Gascoyne Resources Confirms Sly Fox Discovery

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THE DRILL SERGEANT: Gascoyne Resources (ASX: GCY) received results from the first round of RC drilling at the Sly Fox prospect, within the company’s 100 per cent-owned Dalgaranga gold project in Western Australia.

Gascoyne Resources claimed the results have confirmed Sly Fox to be a sizeable gold discovery, situated less than two kilometres from the proposed Dalgaranga mill site.

Highlights from the latest drilling include:

26 metres at 1.8 grams per tonne gold from 36m, including 15m at 2.4g/t gold;

29m at 1.1 g/t gold from 60m, including 6m at 1.5 g/t gold;

12m at 1.1 g/t gold from 83m;

8m at 1.6 g/t gold from 23m; and

11m at 1.2 g/t gold from 49m.

Gascoyne explained the recent drilling followed initial aircore drilling results it in December 2016, which intersected very near surface downhole thicknesses of gold mineralisation.

“Follow up RC drilling has just been completed beneath these first pass aircore intersections, and assay results have been received for eight of the first 13 RC holes confirming this new gold discovery,” Gascoyne Resources said in its ASX announcement.

“Drilling has confirmed broad zones of coherent gold mineralisation intersected over an initial strike length of greater than 200 metres, remaining completely open along strike and at depth.”

The Dalgaranga gold project contains a Measured, Indicated and Inferred Resource of 25.7 million tonnes at 1.4g/t gold for 1.12 million ounces of contained gold including Proved and Probable Ore Reserve of 552,000 ounces of gold.

Email: admin@gascoyneresources.com.au

Website: www.gascoyneresources.com.au

Peel Mining Intersects High-Grades at Wagga Tank

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THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported results from drilling recently carried out at the company’s 100 per cent- owned Wagga Tank project near Cobar in western New South Wales.

Peel Mining indicated the drilling had returned highly encouraging intercepts, which the com[any interpreted to demonstrate the presence of additional high-grade base and precious metal mineralisation.

The company said the results reported come from its maiden drilling program at Wagga Tank, which has been designed to confirm the presence of high-grade base and precious metal mineralisation originally identified in the 1970s and 1980s.

To date, Peel has completed 18 drillholes with at least seven drillholes requiring extensions.

Highlights from the latest drilling results include:

WTRC003
27 metres at 10 per cent zinc, 6.41 per cent lead, 89 grams per tonne silver, 0.42g/t gold, 0.21 per cent copper from 240m (end of hole), including 10m at 19.39 per cent zinc, 12.35 per cent lead, 171g/t silver, 0.67g/t gold, 0.30 per cent copper from 253m; and

WTRC017
16m at 3.27g/t gold, 0.35 per cent copper, 1.1 per cent zinc, 0.57 per cent lead, 12g/t silver from 226m, including 10m at 4.27g/t gold, 0.37 per cent copper, 0.88 per cent zinc, 0.52 per cent lead, 13g/t silver from 228m, and;

13m at 3.34g/t gold, 0.83 per cent copper, 0.77 per cent zinc, 0.28 per cent lead, 20g/t silver from 299m, including 6m at 6.9g/t gold, 1.28 per cent copper, 0.62 per cent zinc, 0.21 per cent lead, 29g/t silver from 300m.

“Peel is encouraged by results to date, with confirmation of very high-grade zinc-lead-silver rich massive sulphide style mineralisation, and strong gold-copper mineralisation, at relatively shallow depths,” Peel Mining said in the company’s ASX announcement.

“Whilst further drilling is required, Peel believes that the intersection of several strong gold-copper intervals (as seen in WTRC011, WTRC013 and WTRC017) possibly represents a previously unrecognised feeder structure to the historically reported oxide gold mineralisation.

“Notwithstanding the required drilling of the oxide gold zone; the strong gold-copper intervals intersected by Peel are open down-dip and along strike and require follow-up drilling beyond the completion of Peel’s maiden 18-drillhole program.”

Email: info@peelmining.com.au

Website: www.peelmining.com.au

St George Mining Outlines 2017 Gold Exploration Program

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) informed the market of its 2017 gold exploration drilling intentions at the company’s 100 per cent-owned East Laverton project in Western Australia.

St George Mining explained its 2016 gold drill program at East Laverton was focused on the Ascalon and Bristol gold prospects.

The results from this program identified potential for gold mineralisation at and around these prospects, and subsequently generated a number of targets for follow-up drilling in 2017.

St George engaged Dr Walter Witt to review both the broader gold potential at East Laverton and to complete detailed assessments of the numerous gold targets at the project.

