Cardinal Resources Granted Namdini Expansion

THE BOURSE WHISPERER: Cardinal Resources (ASX: CDV) received approval to expand the current Mining Licence for the company’s Namdini gold project in Ghana.

Cardinal Resources’ subsidiary Cardinal Namdini Mining Limited was granted a Large‐Scale Mining License covering the Namdini Mining License by the Minister for Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in 2017.

The Large‐Scale Mining Licence originally covered 19 square kilometres in the Dakoto area of the Talensi District in the Upper East Region of Ghana that has now been expanded to 63sqkm with the grant covering an initial period of 15 years commencing in 2020 and is renewable.

Cardinal Resources said the expanded Large‐Scale Mining Licence allows it to optimise and de‐risk mine and infrastructure design and optimise financial outcomes as the company continues to progress the FEED program.

“It is most pleasing to have the Minister for Lands and Natural Resources and the Minerals Commission of Ghana support our Mining Licence area expansion,” Cardinal Resources chief executive officer / managing director Archie Koimtsidis said in the company’s announcement to the Australian Securities Exchange.

“The expansion aligns with the company’s plan to not only significantly optimise the location of key infrastructure such as tailings storage facilities, stockpiles and waste dumps but also to further explore financial benefits during the Front‐End Engineering and Design (FEED) of the Namdini project.

“Further, it allows the company to expand its exploration activities immediately south of Namdini which has great potential along the southern extension of the Namdini shear.”

Cardinal is preparing development of the Namdini gold project, subject to concluding project development financing.

Once developed, the company expects the Namdini gold project to produce over 360,000 ounces per annum for the first two years of operation and over the life of mine is expected to produce an average of 287,000 ounces per annum.

A Definitive Feasibility Study completed in late 2019, indicated encouraging economics, including a post‐tax NPV of over US$958 million which is capable of generating over US$1.55 billion in undiscounted project cashflow (assuming a gold price of US$1,550/oz).




Moho Resources Completes Aircore Drilling at Burracoppin

THE DRILL SERGEANT: Moho Resources (ASX: MOH) completed its first aircore drill program to follow up gold and arsenic anomalies on the Crossroads prospect at the company’s Burracoppin gold project in Western Australia.

Moho Resources drilled 37 reconnaissance air core holes across coincident gold and arsenic anomalies in soils and auger drill samples at the Crossroads prospect during March 2020.

The air core drilling also traversed a north – south structure interpreted by Moho’s consultant geophysicist and a re-evaluated EM anomaly.

Lithologies noted during drilling included biotite schist/amphibolite, granite and quartzite.

“Drill samples have been submitted to SGS for gold and multi element analysis after aqua regia digest,” Moho Resources said in its ASX announcement.

“Moho anticipates releasing the results in late April 2020, following receipt of the assays and appropriate checks.”





De Grey Mining Extends Brolga Gold Mineralisation

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) released further results from drilling on the Brolga Zone within the company’s Hemi gold discovery, located near Port Hedland in Western Australia.

New RC gold intercepts encountered at Brolga include:

78 metres at 1.8 grams per tonne gold from 40m;

72m at 1.6g/t gold from 105m;

21m at 3.6g/t gold from 45m
15m at 5.5g/t gold from 75m;

33m at 1.6g/t gold from 41m;

76m at 1.5g/t gold from 42m; and

56m at 1.1g/t gold from 93m.

De Grey Mining has now defined strong and extensive gold mineralisation across four sections, demonstrating a robust and large growing volume of mineralised intrusive at Brolga.

The gold-sulphide mineralisation is well defined by the RC drilling, which the company has interpreted to be dipping moderately to the south (local grid) with a large footprint over more than 340 metres of strike, up to more than 300m lateral width, up to 200m depth that remains open along strike and down dip.

The company considers the shallower dipping mineralisation important, believing it has the potential to increase ounces per vertical metre within a future open pit and may reduce the overall strip ratio.

“Brolga is growing substantially, we continue to increase the overall footprint of the gold-sulphide mineralisation, particularly to the west and down dip where substantial thicknesses of mineralisation remain open,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“We have now confirmed the strong correlation between gold and sulphides.

“The recent four RC holes to the south and west have logged some of the strongest sulphide mineralisation noted to date.

“Drilling is planned to continue with one RC and two diamond rigs testing the limits of mineralisation at Hemi.”





Bellevue Gold Receives Commitments for $26.5 million Raising

THE BOURSE WHISPERER: Bellevue Gold (ASX: BGL) belied current market sentiment with the announcement of a $26.5 million share placement.

