De Grey Mining Releases Further Hemi Hits

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THE DRILL SERGEANT: De Grey Mining (ASX: DEG) kept the good news rolling with further results from follow up aircore drilling at the newly discovered Hemi prospect within the company’s Pilbara gold project located just outside Port Hedland in Western Australia.

De Grey Mininig said the latest drill results correlate very well with previously reported gold mineralisation, confirming a substantial steeply south dipping zone of high-grade gold mineralisation.

This mineralisation is defined as 30 metres wide (apparent thickness), and extends to 130m below surface, remaining open at depth and along strike.

The weighted average grade of all results within the mineralised envelope on Section A is 5.2 grams per tonne.

New results on Section A include:

BWAC320
44 metres at 5.1 grams per tonne gold from 40m, including 13m at 8.8g/t gold; and

BWAC321
46m at 6.6g/t gold from 92m, including 21m at 8.3g/t gold;

The company indicated the above results correlate strongly with its results announced earlier this month of:

BWAC315
24m at 7.5g/t gold from 126m, including 18m at 8.6g/t gold (EOH);

BWAC309
49m at 3.7g/t gold from 65m, including 18m at 6.6g/t gold;

BWAC245
36m at 4g/t gold from 39m, including 11m at 8.9g/t gold.

“These are stunning results – high grade, thick and consistent,” De Grey Mining technical director Andy Beckwith said in the company’s announcement to the Australian Securities Exchange.

“Clearly, drilling below this zone and the mineralisation on Section B are two key high priority RC targets.

“We are looking forward to receiving the remaining aircore drilling results and re-commencing drilling activities now the cyclone has dissipated.”

 

Email: admin@degreymining.com.au

Web: www.degreymining.com.au

 

Middle Island Drilling at Sandstone to Improve Mill Recommissioning Chances

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THE DRILL SERGEANT: Middle Island Resources (ASX: MDI) is set to commence a substantial multi-rig, reverse circulation (RC) drilling campaign of over 1200 metres within four kilometres of the company’s 100 per cent-owned gold processing plant at the Sandstone gold project in central Western Australia.

Middle Island said the drilling is being carried out to confirm, expand and/or test some 14 open pit gold targets in order to increase and/or upgrade existing open pit Mineral Resources.

This is expected to be finished prior to the completion of an updated pre-feasibility study (PFS) in the June quarter and revisiting a project recommissioning decision.

“Commencing 2020 with approximately $2.8 million in cash (at bank or fully underwritten) provides a rare opportunity to realise a long-held ambition to deploy significant drilling metres across a multitude of open pit gold targets (and deposits) that have remained untested or poorly tested due to prior funding constraints,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“The planned multi-phase drilling campaign has the potential to add significant open pit Mineral Resources to the Sandstone gold project.

“With the Australian dollar gold price near record levels, any additional Mineral Resources identified during the drilling campaign should significantly enhance the outcome of the current Sandstone updated PFS, which is planned to be completed in the June quarter of 2020, prior to reviewing a recommissioning decision.”

The company completed an initial aircore drilling program, comprising 200 holes late in January, in advance of the RC drilling to determine the limits of previously defined gold anomalies and maiden palaeosurface drilling of one new target.

At this stage, the aircore drilling results are pending, but Middle Island anticipates they will be returned in sufficient time to refine planned RC drilling of the palaeo-surface gold geochemical targets.

The company explained the aircore and RC drilling programs are the first of a substantial multi-phase drilling campaign, the progressive results of which will be reported on a continuous basis.

If required, additional RC and diamond drilling programs are planned for late in the March quarter to upgrade any defined Inferred Mineral Resources to an Indicated classification, and confirm oxide bulk densities, metallurgical and geotechnical parameters, and waste rock characterisation for a planned tailings facility expansion.

 

Email: info@middleisland.com.au

Web: www.middleisland.com.au

 

Red 5 Increases Darlot Reserve and Resource Estimates

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THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.

