Alliance Resources Promoting Weednanna from Gold Prospect to Gold Region

/in , /by

THE INSIDE STORY: Alliance Resources (ASX: AGS) is beginning to realise the potential lying within its flagship Weednanna gold prospect and other regional targets.

As Alliance Resources progresses Weednanna towards a maiden mineral resource estimate, the company has also turned its attention to the regional gold potential surrounding the prospect.

The Weednanna gold prospect is the most advanced of the Wilcherry Project Joint Venture in the Gawler Craton of South Australia between Alliance and Tyranna Resources (ASX: TYX).

As of 31 March 2018, Alliance had increased its interest in the Wilcherry Project Joint Venture Exploration Area to 71.09 per cent.

At Weednanna, high-grade gold shoots are associated with a calc-silicate and magnetite skarn system.

Alliance has stated its objective to establish a maiden mineral resource estimate for Weednanna this year and working towards that goal includes a staged program of metallurgical work on Weednanna gold mineralisation with the aim of optimising gold recovery and culminating in process design criteria and capital and operating costs for the processing base case.

Should the outcomes of both work streams be positive, Alliance intends feeding them into a scoping study to commence in the second half 2018.

The company has already demonstrated the exploration potential at Weednanna, however historic high-grade gold intercepts at the Mawson and Ultima Dam South prospects, both within a short trucking distance to Weednanna, also have the company very excited.

The most recent work at Weednanna consisted of Alliance’s fourth RC drilling program at the prospect, returning results that included four holes assaying greater than 50 grams per tonne-metres gold (grade by thickness).

Around the same time, Alliance completed a further 22-hole RC drilling program to define the geometry of Target 4 and initial testing of Target 5.

Fifteen holes at Target 4 reported intercepts greater than 1g/t gold, including four holes returning greater than 50g/t-m gold.

After a short break in drilling at Weednanna, Alliance returned in June to conduct a further 14 holes at Weednanna Target 4 with the aim to bundle together Targets 1 – 4 and 3D modelling to establish a mineral resource estimate.

“We finished a high-resolution gravity survey at Weednanna earlier this year, because we really wanted to fully understand the targets we are drilling,” Alliance Resources managing director Steve Johnston told The Resources Roadhouse.

“They are discreet targets and most have relatively narrow extents in cross section, but have potential for continuity down plunge and, of course, there is potential for repetition.

“We are trying to throw as much at it as we can in terms of geophysics because we already possess good magnetic data sets, a good regional gravity data set and previous IP work there has lit up sulphides which are often associated with gold.”

The high-resolution gravity survey revealed several structures, including a dominant NW-SE trending set.

The Weednanna Target 1 gold shoot is located along the most prominent of these NW-SE trending structures, which continues to the south of Target 4.

Alliance will use the gravity data to assist with mapping the sub-surface geology, particularly the target corridors of calc-silicate and magnetite skarn that host high-grade gold shoots.

The data will complement the existing geophysical datasets at Weednanna and will be utilised for constrained 3D inversion modelling to assist with targeting new gold lodes.

“The idea of doing the high-res gravity survey was to get a handle on the calc-silicate target, which hosts the gold mineralisation,” Johnston explained.

“We found some really large northwest-trending structures cutting across the project, which we had a hint of from the magnetics, but they really showed up from the gravity survey.

“One of the structures goes through Target 1, which is our largest target sitting in the west of the project.

“Target 1 is quite constrained at only 130 metres of strike, but this structure that trends through it, and continues on, is about one kilometre and, historically, there hasn’t been much drilling along the length of it.

“That has really opened that area for further exploration, so we will be looking at that too.

“Once we have modelled these targets we will be able to see if there are any other localities that might provide for structural repetition.

“It could be quite a powerful model that we will have at the end of it, so the wireframing we are doing is not just for a mineral resource estimate, it is also for targeting additional mineralisation.

“I’m confident that we will identify other target areas, I don’t know how many at this stage, but we have potential to add to the number of target areas we already have at Weednanna.”

In May this year, Alliance announced the commencement of a review of regional gold prospectivity in a bid to identify prospects with potential for gold mineralisation situated within five kilometres of Weednanna.

The company compiled results from historic geochemical and drilling databases that showed gold was encountered at the Mawson, Ultima Dam South and Weednanna North prospects, with anomalous gold of greater than 0.2g/t gold at the Ultima Dam and Ultima Dam North prospects.

