Rox Resources Pleased by Collurabbie Drilling

THE DRILL SERGEANT: Rox Resources (ASX: RXL) received assay results from a recent aircore drilling program completed at the company’s Collurabbie project, 250 kilometres north of Laverton in Western Australia.

Rox Resources completed the program, which consisted 109 holes for 3,910 metres, testing several targets within its tenements.

Stand out results came from the Troy, Olympia North and Zeus South prospects, including:

TROY

CXAC123
12 metres at 0.8 per cent nickel, 0.03 per cent copper, 0.06 per cent cobalt from 8m; and

CXAC124
24m at 0.47 per cent nickel, 0.01 per cent copper, 0.02 per cent cobalt from 28m.

OLYMPIA NORTH

CXAC156
4m at 0.24 per cent nickel, 0.01 per cent copper, 0.02 per cent cobalt from 4m.

ZEUS SOUTH

CXAC187
28m at 0.48 per cent nickel, 0.00 per cent copper, 0.03 per cent cobalt from 8m; and

CXAC186
20m at 0.33 per cent nickel, 0.00 per cent copper, 0.02 per cent cobalt from 8m.

Rox explained the Troy prospect lies along the north trending ultramafic Beta Sill where previous diamond drilling intersected 0.6m at 2.2 per cent nickel, 1 per cent cobalt.

The company has follow-up drilling planned for the next quarter.

“We continue to generate highly anomalous aircore results at Collurabbie, and it appears to be a significant province for nickel sulphides,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“We will undertake further exploration drilling to better define and understand this mineralisation as soon as possible.”

 

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

 

Draig Resources now known as Bellevue Gold

THE BOURSE WHISPERER: Draig Resources (ASX: DRG) announced a name change to Bellevue Gold Limited (ASX: BGL).

There’s nothing more confusing than waking up to an ASX ticker in your watchlist that wasn’t there yesterday.

But, that’s what happened today with Draig announcing its new handle in a brief declaration to the ASX.

Although the names have changed, the song remains the same, and we were fortunate enough to catch up with company MD Steve Parsons to discuss progress at the Bellevue Mine and the Tribune gold discovery.

CLICK HERE: To read more about Bellevue Gold’s recent activities.

 

Email: admin@draigresources.com.au

Website: www.bellevuegold.com.au

 

Pioneer Resources has Sinclair Mine Plan approved

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) announced it has received government approval for the mining plan for the Sinclair caesium mine.

The Sinclair mine is part of the company’s 100 per cent-owned Pioneer Dome project in the Eastern Goldfields of Western Australia, which includes the Sinclair Zone Caesium Deposit.

Pioneer Resources said it the Western Australia Department of Mines Industrial Relations and Safety had given its approval the project’s Mining Proposal, including Mine Plan and Mine Closure Plan, as well as the Project Management Plan.

These add to the advancements already achieved at the project, including nomination of a Preferred Mining Contractor.

Dates for the commencement of mining will now be firmed up, as too will the commencement of infrastructure establishment and ground preparation that are scheduled to start during August 2018.

These include construction of site access, mobilisation of site buildings, site clearing, soil stockpiles and first blast drilling.

The Mine Fleet mobilisation is planned for September 2018.

“With the receipt of the Mining Proposal and Project Management Plan approvals, the company will complete final documentation with the State and Contractors, and work to a Commencement of Mining Operation start-date during the September quarter,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

 

CLICK HERE: To read more about Pioneer Resources Sinclair Caesium mine.

 

Email: info@pioresources.com.au

Website: www.pioresources.com.au

 

Sinclair Caesium Mine: Small in Stature, Big in Value

THE INSIDE STORY: Pioneer Resources (ASX: PIO) changed the company’s focus and fortunes in 2016 following the discovery of the Sinclair Zone caesium deposit.

Up to that moment, Pioneer Resources had been one of many active exploration companies focused on pursuing lithium (and prior to that, gold and nickel) at its Pioneer Dome project, located in the Eastern goldfields of Western Australia, between Kalgoorlie and Norseman.

“Ironically we started with the Pioneer Dome when we listed and it’s where we took our name from,” Pioneer Resources managing director David Crook told The Resources Roadhouse.

“Here we are 14 years later, about to start our first mine there.

“Our progress over 14 years as an active exploration company has shown we understand our capabilities, and we’ve filtered a lot of ground.

“We are seeing the benefits of that now as interest is returning to the sector.”

