De Grey Mining Confirms Extensions at Wingina and Amanda Gold Deposits

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THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported new drilling results from the Wingina and Amanda gold deposits that form part of the company’s Pilbara gold project near Port Hedland in the Pilbara region of Western Australia.

The Wingina deposit hosts shallow near surface mineralisation that has previously been drilled over more than one kilometre of strike length and generally down to approximately 200 metres depth.

It has a current resource of 5.49 million tonnes at 1.6 grams per tonne gold for 287,700 ounces with more than 75 per cent of the resource in the measured and indicated categories.

De Grey Mining said its Recent drilling targeted extension to the mineralisation at depth and to the north east along strike.

New results from Wingina include:

WDH015
6.35 metres at 3.37g/t gold, including 0.75m at 12.2g/t gold; and

WDH016
12.66m at 1.75g/t gold, including 0.81m at 10.95g/t gold.

De Grey completed a program of 25 RC holes at the Amanda deposit utilising a specialised RC drill rig capable of drilling shallow angle RC holes in sloping terrain.

This drilling extended mineralisation beyond the resource model and selected holes were drilled to infill portions of the resources model where the previous rig could not gain access.

New results from Amanda include:

AMRC042
14m at 1.06g/t gold from 29m, including 9m at 1.38g/t gold from 32m;

AMRC046
6m at 1.65g/t gold from 56m;

AMRC049
11m at 0.97g/t gold from 33m;

AMRC050
14m at 0.77g/t gold from 30m;

AMRC053
15m at 0.69g/t gold from 73m; and

AMRC054
17m at 0.76g/t gold from 47m.

“Overall, the results indicate mineralisation remains open along strike and at depth and further resource increases can be expected with further drilling,” De Grey Mining said in its ASX announcement.

“Follow up drilling programs at Amanda are currently being assessed.”

 

Email: admin@degreymining.com.au

Website: www.degreymining.com.au

 

Alliance Resources Identifies Nine New Weednanna Gold Targets

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THE DRILL SERGEANT: Alliance Resources (ASX: AGS) carried out a 3DIP survey at the Weednanna gold deposit, which forms part of the Wilcherry Project Joint Venture in South Australia.

The JV is between Alliance (81.41%) and Tyranna Resources (ASX: TYX) (18.59%), with Alliance moving to 100 per cent ownership in mid-March.

Alliance Resources had the Three Dimensional Induced Polarisation (3DIP) surface geophysical survey conducted over the Weednanna gold deposit during October 2018 by DIAS Geophysical and Gap Geophysics using the DIAS32 system, which is the leading acquisition technology in this field, to help target further areas of mineralisation.

Observations to emerge from the survey include:

Gold mineralisation is closely associated with chargeability bodies that exhibit moderate to high chargeability (>~10mV/V);

The chargeable bodies extend deeper than 200 metres below the surface; and

There is a strong correlation between high density (from an April 2018 gravity survey), high chargeability and high gold concentrations at Weednanna.

The results of the 3DIP survey defined nine new target zones based on where the high chargeability zones correlate with high density zones and are near, or along strike from, known high-grade gold shoots Alliance has delineated via drilling.

Five out of nine targets are shallow, which the company believes highlights the remaining near-surface potential to substantially grow the mineral resource.

“The 3DIP survey has produced a chargeability model that closely correlates with underlying geological detail/mapping and known gold mineralisation,” Alliance Resources said in its ASX announcement.

“Many of the targets appear to correlate with the margins of the known gold shoots and some have clear structural control observed in aeromagnetic and gravity datasets.

“The highly chargeable zones also correlate well with high density zones identified by a detailed 3D gravity inversion model generated in 2018.

“The 3D inversion model suggests there is clear potential for further discoveries at deeper levels than have been currently tested.

“The NW trend with multiple chargeable centres is bounded by a NW-SE trending fault; this is also known to host gold but has not been thoroughly drill tested to date.”

Alliance indicated ongoing RC drilling programs are planned for late March to continue to grow the size of the Weednanna gold deposit by stepping out from existing gold shoots.

