Red 5 Limited Increases King of the Hills Resource

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THE DRILL SERGEANT: Red 5 Limited (ASX: RED) reported an updated bulk mining Mineral Resource estimate for the company’s King of the Hills (KOTH) gold project, located in the Eastern Goldfields region of Western Australia.

The updated estimate comprises 66 million tonnes at 1.5 grams per tonne gold for an estimated 3.11 million ounces of contained gold.

The updated Resource represents a 65 per cent increase in contained gold over the previous Mineral Resource estimate announced in December 2018, with 76 per cent of the Resource, 53.1 million tonnes at 1.4g/t gold for 2.35 million ounces, now classified in the higher confidence Indicated Resource category.

The Resource includes open pit and underground components, comprising:

Open pit: Indicated and Inferred Resource of 48.5 million tonnes at 1.3g/t gold for 2 million ounces of contained gold (0.4g/t Au cut-off); and

Underground: Indicated and Inferred Resource of 17.5 million tonnes at 2g/t gold for 1.11 million ounces of contained gold (1.0g/t Au cut-off).

Red 5 said there was potential for further Resource growth, with a large proportion of the prospective Eastern Margin Contact remaining largely untested by drilling.

“This result furthers our goal of developing a large standalone bulk mining and processing operation at King of the Hills,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The upgraded Mineral Resource clearly demonstrates the scale and potential of this exceptional project, which we believe has the potential to form the cornerstone of a substantial mid-tier Australian gold business with the resource base, production profile and mine life required to attract global institutional investor interest.

“The updated Resource provides the foundation for a Pre-Feasibility Study to evaluate the economics of a potential stand-alone operation at KOTH which is now well underway.

“This PFS will focus initially on the open pit Resource, supplemented by the Resources currently being evaluated by our ongoing regional exploration program such as the recently announced Resources for the Rainbow and Severn satellite deposits.

“In addition to the results of the PFS, further news from the underground diamond drilling program – which is continuing to deliver exceptional results which have not been fully captured in this Resource upgrade – will be released in due course.

“The results being generated have demonstrated the potential for further significant growth in the Resource both down-plunge and along strike.”

 

Email: info@red5limited.com

Website: www.red5limited.com

 

Black Cat Syndicate Encounters Further High-Grade Drill Results

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THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) updated the market on recent activities at the company’s Bulong gold project in Western Australia that include initial results for sub-audio magnetic (SAM) targets along the project’s Myhree and Boundary corridor.

Black Cat Syndicate said it had been encouraged by results from initial drilling of the its priority SAM targets between Myhree and Boundary with all targets demonstrating gold mineralisation, confirming SAM surveys as an effective tool for targeting gold at Bulong.

Exploration drilling on the SAM Target 1 returned thick, high-grade results, including:

19BORC007
6m at 4.67 grams per tonne gold from 60m and 9m at 2.13g/t gold from 48m; and

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7m at 1.44g/t gold from 72m.

Black Cat indicated these results will be followed up with further drilling to delineate the higher-grade mineralisation at the intersection of SAM Targets 1 and 4.

Exploration drilling along SAM Target 2 intersected a mineralised structure on the geophysical target.

Results include:

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3m at 1.06g/t gold from 56m; and

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1m at 0.97g/t gold from 71m.

Infill and extensional drilling on the Boundary South lode continued to provide mineralised intercepts, including:

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5m at 2.95g/t gold from 107m; and

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4m at 1.49g/t gold from 46m.

Black Cat expects the intercepts to increase Resources and to upgrade from Inferred to Indicated when new Resources are released for Myhree in July 2019 and for other deposits during the September 2019 quarter.

RC drilling is currently underway on the northern end of Myhree.

“The drilling results on the interpreted SAM targets are extremely encouraging,” Black Cat Syndicate managing director Gareth Solly said in the company’s announcement to the Australian Securities Exchange.

“The drilling at SAM Target 1 shows that the intersection of the NS and NE structures contains thick, high-grade mineralisation.

“At SAM Target 2, we have identified a mineralised structure providing a clear vector towards potentially high-grade mineralisation.

“SAM surveys are proving to be an effective targeting tool at Bulong.

“The SAM survey over Greater Woodline is expected to be available in June 2019.

“Other SAM surveys to the north of Boundary and to the south of Myhree are planned for the September 2019 quarter.

“In the meantime, extensional drilling has already recommenced at SAM Target 3 where exceptional mineralisation was drilled during April 2019.

“We continue to close the undrilled gap along this strongly mineralised corridor.”

