Middle Island Complements Sandstone Resource Increase With Bonanza Drill Intercept

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THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) announced a new Mineral Resource for the Two Mile Hill deeps deposit within the company’s 100 per cent-owned Sandstone gold project in Western Australia.

Middle Island Resources declared a 500,000 ounces of gold Inferred Mineral Resource, which had been estimated by independent consultants, Mining Plus Pty Ltd, for the Two Mile Hill deeps gold deposit.

The company explained the new Mineral Resource is comprised of 480,000 ounces of gold associated with the tonalite-hosted portion of the deposit and 20,000 ounces of gold within the banded iron formation (BIF)-hosted element.

The addition of the Two Mile Hill deeps underground deposit brings the aggregate Sandstone project’s JORC Code 2012 Mineral Resources to 624,000 ounces of gold, representing a near five-fold increase in Mineral Resources that the company expects will expand once its current drilling campaign is complete.

“The addition of 500,000 ounces of formal Mineral Resources to the Sandstone project inventory is an extremely pleasing outcome that allows a far greater degree of transparency in valuing both the Sandstone gold project and the company,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“What is also pleasing is that, in the grade modelling applied by Mining Plus in resource estimation of the tonalite deeps deposit, the grade shells and distribution of gold mineralisation closely mirror MDI’s observations in logging the diamond core.

“Equally, Mining Plus’s application of contemporary mining and processing parameters and costs to confirm the deposit as a formal Mineral Resource, affirms the company’s view that this substantial deposit will ultimately provide a significant complement to our planned on-site gold production profile.

“The lower 200 metres (from 500m to 700m depth) of the prior Exploration Target also remains to be confirmed as a Mineral Resource via additional diamond drilling at a later date.

“The current aggressive exploration and resource definition campaign, collectively comprising some 17,300 metres of drilling, is now well advanced and there is a high likelihood that this campaign will significantly add to or upgrade additional open pit Mineral Resources prior to completing the updated pre-feasibility study.”

Middle Island also released drilling results that included a mouth-watering intercept of:

4 metres at 90.6 grams per tonne gold.

This was accompanied by a further intercept of:

8m at 3.35g/t gold.

The company reported both results from new and initial assay results achieved at the McClaren prospect, which comprises part of a recently completed Phase 1 RC drilling program at Sandstone.

Middle Island considers that, subject to resampling and infill drilling, there is a likelihood McClaren will prove to represent a new open pit deposit to complement the project’s mill recommissioning inventory.

McClaren is one of a cluster of three proximal gold prospects, also including McIntyre and Ridge, all of which are hosted within the southeast extension of the Shillington banded iron formation (BIF) package close to the company’s Sandstone gold processing plant.

“The bonanza grade intercept of 4 metres at 90.6 grams per tonne (almost 3oz/t) is an exciting early outcome from the Phase 1 RC drilling results at McClaren,” Yeates said.

“However, it is as much to do with the now apparent continuity of mineralisation in this and surrounding holes, that, subject to resampling and infill drilling, suggests the McClaren prospect may well prove to represent an additional new open pit deposit to supplement the planned recommissioning inventory.

“We eagerly await drilling results for the nearby McIntyre and Ridge prospects, and the current geological mapping, which may provide evidence that mineralisation associated with all three prospects may be linked.

“It is worth noting that McClaren and the adjacent two prospects all lie within granted Mining Lease M57/129 and only 2.5 kilometres from the company’s 100 per cent-owned, 600,000 tonnes per annum gold processing plant.

“I am equally encouraged by the initial drill intercepts within basalts in the northeast quadrant of the Two Mile Hill open pit deposit, which have the potential to extend and/or upgrade Sandstone’s existing Mineral Resources.

“Open pit optimisation studies indicate this quadrant of the deposit is very sensitive to Mineral Resource upgrades and/or additions within the basalt, potentially deepening the entire open pit by at least 20 metres, and possibly as much as 40 metres, thereby significantly increasing the overall open pit inventory.”

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

St George Mining Identifies Paterson Province Exploration Targets

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) has carried out an airborne magnetic survey over the company’s Paterson project, located within the Paterson Province of Western Australia.

St George Mining completed the survey in March with the aim of evaluating the structure and stratigraphic setting and identifying focus areas for further exploration.

The company has interpreted the high-resolution magnetic data from the survey to identify prominent magnetic features, which it has deemed to represent key stratigraphic units and granitic intrusions similar to what hosts other precious metals and base metals discoveries in the region.

