Emmerson Resources Continues Result Run from Tennant Creek

THE DRILL SERGEANT: Emmerson Resources (ASX: ERM) declared the initial results from the first three diamond holes completed at the company’s 100 per cent-owned Mauretania project at Tennant Creek as, “exceptional”.

Emmerson Resources carried completed Drill hole MTDD003 that intersected 15 metres at 45.2 grams per tonne gold from 92m, including 4m at 158g/t gold.

The hole was ultimately abandoned in mineralisation due to ground conditions.

The company indicated it had identified visible gold in the lower section of a second hole, MTDD004, and visible supergene copper minerals malachite and azurite identified in the bottom section of the final hole, MTDD005.

Assay results from MTDD004 and MTDD005 plus the remaining lower section of MTDD003 expected later this month.

“This early assay result from our first diamond drill hole at Mauretania demonstrates the exceptionally high-grade nature of the mineralisation at shallow depths and given its association with hematite, provides exciting potential for discovering further similar mineralisation across the Tennant Creek Mineral Field,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“On a comparative basis, this early result from our 100 per cent-owned Mauretania project suggests the previous program of RC drilling underrepresented the gold grades.

“Furthermore, the indicative grades at Mauretania exceed those seen during similar stage drilling at our recently commissioned Edna Beryl gold mine, which has a mined head grade of approximately 30 grams per tonne gold.

“The diamond drilling at Mauretania is part of a two-stage exploration program with the next stage consisting of deployment of a Sub-Audio Magnetics geophysical survey to map out the strike extent of the mineralisation.

“We thank the Northern Territory Government for awarding collaboration funding to trialling this new technology and look forward to seeing the results.”

Emmerson indicated the trial SAM survey at Mauretania will commence in mid-June 2019, aimed at mapping the extent of the sheared ironstone that hosts the high-grade gold mineralisation.

SAM technology has been developed for simultaneously mapping of electrical and magnetic responses and is a high definition, ground-based technique that has applications to shear hosted gold and copper.

In addition to the Mauretania testing, Emmerson will also apply SAM to the Black Snake – Three Thirty area within the company’s Southern project area.

The results of the SAM survey and the remaining assays from the May 2019 drilling program will be used by Emmerson to plan the next phase of drilling at Mauretania.

 

Email: www.emmersonresources.com.au

 

Rox Resources Drilling at Mt Fisher

THE DRILL SERGEANT: Rox Resources (ASX: RXL) has commenced a substantial drilling program at the company’s 100 per cent-owned Mt Fisher gold project in the north eastern Yilgarn Craton, Western Australia.

Rox Resources explained the drilling is targeting shear zone hosted gold mineralisation in mafic / ultramafic bedrock that was delineated by earlier shallower drilling.

The company completed aircore drilling late 2017 (117 holes for 7,322 metres) that returned strong results and helped define RC gold targets at Mt Fisher.

New targets were identified at Damsel South and existing targets were confirmed and upgraded at Dirks and Shiva prospects.

Rox has previously delineated resources of 1.025 million toonnes at 2.7 grams per tonne gold for 89,059 ounces contained gold at the project.

This program is designed to extend these resources and to follow up new target zones.

“The program which comprises RC and Aircore drilling will run for approximately five weeks,” Rox Resources said in its ASX announcement.

“The program aims to discover new zones of bedrock mineralisation and confirm the potential for large shear hosted gold deposits.”

 

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

 

Pioneer Resources and Novo Resources Welcome Sumitomo to Kangan Gold JV

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) informed the market of TSX-listed Novo Resources Corp.’s intention to enter into a US$30 million farm-in and Joint Venture agreement with Sumitomo Corporation of Tokyo, Japan, and its wholly-owned Australian subsidiary.

The aim of the JV is to advance Novo’s Egina project located approximately 80 kilometres south-southwest of Port Hedland in Western Australia.