The mineralised strike across the Myhree and Boundary deposits now totals approximately 965 metres while the untested area between the deposits has been reduced to around 600m with priority targets between to be drilled in the next three months.

 

Email: admin@blackcatsyndicate.com.au

Website: www.blackcatsyndicate.com.au

 

Matsa Resources Strikes 5 Year Ore Purchase Agreement with AngloGold Ashanti

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THE BOURSE WHISPERER: Matsa Resources (ASX: MAT) has executed an Ore Purchase Agreement with AngloGold Ashanti Australia covering the purchase of ore from the former’s Red October mine which is to be treated at the AGAA-owned Sunrise Dam gold mine, for up to five years.

Matsa Resources said the terms of the agreement remain confidential; however, it did say that costs and revenues of the ore purchase agreement are entirely consistent with the parameters applied in its previously published mining studies.

The 3.8 million tonne per annum mill at the Sunrise Dam gold mine is located approximately 60 kms from the Red October gold mine and provides Matsa with access to a nearby milling solution for its Stage 1 production ore and for a further 4.5 years thereafter.

Matsa has previously delivered ore from its Fortitude and Red Dog gold mines to Sunrise Dam and remains confident in the outcomes of the ore processed there.

The company will be responsible for mining and transporting the ore to Sunrise Dam with AGAA taking possession of ore once delivered.

Matsa Resources declared the agreement will allow it to progress mining at the Red October gold mine at a relatively low capital cost.

“The execution of the agreement with AngloGold Ashanti continues our strong relationship and builds on the MoU both parties entered into in mid-2018,” Matsa Resources executive chairman Paul Poli said in the company’s announcement to the Australian Securities Exchange.

“Previous mining campaigns at Fortitude and Red Dog have been successfully processed at Sunrise Dam with minimal fuss and we expect this to be no different.

“The fact that AngloGold are prepared to potentially accept all ore from Red October for up to five years is testament to this as Matsa looks to develop a longer term mine plan in the future.”

Matsa added that while production has commenced at Red October, as previously advised, there has been a methodical build up to bringing ore to surface as finalisation of a number of items is completed and to ensure that an ore purchase agreement was in place to ensure an orderly transition into full scale mining.

The company expects first delivery of ore to Sunrise Dam will occur by the end of June 2019.

 

Email: reception@matsa.com.au

Website: www.matsa.com.au

 

Metro Mining Declares Continued Supply to Chinese Bauxite Market

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THE BOURSE WHISPERER: Metro Mining (ASX: MMI) reassured the market bauxite from the company’s Bauxite Hills Mine was still being delivered to its Chinese customer.

Metro Mining cited reports in the Chinese Press regarding temporary closure of Alumina refinery capacity in Shanxi province following environmental audits by Chinese authorities, reporting that Xinfa Group’s Shanxi Jiaokou Refinery being one plant impacted by the closure.

Metro explained that Shanxi is an inland province and Xinfa source 100 per cent of their bauxite to feed this refinery from domestic sources within Shanxi.

The Xinfa aluminium business owns and operates six alumina refineries in China, of which Jiaokou is one and the other five refineries remain in operation with no restrictions.

Metro has in place a long-term offtake contract with Xinfa and has been supplying material from its Bauxite Hills Mine since the commencement of operations in April 2018.

Metro’s bauxite is supplied to Xinfa’s Refinery located in the coastal province of Shandong, which is completely unaffected by any of the current environmental issues.

Metro is continuing to supply bauxite to Xinfa as planned under this offtake agreement.

“Metro and Xinfa have formed a strong and mutually beneficial relationship over a number of years,” Metro Mining CEO Simon Finnis said in the company’s announcement to the Australian Securities Exchange.

“We meet regularly to discuss ways to build on this sound footing, and we look forward to this partnership continuing to flourish as Bauxite Hills continues to deliver on its commitment to Xinfa.”

 

Email: info@metromining.com.au

Website: www.metromining.com.au

 

Tanga Resources Permitted for Hagenhof Drilling

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THE DRILL SERGEANT: Tanga Resources (ASX: TRL) announced it has received the Environmental Clearance Certificate (ECC) for the company’s 100 per cent-owned Hagenhof copper project in Namibia.

Tanga Resources said it now has all approvals required for its maiden RC drilling program at Hagenhof, which is expected to commence in the coming weeks.

The plus-2,000 metre drill program will initially focus on the Main Gossan to test the grade and tenor of the of historical copper mineralisation reported from previous diamond drilling.

Subsequently the program will test additional targets the company recently identified over an eight-kilometre copper bearing stratigraphic horizon which trends east of Main Gossan.