Bellevue Gold signalled the placement would enable it to embark on the next phase of its growth strategy at the company’s Bellevue gold project in Western Australia.

The raising was priced at 30 cents per share and was underpinned by leading Australian and overseas institutions, including existing institutional and sophisticated shareholders.

Bellevue Gold indicated the proceeds of the raising will fund further programs of infill and Resource extension drilling at the Bellevue gold project, economic studies in preparation for development and provide general working capital.

The company recently completed the initial infill drilling at Bellevue and has already given notice of being on track to publish its maiden Indicated Resource in the coming quarter.

Bellevue’s Inferred Resource currently stands at 6.1 million tonnes at 11.3 grams per tonne gold for 2.2 million ounces of gold.

The company’s next rounds of infill drilling will be aimed at achieving ongoing growth in the forthcoming Indicated Resource and growing the overall inventory through step-out drilling and exploration drilling at the two high promising conductors identified at the project’s Deacon lode, among other priority targets.

“To complete a raising such as this in any environment is an excellent achievement but to do it in the current market circumstances is exceptional,” Bellevue Gold managing director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“Under the current budget, we are funded through to mid calendar year 2021.
“The strong support shown by leading institutional investors is a huge endorsement of the Bellevue project and its growth potential.

“The proceeds ensure we have ample cash to continue unlocking the value of this project through infill and resource growth drilling while also undertaking the economic and technical studies which should pave the way for development and production.”





Helix Resources Intersects Additional High-Grade Copper Lodes at Collerina

THE DRILL SERGEANT: Helix Resources (ASX: HLX) completed a phase 1 RC drilling program and additional geophysics targeting new copper zones at the company’s 100 per cent-owned Collerina copper project in central New South Wales.

Helix Resources instigated the drilling program of 16 holes for 2586 metres to test for further high-grade copper mineralisation in zones immediately surrounding the initial Central Zone resource.

In June 2019, Helix announced a maiden resource estimate for the Central Zone deposit of 2.02 million tonnes at 2.03 per cent copper and 0.1 grams per tonne gold for 40,000 tonnes copper and 9400 ounces gold (Indicated and Inferred).

Almost 50 per cent of that resource tonnage sits in the Indicated categorisation, with the remainder classified as Inferred.

Helix concluded that the drilling has confirmed a much larger extent of copper system, with at least two additional copper lodes identified outside of the initial Central Zone resource envelope, each with extensive down plunge potential.

The company believes it now has an opportunity to substantially grow the high-grade copper resource at Collerina.

The drilling encountered primary, high-grade copper mineralisation approximately 180m down dip from the Central Zone resource on a parallel structural target, known as the Northern Target Zone.

This yielded an intercept of:

4 metres at 3.18 per cent copper and 0.4g/t gold from 218m, including 1m at 6.44 per cent copper and 0.8g/t gold from 218m.

“This is a significant set of exploration outcomes for Helix and the Collerina copper project,” Helix Resources executive chairman Peter Lester said in the company’s announcement to the Australian Securities Exchange.

“Our recent drilling has confirmed the existence of high-grade copper mineralisation well outside of the Central Zone resource area.

“The targeted down plunge extent of these additional lodes offers substantial potential upside to our current resource base at Collerina.

“A number of new high-priority target positions will require further drilling to fully realise the potential of the broader Collerina deposit.”





Bruce Maluish: VRX Silica



THE CONFERENCE CALLER: The Resources Roadhouse spoke with VRX Silica managning director Bruce Maluish about the company’s recent happenings.


BRUCE MALUISH managing director VRX Silica (ASX: VRX)



Azure Minerals Claims New Alacrán Copper Discovery

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) claimed discovery of high-grade copper mineralisation at the company’s 100 per cent-owned Alacrán project in Sonora, Mexico.

Azure Minerals made the copper discovery at the Gregors prospect while other drilling intersected further gold mineralisation at Mina San Simon.

The Gregors prospect was originally spotted by Azure’s geologists in early 2016, after which an airborne VTEM geophysical survey was flown over the entire Alacrán project area, detecting a small and discrete, reasonably intense electromagnetic (EM) response.

No further exploration was undertaken over this anomaly until late in 2019, when Azure regained full ownership and control of the Alacrán project from former partner Teck Resources.

RC drilling intersected wide zones of breccia and strongly altered volcanic rocks containing visual quantities of disseminated chalcopyrite (copper sulphide) mineralisation.

Results included:

30 metres at 0.68 per cent copper from 22.5m, including 6m at 2.3 per cent copper; and

18m at 0.96 per cent copper from 21m, including 1.5m at 7.03 per cent copper.