“The results from the aeromagnetic survey have exceeded our expectations with multiple areas of interest identified across the 35 kilometres strike of prospective stratigraphy on our exploration ground,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We have begun planning for the 2020 drill program and applied for the Western Australian Government’s Exploration Incentive Scheme (EIS), which provides co-funding for exploration drilling up to a prescribed capped amount.

“Our Paterson project is shaping up as an outstanding opportunity to make a greenfields discovery.

“We are excited to be progressing exploration at the Paterson while we continue our principal exploration and development activities at our flagship Mt Alexander nickel-copper sulphide project.”

 

 

Web: www.stgeorgemining.com.au

 

Blackstone Minerals Welcomes $6.8M Sth Korean Investment

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THE BOURSE WHISPERER: Blackstone Minerals (ASX: BSX) bounced out of a self-imposed trading halt to announce $6.8 million investment in the company by South Korea-based battery and environment material company, EcoProa.

Blackstone Minerals has signed a binding share purchase agreement with EcoPro Co. Limited, who’s subsidiary company, EcoPro BM, is the world’s second largest and Korea’s largest nickel-rich cathode materials manufacturer.

The placement of 40 million fully paid ordinary shares at an issue price of $0.17 per share represents a healthy 62 per cent premium to Blackstone Minerals’ last traded price before it went into self-exile.

Blackstone Minerals said the binding agreement outlines an alliance structure under which it will work in partnership with EcoPro – by way of an additional investment via a Joint Venture Agreement – to develop a downstream processing facility in association with Blackstone Minerals’ Ta Khoa nickel-PGE project in northern Vietnam.

“We are pleased to announce this investment of $6.8 million at a premium which strengthens our alliance with EcoPro,” Blackstone Minerals managing director Scott Williamson said in the company’s announcement to the Australian Securities Exchange.

“Our Ta Khoa nickel-PGE project has the potential to deliver the critical raw materials required for EcoPro’s cathode manufacturing to meet the demand from the imminent electric vehicle (EV) revolution.

“We look forward to working towards the next stage of our partnership to develop the downstream processing facility in northern Vietnam.”

Blackstone Minerals has signalled its intent to deliver a maiden resource in Q3, focused initially on the disseminated sulphide (DSS) at Ban Phuc as it continues to investigate the potential to restart the existing Ban Phuc concentrator through focused exploration on both massive sulphide veins (MSV) and DSS deposits.

Blackstone has already commenced a scoping study on the downstream processing facility at Ta Khoa, which is anticipated to also to be announced in Q3.

This is expected to provide details for JV partners to formalise the next stage of investment.

Metallurgical testing is also underway on the Ban Phuc DSS deposit with an aim to develop a flow sheet for a product suitable for the lithium-ion battery industry.

Blackstone is also investigating the potential to develop downstream processing infrastructure in Vietnam to produce a downstream nickel and cobalt product to supply Asia’s growing lithium-ion battery industry.

The company’s purchase of the Ta Khoa nickel-PGE project came with an existing modern nickel mine that had been placed under care and maintenance since 2016 due to falling nickel prices.

Existing infrastructure includes an internationally designed 450,000 tonnes per annum processing plant.

Previous project owners focused mining and exploration efforts primarily on the MSV at Ban Phuc, where Blackstone plans to explore both MSV and DSS targets throughout the project, initially within a five kilometres radius of the existing processing facility.

EcoPro is a South Korea-based company engaged in the battery and environment material sector, principally in the manufacture and sale of secondary battery materials.

The company manufactures cathode active materials and precursors used for secondary batteries and provides environmental materials including sorbents and catalysts, chemical air filters, and greenhouse gas reduction devices, among others.

 

Email: admin@blackstoneminerals.com.au

Web: www.blackstoneminerals.com.au

 

Red 5 Completes Great Western Acquisition

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THE BOURSE WHISPERER: Red 5 Limited (ASX: RED), through its wholly-owned subsidiary, Darlot Mining Company Pty Ltd, has exercised an Option Agreement to acquire a 100 per cent-interest in Mining Lease M37/54.

The Mining Lease includes the Great Western gold deposit.

Red 5 has executed a Sale and Purchase Agreement (SPA) with the tenement holder, Terrain Minerals (ASX: TMX).