The Egina project includes Pioneer Resource’s Kangan gold project, where Novo is currently earning an interest under a binding memorandum of agreement that has now been replaced with a new agreement on essentially the same terms that allows Sumitomo to become a party to it.

Pioneer retains a 30 per cent free-carried interest in the Kangan project up to a decision to mine, after which it becomes a contributing JV partner.

Pioneer explained that Sumitomo, via an Australian subsidiary, has agreed to join Novo in spending $460,000 within the next 18 months to earn a joint 70 per cent interest in the Kangan gold project.

Upon Novo and Sumitomo earning their combined 70 per cent interest, Pioneer is free-carried up to a decision to mine and thereafter contributes in proportion to its JV interest.

The Kangan gold project, currently held 100 per cent by Pioneer, forms a key part of Novo’s Pilbara exploration portfolio and sits within that company’s Egina project, which lies in the heart of the Pilbara conglomerate gold province.

“The addition of Sumitomo to the Kangan farmin/JV adds significant financial and technical power to support Novo’s efforts at the Kangan JV project, and we look forward to receiving results as exploration programs at Egina and Kangan advance,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

 

Email: pioneer@PIOresources.com.au

Website: www.pioresources.com.au

 

Cassini Resources Completes Yarawindah Brook Acquisition

THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) has completed acquisition of an 80 per cent interest in the Yarawindah Brook nickel-copper-cobalt project, located near the town of New Norcia in Western Australia.

Cassini Resources completed the deal by acquiring 80 per cent of the issued share capital of Souwest Metals Pty Ltd, a private company associated with Kalgoorlie prospector and identity Scott Wilson.

Payment for the acquisition consist the payment of $300,000 and the grant of approximately 6.1 million options, each with a three-year expiry date and exercisable at 12.35 cents.

Subsequent to the deal, Cassini and the existing Souwest shareholders have executed a Joint Venture agreement, the terms of which require Cassini to sole fund all expenditure up until a Decision to Mine is made.

After the Sole Funding Period, Cassini and Souwest are to contribute proportionally to the JV, or alternatively, Souwest may elect to convert its then Shareholder Interest into a 2 per cent Net Smelter Royalty.

The Yarawindah Brook project is located 130 kilometres northeast of Perth and has undergone limited nickel, copper and cobalt exploration, despite its favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation.

Historic exploration on E70/4883 has focussed primarily on a small platinum and palladium (PGE’s) resource, which Cassini considers as a ‘path-finder’ anomaly for potential massive nickel-copper-cobalt sulphides.

The company completed an airborne electromagnetic survey (AEM) over the project in early 2018 identifying numerous conductors it considers worthy of further investigation.

A surface fixed loop electromagnetic (FLEM) survey has also been completed over several of the higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.

In a nod to the prospectivity of the region, Cassini has added additional tenements E70/5116 and E70/5166 to the project, taking its total land position to 146 square kilometres.

The company is currently progressing access agreements with local landholders and environmental approvals in preparation for drill testing.

 

Email: admin@cassiniresources.com.au

Website: www.cassiniresources.com.au

 

Healthy Mix of Resources and Oil & Gas Companies Travelling to Gold Coast Investment Showcase

THE CONFERENCE CALLER: With the 2019 Gold Coast Investment Showcase closing fast, The Resources Roadhouse continues its look at companies that will be in attendance.

Altech Chemicals (ASX: ATC) has Stage 1 construction at the company’s high purity alumina (HPA) project site in Johor, Malaysia, progressing well.

The company has completed advanced design and engineering that has allowed permits and approvals to be issued.

The site development order was approved allowing site works to commence and activities at site have transitioned from the establishment phase well into the construction phase.

Initial site establishment activities are completed, with the site fully fenced and secured.

Other work has included the completion of a site construction office, a security post, a vehicle wash down bay with sediment control, a site weather monitoring station, and temporary ablutions have been installed.

As far as actual mining goes, removal of topsoil from the site, bulk earthworks and site levelling has been undertaken with soil compaction in most areas close to being finalised.

