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.”





Petroleum Exploration Stats Jump as APPEA Prepares for Battle

THE CONFERENCE CALLER: With the RIU Good Oil Conference just around the corner the Australian Petroleum Production and Exploration Association (APPEA) seems to have resigned itself for a soon-to-be elected Labor Federal Government and is steeling its loins against possible new regulatory battles.

The lobby group shot off a broadside at the Federal Labor Party’s proposal for permanent controls on Australia’s gas exports, declaring these would not lower long-term domestic gas prices.

APPEA’s position is that more regulation and political uncertainty risks deterring investment in new gas supply which, over time, will mean higher prices.

“Like manufacturers, gas producers compete in a tough global market and understand the pressures to stay competitive,” APPEA chief executive Dr Malcolm Roberts said.

“However, trying to regulate prices does not tackle the real problems – the rising cost of producing gas and tightening local supply in Victoria and New South Wales.”

APPEA highlighted the measures proposed by the Labor Party it believes demand further discussion, including:

1) A decision to make the export controls permanent should be informed by the findings of the scheduled review in 2020. Making export controls permanent will compound the already significant level of sovereign risk created by the Australian Domestic Gas Security Mechanism, affecting more than $250 billion invested in Australia by both domestic and foreign investors. It sends an alarming signal to investors considering future investment in Australia.

2) References to a ‘benchmark price’ from the ACCC’s December 2017 report are out-of-date and misleading. The ACCC found, in its most recent (July 2018) report “… domestic price offers have reduced substantially and converged with export parity (LNG netback) prices at Wallumbilla”.

3) More broadly, the ACCC has consistently cautioned that gas prices are influenced by many factors and these factors change over time. These factors include the cost of transportation, the cost of gas production, the “non-price” terms customers request in their gas supply agreement and the role of domestic short-term gas trading markets.

4) It is unclear what “new powers” the ACCC requires. The ACCC is already actively monitoring the gas market and providing regular reports through its Gas Market Inquiry 2017 2020 and has significant powers through the Competition and Consumer Act 2010 to act against any anti-competitive behavior it observes in any market across the Australian economy. and

5) Proposals to strengthen ‘use it or lose’ provisions appear unnecessary and potentially counterproductive. A recent review for the COAG Energy Council found “… no evidence that gas is being withheld (or warehoused) from development and production …” and “… to apply a use it-or-lose-it policy to deliver downstream objectives risks longer term investment distortions and higher prices.”

APPEA believes the only effective way to put downward pressure on gas prices is by creating more supply from more suppliers and that supply needs to be from a local source to avoid customers paying significant shipping costs.
APPEA cited a report from June this year from the Australian Energy Market Operator (AEMO), in which it forecast that it does not expect supply gaps until 2030.

This was supported by similar findings of the Australian Competition and Consumer Commission (ACCC) in its July 2018 Gas Market Inquiry 2017-2020 report.

“The export controls introduced last year were not needed to ensure supply in 2018 and will not be needed in 2019 or into the future,” Roberts said.

“APPEA members are committed to supplying local customers at competitive prices.

“The east coast LNG projects are offering all their uncontracted gas to domestic buyers first.”

According to APPEA, the ACCC reports that three LNG projects in Queensland have contracted to sell 305 petajoules (PJ) of natural gas to domestic customers in 2018 – about half of east coast demand – and are likely to do the same in 2019.

Companies operating from offshore Victoria, South Australia and other Queensland gas projects will be responsible for meeting the rest of demand.

ACCC monitoring of the market shows that prices have fallen sharply over the last twelve months.
“APPEA encourages all governments to focus on lasting solutions,” Roberts continued.

“It is bizarre that Labor in New South Wales and Victoria supports bans on local gas projects while Federal Labor now proposes to penalise the gas industry in states that do support development.

“Restricting exports and killing jobs in Queensland does not lower gas prices in Sydney and Melbourne.

“Unless new gas resources in New South Wales and Victoria are developed, families and businesses in those states will pay more than those in states continuing to develop new supply.”

What’s worth taking note of is that the Petroleum industry is currently enjoying surge in activity that is resulting in some positive statistics.

Latest figures from the Australian Bureau of Statistics (ABS) shows the trend estimate for total petroleum exploration expenditure in the recently-completed June quarter 2018 rose 10.6 per cent ($25.3m) to $262.9 million.

Exploration expenditure on production leases rose 0.6 per cent ($0.3m) and exploration expenditure on all other areas rose 13 per cent ($24.4m).

