Ardea Resources Completes Capital Raising to fund Kalgoorlie Nickel Project Feasibility Work

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THE BOURSE WHISPERER: Ardea Resources (ASX: ARL) has raised $5.7 million to accelerate activities at the company’s Kalgoorlie nickel project (KNP) in Western Australia.

After the cash is banked, Ardea Resources will have more than $10 million cash it intends spending to progress feasibility study work streams, including hydrology and metallurgical drilling programs, metallurgical test work, and pit optimisation studies.

“The proceeds of the placement ensure Ardea is well funded to maintain momentum on accelerated Kalgoorlie Nickel Project feasibility study work streams,” Ardea Resources managing director Andrew Penkethman said in the company’s ASX announcement.

“With the continued expansion of the lithium-ion battery sector and Original Equipment Manufacturers needing to secure sustainable and ethical mineral supply, Ardea’s Kalgoorlie Nickel Project is perfectly positioned to play a leading role with its globally significant nickel-cobalt and scandium resource at Goongarrie with direct transport infrastructure links to the emerging Kwinana Battery Hub We have drill rigs contracted for the KNP Goongarrie Hub to commence drilling water production bores and metallurgical core holes during the September 2021 Quarter.

“Borefield exploration drilling has recently been completed and defined production bore targets are ready for drilling.

“This hydrology drilling will lock in secure process water supplies for the development of our nickel and critical mineral resources at the Goongarrie production hub.

“The metallurgical testwork will provide samples for additional testwork to refine our plans to use mineralised neutraliser sourced during conventional open pit mining as opposed to having to import neutraliser.

“We will also be assessing options to recover additional critical minerals, in addition to the planned nickel-cobalt and scandium production.

“All of these work streams will further enhance the Kalgoorlie Nickel Project and build upon the prefeasibility and expansion studies completed by Ardea in 2018.”

 

 

 

Email: ardea@ardearesources.com.au

 

Web: www.ardearesources.com.au

 

 

Firefly Resources Scores High-Grade Rock Chips at Yalgoo

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THE DRILL SERGEANT: Firefly Resources (ASX: FFR) reported assay results from follow-up sampling of recorded and unrecorded gold workings across the northern extent of the company’s 100 per cent-owned Yalgoo gold project in Western Australia.

Firefly Resources recently announced it would be merging with Gascoyne Resources, however this apparently hasn’t stopped the company from concentrating on advancement of its Yalgoo project.

The company concentrated on sampling several historical workings around the intersection of the Western and Eastern Gold Trends at Yalgoo that returned encouraging assays.

These included the Drumline, Drumline South, Mako, Hammerhead and Good Companions prospects, situated within a three square kilometre area at the intersection of the regional folded stratigraphy where the Western and Eastern Gold Trends collide.

The samplings yielded very high grades at the intersection of the Western and Eastern Gold Trends, as well as the notable ‘demagnetisation’ of the BIF rocks in the area, which the company considers as a strong indicator of a potentially large-scale mineralised system at this important structural ‘collision zone.

“There’s a lot of excitement around Firefly at the moment with the announcement of a planned merger with Gascoyne Resources, however we remain absolutely focused on our core objective of delivering results from Yalgoo,” Firefly Resources managing director Simon Lawson said in the company’s ASX announcement.

“This latest round of rock-chip results further builds on the wider reconnaissance results we reported earlier this month by concentrating on some of the more structurally extensive and intensely altered gold zones we have identified.

“Given the widespread recorded mining activity at Yalgoo in the early 1900s, there are a lot of historical workings in the area and many of these workings have remained untouched since the old-timers walked away.

“We have identified these old workings from aerial imagery, studied the spatial relationships between the mineralisation and the different rock types and structures, and visited those workings to ground-truth and sample them.

“Having worked my whole career as a mine geologist, I know that grade is king and scale is everything else.

“Firefly is starting to reveal both of these key elements at Yalgoo with exciting implications for future development potential.

