Musgrave Minerals Encounters More Starlight Gold

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported further high-grade gold assay results from its 100 per cent-owned Starlight Link-Lode at the Break of Day deposit on the company’s Cue gold project in Western Australia.

Musgrave Minerals completed reverse circulation (RC) drilling at the Starlight Link-Lode that was focused on testing the new high-grade link-lode.

The company reported the drilling had continued to return consistent, high-grade gold results in drilling where the mineralisation has now been extended to a strike of over 100 metres and remains open to the west and down dip.

Assays of note from the latest drilling include:

42 metres at 6.8 grams per tonne gold from 70m, including 4m at 65.9g/t gold from 70m, including 1m at 173.6g/t gold from 71m;
2m at 3.6g/t gold from 101m; and
2m at 6.2g/t gold from 110m.

4m at 1.7g/t gold from 136m to end of hole with the hole terminating in mineralisation.

“These are more fantastic assay results at Starlight where the link-lode continues to deliver high gold grades,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Drilling continues to extend the lode which is now defined over a strike of more than 100 metres and remains open to the west and down dip.

“Further drilling is expected to continue to extend the high-grade mineralisation.

“Starlight also remains open near surface and the confirmation of multiple individual lodes within this link position will enhance the upside potential and the economics of this new discovery.”

Musgrave considers the identification of the high-grade Starlight Link-Lode structure to hold some significance, being of the opinion that it has the potential to add shallow, high-grade gold ounces to the resource.

The company believes it is possible that other linking structures may be present within the region which will open a large new search space for exploration and increase the probability of growing the resource base.

Following minor delays in assaying, the company has further drilling planned for May assuming no exploration drilling restrictions in relation to the COVID-19 pandemic are in place at this time.

This will be completed together with a diamond drilling program ahead of a resource update for Break of Day that is scheduled for Q3 2020.





Matsa Resources Confirms Fortitude North Gold Discovery

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) announced new results from diamond drilling at the company’s Lake Carey gold project in Western Australia.

Matsa Resources completed the seven-hole drilling campaign at the Fortitude North target in February 2020, from which the results of the first two holes demonstrated continuity of mineralisation to the south beneath a small salt lake.

The company has claimed the results from the remaining five holes demonstrate that Fortitude North exhibits the potential to be a substantial new gold discovery in the Lake Carey district.

Highlights from the final five holes include:

3.4 metres at 12.3 grams per tonne gold from 64m, including 1.7m at 21.2g/t gold;
17.2m at 3.4g/t gold from 73m.

4.6m at 5.15g/t gold from 183.4m;

7.9m at 1.89g/t gold from 212.6m, including 2m at 3.82g/t gold from 215.1m.

4.7m at 1.31g/t gold from 137m;
2m at 8.11g/t gold from 223.5m.

Gold intercepts were encountered in six of the seven drill holes with all drill holes intersecting alteration and veining indicating continuity of the mineralised zone.

“These drill results have confirmed continuity of a zone of basement mineralisation 800 metres in length which represents just over half of the 1,500 metres strike extent of basement gold mineralisation defined by aircore drilling,” Matsa Resources said in its ASX announcement.

“This exciting discovery has become Matsa’s highest priority greenfields target and significant further drilling is planned to cover the remaining 700 metres of prospective strike, as well as to carry out infill and step out drilling to define and delineate gold mineralisation at depth, and to assess the resource potential at Fortitude North.”





Centaurus Metals Making Positive Metallurgical Progress at Jaguar

THE DRILL SERGEANT: Centaurus Metals (ASX: CTM) received further encouraging metallurgical test work results from the company’s Jaguar nickel sulphide project in northern Brazil.

Centaurus Metals recently completed test work on a new composite of ore sampled from the Onça Preta deposit that returned a 16 per cent nickel concentrate grade with a nickel recovery of 81.8 per cent.

The company explained that the composite had a head grade of 1.53 per cent nickel and was taken from four drill holes across the Onça Preta deposit, which is located in the north of the project area.

Centaurus is pleased with the current progress being made with the metallurgical test work program with recent results complementing the design concepts the company has developed for the project, which is based on a smaller, high-grade project using industry-standard flotation techniques, rather than the original project design concepts of previous owner Vale.

“The continued strong recoveries we are achieving in developing a processing route for the project remain around 25 per cent better than those previously delivered in other studies,” Centaurus Metals managing director Darren Gordon said in the company’s announcement to the Australian Securities Exchange.

“If we are able to maintain this excellent trajectory, it will ultimately have a significant positive impact on future project economics.

