Red 5 Releases KOTH regional Resources

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THE DRILL SERGEANT: Red 5 Limited (ASX: RED) announced the completion of maiden JORC 2012-compliant Mineral Resource estimates for the Rainbow and Severn near-mine deposits at the company’s King of the Hills (KOTH) gold project in Western Australia.

Red 5 said the Resources had been calculated on drilling completed by past owners and highlight the potential to define near-mine open pit resources that will support the broader bulk mining strategic review currently underway at KOTH.

The Resources came in as:

Rainbow: Indicated and Inferred Resource of 1.6 million tonnes at 1.3 grams per tonne gold for 67,000 ounces; and

Severn: Indicated and Inferred Resource of 0.9 million tonnes at 1.6g/t gold for 47,900 ounces.

The company said the Resources provide a solid foundation for its strategy of defining open pit ore sources to provide early mill feed to support a potential development of a stand-alone processing facility at KOTH.

The Rainbow resource is approximately 83 per cent oxide and transition, and Severn is around 69 per cent oxide and transition.

“This is a big free-kick for us and the ongoing KOTH bulk mining strategic review,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“The Rainbow and Severn deposits establish a baseline of open pit Resources within a six-kilometre radius of a potential stand-alone processing plant at King of the Hills which can be developed to provide early mill feed.

“Early cash-flow is important and our objective with this campaign is to delineate sources of oxide and transitional open pit mineralisation that can supplement production from the existing KOTH underground mining operation to feed a potential stand-alone processing plant, should further studies prove positive, during a pre-strip requirement of the KOTH open pit.

“We believe there is excellent potential to continue to grow the near-mine open pit Resource base, with our ongoing regional drilling program designed to progressively test five priority near-mine targets, each of which has the potential to yield further Resources.

“The early success of our regional exploration campaign at KOTH once again demonstrates just how under-explored our broader tenement package is.

“We are confident that we can add to our already significant Resource base with sustained, focused and systematic exploration.

“This is an exciting opportunity for the Company alongside the bulk mining story at KOTH which will unquestionably remain the centrepiece of our growth story over the next few months.”

 

Email: info@red5limited.com

Website: www.red5limited.com

 

Galan Lithium Confirms High-Grade Lithium over 143 Metres

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THE DRILL SERGEANT: Galan Lithium (ASX: GLN) received final assays from the third drillhole (C‐03‐19) drilled at the company’s Candelas lithium brine project, located in Catamarca province, Argentina.

The drillhole is located approximately 2.5 kilometres south of the company’s maiden drillhole (C‐01‐19), which provided results including an intercept of 192 metres at 802 milligrams per litre (mg/l) lithium with low impurities.

Following downhole geophysical logging several packer tests were performed and samples collected and sent for analyses.

Field tests and logging indicated a substantial intercept of brine where assays confirmed an intercept of 143m at 784mg/l lithium from 311m to 454m.

The company explained that following sampling of drillhole C‐04‐19 the rig will be moved north with drilling to focus on resource definition in the northern Candelas channel area.

Permitting for further drilling beyond the initial five holes approved is advanced and expected in the near term.

“The results to date confirm that a potentially substantial volume of high quality, low impurity lithium bearing brine exists over a large area and the company remains on target to define a resource in Q3 this year,” Galan Lithium said in its ASX announcement.

 

Website: www.galanlithium.com.au

 

Spectrum Metals Encounters High-Grades at Magenta and Penny West

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THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) received the final assays for the maiden drilling program undertaken at the company’s 100 per cent-owned Penny West gold project near Youanmi in Western Australia.

Spectrum Metals received results from three holes at the target that included:

SPWRC009
1 metre at 11.5 grams per tonne gold from 86m, within 3m at 5g/t gold from 86m; and

SPWRC010
1m at 7.9g/t gold from 58m.

Results also returned assays from the three remaining holes drilled at Penny North including:

SPWRC032
2m at 12.9g/t gold from 186m and 1m at 11.9g/t gold from 196m; and

SPWRC033
3m at 1.8g/t gold from 171m.

Spectrum Metals said the results open another area of focus at Magenta and also shows that high-grade gold mineralisation exists at either end of a 1.4-kilometre-long ‘gap zone’ that has no RC drilling.

The company claimed the drilling at Magenta confirmed the high-grade structure remains open in all directions and has now extended the strike length of this new zone to over 100 metres.