The company believes the acquisition supports its stated multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions in addition to aggressive exploration being undertaken as part of its Darlot Mining Hub Strategy.

The Great Western gold deposit is located 80 kilometres trucking distance south of Red 5’s Darlot processing plant, which is currently operating at one million tonnes per annum.

Red 5 considers the acquisition of the Great Western gold deposit and surrounding Mining Lease represented a high-quality strategic addition to its Mineral Resource base within trucking distance of the Darlot mill.

Terrain Minerals had previously completed a JORC 2012-compliant Mineral Resource estimate for the Great Western deposit totalling 709,000 tonnes at an average grade of 2.7 grasm per tonne gold for 62,000 ounces of contained gold.

“Having completed the due diligence drilling, we believe the Great Western deposit represents a highly prospective addition to our Darlot Mining Hub Strategy, with an existing 62,000 ounce Mineral Resource and exploration upside, particularly at depth,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“With an acquisition cost of $40 per Resource ounce, it boosts our Mineral Resource base within economic trucking distance of the Darlot mill.

“We will continue to seek further such opportunities – both through our exploration programs as well as through strategic acquisitions – with the aim of establishing five to ten years of Ore Reserves either at or within trucking distance of the Darlot mill as part of the company’s Darlot Mining Hub Strategy.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Peel Mining Continues Wirlong Drill Success

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THE DRILL SERGEANT: Peel Mining (ASX: PEX) recently completed a diamond drill program at the Wirlong prospect, south of Cobar in western New South Wales.

Wirlong is part of the company’s Cobar Superbasin project, A Joint Venture with JOGMEC (Japan Oil, Gas and Metals National Corporation).

Peel Mining’s latest drilling at Wirlong comprised three diamond drillholes that were designed to target the Wirlong Central zone to test a newly interpreted strike orientation of high-grade copper mineralisation returned from historic drillholes.

“Importantly, the newly returned high-grade copper intercepts support the revised structural model, offering excellent potential to define high-quality resources and add new mineralisation in the future,” Peel Mining said in its ASX announcement.

Results from the drilling include:

WLDD003
4.26 metres at 2.22 per cent copper, 7 grams per tonne silver from 380m, including 0.26m at 15.85 per cent copper, 58g/t silver from 384m; and
0.74m at 14.3 per cent copper, 66g/t silver from 396.2m.

WLDD004
1.15m at 7.71 per cent copper, 30g/t silver from 54.45m, including 0.25m at 30 per cent copper, 97g/t silver from 54.45m;
30m at 1.64 per cent copper, 8g/t silver from 305m, including 14m at 2.63 per cent copper, 12g/t silver from 320m; and
9.6m at 1.32 per cent copper, 2g/t silver from 436.4m.

WLDD005
5.9m at 3.19 per cent copper, 13g/t silver from 347.1m, including 0.65m at 18.65 per cent copper and 48g/t silver from 351.87m.

Peel Mining completed down-hole EM on drillholes WLDD003 and WLDD004, using a newly designed transmitter loop designed to couple with mineralisation based upon its revised structural model.

“A number of high-grade copper intercepts in the area intersect the modelled plate or are in close proximity to its position, further supporting the new structural models’ validity,” the company explained.

“The strike of mineralisation remains open to the southeast and northwest, and downdip.”

The company forecast future activities for Wirlong to include further infill and extensional drilling and geophysical surveying to assist with exploration drill targeting along with the completion of a maiden mineral resource estimate.

 

Email: info@peelmining.com.au

 

Web: www.peelmining.com.au

 

Twenty-Seven Co Identifies Its Name in New Conductors

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THE DRILL SERGEANT: TSC Limited (ASX: TSC) has identified 27 new conductors at the company’s Rover project in Western Australia.

TSC made the identifications via a recently-completed AEM survey over southern half of the Rover project.

The company explained that the vast majority of the conductors are situated along a 20-kilometres-long prospective gold strike that is part of the Maynard Hills greenstone belt.

TSC’s consultant geophysicist analysed the final data from the AEM survey, facilitated by New Resolution Geophysics’ advanced Xcite system.

From this an additional 14 AEM conductors have been identified, taking the total to a substantial 27 (up from 13 in early March).

Twenty-five conductors are located along a 15km stretch of the Maynard Hills greenstone belt, one conductor is located on the Cook Well greenstone belt and one is located in granitic rocks between the greenstone belts.

