cobalt-gold mineralisation,” Williamson said.

“We are looking forward to the next round of assays and results from geophysical surveys to define the full potential of the mineralised system and the extensive alteration zone discovered at Little Gem.”


Blackstone Minerals Limited (ASX: BSX)
…The Short Story

Suite 3, Level 3
24 Outram Street
West Perth, WA, 6005

Ph: +61 8 9425 5217


Hamish Halliday, Scott Williamson, Andrew Radonjic, Steve Parsons, Bruce McFadzean, Michael Konnert