It will analyse the 3DIP survey results further in conjunction with the most recent drilling results and existing geophysical datasets to rank targets and plan drill holes for testing in CY2019.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Tyranna Resources Encounters Big Eureka Numbers

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THE DRILL SERGEANT: Tyranna Resources (ASX: TYX) reported assays from an in-pit Reverse Circulation (RC) drilling program conducted at the company’s 100 per cent-owned Eureka gold project outside of Kalgoorlie in Western Australia.

Best results included:

19ERC12
5 metres at 25.6 grams per tonne gold from 33m, including 1m at 89.7g/t gold from 34m;

19ERC04
7m at 3g/t gold from 39m;

19ERC17
12m at 2.6g/t gold from 20m, including 1m at 15.8g/t gold from 26m;

19ERC18
5m at 3.7g/t gold from 23m, including 1m at 13.5g/t gold from 24m; and

19ERC20
9m at 2.5g/t gold from 12m.

Tyranna Resources emphasised the result from hole 19ERC12, claiming it had returned the highest ever grade intersected in the history of the Eureka mine at 1m at 89.7g/t gold, adding that a repeat assay returned 1m at 117.3g/t gold.

This hole also ended in mineralisation with the end of hole (EOH) grade of 1m at 6.7g/t gold.

Tyranna interpreted this result to indicate mineralisation remains open.

The program consisted 23 holes drilled inside the potential production area with 35 per cent of the holes returning an average intercept of seven metres greater than 2g/t gold.

Tyranna said it was also encouraged by four of the holes ending in mineralisation which will require follow up drilling.

“The drilling program has no doubt increased our geological confidence in the Eureka mineralisation,” Tyranna Resources managing director Bruno Seneque said in the company’s announcement to the Australian Securities Exchange.

“We are particularly pleased with the spectacular grades intersected in multiple holes.

“The drilling results have given the company the confidence to push on with the objective of monetising our asset and unlocking the extensional and exploration potential on our Eureka mining leases.”

 

Email: info@tyrannaresources.com

Website: www.tyrannaresources.com

 

St George Mining Drilling Away at Mt Alexander

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) is continuing its drilling campaign of nickel-copper sulphide targets at the company’s Mt Alexander project, located near Leonora in the north Eastern Goldfields of Western Australia.

St George Mining has completed new geophysical surveys at the undrilled Fairbridge prospect, which it claims to have confirmed several conductive targets it has now prioritised for drilling in the current reverse circulation (RC) drill program.

The company said the targets have electrical signatures consistent with sulphide mineralisation and the potential to be associated with the surface nickel-copper sulphide gossans observed at Fairbridge and/or the highly mineralised ultramafic units drilled at the adjacent Stricklands and Cathedrals prospects.

St George described the new conductive targets ready for drilling at the Fairbridge prospect as ‘highly-chargeable anomalies’ that have been identified within the 1,000 metre east-west strike of the Fairbridge prospect.

Several of these anomalies are co-incident with nickel-copper sulphide gossans at surface and the company’s interpretation of new geophysical data suggests the mineralised ultramafic units drilled at the Stricklands and Cathedrals prospects continue into the Fairbridge area and extend down-plunge to the north.

Other drilling at the West End and Investigators prospects has confirmed extensions of the Cathedrals Belt.

St George completed six drill holes at the West End prospect, all of which intersected the western extension of the fault structure that hosts the mineralised ultramafic within the Cathedrals Belt.

Four extensional drill holes completed at the Investigators prospect intersected disseminated nickel-copper sulphides.

St George now has Downhole Electromagnetic (DHEM) surveys underway that are running concurrently with drilling to identify any conductive targets around completed drill holes.

The company anticipates further drilling to be planned for West End and Investigators following a review of the DHEM survey results.

“The drill program at Mt Alexander is now in full-swing with 10 drill holes completed and downhole EM surveys also underway,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“Initial drill results are encouraging and have identified extensions to the Cathedrals Belt.

“Downhole EM surveys in the completed holes will assist in exploring for further nickel-copper sulphides within the Belt.

“The new conductive targets at the Fairbridge prospect are particularly exciting with final modelling of these targets giving us confidence in the potential of further exploration success in our first ever drilling at Fairbridge.”

 

Website: www.stgm.com.au

 

Peel Mining Earns High-Grade Southern Nights Returns

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THE DRILL SERGEANT: Peel Mining released further high-grade results from Resource drilling underway on the Southern Nights deposit, part of the company’s Wagga Tank project in New South Wales.

