Rox Resources on The Hunt for New Projects

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Historically, Rox Resources (ASX: RXL) has demonstrated its ability to acquire, develop, and monetise quality projects.

Rox Resources is currently sitting on a healthy war chest of approximately $12 million after selling the Reward zinc project in the Northern Territory to Teck Australia Pty Ltd.

Rox wasted very little time in showing its strategic intentions by landing a 100 per cent-acquisition of the Collurabbie nickel- gold-copper-PGE project in Western Australia.

The Collurabbie project tenements are situated due east of Rox’s other current operations – the Fisher East nickel sulphide and Mt Fisher gold projects.

The latest results from aircore drilling of strong nickel-copper-PGE anomalies at Collurabbie have again highlighted the project’s potential.

The drill program produced standout results, including:

Olympia North

CXAC013
24 metres at 0.38 per cent nickel, 0.17 per cent copper, 126ppb platinum, 235ppb palladium from 28m, including 8m at 0.5 per cent nickel, 0.29 per cent copper, 228ppb platinum and 317ppb palladium from 36m; and

CXAC086
32m at 0.6 per cent nickel, 0.36 per cent copper, 273ppb platinum, 405ppb palladium from 4m, including 20m at 0.7 per cent nickel, 0.4 per cent copper, 305ppb platinum, 464ppb palladium from 8m.

Ortus

CXAC008
24m at 0.56 per cent nickel, 0.12 per cent copper, 178ppb platinum and 212 palladium from 16m, including 12m at 0.74 per cent nickel, 0.19 per cent copper, 309ppb platinum and 315ppb palladium from 20m; and

CXAC046
24m at 0.56 per cent nickel, 0.04 per cent copper, 78ppb platinum and 84ppb palladium from 16m, (hole did not reach target depth).

In addition, anomalous nickel results were received north of Ortus along the Beta Sill.

The results indicate lateritic enrichment above a potential large low-grade disseminated nickel sulphide mineralized body:

CXAC011
27m at 0.45 per cent nickel from 4m; and

CXAC041
20m at 0.39 per cent nickel from 4m.

An aircore drilling campaign was completed at Mt Fisher, where Rox has already identified mineral resources of more than 86,000 ounces of gold.

The latest drilling focused on the Dam, Damsel, Dirks and Shiva prospects, delivering results that provide excellent potential for further exploration to add to the current resources.

Rox believes the Dam-Damsel-Shiva area has similarities to the 3.6 million-ounce Bronzewing deposits to the southwest, and is using the knowledge base built up in the 1990s and 2000s regarding Bronzewing and the Yandal Belt in its exploration program design.

The Damsel area hosts a gold indicated mineral resource of 726,000 tonnes at 2.3 grams per tonne gold for approx. 55,000 contained ounces of gold.

The aircore drilling extended the anomaly surrounding this resource by 800m to the south, suggesting possible extension and increase to the existing mineral resource.

Highlights of the aircore drilling include:

MFAC109
4m at 6.1g/t gold from 48m;

MFAC146
4m at 2.75g/t gold from 32m;

MFAC153
8m at 2.4g/t gold from 20m; and

MFAC161
4m at 3.5g/t gold from 40m.

The Collurabbie acquisition set a precedent for the company that it is eager to repeat in the coming months.

Rox is on the lookout for the acquisition of suitable projects, which it hopes will deliver meaningful shareholder value and, just as importantly, allow the company to progress to near-term production.

No doubt such an acquisition is liable to take ‘flagship’ billing from the company’s current portfolio, however, Rox is determined to continue exploration and development activities at its nickel and gold assets.

“We are watching the nickel price closely and have been encouraged by its recent run,” Rox Resources managing director Ian Mulholland told The Resources Roadhouse.

“Having said that, we do believe nickel probably has another year or two before it reaches a price where we will see previously working operations reopen and deposits, particularly the class 1 sulphide deposits, become economic.

“All the signs are there – demand is increasing, and supply has gone down.”

Mulholland’s optimism received support from some powerful corners.