“The true scale of mineralisation over this northern part of the Yalgoo Goldfield is just coming to light now that it’s under single ownership. In particular, the intersection of the Western and Eastern Gold Trends is returning some very high-grade material over hundreds of metres of strike.

“Intersections in structure and stratigraphy commonly concentrate and trap gold, and we believe this is the case in the Drumline/Good Companion prospect area.

“There are many old workings seemingly scattered across this area of around three square kilometres, but when we correlate them with our aerial mapping, geophysics and ground-truthing we can see all the hallmarks of an emerging high-grade prospect area with scale, and importantly an area that has never seen any modern exploration work or drilling.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@fireflyresources.com.au

 

Web: www.fireflyresources.com.au

 

De Grey Mining Bolsters Mallina Gold Project with Hemi Resource

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THE DRILL SERGEANT: De Grey Mining (ASX: DEG) reported an increase in the Mineral Resources Estimate for the company’s Mallina gold project (MGP) near Port Hedland in Western Australia.

De Grey has taken the MRE from 2.2 million ounces to 9 million ounces, thanks mainly to the company’s 6.8 million ounces Hemi discovery Maiden Mineral Resource.

The total JORC Code 2012-complaint Mineral Resource Estimate for Hemi currently stands at 192 million tonnes at 1.1 grams per tonne gold for 6.8 million ounces.

This breaks down to an Indicated Resources of 66 million tonnes at 1.3g/t gold for 2.8 million ounces and Inferred Resources of 127 million tonnes at 1g/t gold for 4 million ounces.

“Hemi is an exceptional new Western Australian gold discovery which is redefining the gold potential of the Pilbara and has changed the future for De Grey and our shareholders,” De Grey Mining technical director Andy Beckwith said in the company’s ASX announcement.

“De Grey’s exploration team has taken Hemi from discovery to a Tier 1 scale 6.8 million ounces gold deposit in a short timeframe.

“RC and diamond drilling commenced only 15 months ago and further extensions are expected at each deposit as drilling continues.

“Twelve drill rigs are currently focused on expanding Hemi as well as testing numerous targets within our large 100 per cent-owned, 150 kilometres long land package.

“I have no doubt we will be drilling and finding additional resources for many years to come.”

The inclusion of the Indiacte 2.8 million ounces of Hemi has taken the Measured and Indicated Mineral Resources across the MGP to 3.8 million ounces at 1.4g/t gold.

De Grey believes these Mineral Resources provide a strong platform for a scoping study targeted for completion in the September quarter 2021.

The company considers there to be potential for the maiden Hemi and Global MGP Mineral Resources to grow along strike and at depth.

“The company has delivered on its commitment to deliver a maiden Hemi Mineral Resource to shareholders by mid-2021,” De Grey Mining managing director Glenn Jardine added.

“The 6.8 million ounces Hemi Mineral Resource is substantial and exceeds our initial expectations.

“We are committed to increasing the resource base with ongoing drilling programs.

“Project studies, including metallurgy, geotechnical, mining, environmental, infrastructure and hydrogeology are continuing in parallel with the exploration drilling.

“These studies aim to provide information to define the development and production opportunities this scale of resource brings.

“The company expects to be able to provide production potential for Hemi and the overall Mallina gold project to shareholders in the September quarter 2021 through the completion of a scoping study.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: admin@degreymining.com.au

 

Web: www.degreymining.com.au

 

 

Apollo Consolidated Scores Strong Gold Hits at Cleo and Rebecca Deposits

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THE DRILL SERGEANT: Apollo Consolidated (ASX: AOP) declared hits of further widespread gold mineralisation from recent Reverse Circulation (RC) drilling undertaken at the Cleo discovery, located only 1.5 kilometres west of the main Rebecca deposit at the company’s 100 per cent-owned Lake Rebecca gold project east of Kalgoorlie in Western Australia.

