Battery Metals Raises 20M To Fast Track Graphite Projects

THE BOURSE WHISPERER: Battery Minerals (ASX: BAT) has received commitments from institutional, sophisticated and professional investors to raise $20 million.

Battery Metals said the Capital Raising was oversubscribed, explaining it comprises of $19.5 million by way of placement and $500,000 in commitments under a drilling-for-equity arrangement.

The company received commitments from its drilling contractor, Mitchell Group Holdings, to provide drilling services in return for equity, on the same terms as the placement.

Under the Placement, Battery Metals will issue approximately 325 million shares at six cents per share in two tranches to professional, institutional and sophisticated investors.

Each New Share will be issued with one free option which will be exercisable at ten cents on or before 31 July 2018.

“This capital raising is a key milestone in the Company’s strategy to become a graphite supplier to the lithium battery industry Battery Minerals executive chairman David Flanagan said in the company’s announcement to the Australian Securities Exchange.

“The overwhelming support we have received from investors around the world reflects the quality of our project and its outstanding potential to tap into the lithium battery market.

“We have received a huge response to our strategy to develop a project with low capital costs, limited funding requirements and a short lead-time to production.

“This approach will enable us to maximise financial returns and minimise risks and time delays, enabling us to capitalise on the huge opportunity unfolding in the energy sector as quickly and efficiently as possible.”

Battery Minerals has commenced work at its Montepuez and Balama graphite projects in Mozambique.

At Montepuez, detailed grade control drilling is underway to underpin daily mining plans ahead of the anticipated grant of a mining lease, which the company expects later this year.

Final approvals are due in the March Quarter 2018 to facilitate the scheduled start of construction in April 2018.

Battery Metals indicated it is on track to commence mine commissioning in the December Quarter, 2018 with first graphite concentrate exports scheduled for the March Quarter, 2019.

The company is also working to fast-track a Definitive Feasibility Study (DFS) at its Balama Central project, where a recently completed Concept Study highlighted the project’s high grade nature and strong fundamentals.

Battery Metals has interpreted the results to suggest the project has potential to, in time, become a world-leading graphite mine.

Battery Metals aims to complete the Balama DFS in mid-2018.



Rox Resources Encounters Thick Disseminated Nickel Sulphides at Olympia North

THE DRILL SERGEANT: Rox Resources (ASX: RXL) announced the intersection of thick disseminated nickel sulphides from RC drilling recently completed at the company’s Collurabbie project north of Laverton in Western Australia.

Rox Resources carried out the four-hole drilling program to follow-up strong nickel-copper-platinum-palladium aircore drilling anomalies it had recently defined at the Olympia North and Ortus prospects.

Rox declared the new results confirm the presence of nickel sulphides at Olympia North and that the ultramafic belt there is fertile for nickel sulphide mineralisation.

The company has traced this horizon for over 15 kilometres along strike and its analysis shows very little previous exploration along it.

Thick intersections of disseminated nickel sulphides were intersected, including:

32 metres at 0.48 per cent nickel, 0.28 per cent copper, 0.03 per cent cobalt, 218ppb platinum, 347ppb palladium from 64m; and

5m at 0.63 per cent nickel, 0.3 per cent copper, 0.03 per cent cobalt, 239ppb platinum, 422ppb palladium from 76m.

A third hole at Olympia North encountered a porphyry intrusion and the nickel sulphide interval was stoped out.

The hole drilled at the Ortus prospect did not intersect any nickel sulphides.

“We are encouraged by the results from Olympia North because they confirm that a fertile ultramafic belt for nickel sulphides exists, extending north from our Olympia deposit through Olympia North and beyond for up to 15 kilometres,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.”



Pioneer Resources Drilling Cobalt Targets at Golden Ridge

THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) has started a program of reverse circulation (RC) drilling at the company’s 100 per cent-owned Golden Ridge cobalt project, located on the Blair Dome in Western Australia’s Eastern Goldfields.

Pioneer Resources will carry out approximately 30 RC holes for 2,000 metres, however the company indicated additional holes may be drilled should field observations be positive.

The drill samples will be used for bench-scale test work which will focus on the hydrometallurgical extraction of cobalt.

“The drilling program will take approximately two weeks to complete and assays are expected to be to hand by the end of January 2018,” Pioneer Resources said in its ASX announcement.

Pioneer said composite samples of cobalt mineralisation encountered by the drilling will be used for first pass extraction test work.

The company noted the current number of alternative metallurgical processes being developed to treat cobalt and nickel laterite ores.

The targets have been determined from a historical summary of cobalt results Pioneer has established from drill holes completed since 1978, including the GRB-series RAB holes and GRA-series aircore holes it drilled between 2004 and 2015.