Red 5 has increased the contained ounces at the Darlot mine with the updated Proven and Probable Ore Reserve for the mine now totalling 2.6 million tonnes at 3.3 grams per tonne gold for 275,000 ounces of contained gold.

This represents a 26 per cent increase in contained ounces for Darlot since 30 June 2019, net of mining depletion of 37,738 ounces to 31 December 2019.

“Darlot is an exceptional gold system and our ongoing Resource and Reserve development programs are delivering growth across multiple fronts,” Red 5 managing director Mark Williams said in the company’s announcement to the Australian Securities Exchange.

“This announcement is part of a number of workstreams currently underway to progress Red 5’s Darlot Hub Mining Strategy, which is aimed at establishing a five to ten year mine life at Darlot, as a stand-alone mining operation, complementing the proposed development of King of the Hills and establishing two growth pillars of a leading mid-tier Australian gold producer.

“When Red 5 purchased the Darlot Gold Mine in 2017, the acquisition included a significant high-grade non-JORC mineral endowment that required review, confirmation and design by our Geology and Mining Engineering team before it could be included within our Resource and Reserve estimates.”

Red 5 explained that the increase in the Reserve base is due to it having completed mining studies to confirm suitable mining methods to extract gold mineralisation within the Centenary orebody along with areas that had previously been classified as sterilised and/or not economical.

“This includes areas deemed by the previous owner to have been sterilised, together with additional areas – including several oxide open pit deposits – that were modelled but never upgraded to JORC compliance,” Williams said.

“Red 5 has been working to convert these areas to Resource and Reserve status, with the work completed to date, together with extensional drilling at Lords Felsics, increasing our Reserve base by 26 per cent to 275,000 ounces and our Resource base by 16 per cent to 1.2 million ounces since the previous estimates reported as at 30 June 2019, net of the ounces produced up to 31 December 2019.”

The Ore Reserve is based on an updated Measured, Indicated and Inferred Mineral Resource for the Darlot gold mine of 10.8 million tonnes at 3.5g/t gold for 1,203,900 ounces of contained gold – representing a 16 per cent increase in contained ounces since the previous Resource estimate the company reported as at 30 June 2019 (net of mining depletion).

This Total Resource figure includes an updated underground Mineral Resource of 8.1 million tonnes at 4.3g/t gold for 1,122,000 ounces of contained gold (at a 2g/t gold cut-off grade), and a maiden open pit Mineral Resource of 2.7 million tonnes at 0.9g/t gold for 81,600 ounces of contained gold (at a 0.5g/t gold cut-off grade).

“Importantly, we also see opportunities for further growth,” Williams continued.

“We have recently increased our budget for Darlot expansion programs in FY20, committing an additional $2.3 million for Resource drilling as well as $2 million to accelerate underground mine development to access new mining areas and open up new underground exploration platforms.

“This brings our total geology budget for Darlot to $10.1 million for current financial year.

“Work programs include 12,500 metres of underground drilling and 6,000 metres of surface drilling at the Darlot mine, as well as an 11,000 metres regional drilling program, with processing studies also underway with the goal of extending our Reserve base within trucking distance of the Darlot mill.

“With the Final Feasibility Study well advanced for the establishment of a stand-alone mining and processing operation at King of the Hills, this would potentially provide Red 5 with two high-quality, long-life mining hubs in the world-class Eastern Goldfields region of Western Australia.”

 

Email: info@red5limited.com

Web: www.red5limited.com

 

Magmatic Resources Grows Lady Ilse Gold Target

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THE DRILL SERGEANT: Magmatic Resources (ASX: MAG) informed of the receipt of the remaining three of four lines from a recent MIMDAS geophysical survey undertaken at the Lady Ilse prospect within the company’s 100 per cent-owned Wellington North project in New South Wales.

Magmatic Resources reported that its interpretation of the MIMDAS data indicates the Lady Ilse target has grown substantially in relation to the previous interpretation based on the first line, and remains open to the south.

