Western Areas Awards new Forrestania Offtake Contracts

THE BOURSE WHISPERER: Western Areas (ASX: WSA) has inked new offtake contracts with BHP Billiton Nickel West Pty Ltd and Jinchuan Co. Ltd for the company’s high-grade Forrestania Nickel Operation concentrate product.

Western Areas said the new contracts follow completion of a highly competitive tender process that has resulted in improved commercial terms compared to current offtake agreements.

“The company is very pleased with the execution of the new agreements that extend our long and mutually beneficial relationship with Nickel West and reintroduces Jinchuan as an offtake customer following completion of the Tsingshan contract as at 31 January 2020,” Western Areas managing director Dan Lougher said in the company’s announcement to the Australian Securities Exchange.

“It is notable that both of our offtake customers are involved in the downstream operation of nickel smelters.

“Western Areas firmly believes that the smelting of concentrates is a key process to continue to feed both the emerging Electric Vehicle (EV) battery market, via nickel sulphate, and the traditional stainless steel market.”

The Nickel West contract is a new agreement, rather than an extension of the previous arrangement that completes on 31 January 2020.

The key terms of the new contract include a contract period of three years from 1 February 2020 or until completion of the aggregate quantity of 10,000 tonnes of nickel contained in concentrate per annum with a 30,000 tonne, aggregate limit.

Key terms for the Jinchuan contract include a contract period of two years from 1 February 2020 or until completion of the aggregate quantity of 10,000 tonnes of nickel contained in concentrate per annum with a 20,000 tonne, aggregate limit.

The contract can be extended, by mutual agreement, for a further twelve-month period at an aggregate nickel quantity to be agreed between Western Areas and Jinchuan.

Jinchuan is the largest nickel matte and cathode producer in China and Western Areas believes that aligning itself with a China-based producer of Jinchuan’s calibre is strategically important as the market for higher value products continues to evolve.

 

Web: www.westernareas.com.au

 

Pantoro Continues Scotia Run

THE DRILL SERGEANT: Pantoro Limited (ASX: PNR) released initial drilling results from the Scotia deposit, located at the company’s 50 per cent-owned Norseman project in Western Australia.

Pantoro commenced drilling at Scotia in October 2019 and has completed around 27 holes of the planed RC and Diamond drilling program to date.

The Scotia gold deposit is located approximately 25 kilometres south of Norseman and is part of the Scotia Mining Centre that also includes the Taurus, Lady Eleanor and Free Gift deposits that combine for a Mineral Resource estimated to contain approximately 2.43 million tonnes at 5.3 grams per tonne gold for 413,000 ounces of gold.

Scotia is the fourth major mining centre tested by Pantoro at Norseman.

All areas the company has drilled to date have returned excellent results in line with expectations.

Drilling in and around the existing Scotia Mineral Resource has confirmed continuity of mineralisation with intercepts to date including:

4 metres at 44.46 grams per tonne gold , including 1m at 115g/t gold ;
4m at 5.51g/t gold;
2m at 5.33g/t gold;
1m at 7.95g/t gold;
5m at 6.3g/t gold;
1m at 16.6g/t gold;
3m at 4.38g/t gold; and
4m at 3.87g/t gold.

Pantoro is drilling at Scotia targeting infill and extension of the current 413,000-ounce Mineral Resource to approximately 150 metres below surface.

The company’s objective is to define both open pit and future underground mining potential.

Results to the north of the current pit and underground workings have been encouraging and will be followed up in the remainder of the planned program.

“These excellent results come from the fourth deposit that we have drilled at Norseman,” Pantoro managing director Paul Cmrlec said in the company’s announcement to the Australian Securities Exchange.

“Each deposit drilled to date has provided outcomes in line with or exceeding Pantoro’s expectation, demonstrating the outstanding quality of the project.”

 

Email: admin@pantoro.com.au

Web: www.pantoro.com.au

 

Corazon Mining Doubles Down on Lynn Lake Drill Results

THE DRILL SERGEANT: Corazon Mining (ASX: CZN) released further assay results from the latest phase of drilling to be completed at the company’s 100 per cent-owned Lynn Lake nickel-copper-cobalt sulphide project in Manitoba, Canada.

Corazon Mining has now taken receipt of assay results for all priority samples from the drilling program completed in December 2019 that has revealed multiple zones of broad, near-surface high-grade mineralisation in areas surrounding previously mined deposits within the Lynn Lake Mining Centre.

