Azure Minerals Drilling at Andover Nickel-Copper Project

THE DRILL SERGEANT: Azure Minerals (ASX: AZS) has commenced diamond drilling on the Andover nickel-copper project (60% Azure / 40% Creasy Group), located in the West Pilbara region of Western Australia.

Azure Minerals began a multi-phase exploration campaign at Andover last month, comprising geophysical surveys and drilling that involves a FLTEM surveying over 10 separate target zones; an initial 12-hole, diamond core drilling program on defined targets; and downhole EM (DHEM) surveying of drill holes.

The diamond drilling has kicked off, with the first six holes focused on testing along strike and downdip extensions of semi-massive and disseminated sulphide-hosted high-grade nickel mineralisation that was intersected pre-Azure signing on at Target Locations 1 and 2.

Additional drill holes are planned to test several other, as yet undrilled, geophysical anomalies.

All drill holes will be surveyed by DHEM to identify off-hole conductors, which will be followed up by further drilling.

“We’re very pleased to get our first drilling program at Andover underway so quickly, in what is a target-rich environment for nickel and copper sulphide mineralisation,” Azure Minerals managing director Tony Rovira said in the company’s announcement to the Australian Securities Exchange.

“Azure has hit the ground running with the initial six-week program of ground EM surveying now completed and our first drill program underway.

“The ground EM surveying has identified numerous electromagnetic conductors indicative of bedrock-hosted sulphide mineralisation and drilling of these new anomalies will be undertaken as a matter of high priority.

“Drilling will continue through to the end of the year, with first assay results expected later this month.”



Bellevue Gold Hits More High-Grade Gold on Road to Resource Upgrade

THE DRILL SERGEANT: Bellevue Gold (ASX: BGL) jumped out of the blocks this morning to announce that extensional and infill exploration drilling at the company’s Bellevue gold project in Western Australia has intersected high-grade mineralisation both outside and within the existing know Resource boundary.

Bellevue Gold’s current drilling approach includes infill drilling to upgrade the Indicated Resource later in the December quarter and the resumption of exploration step out drilling at the project.

Step out drilling at the Deacon Lode has resulted in three new extensions to the known mineralisation.

The recent drilling, up to 200m along strike on the Deacon lode, encountered mineralisation in previously untested locations in the central and northern areas.

Results include:

9.3 metres at 5.8 grams per tonne gold from 757.3m;

1.4m at 63.2g/t gold from 434.9m; and

3.5m at 10.6g/t gold from 387.5m.

Infill drilling undertaken at Deacon North also returned multiple intersections, including:

5.1m at 7.8g/t gold from 626.1m;

1.6m at 89.4g/t gold from 629.5m;

3.7m at 8g/t gold from 636.3m; and

2.5m at 11.5g/t gold from 660m.

Drilling on the Bellevue Lode focussed on targeting high-grade extensions to mineralisation returning intersections from areas away from existing stoping and near underground development.

Results include:

4.6m at 34.8g/t gold from 241.8m;

6.1m at 14.5g/t gold from 457.5m;

3.7m at 26.2g/t gold from 372.3m;

0.7m at 163.2g/t gold from 245.9m; and

3m at 14.5g/t gold from 319.2m.

“We have hit more high-grade mineralisation in previously-untested areas,” Bellevue Gold managing director Steve Parsons said in the company’s announcement to the Australian Securities Exchange.

“These results extend the known limits of the mineralisation.

“At the same time, our infill drilling continues to return strong results which should help drive an increase in the Indicated Resource.

“This all points to a larger overall mineralised envelope with more gold in the high-confidence Indicated category, which in turn gives us even greater scale while continuing to de-risk the project.”

Bellevue Gold indicated its drilling is on track to deliver a further increase in the Indicated Resource in the December quarter, with Stage Two infill drilling to upgrade more of the Resource, which currently stands at 2.3 million ounces at 10g/t gold (860,000oz at 11.6g/t Indicated and 1.4Moz at 9.2g/t Inferred).






RareX Infill Drilling Hits High-Grades at Cummins Range

THE DRILL SERGEANT: RareX Limited (ASX: REE) reported on the first batch of assays it has received from a recently completed in-fill and extensional drilling program at the company’s 100 per cent-owned Cummins Range rare earths project in the Kimberley region of Western Australia.

RareX reported that assays from the first three Reverse Circulation (RC) holes have returned results above the current Inferred Resource for Cummins Range of 13 million tonnes at 1.13 per cent total rare earth oxide (TREO), including impressive widths and grades in both CRX0002 and CRX0003.