“A detailed review of the Golden Ridge drilling database specifically looking for cobalt mineralisation within the project has identified multiple, broad, high-grade zones of high-grade cobalt mineralisation,” Pioneer said.

“To date, the study has identified 11 separate prospects with significant cobalt deposited in the weathered rock mantle (lateritic cobalt).

“The tenor of cobalt values are at least the equivalent of other cobalt-laterites in the Kalgoorlie mineral district.

“The ‘reconnaissance’ drilling completed between 1978 and 2015 demonstrates the presence of widespread cobalt mineralisation, and each target has significant exploration upside to identify extensions to the indicated mineralisation deposits as cobalt-specific drilling proceeds.”



Intermin Resources Announces Evolution Drilling at Binduli

THE DRILL SERGEANT: Intermin Resources (ASX: IRC) announced commencement of reverse circulation (RC) drilling at the Binduli JV gold project, located just outside of Kalgoorlie-Boulder in Western Australia.

Intermin Resources said its Joint Venture partner Evolution Mining (ASX: EVN) has kicked off the 4,000 metre drilling program, comprising up to 39 angled RC holes to test for gold mineralisation within extensional veins related to shearing along contacts between brittle porphyritic intrusions with the White Flag intermediate volcanic sediments.

At the Coot and Crake prospects, 26 RC holes will be drilled to test for new mineralisation for approximately two kilometres north along strike from previously identified mineralisation.

At the Honey Eater prospect, four kilometres southwest of the company’s 100 per cent-owned Teal gold mine, 13 RC holes are planned to test new targets along strike from historic drill intercepts.

Intermin recently completed a re-interpretation of regional geophysical data, from which it has identified numerous high magnetic anomalies it has interpreted as felsic porphyry units that have intruded the White Flag volcanic sediments.

The company considers the prospect to be a highly prospective structural setting as it occurs at the intersection of an extensive northwest-southeast trending shear zone and a crosscutting late stage fault.

“It is extremely pleasing to see the latest drilling program underway testing the higher priority drill targets in the prospective Binduli region of the WA Goldfields,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“Very little modern exploration has been undertaken in this area and we look forward to working with the team at Evolution to unlock the potential of these projects for mutual benefit.”



Gold Road Resources Inks Gold Forward Sales Facility

THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) signed margin Gold Forward Sales with two major banks for up to 200,000 ounces of Australian dollar denominated forward sales.

Gold Road Resources explained the Hedging Facilities equate to 100,000 ounces of gold with each bank.

Gold Road has already locked in forward sales contracts for 25,000 ounces at an average forward price of $1,705 under the Hedging Facilities.

These latest Hedging Facilities are unsecured but require cash backing if the mark-to-market increases beyond $25 million with any bank and are due to expire at 30 June 2018, unless the parties agree to extend.

The company indicated, that part of a “prudent management of financial risks”, it is currently reviewing options for standby revolving credit or working capital facilities, which would also include discretionary gold hedging facilities.

Gold Road indicated the end of March 2018 quarter as a target for the finalisation of any Standby Facilities.

It stated its intention is to merge these early hedges into the Standby Facility, and to roll the delivery dates of the hedged ounces to meet forecast gold production dates.

“Construction at Gruyere is well under way to meet the forecast first gold production in 2019,” Gold Road Resources managing director Ian Murray said in the company’s announcement to the Australian Securities Exchange.

“With the gold price currently 14 per cent above the modelled Gruyere Feasibility Study gold price of $1,500 per ounce, we believe it is prudent to lock in a small portion of our forecasted production.

“The combination of these higher gold prices and the Standby Facilities lowers our risk and ensures we have flexibility in an environment which can be volatile.”



Azure Minerals Returns Positive Metallurgical Results from Oposura

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) reported positive results from preliminary metallurgical testwork carried out on sulphide mineralisation from the company’s Oposura project, located in the northern Mexican state of Sonora.

Azure Minerals explained the metallurgical testwork is being undertaken in parallel with an accelerated resource drill-out program for Oposura, where the company currently has three diamond rigs operating with the aim of delivering a maiden mineral resource estimate in March-April 2018.

Azure completed a series of flotation tests on a composite sample comprising sulphide mineralisation and waste rock taken from historical underground workings at Oposura.

The head grade of the composite sample was 7.2 per cent zinc, 5.9 per cent lead, 0.2 per cent copper and 43.9 grams per tonne silver, which the company considers to be similar to the grade of the overall mineralised horizon at Oposura.

The final test in this program comprised a full dual circuit lead-silver and zinc flotation test, replicating a typical dual circuit flotation plant utilised to treat lead, zinc and silver ores in order to produce separate lead-silver and zinc sulphide concentrates.

