Cassini Resources Commences WMP Regional Drilling Campaign

THE DRILL SERGEANT: Cassini Resources (ASX: CZI) is making progress on a regional exploration program underway at the West Musgrave Project (WMP) in Western Australia.

Cassini Resources is managing the exploration strategy program, which is funded as part of the Earn-in/JV Agreement the company has with OZ Minerals (ASX: OZL).

Under the Agreement, $4 million has been allocated for regional exploration during the current stage, which includes an ongoing Pre-Feasibility Study (PGS), with a further $4 million available during the next stage of the JV should OZ Minerals progress.

“The regional exploration strategy, managed by Cassini, is designed to identify additional high-value ore outside the Nebo-Babel deposits to complement the proposed mining operation,” Cassini Resources said in its ASX announcement.

“To achieve this, the company has identified a number of priority targets with the potential for providing high-grade nickel and/or copper mineralisation.

“The immediate priorities for 2018 program will be to follow-up the One Tree Hill discovery made in 2017, the Yappsu prospect, and further drilling at the Succoth copper deposit.”

Cassini has had Moving Loop Electromagnetic (MLEM) and Fixed Loop Electromagnetic (FLEM) surveys carried out to assist with drill targeting at the One Tree Hill and Yappsu prospects.

The new survey improved the MLEM response over the known mineralisation at Yappsu demonstrating a strong, discrete, late-time anomaly with a NW-SE trend yet the DHEM models could not fully explain the observed MLEM response.

“The new MLEM survey has provided additional confidence to drill targeting,” Cassini said.

“The primary target remains the confluence of DHEM plates from previous drilling.

“It is noted that the previous drilling has not tested the core of these conductors, yet holes have still returned significant mineralisation.

“The implication is that the core zones of the plates, all of which exhibit high modelled conductance, may consist of thicker and/or higher grade massive/matrix sulphide mineralisation.

“Drilling to test these conductors is now underway.”

At One Tree Hill, the MLEM survey defined a late-time conductive trend considered to be consistent with the position and depth of the known massive sulphides at the deposit.

The data has been interpreted to suggest that the small massive sulphide body defined by DHEM surveying was resolved from the surface, providing the company with confidence in other anomalies identified by the survey.

“The MLEM data suggests that the known massive sulphide mineralisation could extend as a narrow (less than 30m) zone over a strike extent of more than 700 metres in a NW-SE trend, perpendicular to general stratigraphy,” Cassini continued.

“There are a number of other interesting features in the survey, particularly a synclinal feature in the NE of the survey area.

“Conductors in this area are currently poorly constrained and require further evaluation.”





BCI Minerals Completes Mardie PFS

THE BOURSE WHISPERER: BCI Minerals (ASX: BCI) reported results of a Pre-Feasibility Study (PFS) completed on the company’s 100 per cent-owned Mardie Salt and Sulphate of Potash (SOP) project in Western Australia.

BCI Minerals declared the PFS to have confirmed the technical and financial viability of the Mardie project, establishing a positive business case for production of 3.5 million tonnes per annum of high purity industrial salt and 75,000 tonnes per annum of fertiliser grade SOP.

The project design to emerge from the study maximises the attributes of Mardie’s coastal location and large area of flat land with low permeability, whilst minimising its impact on the coastal environment.

BCI Minerals emphasised industrial salt has an attractive long-term demand outlook in Asia, driven by expected growth in the chlor-alkali industry, with a net supply gap equal to approximately seven Mardie-sized projects anticipated to emerge over the next decade.

SOP fertiliser, it said, also has a strong demand outlook linked to an increasing Asian population driving food demand, lifestyle changes requiring high quality food, and the requirement for environmentally friendly fertilisers delivering high crop yields.

The Mardie PFS demonstrates a pre-tax NPV of $335 million, IRR of 20 per cent and annual EBITDA greater than $100 million, based on a salt price of US$30 per tonne FOB and SOP price of US$500 per tonne FOB.

Total capex of $335 million will need to be spent to reach full production of both salt and SOP, comprising $248 million for salt plus incremental capex of $87 million for SOP.

BCI indicated it now intends to conduct a Definitive Feasibility Study (DFS), targeting completion during 2019.

“BCI gained ownership of the Mardie tenements at minimal cost in 2012 (as Iron Ore Holdings Ltd) and the team has now delivered an innovative and attractive project solution through the PFS at relatively low expenditure,” BCI Minerals managing director Alwyn Vorster said in the company’s announcement to the Australian Securities Exchange.

