Metalicity Intersects Sizeable Cobalt at Kyarra

THE DRILL SERGEANT: Metalicity (ASX: MCT) reported drilling results from the first exploration drilling program conducted at the company’s Kyarra cobalt project, located in the Yerrida Basin, Western Australia.

Metalicity has previously identified high-grade and widespread surface cobalt results at Kyarra.

The company said the drilling program was designed to understand the origin of anomalous surface cobalt geochemistry it had delineated over a target area of 2 kilometres by 3.5 kilometres.

The program involved an initial RC percussion drilling program to test whether a linear anomaly trend was associated with underlying structural/stratigraphic controlled mineralisation, or was related to scavenging of metals mobilised in the surface weathering environment by iron and manganese oxides.

According to Metalicity this drilling intersected a stratigraphic setting and returned anomalous copper and cobalt analyses, which are consistent with the company’s exploration targeting model at Kyarra.

“Structural interpretation of the Yerrida Basin and the high-grade and widespread levels of cobalt in our surface sampling results supported our view that Kyarra is prospective for copper-cobalt and nickel-cobalt deposits,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“Applying the prolific Central African Copper belt exploration model, drilling continues to provide a body of evidence this model is stacking up.

“Drilling intersected anomalous cobalt in every hole and importantly identified an 8 to 12 metre-thick zone of mineralisation that may sit above the source of cobalt mineralisation, which the company will target in the next phase of exploration.”


Calidus Resources Hits Encouraging Gold at New Satellites

THE DRILL SERGEANT: Calidus Resources (ASX: CAI) announced the intersection of encouraging widths and grades of gold mineralisation at the Fielding’s Gully and Copenhagen deposits within the company’s wholly-owned Haoma tenements.

Calidus recently acquired 100 per cent interest in the tenements that are part of its Warrawoona gold project in the East Pilbara district of the Pilbara Goldfield in Western Australia.

A total of nine holes were completed at Fielding’s Gully and 16 holes at Copenhagen.

RC drill results from the recently completed program returned gold intercepts grading greater than 10 gram-metres including:

Fielding’s Gully

16 metres at 3.52 grams per tonne gold, including 1m at 10.85g/t gold and 1m at 22g/t gold from 71m;

21m at 1.85g/t gold, including 1m at 10.3g/t gold from 55m;

8m at 3.97g/t gold from 22m;

11m at 2.62g/t gold, including 1m at 19.75g/t gold from 25m;

11m at 2g/t gold from 25m;

11m at 1.74g/t gold from 28m; and

7m at 2.42g/t gold, including 1m at 11.97g/t gold from 35m.


18m at 4.35g/t gold, including 1m at 13.8g/t gold and 2m at 11.41g/t gold from 46m;

2m at 8.23g/t gold, including 1m at 10.12g/t gold from 27m; and

2m at 5.22g/t gold from 56m.

Calidus Resources described the Warrawoona syncline as being one of the largest mafic-ultramafic-hosted goldfields in the East Pilbara Granite Greenstone Terrane.

The company explained how these gold deposits are composed of quartz lodes within three main shear zones: the Klondyke shear zone, the Copenhagen shear zone and the Fielding’s Find shear zone.

“The Fielding’s Gully drill program was designed to provide the initial testing of an extensive gold anomaly defined by shallow historic open hole drilling completed in the 1980’s and 1990’s,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“These assay results confirm the presence of a large mineralised system over 300 metres of current strike length with all holes intersecting zones of quartz veining in mafic and ultramafic schists similar to that observed at the Klondyke deposit approximately 10 kilometres to the east.

“Mineralisation at Fielding’s Gully outcrops and remains open along strike and at depth and will be followed up in future drill programs.

“The Copenhagen drill program was designed to test extensions along strike and to investigate a possible parallel lode that had been defined to a limited degree in previous drilling.

“The results show that the main Copenhagen orebody is plunging to the east and remains open.

“We plan to systematically follow the plunge of this high-grade orebody downdip in the next drill campaigns.”



St George Encounters High Grade Mineralisation at Mt Alexander


Monday, November 13, 2017
THE DRILL SERGEANT: St George Mining (ASX: SGQ) declared drilling at the company’s Mt Alexander project in Western Australia encountered further intersections of massive nickel-copper sulphides.

