Kin Mining Confirms East Lynne Mineralisation Continuity

THE DRILL SERGEANT: Kin Mining (ASX: KIN) reported new assay results from recent aircore (AC) drilling at the East Lynne prospect at the company’s 100 per cent-owned Cardinia Gold Project (CGP), located near Leonora in Western Australia.

The Kin Mining carried out the recent drilling as part of its ongoing Phase 3 drilling program.

Assay results were received for drilling Lines 9 and 10 of 14 lines of AC drilling completed recently across the East Lynne trend.

Assay results include:

Line 9

4 metres at 1.23 grams per tonne gold from 20m, and 4m at 1.25g/t gold from 40m.

Line 10

4m at 0.92g/t gold from 28m.

Further assay results were received for in-fill Lines on the Collymore trend in the Northern Zone, including:

3m at 3.4g/t gold from 84m to EOH; and

4m at 3.14g/t gold from 16m.

The results confirm the continuity of the East Lynne mineralisation in AC drilling from Line 2 to Line 10, a distance of 3.2km

High-grade gold mineralisation in the near-surface environment is shown to be present above a broad zone of sulphide mineralisation marked by a strong IP anomaly above a major geological feature at East Lynne.

“Air-core drilling is continuing to deliver the goods at East Lynne, with more encouraging ore grade results seen in the southern part of the Central Zone and some significant high-grade results from the first batch of in-fill drilling in the Northern Zone in what we now refer to as the Collymore Trend,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The high-level takeaways for investors are that we have confirmed the continuity of shallow mineralisation in air-core drilling over a 3.2 kilometres strike length from lines 2 to 10.

“This combined with the favourable underlying geology and structures gives us great confidence that we may be onto something quite significant at East Lynne.

“Before we are able to confirm this, we will need to see the results of the initial RC drilling we have completed and diamond drilling which is in progress.

“The first 12 RC holes have been drilled in and around the high-grade shallow intercepts seen in lines 3-9.

“We are awaiting assays. In the meantime, diamond drilling is continuing in a systematic fashion to test the underlying IP anomaly.

“The results should give us a much clearer picture of the scale and significance of what we might be dealing with at East Lynne.”








Eagle Mountain Mining Expands Oracle Ridge Tenure

THE BOURSE WHISPERER: Eagle Mountain Mining (ASX: EM2) has staked 105 Unpatented Mining Claims surrounding the company’s 80 per cent-owned Oracle Ridge copper mine project in Arizona in the United States.

Eagle Mountain Mining identified the claims via follow-up of geophysical anomalies in the near-mine area, in its pursuit of expanding its potential mineable resource base.

The new claims are within five kilometres of mine portals and cover two prospective areas named OREX and Red Hawk.

OREX is prospective for skarn-hosted high-grade copper-silver-gold mineralisation while Red Hawk is potentially prospective for porphyry copper mineralisation.

The areas for the claims were selected following a systematic exploration program completed by Eagle Mountain’s technical team over the past nine months.

The program included regional geophysics, multi-spectral image analysis, historical data review and geological mapping and sampling.

“While the drill rig is currently testing extensions to the Oracle Ridge orebodies, it is pleasing to see the results of the regional work that the team has been involved with over the past nine months,” Eagle Mountain Mining CEO Tim Mason said in the company’s announcement to the Australian Securities Exchange.

“The second pillar of our exploration strategy at Oracle Ridge is to identify near-mine opportunities for expanding our resource base and expand our footprint in areas prospective for porphyry copper mineralisation, and it is exciting to see this coming to fruition.

“With the recently completed ground staking we have secured a strong land position over three high-quality targets, and I am also excited to see the regional work confirming our conceptual model for the greater Oracle Ridge mineralisation system.

“While there is a lot more work to do, new evidence supports our model for a deeper source for the copper, silver and gold at Oracle Ridge.”






Cazaly Resources Takes 100% Ownership at Halls Creek Project

THE BOURSE WHISPERER: Cazaly Resources (ASX: CAZ) has purchased 80 per cent of the Halls Creek project from 3D Resources (ASX: DDD).

Cazaly Resources will now own the project 100 per cent.

The Halls Creek project comprises granted Mining Lease 80/247 situated near the township of Halls Creek covering part of the Halls Creek Mobile Zone which is considered highly prospective for a range of commodities including base metals, gold, diamonds and nickel.

