Meteoric Resources (ASX: MEI)

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THE CONFERENCE CALLER: Meteoric Resources managing director Andrew Tunks filled us in about the company’s recent Brazilian drilling success at the RIU Resources Investor Roadshow in Melbourne.

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Meteoric Resources (ASX: MEI) received assays from from its maiden drilling program currently underway at the company’s 100 per cent- owned Juruena gold project in Brazil.

Meteoric Resources said the assays related to the first two diamond drill holes of its current campaign, JUDD001 and JUD002, both of which intersected visible gold at the Dona Maria rospect.

DDH JUDD001 intercepted a thick zone of strongly altered granite and assays confirm a broad zone of bonanza grades, including:

20.6 metres at 94.9 grams per tonne gold from 96.8m, including 3.65m at 508.4g/t gold from 107.5m.

DDH JUDD002 intercepted two separate zones of alteration and gold mineralisation returning assays of:

1.1m at 22.68g/t gold from 41.2m; and
4.5m at 6.2g/t gold from 46.6m.

“We were expecting something special from our first holes at Juruena after we intersected visible gold and intense alteration, however the results have exceeded even my expectation,” Meteoric Resources managing director Andrew Tunks said in the company’s announcement to the Australian Securities Exchange.

“In fact, this is the best drilling intercept I have ever been involved with in my career.

“While we were confident of the possibilities based on the historic drilling and the gold we observed, it is very reassuring to have assay numbers that support our interpretation.

“I am extremely proud of what the company and the exploration team has achieved since the acquisition in April.

“We have recruited and deployed excellent staff, contracted and mobilised two drill rigs and struck bonanza grades.

“All done in remarkably quick time.

“We have now completed eight holes and are testing some deeper targets beneath Dona Maria that are very exciting.

“The geological logging, sample dispatch and assay procedures are flowing well ensuring a steady flow of drill results over the coming months.

“Furthermore, we have recognised the untapped potential at the Novo Astro project and moved quickly to execute an exploration and drilling program in tandem with Juruena.”

 

Web: www.meteoric.com.au

 

 

Venture Minerals (ASX: VMS)

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THE CONFERENCE CALLER: Wally Graham caught up with Venture Minerals Managing director Andrew Radonjic at the recent RIU Resources Investor Roadshow in Melbourne.

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Venture Minerals (ASX: VMS) recently committed to the recommencement of mining activities at the company’s Riley iron ore mine in Tasmania.

Venture Minerals made the announcement following completion of an updated Riley Iron Ore Mining Study with the associated Pre-Feasibility Study (PFS) delivering strong returns from a low capex two-year project, that the company believes to be well positioned to capture the current higher iron ore price environment.

In addition to completing the study the company, having previously signed a Binding Terms Sheet for the Riley Iron Ore Mine off-take with Prosperity Steel, has now signed a full off-take agreement for the Riley product for 100 per cent of the first two years of iron ore production.

First shipment of ore from the Riley Mine is currently planned for the fourth quarter of 2019, however the company indicated it was continuing to work on additional strategies to further reduce operating costs on the project before the first ore shipment.

These cost optimisation programs will focus on enhancing ore transport solutions.

“This is an exciting phase for the company as it moves from explorer to producer,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.

“The Riley Iron Ore Mining Study demonstrates the delivery of an exceptional Internal Rate of Return in excess of 300 per cent is possible by leveraging the relatively small capex required to commence production.

“Venture has brought together an experienced team with a blend of local knowledge that has built, managed and operated iron ore and other similar sized projects, thereby de-risking the execution phase of the Riley project.

“The Riley Iron Ore Mine will create 80 to 100 jobs and will be a boost for the economy of the West Coast of Tasmania.

“We look forward to commencing production shortly.”

 

 

Robust performance merely scratches surface

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THE CONFERENCE CALLER: Despite enjoying a high discovery success rate going back decades, Australia’s Cooper Basin is still not regarded as a mature exploration destination by some ASX-listed energy players. By Mark Fraser

Two of these companies – Oilex (ASX: OEX) and Real Energy Corporation (ASX: RLE) – made their feelings regarding the basin’s untapped potential clear at the RIU Good Oil Conference held in Perth recently.

During his presentation to the conference, Oilex managing director Joe Salomon said proven technologies like 3D had hugely impacted exploration in the Cooper Basin and suggested new technologies targeting depth would now see similar advancements.

