Northern Minerals (ASX: NTU) Explorers 2020

THE CONFERENCE CALLER: The enormity of Australian heavy rare earths producer, Northern Minerals’ Browns Range project is difficult to encapsulate in such a short feature, however we will try.

The Browns Range project is centred on the Browns Range Dome, a geological feature in the northern Tanami region, straddling both Western Australia and the Northern Territory.

The landholding has proven highly prospective for heavy rare earth mineralisation with plenty of potential for further discoveries.

Northern Minerals has 100 per cent ownership and marketing rights for all but three of the Browns Range Dome tenements and is earning up to an 80 per cent interest in the remaining three that are in Joint Venture with Toro Energy.

The company has substantial deposits of heavy rare earths, particularly the high value element, dysprosium, which became the leading commodity in the development of the project.

Northern Minerals is positioned to become the world’s first major producer of dysprosium outside of China.

Accounting for 60 per cent of Browns Range revenue, dysprosium is the key value driver of the project and is at the core of Northern Minerals’ marketing strategy.

With a high-value, high-purity, dysprosium-rich product, the company is set to become a long term and reliable supplier of dysprosium and other critical heavy rare earths to world markets.

Dysprosium is an essential element in the production of neodymium permanent magnets as it makes them long lasting and able to retain efficiency at extremely high temperatures.

We are slaves to technology and REs enable that technology to be smaller, lighter and more efficient, being a key component in the manufacture of clean energy and high-end technology solutions.

The role REs play in the manufacturing of hybrid and electric vehicles and other high-tech applications has prompted countries to seek long term sustainable supplies to support domestic industries.

Recent work at Browns Range has involved a separation study by US-based K-Technologies (K-Tech).

The study is investigating the possibility of applying separation technology on intermediate mixed rare earths materials produced at Browns Range.

If it works, the technology will enable Northern Minerals to produce separated rare earth oxides that currently require separation in China—including dysprosium oxide and terbium oxide.

The company has partnered with (K-Tech) to assess the suitability of separating Browns Range intermediate mixed rare earth materials with the latter’s proprietary technology.

“It’s exciting to see positive results from the first stages of bench scale testwork being undertaken at K-Tech,” Northern Minerals managing director and CEO George Bauk said.

“If successful, we would have a clear pathway to advance downstream in the supply chain to supply separated products to a much wider customer base.

“We have moved quickly to advance the ore sorter project, identified as a potential game changer for the project.

“Higher grades going into the plant would result in higher production rates and lower operating costs, a double win in terms of improving the economics of the Browns Range project.”

The Browns Range is the first xenotime-hosted rare earth project to be developed anywhere in the world, which means the company needs to fully understand metallurgical processes involved before committing to a full-scale development.

To carry out the appropriate testing the Browns Range Pilot Plant Project has been developed to assess the economic and technical feasibility of a larger scale development.

A staggering 271 individual R&D projects have been planned for the three-year pilot plant stage to conduct experiments on most areas of the plant, including fine grinding, magnetic separation, flotation, leaching, purification and ion exchange, with a focus on improving the efficiency and operation of the sulphation bake kiln.

Although the company is targeting full-scale steady state production by in H1 2020, the variable nature of the R&D program means it is unlikely it will be in a position to forecast production rates during the program.

Northern Minerals was recently able to strike a new offtake agreement with thyssenkrupp Materials Trading Gmbh for 100 per cent of offtake from the Browns Range Pilot Plant Project.

Under the terms of the agreement, all heavy rare earth carbonate will be purchased by thyssenkrupp from the Pilot Plant project, while supplying future flexibility for Northern Minerals to supply heavy rare earths as separated products.

Importantly, the agreement also allows for the sale of the mixed heavy rare earth carbonate product as well as separated rare earth oxides, should Northern Minerals decide to move to product separation during the Pilot Plant project.

The offtake agreement includes all stockpiled product from current and future Pilot Plant project production.


Directors: Colin McCavana, George Bauk, Adrian Griffin, Yanchung Wang, Ming Lu, Bin Cai


Azure Minerals (ASX: AZS) Explorers 2020

THE CONFERENCE CALLER: Azure Minerals moved from explorer to miner in 2019 when it commenced mining operations at the company’s 100 per cent-owned Oposura zinc-lead-silver project, located in Sonora, Mexico.

