Gold Road Yamarna_May2017 (300x225)

Good News is Best News for Gold Road Resources

THE INSIDE STORY: Gold Road Resources’ (ASX: GOR) is determined to repeat the Gruyere gold discovery from its substantial 6,000 square kilometre Yamarna Belt tenement holding in Western Australia.

Having negotiated the Gruyere Joint Venture (GJV) deal with Gold Fields Ltd, which the Diggers & Dealers Mining Forum declared, the ‘Deal of the Year’, Gold Road Resources embarked on a $30 million greenfield exploration drilling program.

This recent drilling was centred on the Wanderrie and Corkwood Camps, located within the company’s 100 per cent-owned North Yamarna tenements.

This included RC and diamond bedrock testing of prioritised highest-ranked targets, and infill definition of gold anomalies identified through regional aircore drilling completed while Gruyere studies were being completed.

Of interest was developing an improved understanding of these targets with Santana and Satriani (Wanderrie Camp), and Ibanez (Corkwood Camp) receiving priority attention.

Broad spaced drilling confirmed gold bedrock mineralisation along the main mineralised shear through the Santana and Satriani prospects, which form part of a continuous 11-kilometre-long mineralised corridor known as the Wanderrie Supergroup Trend.

Best Wanderrie mineralised intersections included:

Satriani RC

2m at 14.74g/t gold from 73m;

Santana RC

1m at 17.73g/t gold from 68m; and


5m at 2.03g/t gold from 108m.

Similar bedrock drilling testing the Ibanez prospect at the Corkwood Camp returned intersections of:

Ibanez DDH

8.2m at 11.63g/t gold from 229.67m, including 3.33m at 27.48g/t gold from 232.26m; and

Ibanez RC

10m at 28.67g/t gold from 240m, including 2m at 136.57g/t gold from 240m.

Each new drilling campaign at all three prospects encouraged the company, with planning now underway for systematic framework drilling to definine greater extents of the mineralised systems.


Anticipated results from this extended work will provide a deeper understanding of each prospect’s potential as the company aims to progress at least one of these areas to advanced infill drilling in 2018.

Other work completed on the North Yamarna tenements included aircore definition of a five-kilometre southern continuation of the Wanderrie Supergroup Trend through the Gilmour and Morello prospects, where early bedrock drilling intersected gold mineralisation.

Gold Road interprets Supergroup Trend to be the southern continuation of the Attila‐Alaric Trend, which already hosts 420,000 ounces of gold in Mineral Resources.

The Attila‐Alaric Trend continues over 30 kilometres further south to the Yaffler and Toppin Hill prospects on the company’s South Yamarna Joint Venture tenure, a 50:50 Joint Venture with Sumitomo Metal Mining Oceania Pty Ltd.

The JV’s recent exploration efforts at South Yamarna centred on selective testing of priority targets, particularly the Breelya‐Toppin Hill, Spearwood and Kurrajong Camp Scale targets, where a total of 12 Reverse Circulation (RC) and 103 aircore drill holes were carried out.

Bedrock mineralisation was intersected at Yaffler South, in the Breelya‐Toppin Hill Camp, piquing the JV’s interest by delineating a thick mineralised shear zone close to the contact of a dolerite with a sedimentary unit, which it is confident can be identified in magnetics.

A strike length of 1.4km of mineralisation has been identified to date, providing room for follow‐up drilling that is pencilled in, at this stage, for next year, enhancing the JV’s portfolio of advanced drilling targets.

Best bedrock intersections at Yaffler South, included:

2m at 4.34g/t gold from 142m; and

15m at 0.68g/t gold from 40m, including 1m at 5.84g/t gold from 49m.

A further program, consisting 103 aircore holes was carried out at the Kingston North target, designed to infill and extend anomalism delineated by drilling completed last year.

The drilling confirmed the Kingston North target includes an area of structural complexity with north to north‐west striking shear zones being interpreted from geophysical data.