The project hosts the Mount Angelo copper-zinc deposit, an extensive zone of near surface oxidised copper-zinc mineralisation overlying massive copper-zinc sulphide mineralisation.

“The company will be conducting a review of all previous exploration on the project,” Cazaly Resources said in its ASX announcement.

“There remains very good upside potential with mapping defining the untested northern extensions of the deposit including mapping out of the important Banded Iron Formation capping unit.

“Furthermore, downhole EM conductors previously defined have yet to be drill tested.”

“Whilst the company has greatly added to its portfolio of projects with this acquisition and the recent staking of the large Ashburton project, the company will also continue to focus on the potential acquisition of a further advanced project.”








Azure Minerals Intersects Massive Nickel-Copper Sulphides with First Andover Hole

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) wasted no time recording nickel and copper sulphide mineralisation hits at the company’s recently acquired Andover project (60% Azure / 40% Creasy Group), located in the West Pilbara region of Western Australia.

Azure Minerals announced mineralisation has been observed in core from the first drill hole ANDD0001 on the Andover project.

Drill hole ANDD0001 intersected 40.7 metres containing nickel and copper sulphide mineralisation within mafic-ultramafic intrusive rocks from a depth of 80.60m.

The hole intersected 4.0m of massive nickel-copper sulphide mineralisation at 94.5m depth.

The company declared that high-grade nickel mineralisation had been confirmed by pXRF and verified by Azure’s onsite geologist.

“This strongly mineralised nickel and copper sulphide intersection from our first drill hole is an outstanding result and a great start to our maiden drilling program at Andover,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“Importantly, this mineralised intersection coincides with the interpreted position of the downhole EM (DHTEM) conductor, providing support that the conductors represent significant accumulations of sulphide mineralisation.

“The Andover project area does not appear to host sulphide-rich sediments, graphitic shales, conductive overburden or other characteristics that may generate false signatures for the EM surveys, and their absence is exciting given the size, depth and intensity of the conductors we have identified and are targeting.

“Due to excellent ground conditions and high drilling productivity, the second drill hole is already underway to test the down-dip extension of the ANDD0001 mineralisation.

“Drilling will continue through to the end of the year, with assay results for the first holes expected in late October to early November.

“Meanwhile the EM survey crew is mobilising to site and down hole surveying is expected to start in October.”




Ardea Resources Achieves High Recoveries From Metallurgic Test Work

THE DRILL SERGEANT: Ardea Resources (ASX: ARL) carried out its first metallurgical testwork on four metallurgical samples selected from the Big Four Gold resource, located on a granted mining lease within the company’s Goongarrie nickel cobalt project (GNCP), outside Kalgoorlie in Western Australia.

Ardea Resources explained the laboratory testwork, using industry standard (gravity-leach) procedures, achieved very high gold recoveries of nearly 98 per cent under conditions and reagent consumptions matching industry norms.

Although presently at a scoping study level, the company considers the results to be highly encouraging, suggesting they indicate the resource has potential to achieve reasonable prospects for eventual economic extraction of gold.

“Excellent results from the first ever metallurgical test work at the Big Four Gold project mark another significant step towards development of Ardea’s evolving gold assets,” Ardea Resources managing director Andrew Penkethman said in the company’s announcement to the Australian Securities Exchange.

“High recoveries and a lack of deleterious elements are exactly what any miner would want, and we have achieved that here at Big Four Gold.

“It also shows what can be achieved in WA during these difficult times, with Ardea’s drilling, resource modelling, and now metallurgical testing of the Big Four Gold project all being completed since commencement in February 2020.

“Work remains to be done at Big Four Gold, but these excellent results mean that, should the deposit be developed, several options will be available.

“This will be strongly influenced by our ongoing drill programs at several targets in the GNCP, including the Aphrodite North area and follow-up drilling at Lady Charlotte.

“Ardea’s gold programs aim to assess individual targets in their own right.

“They also mark the first pass systematic assessment of a modelled gold camp, potentially comparable to the Paddington mining centre to the south or the Menzies mining centre to the north, hidden beneath transported cover within Ardea’s expansive mining and exploration tenure.

“Of course, definition of the gold potential throughout the GNCP benefits efficient development of the extensive nickel and cobalt resources whilst maximising potential returns for all stakeholders.”