Azure completed the first phase of a small-scale, multi-phase mining program at Oposura that delivered impressive results.

Open pit mining selectively extracted near-surface, high-grade, massive zinc and lead sulphide mineralisation, from which ore tonnages and grades far exceed the Mineral Resource estimate Azure had determined for this part of the deposit.

“To be getting more tonnes and much higher grades than we had expected gives us great confidence in the project as we advance Oposura toward large-scale mining and on-site processing,” Azura Minerals managing director Tony Rovira said.

Azure commenced mining at Oposura in August and within two months had mined and stockpiled 6,100 tonnes of high-grade ore.

Based upon close-spaced Reverse Circulation (RC) grade control drilling and systematic stockpile sampling, the company estimated average grades of the mined ore to be 13.4 per cent zinc and 10.7 per cent lead, surpassing the estimated average East Zone open pit mine grade from the 2018 Oposura Scoping Study of 5.1 per cent zinc and 2.6 per cent lead, laying a solid foundation for a future large-scale mining and processing operation.

An extended refurbishment program delayed the commencement of operations at the third-party San Javier processing plant; however, Azure was able to locate a second plant in the district that may be suitable for processing Oposura ore and trial processing of a small batch of ore at that plant was undertaken.

Steady state toll treatment of the Oposura ore was due to commence in December to produce separate zinc and lead-silver concentrates, which Azure expects to sell on the spot market to locally-based metals traders or smelters, several of which expressed strong interest in these products.

Azure has indicated it plans a second phase of open pit mining to be undertaken following a successful processing operation producing saleable concentrates.

This mining is expected to provide a stable western face for portal access for the planned underground mining operation.

The portal and subsequent drive will access the historical Tunnel D which will be side-stripped to provide mechanised access to the western high-grade zone.

Underground development will be undertaken in ore to offset establishment costs prior to selectively mining the high-grade ore zone by the room and pillar method.

Azure was also able to regain 100 per cent ownership of the Alacrán silver-gold project from Minera Teck S.A. de C.V., a subsidiary of Canadian mining company Teck Resources Limited, which became a substantial shareholder of Azure.

Azure’s previous exploration activity on Alacrán in 2015 and 2016 discovered the near-surface, high-grade Mesa de Plata silver deposit and the adjacent Loma Bonita gold-silver deposit.

These deposits boast resources totalling:

Mesa de Plata: 10.5 million tonnes at 82 grams per tonne silver for 27.4 million ounces of silver that includes an at-surface high-grade zone of 1,8 million tonnes at 275g/t silver for 15.5 million ounces of silver; and

Loma Bonita: 5.4 million tonnes at 0.9g/t gold and 28g/t silver for 150,000 ounces of gold and 4.8 million ounces of silver.

Azure commenced drilling at Alacrán before Christmas, reporting encouraging surface sampling results from a strongly gold-mineralised breccia located in a road cutting approximately 400m southeast of the Loma Bonita resource boundary.

Channel sampling of the exposed mineralised zone returned 35.5 metres grading 3.6g/t gold and this zone has been earmarked for drill-testing in the current program.

The company is also planning drilling to test the Cerro San Simon prospect where previous drilling returned several wide intersections of low to moderate grade gold mineralisation.

While all this was happening, Azure completed the acquisition of the Sara Alicia II mineral concession that adjoins the company’s 100 per cent-owned Sara Alicia property in the northern Mexican state of Sonora by overturning an historical cancellation of the Sara Alicia II mineral concession.

The acquisition, when combined with the original Sara Alicia concession, brings the total project area to 49 hectares, strengthening Azure’s position in a gold and cobalt-rich district.

“Sara Alicia II adjoins our current holding and, importantly, the combined area covers the full footprint of the body hosting the high-grade gold and cobalt mineralisation,” Rovira said.

“We have been working on acquiring this very strategic concession for over two years and exploration at Sara Alicia was suspended so as not to generate further interest in the area and to ensure the acquisition of Sara Alicia II was completed without interference or competition.”


Directors: Peter Ingram, Tony Rovira, Dr Wolf Martinick

Hot Chili (ASX: HCH) Explorers 2020

THE CONFERENCE CALLER: Hot Chili received its Christmas presents early in 2019 when it encountered, what the company described as, “one of the best global drill results of 2019”.