The company believes these results have greatly enhanced the potential to expand the project’s already substantial existing resource base.

Drilling targeted two historical deposits – the A Orebody and E Orebody – with seven holes of diamond core drilling completed.

Both the A Orebody and E Orebody areas have potential extensions to known mineralisation that have not been historically tested with drilling, which the company considers to provide resource expansion potential and, subsequently, will be the subject of ongoing targeted exploration and drilling.

There are multiple other areas within the Mining Centre, also yet to be drill tested, that may also have the potential for near surface mineralisation surrounding historical underground mining operations.

This latest phase of drilling tested near surface expressions of mined areas that operated continuously for 24 years at an average grade of 1.02 per cent nickel and 0.54 per cent copper.

Highlights included:

A Orebody

37.8 metres at 1.68 per cent nickel, 0.67 per cent copper, 0.05 per cent cobalt from 10m, including 22.6m at 2.3 per cent nickel, 0.82 per cent copper, 0.068 per cent cobalt from 24.4m; and

E Orebody

4.5m at 1.17 per cent nickel, 0.22 per cent copper, 0.029 per cent cobalt from 25m; and
4.1m at 2.09 per cent nickel, 0.57 per cent copper, 0.073 per cent cobalt from 26.9m.

“Historical mining at Lynn Lake focused largely on underground operations and the lack of near-surface exploration around the previously mined deposits has provided a substantial opportunity for Corazon to expand what is already a significant nickel sulphide resource base,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.

“Our targeted drilling was designed to identify haloes of disseminated mineralisation around the mined deposits, and the results have been highly successful with the exceptional grades returned significantly exceeding expectations.

“In addition, the results have validated our targeting processes and paves the way for our ongoing, targeted exploration and drilling at Lynn Lake.”

 

Email: info@corazon.com.au

Web: www.corazon.com.au

 

THE DAILY ROADHOUSE

 

Blackstone Minerals Hits Big Numbers at King Cobra Discovery

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) announced impressive drilling intersections from the King Cobra discovery at the company’s Ta Khoa nickel project in Northern Vietnam.

Red 5 Continues to Advance King of the Hill Final Feasibility Study

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) reported continued progress with the Final Feasibility Study (FFS) for the proposed stand-alone integrated bulk open pit and underground mining and processing operation at the company’s King of the Hills (KOTH) gold project in Western Australia.

PolarX Identifies Mineralised Alaskan Strike Potential

THE DRILL SERGEANT: PolarX Limited (ASX: PXX) has identified potential for approx. 600 metres of mineralised strike length at the Zackly East Skarn within the company’s Alaska Range project.

Alloy Resources Reports on RTX JV Activity

THE DRILL SERGEANT: Alloy Resources (ASX: AYR) reported on recent progress at the company’s farm-in agreement with Rio Tinto Exploration Pty Limited (RTX), under which RTX is earning an initial 70 per cent interest in E45/4807 in the Paterson Province of Western Australia.

 

Red 5 Continues to Advance King of the Hill Final Feasibility Study

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) reported continued progress with the Final Feasibility Study (FFS) for the proposed stand-alone integrated bulk open pit and underground mining and processing operation at the company’s King of the Hills (KOTH) gold project in Western Australia.

Red 5 has had multiple work streams progressed with work on stream to meet the overall delivery schedule on track for completion in the September 2020 Quarter.

The underground component of the KOTH resource of 17.5 million tonnes at 2 grams per tonne gold for 1.11 million ounces of contained gold has previously been identified as a key underground mine extension opportunity for the project.

AS such, three diamond drill rigs are currently progressively exploring multiple extensional opportunities to the existing underground operations.

The company has been encouraged by interim and geological modelling that provide increasing confidence in a potential uplift to the existing Resource.

In-fill RC drilling of the western crest of the KOTH open pit has been completed with the aim of evaluating the potential for Resource extension and assist further pit optimisation works.

In-fill drilling at the prospective Cerebus-Eclipse and Centauri near-mine satellite deposits to the north-west of the KOTH open pit is continuing and remains on track for completion in January 2020.

Geotechnical core drilling and test pitting programs have been completed in the open pit and for key project infrastructure, such as the process plant and village accommodation.

Geotechnical, hydrogeological and metallurgical diamond drilling at the Cerebus-Eclipse, Centauri and Rainbow satellite deposits is scheduled to commence in late January 2020.

Field works have largely been completed for flora, fauna, archaeology and anthropology surveys.

