Metallica Minerals to Merge with Melior Resources

THE BOURSE WHISPERER: Metallica Minerals (ASX: MLM) announced it has entered into a binding Arrangement Agreement (AA) to merge with TSX_V-listed Melior Resources.

Metallica Minerals said the merger would be via a Plan of Arrangement to be approved by the court in British Columbia, Canada.

The company intimated the merger will create a diversified Queensland mining company with near term production and a strong pipeline of future growth opportunities, boasting a strong portfolio of assets located in Queensland, which has a stable and well-established regulatory regime.

The merging entities believe their complementary mineral sands and bauxite projects, together with project proximity and combined management expertise, provide the opportunity for both sets of shareholders.

The merger is to be implemented by way of a Canadian Plan of Arrangement, whereby Metallica has agreed to acquire all issued capital of Melior by the issue of 20 new Metallica shares for every 1 Melior share held.

Announcing the deal, Metallica said the merged entity will have an enhanced capital markets profile, a strengthened investor base and a strong pipeline of growth assets, positioning it to become a strong new ASX-listed mining company well situated to take advantage of the favourable outlook for mineral sands and bauxite.

“This is a transformational deal for both companies,” Metallica Minerals chairman Peter Turnbull said in the company’s announcement to the Australian Securities Exchange.

“Melior’s Goondicum ilmenite project shares similar attributes to Urquhart Bauxite in that it is fully funded and will be brought into production relatively quickly for a modest capital outlay and will provide a valuable source of near-term cash flow.

“We look forward to combining the respective skills of the two companies to successfully develop those projects and pursue further growth opportunities to build a significant, profitable mining house generating excellent returns for shareholders.”





Saturn Metals Completes Apollo Hill Resource Expansion Drilling

THE DRILL SERGEANT: Saturn Metals (ASX: STN) reported further results from infill and extensional resource drilling at the company’s 100 per cent-owned Apollo Hill gold project, near Leonora in the Western Australian goldfields.

Saturn Metals said the latest drilling had further extended several thick and higher-grade zones of mineralisation towards the surface within the main Apollo Hill resource area.

Highlights of the recent Apollo Hill resource drilling include:

23m at 1.76 grams per tonne gold from 124m, including 17m at 2.32g/t gold from 130m;

46m at 1.11g/t gold from 19m, including 10m at 1.85g/t gold from 25m, and 7m at 2.5g/t gold from 58m;

22m at 1.08g/t gold from 74m, including 12m at 1.72g/t gold from 78m;

10m at 2.39g/t gold from 61m;

22m at 1.02g/t gold from 62m; and

32m at 1g/t gold from 127m, including 20m at 1.46g/t gold from 127m;

Saturn Metals explained these results will be the last to be received from the infill and extensional resource drilling program that was commenced just after the company listed on the ASX in March 2018.

They will be incorporated with all other results from the program and utilised in the Resource recalculation Saturn is currently undertaking and expects to complete later this year.

“The reported intersections have improved the mineral inventory in the heart of the Apollo Hill Resource area,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

“These results, when coupled with other impressive extensional results reported during August, further demonstrate the capacity to improve the development potential of this major gold system.

“Having reported all outstanding results, we are now in the process of incorporating them into a new resource estimate, which we expect to release in the December quarter.”





Lithium Australia Produces Lithium Chemicals From Sileach Trial Plant

THE BOURSE WHISPERER: Lithium Australia announced the production of lithium chemicals from the company’s Sileach Pilot Plant.

SiLeach® is Lithium Australia’s proprietary lithium processing technology.

The company has conducted Stage 1 and 2 trials of the process at the ANSTO’s minerals piloting facility in New South Wales shortly after commissioning of the second generation, purpose built pilot plant.

Lithium Australia declared Stage 1 of the SiLeach pilot plant trial achieved 94 per cent lithium extraction on continuous run, after which Stage 2 of the SiLeach pilot plant trial kicked off on schedule and produced lithium phosphate within 16 hours of start-up.

from Stage 1 of the trial, SiLeach succeeded in generating lithium solutions from mine waste to feed Stage 2 of the trial, designed to generate lithium chemicals from those solutions.

The Stage 2 trial began as planned on 10 September 2018.