Hot Chili hit the intersection at the company’s Cortadera copper-gold porphyry discovery in Chile that returned:

972 metres at 0.5 per cent copper and 0.2 grams per tonne gold from surface.

The intersection included the widest zone of high-grade the company had recorded at Cortadera of:

412m at 0.7 per cent copper and 0.3g/t gold from 436m.

“Cortadera is continuing to outperform expectations the company had set following our announcement of a deal to acquire the privately-held discovery in February this year,” Hot Chili managing director Christian Easterday said.

“We have recorded many stand-out drill results this year, but this 972 metres drill result from surface firmly announces Cortadera’s arrival on the global copper stage.

“In little over nine months we have transformed the growth trajectory for our company and outlined what could become the world’s next Tier-1 copper-gold discovery.”

Cortadera is a major copper-gold porphyry discovery located along the Chilean coastal range, 14 kilometres from the company’s large-scale Productora copper development and adjacent to its high-grade El Fuego satellite copper projects.

Hot Chili acquired 100 per cent ownership of Cortadera in February 2019, after which it quickly commenced a confirmation drilling program that confirmed and extended areas of surface enrichment and wide, higher-grade, copper-gold sulphide mineralisation at depth, which had not previously been closed off by 23,000m of historical diamond drilling.

A key to Hot Chili’s initial success at Cortadera was the discovery and definition of a large and robust high-grade core to the largest of Cortadera’s four porphyry centres – Cuerpo 3.

The average grade of drill intersections recorded by Hot Chili within the high-grade zone of Cuerpo 3 ranges between 0.7 to 0.9 per cent copper and 0.3 to 0.4g/t gold.

The combined copper-gold drill intersection grade of the Cuerpo 3 high-grade zone compares well to the reserve grade of other large-tonnage underground mines.

Hot Chili followed up the above intersection with further drill results that outlined a second large source of bulk tonnage, high-grade copper and gold at the Cortadera discovery.

The results demonstrated that the drilling being carried out is continuing to grow the discovery, and just as importantly, is also providing strong encouragement for both open pit and underground, high-grade, development options.

The company kept both diamond and Reverse Circulation (RC) drill rigs spinning, the latter testing the extent of shallow chalcocite enrichment zones across three of the four Cortadera porphyry centres it has discovered to date.

Thirteen shallow Reverse Circulation (RC) drill holes were completed, from which results were available for seven across Cuerpo 2, the second largest porphyry at Cortadera.

These results confirmed and extended a bulk tonnage zone of high-grade copper and gold from surface.

The highlight drill result came from hole CRP0021 that recorded:

80m at 0.8 per cent copper and 0.3g/t gold from surface, including a high-grade chalcocite zone of 26m at 1.7 per cent copper and 0.7g/t gold from a down-hole depth of 54m.

High-grade zones related to chalcocite enrichment were drill confirmed at Cuerpo 1, 2 and 4, from surface and from shallow depth, with drill intersection copper grades ranging between 0.7 to 1.6 per cent and gold grades ranging between 0.3 to 0.7g/t gold.

The results achived to date show Hot Chili has a project in Cortadera that is shaping up as a globally important standalone copper-gold project, which can utilise the Productora project resources, while leveraging from a central processing and combined infrastructure approach along the coastline of Chile.

The company believes its recent discovery and addition of a higher-grade bulk tonnage underground development opportunity at Cortadera places it in a unique position amongst potential large-scale global copper-gold developments.

Hot Chili has received regulatory approval provides access to expand its phase 2 drilling program, which is expected to include first drill testing of two large growth targets identified close to the Cortadera discovery window: Cuerpo 3 North and Cortadera North.

Further results from the shallow RC drill program and expansion diamond drill program are anticipated for release in the New Year.

Hot Chili is well positioned to capitalise on the numerous world-class drill results that have established Cortadera as one the stand-out global copper-gold discoveries of 2019.

Drilling activities are set to accelerate in 2020 toward a first resource estimate with hopes of advancing various future funding discussions with several large domestic and international groups.


Directors: Murray Black, Christian Easterday, Dr Allan Trench, Michael Anderson, Roberto de Andraca Adriasola, Randall Nickson


Ardea Resources (ASX: ARL) Explorers 2020

THE CONFERENCE CALLER: Ardea Resources boasts a large portfolio of 100 per cent-controlled West Australian-based projects.