41m at 4 per cent TREO from 29m down-hole, including 29m at 5.2 per cent TREO from 29m, including 3m at 13.9 per cent TREO from 30m;
12m at 1.7 per cent TREO from 3m down-hole, including 3m at 4.8 per cent TREO; and
10m at 1.3 per cent TREO from 79m down-hole including 6m at 1.7 per cent TREO

36m at 4.6 per cent TREO from surface, including 3m at 25.1 per cent TREO from 15m down-hole;
11m at 1.8 per cent TREO from 50m down-hole, including 2m at 6.8 per cent TREO; and
5m at 1.3 per cent TREO from 86m down-hole including 1m at 4.1 per cent TREO

The in-fill drilling program was designed both to increase the confidence of the Resource from Inferred to Indicated category and to better define a higher-grade portion of the Resource.

“We could not have wished for a better start to our exploration campaign at Cummins Range,” RareX executive director Jeremy Robinson said in the company’s announcement to the Australian Securities Exchange.

“The objective of the recent program was to upgrade confidence levels in the current Resource, define a possible high-grade zone within the Resource and potentially increase the scale of the Resource.

“These first three holes have already gone a long way towards achieving these first two objectives, with the width and grade of the intercepts significantly exceeding our expectations.

“We are delighted with these initial results and look forward to updating the market on the balance of the assays as they come to hand.

“This drill program represents a major step forward in terms of adding value to the Cummins Range project and putting it on a clear trajectory towards development.”








Peel Mining Fights Off Wirlong NSR Bid

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) exercised its pre-emptive muscle to acquire Weddarla Pty Ltd’s 1.5 per cent Net Smelter Return (NSR) royalty over tenement EL8307, within the company’s Southern Cobar Basin tenements in New South Wales.

Peel Mining fought off a third party’s unconditional cash offer of $1.2 million made to Weddarla by a Toronto Stock Exchange listed royalty streaming business.

Respecting Peel’s first right of refusal under the Royalty Deed, Weddarla offered to sell the royalty to Peel for $1.2 million (excluding GST) in cash.

Peel elected to exercise its right to acquire the royalty interest, after which it will have 100 per cent unencumbered ownership of all its Southern Cobar Basin tenements.

“The unconditional cash offer from a TSX-listed royalty streaming business for the 1.5 per cent NSR royalty covering EL8307 continues to underscore the widespread interest that exists for Cobar Basin assets, and the strong economic potential therein,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“Peel’s pre-emptive right has ensured that the company can completely consolidate its Southern Cobar Basin tenements removing all future ownership encumbrances.”

EL8307 contains the Wirlong copper-silver deposit, as well as the Sandy Creek and Red Shaft prospects.

Peel discovered Wirlong in 2016, which is a classic Cobar-style VMS copper deposit that has returned strong copper mineralised intercepts commencing from around 60 metres below surface to at least 600m below surface.

With the Mallee Bull deposit, Wirlong increases the company’s exposure to copper.

Peel intends to undertake drilling at Wirlong over the coming months with the objective of establishing a copper-rich Maiden mineral resource estimate.

“As foreshadowed, it is the company’s intention, in due course, to undertake a resource drillout at Wirlong in order to establish a maiden mineral resource estimate,” Tyson said.

“It is our strong belief that Wirlong, and the broader EL8307 landholding, has excellent economic potential, and the buyout of the royalty interest underlines the Company’s view on the value proposition.”







Moho Resources Expands Silver Swan Tenure

THE BOURSE WHISPERER: Moho Resources (ASX: MOH) has increased its landholding position at the company’s Silver Swan North project in Western Australia.

Moho has taken an Option to Purchase 100 per cent of granted mining lease and six prospecting licences covering 6.6 square kilometres.

The granted mining lease under question – M27/488 – is contiguous with Moho’s 100 per cent-owned M27/263, and represents a substantial increase in ground holding close to the East Sampson Dam gold prospect.

Moho recently completed a surface soil geochemical sampling program over its granted tenements at Silver Swan North that will be extended to cover any of the recent applications should they be granted.

The company will pay particular attention to testing whether anomalous gold within the East Sampson Dam – Tyrells corridor extends into a 2km zone from M27/263 through M27/488 and into P27/2200.

“Moho’s recent ground acquisitions represent a significant addition of highly prospective tenements to the Silver Swan North project, most of which have seen no modern gold exploration,” Moho Resources managing director Shane Sadlier said in the company’s announcement to the Australian Securities Exchange.

“It is worth noting that all of the Option Tenements have a history of significant alluvial gold production.”