The SiLeach technology was used to separate and remove calcium and fluorine impurities from the lithium solutions generated during Stage 1.

The impurities were precipitated as solids prior to the subsequent precipitation of high-purity lithium phosphate.

Lithium Australia indicated that the barren liquor from that process will be further vendor tested for the recovery of potassium sulphate.

“The success of the new pilot plant facility at ANSTO augurs well for our scale-up aspirations,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“It’s encouraging to note the relative ease with which we’ve achieved targets to date, particularly in view of the feed material used – in this case, contaminated mine waste from the Kalgoorlie region.

“SiLeach is ideal for recovering lithium from such materials.

“We’re also enthusiastic about other applications for some of these process steps; in particular, the recovery of lithium from brine, which currently involves lengthy solar evaporation and is subject to the vagaries of the weather.”





Cassini Resources Announces Further Drill Success from Yappsu

THE DRILL SERGEANT: Cassini Resources (ASX: CZI) reported further drilling results from the Yappsu prospect within the West Musgrave Project (WMP) in Western Australia.

Cassini Resources described the hit as the, “second significant intersection of nickel and copper mineralisation at the Yappsu prospect.

The current drilling is beibng funded as part of the Earn-in/JV Agreement Cassini has with OZ Minerals (ASX: OZL) where the JV Partners are currently undertaking a Pre-feasibility Study on the Nebo-Babel deposits as well as a regional exploration program.

Cassini reported that assay results for diamond drill hole CZD0079 confirmed a broad zone of nickel and copper sulphide mineralisation, including:

A narrow, disseminated zone of mineralisation returning 5.75 metres at 0.28 per cent nickel, 0.63 per cent copper, 0.01 per cent cobalt, 0.30 grams per tonne PGE and 0.15g/t gold from 545m;

An underlying broad disseminated zone of disseminated mineralisation of 70.25m at 0.48 per cent nickel, 0.44 per cent copper, 0.02 per cent cobalt, 0.34g/t PGE and 0.08g/t gold from 555.05m.

This includes a massive sulphide zone of 0.8m at 4.39 per cent nickel, 0.11 per cent copper, 0.13 per cent cobalt, 1.45g/t PGE and 0.02g/t gold from 555.75m.

Including the barren interval between the two main zones, the diluted intercept is 80.3m at 0.44 per cent nickel, 0.44 per cent copper, 0.02 per cent cobalt, 0.32g/t PGE and 0.09g/t gold, which is the thickest intercept of mineralisation the JV has drilled to date.

“The thickness, grades and continuity of massive sulphide mineralisation, which has been intersected in almost every hole at Yappsu drilled to date, indicates the overall potential for the system to host additional significant accumulations of massive nickel sulphides,” Cassini Resources said in its ASX announcement.

The intercept in CZD0079 complements an earlier result from CZD0076B, confirming the company’s belief that historical drill holes had not intersected the core of the mineralised system.

“Mineralisation has continuity over 250 metres down plunge and remains completely open at depth and untested by current Downhole Electromagnetic (DHEM) or surface Moving Loop Electromagnetic (MLEM) systems,” Cassini said.





Galena Mining Confirms Mineralisation Outside Existing Resource

THE DRILL SERGEANT: Galena Mining (ASX: G1A) released further high-grade lead and silver intersections from four holes drilled as part of a 2018 Infill and Resource development program at the company’s Abra lead project in Western Australia.

Galena Mining said the results from holes AB95 to AB98 confirm high-grade mineralisation 150 metres outside of the Resource it released in March this year and remains open.

Of the new holes, AB95 was drilled as an infill hole within the envelope of the current Mineral Resource and returned results that met the company’s expectations.

Drill-holes AB96, AB97 and AB98 were drilled to test for shallow north western extensions to the Apron Zone outside of the March 2018 Resource.

All three drill-holes intersected high-grade lead mineralisation, including:

16.2 metres at 9.2 per cent lead and 44 grams per tonne silver, including 4.5m at 15.1 per cent lead, 44g/t silver and 0.9 per cent copper and 6m at 14.5 per cent lead and 28g/t silver;

6m at 11.8 per cent lead and 19g/t silver; and

4.6m at 5.9 per cent lead and 19g/t silver.