It was also, “enormously rich in terms of the data that is available,” he said.

Earlier this year the company entered into an agreement with Holloman Energy Corporation to acquire a 48.5003 per cent interest in the PEL 112 and 444 licenses, which sit in the South Australian section of the basin.

Both blocks are located on extensions of the Western Flank oil fairway that hosts over 30 per cent of the Cooper Basin’s oil reserves. PEL 112 covers 1,086 square kilometres, while PEL 444 extends across 1,166 square kilometres.

“It’s under-explored, it’s underdeveloped, there’s an opportunity to build a big business in the Cooper Basin,” Salomon said.

“It’s proven, it’s a liquid rich gas basin, it has a world class source rock, and that’s the defining thing for all of our activities – we want to be next to world class source rocks.

“You have to understand the migration pathways. We are moving from structural plays to structural stratigraphic, and in fact pure stratigraphic, and that is a key part of our plan going forward.”

When it came the turn of Real Energy Corporation (REC) chief executive and executive director Scott Brown to present, he took the opportunity to compare the Cooper Basin with Texas, where around a million wells had been drilled as opposed to just 3,100 within the onshore Australian jurisdiction.

The company’s initial focus is on the exploration and development of unconventional gas resources and conventional oil and resources in both the Cooper and Eromanga basins.

“It (the Cooper Basin) is pretty similar size (to Texas), so there is a hell of a lot potential here for both oil and gas, and that’s why we are very bullish about it,” Brown said.

“Both Santos and Beach have announced pretty major programs to get after oil and gas in this basin.

“Santos is talking about a program of 100 wells over the next period of time.

“Obviously they are investing substantially.”

As with Oilex, REC was also looking to implement new technologies and methodologies as it further developed its permits.

This included incorporating updated well designs as well as finding ways to increase productivity and flow rates.

 

 

Pioneer Resources Receives First Drill Results From Cade Spodumene Discovery

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THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) reported receiving assay results from a recently completed drilling program on the Cade spodumene deposit, within the company’s 100 per cent-owned Pioneer Dome lithium-caesium-tantalum project in Western Australia.

Pioneer Resources conducted the drilling in order to test two lithium-caesium-tantalum (LCT) pegmatite targets beneath the previously reported discovery outcrops.

In July this year the company reported that spodumene-bearing LCT pegmatites had been discovered by its geologists at two locations within the Dome North Area.

The company has claimed to have confirmed the discovery of dominantly spodumene-rich deposits.

Assays have been received for drill holes PDRC263 to PDRC277, while those for holes PDRC278–PDRC288 are still awaited.

PDRC263 was the discovery drill hole for the Cade spodumene deposit, intersecting:

113 metres at 1.04 per cent lithium dioxide (Li2O).

The company explained this drilling intersected the mineralised pegmatite at an angle near-parallel to the plunge orientation, so while the 113 meters is not truly representative of width, the company considers this hole does give an indication of mineralisation continuity with depth.

Results from further holes drilled at right angles to the Cade spodumene deposit, meaning that the reported intersections are close to ‘true width’, included:

PDRC265
25 metres at 1.61 per cent Li2O;

PDRC267
33m at 1.63 per cent Li2O;

PDRC268
18m at 1.47 per cent Li2O;

PDRC270
23m at 1.36 per cent Li2O; and

PDRC277
10m at 1.60 per cent Li2O.

Results from drilling at the Spodumene 1 Target included:

PDRC275
10m at 1.08 per cent Li2O and 129ppm tantalum pentoxide (Ta2O5).

Pioneer indicated it anticipates receiving the remaining assays before the end of September 2019.

“Having successfully completed its first mining operation at the Sinclair caesium mine, and now well-funded through the sale of pollucite, Pioneer returns to being an active explorer focused on key global demand-driven commodities, looking for its next mining opportunity,” Pioneer Resources said in its ASX announcement.

 

 

Web: www.pioresources.com.au

 

Musgrave Minerals Hits Gold Beneath Lena Resource

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THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported further high-grade gold assay results from diamond drilling at the Lena deposit, part of the company’s 100 per cent-owned tenure on the Cue gold project in the Murchison district of Western Australia.

