Exore Resources Encounters Gold mineralisation in Fresh Rock

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THE DRILL SERGEANT: Exore Resources (ASX: ERX) encountered high-grade, free-milling gold when drilling the first hole drilled into fresh rock at the Veronique gold discovery within the company’s Bagoe project in northern Cote d’Ivoire.

Exore had announced results from initial AC drilling at Veronique in March 2019.

The company’s recent drilling has consisted broad spaced AC drill traverses, focussed on just the central 1.6 kilometres of the eight-kilometre-long gold-in-soil anomaly, intersecting high-grade, in-situ gold mineralisation across multiple lodes gold mineralisation.

According to Exore, the AC drilling has identified at least five sub-parallel zones of gold mineralisation with each zone extending over strike lengths of greater than 1,000 metres.

Over 80 per cent of the 8km gold-in-soil anomaly at Veronique remains untested.

He latest drilling involved a single diamond core hole that was drilled to test for down dip extensions of high-grade gold mineralisation into the fresh rock, to provide further geological information to assist in future drill hole planning and to provide samples in the fresh rock for preliminary metallurgical test work.

Diamond hole BDDD0006 returned 8 metres at 7.74 grams per tonne gold from 78m in fresh rock beneath a well-developed zone of weathering extending to around 70m depth.

Exore claimed this intercept confirms down dip mineralisation from previous AC intercepts of: 12m at 7g/t gold from 16m and 12m at 3.12g/t gold from 36m.

“Veronique is shaping up as a high-grade gold discovery with exciting scale potential given the extent of the high tenor gold in soil anomalism over eight kilometres by two kilometres,” Exore Resources managing director Justin Tremain said in the company’s announcement to the Australian Securities Exchange.

“Aircore drilling to date has been defining widespread oxide gold mineralisation and now, with just a single diamond hole, we have demonstrated that high-grade gold mineralisation extends into the fresh rock.

“Preliminary metallurgical test work indicates the gold mineralisation at Veronique to be free milling with good gold recoveries in fresh rock.

“Exore’s exploration efforts will be focussed primarily on Veronique over the coming six to 12 months, along with some further drilling targeting additional shallow oxide gold mineralisation at the Antoinette area just 12 kilometres to the north.”

Exore Resources’ Bagoe project is in a major gold producing region with several nearby large operating gold mines including Barrick’s 4.2 million ounce Tongon and 6.5 million ounce Morila mines, Resolute’s 11.5 million ounce Syama mine, Teranga’s 2.7 million ounce Wahgnion mine and Perseus’ 1 million ounce Sissingue mine.

 

Email: info@exoreresources.com.au

Web: www.exoreresources.com.au

 

Greenfields, Brownfields, Exploration Companies are Drilling in All Fields

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THE DRILL SERGEANT: It appears explorers are out doing what they’re best known for – that being exploring, according to the latest Mineral and Petroleum Exploration census from the Australian Bureau of Statistics.

The boffins in the counting house released their Mineral and Petroleum June 2019 Quarterly Statistics that show total mineral exploration expenditure increased 5.2 per cent ($31.3 million) to $629.6 million for the June 2019 quarter.

The ABS mineral exploration expenditure report shows that drilling activity and associated spending rose in every single state and territory of Australia.

However, followers of the industry based on the country’s western girt would not be surprised that Western Australia took the number one podium position as the largest contributor to the increase in the trend estimate (up 6.2 per cent, $22.9 million).

Of particular significance is the current quarter estimate being 16.5 per cent higher than the same time last year for the June quarter 2018 estimate.

Interestingly, metres drilled fell 1.2 per cent compared to the previous quarter, but were still 4.7 per cent higher than the June quarter estimate for 2018.

In short what this means is the exploration companies have money to drill and they are doing just that.

The seasonally adjusted estimate for mineral exploration expenditure was up 6.9 per cent ($41.5 million) to $639.6 million in the June quarter with the largest contributor to the rise being WA (up 4.2 per cent, $15.7 million).