Galena said the results demonstrated the mineralisation is gently dipping so has interpreted intersection widths to be estimates of true widths.

“These results are very exciting because they confirm high-grade mineralisation extends 150 metres beyond the existing Resource model mineralised area,” Galena Mining managing director Alex Molyneux said in the company’s announcement to the Australian Securities Exchange.

“This bodes well for achieving our Resource development ambitions when we come to publish an updated Mineral Resource estimate.”

Galena has now completed twenty drill-holes (AB82 to AB101) as part of its 2018 Resource Infill and Development drilling program with assays for holes AB99 to AB101 pending.

The company outlined the 2018 Resource Infill and Development drilling program has two aims: (i) to infill areas of existing Inferred Resources with the aim to upgrade the volume Indicated Resources as part of the Pre-Feasibility Study work; and (ii) to test for extensions to the high-grade mineralisation with the aim to upgrade the overall Resource.




Sheffield Resources Signs Native Title Co-Existence Agreement

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) signed a Co-existence Agreement (Agreement) in relation to the company’s Thunderbird mineral sands project in northern Western Australia.

Sheffield Resources said the signing follows its recent signing of an in principle and non-binding term sheet with the Traditional Owner Negotiation Committee (TONC) that represents the Mount Jowlaenga Polygon #2 claimant group (Traditional Owners).

Sheffield has worked closely with the TONC and its advisors to formalise the terms of the agreement, which has now been executed and delivered to the Traditional Owners.

This allows the Kimberley Land Council (KLC) to proceed with an Authorisation Meeting, which involves a meeting with a wider group of Traditional Owners to consider authorising the Named Applicants to execute the Agreement.

Sheffield explained that the Authorisation Meeting represents the final step in this process and is currently expected to take place in late October or early November 2018.

“We commend all parties for their efforts in finalising the terms negotiated with the TONC in a timely and conciliatory manner,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“The signing of the Agreement is now binding on Sheffield and provides certainty to the wider group of Traditional Owners in the period leading to the Authorisation Meeting.”

Sheffield indicated it aims to continue to work closely with communities throughout the Kimberley on employment and business opportunities as part of its commitment to the development of Thunderbird.

McFadzean said the company was focussed on its licence to operate with Traditional Owners and the wider Kimberley community and looked forward to working alongside them as the project moves into development.





Alliance Resources Drilling to Increase Weednanna Resource

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) wasted little time getting back out on the ground with the resumption of RC drilling at the company’s Weednanna gold deposit in South Australia.

The Weednanna gold deposit ispart of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources (ASX: TYX) (24.99%).

Alliance released a maiden Mineral Resource Estimate for Weednanna this week of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold.

Alliance reported it has re-commenced RC drilling at the deposit with the intention of increasing the size of this resource.

During recent resource drilling several high-grade shoots were identified and these will be further delineated to increase the overall resource.

A total of 27 RC holes, for 4,200 metres, is planned to be completed and will consist of:

23 holes, for 3,600 metres, drilled to extend gold mineralisation at Shoots 1, 4, 5 and 5E; and

4 holes, for 600 metres, drilled to test for gold mineralisation associated with a major quartz vein in the immediate hangingwall at Shoot 1, where historic drill hole 00WDRC072 returned 48m at 2g/t gold from 54m, including 7m at 5.4g/t gold from 69m and 2m at 16g/t gold from 98m.

“This drilling program is the first of several drilling programs planned to increase the size of the Weednanna Mineral Resource,” Alliance Resources said in its ASX announcement.





Lithium Australia Completes Stage 1 of Sileach Plant Trial

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) completed the first stage of a two-stage trial of the company’s SiLeach® pilot plant the ANSTO’s minerals piloting facility in New South Wales.

Lithium Australia explained the concentrate used as feed for the trial was prepared in Perth and consisted of lepidolite recovered from mine waste.

Stage 1 of the trial produced a lithium pregnant liquor from lepidolite feed that will be processed during Stage 2 to produce lithium chemicals.

Stage 1 ran from 6-16 August 2018, during which the plant operated in continuous mode for five days, processing lepidolite concentrate at approximately four kilograms per hour through leach, pre-neutralisation and impurity removal stages.