“These results – coupled with the continued success of our high-grade in-fill and extensional drilling program – are key to developing a robust high-grade nickel operation at Jaguar, leveraging off the project’s other competitive advantages in terms of the shallow, high-grade nature of the mineralisation and its proximity to low-cost power and an engaged labour force and infrastructure in a premier mining jurisdiction.”





Black Cat Syndicate Increases Bulong Mineral Resource Estimate

THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) released an update to the Mineral Resource Estimate at the company’s Bulong gold project in Western Australia.

Black Cat Syndicate announced a 2020 update to the JORC Code 2012-compliant MRE at the Bulong project, increasing the Resource by 21 per cent to 3.5 million tonnes at 2.6 grams per tonne gold for 294,000 ounces of gold.

This increase includes maiden Resources of 0.2 million tonnes at 1.8g/t gold for 10,000 ounces at the Strathfield deposit, 0.3 million tonnes at 1.9g/t gold for 19,000 ounces at the Anomaly 38 deposit, and a 121 per cent increase at the Trump deposit, taking it to 0.6 million tonnes at 2.2g/t gold for 42,000 ounces.

Black Cat has made progress on a Feasibility Study towards commencing mining operations at the Myhree deposit, however, it does expect some impact to the timing of the study completion due to the COVID-19 situation.

The company has commenced drilling programs over multiple early stage targets, returning results to date that include:

1 metre at 20g/t gold from 24m – East of Boundary; and

1m at 13.2g/t gold from 33m – Woodline.

Reductions in future drilling are expected due to the COVID-19 situation.

“The strong growth in Resource at Bulong is driven by a substantial increase at the existing Trump deposit and the inclusion of two new deposits,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.

“This exemplifies the potential for Bulong to discover and grow multiple deposits for future mining.

“Furthermore, the annualised rate of increase in the Resource and reducing discovery cost demonstrates our increasing understanding of Bulong.

“Anomaly 38’s near surface paleochannel mineralisation is particularly interesting as it potentially provides bulk mill feed complimented by high-grade increments.

“The Myhree Feasibility Study is advancing well in what remains a strong gold price environment.

“There have been some impacts from the COVID-19 situation which we continue to manage and monitor.”





Red 5 Completes $125M Raising to De-Risk KOTH

THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) bucked recent trends by announcing a $125 million share placement to sophisticated and professional investors.

Red 5 made the placement at a price of 18 cents per share, saying that it would underpin the company’s next pivotal phase of its growth pathway to becoming a multi-asset, mid-tier Australian gold producer.

Red 5 declared the Placement de-risks the funding requirements to develop the proposed integrated bulk open pit and underground mining and processing operation for the King Of The Hills (KOTH) gold project in Western Australia, where a Final Feasibility Study is due for completion in the September 2020 Quarter.

“We are delighted with the strong support received from existing and new investors, particularly given the current challenging equity market environment,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“In particular, I would like to thank our existing shareholders for their ongoing support and welcome a number of new institutional investors to our register.

“This strong outcome reflects the market’s confidence in the growth pathway we have mapped out, which will see Red 5 evolve into a multi-asset, mid-tier gold producer over the next two years.

“The capital raising significantly de-risks our funding requirements at King of the Hills, which is now well established as one of Australia’s premier emerging gold projects.”



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Carawine Resources Encounters Strong Copper-Gold Porphyry Indicators at Hill 800

THE DRILL SERGEANT: Carawine Resources (ASX: CWX) declared that recent drilling at Hill 800 within the company’s 100 per cent-owned Jamieson project in northeast Victoria indicate a potential copper-gold porphyry intrusive.

Carawine Resources said that drilling results from Hill 800 had identified a broad intersection of intense alteration at Hill 800 with anomalous molybdenum and gold grades that could be close to a copper-gold porphyry intrusive.

The company described the silica-sericite-pyrite alteration zone intersected in drill hole H8DD021 as being geochemically distinct from the rhyodacite-hosted mineralisation at Hill 800, which it believes may represent a style of alteration common to the ‘shoulder’ of mineralised porphyry intrusive systems.

Carawine went on to explain that the intense silicification and extremely high pyrite content, which locally is semi-massive, has an intensity of alteration not seen before at this depth within the Hill 800 system.

High magnetic susceptibility values, broad zones of elevated molybdenum, and consistently elevated gold grades towards the end of hole are all considered to be potential vectors towards a copper-gold mineralised porphyry system.

The company considers the style and intensity of alteration intersected in this hole reinforces the potential for fertile copper-gold porphyry intrusions being targeted in the Jamieson project.