Genesis Minerals Encounters Continuous High-Grade Gold

THE DRILL SERGEANT: Genesis Minerals (ASX: GMD) reported results from an ongoing Reverse Circulation (RC) drilling program underway at the Clark deposit, part of the company’s recently expanded 100 per cent-owned Ulysses gold project in Western Australia.

Reverse Circulation drilling by Genesis has confirmed the presence of extensive gold mineralisation at surface at the Clark deposit with results including:

26 metres at 2.41 grams per tonne gold from 24m;

23m at 0.72g/t gold from 37m, including 6m at 1.32g/t gold from 50m;

30m at 0.55g/t gold from 0m, including 5m at 1.06g/t gold from 0m;

5m at 2.55g/t gold from 0m;

8m at 3.47g/t gold from 21m; and

11m at 2.94g/t gold from 112m, including 2m at 14g/t gold.

The high-grade intercept in 20USRC524 is located approximately 50m down-dip of the current Resource boundary at Clark.

Genesis has now completed approximately 95 holes of Resource confirmation drilling at the Admiral, Clark and Butterfly deposits, which have a combined Mineral Resource of 4.6 million tonnes at 1.7g/t gold for 246,000 ounces.

“Our maiden drilling program across the Kookynie tenements is continuing to hit the mark, with a series of impressive shallow gold intercepts in the initial drilling at the 31,000 ounces Clark deposit supporting and validating the historical drilling data which was used to underpin the current Mineral Resource Estimate,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“As with the Admiral results that we reported earlier this month, the first results from the Clark drilling have clearly established the presence of a consistent zone of shallow and continuous gold mineralisation within the current Mineral Resource envelope.

“It is not often that you see such broad widths of strong gold mineralisation so close to surface in WA, and this gives us additional confidence in the value proposition of the recently acquired Kookynie tenements – particularly given how close they sit to our existing Ulysses Resource base.

“The high-grade intercept returned in hole 20USRC524 strongly supports our interpretation that mineralisation will extend at depth in the Admiral-Clark-Butterfly area.

“This intercept is about 50 metres down-dip from the limits of the June 2020 Mineral Resource and still only about 100 metres below surface, pointing to the substantial exploration upside at these deposits as we begin to step away from the known Mineral Resources.

“Drilling is continuing at Ulysses with two RC rigs, a diamond rig and an air-core rig, while Feasibility work is progressing on schedule.”








Alto Metals Continues High-Grade Gold Hits at Sandstone Project

THE DRILL SERGEANT: Alto Metals (ASX: AME) sharpened its credentials as a potential takeover target by releasing assay results from its latest phase of RC drilling targeting high-grade gold mineralisation beneath the Lord Nelson open pit and at the new Orion gold lode discovery, located 200m south of Lord Nelson, within the company’s Sandstone gold project in Western Australia.

The Orion Lode is the first new gold lode discovered, south of the Lord Nelson pit within the Lords’ corridor; which extends over 3 kilometres, with the Lord Nelson deposit at the north and the Lord Henry deposit to the south.

The current drilling program infilled the shallow portion of the Orion Lode confirming it remains widely open along strike, down dip and down plunge.

RC drill results show the presence of high-grade gold mineralisation within a much broader mineralisation envelope.

Drilling intercepts include:

29 metres at 3.5g/t gold from 49m, incl.7m at 7.9g/t gold from 53m;

13m at 3.3g/t gold from 83m, incl.2m at 8.8g/t gold from 85m;

16m at 3.1g/t gold from 105m, incl.2m at 7.7g/t gold from 118m; and

32m at 1.4g/t gold from 51m.

Step out drilling (80 metres) returned 7m at 2.7g/t gold from 155m, including 2m at 6.3g/t gold from 159m (SRC197), defining the Orion Lode over 300m.

Further step-out drilling (up to 80m) was carried out beneath the Orion Lode and Lord Nelson pit extending the high-grade mineralisation down dip and down plunge, including:

32m at 2.5g/t gold from 223m, incl. 4m at 12.3g/t gold from 245m;

7m at 4.6g/t gold from 209m, incl. 2m at 11.6g/t gold from 210m; and

8m at 2.5g/t gold from 190m, incl. 2m at 7.8g/t gold from 194m.

Several high-grade intersections remain outside the current resource, awaiting close spaced drilling.

The drilling also confirmed Lord Nelson is a multiple lode high-grade gold system.

“We continue to be highly encouraged by the results from the Orion lode, which demonstrate excellent continuity of shallow, high-grade gold mineralisation,” Alto Metals managing director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“We have only just scratched the surface of this new lode and our focus is on the down dip and strike potential of Orion, which has all the hallmarks of being part of a much bigger system.

