THE DRILL SERGEANT: Xanadu Mines (ASX: XAM) updated the market on the progress of ongoing exploration activities at the company’s Kharmagtai project in the South Gobi region of Mongolia.

Xanadu Mines said the drilling is targeting discovery of additional near-surface porphyry copper-gold deposits undercover while testing for continuity of mineralisation below the current resources within, what it described as being a, ‘largely under-explored porphyry copper-gold district’.

The company claimed that deep drilling at Altan Tolgoi has confirmed continuous high-grade mineralisation at depth, with results including:

KHDDH394
646 metres at 0.51 per cent copper and 0.87 grams per tonne gold (1.06% copper equivalent [CuEq]) from 16m, including 64m at 1.06 per cent copper and 3.15g/t gold (3.08% CuEq) from 18m; and

KHDDH394A
385m at 0.52 per cent copper and 0.6g/t gold (0.9% CuEq) from 351m.

“The intersection of high-grade breccia mineralisation at depth demonstrates the potential size and scale of the Kharmagtai mineralised system,” Xanadu Mines managing director and chief executive officer Dr Andrew Stewart said in the company’s announcement to the Australian Securities Exchange.

“We are yet to define the extents of the Altan Tolgoi porphyry system, and further drilling is planned below the zone of breccia hosted chalcopyrite-gold mineralisation to test whether a higher-grade bornite core is in the root zones of this large breccia system.

“High-grade mineralisation may be manifested as bornite-goldcemented breccia or as bornite-gold stockwork mineralisation in the causative intrusive complex at Kharmagtai.”

Xanadu claimed the mineralisation identified within the resource shell by the drilling to be better than, or similar to, the project’s current resource estimate.

The high-grade breccia hosted chalcopyrite‐gold mineralisation, as identified by the current drilling results, remains open at depth.

Xanadu said widespread near-surface copper and gold mineralisation has been intersected in the bedrock drilling while six potential porphyry clusters have also been identified, containing 19 individual porphyry and epithermal targets.

Further drilling at the Altan Burged prospect intersected additional and substantial broad zones of near-surface gold-rich porphyry mineralisation, including:

KHDDH401
20m at 1.73g/t gold and 0.18 per cent copper from 39m.

Xanadu said drilling at Altan Burged has continued to define the size and shape of the newly-discovered porphyry centre.

Seven diamond drill holes have been completed, which have defined a large scale porphyry system, approximately 250 by 150 metres wide.

Email: info@xanadumines.com

Website: www.xanadumines.com

THE DRILL SERGEANT: Cobalt Blue Holdings (ASX: COB) declared it had been encouraged by assay results from a drilling program it commenced in November 2016 at the company’s Thackaringa project near Broken Hill, New South Wales.

Cobalt Blue explained the drilling had been carried out across three prospect areas, Railway, Pyrite Hill and Big Hill and that the results reinforce the cobalt and pyrite development opportunity at Thackaringa.

The drilling was commenced by Cobalt Blue’s parent company, Broken Hill Prospecting (ASX: BPL) which retains a participating interest in the project.

A total Inferred Mineral Resource of 33.1 million tonnes at 833ppm cobalt (at a 500ppm Co cut-off) has previously been estimated at the Thackaringa project.

Results released by Cobalt Blue were achieved at the Railway and Pyrite Hill deposits and include:

At Railway

16DM05
48 metres at 1,045ppm cobalt from 30m;

16DM06
42m at 1,615ppm cobalt from 28m;

16DM07
25m at 1,232 ppm cobalt from 35m and 26m at 1,456 ppm cobalt from 71m; and

16DM08
4m at 1,301ppm cobalt from 57m and 19m at 1,221ppm cobalt from 76m.

At Pyrite Hill

16DM01
52m at 840ppm cobalt from 95m, Including 7m at 1,111ppm cobalt from 96m; and

16DM02
23m at 1,392ppm cobalt from 127m.

“Mineralisation at the three prospects has a combined strike length of 4.5 kilometres with widths varying from 25 metres to 100 metres,” Cobalt Blue Holdings said in its ASX announcement.

“The increased thickness is typically due to the extensive development of tight isoclinal folding within the pyritic horizon.”

Cobalt Blue explained the 2016 drilling program, of eight fully-cored diamond drill holes at the three locations, was undertaken primarily to provide sufficient material to undertake meaningful metallurgical test work.

“By twinning previous RC holes the JV was able to confirm the tenor of mineralisation and compare the assays and sampling protocols for historical RC percussion drilling vs diamond drilling,” the company said.

“The program is designed to extend the drilling coverage and improve drilling density in support of future Mineral Resource estimations, replace some of the historical drilling for QA/QC purposes and provide material for further metallurgical testwork.”