The company considers the presence of strong copper mineralisation hosted by iron-rich breccia to be promising as numerous high-grade, copper-rich breccia pipes associated with nearby copper porphyry bodies have been discovered and mined in the Cananea mining district.

Azure is undertaking a detailed data review and interpretation plus initial mineralogical and metallurgical studies to assess potential and assist with planning a follow-up drill program.

“Our exploration team has a strong and successful history of discovering new deposits at Alacrán,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“With this discovery of the buried copper mineralisation at Gregors, we are continuing to identify high-value precious and base metals targets, reinforcing the prospectivity of this exciting project and the technical skills of our exploration team.

“The discovery of strong copper mineralisation hosted by iron-rich breccia at Gregors is very promising, as there is a history of discovering and exploiting high-grade, copper-rich breccia pipes in the surrounding Cananea mining district, particularly at the nearby Cananea copper mine located 10 kilometres to the northwest.

“I’m looking forward to completing our interpretation of the results and recommencing drilling as soon as practicable.”

The company also completed one RC hole (MDPC-168) to test at the historical Mina San Simon mine located about 700m southeast of the southern Loma Bonita resource boundary, an area that is mostly untested by drilling.

A hole drilled by Azure in 2015 (LM-02) intersected a void created by the old mine workings that had extracted the mineralised zone.

The company noted that MDPC-168 drilled below these old mine workings and returned a well-mineralised gold and silver intersection, hosted in vuggy and massive silica, of:

21m at 2 grams per tonne gold and 64g/t silver from 19.5m.

The company indicated that further drilling to test the vuggy silica mineralised zone, which is interpreted to extend further to the east and south beneath the Cerro San Simon hill, will be undertaken in the next drill program.





Blackham Resources Forging Ahead With Wiluna Stage 1 Expansion

THE DRILL SERGEANT: Blackham Resources (ASX: BLK) is ten months into a two-year transitional period at the company’s 100 per cent-owned Matilda-Wiluna gold operation in Western Australia.

Blackham Resources operations were hindered by seasonal weather impacts, (cyclones Blake and Damien), in the first two months of the March 2020 quarter along with some equipment issues and shortages of qualified operators resulting in mining production being below plan.

In an announcement to the ASX, the company indicated its current Stage 1 Expansion activities will enable it to mitigate these disruptions by allowing high-grade stockpiles to be built.

An increased focus and expansion of underground mining will see weather becoming less of an issue.

Obviously, obstructions such as reduced mine material movement, and in-turn, gold production, will reduce the company’s FY 2020 guidance to the low end of gold production expectations, which will in turn impact unit costs.

On the up-scale, Blackham indicated that its March production has increased, which it credited to better weather conditions, new equipment being introduced and commissioned, as well as improved availability of qualified operators.

“Together these factors have seen the gold production rate returning to expected levels and this will allow a stronger operational finish to the financial year,” the company said.

“Mining and stripping development has continued in multiple mining areas, which is expected to provide both short and long-term ore supply of free milling ore into FY 2021.

“Access to high-grade free milling ore is expected to continue to increase over the coming months.”

“At the Golden Age underground mine, the transition to a new equipment supplier has resulted in a turnaround in operational performance and will allow a material uplift in mining rates to be achieved for the remainder of FY 2020 and beyond.”

Blackham’s Stage 1 Expansion activities are cracking along.

Construction of a new tailings storage facility TSF K is nearing completion.

This construction program is the first stage of construction of a ten-year capacity tailings storage facility.

The first stage is designed to hold approximately 2.5 years of tailings produced from the Wiluna processing plant.

The company has replaced an old underperforming mill motor with a new motor in early February, which has provided increased stable processing rates.

Refurbishment of the rod mill was completed and recommissioned, also in February and is now providing an approximate 20 per cent increase in grinding circuit capacity and a proportionate increase in ore throughput.

“Its benefit to the Wiluna operations will especially be seen when we begin milling the harder ore from the Williamson pit which will increase in the June quarter,” Blackham said.

Dewatering activities to enable access to the underground areas for development have been accelerated and are on target to meet the company’s Stage 1 Expansion time line.

On the exploration side, Blackham recently commenced drilling targeting high-grade shallow shoots, initially at the Essex zone.

Essex is located just 200 metres from surface, close to existing infrastructure, and requires minimal dewatering and rehabilitation to access the high-grade ore.

The program has already yielded encouraging results, which the company believes gives affirmation to its strategy of targeting the high-grade ore under the headframe at the Wiluna Mine, to underpin an expansion of reserves ahead of Stage 1 Sulphide Expansion production.