The World Bank Group, in its 2017 Commodity Markets Outlook, October said, “All metals prices increased in the third quarter, led by zinc and nickel, which jumped 14 percent on robust demand and reduced mine production (zinc) and solid stainless steel demand (nickel).

“The market is expected to remain in deficit in the near term.

“Over the longer-term, demand is seen increasing to meet growing needs for nickel in lithium-ion batteries for electric vehicles and storage.”

According to recent research note from McKinsey & Company – The future of nickel: A class act, the global nickel market is about to enter a two-nickel market, comprising two distinct commodity segments.

These are traditional ferronickel pig iron (NPI) players (Class 2) versus (Class 1) the rechargeable batteries for electric vehicles (EVs).

“The global nickel market has traditionally been driven by stainless steel production using both high-purity class 1 and lower-purity class 2 nickel products,” McKinsey & Company said.

“Significant expansion of low-cost class 2 nickel capacity over the past decade – in particular NPI – has caused nickel prices to fall from the highs of US$29,000 per metric tonne in 2011 to an average of just above US$10,000 per metric metre in 2017, resulting in the curtailment of higher-cost class 1 capacity.

“However, the growing adoption of EVs and the resulting demand for high-purity nickel is providing a much-needed reprieve for the industry as a shift towards nickel-rich battery chemistries accelerates.”

McKinsey suggested that with demand for EVs expected to hit 31 million units by 2025, demand for class 1 nickel could increase from its current 33,000 tonnes to 570,000 tonnes by 2025.

Other analysts suggest this could occur much earlier, perhaps 2020.

Rox may be ready for the nickel worm to turn, but it is not prepared to sit around and wait for it to happen.

Since declaring its project accumulation strategy last year, the company has undertaken a first-pass review of many opportunities, assessing them against its project acquisition criteria.

Three projects are currently the subject of more advanced assessment including due diligence, data review and suitability to deliver near-term production and revenue.

Rox has developed a stringent, well-structured investment and technical criteria which each project is being assessed against.

It has identified specific commodity targets which are currently displaying strong macro fundamentals, including increased pricing, but which show a lack of any new near-term production options to cater for the surging demand globally.

These commodities include, but are not restricted to zinc, which has recently seen prices hit a ten-year high, and copper, with prices recently at three-and-a-half year highs on supply fears due to a lack of near-term production projects and increasing demand from major economies such as China.

“We remain one of the ASX’s well-cashed-up junior explorers with $12 million at the end of December,” Mulholland said.

“Our exceptional portfolio of existing assets provides exposure to the nickel and gold markets and we will continue to monitor market conditions, particularly with respect to where nickel goes in coming years.

“Importantly, our financial position gives us the firepower to aggressively pursue near-term growth opportunities and we are looking at numerous projects across a range of attractive commodities that we think can deliver significant shareholder value in the short term.”

 

Rox Resources Limited (ASX: RXL)
…The Short Story

HEAD OFFICE
Level 1, 34 Colin Street
West Perth WA 6005

Ph: +61 8 9226 0044

Email: admin@roxresources.com.au
Web: www.roxresources.com.au

DIRECTORS
Stephen Dennis, Ian Mulholland, Brett Dickson

Musgrave Minerals Drills with Standalone Intent

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Musgrave Minerals’ (ASX: MGV) New Years’ resolution is simple enough: to maintain the flow of positive drilling results coming from the company’s Cue project in Western Australia and define a resource capable of sustaining a standalone operation.

Musgrave Minerals’ Cue project is in the Murchison district of Western Australia and contains the 4.83 million tonnes at 2.84 grams per tonne gold for 441,000 ounces of gold.

The main contributors to the resource are the Lena and Break of Day deposits, the latter of which being where Musgrave has concentrated a great deal of drilling activity.

Break of Day’s currently hosts an Indicated and Inferred Mineral Resource of 868,000 tonnes at 7.15g/t gold for 199,000 ounces of gold, which Musgrave expects to increase from further drilling.

The company’s confidence is understandable given results received towards the end of 2017 from a reverse circulation (RC) drilling program.

