THE BOURSE WHISPERER: Rox Resources (ASX:RXL) has entered into a Farm-in Agreement with Arafura Resources (ASX:ARU) to explore the Bonya copper project.

The deal allows Rox to earn a 70 per cent interest in the, what is considers to be, large and highly prospective copper project.

Visible outcropping copper mineralisation at the old Bonya Mine prospect returned portable XRF analyses of up to 34.6 per cent copper and 27 grams per tonne silver.

Although the company pointed out portable XRF analyses may not be representative of the whole sample, nor should they be taken as a substitute for laboratory analyses, it has used the information to identify walk up drill targets at the prospect.

 “This is a great exploration opportunity for us,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“The style of mineralisation is similar to the nearby Jervois deposits. [JORC Mineral Resource 11.9 million tonnes at 1.3 per cent copper, 25g/t silver Kentor Gold ASX:KGL]

“The surface expressions suggest the potential for sulphide mineralisation below the old workings which is anticipated to also contain significant gold and silver.”

Under the terms of the agreement, Rox is required to spend $500,000 within the first two years to earn a 51 per cent interest in the copper, lead, zinc, silver, gold, bismuth and PGE mineral rights.

This includes a minimum of $150,000 in the first year before Rox can withdraw.

Rox can elect to earn a further 19 per cent (for 70 per cent in total) by spending a further $1 million over a further two years.

Once Rox has earned either a 51 per cent or 70 per cent interest it can form a joint venture with Arafura to further explore and develop the area.

Tenement and geology plan. Source: Company announcement

“Our data compilation work shows that the tenements are under explored, with most of the work previously focussed on the adjacent Jervois copper deposits,” Mulholland said.

“We have a walk up drill target at Bonya, and on top of that there is a large 279 square kilometre tenement holding to explore with similar rocks to those at Jervois.

“Several other copper prospects have been identified from our research, so we see the whole area as highly prospective.”

The company said assessment of historic mining activities at the old Bonya copper mine indicates potential for depth extensions to the outcropping mineralisation, which has never been previously drill tested.

Rox plans to commence exploration with a rock chipping and soil sampling program followed by geophysics and drilling.

“This project adds to Rox’s suite of exploration projects including the Myrtle/Reward zinc-lead project (Northern Territory), Mt Fisher gold-nickel project (Western Australia) and the Marqua phosphate project (Northern Territory),” Mulholland said.

“The Bonya copper project complements the company’s strategy of growth through exploration and cements Rox as a diversified multi-commodity explorer.”

THE BOURSE WHISPERER: Potash West (ASX:PWN) has completed the first resource estimate at the company’s Dinner Hill prospect, which is part of a much more extensive tenement holding of some 2,900 square kilometres in the Dandaragan Trough commencing just 50km north of Perth in Western Australia.

Potash West said the new JORC resource estimate has been defined on an estimated 20 per cent of the Dinner Hill prospect, which is one of several prospective regions the company has identified within the Dandaragan Trough.

Total estimated resources consist of:

–    244 million tonnes grading 3 per cent potassium oxide and 1.6 per cent phosphate.

 “This is a significant milestone in Potash Wests’ progress towards unlocking the value in the Dandaragan Trough Greensands,” Potash West managing director Patrick McManus said in the company’s announcement to the Australian Securities Exchange.

“The JORC resource is open to the north, east and south and constrained only by the amount of completed drilling.

“Our geological modelling and results lead us to believe that the Molecap becomes shallower and thickens to the south, which will be the target of follow-up drilling.

“The quoted resource is within a small section of the Dinner Hill area, which, in turn, is one of several prospective areas within the whole Dandaragan Trough, as announced in our ASX release of 3 April 2012.

“We are very confident that further drilling will increase this resource, and identify further resources within the Dandaragan Trough.”

This estimate comes less than 18 months after Potash West listed on the ASX and commenced programs of mapping, target generation and widely spaced reconnaissance drilling to identify areas that it considers to have potential to host higher grade mineralisation.

Potash West geological model of the Dinner Hill prospect showing
areas where the Molecap Greensand is predicted to lie less than 30m
below surface. Source: Company announcement

Through ground mapping, drilling and interpretation of detailed elevation data Potash West has identified an area of some 60sqkm at Dinner Hill where it expects additional resources will be identified within 30m of the surface.

The company has plans in place for up to 10,000m of aircore drilling to be undertaken to significantly increase the resource inventory at Dinner Hill.

“Operating cost and revenue estimates, to be generated as part of the scoping study, will allow us to consider the economics of treating the Poison Hill material, which contains lower potassium values,” McManus said.

“We look forward to completing the scoping study this year and moving quickly into the next stages of project evaluation.”

THE BOURSE WHISPERER: Mining Group (ASX:MNE) has claimed the discovery of a new mineralised zone at Tagpura North, at the company’s 80 per cent-owned Comval copper and gold project in the Philippines.

The company said the new discovery contains mineralised skarn and diorite outcrops mineralised with copper and gold, including a native copper occurrence.

Mining Group has defined a 500 metres by 300 metres target zone, which it said has a larger footprint than the historic Tagpura east orebody.

Tagpura North rock chip sample highlights showing anomalous target
zone in comparison to the Tagpura orebodies. Source: Company
announcement

The new area has returned some of the highest copper and gold grades seen within the project area from rock chip samples to date.