Results to date include:

26 metres at 15.69 grams per tonne gold from 182m; and
21m at 7.04g/t gold from 196m

16m at 3.72g/t gold from 254m, including 4m at 8.23g/t gold and 2m at 6.51g/t gold

8m at 10.10g/t gold from 225m

The company recently announced a funding package of up to $92 million.

The funding package will allow Blackham to finalise the Stage 1 Sulphide Expansion project, which it expects will result in the company producing between 100,000 ounces per annum and 120,000 ounces per annum in concentrate and gold ore.

“Within the current quarter of dramatic global change due to COVID-19, Blackham has been relentless in advancing our stated two-year transformation plan: we have added clout and expertise to our leadership team, refinanced the company and achieved fantastic initial underground exploration results, while significantly upgrading the processing capacity and development of our Wiluna gold mine,” Blackham Resources executive chairman Milan Jerkovic said in the company’s announcement to the Australian Securities Exchange.

“Looking ahead to Q4, we reaffirm our commitment to shareholders to deliver on our five-point strategy of transitioning to gold concentrate production, increasing operational cashflows, repairing the balance sheet, expanding gold production and advancing ‘under the headframe’ exploration, to underpin a future >250koz/pa long-life gold operation.

“We are 10 months into this two-year transformation process, and while there is still a lot of work to do, we are committed to building a safe, quality mining and exploration company, focused on creating value for Shareholders.”





New World Resources Commences Antler Drilling

THE DRILL SERGEANT: New World Resources (ASX: NWC) has commenced its first drilling program at the company’s Antler copper deposit in Arizona, USA.

New World Resources indicated the program of diamond core drilling is expected to comprise 12 to 16 holes for approximately 2,500 metres.

The Anlter deposit has a history of production having intermittently yielded around 70,000 tonnes of ore between 1916 and 1970.

Further exploration activity that ended around 1975 defined a non-JORC Code-compliant historical resource estimate for the remaining mineralisation of 4.66 million tonnes at 1.95 per cent copper, 4.13 per cent zinc, 0.94 per cent lead and 35.9 grams per tonne silver.

“The company’s immediate objective is to delineate robust JORC‐Code compliant Indicated Resources that can be used in mining studies to evaluate the potential to bring the Antler deposit back into production in the near‐term,” New World Resources said in its ASX announcement.

The company outlined its priorities for the upcoming drilling to be to carry out appropriate amount of confirmatory drilling within a panel of ‘high‐confidence, high‐grade mineralisation’ that sits immediately below stopes that have previously been drilled and sampled from underground; and in‐fill drill between the more widely spaced and deeper historical holes that indicate there is a thicker, high‐grade ‘plunging shoot’ down‐dip of the previous stopes.

NWC expects the drilling to be completed in 6 to 8 weeks, after which assay results are anticipated to be available approximately 4 to 6 weeks after the completion of each hole.

Representative diamond core will be collected during the drilling program for use in initial metallurgical testwork.





Mali Lithium Encounters More High-Grades at Goulamina

THE DRILL SERGEANT: Mali Lithium (ASX: MLL) announced more drilling results from the company’s 100 per cent-owned Goulamina lithium project in Mali, West Africa.

Mali Lithium said the drilling had demonstrated the quality of Lithium Oxide (Li2O) mineralised intercepts that are being thrown up from its recently completed RC drilling program continues to improve at the project.

Best of the latest results include:

72m at 1.66 per cent Li2O from 23m;

71m at 1.73 per cent Li2O from 126m;

64m at 1.85 per cent Li2O from 121m;

81m at 1.26 per cent Li2O from 133m;

48m at 1.82 per cent Li2O from 17m; and

49m at 1.82 per cent Li2O from 115m.

Mali Lithium explained that it has only received results for approximately 70 per cent of assays due to delays caused by the global shutdown.

However, the company expects results from the remainder of assays and the results of optical downhole surveys when they are ready.

Despite these delays, the company stressed it would make every effort to meet its previously advised timetable for an updated Mineral Resource, Ore Reserve and the Definitive Feasibility Study (DFS).

To that end, data validation, and statistical analysis has now commenced, leading up to estimation of a new Mineral Resource Estimate (MRE) for the Main, West l, West ll, Sangar l and Sangar ll domains and will be used to inform the DFS.

“Through this drilling program we continue to improve our confidence in the ore body and encounter high grade intersections particularly from the Sangar l and Sangar ll domains,” Mali Lithium managing director Chris Evans said in the company’s announcement to the Australian Securities Exchange.

“We look forward to publishing the updated Mineral Resource shortly, followed by the Ore Reserve and DFS in May.”