“Geotechnical, resource extension and resource in-fill drilling programs are in full swing again following a short break for the festive season,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“We expect to receive further results from underground extensional drilling and ongoing assaying of previously un-assayed historical drill core from KOTH, which will be progressively incorporated into an updated KOTH geological model.

“Infrastructure design, metallurgical testwork design and permitting, approvals and stakeholder engagement programs are also moving forward well as planned.

“This is a very exciting time for Red 5, as we work towards the delivery of a Final Feasibility Study for a major new stand-alone gold project at King of the Hills later this year, laying the foundations for Red 5 to take its next major growth step as a leading Australian gold producer.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

PolarX Identifies Mineralised Alaskan Strike Potential

THE DRILL SERGEANT: PolarX Limited (ASX: PXX) has identified potential for approx. 600 metres of mineralised strike length at the Zackly East Skarn within the company’s Alaska Range project.

PolarX determined the potential via trenching, mapping and sampling and results from diamond drill holes undertaken in 2018 that intersected thick copper and gold mineralisation commencing from near surface at Zackly East, returning:

ZX‐18020
55 metres at 2.8 grams per tonne gold and 0.6 per cent copper; and

ZX‐18024
47m at 3.1g/t gold and 0.6 per cent copper.

These early diamond drill holes discovered the mineralised Zackly East Skarn in 2018, which dips gently to the north and is mineralised over much thicker zones than the previously known subvertical dipping Main Skarn.

The Zackly East Skarn host unit was originally limestone, but was emplaced by way of thrust faulting and now sits in the hanging wall above the thrust fault.

The Main Skarn of the Alaska Range project lies below the thrust fault in the footwall.

The Main Skarn and East Skarn lie within a structural corridor that runs from the Mars porphyry discovery through Zackly and to the northern edge of the Saturn porphyry target and contains many untested magnetic and structural targets that the company considers could have the potential to host multiple additional skarn deposits, as well as larger porphyry copper deposits.

“PolarX intends to pursue the porphyry targets at Mars and Saturn with funding to be provided via an earn‐in joint venture arrangement,” PolarX said in its ASX announcement.

“Discussions have commenced with multiple interested parties.

“The company will continue to fund its own resource expansion drilling at Zackly and Zackly East.”

 

Web: www.polarx.com.au

 

Blackstone Minerals Hits Big Numbers at King Cobra Discovery

THE DRILL SERGEANT: Blackstone Minerals (ASX: BSX) announced impressive drilling intersections from the King Cobra discovery at the company’s Ta Khoa nickel project in Northern Vietnam.

Blackstone Minerals’ King Cobra discovery is a new, near surface, high-grade zone of nickel sulphide bearing semi-massive sulphide veins (SMSV) at the Ta Khoa project.

The King Cobra discovery includes the first-ever intersection of massive sulphide vein and breccia styles of sulphide mineralisation within the Ban Phuc intrusion and may provide vectors towards the high grade ‘feeder zone’ mineralisation.

Blackstone’s latest drilling at the King Cobra discovery has intersected:

BP19-29
60 metres at 1.3 per cent nickel from 32m, including 13.9m at 2.25 per cent nickel from 49m from the King Cobra Zone, and 142m at 0.41 per cent nickel, including 11.9m at 1.09 per cent nickel from the underlying previously unnamed Ban Duoi Zone (BDZ).

Blackstone declared this to be, “the most significant downhole intersections seen to date at the Ta Khoa nickel project”.

The result has led the company to interpret its earlier intersection of…

BP19-03
45m at 1.2 per cent nickel from 56m

…as an earlier intersection of King Cobra mineralisation.

Blackstone said its drilling efforts have now intersected the King Cobra (KCZ) discovery zone over 200 metres of strike length, with the KCZ interpreted to be open along strike to the north west and south east and down dip to the north east.

Blackstone will continue its aggressive drilling program at Ban Phuc with four drill rigs testing the disseminated mineralisation (DSS), including two rigs on priority step-out drilling testing for potential expansions to the known Ban Phuc DSS orebody and the down dip feeder zone target at the King Cobra target zone.

“Blackstone is pleased to announce the King Cobra discovery hole as our most significant drillhole to date at the Ta Khoa nickel project,” Blackstone Mineral managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“The King Cobra discovery continues to grow, as does our understanding of the geology of the Ban Phuc deposit.

“The King Cobra discovery is shaping up to be a high grade, near surface, large scale disseminated nickel-PGE zone that has potential to deliver a highly economic starter pit at Ta Khoa.”