A foundation piling rig established the foundation piling for the workshop building and the concrete footings for this building are also nearing completion.

The first steel was recently raised in plant construction anger, representing the culmination of the above-mentioned series of achievements at the project over the last six months.

Winchester Energy (ASX: WEL) is set to spud a step-out well in July at the company’s Mustang prospect, located in the Permian Basin of Texas, USA.

Winchester Energy explained the step-out well is to spud 420 metres from the previous Mustang Prospect well White Hat 20#3, which returned initial production (IP) of 306 barrels of oil per day (bopd) and continues to produce consistently.

The new well, White Hat 20#4, is a development well on the newly discovered Mustang Oil Field and is designed as a low risk well which, if successful, will further increase Winchester’s net oil production.

Winchester is planning a drilling program to develop the central lobe of the Mustang prospect that will include approximately 15 well locations.

The Mustang prospect has a Prospective Resource target best estimate P50 of 1.43 million bbls recoverable and a high estimate P10 of 3.76 million bbls recoverable from the Strawn Sand.

“The impending spud of White Hat 20#4 builds on the success of the White Hat 20#3 which returned exceptional flow rates of 306 barrels of oil per day,” Winchester Energy managing director Neville Henry said in the company’s announcement to the Australian Securities Exchange.

“White Hat 20#4 represents a low risk opportunity to further increase oil production and also increased confidence in the newly discovered Mustang Oil Field.

“We hope to extend the play further to the north and south and expect a series of large basin-floor sand lobes to occur within the Mustang area.

“The company intends to execute its Mustang development plan which focusses on relatively low risk locations initially stepping out from White Hat 20#3.

“This should see Winchester steadily expand its oil production and cash flow and with the El Dorado and Spitfire prospects representing yet more genuine upside for the company.”

King Island Scheelite (ASX: KIS) released results of an updated Feasibility Study and Revised Mineral Reserve Estimate for the redevelopment of the company’s 100 per cent-owned Dolphin tungsten project in King Island, Tasmania.

The probable reserves, in accordance with JORC 2012 code, have estimated to be 3 million tonnes at 0.73 per cent tungsten oxide WO3 (Cut‐off 0.2%).

King Island Scheelite reported the study outlined the Dolphin Open‐cut project is planned to mine and process approximately 400,000 tonnes per annum of ore for eight years to produce approximately 3,500 tonnes of tungsten concentrate per year.

This concentrate will be sold into a market the company expects to be of growing demand and constrained supply.

The Dolphin processing plant has been substantially modified since a Reserve Estimation carried out in 2015.

Processing will now be conducted through, primarily, a gravity circuit followed by a small flotation circuit to which some of the gravity tails will report.

The company has carried out further site infrastructure engineering works, resulting in capital and operating cost savings from the previous estimation.

King Island indicated its relatively advanced engineering studies and proposed methodology based on a modular design, has allowed its engineering consultants to determine that detailed design, procurement, construction and commissioning could be achieved within a fifteen‐month period after financial close.

The company is confident that once financial close has been reached, commissioning of the mine and processing plant can be achieved within the stated fifteen month period, meaning that should financial close can be achieved in the second half of 2019 then first shipment of product could be achieved in the first quarter of 2021.

“Having recently secured the first of a number of multi‐year offtake agreements, together with the flexibility in the operating site and supportive local community, we now look forward to achieving frequent operational milestones as we proceed to tungsten production, anticipated in 2021,” King Island Scheelite chairman Johann Jacobs said in the company’s announcement to the Australian Securities Exchange.

“The King Island Scheelite team has actively progressed and de‐risked the 100 per cent-owned Dolphin tungsten project, both technically and commercially.

“As part of this process, we commissioned independent consultants to provide inputs into a financial model to prepare scenario analysis to assist in interpreting the net present value ranges, potential returns and expected payback period, associated with the Dolphin open‐cut project.