Alicanto Minerals Identifies New Wolf Mountain Copper-Gold Anomalies

THE DRILL SERGEANT: Alicanto Minerals (ASX: AQI) completed an IP survey that identified four new copper-gold anomalies near known mineralisation at the company’s Wolf Mountain prospect in Sweden.

Alicanto Minerals suggested the results highlight the potential of Wolf Mountain, which is one of several prospects within the Greater Falun project in Sweden, where drilling is underway.

The new IP anomalies are located between 500 metres and 1.8 kilometres from earlier drilling, targeting results of a previous IP survey that led to the discovery of distal copper-gold skarn with grades of up to 2.1 per cent copper, 69g/t Silver and 1.3 per cent zinc and grab samples at surface of 11.9 per cent copper and 2.9g/t gold hosted within a 100m strongly altered zone.

Apollo is of the opinion that these intersections may be the outer fringes of a large mineralised system with a higher-grade core.

A large airborne magnetic signature has also been spotted 2.5 kilometres south-south-west of the most southern of the four IP targets referred to above.

Alicanto geologists have interpreted this as a Causative Intrusion complete with copper-gold mineralisation as established in historical shallow drilling.

“These new anomalies are highly significant because not only are they strong signatures, but they are located right next to known copper-gold mineralisation,” Alicanto Minerals managing director Peter George said in the company’s announcement to the Australian Securities Exchange.

“The IP anomalies and magnetic signatures uncovered at Wolf Mountain are intriguing because they suggest the system could be very large (at least 5km).

“The drilling campaign now underway will test the numerous copper-gold and polymetallic skarn targets we have identified at Greater Falun, including these new anomalies at Wolf Mountain.

“We have mapped more than 2,000 outcrops and historical surface workings dating back centuries.

“When we overlay this information onto the huge amount of historical and recent geophysical data from the last 50 years, an impressive picture of the Greater Falun project is forming that has not been seen before.

“We have also found grab samples within the Greater Falun project that represent each zonation of the copper-gold skarn model – we now need to further prove up the model with our exploration drilling and vector into the Proximal part of the copper-gold Skarns.”









Apollo Consolidated Identifies Further Rebecca Mineralisation

THE DRILL SERGEANT: Apollo Consolidated (ASX: AOP) has drilled indications of further gold mineralisation at the company’s 100 per cent-owned Lake Rebecca gold project near Kalgoorlie in Western Australia.

Apollo Consolidated reported that shallow infill and exploration drilling at the 775,000 ounce Rebecca deposit has delivered multiple gold hits below the current Mineral Resources.

Drilling returned intercepts, including:

10 metres at 5 grams per tonne gold and 7m at 3.01g/t gold;

25m at 1.30g/t gold and 3m at 5.30g/t gold;

10m at 1.54g/t gold;

8m at 1.97g/t gold; and

10m at 1.34g/t gold.

All intersections sit below the base of the optimised pit shell Apollo used to constrain the Rebecca Mineral Resource estimate.

Apollo conducted additional RC exploration drilling out on three infill sections in what it described as a ‘saddle’ area that has seen limited drilling in the optimised pit shell.

This area sits just to the south of the high-grade Jennifer structure, which after the optimisation completed earlier this year, was identified as a priority target for additional drilling.

This drilling also returned encouraging results, most of which lie outside the resource model, and below pit design and upgrade previously modelled mineralisation in this area.

RC drilling was also carried out on infill and extensional positions at the new Cleo discovery, comprising twelve additional RC holes.

Exploration drilling is scheduled to continue to test under-explored structural targets lying between Cleo, Duchess and Rebecca, as well as key resource-definition positions at Duchess and Duke.

“Ongoing drilling continues to investigate under-drilled portions of the Lake Rebecca mineralised systems, with this set of results confirming coherent gold mineralisation below Mineral Resources in the area south of the high-grade Jennifer structure,” Apollo Consolidated said in its ASX announcement.

“The results have upgraded this part of the Rebecca deposit and when added to the data are likely to remove a ‘saddle’ seen in the February 2020 optimised pit shell.

“The company is continuing to test multiple target areas with drilling to upgrade and extend the current Mineral Resource estimate.”








