St George Mining Identifies Paterson Province Exploration Targets

THE DRILL SERGEANT: St George Mining (ASX: SGQ) has carried out an airborne magnetic survey over the company’s Paterson project, located within the Paterson Province of Western Australia.

St George Mining completed the survey in March with the aim of evaluating the structure and stratigraphic setting and identifying focus areas for further exploration.

The company has interpreted the high-resolution magnetic data from the survey to identify prominent magnetic features, which it has deemed to represent key stratigraphic units and granitic intrusions similar to what hosts other precious metals and base metals discoveries in the region.

“The results from the aeromagnetic survey have exceeded our expectations with multiple areas of interest identified across the 35 kilometres strike of prospective stratigraphy on our exploration ground,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We have begun planning for the 2020 drill program and applied for the Western Australian Government’s Exploration Incentive Scheme (EIS), which provides co-funding for exploration drilling up to a prescribed capped amount.

“Our Paterson project is shaping up as an outstanding opportunity to make a greenfields discovery.

“We are excited to be progressing exploration at the Paterson while we continue our principal exploration and development activities at our flagship Mt Alexander nickel-copper sulphide project.”





Peel Mining Continues Wirlong Drill Success

THE DRILL SERGEANT: Peel Mining (ASX: PEX) recently completed a diamond drill program at the Wirlong prospect, south of Cobar in western New South Wales.

Wirlong is part of the company’s Cobar Superbasin project, A Joint Venture with JOGMEC (Japan Oil, Gas and Metals National Corporation).

Peel Mining’s latest drilling at Wirlong comprised three diamond drillholes that were designed to target the Wirlong Central zone to test a newly interpreted strike orientation of high-grade copper mineralisation returned from historic drillholes.

“Importantly, the newly returned high-grade copper intercepts support the revised structural model, offering excellent potential to define high-quality resources and add new mineralisation in the future,” Peel Mining said in its ASX announcement.

Results from the drilling include:

4.26 metres at 2.22 per cent copper, 7 grams per tonne silver from 380m, including 0.26m at 15.85 per cent copper, 58g/t silver from 384m; and
0.74m at 14.3 per cent copper, 66g/t silver from 396.2m.

1.15m at 7.71 per cent copper, 30g/t silver from 54.45m, including 0.25m at 30 per cent copper, 97g/t silver from 54.45m;
30m at 1.64 per cent copper, 8g/t silver from 305m, including 14m at 2.63 per cent copper, 12g/t silver from 320m; and
9.6m at 1.32 per cent copper, 2g/t silver from 436.4m.

5.9m at 3.19 per cent copper, 13g/t silver from 347.1m, including 0.65m at 18.65 per cent copper and 48g/t silver from 351.87m.

Peel Mining completed down-hole EM on drillholes WLDD003 and WLDD004, using a newly designed transmitter loop designed to couple with mineralisation based upon its revised structural model.

“A number of high-grade copper intercepts in the area intersect the modelled plate or are in close proximity to its position, further supporting the new structural models’ validity,” the company explained.

“The strike of mineralisation remains open to the southeast and northwest, and downdip.”

The company forecast future activities for Wirlong to include further infill and extensional drilling and geophysical surveying to assist with exploration drill targeting along with the completion of a maiden mineral resource estimate.






Twenty-Seven Co Identifies Its Name in New Conductors

THE DRILL SERGEANT: TSC Limited (ASX: TSC) has identified 27 new conductors at the company’s Rover project in Western Australia.

TSC made the identifications via a recently-completed AEM survey over southern half of the Rover project.

The company explained that the vast majority of the conductors are situated along a 20-kilometres-long prospective gold strike that is part of the Maynard Hills greenstone belt.

TSC’s consultant geophysicist analysed the final data from the AEM survey, facilitated by New Resolution Geophysics’ advanced Xcite system.

From this an additional 14 AEM conductors have been identified, taking the total to a substantial 27 (up from 13 in early March).

Twenty-five conductors are located along a 15km stretch of the Maynard Hills greenstone belt, one conductor is located on the Cook Well greenstone belt and one is located in granitic rocks between the greenstone belts.

The bulk of the conductors have been grouped into five areas sequentially from north to south, including:

Two conductors west of Creasy 1 gold prospect;
Four conductors at Creasy 2 VMS prospect;
Five conductors near Creasy 3 prospect;
Five conductors covering a 600m strike at the newly discovered Red Bush prospect; and
Nine conductors southeast of Red Bush, with six coincident to a gold target identified in a geophysics study last year.