Peel Mining explained the assays it has received during February represent additional close spaced (20x20m) infill drilling of the Southern Nights Central Zone and drilling for metallurgical and Mineral Resource Estimate purposes.

WTRCDD175 was drilled approximately 30m up-dip of previously reported WTRCDD043 and crosscuts WTRCDD035 a historical hole which had been drilled down the dip of mineralisation.

WTRCDD175:
33 metres at 11.71 per cent zinc, 5.65 per cent lead, 0.19 per cent copper, 147 grams per tonne silver and 1.25g/t gold from 172m including 10.8m at 27.49 per cent zinc, 14.54 per cent lead, 0.5 per cent copper, 409g/t silver and 3.16g/t gold.

“This drillhole intersected a zone of significant shearing and experienced 2.2 metres of core loss from within the 32-metre mineralised interval,” Peel Mining explained in its ASX announcement.

“A value of zero was assigned to all elements in intervals of core loss which is considered conservative.”

WTRCDD180 was drilled as a twin of another previously reported drillhole – WTRCDD150 to provide material for further metallurgical testwork and for Mineral Resource Estimate purposes.

Results for this twin hole showed excellent repeatability of those reported in the earlier WTRCDD150.

WTRCDD180
16.95m at 43.25 per cent zinc, 14.66 per cent lead, 1 per cent copper, 356g/t silver and 3.11g/t gold from 179.15m against the intercept from WTRCDD150 previously reported as 18.2m at 40.3 per cent zinc, 15.21 per cent lead, 0.97 per cent copper, 356g/t silver and 2.77g/t gold from 182m.

The company declared geological logging and portable XRF analyses have also indicated intersections encountered in WTRCDD189, WTRCDD199 and WTRCDD179 further delineating a coherent body of high-grade mineralisation.

“These results continue to confirm the understanding of the high-grade mineralisation which is thought to be steep westerly dipping; covering up to approximately 180 metres strike and has been defined from approximately 120m below surface to approximately 350m below surface,” Peel continued.

“Importantly, this mineralisation remains open down-dip/plunge.

“It should also be noted that focus has been directed on the thickest and highest-grade zone of mineralisation which resides within the Wagga Tank Mudstone however additional mineralisation is also present within the volcanoclastics of the Vivigani Formation and the continuity and tenor of these zones is still being assessed.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Musgrave Minerals Locks-in More Cue Gold Tenure

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THE BOURSE WHISPERER: Musgrave Minerals (ASX: MGV) has entered into an Option Agreement to acquire the non-alluvial gold rights to the Mainland project, located within the boundaries of the company’s Cue gold project in Western Australia’s Murchison goldfields.

Musgrave Minerals mentioned that the Mainland project covers a portion of the company’s prospective Break of Day and Lena Gold Corridor.

The Mainland project comprises a group of seven contiguous prospecting licences covering an area of approximately 837 hectares.

Alluvial gold was first discovered at Mainland in 1893 with several recorded historical mines situated in the project area, the two largest having been the Mainland Consols and Eureka mines.

Musgrave Minerals explained that historical drilling has been intermittently undertaken on selected prospect areas between 1960 to 2003.

The company has commenced compiling historical data, which it expects will enable further assessment and target generation.

“This opportunity consolidates Musgrave’s holding of the prospective Break of Day/Lena gold corridor adding another four kilometres of prospective strike in this exciting gold district,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“The Mainland project area has a long history of alluvial gold production accompanied by historical high-grade basement gold production.

“The project has seen very limited basement drilling and modern exploration as it has been largely held by various prospectors focussed on alluvial mining for many years.”

 

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

 

AVZ Minerals Achieves Encouraging Results at Carriere de l’Este

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THE DRILL SERGEANT: AVZ Minerals (ASX: AVZ) reported results from Mineral Resource drilling undertaken at the company’s Manono lithium and tin project in the Democratic Republic of Congo.

AVZ Minerals received the results from the final two of six reconnaissance drill holes it recently drilled at the Carriere de l’Este prospect.

The company said the results confirmed further widespread, high-grade spodumene lithium mineralisation, including 68 metres at 2 per cent lithium oxide (Li2O) and 858ppm tine in hole CD18DD006.