Results from the remaining RC holes from Penny North extended the high-grade to the north by a further 40m.

Results to the southern end of Penny North demonstrate the structure continues.

Phase II of Spectrum’s RC drilling program will kick off immediately to target areas underneath and south of the Penny West pit, extensions to the Penny North discovery and beneath the high-grade mineralisation at Magenta and Columbia.

“We are very excited to be moving so quickly into our Phase II drilling program at Penny West with so many high-grade targets to follow up on from our Phase I program,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“In addition, we have the potential of again finding further high-grade mineralisation below previous drilled intercepts at Penny South, Magenta and into the ‘gap zone’.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Calidus to Raise $2.16M Through Strategic Placement

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THE BOURSE WHISPERER: Calidus Resources (ASX: CAI) announced a strategic placement of 80 million shares at an issue price of 2.7 cents a share, for a total of $2.16 million, to Alkane Resources (ASX: ALK).

Alkane Resources is a New South Wales gold producer with a market capitalisation of around $120 million.

Calidus declared the proceeds of the placement, combined with its existing bank balance will ensure the company is cashed up to complete the pre-feasibility study (PFS) currently underway on its Warrawoona gold project in the Pilbara and conduct further drilling of regional targets and resource infill and extensional areas.

The new shares are priced at a 13 per cent premium to Calidus’ last closing price of 2.4 cents before the deal was finalised and will be allotted in one tranche pursuant to the company’s existing capacity under ASX Listing Rules.

“This strategic placement to Alkane means that Calidus can extend the existing drilling program to target new and additional regional and near-resource areas,” Calidus Resources managing director Dave Reeves said in the company’s announcement to the Australian Securities Exchange.

“This drilling is being done in parallel with the PFS to help ensure that we not only grow the gold inventory, but we also achieve our target of showing the market the strong financial returns we believe will be associated with the Warrawoona gold project.”

 

Email: info@calidus.com.au

Website: www.calidus.com.au

 

Hillgrove Resources Shuffles Seats Around Boardroom Table

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THE BOURSE WHISPERER: Hillgrove Resources (ASX: HGO) informed the market that Steve McClare is stepping down from his company roles as managing director and CEO.

Hillgrove Resources said the move was in keeping with the company’s scale down of operations at Kanmantoo and the recently-announced sale of the Pumped Hydro Energy Storage (PHES) project rights to AGL Energy Limited (AGL).

Large scale mining at the Kanmantoo open pit copper mine is coming to an end, with 85 employees ceasing employment at Kanmantoo on top of 35 employees who have left and not been replaced over the past few months.

Hillgrove explained the remaining workforce will focus largely on the final extraction of ore from the pit by the end of May and the processing of stockpiled ore during the next 12 months, together with site rehabilitation works, exploration activities and facilitating the development of the PHES project being run by AGL.

Hillgrove Resources chairman John Gooding thanked McClare for his work in establishing a pipeline of growth projects for the future.

“Steve steered the company through some very dark days, but he has inspired our employees with his work ethic and creativity and has always maintained his optimism about, and dedication to Hillgrove,” Gooding said in the company’s announcement to the Australian Securities Exchange.

McClare will clean out his desk on 2 May 2019 to pursue other opportunities, when Lachlan Wallace, who has been General Manager at Kanmantoo since McClare became MD, is appointed to the role of CEO on an interim basis.

Wallace has been with Hillgrove for seven years.

His successor as interim head at Kanmantoo will be Glenn Norris who has been Concentrator Manager since the mine was commissioned.

Hillgrove anticipates both these appointments will be finalised soon.

 

Website: www.hillgroveresources.com

Saturn Metals Makes Strong Gold Intersections at Apollo Hill

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THE DRILL SERGEANT: Saturn Metals (ASX: STN) announced drill results from holes 14 to 24 of a planned 48-hole, RC and diamond drilling campaign underway at the company’s 100 per cent-owned Apollo Hill gold project, near Leonora in the Western Australian goldfields.

Results include:

AHRC0128
26 metres at 1.19 grams per tonne gold from 1m, including 10m at 2.1g/t gold from 8m; and

AHRC135
22m at 1.5g/t gold from 128m, including 12m at 2.33g/t gold from 128m.

Saturn Metals said the results would help it define a continuous higher grade (+2g/t gold) lode on the footwall side of the Apollo Hill Resource envelope.