“The attractive projected investment returns of greater than $300 million pre-tax NPV, EBITDA of $100 million per annum, and potential to be a low-cost salt and SOP producer, make Mardie a compelling project for BCI to advance through the final feasibility study phase towards development.

“Availability of large areas of suitable land and securing environmental approvals are key barriers to entry in this industry, and BCI is confident that, through our positive engagement with authorities and our approvals track record, Mardie is well placed to secure key development approvals by the end of 2019.”





Corazon Mining Encouraged by Mt Gilmore Cobalt Exploration

THE DRILL SERGEANT: Corazon Mining (ASX: CZN) updated the market on current exploration activities being undertaken at the company’s Mt Gilmore project in New South Wales.

Corazon Mining said the exploration it currently has underway comprises systematic geophysical and surface geochemistry programs looking to test extensive areas of the project as quickly as possible.

The company indicated its priority objectives include identifying extensions to the cobalt-copper-gold sulphide mineralisation at the project’s main prospect, Cobalt Ridge, as well as defining new targets within the greater Mt Gilmore project area.

The results of a recent geochemical soil sampling program identified a new high-tenor gold (+cobalt) anomaly at Nettle Creek, two kilometres south of Cobalt Ridge.

The main gold anomaly is approximately 700 metres by 500 metres in area and open, peaking at 690 ppb gold, with the background gold assay value being less than 2 ppb.

“This discovery exemplifies Cobalt Ridge’s blue-sky potential for cobalt-copper-gold sulphide deposits within the Mt Gilmore project,” Corazon Mining said in its ASX announcement.

At the Cobalt Ridge prospect, a detailed 3D IP geophysical survey has been completed, which was designed to map drill defined sulphide mineralisation at depth and laterally along strike, particularly under thin cover to the east.

“Initial assessment of the preliminary 3D IP data indicates the data is of high quality, and several primary anomalies have been delineated,” Corazon said.

“The significance of this will be defined via detailed final interrogation, processing/3D inversion efforts currently in progress and expected to be completed in early June.

“The observed anomalism may be indicative of sulphide mineralisation at Cobalt Ridge.”

The company has also had an aeromagnetic survey carried out over a large area of the Mt Gilmore project, as a first pass prospecting tool to focus in on more detailed exploration.

The survey delivered high-quality data highlighting distinguishable features associated with the project’s current areas of known mineralisation.

“Additional processing and target generation in preparation for the next phase of drilling is underway,” Corazon explained.

“This work is expected to be completed in the coming weeks and is anticipated to help deliver high priority targets for the upcoming phase of drilling.”





Aruma Resources Kicks of Third Slate Dam Drilling Phase

THE DRILL SERGEANT: Aruma Resources (ASX: AAJ) has commenced a third phase of drilling at the company’s 100 per cent-owned Slate Dam gold project in the Eastern Goldfields of Western Australia.

Aruma Resources plans to complete approximately 3,000 metres of reverse circulation (RC) drilling across a total of 25 holes in this phase of drilling, with planned drilling depths of up to 150m.

Drilling is expected to be completed in mid-June with results to be released as they become available.

Aruma outlined the program saying it is intended to target priority areas to the north and south of the currently drill defined shoots at Slate Dam.

It is also designed to extend the Slate Dam gold mineralised system and will seek to identify repetitions of the mineralised system to the east and to the west of the current drill defined area.

Specifically, the program will include:

Eight holes to target gold extensions to the north of current drill defined area;
Six holes to target gold extensions to the south of the new S2 gold shoot discovered in Phase 2 drilling;
Nine holes to seek repetitions of Slate Dam mineralised system to the east of the current drill defined area; and
Two holes to seek repetitions of Slate Dam mineralised system to the west of the current drill defined area.

“We are highly encouraged by the results of our two drilling programs to date at the Slate Dam gold project,” Aruma managing director Peter Schwann said in the company’s announcement to the Australian Securities Exchange.

“Drilling has successfully taken the project from concept to validation and has continually expanded the gold mineralised system at Slate Dam.

“The next phase of drilling will commence immediately…with the aim of extending the significant current mineralised system and also seeking to discover new gold mineralised shales to the east and west of the initial drill defined area.”





Blackstone Minerals Continues High-Grade Run at Little Gem

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) released diamond drilling results from the company’s high-grade Little Gem cobalt-gold project in British Columbia, Canada.