“The results, in combination with the wide zone of gold and porphyry pathfinder anomalism (tellurium-bismuth-arsenic) associated with upper level pyrite-rich porphyry alteration suggest the potential for the preservation of a Cadia East-style porphyry system at Lady Ilse,” Magmatic Resources said in its ASX announcement.

Magmatic considers the Lady Ilse prospect exhibits the same characteristics as Alkane’s nearby Boda porphyry discovery at the equivalent stage of exploration.

The company believes the much wider zone of upper level pyrite-rich porphyry alteration defined at Lady Ilse represents a larger scale porphyry opportunity than Boda.

 

Email: info@magmaticresources.com

Web: www.magmaticresources.com

 

Azure Minerals Hits Impressive Gold Infilling Loma Bonita

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THE DRILL SERGEANT: Azure Minerals (ASX: AZS) announced first assay results from mineral resource infill and extension drilling of the Loma Bonita gold-silver deposit, located at the company’s 100 per cent-owned Alacrán project in Sonora, Mexico.

Azure Minerals encountered some hefty intersections of gold mineralisation over substantial widths commencing close to surface with highlights including:

Mineral Resource infill drilling:

MDPC-143
126 metres at 2 grams per tonne gold from 1.5m, including 64.5m at 2.8g/t gold, including 34.5m at 3.9g/t gold.

Mineral Resource expansion drilling:

MDPC-141
36m at 1g/t gold from 12m.

To date the company has completed 10 Reverse Circulation (RC) holes, from which it has received gold, silver and base metal assays for the first six holes.

Azure’s previous exploration on Alacrán discovered the Mesa de Plata silver deposit and the adjacent Loma Bonita gold-silver deposit.

These two deposits contain total resources of:

Mesa de Plata:

10.5 million tonnes at 82g/t silver for 27.4 million ounces silver

This includes an at-surface high-grade resource of:

1.8 million tonnes at 275g/t silver for 15.5 million ounces silver

Loma Bonita:

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

“The Loma Bonita deposit, as defined by the current Mineral Resource, extends over 600 metres north-south, up to 200 metres east-west, and remains open to the north, east and south,” Azure Minerals said in its ASX announcement.

“Mineralisation starts at surface and in places the true width/thickness of the mineralised zone exceeds 100 metres.

“Resource infill drilling is being undertaken to improve definition of internal high-grade zones and obtain samples for additional metallurgical testwork, while resource expansion drilling is stepping out from the eastern resource boundary to increase the resource size.”

 

Web: www.azureminerals.com.au

 

Musgrave Minerals Commences Drilling on Lake Austin

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THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) reported the commencement of aircore drilling on Lake Austin within the company’s Cue gold project in the Murchison district of Western Australia.

Musgrave Minerals said the drilling is part of its $18 million Earn-in and Exploration Joint Venture with Evolution Mining (ASX: EVN).

The aircore drilling program will test four target areas and consist of 200 drill holes, taking approximately three months to complete with first assays expected in April.

“This regional geochemical exploration program is another important step to test the gold potential of this highly prospective area under the cover sediments of Lake Austin,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

Elsewhere, Musgrave Minerals is busy on the company’s 100 per cent-owned tenements.

The company is progressing towards delivering an anticipated Resource at the Lena deposit later in Q1 2020.

Reverse circulation drilling at Break of Day is testing Musgrave’s new ‘link-lode’ position with first assays expected in March 2020.

Reverse circulation drilling is also testing the new high-grade gold discovery at the Consols prospect, within the Mainland area, from which first assays expected in late March 2020.

 

Email: info@musgraveminerals.com.au

Web: www.musgraveminerals.com.au

 

Magnetic Resources Hits High-Grade Gold Adjacent to Hawks Nest Feeder Zone

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THE DRILL SERGEANT: Magnetic Resources (ASX: MAU) reported further results from a comprehensive 465 RC-hole program completed at the company’s Hawks Nest prospect, located near Laverton in Western Australia.

Magnetic Resources’ latest news heralds an intersection form RC hole MHNRC582 of:

4 metres at 49 grams per tonne gold from 108m.