Pioneer was one of the first WA-focused junior exploration companies to recognise the potential of lithium.

While others maintained a traditional, ‘this is Kalgoorlie, we must find gold or nickel’, approach, Pioneer saw lithium mineralisation potential at the Pioneer Dome project.

The revelation followed a review of historic exploration reports which recorded numerous pegmatite intersections in nickel or gold-focussed drilling completed since the 1960s.

Further work identified minerals consistent with those seen only in an extremely differentiated zone of a rare-metal lithium-ceasium-tantalum (LCT) pegmatite system.

Pioneer confirmed this mineralogy as pollucite, which indicated the company was on the trail of an extremely rare and valuable commodity, caesium.

The caesium mineral Pioneer found present at Pioneer Dome was determined as being the preferred feed material in the production of Caesium Formate, a high value, high-density fluid used in high-temperature/high-pressure oil and gas drilling.

Caesium Formate provide several benefits, including: minimal damage to hydrocarbon-bearing formations resulting in higher production rates, it acts as a lubricant, is non-corrosive and is considered a benign chemical when compared to alternatives.

Global supply is heavily constrained, and it has few genuine substitutes.

Fast-forward to the present and the Sinclair Zone caesium deposit is now a near-term mining proposition, from which Pioneer intends to extract and sell the high margin caesium mineral pollucite, and possibly potassium and lithium minerals, from the proposed Sinclair open pit mine.

Pioneer is working through the regulatory processes required prior to commencing mining operations.

The importance of the Sinclair deposit was highlighted when Pioneer announced an offtake agreement with Cabot Specialty Fluids Ltd, a wholly owned subsidiary of New York-listed Cabot Corporation (NYSE: CBT).

Cabot is a global specialty chemicals and materials giant and has long been the world’s dominant caesium formate manufacturer, producing around 8,500 barrels per annum, which equates to an annual EBITA of approximately $40 million for its Specialty Fluid’s division.

Cabot liked what is saw at Sinclair and has agreed to buy all of the caesium ore to be extracted from the proposed Sinclair mine that will mine the Sinclair Zone caesium deposit.

The Offtake Agreement also includes a US$4.8 million loan facility to fund mining operations at the proposed mine.

The Sinclair Mine will be Australia’s first ever commercial caesium ore producer.

“Signing that Offtake Agreement is a significant milestone for Pioneer and for the Sinclair Mine,” Crook said.

“We anticipate being cashflow positive from the caesium zone before Christmas and that will lead us to commercialisation of other products at the Sinclair Zone deposit that we have to mine through to get to the caesium.

“With the new-found cashflow we anticipate earning we will continue to drill the lithium aspect of the project, because it is a well-endowed lithium area and we have been discovering lepidolite – the lithium micas that most of our peers like the look of and would like to find on their ground.

“We have also been finding petalite, which is a very pure form of lithium that goes into the manufacture of ceramics and glass.

“We are also starting to see the presence of spodumene, which is the holy grail of lithium explorers.

“But, since we have discovered Australia’s first caesium deposit, for now we are in a rarefied space.

“We have been telling people all along how rare a caesium find is, let alone one of this size.

“Not only will it be Australia’s first, and only caesium deposit to be mined, it will also be the only caesium deposit to be currently mined world-wide.

“There’s got to be more out there within the project area – we hope.”

Elsewhere in the Eastern Goldfields, Pioneer has its 100 per cent Golden Ridge project, located 26 kilometres south east of Kalgoorlie.

Golden Ridge includes substantial areas prospective for lateritic cobalt, plus the suspended Blair nickel sulphide mine that was closed in 2008 during a time of depressed nickel prices, having produced 1.26 million tonnes of nickel sulphide ore at 2.62 per cent nickel.

Pioneer has drilled at four cobalt targets: Rocket, Leo’s Dam, Anomaly 13 and Anomaly 14, intersecting cobalt mineralisation across all.

The prospects are within granted mining leases and an exploration licence along the eastern flank of the Blair Dome, a geological structure within the Golden Ridge project.

“We bought the Blair mine, just outside of Kalgoorlie, for its nickel sulphide potential, it turns out that a lot of the ground has also quite a lot of cobalt associated with it,” Crook said.

“We did some drilling this year and got some very good results.”

Pioneer’s 2018 drilling corroborated the Golden Ridge project to have a well-developed lateritic cobalt mineralisation mantle at the four prospects drilled.