The Mawson prospect sits 3,600m to the northwest of Weednanna and was initially identified by calcrete sampling in in the 1990s that defined a gold-in-calcrete anomaly over the southern part of the prospect.

Drilling by Anglogold into the anomaly in 1999 intersected 29m at 0.86 per cent copper from 41m.

Trafford Resources drilled nine RC holes across Mawson in 2008, including four with diamond tails with five holes reporting intercepts greater than 1g/t gold, with a best intercept of 5m at 2.46g/t gold from 159m, including 3m at 3.3g/t gold from 161m.

The Ultima Dam South prospect, 3,200m northeast of Weednanna, was also drilled by Anglogold in 1999.

Two holes reported intercepts over 1g/t gold, with a best and shallow intercept of 1m at 4.09g/t gold from 14m.

When it released the announcement, Alliance was surprised that it seemed to fly under the radar of market watchers and analysts.

“The market doesn’t always understand the implications of such an announcement,” Johnston said.

“That announcement was really a statement of historic results within a five-kilometre radius of Weednanna that we don’t believe had been published before.

“This was work completed by previous owners and explorers that included results of five metres at close to 2.5 grams per tonne gold at the Mawson prospect, just to the northwest of Weednanna and another of one metre at four grams per tonne gold from the Ultima Dam South prospect to the east.

“What is important to note is that the drilling was not targeting gold but copper at Mawson and iron ore at Ultima Dam South.

“Serendipitously there was gold and it appears to be associated with the calc-silicates and magnetite similar to what we’re getting at Weednanna.

“We will be having a really good look at that next year with a view to doing more geophysics and drilling to try and identify some of these target areas.

“We have only just scratched the surface at Weednanna, but there seems to be potential for multiple Weednanna-style deposits at these other localities.”

 

Alliance Resources Limited (ASX: AGS)
…The Short Story

HEAD OFFICE
Suite 3
51 – 55 City Road
Southbank, VIC, 3006

Ph: +61 3 9697 9090

Email: info@allianceresources.com.au
Web: www.allianceresources.com.au

DIRECTORS
Ian Gandel, Tony Lethlean, Steve Johnston

 

Panoramic Resources Signs New Savannah Sales Agreement

/in , /by

THE BOURSE WHISPERER: Panoramic Resources (ASX: PAN) reported a new four-year Concentrate Sales Agreement over concentrate that may be produced from the company’s Savannah nickel-copper-cobalt project in the East Kimberley of Western Australia.

Panoramic Resources announced that Sino Nickel Pty Ltd, Jinchuan Group Co., Ltd and Savannah Nickel Mines Pty Ltd (a wholly owned subsidiary of Panoramic) have executed a new four-year Concentrate Sales Agreement.

The agreement covers 100 per cent of the concentrate that may be produced from the Savannah nickel-copper-cobalt project.

This new Agreement replaces the Extended Concentrate Sales Agreement struck in 2010, which was due to expire on 31 March 2020.

Panoramic said the terms of the new Agreement will be applicable from the first shipment of concentrate from the recommissioned Savannah project and incorporate improved payabilities for certain contained metals compared to the 2010 Extended Concentrate Sales Agreement.

Panoramic declared the terms of the Agreement are highly competitive in the global market for Savannah’s bulk nickel-copper-cobalt concentrate, based on the bids for the concentrate received from several parties and the knowledge that the market for nickel concentrates has tightened in the past 12 months.

The general terms and conditions of the new Agreement are as follows:

Product – sulphide concentrate with a typical specification of 8 per cent nickel, 4.5 per cent copper, 0.6 per cent cobalt, 46 per cent iron, less than 1 per cent manganese oxide;

Quantity (in-bulk) – 100 per cent of production from the Savannah Project;

Load Port – Wyndham, Western Australia;

Payable metals – nickel, copper and cobalt;

Price basis – agreed per centage of LME cash price for nickel and copper and agreed per centage of Metal Bulletin Co price; and

Life of new contract – four years commencing from the date of the first shipment or 31 March 2019, whichever occurs first.

“The new Agreement, which will cover concentrate produced from the Savannah and Savannah North orebodies, is an important condition precedent to restarting the Savannah project,” Panoramic Resources said in its ASX announcement.

“Now that the new offtake has been concluded, the finalisation of the project debt financing is the last remaining condition precedent to the Board making the decision to restart the project.

“Negotiations with potential financiers on the debt funding are progressing well and the company should be a position to make an announcement on project debt funding shortly.”