The company said Dr Witt’s technical review confirmed strong gold potential at East Laverton, and prioritised the multiple targets for exploration.

A reverse circulation (RC) drill program will commence at East Laverton later this month and will initially focus on the highest rated targets in the Stella Range Belt, which are at Desert Dragon, Cambridge and Cambridge North.

“Reconnaissance exploration by St George has recognised the significant gold potential at East Laverton,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We are pleased to see this prospectivity confirmed by one of Western Australia’s leading gold experts.

“We will systematically progress gold exploration in 2017, working through the pipeline of attractive targets.

“With drilling due to start this month at both Mt Alexander and at East Laverton, we are entering a very exciting period for St George.”

Website: www.stgm.com.au

Source: Company announcement

Chalice Gold Mines Commences East Cadillac Drilling

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THE DRILL SERGEANT: Chalice Gold Mines (ASX: CHN) has commenced a maiden diamond drilling program at the company’s East Cadillac gold project, located in Quebec, Canada.

Chalice Gold Mines said the drilling will be targeting along strike of the Nordeau West gold deposit, where it recently reported an updated Mineral Resource estimate.

The company explained the maiden drill program forms part of an expanded exploration program at the East Cadillac project over the upcoming Spring/Summer field season that will include exploration activities ramping up on several fronts.

The Nordeau West extension target is a potential strike continuation of the Nordeau West deposit, where it is interpreted to trend towards the 5M structure reported by neighbour Cartier Resources on its Chimo gold project.

Chalice’s project boundary is 160 metres away from the closest drill-hole intersection reported by Cartier Resources.

Chalice intends testing the Nordeau West extension target with three drill holes to 200m depth (600m of drilling) to test the interpreted extension of the 5M structure onto its holdings, as well as other prospective structures associated with the hangingwall and footwall contacts of the Piche Volcanics.

One drill hole (200m) will test the Nordeau West plunge target and an additional drill hole (200m) will test a shallow up-dip projection of Nordeau West which has not been tested to date.

Drilling will also test an area of strong hydrothermal alteration and associated low-grade gold mineralisation within the Piche Volcanics between the Nordeau West and Nordeau East gold deposits known as the Nordeau Central target.

Drilling will be conducted on two-250m spaced drill sections with holes to 200m depth (800m drilling) with at least one drill hole on each section designed to test the southern (footwall) contact of the Piche Volcanics, which is a favourable contact for gold mineralisation.

A single 200m drill-hole is proposed to follow-up on a potential east plunge extension of the Nordeau East deposit.

Chalice has undertaken additional claim staking for a total of 50.15 square kilometres contiguous with the southern margin of the East Cadillac gold project.

The newly expanded East Cadillac gold project now comprises a total of 107.4sqkm.

“Our exploration team has identified high priority targets for initial drill testing as we kick off what is shaping up as a very busy summer field season on the East Cadillac gold project,” Chalice Gold Mines managing director Tim Goyder said in the company’s announcement to the Australian Securities Exchange.

“Our coordinated and systematic approach to exploration, drawing on the latest techniques and methodologies, is delivering encouraging results and helping to unlock the potential of what remains an under-explored area of the Larder Lake-Cadillac Fault.”

Email: info@chalicegold.com

Website: www.chalicegold.com

Sheffield Resources Ilmenite Tests Exceed Expectations

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THE DRILL SERGEANT: Sheffield Resources (ASX: SFX) has completed Low Temperature Roast (LTR) optimisation test work as part of a Bankable Feasibility Study (BFS) being carried out on the company’s 100 per cent-owned Thunderbird mineral sands project, located near Derby in northern Western Australia.

Sheffield Resources said the test work had been successful in optimising LTR settings to deliver a product likely to exceed premium specifications for the large Chinese market and increase marketability in the broader global market.

The company said the results follow recent marketing and offtake discussions in Asia which confirmed Thunderbird LTR ilmenite as higher grade (56 to 58 per cent titanium dioxide [TiO2]) and lower in key impurities than existing African and Australian ilmenites imported to China.

Sheffield explained the recent test work achieved premium specifications for the Chinese sulfate pigment market by generating an ilmenite product with iron III oxide (Fe2O3) levels below 13 per cent, whilst maintaining high acid solubility and reactivity.

“The Thunderbird ilmenite product is now at the top end of the quality spectrum and will compete with all global ilmenites due to its high grade, low impurities and high reactivity,” Sheffield Resources managing director Bruce McFadzean said in the company’s announcement to the Australian Securities Exchange.

“Results demonstrate the flexibility of Sheffield’s ilmenite upgrading process allowing premium products to be tailored to a broader range of customers.

“Thunderbird ilmenite will be one of the highest grade sulfate feedstocks available globally and will likely displace other lower quality ilmenites in the market.