“Without doubt, the final AEM survey results have significantly surpassed expectations, with a substantial 27 conductors to follow up at the Rover project,” TSC CEO Ian Warlandsaid in the company’s announcement to the Australian Securities Exchange.

“To maintain exploration momentum, TSC has contracted a GEM crew to survey the most promising AEM conductors so that high-quality test-drill targets can be finalised for future drilling campaigns.

“With the second RC drilling program complete, TSC is now eagerly awaiting assays and GEM results which will determine next steps.”





Rox Resources Encounters High-Grade Grace Intersections

THE DRILL SERGEANT: Rox Resources (ASX: RXL), in conjunction with its joint venture partner Venus Metals Corporation (ASX: VMC) reported results from its early 2020 drilling program undertaken at the Youanmi project in Western Australia.

Rox Resources reported that recent drilling at Youanmi has defined a very high-grade zone of mineralisation (greater than 30 gram-metres) extending from surface, open to the north that lies within a broader wide zone of mineralisation.

Recent assays from drilling undertaken at the Grace prospect include:

7 metres at 54.6 grams per tonne gold from 8m;

1m at 29.7g/t gold from 23m;

6m at 5.7g/t gold from 24m;

4m at 4.5g/t gold from 9m, and 3m at 5.32g/t gold from 53m.

“The Grace prospect is emerging as an exciting high-grade deposit with one of the better recent intersections returned from hole RXRC151 being a spectacular 7 metres at 54.6 grams per tonne gold from 8 metres,” Rox Resources managing director Alex Passmore said in the company’s announcement to the Australian Securities Exchange.

“This newly discovered mineralisation has all the hallmarks needed to bring it into early production-it is close to surface, lies near to existing pits and sits within a granted mining lease which already has substantial infrastructure.”





Kin Mining Returns Further High-Grade Cardinia Results

THE DRILL SERGEANT: Kin Mining (ASX: KIN) received final results from drilling undertaken at the company’s Cardinia gold project (CGP) near Leonora in Western Australia.

Kin Mining said the results came from one-metre split samples collected at Lewis East and Lewis West and were generated from an aircore (AC) drilling program completed in December 2019.

The company explained the 1m samples were collected from 4m composite samples greater than 0.1 grams per tonne gold, to allow for better definition of the mineralised zones.

Highlights included near-surface, high-grade zones of gold mineralisation confirmed at Lewis East of:

11 metres at 3.85 grams per tonne gold from 24m, including 8m at 5g/t gold from 24m;

6m at 3.63g/t gold from 9m, including 2m at 9.27g/t gold from 10m;

19m at 1.04g/t gold from 14m, including 5m at 2.28g/t gold from 26m.

The drilling also confirmed low grade zones along controlling structures Lewis West, including:

1m at 3.24g/t gold from 10m.

Kin mining interpreted the Lewis East results have added to previously released results and continue to confirm the presence of several lodes of high-grade gold mineralisation, within wider haloes of lower grade.

“The Lewis East mineralisation based on the four-metre composite assays was interpreted to be broad zones of medium grade material with occasional higher grade zones generally in a north east dipping orientation,” Kin Mining managing director Andrew Munckton said in the company’s announcement to the Australian Securities Exchange.

“The one-metre split sampling has confirmed that the broad medium grade intersections generally contain a narrower, higher grade core of mineralisation displaying vein style pyrite mineralisation surrounded by lower grade disseminated sulphides and alteration.

“The one-metre sampling has helped the geological teams define the controls on the mineralisation more clearly.

“At Lewis East, the higher grade, north east dipping mineralised zones appear to be similar to the Lewis mineralisation located between 500 metres to 1000 metres to the north west within the Bruno-Lewis mineralised system.

“The Lewis East mineralisation occurs directly along strike of the two North east dipping Lewis lodes, which have undergone extensive historical RC and diamond drilling.

“Further RC drilling at Lewis East is planned to test the depth and strike extent of the Lewis East lodes and the potential continuity with the Lewis mineralisation.

“These veins appear to be initiated from north east trending faults associated with the rapidly expanding Lewis Fault system.