 

Email: admin@blackstoneminerals.com.au

Web: www.blackstoneminerals.com.au

 

Alloy Resources Reports on RTX JV Activity

THE DRILL SERGEANT: Alloy Resources (ASX: AYR) reported on recent progress at the company’s farm-in agreement with Rio Tinto Exploration Pty Limited (RTX), under which RTX is earning an initial 70 per cent interest in E45/4807 in the Paterson Province of Western Australia.

Alloy Resources informed the market that RTX has completed earthworks for the camp site, a major portion of the access tracks and seven of eight drill pads for a proposed initial reverse circulation (RC) drilling program.

The company indicated the drilling program is now expected to be undertaken in April-May 2020, subject to weather and the scheduling of RTX’s broader Paterson program activities and related drill rig movements.

“As previously announced, the drilling program is planned to comprise a minimum of eight reverse circulation (RC) drill holes of up to 250 metres depth across six copper-gold target areas, with further holes to possibly be drilled subject to results,” Alloy Resources said in its ASX announcement.

“This initial testing is intended to guide follow up exploration and improve target generation by confirming basement depths and lithologies.

“The depth of cover for the initial targets is currently estimated to be 30 to 100 metres.”

RTX are actively exploring the Paterson region following its discovery of the Winu copper-gold deposit located 50 kilometres north of the Joint Venture.

RTX holds extensive exploration tenure, which adjoins with the JV tenement and extends to Winu.

 

Email: info@alloyres.com

Web: www.alloyres.com

 

Magnetic Resources Identifies New Horizons and Feeder Zones at Hawks Nest 9

THE DRILL SERGEANT: Magnetic Resources (ASX: MAU) reported the latest drilling results from a comprehensive 465 RC-hole program completed at the company’s Hawks Nest prospect, located near Laverton in Western Australia.

Magnetic Resources said the drilling carried out in the central part of Hawks Nest 9 (HN9) demonstrated there to be a distinct bend in the shear zone from SSE to SSW as well as a considerable thickening of the mineralised zone within an altered silicified porphyry.

This porphyry has been delineated over a 400-metre strike length, is open and plunges shallowly to the NNE, and greatly thickens from commonly being 2m to 5m in width up to 10m to 57m.

This newly identified silicified porphyry crosscuts the NNW-trending near-surface flat-dipping mineralisation.

The company has interpreted this may represent a feeder zone of the entire three kilometres-long HN9 shallow-dipping sequence.

Some of the thicker gold-mineralised zones encountered within this porphyry include:

MHNRC497
28 metres at 0.645 grams per tonne gold from 4m;

MHNRC541
57m at 0.5g/t gold from 13m including 27m at 0.69g/t gold from 43m;

MHNRC179
14m at 0.7g/t gold from 25m;

MHNRC211
11m at 1.82g/t gold from 18m;

RFR-31
12m at 1.96g/t gold from 16m in hole; and

MHNRC179
14m at 0.7g/t gold from 25m.

Magnetic believes the newly discovered multiple shallow dipping extensive zones at HN9 could be a potential indicator for deeper mineralisation because all the numerous nearby large deposits in the region including Wallaby (7Moz), Sunrise Dam (10Moz) and Jupiter (1.3Moz) have persistent internal shallow-dipping mineralised lodes that are often called shear zones.

The company also noted that many discoveries in recent times have been made by drilling below 100m because historical drilling was far too shallow.

At HN9 the average hole depth is only 43m providing plenty of scope for upside potential.

“With the Australian gold price at record levels of $2,249 the HN9 project being only 15 kilometres northwest of the Granny Smith operations owned by Gold Fields Australia Pty Ltd and only 10 kilometres north east of the Jupiter operations owned by Dacian Gold Ltd at Laverton in Western Australia, is shaping up and has potential for a large-scale shallow deposit,” Magnetic Resources managing director George Sakalidis said in the company’s announcement to the Australian Securities Exchange.

“This significant three-kilometre mineralised zone is coherent and is not closed off to the north and at depth and is so far defined by 465 RC holes totalling 20,484 metres.

“Also, the discovery of a thick mineralised intrusive porphyry feeder zone up to 57 metres thick and the multiple bands of silicified porphyry from deeper drilling, similar to the Wallaby and Jupiter deposits, is a breakthrough and will be further investigated with an infill deeper drill program planned after assay results for the eight deeper holes are received shortly.”