“The impressive indicative economics reiterate that we have chosen to develop the right project with the right commodity in the right place and time.”

 

 

AMEC 2019 Convention

THE CONFERENCE CALLER: The Roadhouse attended the 2019 AMEC Convention this week and caught up with the latest goings on for some of our regulars.

Obviously this is a new innovation we are learning to use, so try not to stand too close to the screen when checking out the pics.

Fortunately it is all about listening so sit back and relax and hear what these MDs have to say.

 

BRUCE MALUISH managing director VRX Silica (ASX: VRX)

 

MIKE YOUNG managing director Vimy Resources (ASX: VMY)

 

SEAN GREGORY managing director Barra Resources (ASX: BAR)

 

PATRICK MUNTZ managing director Image Resources (ASX: IMA)

 

Peel Mining Raises $7M to Advance Cobar Projects

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) has received firm commitments to raise $7 million to continue advancing the company’s 100 per cent-owned Wagga Tank-Southern Nights deposit and 50 per cent-owned Mallee Bull deposit towards development.

Both projects are in the Cobar Basin of New South Wales.

Peel Mining said the funds raised under the Placement will enable it to undertake mining scoping studies at the Wagga Tank-Southern Nights deposit and to continue pre-development activities at the Mallee Bull deposit.

The funds will also be put towards continued exploration for new mineralisation at Wagga Tank-Southern Nights and to continue CSP programs of work with Joint Venture Partner JOGMEC.

The company signalled it would also be able to carry out advanced exploration at some of its exciting regional targets.

The Placement comprised the issue of approximately 22.6 million fully paid ordinary shares at 31 cents each to raise $7 million.

“The company is about to embark on the most exciting phase in its history, as we deliver the maiden resource at the high-grade Wagga Tank-Southern Nights deposit, and finalise plans to bring the Mallee Bull deposit into development,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“We will commence mining scoping studies at Wagga Tank-Southern Nights as well as continue to drill test for new mineralisation associated with this major mineral system.

“This successful raising places the company in a strong financial position to continue advancing these high-grade Cobar assets towards development.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Spectrum Metals Doubles Penny North Lode Extent

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) released the first results from a Phase II drilling program recently conducted at the company’s Penny North prospect in Western Australia.

Spectrum Metals has received results from three holes, including:

SPWRC040
7 metres at 17.5 grams per tonne gold from 230m, within 11m at 11.7g/t gold from 229m;

SPWRC039
1m at 180.3g/t gold from 206m, within 3m at 70.8g/t gold from 205m; and

SPWRC036
1m at 12.3g/t gold from 205m, within 3m at 6.3g/t gold from 205m.

The company explained the high-grade results from Holes SPWRC039 and SPWRC040 are located down dip of previously reported hole SPWRC027, adding that holes SPWRC039 and SPWRC040 add approximately 80m of down dip extent to this section line and therefore doubles the down dip extent of the Penny North lode on this section.

Up dip holes SPWRC038 and SPWRC050 on the same section line are still awaiting assay results.

Spectrum has drilled a total of 20 holes in its Phase II program so far that is continuing.

“We are very excited to see the high tenor and high width of gold mineralisation continue in our Phase II program, particularly within hole SPWRC040 which is the deepest hole yet assayed at Penny North,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“It appears that the Penny North structure again widens at this location and remains open down dip and along strike.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Winchester Energy to Spud New Well at Mustang Prospect

THE ROADHOUSE BOWSER: Winchester Energy (ASX: WEL) is set to spud a step-out well in July at the company’s Mustang prospect, located in the Permian Basin of Texas, USA.

Winchester Energy explained the step-out well is to spud 420 metres from the previous Mustang Prospect well White Hat 20#3, which returned initial production (IP) of 306 barrels of oil per day (bopd) and continues to produce consistently.

The new well, White Hat 20#4, is a development well on the newly discovered Mustang Oil Field and is designed as a low risk well which, if successful, will further increase Winchester’s net oil production.