The company’s geological interpretation of the Kingston North results indicates anomalous gold mineralisation associated with zones of stronger shearing.

These anomalous zones are being incorporated into a detailed geological and structural re‐interpretation that will form the basis for follow up drilling.

“The drilling we have completed this year has provided some extremely encouraging results,” Gold Road Resources executive director ‐ exploration & growth Justin Osborne told The Resources Roadhouse.

“The Gruyere project team has been keeping the project build right on schedule, which has allowed us to focus on speeding up our exploration programme across the broad Yamarna Belt.”

Progress of the Gruyere gold project is happening without much fanfare or headlines, which Gold Road Resources is very pleased about.

As exciting as it is to be building a project of the scale of Gruyere, Osborne said the company was holding the advice of chairman Tim Netscher in high regard.

“It’s great having somebody with the experience of Tim as our chairman and working so close with the Board and the Steering Committee,” Osborne said.

“He’s been through all this before and he knows that the most common news you expect to hear during development of a project is bad news – so we are more than happy not to be generating headlines as the project ticks along on schedule.”

It has been a case of so far so good for the Gruyere gold project, which has quietly progressed, on schedule and budget, under the stewardship of JV partner Gold Fields.

The right boxes continue to be ticked with engineering, procurement and construction (EPC) contractor Amec Foster Wheeler Civmec Joint Venture (ACJV) having commenced process plant construction.

A concrete batch plant was also commissioned, allowing the ACJV to complete the first concrete pour in the carbon‐in‐leach (CIL) area.

Fabrication of the steel plate for the CIL plant tanks, the first of the major components required for the process plant, commenced in Civmec’s Henderson facility south of Perth, which will complete all of the steel fabrication from 100 per cent Australian sourced steel.

Bulk earthworks contractor MACA has completed clearing of the process plant site, construction of the Gruyere airstrip and Gruyere main access road, and has also commenced clearing for the Stage 1 open pit, having completed clearing for the Tailings Storage Facility.

MACA has also started initial construction works for the installation of production and monitoring bores for the Yeo borefield, which will supply the mine and process plant.

A strong field of companies tendering for the mining services contract has been whittled down to a short list of three.

It is expected this contract will be finalised by the end of the year, allowing the successful party to start mobilising to site in the March 2018 quarter.

There may not be as many months left in the year as there were, but Gold Road shows no sign of slowing down before Christmas.

Work on the North Yamarna tenements will include diamond and RC drilling at Ibanez targeting stacked high‐grade lode structures to allow further advanced infill drilling.

On the Gruyere JV, Gold Road expects to report a maiden Mineral Resource estimate for YAM14 in early 2018.

Alaric and Attila pre‐feasibility studies are near completion which if positive will allow reporting of first Ore Reserves also early in 2018.

A high level conceptual mining study for the northern higher-grade zone of Gruyere is also underway to assess potential for future drilling in this area of the deposit.

The South Yamarna JV will conduct drilling at Yaffler, subject to pending assays, in concert with development of a structural and geological map for Kingston North to guide future bedrock testing.


Gold Road Resources (ASX: GOR)
… The Short Story

Level 2
26 Colin Street
West Perth WA 6005

Ph: +61 8 9200 1600


Tim Netscher, Ian Murray, Justin Osborne, Sharon Warburton, Brian Levet

Venturex Resources’ Review Identifies Conglomerate Gold Occurences

THE DRILL SERGEANT: Venturex Resources (ASX: VXR) completed a review of previous exploration at the Mays Find prospect, within the company’s Whim Creek copper-zinc project, Project located west of Port Hedland in the Pilbara region of Western Australia.

Venturex Resources said the review had revealed broad gold- in-soil anomalies associated with outcropping basal conglomerate, and armed with such information declared the identification of gold occurrences associated with the Lower Fortescue Group conglomerates.

Venturex identified the gold occurrences during recent field exploration activities, which were supported by the review of historical gold exploration data at Mays Find.