The company explained that hole MHNRC582 was designed to test for the down plunge continuity of a thickened gold rich porphyry identified within hole MHNRC541 that intersected 70m at 0.49g/t gold from 13m.

The intersection from MHNRC582 is considered by the company as an exceptional high-grade result and as such is being further investigated with an additional 13 holes.

This hole also had some thicker intersections including:

20m at 0.67g/t gold from 52m; and

16m at 12.5g/t gold from 96m, which included the above mention intersection.

MHNRC582 is the last hole on the long section and Magnetic believes it bodes well for the continuation of thickened porphyry zone mineralisation further to the northeast where three deeper holes are planned.

“The discovery of a thick mineralised intrusive porphyry feeder zone up to 70 metres thick and an outstanding intersection of 16 metres at 12.5 grams per tonne from 96 metres, including 4 metres at 49 grams per tonne from 104m in MHNRC582 augers well for the potential northeast extension of this thickened mineralised zone to the northeast,” Magnetic Resources managing director George Sakalidis said in the company’s announcement to the Australian Securities Exchange.

“Also, further holes are planned to test the southwest extension where thickened porphyry also occurs.

“Our detailed 100 metres spaced ground magnetic survey also shows up the thickened porphyry zones and further interpretation is continuing.”

 

Web: www.magres.com.au

 

Pioneer Resources Intersects High-Grade Lithium at Pioneer Dome

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THE DRILL SERGEANT: Pioneer Resources (ASX: PIO) reported further results from a second drill program completed at the company’s 100 per cent-owned Pioneer Dome project in Western Australia.

Pioneer Resources focus for this round of drilling was the Dome North group of lithium prospects, where it previously discovered a suite of spodumene-bearing pegmatites.

Drilling consisted of a combination of resource drilling at the Cade Deposit and exploration drilling at five additional targets.

Of the five targets drill tested, two new mineralised pegmatites were intersected at the Davy and Cade South prospects.

Drilling at the Cade deposit encountered infill intersections within the Inferred Resource of 8.2 million tonnes at 1.23 per cent lithium oxide (Li2O), including:

PDRCD292
31.6 metres at 1.31 per cent Li2O from 72m;

PDRCD294
27.4m at 1.38 per cent Li2O from 131m;

PDRCD295
27.2m at 1.46 per cent Li2O from 209m, including 11m at 1.79 per cent Li2O;

PDRCD318
22.2m at 1.72 per cent Li2O from 128m;

PDRCD319
22.3m at 1.49 per cent Li2O from 199m.

At the Davy prospect a new zone of mineralisation was located approximately 1.4 kilometres west of the Cade deposit with results of:

PDRC325
9m at 1.31 per cent Li2O from 56m;

PDRC326
8m at 1.27 per cent Li2O from 26m;

PDRC324
22m at 1.44 per cent Li2O from 153m, including 10m at 1.75 per cent Li2O.

Pioneer believes the results highlight the potential to increase Mineral Resources in the Dome North Area, which are currently based only on the Cade deposit.

“In just two drilling programs we have demonstrated that the Dome North Area is highly prospective for spodumene mineralisation with excellent lithium grades and widths,” Pioneer Resources CEO Tim Spencer said in the company’s announcement to the Australian Securities Exchange.

“This represents a fantastic return for what was a modest but targeted drilling program undertaken prior to Christmas and there are clear opportunities to make further discoveries and increase Mineral Resources.

“We have appointed Primero to undertake first-pass metallurgical test work that will help us understand our options as we advance the project.

“The outcomes of that work along with further target identification will assist us in planning our next phase of drilling with a view to rapidly advancing what appears to be a substantial emerging lithium asset in a prime location in WA’s Eastern Goldfields.”

 

Email: pioneer@PIOresources.com.au

Web: www.pioresources.com.au

 

Matador Mining Increases Cape Ray Gold Resource

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THE DRILL SERGEANT: Matador Mining (ASX: MZZ) increased the Mineral Resource at the company’s Cape Ray gold project in Newfoundland, Canada.

Matador Mining delivered the increase on the back of drilling carried out at Cape Ray during 2019.