“Offtake discussions have progressed with leading global ilmenite and zircon consumers.

“Further ilmenite samples will be dispatched over the coming weeks to advance those discussions.

“We continue to progress discussions in parallel with completion of the BFS and the evaluation of funding options and potential partnering opportunities.

“We are pleased that improved market conditions for mineral sands are emerging, particularly for sulfate ilmenite, with prices rising by 50 per cent over the past 12 months.

“Zircon prices have also improved over this period as mines have closed and global inventories have begun to unwind.”

Email: info@sheffieldresources.com.au

Website: www.sheffieldreosurces.com.au

Tyranna Resources kicks off Western Gawler Craton JV Drill Program

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THE DRILL SERGEANT: Tyranna Resources (ASX: TYX) announced the start of a Phase 3 exploration campaign has started with drillers mobilised at the Typhoon gold prospect with shallow calcrete drilling underway at the Greenewood – Mainwood gold prospects in South Australia.

Tyranna Resources is manager of the Western Gawler Craton Joint Venture, which includes WPG Resources (ASX: WPG) and Coombedown Resources Pty Ltd.

Tyranna is sole funding the exploration program for the first half of the 2017 calendar year, consolidating a 71 per cent interest in the JV based on past exploration expenditure it has previously sole funded.

The company said the Typhoon gold prospect, located 35 kilometres from the Challenger gold mine, will be drilled for the first time since Tyranna has been exploring at Jumbuck having just received access clearance.

The Monsoon gold prospect, located 1.5km to the east of Typhoon will be next in line and will be drilled after the drill rig finishes at Typhoon.

“The most exciting feature about the Monsoon gold prospect is an interpreted fold structure which is untested in parts,” Tyranna Resources said in its ASX announcement.

“At the Challenger gold mine, the hinges of the fold structure (fold hinge) at the M1 shoot hosts bonanza gold grades as this is understood to be an accumulation zone.”

The Black Knight gold prospect, located 37km south of Challenger, is in line for drilling after Monsoon.

The program will follow up new and un-drilled gold in calcrete anomalies discovered by Tyranna’s calcrete sampling program.

“After the drill rig has completed the program at the southern Jumbuck prospects, drilling will focus on the northern Jumbuck prospects – Greenewood and Campfire Bore,” Tyranna explained.

“Calcrete sampling has already commenced at the Greenewood/Campfire Bore project area and this type of sampling is considered to be a first pass project generation exercise to be followed up with RC drilling to be completed in the second half of CY2017.”

Email: info@tyrannaresources.com

Website: www.tyrannaresources.com

Oro Verde Drilling at Topacio Gold Project

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THE DRILL SERGEANT: Oro Verde (ASX: OVL) has commenced a diamond drilling program at the company’s Topacio gold project, located in southeastern Nicaragua.

Oro Verde said the initial program entails seven diamond holes incorporating approximately 1,650 metres and will focus on key locations identified along the Rebeca Vein, where the company has interpreted a strike length of at least three kilometres it considers to have potential to contain a multi-million-ounce gold deposit.

The company explained the drilling is part of the second year of a Farm-In Agreement with Newcrest International Pty Ltd, a wholly-owned subsidiary of Newcrest Mining (ASX: NCM) that was executed at the end of November 2015.

“We are extremely excited to have commenced our first drilling program in Nicaragua,” Oro Verde managing director Trevor Woolfe said in the company’s announcement to the Australian Securities Exchange.

This is the culmination of a detailed exploration program that identified a number of high-quality targets.

“Drilling of the Rebeca Vein will test the potential for a new, large, low sulphidation epithermal gold system.”

Website: www.oroverde.com.au

Kin Mining Hits Bonanza Gold Strike at East Lynne Prospect

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THE DRILL SERGEANT: Kin Mining (ASX: KIN) announced high gold grades from surface from exploration drill testing at the East Lynne prospect, located approximately 300m north-east of the company’s Rangoon Mineral Resource in Western Australia.

Kin mining revealed the Reverse Circulation (RC) drilling initially recorded an assay result of 3 metres at 209 grams per tonne gold from surface in hole EL17RC003, including 1m at 551g/t gold.

The high-grades encountered encouraged Kin to have several laboratory repeats of the sample undertaken, which produced an average grade of the interval of 3m at 132.3g/t gold from surface.

To support these results, Kin had an independent re-split and re-assay of the original drill sample carried out, which confirmed the high-grade results, reporting 3m at 23.5g/t gold, including 1m at 55.2g/t gold from surface. 

Just to make sure, Kin also had samples processed via screen fire assay, which reported a grade of 577g/t gold for the original sample of EL17RC003 from surface to one metre.