Email: info@cobaltblueholdings.com

Website: www.cobaltblueholdings.com

THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) received results for the latest drilling carried out at the Break of Day prospect on the Cue project in the Murchison region of Western Australia.

Musgrave Minerals is working up the Cue project in a Farm-In and Joint Venture Agreement with Silver Lake Resources (ASX: SLR).

Musgrave has met the Stage 1 Earn-In holding a 60 per cent JV interest in the project and has elected to progress to Stage 2 and increase its equity to 80 per cent.

Recent results include:

17MORC003
1 metre at 117.4 grams per tonne gold from 173m down hole.

Musgrave claimed this intersection extends the high-grade gold mineralisation on the Twilight Lode a further 25m south on section 13275mN.

17MORC006
2m @ 16.2g/t Au from 120m down hole

Musgrave explained this hole was drilled on section 13350mN.

“This is another positive result with the high-grade gold in 17MORC003 extending the Twilight Lode at Break of Day a further 25 metres south,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.

“The mineralisation is still open to the south and down plunge which creates an opportunity for Musgrave to continue to extend this high-grade gold mineralisation to grow the resource.”

The JV is waiting to receive assays for an additional 38 drill holes that have been drilled at Break of Day and Lena.

It believes there is potential to continue to improve the grade and increase the gold resources at Lena and Break of Day with further drilling.

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

THE DRILL SERGEANT: Investigator Resources (ASX: IVR) commenced drilling at the Nankivel copper-gold porphyry target, located along a connecting structure four kilometres from the company’s 33 million ounce Paris silver project on the Eyre Peninsula of South Australia.

Investigator Resources said the new campaign follows assessment of prior drilling and an Induced Polarisation (IP) geophysical survey undertaken during late 2016.

From this work a large and undrilled 800 metre by 1.5km demagnetised area was interpreted by Investigator to be a potentially copper-mineralised centre to the Nankivel porphyry system.

Investigator indicated the first hole of the campaign to be underway and is scheduled to be followed by a second hole positioned 800m to the southeast of the first.

Both inclined holes will test moderate IP chargeability anomalies within the central target area while drill holes 3 and 4 will be positioned according to the results of the first two holes.

“The drilling is also an important test of the concept for new styles of porphyry copper-gold deposits in South Australia that are in the same geological province and of the same geological age as the giant Olympic Dam iron oxide copper-gold deposit,” Investigator Resources said in its ASX announcement.

Email: info@investres.com.au

Website: www.investres.com.au

THE DRILL SERGEANT: Kin Mining (ASX: KIN) reported the intersection of multiple intervals of shallow high-grade gold mineralisation at the Fiona prospect, located within the Cardinia Mining Centre at the company’s Leonora gold project (LGP) in Western Australia.

Kin Mining claimed the mineralisation was intersected near-surface and considers the results to highlight the potential for additional gold to be discovered outside the current known Mineral Resources at Cardinia.

With the results in hand, Kin is planning further drilling at Fiona with a view to including the prospect in the LGP Feasibility Study, scheduled for mid-year completion.

Highlights of the recent drilling include:

HE17RC028
8 metres at 51.4 grams per tonne gold from 10m, including 4m at 101g/t gold – including 1m at 283g/t gold;

HE17RC026
9m at 6.1g/t gold from 21m, including 3m at 12g/t gold;

HE17RC031
4m at 7.4g/t gold from 10m, including 3m at 9.5g/t gold;

HE17RC033
10m at 3.6g/t gold from 25m, and 12m at 1.4g/t gold from 38m to end of hole;

HE17RC032
4m at 4.1g/t gold from 24m, including 2m at 6g/t gold;

HE17RC038
11m at 1.8g/t gold from 13m, including 2m at 4.6g/t gold; and

HE17RC040
14m at 1.3g/t gold from surface, including 4m at 2.8g/t gold.

“Such shallow high-grade results at the newly defined Fiona prospect show there are still significant discoveries to be made at the LGP,” Kin Mining managing director Don Harper said in the company’s announcement to the Australian Securities Exchange.

“The fact that these intersections are outside our existing resources and mine plan clearly demonstrates significant upside potential.

“It is highly encouraging that the new Fiona prospect remains open in all directions.”

Kin Mining explained the recent drilling has been undertaken to follow up historic gold intersections in an area along strike to the north of the Helens North Resource, which currently stands at 760,000 tonne at 1.2g/t gold for 29,000 ounces of gold.

A total of sixteen reverse circulation (RC) drill holes were completed at Fiona.

Email: info@kinmining.com.au

Website: www.kinmining.com.au