Winchester is planning a drilling program to develop the central lobe of the Mustang prospect that will include approximately 15 well locations.

The Mustang prospect has a Prospective Resource target best estimate P50 of 1.43 million bbls recoverable and a high estimate P10 of 3.76 million bbls recoverable from the Strawn Sand.

“The impending spud of White Hat 20#4 builds on the success of the White Hat 20#3 which returned exceptional flow rates of 306 barrels of oil per day,” Winchester Energy managing director Neville Henry said in the company’s announcement to the Australian Securities Exchange.

“White Hat 20#4 represents a low risk opportunity to further increase oil production and also increased confidence in the newly discovered Mustang Oil Field.

“We hope to extend the play further to the north and south and expect a series of large basin-floor sand lobes to occur within the Mustang area.

“The company intends to execute its Mustang development plan which focusses on relatively low risk locations initially stepping out from White Hat 20#3.

“This should see Winchester steadily expand its oil production and cash flow and with the El Dorado and Spitfire prospects representing yet more genuine upside for the company.”

 

Email: admin@winchesterenrgyltd.com

Website: www.winchesterenergyltd.com

 

Corazon Mining Identifies New Near-Mine Targets at Lynn Lake

THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) provided an update on recent activities at the company’s Lynn Lake nickel-copper-cobalt sulphide project in Canada.

Corazon Mining has utilised a new geophysical processing technique to deliver major benefits at Lynn Lake, resulting in modelling of magnetic data using newly developed methods, such as Magnetic Vector Inversion (MVI), which the company says has radically opened the prospectivity of the Lynn Lake Mining Centre.

The company said the techniques have proved more effective and accurate than the previously utilised conventional Magnetic Susceptibility Inversion method.

Corazon explained that the MVI process can identify known (previously mined) orebodies and resource areas down to at least 600 to 700 metres below surface – double that of conventional techniques.

The MVI processing of existing detailed ground magnetic data has also identified new areas of interest within Lynn Lake’s prolific historic mining centre.

“Our aim is to utilise this new modelling technique on a number of fronts at Lynn Lake,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.

“The potential for new discoveries is obvious, however, there are also numerous historically drill defined targets in the mining area that have yet to be properly tested.

“Our focus will be on these near-mine targets with a view towards optimising the potential of the mine area ahead of more detailed mine-planning and feasibility drill-outs for the project.”

Corazon began using the MVI modelling following a review of results from the last phase of drilling it completed at the Fraser Lake Complex (FLC) at Lynn Lake that targeted compelling anomalies generated by conventional Magnetic Susceptibility Inversion modelling processes.

“Put simply the conventional inversion modelling methods didn’t deliver the results anticipated at the Fraser Lake Complex,” Smith added.

“We’re looking within a large, complex, multi-phase magmatic sulphide system with variable magnetic characteristics.

“Too complex for the conventional methods to accommodate.

“With MVI, the level of information and detail is substantial and allows us to interrogate the anomalies better.

“Targets that have previously been ignored because of their overall magnetic characteristics are now being reassessed more favourably.”

The MVI activity continues a run of good news from Lynn Lake, from where the company recently announced exceptional metallurgical results from testwork on the project’s mineralisation.

Despite Lynn Lake having a long mining history, modern reagents and processing techniques have enabled separate high-value nickel and copper concentrates to be produced for the very first time.

The initial work highlighted:
Nickel concentrate with a grade of 26 per cent nickel with recoveries of 71 per cent; and
Copper concentrate with a grade of 27 per cent copper with recoveries of 77 per cent.

These results were not optimised, and Corazon believes further refinement of the testwork could deliver even greater improvements, particularly in the recoveries.

A new round of testwork is currently in progress incorporating the same float circuit used in the previous testing, however, utilising methodologies more representative of a commercial operation.

This work is expected to optimise the methodology and deliver similar high-grade concentrates, but with increased recoveries.

 

Email: info@corazon.com.au

Website: www.corazon.com.au