The company’s flagship is the Goongarrie nickel-cobalt project, that forms part of the broader Kalgoorlie nickel-cobalt project in Western Australia.

Ardea claims Goongarrie to be part of the largest nickel-cobalt Resource in the developed world with potential to be a multi-generational mine offering outstanding multi-commodity exposure which includes cobalt, nickel, scandium, vanadium, chromium, aluminium and gold.

Ardea’s other WA projects include Bedonia West, comprising E63/1827 and E63/1828 covering 358 square kilometres to complete Ardea’s coverage of the Jimberlana Dyke west of the existing Bedonia prospect.

Ardea has confirmed previously identified anomalous nickel-copper-PGM soil auger geochemistry is coincident with a specific intrusive phase of the Jimberlana Dyke lopolith.

The Perrinvale E29/1006 covers 175sqkm along the eastern strike continuation of the ‘Cathedrals’ Proterozoic Dyke complex.

The application was based on Ardea recognising lopolith mineralisation controls at Bedonia.

The company hopes to secure similarly endowed lopolith geological settings, as well as the northern strike continuation of the domain boundary Ida Fault hosting the Mt Ida gold mining centre.

Goongarrie is readily global-scale project, which Ardea is developing with the aim of becoming a long-term producer of high-quality nickel-cobalt sulphate.

The project currently hosts a Resource of 773 million tonnes at 0.71 per cent nickel and 0.05 per cent cobalt and offers plenty of upside with only five per cent of the company’s Kalgoorlie nickel-project landholding being factored in to the current resource.

Ardea is positioning Goongarrie to be a supplier of high-purity cobalt and nickel sulphate to the lithium-ion battery to meet the burgeoning demands of the growing automotive electrification, a market expected to account for 14 per cent of new car sales by 2025, whilst the cobalt sulphate market is forecasted to reach US$9.5 billion by 2025.

Increased demand for cobalt sulphate is driven by the higher energy density it provides to both electric vehicle and energy storage system batteries.

A Pre-Feasibility study demonstrated Goongarrie to be a highly valuable development project and Ardea is determined to continue to advance the project toward a final investment decision.

Recent work undertaken close to Goongarrie included rock chip sampling of old workings and sporadic outcropping that confirmed gold mineralisation over an area of at least 400 square metres at the Mulga Plum gold prospect.

The mineralisation encountered is mostly vein-hosted, returning up to 17.1 grams per tonne gold in selective quartz lode material.

All rock types assessed returned an average grade of 1.8g/t gold for all samples taken, which the company interpreted to suggest the presence of bulk tonnage potential within a dominantly granite host.

Ardea is evaluating Mulga Plum as a bulk-tonnage gold system as part of its broader aim to prove up and mine gold from its suite of projects near the Goongarrie project and these results bolstered its confidence in the project to proceed to early stage drill evaluation of the project.

A systematic shallow RC drill program of 26 angled RC holes of 50 to 70m each to define extent and orientation of near-surface gold mineralisation was being planned at the time of writing.

Much of Ardea’s 2019 was focused on the spin out of the company’s New South Wales Lachlan Fold Belt gold-base metal projects into Godolphin Resources (ASX: GRL).

This was completed in December, after which Godolphin’s development focus will be the Lewis Ponds gold-zinc and Mount Aubrey gold projects associated with the Lachlan Transverse Zone (LTZ) of the Lachlan Fold Belt (LFB) in central NSW.

Since its listing in 2017, Ardea quickly became the second largest mineral tenement holder in NSW amassing a dominant land position it acquired through detailed project scale and regional data compilation and analysis.

Work completed by Ardea advanced these NSW projects towards defining four separate JORC Code-compliant mineral resources.

Work programs completed include land-holder access agreements, digitally capturing historic exploration data, geological mapping and soil auger geochemistry, leading to the definition of drill-ready targets across granted Godolphin tenure.

“We understand that different investors in Ardea have preferences for different asset exposure and with the Godolphin spin-out, we can clearly separate the WA Goongarrie nickel cobalt project nickel production opportunity from the New South Wales gold production opportunity with ancillary gold/base metal exploration,” Ardea Resources CEO Andrew Penkethman said.