Apollo Consolidated drilled nine RC holes at Cleo, all of which intersected shallow gold mineralisation, including:

RCLR0806
10 metres at 3.66 grams per tonne gold, 5m at 1.25g/t gold and 10m at 0.88g/t gold;

RCLR0807
5m at 6.75g/t gold and 5m at 1.59g/t gold;

RCLR0811
10m at 1.50g/t gold EOH, 5m at 1.84g/t gold and 5m at 1.56g/t gold;

RCLR0802
10m at 1.10g/t gold in RCLR0808, 10m at 1.09g/t gold; and

RCLR0803
5m at 3.76g/t gold and 5m at 1.34g/t gold.

“Immediate follow-up RC drilling will continue to scope this discovery and expand open mineralised zones into untested areas,” Apollo Consolidated said in its ASX announcement.

“Diamond drilling will confirm the orientation of mineralised structures and is scheduled to start in coming weeks.”

 

 

Email: info@apolloconsolidated.com.au

 

Web: www.apolloconsolidated.com.au

 

 

Kin Mining to Commence Cardinia Gold Project Regional Exploration Drilling

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THE DRILL SERGEANT: Kin Mining (ASX: KIN) signalled its intentions to step up exploration activity across a number of satellite projects located outside the company’s 1.23 million ounce Cardinia Gold Project (CGP) near Leonora in Western Australia.

Kin Mining owns six separate projects located east and west of the centrally located CGP, which the company has been advancing with a range of exploration activities over the past 12 months including ground-based geophysical surveys, surface auger soil geochemical surveys and first-pass air-core (AC) drilling programs to evaluate their prospectivity.

Upcoming regional exploration activities are to include RC drilling to follow up the recently discovered shallow high-grade gold mineralisation in first-pass air-core (AC) drilling at the Mount Flora prospect, 20km east of Cardinia, where best results included:

MF21AC522
22 metres at 8.96 grams per tonne gold from 24m.

Kin Mining stated the objective of the regional program is to systematically test the wide range of exploration opportunities across the company’s broader tenement holding to determine the potential for new discoveries and emerging satellite or standalone opportunities surrounding the Cardinia Gold Project.

“The purpose of the regional exploration program across the gold-based projects is to provide an initial assessment of the mineralisation style and gold grade and determine whether each project has the potential to be a viable stand-alone project or would more naturally provide potential satellite feed to a future CGP based mining and processing operation,” Kin Mining said in its ASX announcement.

“The key parameters governing these two potential development options is the distance from Cardinia, potential alternative treatment options, project size and mineralisation grade.

“Other projects in the portfolio of tenements also offer nickel sulphide exploration potential and these are being assessed in parallel with the gold project evaluation.”

 

 

 

Email: info@kinmining.com.au

 

Web: www.kinmining.com.au

 

Musgrave Minerals Encounters Thick Gold Intersections at Big Sky

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THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported new assay results from reverse circulation (RC) drilling at the Big Sky prospect, situated along a new gold corridor south-west of Lena on the company’s 100 per cent-owned ground at the Cue gold project in Western Australia’s Murchison district.

RC drilling completed south-west of Lena within the new seven kilometres-long gold corridor has continued to intersect gold mineralisation below thin transported cover (1-20m) in areas that had not been drilled by previous explorers.

The Big Sky gold anomaly is defined over 2.6km of continuous strike where it remains open to the north and south.

Intersections include:

21MORC101
84 metres at 1.4 grams per tonne gold from 24m, including 12m at 6.6g/t gold from 66m;

21MORC100
42m at 1.1g/t gold from 30m;

21MORC082
36m at 1.2g/t gold from 30m; and

21MORC094
12m at 1.7g/t gold from 108m to EOH.

“The RC drilling has confirmed the potential for significant gold mineralisation at Big Sky and the possibility of a number of higher-grade zones within the broader anomalous trend,” Musgrave Minerals managing director Rob Waugh said in the company’s ASX announcement.

“Drill traverse line spacing remains at more than 100 metres for much of the target area and assays are pending for more than 50 RC drill holes.

“The mineralisation is masked from surface by a thin veneer of transported hardpan cover.

“The near surface nature of the oxide, regolith gold mineralisation is expected to be favourable for open-cut mining.