Intersections included:

17MORC108
11 metres at 13.8 grams per tonne gold from 115m down hole, including 6m at 24.5g/t gold from 120m down hole;

17MORC107
10m at 7.6g/t gold from 96m down hole;

17MORC117
6m at 8.2g/t gold from 84m down hole, including 2m at 20.9g/t gold from 86m down hole; and

17MORC118
3m at 12.6g/t gold from 142m down hole within a broader interval assaying 39m at 1.7g/t gold from 142m.

These results were followed by further outstanding results the company interpreted to highlight the opportunity it has at Break of Day to grow the Resource.

Musgrave concluded a successful 2017 by announcing further intersections from Break of Day that included:

17MORC127
30m at 11.3g/t gold from 120m down hole, including 4m at 22.3g/t gold from 120m and 8m at 28.1g/t gold from 136m;

17MORC125
6m at 13.2g/t gold from 56m down hole, including 3m at 23.5g/t gold from 136m;

17MORC120
4m at 9.3g/t gold from 288m down hole, including 2m at 16.8g/t gold from 289m; and

17MORC116
3m at 9.2g/t gold from 278m down hole.

The intercept recorded in17MORC120 is of note as it lies more than 160m outside the current resource boundary.

Similarly, the high-grade intersection in 17MORC127 highlights a substantial high-grade pod at relatively shallow depths that Musgrave believes will be potentially amenable to open-cut mining.

While all this was happening, Musgrave claimed a new gold discovery at the Louise prospect, located 750m south of the Break of Day deposit.

As part of the RC drill program at Break of Day, three drill holes were carried out on the Louise prospect along the same shear zone that hosts Break of Day with mineralisation observed to be similar in style and nature.

Drill holes 17MORC112 and 17MORC111 both intersected the targeted structure and quartz lode at Louise demonstrating continuity of mineralisation over strike.

17MORC112 intersected:
4m at 15.4g/t gold from 79m down hole, including 2m at 29.9g/t gold from 81m, which remains open to north and down dip.

Musgrave interpreted the northern plunge from the historical workings at surface through 17MORC112, to be similar to the plunge on the Velvet Lode at Break of Day.

“This was a great initial result at Louise as it immediately highlighted potential exists for new high-grade gold discoveries within the 20 kilometres of prospective strike we control in this under explored belt,” Musgrave Minerals managing director Rob Waugh told The Resources Roadhouse.”

“Louise is the second high-grade gold discovery for Musgrave within 18 months, which is a great achievement.”

“The mineralisation is within the southern continuation of the Break of Day shear and is wide open along strike and down dip.”

“It also combines with the high–grade result in 17MORC120 on the Velvet lode at Break of Day to highlights the existence of a substantial target for us to focus on between Break of Day and the new Louise prospect.”

The high-grade gold intersection at Louise demonstrates the potential for the formation of multiple high-grade gold shoots, particularly since there has only been one shallow basement drill hole carried out testing the shear zone along the 750m of strike between Louise and Break of Day.

So, a new year sees a new program of drilling announced for both Break of Day and Louise.

A program of diamond drilling being carried out at Break of Day has been tasked with extending the high-grade shoots outside the current resource boundary that remain open down plunge, where Musgrave intersected 11m at 54g/t gold in drill hole 17MORC084 mid-2017.

The current diamond drilling program was commenced in early December and is expected to have first assays returned in early February.

The Louise discovery is also being targeted by a nine-hole program of reverse circulation (RC) drilling designed to follow-up the near surface discovery intersection, from hole 17MORC112.

First assays from this program are also expected to arrive in late February.

“The diamond drilling is being undertaken to confirm the continuity of the geology and extend the gold mineralisation in the high-grade gold shoots at depth at Break of Day,” Waugh said.

“The RC follow-up drilling at Louise will aim to extend the newly discovered near surface high-grade gold mineralisation as well as infilling the 750-metre gap that currently exists between the Break of Day and Louise drill results.

“It should be no surprise that the company has classed this as a high-priority area, as we are confident there is significant upside potential to extend and grow our current high-grade gold resource.”

To the north west of the Break of Day deposit, and not to be forgotten, is the Lena deposit.