Earlier drilling indicated widespread cobalt mineralisation throughout the project, and Pioneer has flagged future work will be directed towards defining resources.

Upcoming work at Golden Ridge will include detailed analysis of geochemical and geophysical datasets, and integrating drilling to generate an estimated Exploration Target, precise RC drilling to generate a Mineral Resource, and bulk sampling for bench-scale extractive metallurgy which will focus initially on an ore concentration technique.

A further nickel sulphide discovery at the Leo’s Dam prospect reinforced the company’s Blair Dome exploration model and the project’s prospectivity to host nickel sulphide deposits, both near-mine and regionally.

The progression of the cobalt and nickel sulphide potential at Golden Ridge will be a strong component of the company’s focus moving forward.

Lithium remains firmly on the company radar, and Pioneer holds an option to earn up to 80 per cent of the Mavis and Raleigh lithium projects in Canada from Joint Venture partner, TSXV-listed International Lithium Corp.

The Mavis and Raleigh Llthium projects are situated 19 and 80 kilometres respectively east from the town of Dryden.

Recent work targeted the Fairservice Pegmatite 6 prospect, comprising nine diamond core holes, all of which intersected spodumene mineralisation, usually in the form of multiple wide zones of pegmatite.

“Obviously the company’s core focus is to advance the Sinclair Zone caesium deposit into production,” Crook said.

“That project on its own has the potential to be a high margin operation.

“And, we also have a number of other very good projects and knowing we can move onto the Golden Ridge area for the cobalt and nickel sulphide as well as having the Canadian spodumene project sitting in our back pocket is comforting, to say the least.”

 

Pioneer Resources Ltd. (ASX: PIO)
… The Short Story

HEAD OFFICE
21 Ord Street
West Perth WA 6005

Ph: (08) 9322 6974

Email: pioneer@pioresources.com.au
Web: www.pioneerresources.com.au

DIRECTORS
Craig McGown, David Crook, Wayne Spilsbury, Allan Trench

 

Saturn Metals Drills Positive Results at Apollo Hill

THE DRILL SERGEANT: Saturn Metals (ASX: STN) received results from diamond drilling at the company’s 100 per cent-owned Apollo Hill gold project near Leonora in the Western Australian goldfields.

Saturn Metals explained the drilling had focused along higher grade structural zones or shoots within the main Apollo Hill deposit, which has a 0.5 million ounce JORC 2012-compliant inferred gold resource of 17.2 million tonnes at 0.9 grams per tonne gold.

Results returned in this first batch of assays included:

AHDD0007
7.4 metres at 2.01g/t gold from 220.5m;

AHRCD0016
11.2m at 1.77g/t gold from 173.8m, within 24.2m at 1.22g/t gold from 173.8m; and

AHDD0005
3.8m at 2.05g/t gold from 89m, including 0.5m at 15.6g/t gold from 92.3m.

Saturn Metals said the results from AHRCD0016 and AHD0007 had improved the geological continuity of the higher-grade Armstrong zone within the resource, highlighting the potential to increase the overall grade of the known mineralised system.

The company currently has RC drilling further targeting this, and other higher-grade positions.

Saturn submitted samples from the AHRCD0016 mineralised intercept for a second and third round of assays using larger sample size bottle roll cyanidation and screen fire assay to help assess the effect of the nuggety gold noted in the drill core on the reported assay results.

Other results delineated several other wider zones of Apollo Hill style gold mineralisation with intersections including:

AHDD0003
7.8m at 1.12g/t gold from 85m; and

AHDD0005
15m at 0.8g/t gold from 146m.

Saturn indicated that all results would be used in an upcoming resource re-calculation with a resource statement anticipated for later in 2018.

Assays remain pending for four diamond drill holes taht tested distinctly different positions within the greater Apollo Hill gold system.

“Results continue to outline better grades within specific parts of the Apollo Hill gold system and we look forward to seeing how they affect our resource re-calculation in the coming months,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

 

Email: info@saturnmetals.com.au

Website: www.saturnmetals.com.au

 

Resources IPOs Lead 2018 Listings

COMMODITY CAPERS: An interesting piece of research hit The Roadhouse inbox this week in the shape of a Snapshot of Australian IPO Activity for the first half of 2018 from our friends at HLB Mann Judd.