The bulk of the conductors have been grouped into five areas sequentially from north to south, including:

Two conductors west of Creasy 1 gold prospect;
Four conductors at Creasy 2 VMS prospect;
Five conductors near Creasy 3 prospect;
Five conductors covering a 600m strike at the newly discovered Red Bush prospect; and
Nine conductors southeast of Red Bush, with six coincident to a gold target identified in a geophysics study last year.

“Without doubt, the final AEM survey results have significantly surpassed expectations, with a substantial 27 conductors to follow up at the Rover project,” TSC CEO Ian Warlandsaid in the company’s announcement to the Australian Securities Exchange.

“To maintain exploration momentum, TSC has contracted a GEM crew to survey the most promising AEM conductors so that high-quality test-drill targets can be finalised for future drilling campaigns.

“With the second RC drilling program complete, TSC is now eagerly awaiting assays and GEM results which will determine next steps.”

 

Email: enquiries@twentysevenco.com.au

Web: www.twentysevenco.com.au

 

Rox Resources Encounters High-Grade Grace Intersections

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THE DRILL SERGEANT: Rox Resources (ASX: RXL), in conjunction with its joint venture partner Venus Metals Corporation (ASX: VMC) reported results from its early 2020 drilling program undertaken at the Youanmi project in Western Australia.

Rox Resources reported that recent drilling at Youanmi has defined a very high-grade zone of mineralisation (greater than 30 gram-metres) extending from surface, open to the north that lies within a broader wide zone of mineralisation.

Recent assays from drilling undertaken at the Grace prospect include:

RXRC151
7 metres at 54.6 grams per tonne gold from 8m;

RXRC152
1m at 29.7g/t gold from 23m;

RXRC153
6m at 5.7g/t gold from 24m;

RXRC154
4m at 4.5g/t gold from 9m, and 3m at 5.32g/t gold from 53m.

“The Grace prospect is emerging as an exciting high-grade deposit with one of the better recent intersections returned from hole RXRC151 being a spectacular 7 metres at 54.6 grams per tonne gold from 8 metres,” Rox Resources managing director Alex Passmore said in the company’s announcement to the Australian Securities Exchange.

“This newly discovered mineralisation has all the hallmarks needed to bring it into early production-it is close to surface, lies near to existing pits and sits within a granted mining lease which already has substantial infrastructure.”

 

Email: admin@roxresources.com.au

Web: www.roxresources.com.au

 

Neometals Completes Lithium Battery Recycling Pilot Testing

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THE BOURSE WHISPERER: Neometals (ASX: NMT) declared the completion of pilot plant test‐work on the company’s proprietary lithium‐ion battery (LIB) recycling technology a success.

Neometals said the pilot testing validated earlier bench scale assumptions with high recoveries of the targeted suite of cathode active elements and refined them into high purity chemicals for re‐use in the battery supply chain.

Neometals has developed a sustainable process for recovering nickel, cobalt and other valuable materials from spent and scrap LIBs that might otherwise be disposed of in land fill or processed in high emission pyrometallurgical recovery circuits.

The technology physically separates and recovers battery steel casings, aluminium and copper foil, plastic separators, and graphite from high‐value battery cathode materials including nickel, cobalt, manganese and lithium.

The company considers the successful completion of the pilot work as an important commercial milestone for the recycling technology.

Objectives were met and surpassed, no fatal technical flaws arose, and the company now has the data to commence feasibility‐level studies and proposed demonstration trials in Europe.

With the Pilot greatly reducing the technical risk of its proprietary process, Neometals said it can proceed confidently towards the proposed commercialisation JV with SMS Group and advance feed supply and product offtake activities.

“We are delighted to have completed the lithium battery recycling Pilot with such encouraging results,” Neometals managing director Chris Reed said in the company’s announcement to the Australian Securities Exchange.

“We remain convinced that electrification of transport is an unstoppable trend, which by default will generate ever increasing volumes of production scrap and end‐of‐life batteries to responsibly manage.

“We have now proven that we have a solution to meet the lithium‐ion battery supply chains need for a safe, environmentally friendly recycling process which can reduce reliance on imported mineral feedstocks and satisfy increasing regulatory and stakeholder demands for sustainable and ethical raw material supply chains.

“We are looking forward with our partner to commercialise this asset. SMS’s skill set and global presence will further enhance value and lower risk as we prepare to showcase our offering to the market in a Commercial Demonstration Plant in Europe, the region with the fastest growing battery cell production capacity.”