“Regional drilling will continue with the aim of defining discrete higher-grade zones for resource definition.”

The current resource estimate for the Cue gold project totals 6.4 million tonnes at 3.2g/t gold for 659,000 ounces, including the Break of Day deposit (797,000 tonnes at 10.2g/t gold for 262,000 ounces contained gold) and the Lena deposit (4.3 million tonnes at 2.3g/t gold for 325,000 ounces contained gold) located 130m to the west of Break of Day.

 

 

 

Email: info@musgraveminerals.com.au

 

Web: www.musgraveminerals.com.au

 

Premier Forrest Encouraged to Provide Financial Incentives to Advance Goldfields

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THE ROADHOUSE HISTORY FILES: Money, and how it has been raised and spent throughout the history of the Goldfields has been subject to conjecture from an early stage.

 

THE KALGOORLIE MINER

TUESDAY, SEPTEMBER 17, 1895.

It has been suggested that as the easiest and most profitable method of making these vast interior goldfields of the colony as successful as nature intended them to be, the Government should borrow largely, and lend money to the holders of the mines at 10 per cent.

If Sir John Forrest were to go to London with a request for £25,000,000 at 4 per cent, for the purpose of opening up these fields, the very vastness of the scheme would carry it through.

The British public would be taken by the bait of a gamble in mining with 4 per cent. per annum guaranteed by the State, and money is now so plentiful that it is almost certain that the loan would be subscribed many times over.

With this money it would be possible to lend to each mine or group of mines, on a 10 per cent. basis, sufficient capital to sink for water, and erect machinery.

The owners of each group could jointly guarantee the amount expended on the work of obtaining water and putting up a mill, and the plants could be run on the system recommended by the Government Geologist as Customs works.

There is no doubt the most wasteful system of mining in the world is that in vogue in our midst of erecting expensive plants on each individual mine in the locality.

In the case of the Boulder, Lake View and Brown Hill, and a few others, this enormous expense is fully justified, but in the outside districts especially it is nonsensical to incur this expenditure on 12 acre blocks, through which runs a 3ft quartz lode.

As Geologist Goczel points out the money needed for these plants has to be raised from capitalists, and in the endeavor to satisfy their usurous demands all the energy available for the conduct of mining enterprises becomes absorbed in efforts towards the attainment of monetary results.

Under these conditions no provision can be made for preparatory work as commended by experience.

Either the bulk of the mines must be handed over entirely to the English capitalists, who will invest on the conditions mentioned above, or the Government must come to the aid of the fields by lending money on the basis suggested.

Such a loan as that mentioned would be the greatest advertisement it is possible to give the colony and its great goldfields, and the scheme will no doubt receive from the Government the attention it deserves.

If it were carried out the Esperance Bay water scheme could be at once put in hand, and a certain supply secured for at least a few of our biggest mines.

There is every indication of a terrible drought visiting the Eastern Colonies, and as Nature invariably balances things this should mean that the arid West has every prospect of a wet summer following on the heels of a very wet winter.

Fortune has so far favored the fields, and probably has even choicer smiles in store for us.

 

IN OTHER NEWS…

The first meeting of the Stock Exchange of Kalgoorlie was held on Monday at noon, and meetings will now be held every day at the same hour.

It has been decided to admit fifteen additional members on payment of an entrance fee of £20.

The meetings are held in Geoghegan’s Buildings.

The election of the new members will take place on September 26.

It will be seen by our advertising columns that applications are being invited for the position of secretary to the Exchange at a salary of £175 per year with the right of private practice.

 

 

Gascoyne Resources and Firefly Resources to Merge into New, Bigger and Better Murchison Gold Entity

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COMMODITY CAPERS: At the 2020 Diggers & Dealers Forum there was much excitement centred around the big gold merger between Saracen Mineral Holdings and Northern Star Resources with the new entity to become the owner of Kalgoorlie’s Super Pit operations.

At the time, Northern Star boss Bill Beament suggested there could/should be more gold company mergers, a reasonable call considering the current climate for gold and the price being generated thereby.