 

Web: www.magres.com.au

 

Hot Chili (ASX: HCH) Explorers 2020

THE CONFERENCE CALLER: Hot Chili received its Christmas presents early in 2019 when it encountered, what the company described as, “one of the best global drill results of 2019”.

Hot Chili hit the intersection at the company’s Cortadera copper-gold porphyry discovery in Chile that returned:

CRP0020D
972 metres at 0.5 per cent copper and 0.2 grams per tonne gold from surface.

The intersection included the widest zone of high-grade the company had recorded at Cortadera of:

412m at 0.7 per cent copper and 0.3g/t gold from 436m.

“Cortadera is continuing to outperform expectations the company had set following our announcement of a deal to acquire the privately-held discovery in February this year,” Hot Chili managing director Christian Easterday said.

“We have recorded many stand-out drill results this year, but this 972 metres drill result from surface firmly announces Cortadera’s arrival on the global copper stage.

“In little over nine months we have transformed the growth trajectory for our company and outlined what could become the world’s next Tier-1 copper-gold discovery.”

Cortadera is a major copper-gold porphyry discovery located along the Chilean coastal range, 14 kilometres from the company’s large-scale Productora copper development and adjacent to its high-grade El Fuego satellite copper projects.

Hot Chili acquired 100 per cent ownership of Cortadera in February 2019, after which it quickly commenced a confirmation drilling program that confirmed and extended areas of surface enrichment and wide, higher-grade, copper-gold sulphide mineralisation at depth, which had not previously been closed off by 23,000m of historical diamond drilling.

A key to Hot Chili’s initial success at Cortadera was the discovery and definition of a large and robust high-grade core to the largest of Cortadera’s four porphyry centres – Cuerpo 3.

The average grade of drill intersections recorded by Hot Chili within the high-grade zone of Cuerpo 3 ranges between 0.7 to 0.9 per cent copper and 0.3 to 0.4g/t gold.

The combined copper-gold drill intersection grade of the Cuerpo 3 high-grade zone compares well to the reserve grade of other large-tonnage underground mines.

Hot Chili followed up the above intersection with further drill results that outlined a second large source of bulk tonnage, high-grade copper and gold at the Cortadera discovery.

The results demonstrated that the drilling being carried out is continuing to grow the discovery, and just as importantly, is also providing strong encouragement for both open pit and underground, high-grade, development options.

The company kept both diamond and Reverse Circulation (RC) drill rigs spinning, the latter testing the extent of shallow chalcocite enrichment zones across three of the four Cortadera porphyry centres it has discovered to date.

Thirteen shallow Reverse Circulation (RC) drill holes were completed, from which results were available for seven across Cuerpo 2, the second largest porphyry at Cortadera.

These results confirmed and extended a bulk tonnage zone of high-grade copper and gold from surface.

The highlight drill result came from hole CRP0021 that recorded:

80m at 0.8 per cent copper and 0.3g/t gold from surface, including a high-grade chalcocite zone of 26m at 1.7 per cent copper and 0.7g/t gold from a down-hole depth of 54m.

High-grade zones related to chalcocite enrichment were drill confirmed at Cuerpo 1, 2 and 4, from surface and from shallow depth, with drill intersection copper grades ranging between 0.7 to 1.6 per cent and gold grades ranging between 0.3 to 0.7g/t gold.

The results achived to date show Hot Chili has a project in Cortadera that is shaping up as a globally important standalone copper-gold project, which can utilise the Productora project resources, while leveraging from a central processing and combined infrastructure approach along the coastline of Chile.

The company believes its recent discovery and addition of a higher-grade bulk tonnage underground development opportunity at Cortadera places it in a unique position amongst potential large-scale global copper-gold developments.

Hot Chili has received regulatory approval provides access to expand its phase 2 drilling program, which is expected to include first drill testing of two large growth targets identified close to the Cortadera discovery window: Cuerpo 3 North and Cortadera North.

Further results from the shallow RC drill program and expansion diamond drill program are anticipated for release in the New Year.

Hot Chili is well positioned to capitalise on the numerous world-class drill results that have established Cortadera as one the stand-out global copper-gold discoveries of 2019.

Drilling activities are set to accelerate in 2020 toward a first resource estimate with hopes of advancing various future funding discussions with several large domestic and international groups.

 

Email: admin@hotchili.com.au
Web: www.hotchili.com.au
Directors: Murray Black, Christian Easterday, Dr Allan Trench, Michael Anderson, Roberto de Andraca Adriasola, Randall Nickson