“This will drive superior value for shareholders in both entities.

The New South Wales assets being in a separate fully independent vehicle will crystallise their value and allow them to be advanced independently of Ardea’s West Australian exploration and development initiatives.”


Directors: Andrew Penkethman, Katina Law, Ian Buchhorn, Wayne Bramwell

Trigg Mining

THE CONFERENCE CALLER: Trigg Mining’s ambitions lie in securing Australia’s sustainable agriculture future through the exploration of the essential potassium fertiliser, sulphate of potash (SOP).

Trigg is looking to establish a domestic source of SOP, given that currently Australia imports all its potassium fertiliser needs, often from as far away as Canada and Germany, despite potassium-rich brines being known to exist in the desert regions of Western Australia.

“This is mining in name more than anything else, because it is an evaporation-style mineralisation,” Trigg Mining managing director Keren Paterson said.

“It’s about agricultural mineralisation and food supply…we have been out speaking with farmers in Western Australia, because our projects are very close to the WA agricultural sector, so it’s important to understand the needs of our farmers and the people who produce our food.

“We have resources here in Australia and we can’t wait to define what potentially will be ours and to engage with the farmers of Western Australia and Australia as a whole.”

Trigg Mining has built a competitive footprint across two SOP Projects in the Goldfields of WA: the Laverton Links and Lake Throssell potash projects.

The company stated aim is the exploration for naturally occurring SOP, found in potassium-rich hypersaline brine water, which provides two essential elements for plant growth and human nutrition – potassium and sulphur.

Beside from its ability to provide these two important macro nutrients, the other important characteristic of SOP is that it contains very little chloride which is detrimental to many crops such as fruit and vegetables including avocados, cocoa, coffee beans, grapes, berries and tree nuts, as well as arid and acidic soils.

The sustainability factor stretches to the production of SOP, which can be achieved through the solar evaporation of potassium-rich hypersaline brine water, without the need for large open pits or waste-rock dumps.

“it’s very simple exploration,” Paterson continued.

“It’s aircore drilling that is shallow as we are exploring for the water – the minerals are already dissolved in the water.”

Trigg Mining’s SOP projects do just this and extend the company’s ambitions by being located approximately 200 kilometres east of Laverton in Western Australia close to established energy and transport infrastructure for access to Australian and international agricultural markets.

The projects cover more than 3,000 square kilometres and contain over 400sqkm of salt lake playa and 375km of interpreted palaeochannels (ancient underground rivers), all of which are considered by the company to be highly prospective for brine hosted SOP.

Just as 2019 was coming to a close, Trigg Mining announced a new discovery of high-grade SOP at its Lake Throssell SOP project.

The discovery came via hand-auger brine samples that returned high-grades of up to 6,660 milligrams per litre (mg/L) potassium or 14.8 kilograms per cubic metre (kg/m3) SOP equivalent.

An average grade of 5,296mg/L potassium, or 11.8kg/m3 SOP equivalent was achieved from 18 samples.

The results set Trigg to the drawing board to immediately plan activities to target the basal sand aquifer of the palaeochannel in 2020, including geophysical surveys and exploration drilling.

The company plans an initial air core drilling program in 2020 to map and sample the underlying palaeochannel in conjunction with additional near-surface sampling, with the aim of establishing an initial JORC Mineral Resource.

The early indication of potential mineralisation led the company to apply for two new tenements to the north and the south of Lake Throssell along the interpreted underlying palaeochannel, securing the Lake Throssell system, taking the project area to 752sqkm, all of which it considers prospective for SOP mineralisation with a 106km trend.

“The Lake Throssell Sulphate of Potash project is shaping up to be a significant SOP project,” Paterson said.

“These high-grade results across the playa and the potential scale of the underlying palaeochannel makes this discovery one of the most important for Australia’s emerging SOP industry and our nation’s food security.”

Trigg struck an agreement to purchase a tenement covering the western portion of Lake Rason, paying $20,000 for exploration licence E38/3437.

The tenement is not expected to be granted until Q3 FY20, however Trigg believes the additional ground in the Lake Rason area has the potential to enhance the anticipated Mineral Resource estimate following completion of sampling and drilling programs with 10km of direct lake trend to be added to the existing 42km lake trend.