The company explained the historical data is from soil sampling carried out in 2007 by Straits Resources, the previous owner of the Whim Creek project, which collected soil samples over Mays Find as part of a broader exploration program aimed at discovering additional base metal deposits.

These soil samples were collected every 50 metres along 200m spaced lines over a strike length of 5.2 kilometres, then assayed for a range of elements including gold.

Although the assays produced anomalous results of up to 52ppb gold, there was no further commentary or follow-up work undertaken at the time on the gold potential of the area.

“As part of the historical gold review, the company discovered 57 rock chip samples collected from the Mays Find area in 2014 that had not been assayed for gold,” Venturex Resources said in its ASX announcement.

“Many of these samples were described as various sedimentary rocks including conglomerate.

“The laboratory pulps derived from these rock chip samples stored at the company’s Whim Creek project have been retrieved and sent to the laboratory for a gold fire assay.

“The results from this work will be used to determine future exploration methods to be employed to pursue the conglomerate-gold potential at Mays Find.”

Venturex outlined upcoming work to include additional detailed mapping of the conglomerate and sedimentary units as well as stream sediment sampling and in-fill soil and rock sampling along the entire five to six kilometre length of the Mays Find area.

This work will likely be supported by metal detector traverses of the scree slope below the conglomerate outcrops.



Rox Resources Commences Mt Fisher Aircore Drilling

THE DRILL SERGEANT: Rox Resources (ASX: RXL) commenced an aircore drilling program at the company’s Mt Fisher gold project, north of Leonora in Western Australia.

Rox Resources indicated the drilling campaign at Mt Fisher is to comprise approximately 112 holes for 7,500 metres, with the main focus being the Dam, Damsel, Nile and Shiva prospects where strong drilling results have previously been received.

Rox explained the gold target areas lie to the west of the Fisher East nickel belt and that the aim of the drilling program is to complement the company’s previous successful drilling results, so that more coherent geochemical targets can be defined for follow-up RC and diamond drilling.

Rox believes the Dam-Damsel-Shiva area has similarities to the 3.6 million ounce Bronzewing camp some 75 kilometres to the southwest, and is using the extensive knowledge base that was built up in the 1990’s and 2000’s regarding Bronzewing and the Yandal Belt in its exploration program design.

“We have had these high-priority targets identified for some time, and are now pleased to be able to progress to drilling and target significant gold mineralisation,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“The sheer amount of gold in the regolith in this area is compelling evidence of a much bigger and richer gold source at depth.”





Millennium Minerals Continues Run Of Results From Nullagine

THE DRILL SERGEANT: Millennium Minerals (ASX: MOY) reported further results from exploration at the company’s Nullagine gold project in the Pilbara Region of Western Australia.

Millennium Minerals said the latest results have provided extra support to its plans to increase production and mine life.

Recent drilling has returned intercepts from Au81 West, part of the Golden Eagle Mining Centre.

Millennium said the drilling had also highlighted potential to extend the historical pits at Little Wonder and Roscoes Reward, part of the Camel Creek Mining Centre.

The company assed that its recent review of conglomerate-hosted gold potential at Nullagine has delivered initial positive results, confirming the presence of gold mineralisation within the Dromedaries – two conglomerate-capped ridges located immediately east of the Golden Eagle plant.

All of this follows the gold discovery at Redbeard, part of the Yates trend, and high-grade intersections including visible gold in core at Bartons Underground announced earlier this week.

“These latest drilling results – which traverse 40 kilometres from the south-west to the north-east of our Nullagine tenements – demonstrate the outstanding discovery potential within the Middle Creek Mineralised Corridor,” Millennium Minerals chief executive Peter Cash said in the company’s announcement to the Australian Securities Exchange.

“Millennium made the decision to dramatically expand our exploration efforts in 2017, increasing our exploration budget to $22 million for the year.

“Since then, we’ve hit high-grade gold at almost every target we’ve tested, with results spanning both open pit and underground, as well as oxide and fresh ore targets.