“These excellent results will be a great addition to our next resource update planned for the second half of 2019,” Saturn Metals managing director Ian Bamborough said in the company’s announcement to the Australian Securities Exchange.

“It is great to see the continuity of improved grade within the current resource envelope.

“In addition, further strong intersections such as AHRC0127 returning 6 metres at 5.21 grams per tonne gold from 37m in the hanging wall zone, continue to give us cause for excitement.”

Saturn Indicated it was planning to complete another 5,000 metres of drilling at Apollo Hill in the coming months.

Assay results from the ongoing drilling program will be reported as received.

 

Email: info@saturnmetals.com.au

Website: www.saturnmetals.com.au

 

Exore Resources Grows Antoinette Gold Region

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THE DRILL SERGEANT: Exore Resources (ASX: ERX) has completed drilling that as extended the Antoinette region at the company’s Bagoe project in northern Cote d’Ivoire.

Exore Resources claimed a new bedrock discovery at ‘Antoinette South’ along strike of the Central zone, with multiple shallow, mineralised lodes intersected, all of which remain open.

First pass RC results include:

16m @ 1.97g/t gold from 139m;
14m @ 2.06g/t gold from 30m;
11m @ 2.39g/t gold from 37m;
10m @ 1.83g/t gold from 62m.

At Antoinette Central further shallow, high-grades were intersected by RC resource definition drilling, extending drilled strike length to 850m remaining open in all directions.

Further results include:

5m @ 3.78g/t gold from 74m;
4m @ 4.84g/t gold from 106m;
7m @ 2.14g/t gold from 114m;
2m @ 6.79g/t gold from 2m;
9m @ 1.28g/t gold from 58m; and
4m @ 2.56g/t gold from 36m.

A gap measuring 900m by 400m between Antoinette Central and Antoinette South remains untested, although Exore indicated a geochemistry and structural interpretation highlighted the intersection of south-west and north-east trends as a priority drill target.

The company claimed another new bedrock discovery at the Antoinette East target.

Artisanal mine workings indicate some 600m of potentially mineralised strike with first pass RC drilling returning high-grades, including 5m at 18.71g/t gold from 64m.

An outstanding AC result was achieved at Antoinette West of 30m at 1.05g/t gold from 8m (ended in grade), testing northern strike extension.

Exore declared the exploration drilling a ‘success’, having attained its goal of identifying new resource targets and confirming Antoinette as a substantial gold system.

RC drilling is ongoing at Antoinette and AC drilling continues at Veronique.

“The completion of around 8,500 metres Phase One RC resource definition drilling at Antoinette Central, provided the first opportunity to undertake reconnaissance RC drilling on a number of the surrounding untested targets,” Exore Resources managing director Justin Tremain said in the company’s announcement to the Australian Securities Exchange.

“Each of these targets has delivered excellent results, with the Antoinette South discovery being extremely encouraging.

“Drilling results at Antoinette South, combined with soil sampling geochemical data and structural interpretation, show the potential for north-west strike extension of the South zone to intersect the south-west strike extensions of the Central zone, providing an exciting and priority drill target.

“These latest RC and AC results from exploration drilling in the southern, eastern and western areas of Antoinette show the potential to delineate a truly substantial gold system.

“Two rigs continue to operate at Antoinette and Veronique, and we are looking forward to reporting further exciting drilling results from each area in the coming weeks.”

 

Email: info@exoreresources.com.au

Website: www.exoreresources.com.au

 

Galileo Mining Defines New Drill Target

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THE DRILL SERGEANT: Galileo Mining (ASX: GAL) completed a review of historic work undertaken at the company’s Yardilla South prospect in the Fraser Range Province of Western Australia.

A review of the Yardilla South prospect revealed historic drilling did not adequately test a chargeable feature identified from historic Induced Polarisation (IP) geophysical surveying.

Galileo has completed an updated interpretation of the IP survey, a re-log of the original RC chips, and petrographic analyses of selected intervals from the historic drilling.

Galileo Mining said the review defined the new, drill-ready gold target at Yardilla South that is just two kilometres from the company’s existing Empire Rose nickel-copper target.

Galileo intends testing both prospects in its upcoming drilling program scheduled to commence in mid-May 2019.