Early exploration work carried out by the company has established a JORC Code-compliant Exploration Target at the Lake Rason prospect and identified the palaeochannel and SOP mineralisation at the Lake Hope Campbell prospect.


Directors: Keren Paterson, Mike Ralston, Bill Bent



Lithium Australia

THE CONFERENCE CALLER: Pyrometallurgical processing of spent Lithium-ion batteries (LIBs) can efficiently recover nickel, copper, cobalt and manganese from LIBs, but not the lithium or graphite.

Research and development into the science by Western Australia-based battery recycling company, Lithium Australia (ASX: LIT) recognised that a potential alternative to the downsides associated with pyrometallurgical processing is to take a hydrometallurgical approach.

LIBs enable us to cope with the technological demands of modern living, such as maintaining a charge on our mobile phones or computer-related devices, thus keeping us contacted with the rest of the world and our family members in the next room.

They are, presently, our greatest source of portable power yet are, ironically, creating an environmental nightmare.

On a global basis only around nine per cent of spent LIBs are recycled to keep them out of landfill and recover valuable metals.

In Australia, which is supposedly one of the recycling powerhouses, the recycling rate is embarrassing, some would say woeful, coming in at less than three per cent.

What this all means is that the world is missing out on a great opportunity – that being the large quantity of batteries discarded globally which actually represents a potentially significant resource.

Australia is a long way behind the countries that are presently leading the battery recycling wars.

Belgium, South Korea, China and Canada recycle the most batteries, with the metals they contain generally recovered by smelting – or as it is referred to by those in the know – pyrometallurgical processing.

Lithium Australia is developing a hydrometallurgical technique that recovers all metals, including lithium, from spent LIBs.

Lithium Australia has openly declared that its corporate intentions include shoring up an ethical and sustainable supply of energy metals to the battery industry, thus enhancing energy security in the process.

The company is eager to create a circular battery economy and has highlighted the recycling of old lithium-ion batteries to new, is intrinsic to this plan.

In October 2019, Lithium Australia announced it had increased its equity in Envirostream Australia Pty Ltd (EA) to 23.9 per cent.

Envirostream is the only company in Australia with the integrated capacity to collect, sort, shred and separate all the components of spent LIBs.

In December, Lithium Australia completed a JV for joint battery marketing operations with China-based battery and energy storage specialists the DLG Group (DLG).

The JV will trade as Soluna Australia Pty Ltd, and will sell lithium-ion batteries (LIBs) and Soluna energy storage products into the rapidly expanding Australian renewables energy market.

Lithium Australia’s 100 per cent-owned subsidiary company, VSPC Ltd has developed advanced processes for manufacturing lithium-ferro-phosphate (LFP) cathode powders at its R&D and pilot plant facility in Brisbane, Queensland.

The cathode powders produced by VSPC possess simple nanotechnology that produces superior battery cathodes, provides control of composition and particle size in a precise manner and highly reliable quality control with low production costs.

VSPC Ltd signed a Memorandum of Understanding (MoU) with Beijing Saideli Technology Incorporated Company Ltd (SDL) to commercialise VSPC cathode material.

The terms of the MoU include the low-capital establishment of a supply chain for VSPC cathode material in China, and collaboration on a feasibility study for an international cathode material project, beyond China, using VSPC technology.

The MoU was agreed following technical review and discussions based on VSPC’s Lithium-Ferro-Phosphate (LFP) cathode product.

VSPC is a developer of advanced cathode materials that owns a patented process for the production of lithium-ion battery (LIB) cathode materials.

SDL’s experience lies in the design and manufacture of process equipment and extensive experience in the construction, commissioning and operation of chemical process plants, including those for the production of LIB cathode powders.

The market for LFP cathode material is anticipated to enjoy a strong run in the near future with analysts forecasting to grow strongly over the next decade.

In addition to core applications for ebus and stationary storage, heightened demand is expected through substitution (existing) and displacement (expanding) in applications that have traditionally been the domain of lead acid batteries.

This includes, but is not limited to, 12V and 48V applications for micro and mild hybrid powertrains, LSEV (low speed electric vehicles), datacentre UPS and 5G tower backup.

“We see partnering with SDL – which has a demonstrated track record in process development and high-tech process plant delivery – as a great opportunity,” Lithium Australia managing director Adrian Griffin said.