“The Lewis Fault system is intimately associated with mineralisation at the Lewis, Lewis East, Nevertire, Black Chief and the Comedy King deposits.

“These deposits are spread over an area covering approximately four-kilometres by two-kilometres and represent a cluster of deposits displaying both high-grade vein and lode style mineralisation and lower grade alteration halo mineralisation, all with a common geological control.”





Emmerson Resources Awarded NSW Government Drilling Grants

THE DRILL SERGEANT: Emmerson Resources (ASX: ERM) has been awarded drilling co-funding grants from the New South Wales government for the company’s Kiola and Kadungle projects.

The Kiola project is situated within the Molong Belt, providing favourable nearology to Alkane Resources’ recent Boda copper-gold discovery and Newcrest’s world class Cadia-Ridgeway copper-gold deposit.

The Kadungle project sits within the Narromine Belt where previous drilling has intersected high-grade gold and copper.

The New Frontiers Cooperative Drilling grants program by the NSW government encourages private exploration drilling in the search of high-value mineral deposits in prospective underexplored areas of NSW and where companies are using the latest technology to identify new deposits.

The $2 million program is a co-funded initiative where the NSW government provides up to 50 per cent of direct drilling costs for individual projects, capped at $200,000.

“Emmerson is well placed to emerge in a very strong position once this COVID-19 crisis allows field activities to recommence,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“We have exceptional ground positions in one of the Australia’s highest-grade gold provinces at Tennant Creek plus a suite of early mover assets in some of the hottest exploration districts in New South Wales.

“The announcement by the New South Wales government that Emmerson has secured two Cooperative Drilling Grants has not only reduced our exploration costs across both our Kiola and Kadungle projects but is also testament to the potential of these projects to generate new copper-gold discoveries.

“Additionally, we have prudently implemented cost saving measures across our business to help weather the challenging economic conditions we currently face.”





De Grey Mining Increases Mallina Gold Resources

THE DRILL SERGEANT: De Grey Mining (ASX: DEG) announced a substantial increase to the Mineral Resources at the company’s Mallina project in Western Ausralia.

De Grey Mining reported a 29 per cent increase in overall Mineral Resources at the Mallina project – for drilling undertaken up to 31 December 2019 – compared to the July 2019 Total Gold Mineral Resource (JORC 2012).

The total Mineral Resource has come in at 37.44 million tonnes at 1.8 grams per tonne golf for 2.2 million ounces of gold.

This breaks down as Measured and Indicated (49%) 18.95 million tonnes at 1.7g/t gold for 1.1 million ounces of gold; and Inferred (51%) 18.49 million tonnes at 1.9g/t gold for 1.1 million ounces of gold.

The resource upgrade includes updated resource models for Withnell open pit, Withnell Underground, Toweranna open pit depth extensions and Toweranna underground, together with shallow extensions to the Mallina resource.

Of note is that the updated Resource does not include any drilling results from the company’s recent Hemi discovery.

“We are very pleased to have achieved 2.2 million ounces based on all drilling to the end of 2019,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“Importantly, we have maintained the high average grade of 1.8 gram per tonne, all deposits commence from surface making them readily amenable to open pit mining and all remain open.

“Our new Hemi discovery is shaping up as a game changer and is not included in this resource statement.

“The thickness of mineralisation at Hemi is an order of magnitude larger than our existing deposits which provides an exciting opportunity to significantly grow our resources.

“As we have repeatedly stated, our next corporate goal is to achieve plus-three million ounces and we strongly believe this will be eclipsed by the end 2020.

“Substantial increases in the project economics are anticipated with the inclusion of the Hemi deposit.

“Accordingly, the economic studies will be updated once the scale and resources are defined at Hemi.

“Ongoing feasibility activities including detailed metallurgical test work and long lead items such as environmental, infrastructure and water studies will continue during the Hemi resource drilling.

“At Hemi, drilling is continuing with two diamond and one RC rig into the foreseeable future.

“The next Hemi results are scheduled for early next week.”





Alto Metals Reports Further Lord Nelson Gold Hits

THE DRILL SERGEANT: Take-over target, Alto Metals (ASX: AME) made itself an even more attractive proposition with the release of results from a recent drilling program at the Lord Nelson prospect within the company’s Sandstone gold project in Western Australia.