 

 

Intermin Resources Finalises Goongarrie Lady Feasibility Study

/in , /by

THE BOURSE WHISPERER: Intermin Resources (ASX: IRC) announced Feasibility Study results from the company’s 100 per cent-owned Goongarrie Lady gold project, located 85km north of Kalgoorlie-Boulder in Western Australia.

Intermin Resources released details of the study results, including an updated JORC 2012 Mineral Resource Estimate for the project now totalling 0.31 million tonnes at 2.4 grams per tonne gold Au for 24,000 ounces (1.0g/t gold lower grade cut-off).

Over 87 per cent of the Mineral Resource Estimate has been promoted to the Measured and Indicated categories.

A maiden Ore Resrve has been calculated of 0.135 million tonnes at 2.94g/t gold for 12,700 ounces.

Metallurgical test work completed on representative samples from all ore zones included estimated recoveries of 94 per cent.

Statutory approvals are well advanced and the study assumes contract mining and haulage and ore processing at one of three nearby third party facilities.

Intermin Resources said that Feasibility Study findings indicate a technically strong and financially viable project with the following:

Open pit mine design producing 135,000 tonnes at a fully diluted grade of 2.94g/t gold for 12,700 ounces over a seven month mine life;

Third party milling at 94 per cent metallurgical recovery producing 11,938 ounces;

Low up-front capital costs of $0.73 million;

C1 Costs of $1,131 per ounce and All In Sustaining Costs of $1,164 per ounce;

The project is expected to generate $5.7 million in free cash flow in seven months at a $1,700 per ounce gold price.

“The Goongarrie Lady Feasibility Study has delivered robust economic results with strong projected cash margins and reduced geological risk,” Intermin Resources managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“As with the successful Teal gold mine, the company has taken a conservative approach to both Resource estimation and development studies with the infill drilling increasing geological confidence and mine optimisation studies adopting conservative cut off grades to ensure acceptable cash margins.

“The company now looks forward to completing final statutory approvals and determining the optional development pathway to maximise and realise value for Intermin shareholders as Goongarrie Lady is confirmed as the next development in the production pipeline to enable our self-funded organic growth.”

 

Email: iadmin@intermin.com.au

Website: www.intermin.com.au

 

Galena Mining Completes Abra Scoping Study

/in , /by

THE BOURSE WHISPERER: Galena Mining (ASX: G1A) released details of a Scoping Study undertaken at the company’s 100 per cent-owned Abra base metal project in Western Australia.

Galena Mining said the Study had confirmed Abra as an economically and technically robust opportunity, with potential to become a long-life, high margin West Australian lead-silver producer.

Study results include:

Initial mine life of 11 years, with opportunities identified to extend beyond 11 years;

Annual throughput of one million tonnes per annum, with average grades of 9.7 per cent lead and 15 grams per tonne silver, producing 91,000 tonnes per annum of lead and 450,000 ounces of silver annually; and

Average life of mine cash (C1) costs of US$0.46 per pound and total costs (C3) costs of US$0.56 per pound (includes all royalties) – high margin, strongly cash generative operation.

Galena declared exploration potential exists to add to the lead-silver mineralisation already identified to be converted to JORC Resource with additional drilling.

The company believes the potential development of Abra coincides with a very strong outlook for lead with increasing demand and reducing supply producing an average spot lead price of US$0.97 per pound over the last 10 years.

Base case analysis in the study uses a US$0.95 per pound lead price.

On the back of the study results, Galena has signalled it is progressing into the next phase of work at Abra, across multiple fronts and at a maximum pace.

A Pre-Feasibility Study (PFS) is due for completion in September 2018.

“This Scoping Study has confirmed the economic viability of the Abra project and has increased our confidence in the real potential of the project as a near-term Western Australian development opportunity,” Galena Mining CEO Ed Turner said in the company’s announcement to the Australian Securities Exchange.

“This is an exciting long life, high margin and low capital project in a Tier-1 jurisdiction.

“Abra’s latest representative metallurgical test work demonstrates that it can produce a very high-grade (74.5 per cent lead and 140g/t silver), high quality clean concentrate that is in high demand.”

 

Website: www.galenamining.com.au

 

Draig Resources Achieves High Gold Recoveries from Tribune Lode

/in , /by

THE BOURSE WHISPERER: Draig Resources (ASX: DRG) reported excellent initial gravity and cyanide leach recovery test work results from the Tribune Lode discovery at the company’s Bellevue gold project in Western Australia.