“VSPC’s MoU with SDL provides Lithium Australia with a low-capital pathway to the commercialisation of VSPC cathode powders, in order to meet targets set by our other partners in China.”


Directors: Adrian Griffin, Bryan Dixon, George Bauk


Carawine Resources

THE CONFERENCE CALLER: Carawine Resources is an exploration company with the aim of developing economic gold, copper and base metal deposits within Australia.

The company has four projects, each targeting high-grade deposits in well-established mineralised provinces throughout Australia.

The company’s main project is the 100 per cent-owned Jamieson project, located near the township of Jamieson in the north-eastern Victorian Goldfields.

The Jamieson project comprises granted exploration licences EL5523 and EL6622, covering an area of approximately 120 square kilometres.

Jamieson contains the Hill 800 gold-copper prospect that was discovered by New Holland Mining in 1994 and the Rhyolite Creek copper-gold and zinc-gold-silver prospect, both of which sit within Cambrian-aged felsic to intermediate volcanics.

The Rhyolite Creek prospect, located about 5km south of Hill 800, was discovered in 2008, by diamond drilling intersecting a zone of strong alteration and sulphide mineralisation returning high-grade zinc, gold and silver from an interpreted seafloor Volcanogenic Massive Sulphide (VMS) system.

Recent work at the Jamieson project entailed a detailed helicopter-borne magnetic and radiometric (heli-mag) geophysical survey that provided support to the company’s belief in the potential for porphyry targets beneath Hill 800 and Rhyolite Creek, by confirming existing targets and providing a number of exciting new anomalies.

Carawine intends using the results from this survey will to model the size and depth of each anomaly, which can then be prioritised for drill testing.

The study revealed a magnetic high anomaly potentially down-dip from Hill 800 the company interpreted to be characteristic of the typical geophysical response from a mineralised porphyry copper-gold stock and is therefore high on its priority list for modelling and drilling.

The remainder of the company’s portfolio is located in Western Australia, the main focus of which is the Paterson project, situated in the Paterson Province at the eastern edge of the Pilbara Craton.

Neighbourhood wise, the Paterson area hosts some well-heeled residents, including the Telfer gold-copper deposit, and the Nifty and Maroochydore strata-bound copper-(cobalt) deposits.

Carawine’s Paterson project comprises six granted exploration licences and five exploration licence applications straddling an area of around 1,500sqkm across nine regions: Lamil Hills, Trotman South, Red Dog, Baton, Sunday, Cable, Puffer, Eider and Magnus.

Carawine scored a Joint Venture double banger in regards to the Paterson project during 2019.

After adding four new exploration licence applications in the western part of the Paterson Province, Carawine announced a Farm-In and Joint Venture Agreement with Rio Tinto Exploration Pty Limited (RTX) a wholly-owned subsidiary of Rio Tinto (ASX: RIO).

The Farm-In and JV will explore Carawine’s Baton (E45/4871 & E45/4955) and Red Dog (E45/4881) Tenements where it has identified more than twenty high-priority target areas, covering a range of potential deposit types in the Paterson region, all requiring follow-up exploration.

“To have one of the world’s largest resources companies committing to significant expenditure on our Baton and Red Dog tenements is a strong endorsement of the prospectivity of the Tenements,” Carawine Resources managing director David Boyd said.

“They have the technical knowledge and resources to rapidly and systematically evaluate the numerous high priority targets at Baton and Red Dog, increasing the chances of a successful discovery.”

Carawine backed this up by striking a Farm-In and JV Agreement with a subsidiary of FMG Resources (ASX: FMG) that will cover exploration of the Lamil Hills (E45/5326), Trotman South (E45/4847) and Sunday (E45/5229) tenements.

Lamil Hills is within 30km to the northwest of Newcrest Mining’s Telfer gold-copper mine; Trotman South is 30km to the south of the Telfer mine; and Sunday is within 5km of Metals X’s Maroochydore copper-cobalt deposit.

Under the terms of the agreement FMG will explore Carawine’s eastern Paterson project tenements targeting copper, gold and base metals.

Fortescue is to pay $125,000 cash up front and spend $0.5 million on exploration in the first eighteen months.