The results of the last test in the series for a lead-silver concentrate, demonstrated that a lead concentrate grade of between 53 per cent and 58 per cent could be achieved at lead recoveries respectively of between 82 per cent and 78 per cent.

The silver grade in the lead concentrate varied between 330g/t silver and 360g/t silver.

The test showed a zinc concentrate grade of between 52 per cent and 60 per cent could be achieved at zinc recoveries respectively of between 71 per cent and 68 per cent.

The company declared these to be very encouraging results for a preliminary testwork program.

“Metallurgical factors are always critical when evaluating project viability, and the earlier that this is achieved, the better,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“This high-level study was undertaken to ensure that the zinc, lead and silver mineralisation at Oposura could be extracted and concentrated into an easily saleable product.

“These very favourable results allow us to continue progressing development studies with confidence.”


St George Mining Trumpets Thick Nickel Copper Intersection At Stricklands

THE DRILL SERGEANT: St George Mining (ASX: SGQ) reported a nice, big thick intersection of nickel-copper sulphide mineralisation at the company’s Mt Alexander project in Western Australia.

St George Mining reported drill hole MAD71, undertaken at the Stricklands prospect, intersected 17 metres of nickel-copper sulphide mineralisation from 37.5m downhole comprising massive, matrix, stringer, brecciated and disseminated nickel sulphides.

The intersection included massive nickel-copper sulphides comprising a total of 10.1m of the overall intersection.

St George explained that MAD71 mineralisation is open to the north and west.

The hole was drilled within a large SAMSON EM anomaly, which largely remains untested.

A downhole EM (DHEM) survey will be completed in MAD71 later this week, after which further drilling at Stricklands will be prioritised following review of the survey data.

“The results in MAD71 are outstanding with thick widths of high grade mineralisation at shallow depths,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“This is very favourable for the economics of a potential mining operation at Mt Alexander.

“We have already established recurrent high-grade mineralisation over a 3.5 kilometres strike length in the Cathedrals Belt.

‘Now, with the exceptional intersection in MAD71, the confidence in the resource potential at Mt Alexander continues to build.”

St George completed a fixed loop EM (FLEM) survey earlier this year that identified the large EM anomaly at the Stricklands prospect.

The EM anomaly was tested previously by drill hole MAD49, which intersected a 42.5m thick ultramafic unit returning:

18.86m at 0.42 per cent nickel, 0.16 per cent copper, 0.02 per cent cobalt and 0.36 grams per tonne total PGEs from 31.8m; and

3.36m at 2.09 per cent nickel, 1.18 per cent copper, 0.09 per cent cobalt and 1.82g/t total PGEs from 50.66m.

MAD71 was drilled 15m to the north of MAD49 to test the continuity of the mineralised ultramafic and the potential for further nickel-copper mineralisation.

The hole displayed over 10 cumulative metres of massive nickel-copper sulphides with hand held XRF readings averaging 5.5 per cent nickel and 2.1 per cent copper.

St George indicated a conclusive determination of the nickel, copper, cobalt and PGE values of the sulphide mineralisation will be confirmed when laboratory assays are available.

The company considers the thickness of the cumulative ultramafic and the volume of nickel-copper sulphides returned to date to be supportive of further mineralisation being intercepted to the west and north of MAD71, where the strong associated SAMSON EM anomaly remains untested.





Stavely Minerals’ Confidence in Thursday’s Gossan Strengthens

THE DRILL SERGEANT: Stavely Minerals (ASX: SVY) released technical information, which it claims provides strong independent support for potential of a world-class porphyry copper-gold deposit at the company’s 100 per cent-owned Stavely copper project in western Victoria.

Stavely Minerals has recently completed RC and diamond drilling it says has not only produced impressive copper-gold assays, but has also provided further strong indications for a potential discovery.

The company said technical data collected from recent drilling at the Thursday’s Gossan porphyry copper-gold prospect has surpassed previously released copper and gold grades, leading the company to consider it may have a reasonable copper-gold discovery opportunity.

Results of recent drilling have been interpreted to be structurally controlled ‘leakage’ from a mineralised alkalic copper-gold porphyry at depth.

Independent datasets have highlighted a copper-gold porphyry target zone located beneath recent drilling.

These include: Short-wavelength absorption features for white micas highlight the shortest wavelengths in the hangingwall to the ‘leakage’ structure, indicating proximity to a porphyry source; and the occurrence of ‘acid-sulphate’ alteration minerals, including pyrophyllite and alunite together with observed vuggy silica textures the company considers characteristic of a high-level position in the mineralised system for the drilling to date.

“We have now amassed a significant body of independent technical work – augmented by independent technical experts who are individual leaders in the field of porphyry exploration – which provides strong support for the discovery potential and the targeting approach we have adopted at Thursday’s Gossan,” Stavely Minerals managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.