The all-important greenfield mineral exploration expenditure figure maintained its rage with another quarter of growth from all states except for Victoria where it fell by $1.6 million, which is the third consecutive quarter of decline for AFL headquarters.

WA was in a drilling frenzy recording $184.3 million of exploration expenditure, resulting in the second highest on record.

Although its greenfield drilling was down, Victoria did increase its look at brownfields, with mineral exploration expenditure up by $4.3 million.

The upward brownfield trend continued around the country, mainly in traditional mining states of Queensland ($19.9 million, WA ($35 million) and Tasmania ($1.6 million).

The song remained the same in New South Wales, but dropped off in South Australia and Northern Territory.

“Australia needs greater greenfields mineral exploration, and the significant growth in greenfields mineral exploration expenditure right across the country reflects the returning strength of the exploration sector,” Association of Mining and Exploration Companies Chief Executive Officer Warren Pearce said in response to the report.

“It has been a challenging environment for mineral exploration companies, however the statistics are now supporting better growth in the industry.

“Australia needs to continue to invest in mineral exploration to find the mines of the future and unlock the jobs and growth still waiting to be discovered.”

 

Consolidated Zinc Consolidates 100% Ownership of Plomosas Mine

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THE BOURSE WHISPERER: Consolidated Zinc (ASX: CZL) announced it has entered into a Binding Term Sheet with Retec Guaru S.A. de C.V.

Under the terms of the agreement, Consolidated Zinc will acquire the remaining 10 per cent interest, currently held by Retec, in the company’s 90 per cent-owned subsidiary Minera Latin American Zinc S.A.P.I de C.V. aka MLAZ.

MLAZ owns the Plomosas Mine, located 120 kilometres from Chihuahua City, Chihuahua State,
Mexico.

The price attached to the acquisition of the Retec interest in MLAZ is a one per cent Net Smelter Return Royalty from the sale of zinc and lead concentrates produced from Plomosas.

Consolidated Zinc indicated it expects cmpletion of the agreement for the acquisition by 30 September 2019.

“The acquisition of a 100 per cent interest in Plomosas completes the simplification of the ownership structure from the company’s original 51 per cent shareholding less than nine months ago, with the acquisitions of the additional 49 per cent interests acquired at attractive considerations to add shareholder value,” Consolidated Zinc managing director Brad Marwood said in the company’s announcement to the Australian Securities Exchange.

 

Email: info@conzinc.com.au

Web: www.conzinc.com.au

 

Comet Ridge Declares Galilee Basin Drilling Progress at Albany 2 Well

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THE BOWSER: Comet Ridge (ASX: COI) updated the market on the progress of drilling operations at the Albany 2 well in the Galilee Basin.

The well is being drilled as part of the Galilee Deeps Joint Venture (GDJV) 2019 drilling program with Vintage Energy (ASX: VEN).

Comet Ridge has taken further core (Cores #2 & #3) from the Lake Galilee Sandstone (LGS) and is now drilling ahead towards the base of the formation.

The company indicated that a large part of the formation has been penetrated and most of the section drilled has been sandstone, which is extremely encouraging.

In its ASX announcement Comet Ridge managing director Tor McCaul said he was excited to see such a significant section of sandstone reservoir in this well, such a long distance from Albany 1, confirming the lateral extent of these sandstones.

“There have been good gas shows through the section, and it was particularly pleasing to see one 10 metre section of sandstone in the core that drilled very quickly, at 17 metres/hr, indicating that it should be high quality reservoir,” McCaul said.

“This particular section of core also showed good mud filter cake (when brought to surface) over part of that length, also an indication of permeable reservoir sandstone.”

McCaul went on to say that he was pleased the JV had obtained such a large section of reservoir core to be analysed, which will enable better stimulation design, later this year.

“I look forward to the well soon reaching total depth so that downhole electric line logs can be run to provide further important reservoir data, including reservoir pressure measurements,” he said.

McCaul further noted that the combination of the core analysis and the log analysis will be critical to enable the GDJV to select which sections of the reservoir are of the highest quality for stimulation and ultimately development and production purposes.