St George Mining commenced the drill program at the Cathedrals prospect where the first hole drilled – MAD65 – tested for an eastern extension of the high-grade nickel-copper-cobalt-PGEs previously intersected at the Cathedrals prospect.

St George said MAD65 intersected massive sulphides where EM modelling had predicted.

The hole was completed to a downhole depth of 95m and intersected a 34.1m thick interval of the Cathedrals ultramafic that included 3.25m of massive, matrix and stringer sulphides from 52.85m downhole.

St George reported average values of the massive sulphide mineralisation, based on portable XRF readings, of 8 per cent nickel and 3 per cent copper.

Hole MAD66 identified further mineralisation in the Cathedrals footwall fault.

This hole was drilled to a downhole depth of 373m and tested an off-hole DHEM plate in the footwall fault, located below the main Cathedrals ultramafic.

St George explained the drill hole will also be used as a platform for a deep search downhole EM (DHEM) survey.

MAD66 also intersected mineralisation where predicted by EM modelling with 5.9m of brecciated massive sulphides and disseminated sulphides from 180.05m downhole.

Spot XRF readings taken by the company for the brecciated massive sulphides ranged from 2 per cent to 11 per cent nickel and up to 1.5 per cent copper.

“This is an excellent start to the drill program with further high-grade mineralisation being identified in both the Cathedrals ultramafic and the footwall fault,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The upcoming drill holes offer more exciting potential with new targets at the mineralised Stricklands and Investigators prospects and also targets in unexplored areas like Anomaly 11 to the south of Cathedrals.”





Tyranna Resources Announces Further Gold Hits at Greenwood

THE DRILL SERGEANT: Tyranna Resources (ASX: TYX), in its role as manager of the Western Gawler Craton Joint Venture, announced results from reverse circulation (RC) drill holes completed at the Greenwood gold prospect, part of the larger Jumbuck gold project in the Northern Gawler Block of South Australia.

The Western Gawler Craton Joint Venture includes WPG Resources (ASX: WPG) (TYX 75% – WPG 25%) and Coombedown Resources Pty Ltd.

Highlights of thr drilling included:

Hole 031
10 metres at 5.16 grams per tonne gold from 31m into fresh rock (primary zone), including 1m at 29.4g/t gold from 36m, including 1m at 7g/t gold from 37 m.

Tyranna Resources said the drilling had identified a potential discovery of secondary pipe like structure, which has been interpreted by the company’s geologists to exhibit mineral assemblages similar to Hole 020 (results announced 1 November 2017) which intersected 22m at 4.03g/t gold.

“Of note is the outstanding result from hole 031 which intersected 10m at 5.16g/t gold from 31 metres in the primary zone,” Tyranna Resources said ini its ASX announcement.

“This hole was drilled to intersect the same lithological structure as in hole 073 which intersected 8m at 3.35g/t gold from 55 metres in the primary zone.

“Hole 031 failed to achieve target depth and was truncated at 45 metres.

“This area at the northern extent of the mineralised envelope appears to be a secondary pipe like structure.

“Hole 032 has noted the unprecedented occurrence of mineralisation in the upper saprolite.

“To date in excess of 100 holes have been drilled in the Greenewood mineralised zone and no such occurrence of mineralisation has been intercepted at this depth (i.e. from 6 to 10 metres downhole depth).”

Tyranna indicated that diamond drilling is now planned to test the area around Hole 031 to confirm the existence of a repeat high-grade pipe like structure like that discovered by Hole 020.

This work will be planned for the first half of 2018 following the completion of a diamond drilling program near Hole 020.



Musgrave Minerals Continues To Extend Break Of Day Mineralisation

HOT OF THE PRESS: Musgrave Minerals (ASX: MGV) released assay results from the first six drill holes of reverse circulation (RC) drilling currently underway at the company’s wholly-owned Break of Day deposit on the Cue project in the Murchison region of Western Australia.

Musgrave Minerals reported that he current RC drill program at Break of Day has now been extended with more than 30 drill holes targeted to define the mineralisation beyond the current resource boundary and as infill to facilitate a resource classification upgrade from the Inferred to Indicated category.

Drilling within the new south plunging high-grade shoot at Break of Day is continuing and has now extended mineralisation a further 100 metres down plunge from the current resource boundary.

