Encounter Resources Intersects Tanami Bedrock Gold

/in , /by

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) reported on recent drilling activities undertaken at the Afghan and Mojave prospects in the Tanami region of Western Australia with Joint Venture partner Newcrest Mining.

Encounter Resources said the drilling had identified bedrock gold mineralisation and geological controls at both prospects with the mineralisation hosted by structures developed within folded dolerite units, which are a favourable host for orogenic gold mineralisation.

The company indicated it had been encouraged by the results achieved at the Mojave prospect where a hinge zone of the interpreted antiform is untested along strike.

Encounter considers such positions represent a key target for large zones of gold mineralisation in the Tanami, making it a high-quality target for future drilling.

One section of three RC drill holes was completed at Mojave, intersecting multiple, broad zones of bedrock gold mineralisation, including:

MOJ004
16 metres at 0.27 grams per tonne gold from 36m;
4m at 0.25g/t gold from 56m;
6m at 0.47g/t gold from 66m;
8m at 0.3g/t gold from 76m;
10m at 0.69g/t gold from 228m; and
10m at 0.38g/t gold from 256m.

MOJ002
4m at 0.7g/t gold from 20m;
4m at 0.28g/t gold from 124m;
6m at 0.53g/t gold from 174m;
4m at 0.38g/t gold from 196m; and
10m at 0.34g/t gold from 210m.

Results from an eight-hole broad-spaced RC drill program at Afghan confirmed gold mineralisation over a two-kilometre zone including:

AFG002
10m at 1.6g/t gold from 4m, including 6m at 2.5g/t gold from 6m;

AFG005
2m at 2g/t gold from 40m and 2m at 3.5g/t gold from 136m; and

AFG008
24m at 0.32g/t gold from 102m.

“The first pass RC drilling at the Afghan and Mojave prospects in the Tanami has confirmed historical near surface gold and intersected new zones of gold anomalism within tightly folded dolerite bedrock,” Encounter Resources managing director Will Robinson said in the company’s announcement to the Australian Securities Exchange.

“The level of bedrock gold anomalism at Mojave potentially represents a halo to a higher-grade, orogenic gold deposit and the primary structural target located south-east remains open and untested.”

 

Email: contact@enrl.com.au

Web: www.enrl.com.au

 

Red 5 Continues Growth at King Of The Hill

/in , /by

THE DRILL SERGEANT: Red 5 Limited declared its decision in the December 2019 Quarter to boost underground drilling capacity at the company’s King of The Hill (KOTH) project in Western Australia with three diamond rigs, has paid off.

Red 5 reported the drilling has produced results that add further confidence to the Final Feasibility Study (FFS) it currently has underway for KOTH.

The latest broad ‘whole-of-hole’ intercepts include:

190.6 metres at 1.3 grams per tonne gold
231m at 1.2g/t gold and
58m at 4.1g/t gold.

Extensional drilling delivered widths of up to:

57.3m at 2.3g/t gold outside of the existing 3.1-million-ounce Resource envelope, together with high-grade intersections, including:

15.9m at 34.5g/t gold and
18.2m at 11.5g/t gold.

“The 85,000-metre underground drilling program is progressing strongly with approximately 60 per cent of the program completed,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The volume and quality of the data being generated are progressively being fed into an updated Resource model, that will underpin an update to the current 3.1-million-ounce Mineral Resource as part of the FFS on an integrated bulk open pit and underground mining operation due to be released in the September 2020 Quarter.

“Importantly, the results continue to contribute towards achieving the three outcomes we are targeting – namely, to convert as much of the existing Underground Resource into Ore Reserves as we can for inclusion in the FFS, to reassess the final shape of the open pit, and to identify extensions to the underground Resource both along strike and down-dip.

“In-fill and grade control drilling is also delivering positive results by reinforcing the continuity and tenor of the stockwork development zones, which have formed part of our transition to bulk underground mining program and will provide us greater confidence for the future.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Peel Mining Drills New Southern Nights Gold Zone

/in , /by

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported the discovery of strong gold mineralisation associated with a new high-grade zone at the southern end of the Southern Nights deposit from the recent resource upgrade drilling program at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.