“In addition, the results of the conglomerate review are highly promising, confirming the presence of gold mineralisation within the Dromedaries and suggesting a possible correlation between the mapped conglomerate at Nullagine and some of the extensive geochemical anomalism in the surrounding area.

“Collectively, this puts us in an exceptionally strong position to deliver on our growth objective, aimed at delivering a five-year mine life at Nullagine based on production of 100,000 ounces per annum.”



Calidus Resources Identifies New Gold Targets

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) completed an initial review of the company’s recently expanded land holdings across the Warrawoona gold project in the East Pilbara district of the Pilbara Goldfield in Western Australia.

Calidus Resources said the review had generated numerous high priority gold targets.

Calidus received ASTER (Advanced Spaceborn Thermal Emission and Reflection Radiometer) imagery from across the wider Klondyke area.

The company explained this technology is used to map lithology and hydrothermal alteration zones and identify signatures for gold exploration allowing it to highlight target hydrothermal alteration zones of potentially economic gold mineralisation to discriminate them from altered zones with lower potential.

The imagery consists of 14 data channels covering ranges of visible, near infrared, shortwave infrared and thermal infrared regions of the electromagnetic spectrum.

Using this method, Calidus aims to discern the boundary between altered and unaltered rocks based on alteration minerals and mineral assemblages.

This work is currently being undertaken in conjunction with geological and structural mapping to assist with the ranking of exploration targets.

The company carried out exploration target ranking of the newly acquired Novo tenements, from which it has identified the Trump and Cutty Sark prospects, located approximately 7.5 kilometres to the west of the main Klondyke resource area, as highly ranked near surface high-grade gold targets.

Calidus also completed a regional targeting exercise to confirm a number of potential gold-hosting conglomerate targets on its granted tenements and applications.

During an initial field trip that was aimed at locating the contact horizon and determine the extent of basal Mt Roe formations outcropping on tenement application ELA45/4556 close to Marble Bar, gold nuggets were confirmed.

“With a growing resource base at Klondyke, to have such a suite of exciting regional projects highlights the large potential of this goldfield,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“With the assistance of the CSIRO, we are getting a lot clearer picture of ore shoot control and methods that will allow us to rapidly and inexpensively explore the majority of our landholding.

“This, combined with extensive conglomerate outcrops, which are readily accessed from existing roads, provides Calidus with numerous high ranking targets for the year ahead.

“With such a large amount of opportunity, we have recently employed the highly experienced Brenton Siggs as Exploration Manager to accelerate regional greenfields exploration of our wider tenure whilst our current team continue to focus on resource increase around known deposits.”



ST George Mining Extends Mt Alexander Drilling

THE DRILL SERGEANT: St George Mining (ASX: SGQ) has upped the ante by escalating diamond drilling underway at the company’s Mt Alexander project in Western Australia.

St George Mining said the decision to advance the program followed the recent intersection encountered by drill hole MAD71.

The company now has DHEM being carried out in all drill holes completed to date in the current drill program, which it believes will assist in identifying further mineralisation around the drill holes.

Additional drill holes are currently being designed at the Stricklands prospect, to follow-up on the MAD71 intersection of magmatic nickel-copper sulphides.

The mineralisation in MAD71 is open to the west and north, and is associated with strong SAMSON and SQUID EM anomalies that remain largely untested in this area.

A strong magnetic anomaly also covers this area, which St George considers likely to represent prospective ultramafic stratigraphy.

A diamond drill rig that is currently on site will continue drilling at Mt Alexander 24 hours a day, 7 days a week until the Christmas break.

A second drill rig has now also arrived at the company’s 100 per cent-owned East Laverton project to drill three, strong late-time conductors at the Windsor nickel sulphide prospect.