Source: Company announcement

Latest intersections include:

9 metres at 4.8 grams per tonne gold from 206m down hole, including 1m at 17.4g/t gold from 213m down hole;

2m at 13.4g/t gold from 124m down hole;

2m at 5.3g/t gold from 168m down hole;

4m at 4.6 g/t gold from 327m down hole within a broader interval of alteration and veining assaying 39m at 1.3g/t gold from 293m down hole.

“These are further strong results at Break of Day which extends the mineralisation well beyond the current resource boundary,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“These results will continue to grow the resource and enhance the economics of the deposit.

“We have completed 18 drill holes in the current program and following these positive results will expand the program to include a further 2,500 metres of drilling.”

Break of Day currently hosts a combined (Indicated and Inferred) Mineral Resource of 868,000 tonnes at 7.15g/t gold for 199,000 ounces of gold.

Musgrave Minerals expects the Resource will increase with further drilling.



St George Mining Ready To Commence Drilling Windsor Prospect

HOT OFF THE PRESS: St George Mining (ASX: SGQ) has preparations in place for a diamond drill program, set to commence next week, at the company’s Windsor nickel sulphide prospect at the company’s 100 per cent-owned East Laverton project in Western Australia.

St George Mining outlined the drill program to be testing three large EM conductors the company recently identified using a high-powered SAMSON EM survey.

St George said these strong, late-time EM conductors displayed geophysical properties it considers to be consistent with massive nickel sulphides.

Of note is that the conductors are in structural and geological positions St George believes to be favourable for the accumulation of massive nickel sulphide mineralisation.

The three EM conductors are named Windsor X1, Windsor X2 and Windsor X3.

The first target to be drilled will be Windsor X3.

Source: Company announcement

Preparations at site for the drill program have been completed, and the diamond drill rig is currently in transit.

“The large Windsor channel is highly prospective for massive nickel sulphides with previous drilling delivering numerous intersections of magmatic nickel sulphides,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The new EM conductors are compelling targets and we are pleased that we could fast-track the drill program.

“With nickel sulphide drill programmes testing new targets at both our Mt Alexander and East Laverton projects, it’s a very exciting time for St George Mining.”



Lithium Australia Aims For Sustainability In Energy Metals

THE INSIDE STORY: Lithium Australia NL (ASX: LIT), one of the first mining companies to enter the burgeoning lithium space, aims to “close the loop on the energy metal cycle” and create a sustainable lithium future.

While LIT continues to hone its SiLeach® metallurgical technology, its pending acquisition of the Very Small Particle Company (VSPC) will see it move into cathode production as well.

That move is an extension of LIT’s previously announced plans to form a viable battery recycling business.

LIT’s primary focus is the creation of a seamless and sustainable business chain involving several stages: sourcing lithium mineral resources (including mining ‘waste’) as feedstock; processing that feedstock via its SiLeach technology to produce high-quality lithium chemicals and value-adding by-products; further processing the lithium chemicals to create advanced lithium ion (Li-ion) battery cathode materials, and recycling energy metals from spent Li-ion batteries to re-use in new battery production.

The mainstay of this business chain is LIT’s disruptive SiLeach process, designed to efficiently digest and recover metal values from any silicate mineral, without the need for high-temperature, energy-intensive and environmentally adverse roasting.

What drove LIT’s development of SiLeach was its perception that the sustainability of lithium production could be improved by processing materials neglected by others as a feed source for lithium chemicals.

SiLeach is a hydrometallurgical process characterised by low energy consumption and high metal recoveries, with the benefit of extensive by-product credits.

Importantly, it can be applied across a wide range of lithium feedstock, including spodumene, but also lithium micas, which are at present an under-utilised resource.

“We can access lithium from sources that until now were considered unviable, due to a lack of appropriate processing routes – it means we can effectively create value from waste material that would otherwise end up in tailings dams,” Lithium Australia business development manager Brett Fowler told The Resources Roadhouse.

Earlier this year, LIT worked with The Australian Nuclear Science and Technology Organisation (ANSTO) to produce battery-grade lithium carbonate feed from its SiLeach pilot plant.

Ore from the Lepidolite Hill lithium deposit in Western Australia was used as feedstock.

Subsequently, further engineering design studies and financial modelling for the construction of a proposed large-scale pilot plant (LSPP) have been completed.