All cores have left the wellsite for Brisbane and will be prepared for a variety of laboratory analyses which will run over the coming weeks, leading to stimulation in 4Q this year.

Comet Ridge also advised that the GDJV has reached the pre-determined Stage 2 funding point of $10 million (gross).

As a result, Vintage has earned a further 15 per cent equity interest in the GDJV, bringing its total interest to 30 per cent.

Vintage was contributing to Stage 2 costs on a 50:50 basis, with the funding contribution for the joint venture to now be incurred in line with the GDJV interests (70:30).

 

Email: comet@cometridge.com.au

Web: www.cometridge.com.au

 

Ardea Resources Updates Lewis Ponds Resource

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THE DRILL SERGEANT: Ardea Resources (ASX: ARL) announced a new JORC 2012-compliant Indicated and Inferred Mineral Resource estimate, for the company’s Lewis Ponds gold-silver-zinc-lead-copper deposit near Orange in New South Wales.

Ardea reported the new JORC 2012 Mineral Resource for the Volcanic hosted massive sulphide (VHMS) Lewis Ponds project, comprising Indicated and Inferred Mineral Resources, at:

20.24 million tonnes at 0.5 grams per tonne gold, 33.3g/t silver, 1.5 per cent zinc, 0.7 per cent lead, and 0.1 per cent copper for total contained metal of 326,000 ounces gold, 21.6 million ounces silver, 290,000 tonnes zinc and 135,000 tonnes lead.

“The Lewis Ponds polymetallic mineral system is regionally significant and shares similarities with other well-known and significant Lachlan Fold Belt bulk tonnage projects,” Ardea Resources CEO Andrew Penkethman said in the company’s announcement to the Australian Securities Echnage.

“This project is being vended into Godolphin Resources Limited, Ardea’s planned IPO of its New South Wales gold and base metal assets with Godolphin expected to expand upon the considerable resource already defined at Lewis Ponds as mineralisation is open in every direction.

“There has been minimal historic gold exploration done across what is clearly an excellent gold structure with multiple historic workings that hosts Lewis Ponds and the 2.3 million-ounce McPhillamys gold deposit 23 kilometres southeast along structure.”

Ardea has also commenced geophysical surveys at the company’s 100 per cent-owned Perrinvale nickel-copper sulphide project, located west of Leonora in the Eastern Goldfields Province of WA.

“Ardea have been assessing the nickel sulphide potential of their large strategic land holding in Western Australia and defined a number of compelling exploration targets,” Penkethman said.

“A ground EM survey has just commenced at the Perrinvale project and we are excited by the potential to define conductors that represent concealed nickel sulphides.

“At Emu Lake, previous explorers have already defined a conductor in a setting interpreted to be similar to the Silver Swan nickel sulphide mine.

“Drilling of this untested target is expected to commence later this week.

“I look forward to receiving the results from these green fields exploration programs and continuing to assess Ardea’s quality project portfolio.”

 

Email: ardea@ardearesources.com.au

Web: www.ardearesources.com.au

 

Musgrave Minerals Hits High-Grade Gold Extension at Break of Day

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THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported, what the company described as, “a highly encouraging assay result.

Musgrave Minerals reported the result from recent extensional drilling at the Break of Day deposit, part of the company’s Cue gold project in the Murchison district of Western Australia.

Assays from a single reverse circulation (RC) drill hole to test a target from a revised structural model, intersected 2 metres at 9 grams per tonne gold from 71m down hole (19MORC015) in a potential southern extension to the Break of Day deposit.

Musgrave explained that the intercept was encountered approximately 75m south of the current resource boundary and remains open to the south and down plunge.

With the results of drill hole 19MORC012 and this latest intercept, Musgrave has now intercepted gold at Break of Day over a north-south extent of 475m.

The company now has follow-up drilling planned to test the vertical extent of this latest high-grade intercept.

“This is an excellent result and demonstrates the upside potential at Break of Day to continue to extend the mineralisation and grow the resource,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Once you are onto a high-grade system it is important to be persistent and continue to test new ideas and concepts. It’s early days, yet a very pleasing result and a credit to all involved.”