“We hope that by providing open access to the underlying experts’ reports and providing a downloadable 3D model with various switchable layers that can be interrogated and rotated, we can better share the reasons why we are so excited about the discovery opportunity ahead of us.

“To put it simply, we want everyone to be able to see what we are seeing.”

Stavely Minerals already has the next phase of follow-up diamond drilling at Thursday’s Gossan underway, with the first hole completed and the second in-progress.

The company has a total of up to eight holes planned as part of the current program, with drilling set to continue for the next few months.


Emmerson Resources Drilling in NSW and NT

THE DRILL SERGEANT: Emmerson Resources (ASX: ERM) recently completed a geophysical survey at the company’s Kadungle project in New South Wales.

Emmerson Resources informed the market it will be drilling on this project shortly, as well as at its Tennant Creek project in the Northern Territory.

Emmerson explained the Kadungle drilling is funded from a recent $2 million capital raising while the drilling at Tennant Creek is funded by the company’s partner, Evolution Mining (ASX: EVN) as part of a $15 million earn-in and JV where Emmerson is the manager and operator.

Emmerson completed an IP geophysical survey and alteration mapping at the Mt Leadley prospect within the Kadungle project, which it says confirms potential for shallow gold and deeper copper-gold mineralisation.

The activities have demonstrated the IP anomalies to be apparent across five consecutive lines, over one kilometre and within a previously identified zone of magnetite destruction.

Emmerson explained this was the first systematic exploration it has conducted on this project and although there has been previous but limited drilling, the company’s recent work has extended the project’s shallow gold and deeper copper-gold potential, as most of the anomalies remain untested.

At Tennant Creek a drilling campaign is currently underway focusing on extending previously discovered, high-grade copper and gold at the Gecko-Goanna project.

A previous deep co-funded drill hole by Emmerson/Evolution and the NT Geological survey intersected:

7 metres at 5.98 per cent copper, including 3m at 10.4 per cent copper from 123m down the hole.

A further zone of 3m at 4.75 per cent copper, including 1m at 10.6 per cent copper from 162m remains open in all directions and will be tested by eight RC drill holes.

In addition, a down plunge diamond hole at Goanna will test for deeper extensions beneath the previously intersected, high-grade copper and gold.

“The recent systematic exploration over the Kadungle project has produced further indications of a large shallow epithermal gold and deeper porphyry copper-gold system,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“Pleasingly the scale of the alteration and mineralisation over approximately two kilometres has been confirmed by the recent geophysical surveys and significantly, the better geophysical targets remain untested.

“Drilling will commence in late November and is focussed on establishing the extent and grade of both shallow epithermal gold and deeper porphyry copper-gold.”


Talisman Mining Completes RC Program At Sinclair Nickel Project

THE DRILL SERGEANT: Talisman Mining (ASX: TLM) completed a five-hole RC drill program at the company’s 100 per cent- owned Sinclair nickel project in Western Australia.

Talisman Mining explained the drilling was carried out to follow-up recent highly encouraging results at the Schmitz Well South and Delphi North prospects.

Four holes were undertaken at the Schmitz Well South prospect along strike and downdip from recent air-core (AC) drilling results at Schmitz Well South, which had returned:

1 metre at 0.68 per cent nickel from 27m down-hole; and

5m at 0.5 per cent nickel from 50m down-hole.

Although all four holes of the latest RC drilling program intersected a consistent, thick sequence of high-magnesian ultramafic rocks including minor disseminated sulphides, they did not return any significant nickel intersections.

“Talisman interprets the results to represent a possible channel flow environment with the potential to host accumulations of nickel sulphides,” Talisman Mining said in its ASX announcement.

“The thick ultramafic sequence overlies a basaltic footwall unit similar to that seen at the Sinclair Mine and other locations along the ultramafic belt.”

The fifth hole of the recent drilling program was carried out on the Delphi North prospect with the aim of providing the company with further understanding of the interpreted massive and disseminated nickel sulphide mineralisation near high conductance electromagnetic (EM) conductors it had identified in previous drilling.

The company reported the drill hole intersected the lower edge of previously modelled EM conductors and encountered massive and disseminated nickel sulphide mineralisation on the basal contact.

Assays results included:

2m at 1.95 per cent nickel from 198m down-hole, including 1m at 2.97 per cent nickel from 199m down-hole.

Talisman said the results from this hole had continued to highlight the potential for additional sulphide mineralisation at Delphi North where previous RC and diamond drilling has returned encouraging results.

“Talisman will continue to evaluate the potential of the Delphi North prospect to host economic nickel sulphide mineralisation and to develop exploration programs across the wider Sinclair nickel project as part of it’s staged, cost effective exploration strategy,” the company said.