Peel mining completed a drilling program in 2019 that was designed to develop a higher confidence Mineral Resource Estimate at Wagga Tank-Southern Nights.

The drilling was targeted towards the Wagga Tank, Southern Nights and the Corridor Zone located between Wagga Tank and Southern Nights.

This returned strong assay results, including some of the highest-grade gold mineralisation the company has intersected at Southern Nights to date:

WTRCDD238
35 metres at 6.3 per cent zinc, 2.59 per cent lead, 105 grams per tonne silver, 0.24 per cent copper, 1.87g/t gold from 232m, including 5.9m at 17.13 per cent zinc, 8.34 per cent lead, 376 g/t silver, 0.26 per cent copper, 7.6 g/t gold from 232.8m; and
7m at 13.3 per cent zinc, 4.4 per cent lead, 97 g/t silver, 0.1 per cent copper 0.89 g/t gold from 251m.

Peel Mining completed a review of these and other infill results, from which it determined that adequate drilling has now been completed to commence Mineral Resource Estimation work with an upgraded resource anticipated for March quarter 2020.

This resource will form the basis for further concept study work to progress the project towards development.

“The high-grade gold associated with the mineralisation in drillhole WTRCDD238 is a very welcome development for the Southern Nights system, all the more exciting as this area remains completely open to the south,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“More importantly, a recent review of resource upgrade drilling indicates good infill and extensional coverage has been established, supporting an update of the Mineral Resource Estimate.

“We look forward to providing an updated resource this quarter.”

 

Email: info@peelmining.com.au

Web: www.peelmining.com.au

 

Neometals Produces High Purity Dioxide Hydrolsate

/in , /by

THE BOURSE WHISPERER: Neometals (ASX: NMT) has successfully produced high purity (>98%) titanium hydrolysate (hydrated titanium dioxide ‐ TiO2.2H2O) from the titanium recovery stage of the Australian pilot plant trial at the company’s Barrambie titanium and vanadium project in Western Australia.

Neometals noted that the titanium recovery from Barrambie concentrate exceeded 90 per cent, adding that the batch Titanium Pilot results confirm the technical feasibility of the company’s process at pilot scale for the production of a high purity intermediate (hydrolysate) used in the titanium pigment process.

The Barrambie resource contains high‐grade ilmenite intergrown with a vanadium‐bearing magnetite (iron).

The Neometals process flowsheet has demonstrated it can produce a superior intermediate feed material that is safer, cleaner and cheaper to produce titanium pigment from.

Further upside in this flowsheet for Barrambie is the recovery of the accessory vanadium and iron in a saleable form.

Neometals explained the Titanium Pilot is the first key evaluation milestone under a memorandum of understanding (MoU) the company has with Chinese metallurgical group, IMUMR.

Under the terms of the MoU, if IMUMR funds the demonstration plant program at its extensive research facilities in China, and both parties agree to jointly fund a formal evaluation study for a mining and concentrating operation at Barrambie with subsequent downstream processing in China, the parties may negotiate in good faith the terms of a 50:50 production JV.

Samples of titanium hydrolysate have been freighted for evaluation by prospective concentrate offtake customers, being titanium pigment producers within and outside of China.

Neometals indicated the next evaluation step is the recovery and production of a vanadium by‐product from the primary leaching stage of the Titanium Pilot Plant.

While all this is going in, Neometals is preparing approximately 10 tonnes of gravity and magnetic concentrates from the high titanium grade Eastern Band for a proposed Chinese demonstration plant trial.

The company anticipates the vanadium test work and concentrates shipment should be completed by the end of the March Quarter 2020.

“We are confident our flowsheet can produce the highest value‐in‐use for potential customers and recover maximum value from the deposit for Neometals and its partners,” Neometals managing director Chris Reed said in the company’s announcement to the Australian Securities Exchange.

“Proving an ore can be concentrated and converted to high purity chemicals at good recoveries is the first step in attracting quality offtakers to enable the development of globally significant industrial mineral projects, whether they be lithium or titanium.