Although it is lower grade at an average grade of 1.8g/t gold per tonne, Lena boasts JORC resources of approximately 153,000 ounces.

Mineralisation at Lena remains open to the North and down plunge while the Leviticus and Numbers deposits south of Break of Day add another 50,000 ounces to the resource base.

These figures come into play when it taken into consideration that the company is targeting gold resources to support a standalone production facility.

A recent research not from Veritas Securities identified ongoing exploration would continue to add resources to support a standalone facility producing around 60,000 ounces of gold per annum for a capital cost Veritas estimated at approximately $60 million.

Veritas also noted the extent of infrastructure within the Murchison region, saying four third party mills dot the landscape with potential available for toll milling.

“Two of these mills are nearby, within 40 kilometres of Break of Day,” the analysts identified.

“Westgold’s Tuckabianna Mill (currently being refurbished by Westgold) with a capacity of 1.2 million tonnes per annum, and Ramelius Resources’ Mt Magnet Checkers Mill with a capacity of 1.7 million tonnes per annum.

“There are many reasons why either Ramelius or Westgold would wish to process high-grade ore from Break of Day.”

 

Musgrave Minerals Ltd (ASX: MGV)
…The Short Story

HEAD OFFICE
28 Richardson Street
West Perth WA 6005

Ph: +61 8 9324 1061

Email: info@musgraveminerals.com.au
Website: www.mugraveminerals.com.au

DIRECTORS
Graham Ascough, Rob Waugh, Kelly Ross, John Percival

Alliance Resources Ready to Move at Weednanna

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Alliance Resources (ASX: AGS) wasted little time in letting the market know of its intentions for 2018.

Alliance Resources had hardly placed the New Year’s Eve champagne bottles in the recycling bin when it announced results from the third round of reverse circulation (RC) drilling at its flagship Weednanna gold prospect late in 2017.

The Weednanna gold prospect has a strike length of 1.3 kilometres, along which Alliance has identified exceptionally high-grade zones that are open in at least one direction.

The company has taken a systematic approach to Weednanna, including a review of past exploration results, which initially saw it focus on three high-grade areas – Targets 1, 2 and 3 with the aim of drilling for sufficient detail to enable a mineral resource estimate to be established.

Early results across Targets 1, 2 and 3 produced bonanza gold grades of:

49 metres at 6.3 grams per tonne gold from 45m, including 21m at 10.7g/t gold from 48m;

14m at 36.1g/t gold from 118m, including 5m at 95.6g/t gold from 120m;

16m at 7.7g/t gold from 81m, including 8m at 12.9g/t gold from 88m; and

60m at 5.6g/t gold from 47m, including 9m at 15.6g/t gold from 63m and 8m at 13.4g/t gold from 99m.

Buoyed by these results, Alliance widened its scope to include drilling at Target 4, which confirmed it as a new high-grade gold zone within the project complex.

The entire program saw a total of 21 RC holes (17WDRC050-70) drilled, 15 of which returned intercepts of greater than one gram per tonne gold, with four holes returning greater than 50g/t-metres gold.

The most recent results to be announced included:

17WDRC051
35 metres at 3.65 grams per tonne gold from 43m (Target 1), including 9m at 8.91g/t gold from 44m;

17WDRC057
6m at 13.63g/t gold from 59m (Target 2), including 3m at 26.6g/t gold from 62m;

17WDRC067
15m at 18.21g/t gold from 107m (Target 4), including 7m at 35.94g/t gold from 109m; and

17WDRC070
3m at 25.45g/t gold from 81m (Target 4), including 1m at 74.2g/t gold from 81m.

“In February we will be launching a fourth drilling program at Weednanna,” Alliance Resources managing director Steven Johnston told The Resources Roadhouse.

“Weednanna has assumed the greatest importance for us, especially since our drilling programs have continued to define these discrete, but high-grade, shoots.

“We have drilled the first three targets out to a spacing that makes a good case for launching into a Mineral Resource.