Neometals indicated that SMS Group will complete its review of the final metallurgical test work report and Metsim mass‐energy balance.

The review constitutes the final technical diligence requirements to enable an SMS decision to enter a project commercialisation JV by the end of April 2020.

Both parties are negotiating the JV legal agreements in parallel with Commercial Demonstration Plant design and procurement work packages.

The Pilot learnings have highlighted scope to further improve outcomes in optimisation test‐work that has commenced and will precede the Demonstration Trial.

 

Email: info@neometals.com.au

Web: www.neometals.com.au

 

Kin Mining Returns Further High-Grade Cardinia Results

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THE DRILL SERGEANT: Kin Mining (ASX: KIN) received final results from drilling undertaken at the company’s Cardinia gold project (CGP) near Leonora in Western Australia.

Kin Mining said the results came from one-metre split samples collected at Lewis East and Lewis West and were 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 0.1 grams per tonne gold, to allow for better definition of the mineralised zones.

Highlights included near-surface, high-grade zones of gold mineralisation confirmed at Lewis East of:

LE19AC036
11 metres at 3.85 grams per tonne gold from 24m, including 8m at 5g/t gold from 24m;

LE19AC044
6m at 3.63g/t gold from 9m, including 2m at 9.27g/t gold from 10m;

LE19AC034
19m at 1.04g/t gold from 14m, including 5m at 2.28g/t gold from 26m.

The drilling also confirmed low grade zones along controlling structures Lewis West, including:

LW19AC031
1m at 3.24g/t gold from 10m.

Kin mining interpreted the Lewis East results have added to previously released results and continue to confirm the presence of several lodes of high-grade gold mineralisation, within wider haloes of lower grade.

“The Lewis East mineralisation based on the four-metre composite assays was interpreted to be broad zones of medium grade material with occasional higher grade zones generally in a north east dipping orientation,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The one-metre split sampling has confirmed that the broad medium grade intersections generally contain a narrower, higher grade core of mineralisation displaying vein style pyrite mineralisation surrounded by lower grade disseminated sulphides and alteration.

“The one-metre sampling has helped the geological teams define the controls on the mineralisation more clearly.

“At Lewis East, the higher grade, north east dipping mineralised zones appear to be similar to the Lewis mineralisation located between 500 metres to 1000 metres to the north west within the Bruno-Lewis mineralised system.

“The Lewis East mineralisation occurs directly along strike of the two North east dipping Lewis lodes, which have undergone extensive historical RC and diamond drilling.

“Further RC drilling at Lewis East is planned to test the depth and strike extent of the Lewis East lodes and the potential continuity with the Lewis 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 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.”

 

Email: info@kinmining.com.au

Web: www.kinmining.com.au

 

Emmerson Resources Awarded NSW Government Drilling Grants

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THE DRILL SERGEANT: Emmerson Resources (ASX: ERM) has been awarded drilling co-funding grants from the New South Wales government for the company’s Kiola and Kadungle projects.

The Kiola project is situated within the Molong Belt, providing favourable nearology to Alkane Resources’ recent Boda copper-gold discovery and Newcrest’s world class Cadia-Ridgeway copper-gold deposit.

The Kadungle project sits within the Narromine Belt where previous drilling has intersected high-grade gold and copper.

The New Frontiers Cooperative Drilling grants program by the NSW government encourages private exploration drilling in the search of high-value mineral deposits in prospective underexplored areas of NSW and where companies are using the latest technology to identify new deposits.

The $2 million program is a co-funded initiative where the NSW government provides up to 50 per cent of direct drilling costs for individual projects, capped at $200,000.

“Emmerson is well placed to emerge in a very strong position once this COVID-19 crisis allows field activities to recommence,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“We have exceptional ground positions in one of the Australia’s highest-grade gold provinces at Tennant Creek plus a suite of early mover assets in some of the hottest exploration districts in New South Wales.

“The announcement by the New South Wales government that Emmerson has secured two Cooperative Drilling Grants has not only reduced our exploration costs across both our Kiola and Kadungle projects but is also testament to the potential of these projects to generate new copper-gold discoveries.

“Additionally, we have prudently implemented cost saving measures across our business to help weather the challenging economic conditions we currently face.”

 

Email: admin@emmersonresources.com.au

Web: www.emmersonresources.com.au