Alto Metals conducted the drilling to target extensions of high-grade mineralisation both along strike and beneath the Lord Nelson open pit during February and March 2020, comprising a total of 19 RC drill holes (SRC163-181) for 3,718 metres.

The company reported the drilling had confirmed shallow mineralisation (around 70metres vertical depth) some 200m along strike to the south of the Lord Nelson pit.

One-metre re-split fire assay results include:

23 metres at 3.8 grams per tonne gold from 106m, including 6m at 4.6g/t gold from 106m and 10m at 4.5g/t gold from 116m.

10m at 4.1g/t gold from 34m, including 2m at 12.8g/t gold from 36m.

Mineralisation style and geological setting of this lode is identical to that of the Lord Nelson deposit.

The latest results follow previously announced high-grade gold results the company achieved from wide spaced deeper drilling that highlighted potential in the primary zone below the Lord Nelson pit.

“Drilling results to date clearly demonstrate the continuity of wide zones of high-grade mineralisation both along strike and at depth, beneath the historic Lord Nelson open pit,” Alto Metals non-executive director Matthew Bowles said in the company’s announcement to the Australian Securities Exchange.

“The continued success of the drilling program validates the company’s exploration strategy and confirms the mineralisation style and geological setting being identical not only to that of the Lord Nelson deposit but also of many other major orogenic gold deposits in the Yilgarn.”

Alto also reported that its applications for Mining Leases M57/650, M57/651 and M57/652 were granted on 23 March 2020.

These leases cover the company’s Havilah, Lord Nelson and Lord Henry JORC 2012 Mineral Resources.

Alto believes the granting of these additional leases complements its other granted Mining Leases M57/646 and M57/647, which cover the Indomitable and Vanguard Camp JORC 2012 Mineral Resources.

The company outlined its thoughts that securing these leases is part of a longer-term strategy for Sandstone, however Alto’s immediate focus remains the exploration if its numerous prospects within its 100 per cent-owned 800 square kilometres project area.

On 21 February 2020 Goldsea Australia Mining Pty Ltd, an Australian wholly-owned subsidiary of Shandong Goldsea Group Co. Ltd, announced ITS intention to make an off-market takeover to acquire all of Alto Metals’ shares 6.5 cents cash per share.

The Goldsea offer is the second take-over received by Alto in less than 12 months, following the previous takeover offer from Middle Island Resources (ASX: MDI) in 2019.

The directors of Alto Metals have advised its shareholders they should continue to take no action on the offer, and await the Board’s formal recommendation.





St George Mining Expands Mt Alexander Nickel-Sulphide Targets

THE DRILL SERGEANT: St George Mining (ASX: SGQ) has identified a raft of new exploration targets at the company’s Mt Alexander nickel-copper sulphide project in the north-eastern Goldfields of Western Australia.

St George Mining completed an MT/AMT survey at Mt Alexander that was designed to map structures and conductive rock types (including mafic/ultramafic intrusives) along two key sections of the Cathedrals Belt that are known to host nickel-copper sulphide mineralisation.

The survey was also designed to identify repetitions of similar structures and stratigraphy in the underexplored tenements adjacent to the Cathedrals Belt.

The company reported that the interim results from the MT survey have indicated the presence and orientation of the prospective structures and potential mafic/ultramafic stratigraphy, opening up a new range of priority targets for nickel-copper sulphides.

At the Investigators prospect, data from the MT survey has clearly shown a conductive response that is coincident with the Investigators ultramafic where extensive high-grade mineralisation has already been discovered from near surface to more than 250 metres below surface.

The MT survey data also demonstrated conductive responses to be present at depth at the Fairbridge prospect, the West End prospect and to the north of Investigators on tenement E39/548 (owned 100% by St George).

These areas have also never been drilled.

“The results from the MT survey are a game-changer for exploration at the Mt Alexander project,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We have already discovered high-grade nickel-copper sulphides at shallow depths across more than 5.5 kilometres of the Cathedrals Belt.

“However, intrusive mineral systems like we have at the Cathedrals Belt will typically have significant mineralisation at depth.

“These potential larger deposits are likely to be at deeper levels than explored to date at the Cathedrals Belt and our challenge has been how to best target drilling to discover these deeper, undercover deposits.

“The MT survey has gone a long way towards unlocking the geological model at the Cathedrals Belt by providing new and breakthrough insights into the stratigraphy and structural framework at depth.