“We have one more program to conduct there, which will be carried out on Target 4, to bring it up to the same drilling pattern and then we’ll commence 3D modelling and a mineral resource estimate on those high-grade target areas.”

The Weednanna gold prospect forms part of the Wilcherry Project Joint Venture in the Gawler Craton of South Australia between Alliance (67.35%) and Tyranna Resources (ASX: TYX) (32.65%).

In September 2016, Alliance acquired a 51 per cent interest in the Wilcherry project for a moderate outlay of $2 million.

The deal placed Alliance in the position as the JV leader of an advanced project in the mineral-rich Gawler Craton that has, to date, been the subject of about $55 million in past exploration.

“We have been increasing our equity in the JV as a result of Tyranna Resources electing not to contribute to the fiscal year budget from 1 July 2017,” Johnston explained.

“By the end of the December 2017 Quarter we had increased our equity to 67.35 per cent, which will continue to increase in line with each quarterly expenditure.

“We believe the original decision we took to get involved with the project has paid off.

“We are achieving some great gold results and I am increasingly confident that Weednanna will be a mine one day and hopefully that will be sooner than later.”

Those hopes were boosted with positive results received from recent preliminary metallurgical testing of high-grade gold samples from Targets 1 and 3 at the Weednanna gold prospect.

The results demonstrated that at a grind size of P80 75 microns, cyanide bottle roll gold extraction over a 24 hour period was 89.4 per cent for WDMET001 and 92.8 per cent for WDMET003.

Using a finer grind size of P80 38 microns incrementally increased gold extraction for WDMET001 to 90.8 per cent and WDMET002 to 95.5 per cent.

“The positive results from the test work ticked an important box in the path to production,” Johnston said.

“That being the gold mineralisation is amenable to conventional grinding and cyanide recovery techniques.”

With Weednanna progressing to a satisfactory beat, Alliance is also looking to progress its Nepean South gold project, located 26 kilometres southwest of Coolgardie in Western Australia.

Alliance considers Nepean South to be prospective for both komatiitic-hosted nickel sulphide deposits and greenstone-hosted orogenic gold deposits.

Results from a final phase of infill auger soil sampling completed in the north-eastern part of the project area confirmed gold anomalism the company had previously indicated by wider-spaced sampling.

Subsequent results from all phases of soil sampling defined two coherent anomalies greater than 7.5ppb gold and totalling 2.1 square kilometres in area.

The company completed a 90-hole aircore drilling program in January, the first phase of which is designed to test for low-level gold in regolith (weathered Archaean rock) anomalism beneath gold in soil sampling anomalism.

Alliance believes results from this program could indicate vectors towards a primary gold deposit.

“We’ve currently awaiting the assays from Nepean South, which is something that I’m very excited about – not to take anything away from Wilcherry – but I certainly hope that Nepean will produce something of interest,” Johnston said.

“At Nepean we have a couple of large soil anomalies, the bulk of which have never been drilled before.

“The Nepean project is an increasingly interesting area that is located just four kilometres to the southwest of the Nepean nickel mine.

“Initially we picked the ground up looking for nickel, but through the exploration work we have carried out we have outlined gold anomalism there.

“It’s proximity to Coolgardie means it is located close to several gold processing plants, any of which could possibly take the mill feed should we prove up an economic discovery.”

Alliance is also continuing to work up regional targets within the Wilcherry JV area from the 26 conductive targets that were identified by a Heli-EM survey carried out in 2016 that may be prospective for massive sulphides, including copper, tin, zinc, lead and silver.

“The ground EM crew is continuing to work on identifying the next targets from that data.

“We are still conducting regional exploration for base metals and we only need to unlock one of those targets to be a game changer.

“After we’ve completed the drilling at Weednanna we’ll move the RC rig onto the next batch of regional targets.”

 

 

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

Cassini Resources Inks Option to Acquire WA Nickel-copper-Cobalt Project

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THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) announced it has secured an option to acquire the Yarawindah Brook nickel-copper-cobalt project in Western Australia.

Cassini Resources explained that with its West Musgrave Joint Venture partner OZ Minerals (ASX: OZL) proceeding to Stage 2 of the project earn-in, the company is keen to recommence activities at its other, 100 per cent-owned exploration projects.