According to the business and finance advisers’ Perth-based Partner Corporate & Audit Services man, Marcus Ohm, the first six months of 2018 witnessed a slower start to the IPO market than the same period for 2017.

Through the 2018 time-frame 39 companies listed on the ASX, compared to 57 for 2017.

As always, there was some silver lining the declining IPO cloud with 2018 still managing to outperform the previous five-year average of 37 listings.

“During 2017 there were 110 listings in total and these were relatively well spread throughout the year, which is contrary to the trends seen over the past decade,” Ohm noted.

“Historically, approximately a third of new listings occur in the first half of the year, which would indicate that 2018 may still prove to be a positive year for the Australian IPO market.”

The irony continued with the month of January providing the strongest month to date – listing-wise – with 10, but money-wise it recorded the lowest total funds raised, with just $50 million, or two per cent of the total for the six-month period.

April came in as the strongest money month, thanks to the listing of L1 Long Short Fund Limited (ASX: LSF) to the tune of $1.3 billion, accounting for 65 per cent of all funds raised for the six-month period.

May was also a good month, welcoming seven new listings – the same number as April.

RESOURCES MAINTAIN THE RAGE

The resources sector continued to be a major contributor to the IPO market, making way for 16 listings in the first six months of 2018.

According to Ohm, the sector is performing on par with its start to 2017, when 15 new listings hit the bourse.

Most noteworthy is that it is the rock-kickers doing all the heavy lifting in the sector with Energy stocks failing to bother statisticians.

Source: HLB Mann Judd

“New Materials listings are still enjoying support from the market, with an average of 98 per cent of subscription rates achieved, which is similar to 2017’s subscription rates,” Ohm observed.

In the lead-up to Diggers & Dealers it is good for the Western Australian sector to be well-represented.

The state has continued its domination of the resources listings, providing 13 new listings.

New South Wales, Queensland and Victoria all recorded one listing each.

“While the Eastern states are usually home to the larger resources listings, this has not been the case so far this year with only $28.1 million raised,” Ohm said.

“Three states: Western Australia (+12 per cent) NSW (+11 per cent) and Queensland (+10 per cent) all recorded gains to the end of June, with only Victoria finishing in the red.”

With IPOs heavily slanted towards WA, it can be no surprise gold has featured heavily in the listings for the start of the year.

Five listing to date in 2018 are solely focused on the precious metal while another five polymetallic companies are also on the lookout for gold.

Copper and nickel have also enjoyed their recent rise in popularity and relevance thanks to the interest generated by the burgeoning electronics and Electric Vehicle spread across six and five listings respectively.

“No other commodities recorded more than two listings, however the diversity of the market continues to grow with over 14 different resources sought,” Ohm said.

“Coal, which for some time has struggled to gain traction in the market, recorded one listing.”

So, there we are at the halfway mark and with another 11 listings in the pipeline for 2018, coupled with an outlook of strong commodity prices and solid share price performance, Ohm predicts Materials IPOs are likely to remain strong performers for the remainder of the year.

 

Web: www.hlbwa.com.au

 

Blackham Resources Delivers Wiluna Tailings Maiden Resource

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) has completed an initial Mineral Resource estimate for the historical tailings at the company’s Wiluna Gold Operations in Western Australia.

Blackham Resources said the tailings are all within 2km of the Wiluna processing plant and have added 620,000 ounces to the Wiluna free milling gold Mineral Resource base.

The maiden Mineral Resource for the Wiluna Tailings is 33.6 million tonnes at 0.57 grams per tonne gold with 77 per cent of the Mineral Resource classified under the JORC 2012 code as Indicated Resources.

Blackham explained that historical tailings have accumulated at the site since the 1930s and recent independent metallurgical test work has shown potential gold recoveries of between 42 to 50 per cent can be achieved through standard mining and gold leaching processes.

The company added that additional metallurgical test work will potentially enhance the gold recovery and validate how this material may supplement its operating plans.

“Blackham has successfully identified additional free milling ore associated with the Golden Age mineralisation and the Wiluna oxidised zones,” Blackham Resources said in its ASX announcement.

“The company also continues its exploration programs into its priority Lake Way targets and has now completed the first phase of drilling.

“This drilling is the first new drilling in that area for 12 years and the company is awaiting final results.”

Blackham intends to continue to add to its free-milling resource inventory at its Wiluna operations with a view to fully utilising its available assets.

Annual updated Mineral Resource estimates are currently underway for all areas at Wiluna and are expected to be reported in the current quarter.