“The thickness of the ultramafic and the nickel-copper sulphides intersected at Stricklands is supportive of further significant mineralisation being intersected at this prospect,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The target area for further drilling is to the west and north of MAD71 where the SAMSON and SQUID EM anomalies remain largely untested and a strong magnetic anomaly also indicates further prospective ultramafics.

“We are excited to be able to fast-track this follow-up drilling to the significant intersection in MAD71.”



Aruma Resources Commences Drilling At Slate Dam And Beowulf

THE DRILL SERGEANT: Aruma Resources (ASX: AAJ) received a state government nod of approval to commence exploration activities on mining tenement E25/553 within the company’s Slate Dam gold project east of Kalgoorlie in Western Australia.

Aruma received the consent of the relevant minister under ‘Section 18’ of the Aboriginal Heritage Act for access to carry out the work.

Subsequently, Aruma has mobilised its contractors to commence a 5,000 metre RC drill program in early December at both Slate Dam and the company’s other advanced exploration project east of Kalgoorlie, the Beowulf gold project, where all approvals have been received.

Aruma stated that both projects contain proven evidence of gold mineralisation, mineralised intersections at Slate Dam, as well as the successful alluvial mining by prospectors at Beowulf.

“Project evaluation has identified a bottom of hole geochemical gold anomaly of considerable size over the Slate Dam prospect stretching seven square kilometres across sediments contacts within the pressure shadows of recently identified granite bodies,” Aruma Resources said in its ASX announcement.

“All of the geological needs for a gold system are in place, however they have been masked due to the presence of Lake Yindarlgooda over the top of the anomaly.

“A substantial bottom of hole geochemical gold anomaly has been drill defined, however not yet sufficiently drill tested.”

Aruma indicated the drill program will test a high tenor (>200ppb Au) anomaly, which will also include testing the basement of a historic intersection of 6 metres at 2.45 grams per tonne gold from 24m from an aircore drill hole.



Gascoyne Resources Raises $215M To Advance Dalgaranga And Gelnburgh

THE BOURSE WHISPERER: Gascoyne Resources (ASX: GCY) completed a placement to raise approximately $21.5 million at an issue price of 38 cents per share.

Gascoyne Resources said the placement attracted strong support shown from existing institutional shareholders and demand from new major domestic and international institutional investors.

The company indicated the funds will be applied towards regional exploration at the company’s Dalgaranga and Glenburgh gold projects in Western Australia, in particular development of the Dalgaranga gold mine.

Gascoyne signalled its intentions to undertake an aggressive exploration program at both Dalgaranga and Glenburgh, with the aim of extending mine life at the Dalgaranga gold mine, expanding the resource base at Dalgaranga and Glenburgh, and to target new discoveries.

The company has budgeted an exploration spend of approximately $6.5 million at Dalgaranga and Glenburgh through to 30 June 2018.

“We are very appreciative of the strong support we have received for the Placement, in particular, from our existing shareholders,” Gascoyne Resources managing director Mike Dunbar said in the company’s announcement to the Australian Securities Exchange.

“While we are focused on bringing Dalgaranga into production and remain on track and on budget to commence production in the first half of 2018, the recent growth in the Dalgaranga mine plan has demonstrated the positive impact that exploration success, such as that at Sly Fox, can have on the project economics.

“With gold production commencing at our Dalgaranga gold project in the first half of 2018 and an aggressive exploration program on our highly prospective acreage about to commence, we look forward to delivering on an exciting phase for the company as it progresses from developer to producer, and systematically drill testing the significant exploration potential of our two WA gold projects.”





Millennium Minerals Declares New Nullagine Gold Discovery

THE DRILL SERGEANT: Millennium Minerals (ASX: MOY) declared outstanding results from ongoing exploration programs across the company’s 100 per cent-owned Nullagine gold project in Western Australia.

Millennium Minerals carried out a program of follow-up drilling within the Yates trend, part of the Twenty Mile Sandy Mining Centre located approximately 40 kilometres north-east of the company’s Nullagine processing plant.

Millennium said the drilling results produced the discovery a new high-grade zone of shallow gold mineralisation.