“Cassini is actively identifying and reviewing new exploration and development opportunities to complement its existing portfolio,” Cassini Resources said in its ASX announcement.

“As part of this process, Cassini has entered an option agreement to earn into the Yarawindah Brook project through private company Souwest Metals Pty Ltd, a company associated with Kalgoorlie prospector Mr Scott Wilson.”

Yarawindah Brook is located 130 kilometres northeast of Perth, in agricultural land near the township of New Norcia.

The project has only been subjected to limited nickel, copper and cobalt exploration despite having a favourable regional setting, prospective geology and near-surface occurrences of nickel and copper.

Historic exploration focussed primarily on a small platinum and palladium (PGEs) resource, which Cassini considers to be a, “path-finder” anomaly for massive nickel – copper – cobalt sulphides.

The most recent drilling, undertaken in 2007, targeted surface EM anomalies and returned encouraging results from hole YWRC0083 including:

7 metres at 1.3 per cent nickel, 0.22 per cent copper, 0.06 per cent cobalt and 432ppb lead from 74m.

Cassini indicated that no further follow-up drilling was conducted due to budget limitations of the previous operator during the exploration downturn post-GFC.

“Cassini views the project as an excellent opportunity to apply its geological expertise and learnings in nickel-copper systems from the West Musgrave project to an apparently similar mineralised system with only limited modern exploration,” the company added.

“Further, the project is conveniently located adjacent to roads and power, providing development advantages if exploration proves successful.

“The project provides Cassini with further exposure to nickel, copper and cobalt, three critical components of advanced technology and a decarbonised future.”

 

 

Email: admin@cassiniresources.com.au

Website: www.cassiniresources.com.au

Alliance Resources Increases Wilcherry Hil JV Stake

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THE BOURSE WHISPERER: Alliance Resources (ASX: AGS), through its wholly-owned subsidiary Alliance Craton Explorer Pty Ltd (ACE), has increased its interest in the Wilcherry project Joint Venture (WPJV) in South Australia.

Through the ACE transaction, Alliance’s interest in the Exploration Area now stands at 67.35 per cent.

Trafford Resources Pty Ltd, a wholly owned subsidiary of Tyranna Resources (ASX: TYX) has diluted its interest in the WPJV Exploration Area to 32.65 per cent.

Alliance previously announced that Trafford had elected not to contribute to the WPJV approved Programme and Budget for the period 1 July 2017 to 30 June 2018.

“The current change in interests is a result of ACE sole funding expenditure for the quarter ended 31 December 2017,” Alliance Resources explained in its AXS announcement.

“ACE’s interest in the WPJV Exploration Area is expected to increase to 77.5 per cent by 30 June 2018, from sole funding the FY2018 P&B expenditure.

“Further RC drilling is planned at Weednanna in the second half of February to test the limits of the high-grade gold zone at Target 4 and to test a new gold target area using the geological model and knowledge gained to date.”

 

 

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

Metalicity Prepares to Drill new Zinc Acquisition

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THE DRILL SERGEANT: Metalicity (ASX: MCT) has completed the acquisition of the Napier Range zinc project, located in the Lennard Shelf of the Kimberley Region in Western Australia.

Metalicity considers the high-grade Napier Range project to represent a low capital and near term producing zinc production opportunity with excellent exploration potential.

The project currently consists nine targets that have been identified for drill testing along a four-kilometre strike.

Metalicity has resource and exploration drilling planned for the March Quarter within the Wagon Pass deposit as well as along the 4km strike extent at Napier Range, subject to requisite approvals and completion of the wet season in the Lennard Shelf of the Kimberley Region.

At Napier Range, Glencore and Teck (via Lennard Shelf Pty Ltd (a 50:50 joint venture) retain an option to earn a 51 per cent participating interest in the Wagon Pass tenements if a new JORC Inferred Resource has been discovered, by either completing and sole funding a Feasibility Study, or spending $20 million on the assessment of the inferred resources.