“The outcomes to date bode well for advancing our commercialisation plans in 2020.”

 

Email: info@neometals.com.au

Web: www.neometals.com.au

 

Magnetic Resources Encounters Encouraging Gold Results at Lady Julie

/in , /by

THE DRILL SERGEANT: Magnetic Resources (ASX: MAU) has completed an initial RC drilling program at the Lady Julie project, not far from the company’s Hawks Nest 9 project, located near Laverton in Western Australia.

Magnetic Resources said the drilling had produced promising results along two western mineralised lines, which are only one kilometre and 1.5km east of the HN9 3km-long mineralised project.

Results from the recent drilling include:

MLJRC039
2 metres at 5.44 grams per tonne gold from 29m;

MLJRC073
1m at 18.18g/t gold from 15m;

MLJRC076
6m at 1.79g/t gold from 1m; and

MLJRC083
3m at 1.78g/t gold from 5m.

The recent drilling is being followed up over a total of 1.3km strike length with 30 RC holes.

The company considers the area covering Lady Julie and HN9 to be well endowed and, as such, it has become a focus for potential gold mineralisation over 11.4 square kilometres for a mining centre after more drilling is completed.

Magnetic has found the Lady Julie mineralised zones to be similar to HN9 and occur within altered porphyry and altered porphyry and mafic contacts and in some case with sediment zones.

“The western half of the Lady Julie project is typified by shallow dipping and sub horizontal mineralised zones and is proximal to the contact of mafic and intruding porphyry,” Magnetci Resources said in its ASX announcement.

The Lady Julie tenements have demonstrated strong mineralisation, returning 198 gold intercepts greater than 0.5g/t gold.

These include 88 greater than 1g/t, 33 greater than 2g/t, 19 greater than 3 g/t and 12 greater than 4g/t.

“Both detailed ground magnetics and the remaining soil geochemical surveys will be completed over the Lady Julie tenements followed up with further shallow RC 30-hole program totalling 1520 metres testing mainly for extensions to the north and south and at depth below promising intersections,” Magnetic said.

 

Web: www.magres.com.au

Matsa Resources Drills High-Grades Under Devon Mine

/in , /by

THE DRILL SERGEANT: Matsa Resources (ASX: MAT) announced preliminary results from RC drilling undertaken at the Devon mine site within the company’s Lake Carey gold project in the Eastern Goldfields of Western Australia.

Matsa Resources said the five-hole RC drilling program, which was carried out in December 2019 to test continuity of gold mineralisation below historic underground and more recent open-pit mine workings, had illustrated continuation of high-grade mineralisation.

Highly encouraging gold assay results were returned in four of the five drill holes completed, including:

Main Lode

19DVRC001
3 metres at 35.03 grams per tonne gold;

19DVRC005
3m at 5.93g/t gold and 3m at 1.56g/t gold; and

19DVRC002
3m at 1.38g/t gold.

Hanging Wall Lode

19DVRC003
15m at 20.78g/t gold, including 3m at 94.1g/t gold and 3m at 5.98g/t gold.

“Three of these intercepts are interpreted to lie on a continuation of the Devon Main Lode zone which was previously mined by GME Resources Ltd,” Matsa Resources said in its ASX announcement.

“High-grade gold mineralisation was also intersected in one drill hole, in the hanging wall above the Main Lode zone.

“This mineralisation, referred to as the Hanging Wall Zone was not previously mined and appears to be poorly tested by previous drilling and hence warrants much further work.”

Matsa indicated it has further drilling planned to better define high-grade mineralisation in the Main Lode and the Hanging Wall lode.

A test IP survey is planned to confirm whether high-grade lodes can be detected by this technique.

 

Email: reception@matsa.com.au

Web: www.matsa.com.au

 

THE DAILY ROADHOUSE 21/1/20

/in , /by

 

Corazon Mining Doubles Down on Lynn Lake Drill Results

/in ,  /by 

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.

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.

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 Awards new Forrestania Offtake Contracts

/in , /by

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

/in , /by

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

/in , /by

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