The Resource at the Cape Ray project increased by 18 per cent, growing to 16.6 million tonnes at 2.2 grams per tonne gold and 7g/t silver for 1.2 million ounces of gold and 3.9 million ounces of silver.

Just over half of this resource, 55 per cent, is classified in the Indicated category (650,000 ounces of gold at 2.9g/t gold)

Matador explained its major focus for the 2019 exploration program was at the Window Glass Hill deposit (WGH), which grew by 71 per cent to 230,000 ounces of gold (previously 134,000 ounces of gold).

The grade at WGH also increased by 34 per cent to 1.6g/t gold (previously 1.2g/t gold).

Drilling, structural mapping and high-grade rock chips samples taken by Matador have identified priority targets for the company’s 2020 exploration program at WGH.

Matador indicated the updated Mineral Resource will underpin an upcoming Scoping Study, which is scheduled for release in late March.

“Following the completion of the largest drill program at Cape Ray in more than 30 years, we are pleased to report the resource has grown to 1.2 million ounces of gold and 3.9 million ounces of silver,” Matador Mining executive director Keith Bowes said in the company’s announcement to the Australian Securities Exchange.

“Importantly, this growth has not been to the detriment of the resource grade, as the total average grade remains at just over 2.2 grams per tonne gold.

“Notably, at Window Glass Hill, which saw the most significant growth in resource size, the grade of this deposit also increased significantly by approximately 34 per cent.

“Window Glass Hill is our second largest deposit and will be an important part of the development plans going forward.

“It is also very pleasing to note that the discovery costs at Window Glass Hill of US$5 per ounce were very low and exceeded our expectations.

“Overall, total discovery costs, which included all greenfield drilling, were also very competitive at just US$12 per ounce.

“In addition to the increased resource, our regional exploration program has identified additional targets.

“Regional exploration is expected to form a more significant part of future exploration at Cape Ray.”

 

Email: info@matadormining.com.au

Web: www.matadormining.com.au

 

Golden Rim Identifies Multiple High-Grade Gold Structures

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THE DRILL SERGEANT: Golden Rim Resources (ASX: GMR) results for further rock chip samples and from geophysical data it collected as part of an ongoing exploration campaign at the company’s Kouri gold project in Burkina Faso.

Golden Rim Resources obtained assays for the additional 289 rock chip samples collected from the Margou and Gouéli permits that demonstrated high-grade gold results continue to cluster at the Kogodou prospect, which extends directly east of the project’s current 1.4 million ounce gold Mineral Resource for over 3.8 kilometres.

The best new results at the Kogodou Prospect include:

32.3 grams per tonne gold;
29.2g/t gold;
22.4g/t gold;
14.5g/t gold; and
11.7g/t gold.

“Preliminary ground magnetic data from the recently completed geophysical survey suggests the stronger gold mineralisation at the Kogodou prospect may be associated with a series of four major east-west-trending cross-structures,” Golden Rim Resources said in its ASX announcement.

“Results continue to confirm the potential for a major strike extension to the Mineral Resource to the east and the exceptional prospectivity of the previously unexplored Margou and Gouéli permits.”

Golden Rim reported the program also returned high-grade rock chip samples in two new areas located to the northeast of the Mineral Resource.

The first area is located approximately 12.5km from the Mineral Resource and returned a peak assay of 13g/t gold.

This zone consists of two parallel lines, sitting about 50m apart, of artisanal workings that both extend for 250m.

The second new zone is located approximately 18km northeast of the Mineral Resource and returned a peak assay of 24.4g/t gold.

This area has not been covered by the company’s recent ground geophysical survey.

“Although high-grade gold in rock chip samples have been obtained throughout the Kogodou prospect, most of the area has received no geochemical testing due to the sparsity of outcropping rocks,” Golden Rim explaned.

“To better define target areas for follow-up RC drilling a program of auger drilling, on a 200 metres by 50 metres pattern, is currently underway at the Kogodou prospect.”

 

Web: www.goldenrim.com.au