“The Orion Lode is considered to be a repeat lode of the Lord Nelson deposit and our geological modelling highlights the potential additional for Lord Nelson style repeat lodes along the Lords’ Corridor.

“It is a really exciting time for Alto with our next drilling program about to commence to follow up on these latest results.

“The 30,000 metres of drilling we have planned is the biggest drill program Alto has undertaken in a number of years and we are keenly anticipating ongoing results.”








Dreadnought Resources Encounters Further Metzke’s Find High Grades

THE DRILL SERGEANT: Dreadnought Resources (ASX: DRE) announced the results from eight of 17 RC holes drilled at Metzke’s Find, part of the company’s Illaara gold-VMS-iron ore project in Western Australia.

Dreadnought Resources reported the eight RC holes had all intersected the mineralised lode at Metzke’s Find and included the best intercept the company has achieved to date with results including:

4 metres at 19.9 grams per tonne gold from 45m, including 2m at 39.2g/t gold from 45m;

4m at 10.5g/t gold from 108m, including 3m at 13.8g/t gold from 108m; and

4m at 10.5g/t gold from 19m, including 2m at 20.7g/t gold from 19m.

The second batch of nine holes has been delivered to the lab with the company expecting results mid-October 2020.

The drilling was undertaken to follow up previously encountered high-grade gold intercepts at Metzke’s Find.

“Metzke’s Find continues to deliver high-grade intercepts with MZRC019 returning an approximate 80 gram metre intercept (Au grade x thickness), the best to date,” Dreadnought Resources managing director Dean Tuck said in the company’s announcement to the Australian Securities Exchange.

“We have now confirmed high-grade intercepts from around 20 metres to approximately 120 metres in depth and along 280 metres of strike.

“There are a further nine holes at the lab which will add further intercepts at depth and to the south.

“This is an exciting step forward for Metzke’s Find and Illaara in general.

“We are looking forward to the results from these nine holes as well as our first holes at Longmore’s Find and Black Oak.”








Inventory Expanded Despite Fund Raising Restrictions

THE CONFERENCE CALLER: Being the recent target of three formal takeover attempts has not stopped Alto Metals (ASX: AME) from adding gold ounces to its Lord Nelson deposit in Western Australia’s East Murchison. By Mark Fraser

Despite restricted access to regular fund-raising mechanisms during these corporate shenanigans, the WA-based junior has still managed to increase Lord Nelson’s inventory by 60 per cent (or 41,000 gold oz) since the start of last year.

As a result, the company has now established an inferred mineral resource for the deposit of 1.8 million tonnes grading 1.9 grams per tonne gold for 109,000 ounces.

Lord Nelson is just one of a number of targets which makes up the company’s wholly-owned – and obviously sought after – Sandstone gold project.

The others are Lord Henry, the Indomitable and Vanguard camps as well as Havilah and Ladybird.

Covering around 800 square kilometres of prospective greenstone belt, the Sandstone project sits some 600km north of the WA capital of Perth and currently boasts a resource of 6.2 million tonnes at 1.7g/t for 331,000 ounces of yellow metal.

During its previous life Lord Nelson – which was discovered by former owner Troy Resources (ASX: TRY) – yielded around 200,000 gold ounces at 4.6g/t from an open pit that was only dug down to 90m depth.

The mining house, however, lost interest in the deposit after it hit transitional fresh rock – mainly because it was looking for oxide material to feed its processing mill, which is now owned by former Alto suitor and current neighbour Middle Island Resources (ADX: MDI).

During his appearance at the recent RIU Resurgence Conference, Alto Metals managing director Matthew Bowles said the company’s immediate exploration focus was on the extensions of known mineralisation at both Lord Nelson and Lord Henry (located 3km to the south) and the corridor (a granodiorite intrusion) in between.

So far, drilling down to 200m depth at the former has revealed an “underground grade” of 16m at 5.5g/t.

Furthermore, Alto has discovered a new lode – Orion – along the Lord’s corridor just to Lord Nelson’s south.

Here, the drill rig has returned a number of promising gold intercepts, including: 10m at 4.1g/t (from 34m depth), 12m at 3.4g/t (66m) and 23m at 3.8g/t (106m).

Bowles said Alto was now confident it was on the verge of finding a “much bigger system” at Lord’s, which boasts historical production of 250,000 ounces from material mined at just 50-80m depth.