“We now have a guide to where the granites have disrupted the ultramafics, how the ultramafics have been folded and – most importantly – where the deeper deposits may be located.

“We will revise the drill programme for Mt Alexander in light of this data and are very excited at the opportunity to test drill these new targets.

“The COVID-19 pandemic has created many challenges for our community and for our industry.

“We will carefully navigate this evolving period of uncertainty to protect the health and safety of our team and service providers, and to keep St George strong.

“We are undeterred in our commitment to deliver further exploration success at our projects and will be announcing more significant exploration initiatives over the coming weeks, including a revised drill program for Mt Alexander and our first exploration results at the new Paterson project where an airborne magnetic survey was completed this month.”

St George also announced the appointment of Entech as its external geological consultant to estimate a maiden JORC-compliant mineral resource at the Mt Alexander project.

A scoping study is scheduled that will focus on assessing a potential mining operation that can be developed with very low capital costs and a simple open-pit mining operation.

The resource estimate will initially focus on the Stricklands deposit – where thick massive nickel-copper sulphide mineralisation starts at 30m below surface.

St George considers Strickland to have the simplest potential mining operation among the four shallow deposits discovered so far across the Cathedrals Belt.

“The appointment of external geological consultants for a maiden resource estimate is another major step in the scoping study for the potential mining of the shallow deposits at the Cathedrals Belt,” Prineas continued.

“We are aiming to deliver an economically robust start-up mine with very low up-front capital costs and a high-value product with exceptional payabilities for nickel, copper, cobalt and platinum group metals that include palladium, platinum and rhodium.”

From the drill bit, St George received assays for drill hole MAD177, which it declared to have confirmed high-grade nickel-copper-cobalt-PGE sulphide mineralisation, including:

10.5 metres at 4.82 per cent nickel, 1.67 per cent copper, 0.15 per cent cobalt and 2.87 total grasm per tonne PGEs from 182.5m, including 4m at 7.53 per cent, 2.47 per cent copper, 0.23 per cent cobalt and 3.92 total g/t PGEs from 186m.

Platinum group metals include high levels of Palladium and Rhodium – 10.5m at 2.33g/t Pd and 0.08g/t Rh, including 4m at 3.23g/t Pd and 0.1g/t Rh.

“The assays for MAD177 have again reminded us of the high quality of our mineralisation,” Prineas said.

“Long-term market demand for new high-grade nickel sulphide discoveries like Mt Alexander remains very strong and St George is exceptionally well positioned to take advantage of the economic bounce-back when the pandemic subsides.”




Musgrave Minerals Encounters More Starlight Gold

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported further high-grade gold assay results from its 100 per cent-owned Starlight Link-Lode at the Break of Day deposit on the company’s Cue gold project in Western Australia.

Musgrave Minerals completed reverse circulation (RC) drilling at the Starlight Link-Lode that was focused on testing the new high-grade link-lode.

The company reported the drilling had continued to return consistent, high-grade gold results in drilling where the mineralisation has now been extended to a strike of over 100 metres and remains open to the west and down dip.

Assays of note from the latest drilling include:

42 metres at 6.8 grams per tonne gold from 70m, including 4m at 65.9g/t gold from 70m, including 1m at 173.6g/t gold from 71m;
2m at 3.6g/t gold from 101m; and
2m at 6.2g/t gold from 110m.

4m at 1.7g/t gold from 136m to end of hole with the hole terminating in mineralisation.

“These are more fantastic assay results at Starlight where the link-lode continues to deliver high gold grades,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“Drilling continues to extend the lode which is now defined over a strike of more than 100 metres and remains open to the west and down dip.

“Further drilling is expected to continue to extend the high-grade mineralisation.

“Starlight also remains open near surface and the confirmation of multiple individual lodes within this link position will enhance the upside potential and the economics of this new discovery.”

Musgrave considers the identification of the high-grade Starlight Link-Lode structure to hold some significance, being of the opinion that it has the potential to add shallow, high-grade gold ounces to the resource.

The company believes it is possible that other linking structures may be present within the region which will open a large new search space for exploration and increase the probability of growing the resource base.

Following minor delays in assaying, the company has further drilling planned for May assuming no exploration drilling restrictions in relation to the COVID-19 pandemic are in place at this time.

This will be completed together with a diamond drilling program ahead of a resource update for Break of Day that is scheduled for Q3 2020.