“Our next goal is the construction of that plant,” said Fowler.

“We’ve completed a pre-feasibility study, which showed a positive outcome, and are now completing optimisation studies.

“Lithium Australia will make an investment decision on whether to proceed at the end of 2017 or very early in 2018.

“Our large-scale pilot plant is expected to produce 2,500 tonnes of lithium carbonate per annum, approximately one-tenth of what would be produced by a full-scale production plant.”

LIT’s proposed LSPP will be based on studies that indicate it can be cash-positive, based on the production of lithium carbonate only and before by-product credits. With economies of scale, and with the inclusion of valuable by-products, a full-scale plant promises a low-cost production route.

The studies concluded that:

• recovery of high-purity lithium carbonate, such as that produced by the ANSTO-operated pilot plant and meeting offtake specification, can be achieved;

• hydrometallurgical plant operating costs would be around US$5,600 to US$6,400 per tonne of lithium carbonate produced, without taking into account potential by-product credits;

• by-product credits may significantly reduce operating costs;

• there is potential for further significant improvements to both capital and operating costs as a result of:

o improved water management;

o optimisation of reagent mix and usage;

o better control of neutralisation to minimise lithium losses;

o optimising the trade-off between residence time and recovery, and

o economies of scale transitioning from pilot-plant testing to commercial operations.

LIT’s preferred supply model is sourcing lithium mica from the waste streams of already operating mines or historical dumps and tailings; however, it is also pursuing exploration activity to secure alternative supplies, both within Australia and globally.

The company has identified sourcing of the feed material as a high priority and a critical requirement for committing to the construction of the LSPP.

In the meantime, further optimisation studies aim to improve both capital and operating costs.

“We hope to make a decision, as a company, to go ahead with that construction by early 2018 – spending in the order of $40 million to do so,” Fowler said.

“We’ve been looking at potential sites for the plant in Asia, including Malaysia; however, a West Australian-based facility is a strong option too.”

LIT is currently seeking expressions of interest regarding product offtake agreements for the LSPP.

“There’s already a significant amount of international interest in LIT’s approach and the large-scale pilot plant,” Fowler continued.

“Development activities at the moment include the structuring of finance options and the development of off-take marketing strategies; both have a completion objective of early next year.

“We think interest will grow once the large-scale pilot plant shifts into gear and we successfully demonstrate our SiLeach® approach. It will lead the way to a full-scale production plant.”

Meanwhile, LIT has finalised its due diligence for the acquisition of advanced cathode-material producer VSPC.

VSPC owns a proprietary process for the production of advanced, high-quality lithium-iron-phosphate (LFP) battery cathode nano-powder material, as well as a pilot plant with advanced laboratory and large-scale testing facilities.

The VSPC technology, which can be adapted to generate a wide range of cathode nano-powder materials, is a simple and cost-effective method of producing such materials in an environment of superior quality control.

“Independent testing by a German laboratory of product generated from the VSPC’s facility showed it to be better than the standards required,” Fowler explained.

“It’s an advanced technology that was invented in Australia a few years ago, but for one reason or another things didn’t go ahead as planned.

“LIT recognised the opportunity and saw the business as a natural fit with our sustainability and value-adding strategies – we’re aiming to lead in Australia’s nascent clean-tech manufacturing sector.”

VSPC’s process is compatible with solutions produced during the processing of hard-rock minerals to recover lithium carbonate, or lithium hydroxide. It means that lithium carbonate produced by virtue of LIT’s SiLeach technology can be used as feedstock for VSPC’s cathode production.

The advantage for LIT lies in the fact that direct production of cathode materials from SiLeach-produced solutions potentially removes two process steps usually inherent in the manufacture of cathode materials.

As a result, LIT creates a revolutionary flowsheet that capitalises on the value-add of shortening the route from lithium chemicals to cathode materials.

As governments worldwide – among them China, Britain, France, Germany, Norway and The Netherlands – legislate to transition from internal combustion engines to all-electric vehicles (EVs), the emerging market for EVs could create an industry worth hundreds of billions of dollars.

EVs require reliable, high-performance batteries, production of which will rely on greater, and more sustainable, supplies of lithium and other energy metals. It’s a situation LIT is monitoring closely and taking very seriously indeed.