Musgrave Minerals said assays from the first diamond drill holes in the company’s current program at Lena returned high-grade gold over potentially mineable widths and are between 80 metres and 140m vertically below the current JORC resource boundary that support the potential continuity of mineralisation at depth.

The two diamond drill holes completed at Lena (19MODD017 and 19MODD016) both intersected two high-grade gold lodes

Results include:

19MODD017
0.7 metres at 74.7 grams per tonne gold from 314m down hole approximately 140m vertically beneath the existing resource on the western high-grade lode; and

1.8m at 3.8g/t gold from 242m down hole, 80m below the existing resource on the eastern lode.

16MODD016
7m at 2.95g/t gold from 258m down hole, including 2.2m at 6.5g/t gold from 261.8m, including 0.6m at 14.3g/t gold from 261.8m approximately 100m below the existing resource boundary on the lode; and

1.7m at 6.3g/t gold from 289.2m down hole approximately 125m below the existing resource boundary on the western lode.

The mineralisation is open at depth on all lodes.

“These are excellent results and continue to increase our confidence in the high-grade plunge of the mineralisation at Lena where it remains open at depth,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“The upside at Lena is significant and we look forward to further strong results as drilling continues.”

 

Email: info@musgraveminerals.com.au

Web: www.musgraveminerals.com.au

 

Rox Resources Hits Best Results to Date at Youanmi

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THE DRILL SERGEANT: Rox Resources (ASX: RXL) declared the best drilling results achieved to date from a drilling campaign underway at the Youanmi gold project in Western Australia.

The Youanmi gold project (OYG JV) is a Joint Venture with Venus Metals Corporation (ASX: VMC).

Rox Resources has completed over 9,000 metres of drilling that it has received results for around 75 per cent.

Results received from Youanmi South drilling include:

RXRC063
12 metres at 12.7 grams per tonne gold from 80m;

RXRC064
12m at 8.5g/t gold from 44m;

RXRC053
4m at 11.2g/t gold from 110m; and

RXRC066
4m at 7.6g/t gold from 76m

Drilling at Plant Zone has defined shallow, potential base load mill feed, with new results showing continuations to shallow mineralisation including:

RXRC038
4m at 5.6g/t gold from 24m;

RXRC047
30m at 1g/t gold from 96m; and (depth continuation)

RXRC046
14m at 1.7g/t gold from 70m. (depth continuation)

Rox said its understanding of controls on mineralisation at Youanmi is rapidly increasing and as a result its targeting methodology has improved markedly as demonstrated by these results.

The company is looking forward to potentially translating this into strong resource growth at the project.

The RC drill program is ongoing and will continue into October, with resource estimation work to follow.

The company is testing both new conceptual targets that it considers to have the potential to open up new areas of mineralisation and drilling out positions of the Youanmi gold deposits or areas where it believes there is potential for repeats.

 

Email: admin@roxresources.com.au

Web: www.roxresources.com.au

 

Cassini Resources Encounters Early Excitement at Mt Squires

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) released the first results from RC drilling underway at the company’s 100 per cent-owned Mount Squires project in the Musgrave Province of Western Australia.

Cassini Resources describes the project as being an early stage exploration project thatit considers to be highly prospective for gold and is located adjacent to the western border of the company’s West Musgrave JV Project with OZ Minerals (ASX: OZL).

The drilling was undertaken at the Handpump prospect and comprised 10 holes for 1,134 metres of RC.

The program was designed to confirm mineralisation controls and extensions to previous drill intercepts and represents the first drilling at the Handpump prospect since 2011, prior to Cassini’s ownership.

Cassini said the results have confirmed the potential for economic mineralisation at surface and extending to shallow depths providing an exciting start to its Mount Squires field program.

Results from the first three holes include a healthy result of:

MSC0003
20 metres at 1.27 grams per tonne gold, including 7m at 2.54g/t gold from 23m.

The intersection included a peak result of 1m at 4.98g/t gold from 26m, highlight potential for high grade mineralisation.

This intercept represents a new lode position that had not been intersected by previous drilling.

“We’re really encouraged by these early results which confirm the presence of significant gold mineralisation at the Handpump prospect and reinforce the prospectivity of our Mount Squires gold project,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.

“This is a new frontier for gold exploration in Australia with unrealised potential.

“Cassini is well positioned to exploit this opportunity through our understanding of the geology of the region and established operational capability.