Mining Group also announced a maiden JORC-compliant resource of 32,675,000 tonnes at 0.42 per cent copper and 0.13 grams per tonne.

This was estimated using a 0.30 per cent copper cut-off and contains 136,100 tonnes of copper and 138,900 ounces of gold.

A higher grade resource of 8,987,00 tonnes at 0.63 per cent copper and 0.20g/t gold at a 0.4 per cent copper cut-off is all at surface and is expected to have a low stripping ratio.

The company said some of the lower grade halo (less than 0.4 per cent copper) would be mined as part of any open pit mine.

Mining Group said it considered the newly-discovered Tagpura North skarn, which is located justonly 750m from the Tagpura open pit mine, has the potential to further build on this Resource base.

“The surface sampling at Tagpura North returned some of the highest copper and gold assays ever achieved within the project area,” Mining Group managing director Zeff Reeves said in the comopany’s announcement to the Australian Securities Exchange.

“We have delineated a large target zone that we aim to start drilling within the next six weeks.

“We are excited by this discovery as it continues to prove our exploration model and the new discovery area is approximately 400 metres vertically above the historic Tagpura pit meaning there is potential for the entire vertical distance to be preserved.

“We are currently conducting detailed ground magnetics over the target in order to delineate the best place to drill and we are also waiting on further assays to be delivered.”

THE BOURSE WHISPERER: Talga Gold (ASX:TLG) has updated the Resource estimate for the company’s 100 per cent-owned Masugnsbyn iron project in northern Sweden.

The new JORC-compliant Mineral Resource estimate for the Masugnsbyn iron project stands at 87.2 million tonnes at 29.9 per cent iron as magnetite (Femag) using a cut-off grade of 20 per cent Femag.

This replaces the previous estimate of 44.1 million tonnes at 30.9 per cent iron the company released in February.

Masugnsbyn is one of a number of iron projects Talga gained from its recent acquisition of TCL Sweden from Teck Resources in June.

Talga’s iron projects located in northern Sweden. Source: Company announcement

“We continue to realise value via our purchase of TCL Sweden Ltd from Teck Resources in June this year,” Talga Gold managing director Mark Thompson said in the company’s announcement toteh Australian Securites Exchange.

“As we interrogate the acquired database we find further encouragement for confidence in the projects to host several mining opportunities.”

Talga gold has reviewed the historic data, which it said has revealed strong intercepts of iron mineralisation from previous drilling carried out at the Vittangi project.

At the Vathanvaara prospect historic drill intercepts include:

–    235 metres at 35.9 per cent Femag; and

–    124m at 43.4 per cent Femag.

The company said these results highlight potential for future resource development.

The Vittangi project is within 20 kilometres of the railhead and LKAB mines near Svappavaara and could potentially share some infrastructure with the adjacent Nunasvaara graphite deposit.

“The iron ore deposits are near our graphite deposits, and there are synergies in assessing both from a common operational base,” Thompson said.

“With only a modest amount of drilling we can test the potential of the iron exploration targets to convert to resources over the next 12 months, while reviewing options for commercialisation.”

THE BOURSE WHISPERER: Blackthorn Resources (ASX:BTR) has received some good news regarding exploration tenure covering the company’s 100 per cent-owned Mumbwa project in Zambia.

The Mumbwa project hosts the 187 million tonnes at 1.14 per cent copper Kitumba deposit.

The Mumbwa licence, which is currently held on trust for the company’s wholly-owned subsidiary Blackthorn Resources (Zambia) by BHP Billiton World Wide Exploration, has been renewed by the Zambia Ministry of Mines, Energy and Water Development.

Blackthorn Resources (Zambia) has also had a new and additional licence, Kabwera covering approximately 147sqkm granted.

Kabwera is situated to the east of the Mumbwa licence.

The licence is valid for two years, this being the first of three 2-year periods available.

The Mumbwa project now includes four exploration licences covering approximately 790sqkm.

Mumbwa project licences. Source: Company announcement

“We are very pleased that the Mumbwa licence containing the Kitumba deposit has been renewed as expected,” Blackthorn Resources managing director Scott Lowe said in the company’s announcement to the Australian Securities Exchange.

“Work is now underway to transfer the renewed licence from BHP Billiton to Blackthorn Resources (Zambia) Limited and to do the work necessary to apply for a mining licence in due course.

“Blackthorn Resources now has a substantial exploration licence “footprint” in Zambia.

“We are enormously excited about the economic potential of Kitumba and the potential for other discoveries elsewhere on the various tenements.”

The Mumbwa licence was formally part of a joint venture with BHP Billiton who exited the project in mid-2011.

With the renewal now in place, the process of transferring the licence to Blackthorn Resources (Zambia) can commence in accordance with BHP Billiton’s contractual obligations.

The renewal was first applied for on 12 July 2011 and included a 250 square kilometre reduction from the previous Mumbwa licence.

Blackthorn said the delay in granting was due to a temporary moratorium on the renewal and issuing of licences to allow the Ministry of Mines, Energy and Water Development to carry out a comprehensive audit of mining and exploration licences.

No issues regarding the Mumbwa project licences were identified and the moratorium has since been lifted.

The Mumbwa licence was first issued in November 2007 and is now valid for the third and final 2-year period.