Ninety samples returned values greater than 2 per cent including five individual samples grading greater than 4 per cent Li2O with the highest value being from hole CD18DD006 from 181 to 182 metres downhole grading 4.65 per cent Li2O.

AVZ interpreted the results from the latest drill holes to demonstrate grade continuity both down-dip and along strike at Carriere de l’Este with both holes starting in soil cover and confirming the presence of a ‘blind’ pegmatite in previously unknown strike extents of the main deposit.

“These last two holes drilled at Carriere de l’Este are of the same lithium grade tenor and intersection widths as those reported on previously – (19th February 2019),” AVZ Minerals managing director Nigel Ferguson said in the company’s announcement to the Australian Securities Exchange.

“Both holes five and six have drilled through high-grade zones averaging over two per cent lithium oxide, mineralisation which was also seen on holes spaced 200 metres along strike.

“Hole five for example generated 56 by one metre assays greater than two per cent lithium oxide with a maximum value in one sample of 3.97 per cent from 166 to 167 metres deep.

Hole six was comparable with 97 samples returning values greater than two per cent including five individual samples grading greater than four per cent lithium oxide which equates to each of the five samples containing in excess of 50 per cent spodumene.

“The highest value from hole six was from 181 to 182 metres downhole and reported 4.65 per cent lithium oxide.

“Carriere de l’Este is unlike Roche Dure in that it has higher-grade zones within well mineralised pegmatite suggesting a more classical zonation model for this large pegmatite.

“Depending on future drilling, this may open up possibilities for high grade blending with Roche Dure mineralisation to shorten pay back periods and is definitely worth considering as we move through the mining study phase currently underway.”

 

Email: admin@avzminerals.com.au

Website: www.avzminerals.com

 

Alliance Resources Grows Weednanna Outside Mineral Resource Model

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THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced results from a round of reverse circulation (RC) drilling carried out in December last year at the Weednanna gold deposit, which forms part of the Wilcherry project in South Australia.

Alliance Resources drilled 17 RC holes at the Weednanna deposit to test for extensions of gold mineralisation in the southern area of the deposit at Shoots 4, 5, 5E, 10, and 11.

The company said the results from this drilling program continued to grow the size of the Weednanna deposit outside of the maiden Mineral Resource model.

Shoots 4 and 5E continued to extend to the south with intersections of:

18WDRC053
8 metres at 5.3 grams per tonne gold from 75m, including 2m at 16.2g/t gold from 76m (Shoot 5E); and

18WDRC054
3m at 12.1g/t gold from 133m (Shoot 4).

Hole 18WDRC066 returned the first high-grade gold intersection from Shoot 11 of 2m at 16.1g/t gold from 126m.

Alliance believes a drill intersection of 6m at 12.7g/t gold encountered from 1m in hole 18WDRC051 may present a new near-surface extension of Shoot 4 or a possible new gold shoot.

“The validity of this intersection is however uncertain as these were the first metres drilled in the program and might be contamination,” the company said in its ASX announcement.

“A twin hole was drilled during February to determine the source of the gold.”

In 2018, Alliance announced a maiden Mineral Resources estimate for the Weednanna gold deposit of 1.097 million tonnes at 5.1g/t gold for 181,000 ounces of gold.

“The results of the December 2018 drilling program have returned significant results that extend Shoots 4, 5E, and 11 outside of the 2018 MRE model and remain open along strike or at depth,” Alliance said.

The Wilcherry project is a Joint Venture between Alliance (81.41%) and Tyranna Resources (ASX: TYX) (18.59%), with Alliance set to rake 100 per cent ownership in mid-March.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Middle Island Resources Launches Takeover Bid on Alto Metals

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THE BOURSE WHISPERER: Middle Island Resources (ASX: MDI) provided Alto Metals (ASX: AME) shareholders something to ponder over the weekend by announcing its intention of an all scrip off‐market take‐over offer for all the issued ordinary shares of Alto Metals.

Middle Island Resources said it had formed the view that the combination of the assets of the two companies would create, among other material benefits to the shareholders, a company with near-term cash flow potential and considerable production and exploration upside.