Draig Resources tested three composite samples during the metallurgical program, all of which were sourced from hard rock samples of primary Lode material for testwork conducted by ALS Metallurgy in Perth.

The work returned total gold extraction results of up to 98.8 per cent through a combination of gravity and 48-hour cyanide leach bottle rolls.

Exceptional gravity recoveries of up to 82.5 per cent of total gold recovered by the Knelson Concentrator prior to cyanide leaching.

Draig Resources said the results of the preliminary program were in line with company expectations based on historical performance at the adjacent Bellevue mine.

The company said the results also indicate that Tribune Lode will be amenable to a conventional gravity and cyanide leach processing circuit.

The company indicated it will be continuing drill testing of deeper extension targets below the Bellevue underground mine over the coming weeks leading to an anticipated Resource estimate for the Bellevue gold project in quarter three this year.

“The confirmation of excellent gold recoveries from the Tribune Lode is in line with our expectations and demonstrates a conventional processing technique can be used to extract gold from the Tribune Lode,” Draig Resources executive director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“We are looking forward to updating the market to our activities in quarter three 2018 in regard to the deeper drill targeting, our maiden resource estimate for the Bellevue gold project and the commencement of regional exploration.”

 

Email: admin@draigresources.com

Website: www.draigresources.com

 

BCI Minerals Releases Maiden Kumina Resource

/in , /by

THE DRILL SERGEANT: BCI Minerals (ASX: BCI) released a maiden JORC Mineral Resource estimate for the company’s Kumina tenements in northwest Western Australia, comprising estimates for deposits A, E and J.

BCI Minerals’ Kumina tenements comprise three granted exploration licences covering an area of approximately 480 square kilometres and are located approximately 100km south of Karratha and 50km north-east of the company’s Bungaroo South deposit.

The tenements host numerous channel iron deposit (CID) targets and higher grade bedded iron deposit (BID) targets with associated detrital iron deposit (DID) mineralisation.

The Mineral Resource estimates were completed at Kumina A (Channel Iron Deposit – CID), E and J (both Bedded and Detrital Deposits – BID and DID).

Calculations resulted in an Inferred Mineral Resource of 78.3 million tonnes at 59.1 per cent iron at a 57 per cent iron cut-off, or 115.2 million tonnes at 58 per cent iron at a 53 per cent iron cut-off.

“Proving up three deposits at Kumina to Resource status within nine months of acquisition is a positive result, particularly given these ‘forgotten’ tenements came with zero exploration information when acquired in late 2017,” BCI Minerals managing director Alwyn Vorster said in the company’s announcement to the Australian Securities Exchange.

“We now have a very promising group of deposits, including a significant tonnage of bedded iron mineralisation with a grade of greater than 59 per cent iron and relatively low impurities, providing a credible ore source in the current iron ore market environment.

“Kumina also has substantial exploration upside, with many prospective targets remaining untested, and we see it as an attractive standalone development opportunity.

“The Kumina resource quality is equal or better than many ore sources from the central Pilbara area, and the distance by existing road from Kumina to Port Hedland is shorter than the distance from our Iron Valley tenement (an operating mine) to Port Hedland, making profitable trucking or rail solutions possible.”

 

Email: info@bciminerals.com.au

Website: www.bciminerals.com.au

 

Cassini Resources Intercepts Massive Sulphides at Yappsu

/in , /by

THE DRILL SERGEANT: Cassini Resources (ASX: CZI) announced a ‘significant’ intersection of massive sulphide mineralisation at the Yappsu prospect within the West Musgrave Project (WMP) in Western Australia.

Cassini Resources is conducting the current drilling as part of an Earn-in/JV Agreement with OZ Minerals Limited (ASX: OZL).

The JV Partners are currently undertaking a Pre-feasibility Study (PFS) on the Nebo-Babel deposits as well as a regional exploration program.

Diamond drillhole CZD0076B undertaken at Yappsu was designed to test two distinct ‘off-hole’ DHEM conductors identified from historical drilling.

The hole intersected 6.2 metres of massive sulphide corresponding with an area known as the upper ‘C’ conductor.

Cassini Resources said visual observations have identified pentlandite (nickel sulphide), chalcopyrite (copper sulphide) and pyrrhotite (barren iron sulphide) from 426.1m downhole.

A lower zone measuring over 60m wide, of disseminated and stringer sulphide mineralisation (varying from 5 to 20 per cent total sulphide) and also containing nickel and copper mineralisation was intersected below the massive sulphide.