The company originally identified the Yates trend by way of a regional soil sampling program.

The trend was identified as being coincident with a gold-arsenic-Antimony anomaly.

Geological mapping defined a 2.5km long trend, from which rock chip sampling returned high-grade results of up to 16.4g/t gold.

Drilling under the area of highest-grade rock chips returned high-grade intercepts, including:

8 metres at 8.44 grams per tonne gold from surface, including 7m at 9.32g/t gold from surface;

10m at 5.79g/t gold from 15m, including 5m at 9.09g/t gold from 18m, void from 12-15m; and

5m at 4.03g/t gold from 38m.

Millennium has named the prospect Redbeard, and further drilling is now underway along strike to further define the extent of the mineralised zone.

Millennium also completed drilling at Bartons Underground designed to upgrade the current Inferred Mineral Resource to Indicated status as part of an ongoing Feasibility Study.

This drilling returned visible gold in core as well as a series of high-grade results, including:

10.5m at 38.64g/t gold from 164m, including 5m at 79.96g/t gold from 164m with visible gold in core;

1.6m at 3.56g/t gold from 181.4m, including 0.7m at 7.06g/t gold from 182.3m with visible gold in core; and

6m at 7.72g/t gold from 153m, including 1m at 38.8g/t gold from 155m.

“These latest results are a major boost to our growth initiatives, delivering a new greenfields gold discovery at Redbeard and providing strong support for our plans to establish our first underground mining operation at Bartons early next year,” Millennium Minerals chief executive Peter Cash said in the company’s announcement to the Australian Securities Exchange.

“This puts us in an exceptionally strong position to deliver on our growth objective, aimed at delivering a five-year mine life at Nullagine based on production of 100,000 ounces per annum.”





Battery Metals Raises 20M To Fast Track Graphite Projects

THE BOURSE WHISPERER: Battery Minerals (ASX: BAT) has received commitments from institutional, sophisticated and professional investors to raise $20 million.

Battery Metals said the Capital Raising was oversubscribed, explaining it comprises of $19.5 million by way of placement and $500,000 in commitments under a drilling-for-equity arrangement.

The company received commitments from its drilling contractor, Mitchell Group Holdings, to provide drilling services in return for equity, on the same terms as the placement.

Under the Placement, Battery Metals will issue approximately 325 million shares at six cents per share in two tranches to professional, institutional and sophisticated investors.

Each New Share will be issued with one free option which will be exercisable at ten cents on or before 31 July 2018.

“This capital raising is a key milestone in the Company’s strategy to become a graphite supplier to the lithium battery industry Battery Minerals executive chairman David Flanagan said in the company’s announcement to the Australian Securities Exchange.

“The overwhelming support we have received from investors around the world reflects the quality of our project and its outstanding potential to tap into the lithium battery market.

“We have received a huge response to our strategy to develop a project with low capital costs, limited funding requirements and a short lead-time to production.

“This approach will enable us to maximise financial returns and minimise risks and time delays, enabling us to capitalise on the huge opportunity unfolding in the energy sector as quickly and efficiently as possible.”

Battery Minerals has commenced work at its Montepuez and Balama graphite projects in Mozambique.

At Montepuez, detailed grade control drilling is underway to underpin daily mining plans ahead of the anticipated grant of a mining lease, which the company expects later this year.

Final approvals are due in the March Quarter 2018 to facilitate the scheduled start of construction in April 2018.

Battery Metals indicated it is on track to commence mine commissioning in the December Quarter, 2018 with first graphite concentrate exports scheduled for the March Quarter, 2019.

The company is also working to fast-track a Definitive Feasibility Study (DFS) at its Balama Central project, where a recently completed Concept Study highlighted the project’s high grade nature and strong fundamentals.

Battery Metals has interpreted the results to suggest the project has potential to, in time, become a world-leading graphite mine.

Battery Metals aims to complete the Balama DFS in mid-2018.