Elsewhere in WA, Carawine has the 100 per cent-owned Oakover project, located in the Eastern Pilbara region, comprising fourteen granted exploration licences and one exploration licence application with a total area of about 2,500sqkm.

The Oakover project is prospective for copper, cobalt, manganese and iron.

Last of all, the Fraser Range project includes six granted exploration licences in five areas: Red Bull, Bindii, Big Bullocks, Similkameen and Big Bang.

Carawine has a JV with Independence Group (ASX: IGO) over the Red Bull, Bindii, Big Bullocks and Similkameen tenements, in which IGO currently hold a 51 per cent interest with prospect of earning an additional 19 per cent interest by spending $5 million by the end of 2021.


Directors: Will Burbury, David Boyd, David Archer


Metalicity Confirms Additional Gold Mineralisation at Kookynie

THE DRILL SERGEANT: Metalicity (ASX: MCT) announced intercepts from its September drilling program, claiming they confirm mineralisation extensions past previously developed and drilled areas at the company’s Kookynie project in the Eastern Goldfields of Western Australia.

Metalicity completed a three-hole follow up program that it said reaffirms the excellent exploration potential of the Kookynie gold project.

Results include:

At Leipold
9 metres at 7.31 grams per tonne gold from 34m, including 3m at 7.91g/t gold from 34m; and

4m at 10.4g/t gold from 39m, including 1m returning 31.2g/t gold from 40m.

3m at 1.41g/t gold from 73m; and

1m at 1.35g/t gold from 127m.

According to Metalicity, all holes returned structural continuation of mineralisation and noteworthy intersections.

“While the short program encompassed three drill holes, each was successful in again extending the known mineralisation,” Metalicity managing director Jason Livingstone said in the company’s announcement to the Australian Securities Exchange.

“The intercept at Leipold illustrates the high-grade nature that is possible within these structures.

“I am very excited to see the completion of the current rights issue on offer and continue to develop the Kookynie gold project, which represents a significant opportunity for Metalicity.”

The Kookynie project is host to six prospects: Champion, McTavish, Leipold, Diamantina, Cosmopolitan and Cumberland.




Cygnus Gold (ASX: CY5)

THE CONFERENCE CALLER: Cygnus Gold (ASX:CY5) has extended nickel anomalism on the back of results from soil sampling over the Bencubbin North nickel and base metals prospect within the company’s wholly owned Bencubbin project in the Wheatbelt region of Western Australia.

Cygnus Gold has also announced a high-grade gold intersection at the company’s Stanley project in the Wheatbelt of Western Australia.

The Resources Roadhouse caught up with Cygnus Gold managing director James Merrillees at the RIU Resources Investor Roadshow in Melbourne to get the low down on proceedings.


With the surface sampling having extended the nickel-copper and copper-lead-zinc prospectivity at Bencubbin North, outlining widespread PGE anomalism consistent with potential for magmatic nickel-copper sulphide mineralisation, Cygnus Gold has declared it intends carrying out infill sampling to refine targets for drill testing with sampling to commence on the highest priority targets.

Cygnus is also planning to commence sampling on the Bencubbin South tenement over extensions of the Bencubbin Greenstone as well as further sampling of the Mandiga Trend, located at the southern end of Bencubbin North project, which it considers highly prospective for base metals.

Drilling is planned in the second half of the year once it has received and interpreted these results.





Triton Minerals (ASX: TON)

THE CONFERENCE CALLER: Triton Minerals (ASX: TON) is an emerging graphite producer with three world class graphite projects in the Cabo Delgado region of Northern Mozambique that the company considers to be, arguably, one of the world’s best locations for graphite.

The Triton Board has approved development of the company’s flagship Upulo (Ancuabe) graphite project and early works activities are well underway with mining and processing scheduled commence in the first half of 2020.

Ancuabe’s large flake and high purity graphite is a key differentiator and is well positioned to be a market leader in the expandable graphite market.

The Roadhouse spent an interesting couple of minutes with Triton Minerals managing director Peter Canterbury at the RIU Resources Investor Roadshow in Melbourne.


Ancuabe is complemented by two other assets that provide a project pipeline for development or Joint Venture partnership and include the world’s largest combined graphite and vanadium deposit, Nicanda Hill, that Triton believes to be ideally suited to the battery market.