In the lead up to annual Kalgoorlie gabfest, Gascoyne Resources (ASX: GCY) and Firefly Resources (ASX: FFR) appear to have taken Beament’s advice on board by announcing this week the two companies would be merging.

In the announcement informing the ASX of their intentions, the two companies declared the merger will, “combine two gold companies with complementary assets in the Murchison region of Western Australia, unlocking a number of synergies by leveraging Gascoyne’s gold mining expertise and available processing infrastructure at Dalgaranga, for the benefit of Firefly’s highly prospective suite of assets including its flagship Yalgoo gold project, which is located only 110km by road from Dalgaranga.”

In an associated conference call, Gascoyne Resources managing director and CEO Richard Hay explained that regional consolidation of tenure around Dalgaranga had been a clear part of the company’s strategy since it gained re-instatement to the ASX back in October last year.

“This transaction – or this merger – is a major step forward for Gascoyne in accelerating our strategy to increase mine life, increase production profile, and build and grow our Resource inventory, and very, very importantly, is the exploration upside of the combined companies between Gascoyne and Firefly,” Hay said.

“Firefly’s Yalgoo gold project is highly complementary with Dalgaranga.”

In the During the same call, Firefly Resources managing director and CEO Simon Lawson – who will ultimately join the Gascoyne Board as a non-executive director, declared his Board had recommended unanimously in favour of the merger proposition.

“The Board believes there is many reasons to support this merger,” Lawson continued.

“Obviously, there is significant exposure at Yalgoo, and we are leveraging investment of over $100 million in infrastructure at Dalgaranga.

“Gascoyne is the logical owner of the Yalgoo gold project, and we will be working very strongly with the team at Gascoyne to complete the merger over the coming months.”

Reasons given for the merger by the two entities includes:

• Strategic consolidation of the higher-grade Yalgoo (Melville) Mineral Resource is within haulage distance of Dalgaranga;

• Firefly’s Melville gold deposit at Yalgoo contains a shallow, from surface, Mineral Resource of 196,388 ounces at 1.45 grams per tonne gold (0.7g/t Au cut-off) and located 110km by road from the Dalgaranga production hub;

• Approximately 80 per cent of the Melville Mineral Resource estimate currently sits in the Indicated category (156,753 ounces at 1.47g/t gold with a 0.7g/t Au cut-off);

• Opportunities to optimise the Dalgaranga mine schedule given the presence of higher-grade ore at Yalgoo which will serve as valuable blending material at Dalgaranga in the future; and

• Potential for mine life extensions at Dalgaranga through the integration of Yalgoo ore, with enhanced potential to unlock the full value of the existing Mineral Resources at Dalgaranga and Yalgoo of 845,000 ounces.

“The integration of high-grade Yalgoo ore in our production plan moving forward has excellent potential to extend mine life, reinforcing Gascoyne’s position as a key gold producer in the Murchison region,” Hay said in the combined ASX announcement.

“Furthermore, the merger with Firefly will consolidate approx. 1,200 square kilometres of the Yalgoo and Dalgaranga greenstone belts under single ownership, significantly enhancing the exploration upside potential with over 100 high quality targets.

“Any discoveries can quickly be brought into production at Gascoyne’s high quality, low cost Dalgaranga processing plant.”

In a steak knife, but wait there’s more moment, it was announced that, in conjunction with the Merger, Gascoyne and Firefly have agreed the terms of a demerger of the lithium rights over the Yalgoo project area as well as the Paterson copper-gold project and Forrestania gold-lithium project which is intended to be acquired by a newly incorporated wholly owned subsidiary of Firefly to be named Firetail Resources Limited, along with the lithium rights over certain tenements at the Dalgaranga project.

“Firefly shareholders will hold approximately 32 per cent of the merged entity, with the transaction providing an opportunity for immediate value realisation at an attractive premium,” Lawson said in the combined ASX announcement.

“Through their holdings in the enlarged Gascoyne, Firefly shareholders will stand to benefit from the re-rating that we would expect to flow from the creation of a larger gold company with an increased mine life and enhanced production profile.