Preliminary data indicated lithium extraction in the leach circuit peaked at 97.5 per cent and averaged 94 per cent for the duration of the trial.

Lithium Australia said the trial had successfully demonstrated continuous operation of the company’s proprietary SiLeach process, including full recycle of intermediate process streams.

“We are extremely pleased with the outcome of the first stage of the two-stage SiLeach pilot plant trial at ANSTO Minerals,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.

“We anticipate that stage 2 will result in the production of a lithium chemical from waste material sourced near Kalgoorlie.

“We will then apply VSPC’s proprietary process to that lithium chemical and, ultimately, produce a lithium-ion battery: a world first.

“And we’ll do so whether the Australian federal government chooses to back the Lithium Valley concept or just ignore it.”

Lithium Australia indicated it is assessing the implications of the federal government’s policy change in capping its Research and Development rebate scheme, a move the company feels has potential to negatively affect the new energy metals processing industry proposed for Western Australia.

Lithium Australia is considering relocating its successful R&D activities elsewhere – perhaps Germany, which has a target date for the demise of internal combustion engines and is facilitating that by way of attractive R&D financial support.





Alliance Resources Releases Weednanna Maiden Resource

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced a Maiden Mineral Resource Estimate for the Weednanna gold deposit, part of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources (ASX: TYX) (24.99%) in South Australia.

Alliance Resources declared the maiden Mineral Resource Estimate of 1.097 million tonnes at 5.1 grams per tonne gold for 181,000 ounces gold confirms Weednanna as a quality gold deposit with outstanding economic potential.

The company explained that the reported Mineral Resource is that proportion of gold contained within $2,000 pit shells of: greater than 0.5g/t gold and greater than 2g/t gold underground potential.

The company signalled potential to increase the size of the Mineral Resource with further drilling as all 13 modelled gold shoots are open at in at least one direction.

Eighty-three per cent of the Mineral Resource occurs within 120 metres of surface (1,253 ounces per vertical metre) and is readily accessible using open pit or underground mining techniques.

Alliance said potential exists for new gold shoots not included in the current Mineral Resource.

The maiden mineral resource for Weednanna has been delivered 18 months after first drilling by the JV with a low discovery cost equivalent to $7.90 per ounce gold.

“The delivery of a maiden Mineral Resource is a significant milestone for the company and confirms Weednanna as a quality gold deposit with outstanding economic potential,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.

“This is the first step towards establishing the Wilcherry project area as an emerging gold-producing district in South Australia.”





Blackstone Minerals Confirms Multiple Little Gem Targets

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) released results from phase one of a recently completed IP survey at the company’s Little Gem cobalt-gold project in British Columbia, Canada.

Blackstone Minerals said the IP survey identified two new targets showing anomalies with chargeability and resistivity signatures typical of sulfide bearing bodies.

Following its recent discovery of cobalt-gold mineralisation at Erebor, Blackstone has interpreted these new targets to indicate a potential source of the high-grade mineralisation at Little Gem where it continues to unlock the potential for multiple deposits.

Blackstone declared the results from phase one of the recently completed IP survey confirm multiple new targets along the 1.8 kilometre strike target zone at Little Gem.

The IP anomalies are large in scale (up to 800m long and 500m wide) and exhibit chargeability and resistivity signatures typical of sulfide bearing bodies.

The IP targets are shallow, easily accessible and located to the east and west of Little Gem with coincident geochemical anomalies and a favourable structural setting.

Following the latest geophysical and geochemical results Blackstone considers these latest targets to be of highest priority for its next round of drilling at Little Gem.

The Company is nearing completion of a detailed soil sampling program over multiple prospects adjacent to Little Gem, as well as regional reconnaissance sampling targeting some 335 square kilometres of tenure prospective for primary cobalt and gold mineralisation.

“Our first phase of IP survey results confirm the potential for multiple discoveries along the plus-1.8 kilometre strike target zone at Little Gem,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“We continue to see a belt-scale opportunity similar to the world class Bou-Azzer primary cobalt district in Morocco.

“We have now surveyed only a small portion of our total tenure and already have two new high priority drill targets showing coincident geochemical and geophysical anomalies.

“The IP anomalies have been elevated to our highest priority targets at Little Gem and will be drill tested at the earliest opportunity.”