“Both the Yardilla South and Empire Rose prospects have geophysical signatures consistent with mineralisation and the targets are further supported by geochemical and petrographical data obtained from drill samples,” Galileo Mining managing director Brad Underwood said in the company’s announcement to the Australian Securities exchange.

“At Yardilla South we have identified a promising geochemical signature above a geophysical target and expanded our focus in the Fraser Range to include precious metals.

“The expanded focus complements our nickel-coper exploration at Empire Rose where we have previously reported shallow drill results, including 36 metres at 0.2 per cent nickel from 18m, along with encouraging geology, suggesting good potential at depth.”

 

Email: info@galmining.com.au

Website: www.galmining.com.au

 

Ardea Resources Advancing NSW Portfolio IPO

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THE BOURSE WHISPERER: Ardea Resources (ASX: ARL) is advancing its spin-out of the company’s New South Wales assets via an Initial Public Offer (IPO).

Ardea Resources said it had completed technical reviews and field programs confirming high-prospectivity mineral targets across the IPO tenure.

Ardea controls a suite of tenements in NSW within the Lachlan Fold Belt that hosts multiple bulk-tonnage deposits such as Northparkes, Cadia-Ridgeway and Cowal.

The company has data validation underway for the Lewis Ponds gold-base metal project with resource estimation to follow.

The Mount Aubrey epithermal gold project has had a 3D model completed for historic gold drilling, while at the Yeoval, Copper Hill East, Ophir and Wiseman’s Creek projects located on the Lachlan Transverse Zone and at Gundagai, historic exploration data has been compiled.

Where land access was secured, vehicle mounted soil auger or conventional manual soil geochemistry has been completed with a view to defining drill targets.

Data compilation is current at Calarie and Restdown, and land access negotiations have commenced.

“The IPO of our NSW assets is a part of Ardea’s three-pronged value creation strategy,” Ardea Resources CEO Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“This prospective 2,000 square kilometres of gold and base metal tenure across our 100 per cent-controlled NSW projects will underpin a dedicated IPO, with distribution of free in specie shares to Ardea shareholders.

“The IPO is advancing as planned, with target definition followed by on-ground exploration completed over key components of each project area.

“Initial results are highly encouraging and have confirmed multiple base and precious metal targets, which highlight the prospectivity of the NSW project portfolio with follow up programs planned to test these targets post IPO.”

 

Email: ardea@ardearesources.com.au

Website: www.ardearesources.com.au

 

Breaker Resources Extends Bombora Deposit

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THE DRILL SERGEANT: Breaker Resources (ASX: BRB) announced recent drilling had continued to extend the 1.1-million-ounce Bombora gold deposit at the company’s Lake Roe project, east of Kalgoorlie in Western Australia.

Breaker Resources said the latest results also continue to enhance the deposit’s open pit potential, which is the subject of an ongoing prefeasibility study (PFS).

The company competed drilling designed to identify the outer limit of open pit mining in preparation for finalising the open pit PFS, or to reassess the Resource classification in several areas.

Deeper drilling, aimed at further assessing the scope for underground mining, encountered a best intersection of 6.82 metres at 36.87 grams per tonne gold (BBRD1135), further enhancing the potential at depth.

Drill hole BBRD1135 also returned an intercept of 14m at 18.86 g/t gold from the Tura lode, which Breaker claimed as being the highest gram-metre result recorded from the lode to date.

“Preparation for the revised resource model was taking longer than anticipated due to the scale and geometry of the deposit and the volume of data,” Breaker Resources executive chairman Tom Sanders said in the company’s announcement to the Australian Securities Exchange.

“It is vital that we get the modelling and geological domaining right to build a solid technical foundation in preparation for the open pit PFS.

“It is well worth taking a little more time to get this right and ensure we maximise the opportunity that we have.

“We also need to build flexibility into the open pit PFS, such as the use of variable lower cut-off grades, to gauge the effect on mineable ounces.

And we need to do this for three lode orientations and zones of stockwork mineralisation extending over three kilometres.

“The pause in the resource drilling will give us time to reset and plan the next phase, although this pause is likely to be short-lived as the Bombora deposit is still open in all dimensions.

“In the meantime, ongoing exploration with an aircore and reverse circulation (RC) drill rig is planned to open up new work areas and further expand the discovery footprint.”

 

Email: breaker@breakerresources.com.au

Website: www.breakerresources.com.au