 

 

Email: info@musgraveminerals.com.au

Web: www.musgraveminerals.com.au

 

Middle Island Resources Completes Reo Sale

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THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) informed the market that Vancouver-based Tajiri Resources Corporation (TSXV: TAJ) has exercised its option to fully acquire Middle Island’s Reo gold project in Burkina Faso, West Africa.

Middle Island said the completion of the transaction resulted from Tajiri’s payment to Middle Island of the final US$150,000 Option Extension and Exercise Fee.

The company explained that the transaction collectively comprised a combination of a US$335,000 cash payment and five million fully paid TAJ ordinary shares, at the time representing around eight per cent of Tajiri’s register on a fully diluted basis.

The deal sees Middle Island shareholders retain exposure to the Reo gold project via the TAJ shares, along with a residual 2 per cent NSR production royalty that Tajiri may acquire at any time for US$5 million.

The TAJ shares also provide Middle Island shareholders exposure to Tajiri’s gold exploration projects in Guyana, South America.

“Middle Island welcomes Tajiri’s commitment to the Reo gold project and looks forward to facilitating the orderly transfer of the exploration permits and other assets in Burkina Faso, once registration of Tajiri’s local entity is finalised,” Middle Island Resources said in its ASX announcement.

 

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

St George Mining Claims New Discovery of Nickel-Copper Sulphides at Mt Alexander

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) announced a new discovery of high-grade nickel-copper sulphides at its flagship Mt Alexander project, located in the north-eastern Goldfields.

St George Mining said the first drill hole – MAD152 – at the newly named Radar prospect intersected nickel-copper sulphide mineralisation between 44.2 meyres and 51.7m downhole including intervals of massive nickel-copper sulphides.

The company explained that the hole was drilled to test a new EM conductor it had identified by way of EM surveys completed earlier this month.

The conductor was initially detected by a Moving Loop EM (MLEM) survey that was followed by an optimised Fixed Loop EM (FLEM) survey that confirmed a late-time anomaly, which was modelled with a conductivity of 35,000 Siemens and at a depth of approximately 50m.

St George will carry out a DHEM survey in MAD152 to identify extensions of mineralisation around the hole and to plan follow-up drilling.

The company declared the intersection in MAD152 to be representative of a new discovery in an unexplored section of the Cathedrals Belt.

This, St George said, is important for a number of reasons, including:

1. It opens up an opportunity to drill out a new high-grade prospect, which along with the advanced Investigators, Stricklands and Cathedrals prospects, could add mineralisation to a potential resource at Mt Alexander.

2. It confirms the prospectivity of unexplored areas of the Cathedrals Belt for further high-grade mineralisation: such as the east-west strike of known high-grade nickel-copper sulphides along the Cathedrals Belt is extended by this discovery to 5.5 kilometres, with another 10.5km of the Cathedrals Belt remaining as unexplored or underexplored and the prospectivity of newly identified EM anomalies at the largely unexplored West End and Fish Hook prospects – located on the western and eastern extensions of the Cathedrals Belt, respectively – is elevated by the latest results at Radar.

3. It supports the effectiveness of St George’s exploration techniques being used at the Cathedrals Belt, particularly the critical role of EM surveys in identifying nickel-copper sulphide targets.

4. The increased strike of high-grade mineralisation along the Cathedrals Belt is indicative of a large mineral system. This not only increases the potential to discover more mineralisation along the east-west strike of the Belt but also at depth, in the down-dip direction and associated with the structures that are interpreted to be the likely source through which mafic/ultramafic intrusions hosting nickel-copper sulphides have passed upwards from the Earth’s mantle.

“The discovery of high-grade nickel-copper sulphides with the first ever drill hole in an area with about 10m of transported overburden and more than one kilometre from the nearest known mineralisation on the Cathedrals Belt is an excellent exploration result and a credit to our technical team,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The occurrence of high-grade nickel and copper sulphide mineralisation at shallow depths is rare and we are delighted to have further extended the strike of this type of mineralisation along the Cathedrals Belt to an impressive 5.5 kilometres.