Lithium Australia NL (ASX: LIT)
… the short story

Level 1,
675 Murray Street,
West Perth WA 6005

Ph: +61 8 6145 0288


Adrian Griffin, George Bauk, Bryan Dixon

Peel Mining Raises $6m To Advance Southern Nights

THE BOURSE WHISPERER: Peel Mining (ASX: announced a placement of 15 million fully paid ordinary shares at an issue price of 40 cents each, raising $6 million.

Peel Mining announced the placement saying it was priced at an 11.1 per cent discount to the company’s last traded price of 45 cents.

The company said the placement had been oversubscribed, which it deemed to reflect support and attention it has been receiving from major shareholders and new sophisticated and institutional investors.

The company will use the proceeds from the placement for exploration activities at its 100 per cent-owned Wagga Tank project, south of Cobar in New South Wales, along with funding pre-development activities at the 50 per cent-owned Mallee Bull polymetallic project, also in the Cobar Basin.

The placement is timely given the further evaluation of the exceptionally high-grade zinc-lead-silver massive sulphide mineralisation recently identified at the Southern Nights prospect at Wagga Tank has become a priority for Peel.

Following completion of the placement, the company will embark on a drilling program of up to 30,000 metres on the tenements.

“We are extremely pleased with the level of interest in the placement from both existing shareholders and new investors as it has ensured we have the funding to properly test Southern Nights and the broader Wagga Tank area,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange

“Early indications are that the project has the potential to host a major mineralised system.”



Corazon Mining Receives Cobalt Ridge Drill Results

THE DRILL SERGEANT: Corazon Mining (ASX: CZN) released new assay results from the current phase of drilling underway at the Cobalt Ridge deposit within the company’s Mt Gilmore project in New South Wales.

Results have now been returned for 12 of the 15 holes completed to date, which the company said have continued to deliver highly encouraging results, with 10 holes intersecting notable mineralisation.

Source: Company announcement

Corazon Mining explained results are currently pending for an additional three completed holes which targeted the high- grade Cobalt Ridge Main Lode.

The company anticipates these results to be ready soon, and drilling remains ongoing.

“The current phase of exploration at Mt Gilmore has focused on the Cobalt Ridge prospect area and includes drilling and surface sampling,” Corazon Mining said in its ASX announcement.

“Drilling for the program at Cobalt Ridge has to date focused on stepping out and testing new areas of potential mineralisation.

“Results have been extremely encouraging with multiple of sulphidic lodes identified in addition to the Main Cobalt Ridge Lode.

“Drilling at the Main Lode has intersected strong mineralisation in line with Corazon’s previous drilling results, and the maiden holes into the Flintoff’s target, has supported the presence of cobalt-copper-gold sulphide mineralisation.

“The results to date provide encouragement for the potential extension of the project’s target area.”



Sayona Mining Signs Chinese Mou

THE BOURSE WHISPERER: Sayona Mining (ASX: SYA) has signed a non-binding Memorandum of Understanding (MoU) with leading China based battery manufacturer, Huan Changyuan Lico Co Ltd.

Changyuan, a subsidiary of the Fortune 500 Company, China Minmetals Group, is a battery research, development, and production company.

According to Sayona Mining Changyuan produced more than 16,000 tonnes of battery cathode materials in 2016 and is expanding its production capacity to 36,000 tonnes in 2018.

The main products produced by Changyuan include, lithium cobalt oxide and lithium manganese oxide batteries, and ternary composite lithium-ion cathode materials.

Sayona declared the MoU provides and avenue for advancing discussions to facilitate a development alliance exploring marketing, technical and financial opportunities for the company’s Authier project located in Quebec, Canada.

These include:

Changyuan purchasing up to 100,000 tonnes of spodumene concentrate per annum;

Development partnerships for the value-adding of the concentrates into lithium carbonate and/or lithium hydroxide in either China or Canada; and

Funding and investment opportunities for Sayona and the Authier project.

“The company has been exploring a number of options on how it best realises value from the Authier project,” Sayona Mining chief executive officer Corey Nolan said in the company’s announcement to the Australian Securities Exchange.

“The alliance with Changyuan represents a timely, exciting path forward as the company moves towards completing its Definitive Feasibility and meeting its objective of producing first concentrates in 2019/2020, and capitalising on the projected high price environment for spodumene concentrates.”