“H8DD021 is one of the deepest holes we have drilled at the Hill 800 deposit and it has returned some of the strongest alteration seen to date,” Carawine Resources managing director Mr David Boyd said in the company’s announcement to the Australian Securities Exchange.

“The correlation between elevated molybdenum assays and magnetic susceptibility readings are both strong indicators that we could be close to the porphyry source of the Hill 800 mineralisation.”





Ausgold Drills Extensions to Katanning Gold Resource

THE DRILL SERGEANT: Ausgold (ASX: AUC) released results of reverse circulation drilling (RC) carried out at the Central Zone within the company’s 100 per cent-owned Katanning gold project (KG”) in Western Australia.

Ausgold completed the drilling during February and March that consisted a program of 23 RC drill holes and downhole EM (DHEM) within the Central Zone, from which it has identified targets the company believes to have potential to add both grade and total ounces to the current KGP Mineral Resource.

The KPG Mineral Resource currently stands at 33.1 million tonnes at 1.1 grams per tonne gold for 1.2 million ounces of gold.

Drilling at Jinkas South targeted a broad zone of gold mineralisation extending down dip and south of the Jinkas Resource.

Intercepts from Jinkas South encountered broad zones of mineralisation extending beyond current Resource areas, including:

13 metres at 1.11 grams per tonne gold 99m;
20m at 0.94g/t gold from 119m;

17m at 1.03g/t gold from 93m;

These holes also hit zones of high-grade gold mineralisation of:

1m at 11.2g/t gold from 142m;

1m at 16.35g/t gold from 73m;

The latest drilling has extended the zone of high-grade gold mineralisation along a strike length of 400m and beyond what Ausgold had intersected in previous drill programs.

A program of DHEM surveys was conducted that developed new target plates that the company hopes to test with RC drilling in coming months.

Ausgold anticipates further drilling will extend mineralisation where it remains open along a strike length of over 400m.

Drilling carried out within the Central Zone, immediately west of the historical Jinkas pit, targeted near-surface gold mineralisation and intersected mineralisation along a strike length of 350m in an area which was previously untested.

The Central Zone drilling intersected near surface mineralisation, including:

7m at 1.79g/t gold from 113m, including 1m at 9.33g/t gold from 118m;

6m at 1.51g/t gold from 37m, including 3m at 2.63g/t gold;
4m at 1.06g/t gold from 111m;

7m at 1.42g/t gold from 96m;
8m at 0.97g/t gold from 84m; and
1m at 4.98g/t gold.

“RC drilling within the Central Zone has intersected broad zones of gold mineralisation which extend beyond current Resource areas and will add further high-grade ounces to the current 1.2 million ounces gold Resource at Katanning,” Ausgold managing director Matthew Greentree said in the company’s announcement to the Australian Securities Exchange.

“Drilling has been complemented with a program of DHEM, which is being used to target high-grade gold mineralisation.

“Newly identified high-grade gold mineralisation at Jinkas South has been intersected over a strike length of 400 metres and this zone remains open both down dip and along strike.

“Drilling adjacent to the historical Jinkas pit has intersected extensions of the White Dam and Jackson Resources which will add Resource ounces to the KGP.

“RC drilling program at nearby regional targets including Burong and Jinkas North have been completed with results anticipated to be released to the market in the coming weeks.

“These areas are located within five kilometres of the main Resource and have the potential to add to the current 1.2 million-ounce Resource.”





Peel Mining Substantially Upgrades Southern Nights Resource

THE DRILL SERGEANT: Peel Mining (ASX: PEX) released an updated Indicated & Inferred Mineral Resource Estimate (MRE) for the company’s 100 per cent-owned Wagga Tank and Southern Nights deposits located in the Cobar Basin of western New South Wales.

The company explained the MRE is reported within mineable shapes generated at $80 per tonne net smelter return (NSR) with a minimum mining width of three metres and includes internal dilution.

Peel Mining reported an Indicated and Inferred MRE of:

4.95 million tonnes at 5 per cent zinc, 2 per cent lead, 78 grams per tonne silver, 0.3 per cent copper, and 0.4g/t gold within $80/t NSR mineable shapes.

This represent a 31.5 per cent increase in Indicated and Inferred resource tonnage from the company’s previous MRE.

Of note, the Indicated MRE increased to 2.95 million tonnes at 5.73 per cent zinc, 2.33 per cent lead, 86g/t silver, 0.23 per cent copper, 0.36g/t gold (within $80/t NSR mineable shapes).

This represents a 161 per cent increase in Indicated resource tonnage from the previous MRE.