The all scrip off-market takeover offer will give Alto shareholders five Middle Island ordinary shares for each Alto ordinary share, which the hunter said values its prey at approximately $9.4 million representing a 61 per cent premium over Alto’s last closing price.

According to Middle Island this upside would include access to its processing plant, even though it is currently on care and maintenance, saying this would provide Alto shareholders with an immediate, proximal and cost-effective processing solution for their company’s gold resources that is not otherwise available.

Middle Island is keen to restart its Sandstone gold processing plant and clearly the Alto deposits would provide initial mill feed and critical mass to support its early recommissioning in conjunction with the former’s Two Mile Hill deposits.

Middle Island declared it has received indicative broker support with respect to the takeover for an equity capital raising of approximately $5 million in additional funds to advance the feasibility and recommissioning of the Sandstone plant. Claiming the combination of Middle Island and Alto will consolidate the entire Sandstone greenstone belt and dataset under a single entity.

“Middle Island’s offer is compelling for Alto shareholders, who will receive a significant premium based on the last closing price for their shares and will benefit in the future growth potential of the proposed Combined Group,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“Middle Island will integrate Alto’s assets with Middle Island’s Sandstone gold project, and immediately embark on an updated feasibility study, incorporating Alto’s Mineral Resources, to determine the economics of recommissioning the Sandstone gold processing plant.

“The collective Middle Island‐Alto gold assets offer a substantial growth opportunity for current and future shareholders of the Combined Group, via low capital intensity and a near-term production profile.

“The further potential is to significantly extend this production profile via Middle Island’s Two Mile Hill underground deposits, consolidate further proximal deposits within a 100 kilometre radius, and amalgamate an entire greenstone belt offering significant resource and exploration upside.

“In the view of the Middle Island directors, the premium offered, the funding support, Middle Island’s technical and management expertise, and participation in the combined Middle Island‐Alto upside, makes the bid a compelling proposal.”

As The Roadhouse was going to print there had been no on-market response from Alto Metals, but we will keep an eye out for further developments.

 

Website: www.middleisland.com.au

 

De Grey Mining Expands Resource Potential at Mallina Deposit

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THE DRILL SERGEANT: De Grey Mining (ASX: DEG) has received results from drilling on the Mallina deposit, part of the company’s 1.4 million-ounce Pilbara gold project, located near Port Hedland in Western Australia.

De Grey Mining completed a drill program comprising four diamond tails and 15 RC holes that produced encouraging results showing along strike extensions outside of the existing resource model.

New drill results include:

MLRC253D
4.93 metres at 1.23 grams per tonne gold from 106.32m, including 1.19m at 3.73g/t gold from 109.17m;

MLRC255
5m at 2.04g/t gold from 81m;

MLRC257
6m at 1.29g/t gold from 70m, including 1m at 5.66g/t gold from 70m;

11m at 1.05g/t gold from 101m, including 2m at 2.66g/t gold from 106m; and

14m at 1.05g/t gold from 130m.

MLRC258
4m at 1.52g/t gold from 44m; and

7m at 1.33g/t gold from 89m, including 2m at 2.85g/t gold from 92m.

MLRC260
5m at 1.87g/t gold from 151m.

MLRC261
8m at 1.23g/t gold from 62m, including 2m at 3.08g/t gold from 65m; and

14m at 1.59g/t gold from 75m, including 4m at 3.17g/t gold from 77m.

MLRC269
5m at 1.51g/t gold from 66m.

“The RC drilling targeted a number of selected lodes with step out extensions both along strike and down dip,” De Grey Mining said in its ASX announcement.

“The Central Zone has been extended 50 metres to the west and remains open.

“The step out diamond drill holes targeted both deeper down dip extensions of the previously intersected wide alteration and gold zones on section 609315E and known mineralised lodes for metallurgy test work.”

De Grey has commenced a Sub-Audio Magnetic (SAM) survey that has been designed to provide greater ability to target along strike extensions by providing more confidence in the lateral extents of the controlling mineralised structures and allow for larger drill programs to be designed going forward.

The company expects these larger drill programs will enable larger and more rapid resource extensions to be defined.

Further resource extension drill programs are to be planned based on the results of the SAM survey and the pending diamond core.

 

Email: admin@degreymining.com.au

Website: www.degreymining.com.au