 

Email: info@blackhamresources.com.au

Website: www.blackhamresources.com.au

 

Alto Metals Lodges Mining Lease Applications

THE BOURSE WHISPERER: Alto Metals has lodge a Mining Lease Application (MLA) over the Indomitable Camp deposits at the company’s Sandstone gold project in Western Australia.

Alto Metals has lodged the application, confident of a positive outcome to the current Scoping Study being carried out on the deposits.

Results from aircore drilling programs in 2017 and 2018 have led Alto to consider there to be an opportunity to commence open pit mining operations over several shallow oxide and primary gold deposits in the project’s Indomitable and Vanguard Camps.

“Alto has commissioned Carras Mining Pty Ltd to undertake Mineral Resource estimates of Tiger Moth, Piper, Indomitable and Vanguard, to form the basis of scoping study,” Alto Metals said in its ASX announcement.

“In anticipation of a positive outcome, and to minimise any delay, Alto has lodged a Mining Lease application over the Indomitable Camp deposits with the Department of Mines, Industry Regulation and Safety (DMIRS).

“Over the September Quarter of 2018, Alto expects to undertake drilling to collect samples for metallurgical testwork and other studies and will investigate processing options.

“The testwork and studies will occur in parallel with continued drill testing and exploration of a number of advanced gold-in-soil and litho-structural targets.”

 

Email: admin@altometals.com.au

Website: www.altometals.com.au

Galena Mining Granted Lease Covering Vital Infrastructure

THE BOURSE WHISPERER: Galena Mining (ASX: G1A) has had a General Purpose (GP) Lease granted for all planned mine processing facilities and supporting infrastructure for the company’s Abra base metal project in the Gascoyne region of Western Australia.

Galena Mining said the granting of the lease, which includes administration, mine camp and airstrip was important in terms of maintaining momentum towards development.

The company indicated process engineering as a significant component of the ongoing Pre-Feasibility Study (PFS) and having a permitted area for the associated infrastructure further de-risks the project.

“The granting of our GP lease is significant in that it provides security over the area adjoining the granted mining lease, which contains the Abra deposit, and enables us to expedite planning towards production,” Galena Mining CEO Ed Turner said in the company’s announcement to the Australian Securities Exchange.

“The PFS is on track towards completion in September.

Galena is carrying out a PFS investigating the economic viability of the Abra lead-silver-copper-gold deposit.

Besides the lease granting, other PFS components are well advanced and on track for completion in September 2018.

These include Mining Studies covering scheduling, production ramp-up and rates as well as integrating infill drilling that is aiming to convert additional tonnes of Inferred Resources to Indicated.

 

Email: admin@galenamining.com.au

Website: www.galenamining.com.au

 

Saturn Metals Doubles Drilling Efforts at Apollo Hill

THE DRILL SERGEANT: Saturn Metals (ASX: STN) has commenced a second phase RC resource drilling program at the company’s wholly-owned Apollo Hill gold project, near Leonora in the Western Australian goldfields.

Saturn Metals has mobilised two drill rigs to site to accelerate the program, which will comprise approximately 4,000 metres of RC drilling in 35 holes.

The company explained the planned holes will follow up on recent drilling results that have highlighted the potential to increase the scale of the known mineralised system from the project’s current 0.5 million ounce JORC 2012-compliant inferred gold resource of 17.2 million tonnes at 0.9 grams per tonne gold.

Recent drill results compared well with historic mineralised intervals, including:

AHRC0029
22 metres at 1.01g/t gold from 52m, including 11m at 1.49g/t gold from 52m (Northern Extension); and

AHRC0005
23m at 1.15g/t gold from 11m (Southern Extension).

The upcoming drilling will focus along a 250m southern extension corridor to the 1.1km long resource zone but will also look to extend mineralisation to the north where drilling remains open.

Other objectives of the RC drilling will be to follow up on recent higher-grade shoot intersections including:

AHRC0019
20m at 2.5g/t gold from 52m.

Saturn Metals is working towards an expected update to the resource later in 2018.

“This program of drilling is in keeping with Saturn’s objective of growing the Apollo Hill gold system,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

“We look forward to reporting results in due course and to including them in our new resource estimation.”

Saturn anticipates the program will take two to three weeks to complete, and will provide further information as results are received and analysed.

 

Email: info@saturnmetals.com.au

Website: www.saturnmetals.com.au