The seasonally adjusted estimate for total petroleum exploration expenditure rose 84.8 per cent ($149.9m) to $326.6 million for the June quarter.

Although exploration expenditure on production leases fell 4.2 per cent (-$2.2m) the news was all good elsewhere with exploration expenditure on all other areas rising 122.2 per cent ($152.2m).

Western Australia maintained its slot as number one Resources State by being the largest contributor to the increase in the trend estimate (up 19.8 per cent, $26.3m) and the largest contributor to the rise in the seasonally adjusted estimate (up 181.2 per cent, $137.9m).


The ABS trend estimate for onshore petroleum exploration expenditure rose 7.7 per cent ($6.4m) to $89.3 million during the quarter and expenditure on drilling rose 8 per cent ($4m) along with other onshore petroleum exploration expenditure that rose 7.6 per cent ($2.5m).

The seasonally adjusted estimate for onshore petroleum exploration expenditure rose 29.3 per cent ($22.5m) to $99.4 million with expenditure on drilling up 6.4 per cent ($3.3m) and other onshore petroleum exploration jumping 75 per cent ($19.2m).


The trend estimate for offshore petroleum exploration expenditure rose 12.1 per cent ($18.7m) to $173.4 million.

Offshore expenditure on drilling rose 34.6 per cent ($24m) and other offshore petroleum exploration expenditure bucked the trend by falling 6.2 per cent (-$5.3m).

The seasonally adjusted estimate for offshore petroleum exploration expenditure rose 127.7 per cent ($127.4m) to $227.2 million.

Expenditure on drilling rose 472 per cent ($118m) and other offshore petroleum exploration expenditure rose 12.6 per cent ($9.4m).


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Pursuit Minerals Generates Swedish Drill Targets

THE DRILL SERGEANT: Pursuit Minerals (ASX: PUR) has generated drill tet targets from a low-level heli-magnetic survey completed over the company’s Airijoki project in northern Sweden.

Pursuit Minerals explained the purpose of the survey was to map magnetic anomalies associated with vanadium mineralisation.

The company said the heli-mag data located intense magnetic anomalies which extend for a further 3.5 kilometres along strike to the north-east of the vanadium intersections encountered in historical holes.

The results from the heli-magnetic survey have increased the company’s confidence in the potential of the Airijoki project to host a large body of vanadium mineralisation.

“The meta-diabase rock hosting the vanadium mineralisation produces a very high amplitude magnetic anomaly which we can easily locate in the heli-magnetic data and which extends a further 3.5 kilometres to the north-east of drill holes K-AIR1 and K-AIR5,” Pursuit Minerals managing director Jeremy Read said in the company’s announcement to the Australian Securities Exchange.

“Also, directly associated with the heli-magnetic anomaly in the south of the Airijoki project area, are very high-grade rock chip samples which contain up to 1.1 per cent vanadium pentoxide (V2O5) in whole rock samples.

“The high-grade rock chips at surface, the 3.5 kilometre heli-magnetic anomaly and the substantial thicknesses of vanadium mineralisation in historical holes K-AIR1 and K-AIR5, all suggest Airijoki has the potential to host a significant body of vanadium mineralisation.”





Silver City Minerals Commences Drilling at Copper Blow

THE DRILL SERGEANT: Silver City Minerals (ASX: SCI) has commenced drilling at the company’s Copper Blow project, located 20 kilometres to the south of Broken Hill in New South Wales.

Silver City outlined the program, explaining it has been designed to test both magnetic and nonmagnetic targets identified in recent induced polarisation (IP) geophysical surveys.

The company indicated it had received additional encouraging results from a recently completed gradient array induced polarisation survey to the northeast of Copper Blow.

Silver City said earlier drilling encountered intersections of copper, gold and cobalt.

The initial drilling program will comprise two holes, each approximately 450 to 500 metres deep.

One will test for deeper extensions to the copper-gold mineralisation outlined by previous drilling at Copper Blow where mineralisation is hosted in a strongly magnetic ironstone.

The second hole will test a large IP chargeability anomaly located approximately 800 metres to the southeast of Copper Blow.

“The source of this anomaly is unknown but is likely to represent significant sulphide mineralisation,” Silver City Minerals said in its ASX announcement.

“Ground magnetic surveys suggest the rocks in the area of this new IP anomaly are non-magnetic and geological mapping indicates the presence of metamorphosed sediments at surface.

“The 3D IP model however indicates that sulphide-bearing rocks are located more than 100 metres below surface.

“Drilling is designed to test this sulphide zone.”