“With multiple EM conductors still to be drilled, including targets at the unexplored West End and Fish Hook prospects, we believe there is strong potential for more high-grade nickel-copper sulphide discoveries.”

 

Web: www.stgm.com.au

 

Kin Mining Completes Cardinia PFS

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THE BOURSE WHISPERER: Kin Mining (ASX: KIN) announced the completion of a Pre-Feasibility Study for the company’s 100 per cent-owned Cardinia gold project in the North-Eastern Goldfields of Western Australia.

Kin Mining claimed the 2019 PFS had confirmed the Cardinia project as being both technically sound and capable of generating solid free cash flows with healthy leverage to the Australian dollar gold price.

The PFS was based on two open pit mining centres at Cardinia and Mertondale which supply a 1.5 million tonnes per annum conventional CIL processing plant centrally located at Cardinia.

The PFS is based on an Ore Reserve Estimate of 7.9 million tonnes at 1.1 grams per tonne gold for 283,000 ounces and a Production Estimate of 11.4 million tonnes at 1.09g/t gold for 398,000 ounces, which delivers a forecast 368,000 ounces of recovered gold.

The Cardinia gold project contains Measured, Indicated and Inferred Mineral Resources of 18.2 million tonnes at 1.44g/t gold for 841,000 ounces of contained gold

“Over the past 12 months Kin has successfully reset the Cardinia Gold Project on a strong foundation of reliable technical and financial estimates which underpin the Pre-Feasibility Study,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The outcomes show we have a project with production potential and significant leverage to the currently strong Australian dollar gold price, however the Board has determined to prioritise opportunities to add higher margin ore feed while development studies continue at an appropriate rate.

“Exploration completed by Kin and previous explorers at the CGP has focused on historic mining centres in areas of surface outcrop.

“Around 60 per cent of the tenement area is located under shallow, transported cover and has been subject to little modern exploration.

“A program of mapping, geochemical sampling and geophysics is under development to target new discoveries in these underexplored parts of proven mining corridors.

““The potential to enhance our mineral inventory through regional consolidation opportunities will also be evaluated given Kin’s location in the active Leonora region with processing infrastructure which has been purchased and partially developed.

“Other alternative strategic options may also be considered.”

 

Email: info@kinmining.com.au

Web: www.kinmining.com.au

 

Cazaly Resources Completes Sale of Parker Range to Mineral Resources

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THE BOURSE WHISPERER: Cazaly Resources (ASX: CAZ) finalised the sale of the Parker Range iron ore project to Mineral Resources (ASX: MIN).

The sale of the project includes the tenements (M77/0741, M77/0742 and M77/0764), the mining information, contracts and authorisations for the Project.

The sale follows Cazaly Resources (ASX: CAZ) receiving a binding Heads of Agreement (HoA) proposal from Mineral Resources to purchase the Parker Range project.

Cazazly had previously agreed commercial terms for the sale of its 100 per cent-owned subsidiary, Cazaly Iron Pty Ltd, which holds the tenements that comprise the project, to Gold Valley Iron Pty Ltd.

The agreement with Gold Valley allowed for an initial three-month due diligence exclusivity period, however Cazaly reserved the right to terminate the exclusivity period should it receive another proposal or offer from a third party which is more favourable to Cazaly and its shareholders.
The Mineral Resources deal fit that description.

The unsolicited HoA proposal from Mineral Resources involves a payment of $2 million cash upon completion of the sale; and a royalty of 50 cents for every dry metric tonne of iron ore extracted and removed from the project area the first 10 million dry metric tonnes.

Cazaly declared the binding HoA proposal from Mineral Resources to be more favourable to the company and its shareholders and subsequently terminated the exclusivity period with Gold Valley.

Cazaly said it had received the cash consideration of $20 million from Minerals Resources and has terminated the Term Sheet with Gold Valley Iron Pty Ltd, which ceases to be in force or effect.

 

Email: admin@cazalyresources.com.au

Web: www.cazalyresources.com.au