“In addition, they are intended to benefit from the proposed demerger of our copper-gold and lithium exploration assets through Firetail Resources and receive an in-specie distribution in this exciting new energy metals focused company.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

 

Corazon Mining Drilling Domestically at Mt Gilmore in NSW

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THE DRILL SERGEANT: Corazon Mining (ASX: CZN) has temporarily shifted its focus domestically as it waits for drilling conditions to improve at the company’s Lynne Lake project in Canada.

Corazon Mining announced the commencement of drilling at the company’s Mt Gilmore copper-cobalt-gold project in New South Wales.

The drilling will target the priority eight kilometres-long Gordonbrook Hill – May Queen copper-cobalt-silver-gold anomaly, within the greater 20km long Mt Gilmore Trend.

This is the opening drill program for the Gordonbrook Hill target and comprises two core holes for a total of 900 metres, designed to test the area near the Gordonbrook Hill mineralised porphyry, identified by Corazon in 2020.

This porphyry intrusion is mapped at surface over approximately 300 metres and is semi-parallel with the strike of a well-defined geophysical anomaly (an Induced Polarisation chargeability-high corridor).

The company believes these coincident geochemical and geophysical features represent a genuine mineralised porphyry target, kilometres in scale, making Gordonbrook Hill the priority target at Mt Gilmore.

“We are excited about the very first drill holes into the high priority Gordonbrook Hill target at Mt Gilmore,” Corazon Mining managing director Brett Smith said in the company’s ASX announcement.

“The drilling will test new concepts, targeting one area of what looks to be a very large mineralised hydrothermal system.”

This current phase of drilling is expected to be completed over the next two months, with results released as they become available.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@corazon.com.au

 

Web: www.corazon.com.au

 

Eagle Mountain Mining Continues High-Grade Hits at Oracle Ridge

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THE DRILL SERGEANT: Eagle Mountain Mining (ASX: EM2) reported on continuing exploration activities at the company’s 100 per cent-owned Oracle Ridge Mine project in Arizona, USA.

Recent drilling by Eagle Mountain Mining had produced positive results from The Talon target.

The first hole to be completed targeting the western part of The Talon target, WT-21-15, intersected three strongly mineralised zones, returning results of:

10.6 metres at 2.1 per cent copper, 16.92 grams per tonne silver and 0.58g/t gold from 231m;

6.6m at 1.29 per cent copper, 8.54g/t silver and 0.1g/t gold from 275.4; and

21.2m at 1.33 per cent copper, 12.53g/t silver and 0.22g/t gold from 297.7, including 7.5m at 1.62 per cent copper, 17.09g/t silver and 0.36g/t gold from 303.5m

Hole WT-21-12 also intersected high-grade mineralisation, returning a best intersection of:

5.7m at 4.44 per cent copper, 44.87g/t silver and 0.93g/t gold, including 3m at 6.8 per cent copper, 66.7g/t silver and 1.5g/t gold.

This hole was drilled in the eastern Talon area, targeting the Leatherwood-Sediments contact approximately 45 metres to the south of previous intersections achieved in hole WT-20-10.

“With activities ramping up and the second rig having commenced drilling, we are very pleased to see further positive results from The Talon target,” Eagle Mountain Mining CEO Tim Mason said in the company’s ASX announcement.

“We have targeted an area covering only about 20 per cent of the magnetic anomaly so there’s a lot of scope for further mineralisation at The Talon.

“The first drill hole on the western side of The Talon returned multiple high-grade intersections and highlighted the potential for stacked mineralised lodes to occur in the area.

“These new intersections are situated in a sparsely drilled area, which bodes well for a significant increase to our JORC Resources.

“At the eastern side of The Talon, the Leatherwood-Sediments contact continues to excite us.

“We have extended this very high-grade mineralisation 50 metres to the south and we will continue to target the contact to the east and south in the coming weeks.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: info@eaglemountain.com.au

 

Web: www.eaglemountain.com.au