The company explained this zone corresponds with another area – the ‘B’ conductor.

“Exploration at the prospect is at an early stage and at present mineralisation appears open in all directions,” Cassini Resources said in its ASX announcement

“The intersection is the thickest massive sulphide mineralisation drilled at the prospect to date.

“The hole is continuing through the barren footwall to a proposed depth of 600 metres to provide a suitable platform for DHEM.

“The drill core is currently being logged and cut on site before samples are expedited through the assay laboratory (along with samples from CZD0077 at the H-T Lode as announced on 21 June 2018) in Perth.”

 

Email: admin@cassiniresources.com.au

Website: www.cassiniresources.com.au

 

Alliance Resources Encouraged by Preliminary Gundockerta South Aircore

/in , /by

THE DRILL SERGEANT: Alliance Resources (ASX: AGS) received preliminary gold results from aircore drilling at the company’s Gundockerta South project, located 72 kilometres east of Kalgoorlie in Western Australia.

Alliance Resources completed a 66 hole aircore drilling program over the northern part of the target zone at the Gundockerta South project, which it considers prospective for greenstone-hosted orogenic gold deposits.

A total of 3,007 metres was drilled to test for low-level gold in regolith beneath a large zone of sporadic gold in soil anomalism.

Alliance said all holes were drilled vertically on a 160 metre by 640 metre spaced grid and the average depth of drilling was 46m.

Preliminary gold assays based on 4m composite scoop samples have been received for all holes, with two holes returning anomalous results, as follows:

GSAC016
4 metres at 0.15 grams per tonne gold from 0m; and

GSAC062
4m at 0.31g/t gold from 8m.

Alliance explained GSA016 is associated with transported cover and siliceous duricrust over strongly carbonate altered mafic and GSA062 is associated with upper saprolite over deeply weathered mafic saprock.

“These results definitely warrant follow up,” Alliance Resources managing director Steve Johnston said in the company’s announcement to the Australian Securities Exchange.

“The drilling grid is very wide spaced and both intercepts are open in at least one direction.”

The company outlined work for the coming financial year to include confirming the intercepts by submitting the one-metre samples for assay and conducting the next phase of aircore drilling over the southern part of the target zone and infill drilling of these anomalous results.

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

 

Sheffield Resources Granted Thunderbird Miscellaneous Licences

/in , /by

THE BOURSE WHISPERER: Sheffield Resources (ASX: SFX) advised that it has been granted Miscellaneous Licences 04/82 and 04/83 by the Western Australian Department of Mines, Industry Regulation and Safety.

Sheffield Resources said the grant of the miscellaneous licences follows completion of a coexistence agreement with Walalakoo Aboriginal Corporation (WAC), the prescribed body corporate for the Nyikina Mangala native title holders, securing road access to the company’s Thunderbird mineral sands project.

“The finalisation of the coexistence agreement with the Nyikina Mangala people announced last week provided for the granting of the Miscellaneous Licences today,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“We now have full miscellaneous licence access to the mining lease application area.

Sheffield Resources indicated it will continue to advise the community and shareholders of further developments in relation to Thunderbird.

 

Email: info@sheffieldresources.com.au

Website: www.sheffieldresources.com.au

 

Alto Metals Defines ‘Superb’ Anomaly at Sandstone

/in , /by

THE DRILL SERGEANT: Alto Metals (ASX: AME) announced that soil sampling has located a strong linear gold-in-soil anomaly approximately 12 kilometres south of the Sandstone township in Western Australia.

Alto Metals said assays from 24 samples out of a total of 74 samples collected in the vicinity of a geophysical target approximately 12km south of Sandstone have defined a 1,500 metres-long, south-east striking gold in soil anomaly of plus-7ppb gold.

The maximum value was 228ppb gold, and 13 samples returned over 15ppb gold.

Alto said the assayed gold in soil anomaly, now known as the Superb Anomaly, lies in an area of iron rich duricrust (or laterite).

“It is not known at this stage whether the gold in the soil is representative of a primary gold source at depth or is alluvial in nature (ie. transported),” Alto Metals said in its ASX announcement.

“Further soil sampling is required to determine the extent of the gold in soil anomaly which is open to the south east.”

The company has lodged a Program of Work (PoW) for Aircore drilling with the Department of Mines, Industry and Safety but approval is yet to be granted.

 

Email: admin@altometals.com.au

Website: www.altometals.com.au