Peel Mining said the updated MRE provides a solid foundation, from which it can immediately commence scoping studies to advance the potential development scenarios at Wagga Tank-Southern Nights.

The company already has associated activities underway, including ongoing metallurgical testwork, geological/structural studies, pre-development environmental baseline work, and drill planning targeting potential extensions to mineralisation.

Also worth noting, is that the Wagga Tank-Southern Nights mineral system remains open along strike and down dip.

“This resource upgrade is another important step for Peel as it continues towards unlocking the next mine development opportunity within the Cobar Basin,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“The advancement of the Southern Nights-Wagga Tank mineral resource utilising contemporary metal pricing, marketing and metallurgical assumptions, presented as a Net Smelter Return, as well as underground mining assumptions is an important move towards our goal.

“Encouragingly, the resource quality has improved significantly with nearly three million tonnes reporting to the Indicated classification.

“We will now move to scope out the project to better understand the potential development opportunities available.”





Kin Mining Getting Good Enjoyment from Comedy King

THE DRILL SERGEANT: Kin Mining (ASX: KIN) received final assay results from one-metre split samples at the company’s Cardinia gold project (CGP) in Western Australia.

Kin Mining collected the samples from the Comedy King target, generated from an aircore (AC) drilling program completed in December 2019.

The company explained the 1m samples were collected from 4m composite samples greater than 0.1g/t gold, to allow for better definition of the mineralised zones.

“Our initial interpretation at Comedy King based on the four-metres composite assays was a series of high-grade, narrow mineralised zones striking east-west and dipping to the north,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The one-metre split sampling has supported this view and helped the geological teams interpret the mineralisation more clearly.

“At Comedy King, several quartz sulphide veins exist within broader, lower grade alteration halo mineralisation.

“These veins appear to be initiated from north east trending faults associated with the rapidly expanding Lewis Fault system.

“The Lewis Fault system is intimately associated with mineralisation at the Lewis, Lewis East, Nevertire, Black Chief and now the Comedy King deposits.

“These deposits are spread over an area covering approximately four kilometres by two kilometres and represent a cluster of deposits displaying both high-grade vein and lode style mineralisation and lower grade alteration halo mineralisation, all with a common geological control.

“In addition to the primary mineralisation at Comedy King, aircore drilling has also intersected shallow high-grade mineralisation associated with an interpreted alluvial channel.

“Alluvial channels in the area are extensive and represent an additional near surface exploration target for the company.”





Cassini Resources Extends Yarawindah Mineralisation

THE DRILL SERGEANT: Cassini Resources (ASX: CZI) has completed its first diamond drilling program at the company’s 80 per cent-owned Yarawindah Brook project in Western Australia.

The project is considered by Cassini to be prospective for nickel, copper, cobalt and platinum group elements (PGE’s).

Cassini Resources conducted the drilling to target multiple electromagnetic (EM) conductors it had identified following airborne and ground EM surveys in 2018.

The latest drilling returned encouraging nickel and copper results from a total of nine diamond holes – YAD0004 through to YAD0006 at the AN02 conductor, now re-named the Avena prospect, and YAD0003, at the Brassica prospect.

Drilling at Avena predominantly intersected broad zones of shallow, disseminated nickel and copper sulphides, and locally contain high-grade, massive nickel sulphides.

Cassini declared it was encouraged by a massive sulphide intercept of:

0.12 metres at 5.97 per cent nickel, 0.75 per cent copper, 0.39 per cent cobalt and 2.66 grams per tonne PGE from 84.3m.

“Nickel tenor of this intercept is representative of the historical massive sulphide intersections at Yarawindah, which are the Company’s primary targets,” Cassini Resources said in its ASX announcement.

“Although thin, this interval is interpreted to represent a structurally remobilised massive sulphide from a proximal source.

The company was also heartened by an encounter from:

5.05m at 0.69 per cent nickel, 1.17 per cent copper and 0.06 per cent cobalt from 57.95m.

“These intercepts range from 50m to 72m vertically below surface, well within open-pit mining depths,” Cassini observed.

At the Brassica prospect, YAD0003 intersected a 70m zone of metagabbro, similar to previous drilling results, with thick zones of disseminated and locally semi-massive zones of barren iron sulphides (pyrrhotite) and trace copper sulphides (chalcopyrite) reflecting low tenor nickel and copper sulphide mineralisation.

“The results to date at the Avena and Brassica prospects support the company’s exploration model that the Yarawindah project has potential to host multiple nickel-copper magmatic sulphide deposits,” the company said.