“Securing the Napier Range zinc project is a significant step forward for Metalicity’s zinc strategy by providing a potential high-grade, low capital, near term zinc development project that complements the pathway for our 100 per cent-owned Admiral Bay zinc project,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“Metalicity has completed field work, exploration targeting and base case financial modelling and looks forward to commencing an aggressive exploration program to determine the projects capacity to provide a source of cashflow for the company’s ongoing advancement of the long-life Admiral Bay zinc project, while also seeking new discoveries at the Emanuel Range zinc project.”

 

Website: www.metalicity.com.au

Alloy Resources Takes Back Control at Horse Well JV

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THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) struck a deal with its Joint Venture partner, Doray Minerals (ASX: DRM) over the Horse Well gold project Joint Venture in Western Australia.

Alloy Resources explained that under the deal, it will regain a majority interest and assume management control of exploration at the Horse Well Gold JV, which is located in the north eastern goldfields adjacent to Northern Star’s Jundee Gold Mine.

“We believe the project is one of the best early stage gold exploration properties in the Goldfields with a shallow high-grade Inferred Mineral Resource of 75,000 ounces at 2.76 grams per tonne gold and numerous prospects at various stages of exploration,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“Added to this is the project’s excellent location adjacent to new discoveries and growing mining centres at Jundee and Bronzewing.

“We believe the value creation opportunity through continued exploration at Horse Well is compelling.

“The company will now complete the handover and then prioritise exploration activities.

“We have advanced drill targets ready to go at Dusk til Dawn and Warmblood, and also air core drill anomalies up to seven kilometres long which are also ready for infill drilling.

“Perhaps the most intriguing target is the Celia Shear extensions to Overland Resources new high-grade surface quartz vein discovery at Coralie Jean which has only emerged in the last quarter.

“All in all it is a great time to be exploring for gold in Australia and we look forward to delivering lots of activity and exploration success.”

 

 

Email: info@alloyres.com

Website: www.alloyres.com

Argent Minerals Acquires Tasmanian Double

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THE BOURSE WHISPERER: Argent Minerals (ASX: ARD) announced two project acquisitions in the Mount Read Volcanics belt of Western Tasmania.

Argent Minerals has been granted the Ringville and Queensberry tenements by the Tasmanian Government having competed in a merit-based assessment processes, during which the company’s proposed exploration plans and capabilities were evaluated in separate competitive bidding environments.

Argent claimed the Ringville tenement (EL12/2017 ) position as being strategically situated between two world class mines.

It sits 300 metres west of Mine Lease 28M/1993 containing the Rosebery high-grade polymetallic mine owned by MMG, and immediately to the east of (and partially overlain by) Mine Lease 12M/1995 containing the Renison Bell Tin Mine.

“The tenement contains 52 recorded mineral occurrences, including three deposits to which pre-JORC historical mineralisation estimates have been attributed, featuring tin, copper, zinc, lead and silver,” Argent Minerals said in its ASX announcement.

“The geology in the area comprises Early Cambrian to Devonian elements with identified potential for mineral deposits similar to Mt Read polymetallic volcanic-hosted massive sulphide (VHMS), Renison intrusion related skarn tin and vein lode, and Avebury nickel sulphide.”

The Queensberry tenement (EL9/2016) is located 11km northwest of the Mount Lyell copper mine, which Argent described as Australia’s oldest continually operating mining field, having produced more than 1.8 million tonnes of copper, two million ounces of gold, and 41 million ounces of silver over approximately 120 years

“The 82 square kilometre Queensberry tenement area is heavily populated with old mine workings and 10 recorded mineral occurrences,” Argent said.

“Four of these comprise the historic Queensberry Mine, which according to government records, achieved grades of up to 40 to 56 per cent lead, and 6 to7 ounces per tonne silver

“The Queensberry tenement position covers highly prospective parts of a Tyndall Group correlate, host to the Henty-Mt Julia gold deposit, and the White Spur Formation directly overlying the Rosebery-Hercules VHMS deposits.”