Blackstone Minerals has received assays from the first three drill holes of its maiden drilling program at the Little Gem project, where drilling to date has intersected the Little Gem structure within metres of the interpreted target.

Blackstone has found the Little Gem alteration halo to be larger than it had previously estimated.

The company’s 2018 drilling campaign, to date, has consistently intersected a broad alteration zone, highlighting potential for a major hydrothermal system at Little Gem.

Assay results are pending for the next three holes in the maiden drilling program at Little Gem, however results from the first three drill holes include:

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

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

Blackstone has initiated a geophysical survey to test for further high-grade cobalt-gold prospects within a recently identified plus-1.8 kilometre strike target zone at Little Gem and the nearby Jewel prospect located 1.1km north-northeast of Little Gem that is also considered prospective for cobalt-gold mineralisation.

“Results from the first three drill holes have confirmed Little Gem has some of the world’s highest-grade cobalt-gold mineralisation,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“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.”





Azure Minerals Encounters High-Grade Gold and Cobalt at Sara Alicia

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) has encountered additional high-grade gold and cobalt mineralisation during follow-up diamond drilling on the company’s 100 per cent-owned Sara Alicia project, located in Sonora State, Mexico.

Azure Minerals completed the Stage 2 drilling campaign, comprising 13 holes for 1126.9 metres, which had been designed to test for extensions to the high-grade gold and cobalt mineralisation identified by the company’s 2017 maiden drilling program.

This earlier program intersected up to 26.2m at 9.5g/t gold and 1.26 per cent cobalt.

Mineralised drill intersections from the current program include:


3.75 metres at 8.08 grams per tonne gold from 11.8m;

5.9m at 5.5g/t gold from 40.9m;

3.65m at 8.41g/t gold from 0.0m and 19.6m at 8.65g/t gold from 10.65m; and

8.8m at 6.2g/t gold from 6.1m.


3.65m at 1.191 per cent cobalt from 0.0m and 24.95m at 0.312 per cent cobalt from 9.15m;

9.5m at 0.481 per cent cobalt from 3.8m; and

16.2m at 0.326 per cent cobalt from 9.15m.

Azure Minerals explained that hole DSA-14 unexpectedly drilled into a mining void, indicating the old mine workings may be more extensive than recorded in the historical data.

The DSA-14 intersection of 19.6m at 8.65g/t gold included a 1.9m mining void from 22.75m to 24.65m downhole.

Drill core samples taken from immediately above and below the void returned high-grade mineralisation of 19.95g/t gold and 0.907 per cent cobalt and 19g/t gold and 1.065 per cent respectively, which the company interpreted to suggest that higher grade material may have been exploited by historical miners.

“The high-grade cobalt mineralisation is hosted within a shoot of massive and semi-massive sulphides that outcrops near the top of the Sara Alicia hill and plunges at a shallow angle towards the northwest,” Azure Minerals said in its ASX announcement.

“This sulphide-rich shoot also contains high-grade gold mineralisation, while drilling has confirmed that gold is widespread in the rocks of the surrounding skarn system.

“The massive and semi-massive sulphides forming the mineralised shoot provide the company with the opportunity to explore for extensions of the gold and cobalt mineralisation by utilising geophysical techniques.

“Azure is planning an Induced Polarisation (IP) survey to trace the subsurface dimensions and orientations of the mineralised zone.”




Saturn Metals Returns More Positive Apollo Hill Drill Results

THE DRILL SERGEANT: Saturn Metals (ASX: STN) reported new near-surface extensional assay results from a Reverse Circulation (RC) drilling program recently completed at the company’s 100 per cent-owned Apollo Hill gold project near Leonora in Western Australia.

Saturn Metals has now reported all results for the 35 holes it completed during the first phase of RC drilling at Apollo Hill the company has carried out since taking ownership of the project.

Results from the drilling include:

22 metres at 1.01 grams per tonne gold from 52m, including 11m at 1.49g/t gold from 52m;

10m at 1.5g/t gold from 49m;

6m at 2.41g/t gold from 53m;

34m at 0.45g/t gold from 76m; ad

12m at 0.45g/t gold from 36m.

Saturn Metals said the returned drill intersections provided further comparisons to historic drill intersections from Apollo Hill.