Developer Looking to Conquer Niche Market

THE BOURSE WHISPERER: Global mining entrepreneur Robert Friedland has his finger firmly in another Australian mineral resources pie – with two of its tastiest ingredients being the electric vehicle (EV) market and the planned establishment of what could be a game changing scandium operation. By Mark Fraser

As co-chair of the Melbourne-based Clean Teq Holdings (ASX: CLQ, TSX: QTCQX and CTEQF), the enigmatic Friedland is one of the key drivers behind the development of the Sunrise Battery Minerals Project (SBMP) in central New South Wales, where the recent focus has primarily been on sizing up an EV-friendly nickel and cobalt operation to service the global automobile sector.

Located north of Fifield around 70 kilometres north-west of Parkes, the SBMP has a current lateritic reserve of 143 million tonnes grading 0.59% nickel, 0.10% cobalt and 74 parts per million scandium.

According to Clean TeQ, Sunrise is not only one of the largest cobalt deposits outside of Africa, but is also “one of the largest and highest grade accumulations of scandium ever discovered”.

Adding to this story’s allure is the fact that recent drilling at the site further confirmed the ore body’s potential to be a giant amongst Australia’s platinum resources.

Earlier this month the company released a project execution plan (PEP) for the (roughly) $2.37 billion mining and downstream processing undertaking, which is expected to achieve annual production of 21,293t nickel and 4,366t of cobalt during years 2–11 of its initial 25 year life, and an overall 18,439t per annum of nickel and 3,179t of cobalt between years 2-25.

Some 2.5 million tonnes of Sunrise’s lateritic ores will be put through a pressure acid leach circuit on a yearly basis. The autoclaves have already been bought, while Clean TeQ has developed an in-house processing technology, known as Clean- iX®, which looks set to provide the basis for the “highly efficient extraction and purification for a range of valuable strategic metals from slurries and solutions”.

As it stands Sunrise is forecast to deliver over US$16 billion in revenue and an average annual post-tax free cash flow of US$308 million over its first quarter century of operations.

These strong cash flows, Clean TeQ believes, will result in a post-tax net present value of US$1.21 billion ($1.72 billion) as well as a post-tax internal rate of return of 15.44%.

The PEP, the company said, confirmed Sunrise’s status as one of the world’s lowest cost, development-ready sources of critical battery raw materials.

Aside from being a major supplier of nickel and cobalt to the lithium-ion battery market, the project would also provide scandium to the aerospace, consumer electronics and automotive sectors.

In terms of the first part of this strategy, the Sunrise refinery is designed to produce enough nickel and cobalt to respectively support the production of about 1,000,000 and 2 million EVs pa.

To cater for the scandium – initially recovered as a nickel and cobalt by-product in the form of hydrogen concentrate, after which it will be stored on site until required for conversion to oxide – Clean Teq plans to install a 20t refining capacity for the niche mineral during the third year of operation. This may eventually be increased to 80t per year for a (current) cost of $25 million.

According to Clean TeQ, the global supply of scandium oxide is around 10-15t pa, meaning it is expecting to become one of the market’s dominant players. The company has used a long-term scandium oxide price assumption of US$1,500 per kilogram in its PEP.

“As the scandium market grows, future investment in a dedicated resin-in-pulp scandium extraction circuit and further refining capacity offers the potential to increase by-product scandium production to up to approximately 150t pa,” the company said.

“The PEP conservatively ramps up scandium oxide sales from 2 to 20t per year over the first decade of the mine life. Clean TeQ has existing offtake heads of agreement with companies including Panasonic Corporation Global Procurement Company and Relativity Space Inc, and programs are underway with a range of additional parties to develop new light-weight aluminium scandium alloys for the aerospace, additive layer manufacturing, consumer electronics and automotive sectors.”

During early September the company also announced it had discovered an area of high-grade platinum mineralisation within Sunrise forming what it called the “newly-classified Phoenix Platinum Zone”.

Significant downhole intersections from earlier drilling campaigns included:

12m at 8.0 g/t platinum, 0.55% nickel, 0.08% cobalt and 23 ppm scandium for 96.3 g/metres platinum (from 8m);

13m at 7.1 g/t platinum for 92.2 g/m platinum (9m);

6m at 15.1 g/t platinum, 0.95% nickel, 0.16% cobalt and 170 ppm scandium for 90.3 g/m platinum (32m);

4m at 18.1 g/t platinum, 0.05% nickel, 0.01% cobalt and 27 ppm scandium for 72.4 g/m platinum (from surface), and;

14m (from 20m) at 4.4 g/t platinum, 0.73% nickel, 0.02% cobalt and 75 ppm scandium for 61.7 g/m platinum (20m).