 

Website: www.argentminerals.com.au

Cobalt Blue Completes Thackaringa Drilling in Preparation for Resource Upgrade

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THE DRILL SERGEANT: Cobalt Blue Holdings (ASX: COB) released final assays from a resource definition drilling program completed at the company’s Thackaringa cobalt project in New South Wales last year.

Cobalt Blue Holdings said the results demonstrate strong continuity along both strike and down dip at the Railway, Pyrite Hill and Big Hill deposits.

The assay results are now being incorporated into geological models in preparation for a Resource Upgrade, which is expected by the end of February.

The company explained the program was designed to upgrade to Indicated Resource, expand the overall resource base, provide comprehensive geotechnical information and provide samples for additional metallurgical testing.

Highlights from the drilling include:

17THR059
40 metres at 1,056ppm cobalt, 11.8 per cent sulphur and 14.3 per cent iron from 95m;

17THR065
39m at 1,010ppm cobalt, 10.3 per cent sulphur and 9.9 per cent iron from 125m;

17TRD073
67m at 1,144ppm cobalt, 12.7 per cent sulphur and 13 per cent iron from 72m;

17THR088
47m at 1,194ppm cobalt, 11.6 per cent sulphur and 11.3 per cent iron from 107m;

17THR091
48m at 1,147ppm cobalt, 11.4 per cent sulphur and 11.3 per cent iron from 156m;

17THR094
75m at 1,207ppm cobalt, 11.9 per cent sulphur and 11.8 per cent iron from 149m;

17THD020
59m at 1,119ppm cobalt, 12.9 per cent sulphur and 12 per cent iron from 24m; and

17THD027
99m at 1,185ppm cobalt, 10.7 per cent sulphur and 10 per cent iron from 32m.

“This significant work program, conducted over 2H 2017 represents a major accomplishment for the Thackaringa cobalt project,” Cobalt Blue Holdings chairman Rob Biancardi said in the company’s announcement to the Australian Securities Exchange.

“Our understanding of Thackaringa’s resource has materially improved over the past year and this work forms a baseline for our upcoming Resource Upgrade, expected by end February.”

 

Email: info@cobaltblueholdings.com

Website: www.cobaltblueholdings.com

Northern Minerals Reveals Regional Potential at Browns Range

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THE DRILL SERGEANT: Northern Minerals (ASX: NTU) declared high-grade rare earth oxide (REO) geochemical results from the company’s Browns Range project in Western Australia.

Northern Minerals collected a total of eight rock chip samples in December 2017 from seven prospect areas across the project with some collected from known prospects, while others were from new target areas.

The company claimed some results returned from the high-grade rock chip samples hit up to 7.19 per cent total rare earth oxides (TREO), which it said was, “significant, given the average grade of the Browns Range deposits is 0.66 per cent TREO”.

At this stage, Northern Minerals believes the high proportion of Heavy Rare Earths for nearly all of the samples indicate that the rare earth mineral is likely to be xenotime, the same as at the company’s first two open pit mines Gambit West and Wolverine.

The very high-grade sample (7.19% TREO) was achieved at Iceman, a prospect Northern Minerals has identified as having a strong geochemical surface anomaly over 200 metres in length, which is yet to be drill tested.

A program of RAB and/or RC drilling will commence in the June quarter, aimed at providing a first pass assessment of several of the new prospects and targets.

If successful, a program of RC drilling will be undertaken in the September quarter aimed at proving up and increasing the Mineral Resources at Browns Range.

A private Placement to sophisticated investors announced on the 28th of December 2017, raising $2.15 million via the issue of approximately 27.56 million shares at 7.8 cents per share, is set to deliver the final $1 million in the coming few days.

A further Share Purchase Plan is closing on the 31st of January 2018.

“These exploration results, although early stage, highlight the significant blue-sky upside potential that exists at Browns Range,” Northern Minerals managing director and CEO George Bauk said in the company’s announcement to the Australian Securities Exchange.

“With a plan in place to extend the life of the potential full-scale project to more than 20 years, the new funds received from the Placement and the SPP allow us to accelerate the program and get drill rigs back on the ground in the June quarter.”

 

Website: www.northernminerals.com.au