The company indicated a recently completed ground magnetic survey over Main Gossan, Liv’s Hill and Copper Cap will assist in refining targets for the planned drilling program.

“With the Environmental Clearance Certificate secured we are now fully permitted to commence our maiden drill program at Hagenhof,” Tanga Resources CEO Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“This program will initially follow up on the historical Phelps Dodge drilling to confirm the grade and tenor of the significant copper mineralisation previously reported at the Main Gossan, before going on to test several additional targets which host extensive stratabound copper and gold mineralisation.

“We are really encouraged by the exploration results that we have received to date and believe this drilling program is the next step in unlocking the significant copper potential we are seeing at Hagenhof.”

 

Email: info@tangaresources.com.au

Website: www.tangaresources.com.au

 

BCI Minerals Completes Mardie PFS Optimisation Study

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THE BOURSE WHISPERER: BCI Minerals (ASX: BCI) completed a pre-feasibility study (PFS) Optimisation Study for the company’s Mardie salt & potash project, located on the Pilbara coast of Western Australia.

BCI Minerals said the PFS report supported the technical and financial viability of the Mardie project by delivering improved economics along with other changes that include an increase in salt production from 3.5 million tonnes per annum to 4 million tonnes per annum; Sulphate of Potash (SOP) production increasing from 75,000 tonnes per annum to 100,000 tonne per annum.

The company indicated that both salt and SOP would now be exported via a port at Mardie, eliminating all road haulage costs while the operating life of the project has increased from 30 years to 60 years.

Following completion of the PFS, BCI initiated a definitive feasibility study (DFS) and is currently progressing project designs, tenure, environmental approvals and early construction works for the project.

As part of initial DFS planning activities, BCI investigated a number of optimisation opportunities, most notably an increase of salt and SOP production along with the development of an export facility at the Mardie site.

The PFS Optimisation Study has incorporated these initiatives into the development case, proving that they will add value to, and further de-risk, the Mardie project.

“The recent approval by the Minister for Ports for an export facility at the Mardie project site and PFS flowsheet optimisation work resulting in higher production targets, support important amendments to our DFS scope,” BCI Minerals managing director Alwyn Vorster said in the company’s announcement to the Australian Securities Exchange.

“The PFS Optimisation Study has shown these amendments will deliver lower operating costs and improve the overall project economics.

“With salt, Mardie is expected to be cost competitive with existing large WA salt operations owned by major companies.

“Given SOP is a by-product of salt production and its location on the coast, Mardie should logically have a SOP on-ship cost of $50 to $100 per tonne lower than any other WA SOP projects that are located 800 to 1,000 kilometres from their preferred port.”

 

Email: info@bciminerals.com.au

Website: www.bciminerals.com.au

 

Exore Resources Encouraged by Liberty Drilling Results

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THE DRILL SERGEANT: Exore Resources (ASX: ERX) released results from its maiden reverse circulation (RC) drilling program at the company’s Liberty project in northern Cote d’Ivoire.

Exore Resources explained this to be the first ever RC drilling at the Liberty project and has intersected multiple, shallow mineralised lodes along 1,600 metres of strike at the Liberty 2 prospect.

Results included:

13 metres at 2.57 grams per tonne gold from 4m;
7m at 3.67g/t gold from 53m;
6m at 4.28g/t gold from 49m; and
8m at 2.50g/t gold from 36m.

Exore claimed the initial phase of RC drilling at Liberty 2 intersected high-grade gold in both oxide and fresh rock beneath aircore (AC) drilling intercepts.

The mineralisation remains open at depth and in all directions.

“We are pleased to announce these exciting results from the first ever RC drilling undertaken within the Liberty project,” Exore Resources managing director Justin Tremain said in the company’s announcement to the Australian Securities Exchange.

“The first pass RC drilling at Liberty 2 was wide spaced at 100 to 200 metres and represents the third discovery area for the Exore team.

“Like Antoinette and Veronique, Liberty 2 has substantial scale potential with mineralisation defined over 1,600 metres of strike.

“The results continue to demonstrate the potential to define substantial gold resources within Exore’s Cote d’Ivoire gold project.

“Two rigs continue to operate continuously, and we look forward to reporting further drilling results from Veronique and Antoinette shortly.”

Exore is continuing to operate two rigs on site at the company’s Bagoe project with an RC rig concentrating on the Antoinette region that will be drilling further resource definition holes in the Central zone, as well as further exploration holes in the West, South and East zones and other target areas.

Further RC results from the Antoinette area are expected in the coming weeks.