The company said that when coupled with other recently released drill results (6m at 2.26g/t gold from 11m, and 23m at 1.15g/t gold from 11m), the latest results highlight the potential to increase the scale of the known mineralised system from the current 0.505 million ounce JORC 2012-compliant inferred gold resource of 17.2 million tonnes at 0.9g/t gold.

“These strong drill results have increased our confidence in our ability to grow and improve the Apollo Hill gold system whilst focusing on shallow extensions,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

“The recent holes provide great additional data on which to base our next resource calculation, which is planned for mid to late 2018.”

Saturn Metals has already commenced a follow-up phase of diamond drilling and further RC resource drilling is being planned for late June 2018.





Calidus Resources Drilling at Warrawoona

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) commenced a 2018 resource definition drilling program at the company’s Warrawoona gold project, south of Marble Bar in the East Pilbara of Western Austaralia.

Calidus will conduct the dual-purpose program to consist of both Reverse Circulation (RC) and diamond drilling, to expand the existing gold resource base of 712,000 ounces and to verify new targets adjacent to the existing resource.

An initial 30,000m RC resource drilling program has commenced onsite at Klondyke with the objective of growing the Mineral Inventory to in excess of one million ounces at Warrawoona by the end of 2018.

Drilling is focussing on areas the company has ranked in accordance with proximity to the existing Klondyke Mineral Resource including shallow strike extensions and potential for high grade shoot geometries.

“The main focus of our 2018 drilling program is to grow the Resource Inventory to in excess of one million ounces by the end of 2018,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This would allow the company to push the green light on commencement of a formal pre‐feasibility study.

“Given the outstanding success of our maiden drilling in 2017, we are confident that this is an objective that is readily achievable.

“The resource drilling will concentrate on the shallow, outcropping strike extensions to Klondyke for a distance of 1.2 kilometres east and 800 metres west of the existing resource, nearly doubling the drilled strike of Klondyke to 4.5 kilometres.

“In addition to the growth of along strike ounces at Klondyke, we will shortly undertake an initial reconnaissance drill program on the St George’s Shear that lies 150 metres to the north of Klondyke, is parallel to Klondyke and shares very similar geology to Klondyke.

“We have planned to test this area over a length of four kilometres.”





Lithium Australia Claims German Cobalt Discovery

THE DRILL SERGEANT: Lithium Australia (ASX: LIT) announced the first results of a maiden exploration program undertaken at the company’s fully-owned Eichigt project in Germany.

Lithium Australia said the initial exploration focused on copper-bearing quartz-veins that were subjected to small-scale mining activities during the 16th century.

From these, cobalt and copper mineralisation were encountered, with grades up to 0.6 per cent for cobalt and 0.48 per cent for copper from sample E802G.

“Strong, previously undescribed cobalt mineralisation at surface confirms the limited nature of past exploration,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“The diggings encountered are testimony to the considerable extent of the strike.

“Close to our Sadisdorf lithium project, and on the doorstep of the European EV manufacturers, this cobalt could prove a strategic feed into the burgeoning battery industry.”





Draig Resources Hits New High-Grade Zone at Bellevue

THE DRILL SERGEANT: Draig Resources reported results of the completion of the first deeper drill hole carried out at he company’s Bellevue gold project in Western Australia.

Draig Resources explained the drilling had been designed to test an area at the project known as the ‘Gap’ targeting the offset and extension of the historic high-grade Bellevue Lode position.

The drilling, targeting the Bellevue underground mine extension, intersected a new high-grade mineralised gold zone. Results include:

3.4 metres at 10.4 grams per tonne gold from 576.2m within 4.3m at 8.8g/t gold from 575.3m downhole and 5.9m below the main zone and a secondary zone of 0.3m at 44.4g/t gold from 584.3m.

Draig said the results are similar in widths and style of mineralisation to the historical Bellevue mine.

“The company is very excited with this initial drill hole and the high-grade gold mineralisation that has been intercepted,” Draig Resources executive director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“The drill hole was designed to test the potential of the offset and extension of the Bellevue Lode which historically produced 800,000 ounces at 15 grams per tonne gold down to only 450 metres below surface.

“The new mineralised intercept is only 500 metres below surface and is located 190 metres west of the southern extent of previous underground mine workings.

“The company is highly encouraged by the observed style of mineralisation and grade tenor in the hole, and the significance of the mineralised gold zone is currently being assessed by the technical team.

“The company will now undertake a broad spaced step out drill program within the 1200 metres of untested strike potential of the Tribune Footwall known as the ‘Gap’.”