This includes 48,000 ounces at Lord Henry, where the current inferred mineral resource sits at 1.82 million tonnes at 1.9g/t gold for 109,000 contained ounces, while drilling has yielded substantial yellow metal intercepts like 2m at 51.3g/t from 70m, 6m at 10.2g/t (50m) and 2m at 20.3g/t (64m).

“What we’ve done is taken a lot of the fantastic work that Troy’s exploration geologists did, we’ve analysed that (and) we’ve overlaid it with a lot of the geology, a lot of the interp(retation) that we’ve had,” Bowles explained.

“We’ve identified a number of cross cutting structures, and coinciding with those cross cutting structures is … a lot of the original shallow drilling that Troy did when they were going up that corridor.

“And bear in mind they were looking for oxide ounces at surface. So there were a lot of those things that weren’t drilled very deeply.

“So we’re going back in – we are not restricted by the mill, and we are looking at finding a big discovery.”




Not Quite a Geological Comparison, But Point Made

THE CONFERENCE CALLER: Although it was only the briefest of references in passing, Stavely Minerals’ (ASX: SVY) boss Chris Cairns made an interesting observation when – at the recent RIU Resurgence Conference in Western Australia – he suggested the mineralisation of his company’s namesake Victorian exploration project may be similar to that of one of Australia’s great historic copper operations. By Mark Fraser

No doubt investors who attended the event, which was held in the explorer’s home town of Perth in WA, took note when Cairns hinted the polymetallic Stavely play in west Victoria might resemble Mt Lyell in Tasmania.

Located 175 kilometres north west of Hobart in the prospective Mt Read volcanics, the Mt Lyell camp has hosted – at least in the words of some information provided by the Tasmanian geological survey – “some of the oldest significant mines in Australia”.

Discovered in 1883, the project area had, by 1999, been responsible for a large portion of Tasmania’s gold production as well as most of its copper – yielding 1.4 million tonnes of copper, 43 tonnes of gold and 733 tonnes of silver from 119 million tonnes of ore.

According to some news sources, when Mt Lyell was put on care and maintenance during 2014 by the publicly-listed Vedanta Resources (LSE: VED), its historic output of red metal had risen to 1.8 million tonnes.

Cairns told RIU delegates that, just after listing on the ASX via a $6 million initial public offering during 2014, Stavely raised a few eyebrows when it decided to concentrate its field efforts in western Victoria.

“At the time people said you need your head read if you go into Victoria – it’s very low in the Fraser Institute’s rankings of exploration destinations,” he noted.

“(And) it’s funny how, six years later, it is one of the hottest destinations in the world for exploration, with Fosterville and Kirkland Lake (ASX: KLA) having so much success there.

“And we’ve made a discovery in a completely different terrain. When we moved in there, there was no mining history whatsoever in western Victoria – certainly not for porphyries or copper.

“But we persisted for a number of years seeking a porphyry target and eventually discovered a magma Arizona-style of deposit, and hopefully the porphyry is sitting underneath.

“It’s almost unique in Australia in terms of the style of mineralisation – I don’t know of any other deposit (like it … but it’s been suggested that) maybe Mt Lyell may have some attributes of this style of mineralisation.”

Since then Stavely – with its 1461 square kilometres ground position – has established itself as a first mover within Victoria’s Stavely Arc, where the company is developing its wholly-owned Stavely and Ararat projects.

The majority of the junior’s exploration has focused on Thursday’s Gossan, where the initial target was a Tier-1, Cadia-style copper-gold porphyry system that included an extensive chalcocite-enriched blanket occurring 30-80m below surface.

When this was starting to resemble something of a “rabbit hole”, however, the junior began looking for lode-style mineralisation closer to surface – a move which led to the discovery of the shallow (0-200m), high grade copper-gold-silver Cayley Lode. So far Stavely has established an inferred mineral resource of 28 million tonnes at 0.4 per cent copper for 110,000 tonnes of contained red metal at Thursday’s Gossan.

Describing the Cayley Lode as a game changer, Cairns indicated it could well be the tip of a new copper province iceberg.

As it stands Stavely is now planning to complete a mineral resource drill-out of the shallow (0-200m) Cayley open pit mineralisation.

And, aside from also starting a scoping study on the first phase of the proposed above ground development, the company is also looking to re-deploy drill rigs to define the Cayley Lode at depth in order to lay the foundation for a phase two underground operation.

In addition, drill testing of further porphyry and regional targets is scheduled.

“We’ve defined it down to a kilometre and, if it’s continuous, we’re thinking about a two decade mine life at the phase two underground after the open pit,” Cairns added.

Stavely is now well positioned to complete this early due diligence, having a healthy $32 million cash in the bank.