An AC rig is undertaking drilling at the large, high tenor Veronique gold-in-soil anomaly, following up on the firts five aircore lines, spaced 400m apart, testing the central 1.6 kilometres of the plus-eight-kilometre Veronique target, which previously returned highly anomalous results.

 

The Resources Roadhouse sat down with Justin Tremain at the recent RIU Sydney Resources Roundup

– WATCH THE INTERVIEW HERE

 

Email: info@exoreresources.com.au

Website: www.exoreresources.com.au

 

Calidus Resources has Warrawoona PFS on Track for July Finish

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THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) declared the pre-feasibility study currently underway at the company’s Warrawoona gold project in the Pilbara region of Western Australia is progressing well and is on track for completion in July.

The company reported that all the information it has gathered so far has demonstrated the Warrawoona project, which has a total Mineral Resource (Indicated and Inferred) of 1.25 million contained ounces, would have a simple layout and processing route.

“The pre-feasibility study is now well advanced and it already shows that Warrawoona is shaping up as a very simple development scenario,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“The completed mine design on the outcropping Klondyke shear shows a single, two-kilometre-long continuous pit.

“The process flow sheet that has been locked in results in a very simple primary crush, SAG mill comminution circuit, followed by a gravity gold and conventional carbon-in-leach (CIL) recovery plant.

“This conventional layout will also have the benefit of a modest capital and operating cost to build and operate.

“The tailings are proposed to be thickened and disposed in a valley fill tails dam which will result in a much smaller tails dam embankment being required compared to conventional paddock dams, thereby reducing capital for this component of the study.

“Sustaining capital is also negated as no upstream lifts of walls are required as in the case of paddock dams.

“Exploration drilling for water has now been completed, with good sources of high-quality water identified close to the processing plant.

“The drilling rig has now moved back to regional exploration and I look forward to updating the market on this as results become available.”

The Resources Roadhouse spoke with Calidus Resources managing director Dave Reeves at the recent RIU 2019 Sydney Resources Roundup – WATCH THE INTERVIEW HERE

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Breaker Resources Raises $6.3M to Advance Lake Roe Project

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THE BOURSE WHISPERER: Breaker Resources (ASX: BRB) has undertaken a $6.3 million placement involving approximately 21 million shares at an offer price of 30 cents per share.

Breaker Resources said the placement had received strong support from institutional and sophisticated investors based in Australia and Europe with Bell Potter Securities acting as lead manager.

The company indicated the funds raised via the placement will be used for advancing the company’s Lake Roe gold project near Kalgoorlie in Western Australia.

The funds have been earmarked for further drilling as part of Breaker’s strategy to extend the existing 1.1-million-ounce Bombora Resource within the Lake Roe project and advancing the open pit pre-feasibility study (PFS) on Bombora.

Extra drilling will be aimed at further discoveries at Lake Roe.

“A resource update is planned for July 2019 and the completion of a PFS is anticipated two to three months later,” Breaker Resources said in its ASX announcement.

 

Email: breaker@breakerresources.com.au

Website: www.breakerresources.com.au

 

FYI Resources Reports High-Quality Drill Results

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THE DRILL SERGEANT: FYI Resources (ASX: FYI) received results from a recently completed drilling program undertaken at the company’s 100 per cent-owned Cadoux kaolin project (EL/4673) in Western Australia.

FYI Resources said the results came from a combination of diamond (DDH) and reverse circulation (RC) drilling and have confirmed the presence of high-grade, high-quality high purity alumina (HPA) feedstock characteristics.

The company indicated the drilling data and results will assist in progressing the current bankable feasibility study (BFS) and project permitting.

FYI said the combined RC and diamond drilling program was carried out at the Cadoux kaolin project to meet several key technical project objectives and contribute to delivery of a robust BFS for the company’s integrated HPA strategy.

As FYI progresses the BFS and commences pilot plant project studies, undertaking the detailed drilling campaign provides the company with an increased understanding of the project’s metallurgical model in terms of grade and variation of the deposit as a feedstock.

The drilling should also increase FYI’s technical understanding and confidence in the deposit for an upgrade from a Measured to a Proven Reserve for the first phase of mining as well as grade control data for the first phase of mining, increasing the predictability of the future production schedule.

“The program and subsequent results of the latest round of drilling are particularly pleasing as it confirms our view that the quality of the Cadoux kaolin has excellent feedstock characteristics for HPA processing and it also provides us with specific detailed information to finalise our environmental permitting and mining study phases in preparation for mine plan application – well ahead of normal submission timeframes,” FYI Resources managing director Roland Hill said in the company’s announcement to the Australian Securities Exchange.

 

Website: www.fyiresources.com.au