These holes were drilled with a mix of reverse circulation, air core and calweld rigs and – with few exceptions – were not assayed for other platinum group metals.

Sunrise already hosts a significant platinum resource of 103.1 Mt at 0.33 g/t for 1.076 million ounces of the precious metal, using a 0.15 g/t platinum cut-off grade. Of this total resource, approximately 90% is in the measured and indicated categories.

According to Clean TeQ, which Friedland co-chairs with Jiang Zhaobai., this makes the ore body “one of the largest platinum resources in Australia”.

Made famous in the mining world after sizing up remote ore bodies that became the basis of some high profile deals involving Inco (the polymetallic Voisey’s Bay in Newfoundland back in the 1990s) and the publicly-listed Rio Tinto (the Oyu Tolgoi copper-gold project in Mongolia the following decade), the US-born Friedland has now had an interest in Australia’s minerals scene for two decades.

During the early 2000s his company, Ivanhoe Mines, owned the Savage River magnetite iron ore operation in north-west Tasmania before selling it off and delisting from the Aussie bourse in 2005.

Then, in 2008, the resources house relisted on the ASX to push its Cloncurry copper projects in Queensland – a corporate quest that led it to the 2008 discovery of Merlin, which at the time was touted as the world’s highest grade molybdenum-rhenium deposit.

Given this, investors will now be asking one key question: Can Friedland help overcome the many problems faced by Western Australian nickel laterite producers during the early 2000s (not to mention BHP towards the end of that decade) and unequivocally prove that Australian lateritic ores can be processed economically?



Venture Minerals Commences Riley Wet Screening Plant Construction

THE DRILL SERGEANT: Venture Minerals (ASX: VMS) is to advance the company’s Riley iron ore mine in Tasmania with the company’s Board giving the nod to proceed with construction of a Wet Screening Plant and associated site works.

The Wet Screening Plant construction is happening in conjunction with Venture evaluating the performance of the recently completed initial stage of mining and dry screening operations at the Riley mine.

Venture’s decision to commence Stage One of West Screening Plant construction ensures that progress towards wet Screening continues while finance is finalised for subsequent stages.

The company is currently working through several advanced financing proposals for completion of the Wet Screening Plant which will enable nameplate production at Riley.

“Venture’s Board has committed to stage one of the Wet Screening Plant construction as part of its continued ramp up towards full scale production,” Venture Minerals managing director Andrew Radonjic said in the company’s announcement to the Australian Securities Exchange.

“The iron ore price remains strong, and the company remains focused on determining the best mining and Screening method at the Riley mine to reduce costs and environmental impact so that we can generate jobs, contracting opportunities and returns to our shareholders.”








Middle Island Resources Encounters New Gold at Shillington Deposit

THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) has continued its drilling success with further results from an ongoing Phase 2 reverse circulation (RC) drilling campaign underway at the company’s 100 per cent-owned Sandstone gold project in the central goldfields of Western Australia.

Middle Islands Resources latest Phase 2 reverse circulation (RC) intercepts have come from the Shillington deposit, and include:

6 metres at 10.5 grams per tonne gold; and
8m at 9.12g/t gold

The recent drilling involved a program comprising 20 new holes, designed infill and upgrade two ‘panels’ of Inferred Mineral Resources within the optimum pit shell allowing them to be considered as Ore Reserves, and also confirm a shallow mineralised extension at the northern end of the deposit.

The Shillington deposit is situated 2.5 kilometres north of the company’s 100 per cent-owned 600,000 tonnes per annum gold processing plant.

The latest results also include a further 24 holes at the southern extension of the Twin Shafts deposit, located only 500m southwest of the mill.

This drilling also returned encouraging intercepts of:

4m at 8.12g/t gold;
4m at 3.12g/t gold; and
10m at 2.27g/t gold

Middle Island indicated the Twin Shafts results will be applied in resource estimation and pit optimisation studies to justify mining of the southern extension.

The company has a Phase 3 exploration drilling campaign, focussed on the McIntyre, Ridge and Shillington Gap areas at Sandstone, planned to commence late in October 2020.