“We look forward to receiving the results from the rest of the program.”

 

Email: admin@cassiniresources.com.au

Web: www.cassiniresources.com.au

 

Black Cat Syndicate Increases Satellite Resources at Myhree

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THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) has updated the JORC 2012 Mineral Resource Estimate at the Boundary and Trump deposits within the company’s Bulong gold project in Western Australia.

Black Cat Syndicate has increased the Boundary Resource by 87 per cent to 0.63 million tonnes at 2.1 grams per tonne gold for 41,100 ounces, while the Trump Resource has increased 89 per cent to 0.26 million tonnes at 2.3g/t gold for 18,900 ounces.

The increases have had the knock-on effect of taking the total Resource at the Bulong gold project to 2.6 million tonnes at 2.4g/t gold for 206,000 ounces with a potential open pit Resource of 2.2 million tonnes at 2.4g/t gold for 168,000 ounces.

Black Cat Syndicate indicated the feasibility study it currently has underway will continue to assess Myhree as the base load producer and will now incorporate the Boundary and Trump Resources as potential satellite mines.

The company considers Queen Margaret/Melbourne United, Trump North and Strathfield all to demonstrate good potential as satellite mines.

Metallurgical testwork and geotechnical studies at Myhree are in progress, as is exploration drilling covering multiple targets at Greater Woodline; infill drilling at Myhree.

Extensional drilling at Trump North and at the Myhree Southern Offset Target will commence in early October 2019.

“We are pleased to show continuing growth in Resources, particularly in the immediate area of Myhree,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.

“Myhree is presenting as the base load producer adjacent to a number of potential satellite mines including Boundary, Trump, Trump North, Queen Margaret, Melbourne United, and Strathfield.

“Recent drilling has also shown that grades within both Trump and Boundary are better than historic drilling indicates, causing us to review the potential of a number of historic deposits.

“The current gold price environment, combined with the quality of the Bulong Resources and our location near infrastructure, provide strong impetus to move to production.

“In the meantime, we are about to embark on a very exciting phase of drilling aimed at extending the mineralisation at Myhree and Trump and exploring priority targets in the high-grade Greater Woodline area.

“Resources at Bulong will next be estimated and upgraded in the March 2020 quarter based on drilling to 31 December 2019.”

 

Email: admin@blackcatsyndicate.com.au

Web: www.blackcatsyndicate.com.au

 

Image Resources Confirms Continuation of High-Grade Boonanarring Core

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THE DRILL SERGEANT: Image Resources (ASX: IMA) declared that close-spaced infill drilling has provided further confirmation of the continuation of the very high-grade core within the eastern strand in Block A of the company’s 100 per cent-owned, high-grade, zircon-rich Boonanarring mineral sands project located north of Perth in the North Perth Basin in Western Australia.

The announcement follows previous releases, including the first in July 2019, of a high-grade core in the eastern strand at Boonanarring from assay results from early stage drilling in Block C (the project’s current mining block) and a second announcement in September of secondary confirmation from assay results from drilling in Block B.

The latest assay results come from the next stage of drilling that was undertaken at Block A, which the company claims to have confirmed the continuation of the high-grade core over the full length (1.4km) of Block A.

The total length of the high-grade core has now been shown to stretch over 5.4 kilometres within Blocks A, B and C, with Block C currently being mined.

Image Resources said these results are part of a larger drilling program designed to re-assess the Mineral Resources and Ore Reserves at Boonanarring.

The full drilling program includes close-spaced, infill drilling to delineate the full extent of the high-grade core in the eastern strand across Blocks A, B, C and D.

Things have been busy at Boonanarring since Image got serious with the project by kicking off the open-cut mine and associated processing facility in April 2018.

The company completed construction and project commissioning ‘on-budget’ and ‘on-schedule’ with production commencing in December 2018.

After just two months of operation production of heavy metal concentrate (HMC) was ramped-up to exceed the long-term steady-state forecast production level of 20,000 tonnes HMC per month.

In March, Image determined the Ore Reserve ore grade had been understated, based on actual mined and processed ore grades and resultant HMC production levels leading the company to realise that the eastern strand of the Boonanarring deposit contains a very high-grade core that was not adequately delineated by the standard drill spacing of 20 metres.

A subsequent close-spaced drilling program (5 metre) commenced in April and continued through July, the results from which will be used to reassess the Mineral Resources and Ore Reserves estimates.

At the end of June 2019, the actual ore grade for the half year was 43 per cent higher than forecast based on the Ore Reserve.

Updated Mineral Resources and Ore Reserves estimates and an update of overall project economics are anticipated to be announced in the October quarter 2019.

Image’s first shipment of HMC product, culminating in its receipt of first revenue, came in January 2019.

Since then, more bulk shipments of HMC of nominally 20,000 tonnes have departed the Bunbury Port at the rate of roughly one per month.

The Boonanarring deposit is rich in zircon,which is one of the most valuable of the four heavy minerals contained in the HMC product.

The company is further encouraged by global zircon production being forecast to be lower than market demand for the next three years, making zircon prices relatively buoyant.

Image sees the combination of these factors to represent more than 80 per cent of its near-term total revenue.

The company is well-placed to take advantage of the upswing with market-based offtake agreements for 100 per cent of production for the life of the mine, with key zircon processing and manufacturing companies in China, which consumes more than half the world’s production of zircon.

Image has now completed two full quarters of active mining and production and at the end of June 2019 is profitable and cashflow positive.

For the first half of 2019 the company reported HMC production at 138 per cent of budget, operating costs of only 76 per cent of budget, EBITDA of 127 per cent of budget and provisional net profit after tax of 157 per cent of budget.

In July the company published updated market guidance and increased its forecast EBITDA from $40 to $50 million to $55 to $65 million for CY2019.

Image is actively drilling to delineate additional Mineral Resources for conversion to Ore Reserves at
Boonanarring with the goal of adding mine life.

Image Resources was eager to point out that Boonanarring is only one of a number of 100 per cent-owned mineral sand deposits in the company’s portfolio in the region, and that it is currently actively exploring and will be looking to develop one or more additional operating centres in the coming years.

 

Email: info@imageres.com.au

Web: www.imageres.com.au

 

Classic Minerals Appoints Industry Stalwart Klaus Eckhof

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THE BOURSE WHISPERER: Classic Minerals (ASX: CLZ) has welcomed Klaus Eckhof as a Corporate and Technical Advisor, effective immediately.

Classic Minerals said Eckhof will be advising the company on its Forrestania gold project generally with particular focus on its Kat Gap project.

Eckhof brings to the plate a wealth of experience having worked as a geologist for over 25 years developing mineral deposits around the globe, including Africa.

Eckhof’s chronology of employment is impressive, including time with Mount Edon Gold Mines Ltd as Business Development Manager before it was acquired by Canadian mining company Teck.

In 1994, he founded Spinifex Gold and Lafayette Mining, both of which developed gold and base metal deposits.

In late 2003, he founded Moto Goldmines, which acquired the Moto gold project in the Democratic Republic of the Congo (DRC) where he ran a team that delineated more than 20 million ounces of gold and delivered a feasibility study within four years from the commencement of exploration.

Moto Goldmines was subsequently acquired by Randgold Resources, who poured first gold in September 2013.

Eckhof was also formerly Executive Chairman of AVZ Minerals (ASX: AVZ), a mineral exploration company focused on developing the Manono project, located in the south of the DRC.

The Manono project boasts the largest JORC Measured and Indicated lithium hard rock resource globally.

Still in the DRC and Eckhof was instrumental in identifying the Bisie tin deposit, one of the largest tin deposits in the world, which was acquired by TSX-V listed Alphamin Resources Corp.

Classic Minerals said Eckhof’s appointment adds technical and international fund-raising expertise to the company as it seeks to expand its exploration programs at Forrestania and on the Kat Gap project in particular.

Eckhof will be responsible for marketing the company and its projects throughout North America and Europe.

“I am delighted that Klaus has accepted to join Classic Minerals as a trusted and capable advisor who brings a new and exciting vision to the Board and Management of Classic as Dean (Goodwin CEO) progresses with extensional drilling at Kat Gap,” Classic Minerals chairman John Lester said in the company’s announcement to the Australian Securities Exchange.

“We are privileged that Klaus with his integrity, dynamism and international network has agreed to guide, direct and enhance the vision of Classic Minerals Limited.”

 

Email: contact@classicminerals.com.au

Web: www.classicminerals.com.au