The field re-split of this interval was also subject to a screen fire assay, returning a grade of 622g/t gold.

Kin took the results of the screen fire assays to suggest the presence of coarse nuggety gold in the sample.

During a subsequent site visit Kin management, a portion of the high-grade sample was sieved and panned to assess the coarse gold component.

The results from one sieve (approximately 0.5kg of material) taken from the surface to one metre sample of hole EL17RC003, produced a number of gold nuggets, weighing 1.7 grams in total, along with specimen stone of gold in quartz.

When panned, the fines returned an impressive tail of gold.

“I have been exploring the Leonora district for over 30 years and have panned a lot of material, and this is the best gold tail I have seen in a very long time,” Kin Mining chairman Trevor Dixon said in the company’s announcement to the Australian Securities Exchange.

“The presence of such abundant coarse gold from surface at the East Lynne prospect presents an exciting opportunity for a significant new discovery.

“We are already planning further work to assess East Lynne’s potential.”

Historic mining at the East Lynne prospect recorded production of 1,242 tonnes at 47.5g/t gold between 1897-1906, and in 1942, for a total of 1,896 ounces of gold.

Despite this history of high-grade production, no Mineral Resource is defined at East Lynne, as previous drilling is sparse and shallow in nature.

Kin Mining identified East Lynne as a walk-up drill target, and took the opportunity to conduct a four-hole scout drilling program at the prospect while a drill rig was in the area.

This latest high-grade result was located on strike of the historic East Lynne workings, between the main shaft (85m depth) and other workings, which extend for approximately 150m.

Email: info@kinmining.com.au

Website: www.kinmining.com.au

Alliance Resources Returns to Wilcherry to Complete HEM Survey

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THE DRILL SERGEANT: Alliance Resources (ASX: AGS) announced the recommencement of a regional helicopter-borne electromagnetic survey (HEM) at the Wilcherry project in South Australia.

Alliance Resources holds a 51 per cent interest in the Wilcherry project in a Joint Venture with Tyranna Resources (ASX: TYX).

Alliance explained the HEM survey is 86 per cent complete, however, had cause for pause in December 2016 due to the aircraft being required for extended firefighting duties in New South Wales.

The company said the JV had been encouraged by the results to date with the survey identifying many late time conductors, which has been interpreted to be a potential indication of massive sulphide mineralisation.

This includes the identification of two large conductors, the first at the Zealous tin prospect where a 1.7-kilometre-long conductor was identified, 450 metres to the northwest of previous drilling at Zealous.

The second is at the Telephone Dam silver-lead-zinc prospect where a 3km long conductor was identified.

Ground moving loop electromagnetic (MLEM) surveys have been carried out to follow up the HEM conductors at the Zealous and Telephone Dam prospects in order to better define the location of conductors for drill testing.

“The MLEM data is currently being modelled by a geophysicist for the purpose of optimising drilling targets,” Alliance Resources said in its ASX announcement.

“A further announcement will be made when this work is complete, including timing of the proposed drilling program.”

Email: info@allianceresources.com.au

Website: www.allianceresources.com.au

Corazon Mining Encouraged by Mount Gilmore Metallurgy Results

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THE DRILL SERGEANT: Corazon Mining (ASX: CZN) has carried out preliminary metallurgical testwork on samples from the company’s Mount Gilmore project in New South Wales.

Corazon Mining said the work had delivered excellent results with simple flotation testing yielding a recovery of 92.2 per cent for cobalt, 89 per cent for copper and 75.5 per cent for gold, in a total concentrate with 11.1 per cent mass recovery.

Corazon explained the testwork was conducted on a representative sample composited from reverse circulation (RC) chips from a 2016 drilling program, which intersected mineralisation from near surface to depths of up to 151 metres.

The composite sample contained 0.84 per cent cobalt, 0.21 per cent copper and 0.47 grams per tonne gold.

Noting these to be first pass results, Corazon said it expected better results will be achieved with optimisation.

It put this confidence down to the fine nature of the material, which means samples from RC chips are typically difficult to control during flotation and it can be expected that the results would improve for testwork carried out on core or rock samples.

“Initial sighter-gravity concentration testwork indicated that a high-grade cobalt concentrate can be obtained from a small fraction of the feed mass,” Corazon Mining said in its ASX announcement.

“The results suggest that a 12.2 per cent cobalt grade concentrate can be produced from only 1.31 per cent of the initial mass.

“This has the potential to significantly reduce downstream equipment size and reagent consumption, improving both the Project’s CAPEX and OPEX.”

Corazon said the results have confirmed its mineralogy expectations – that cobalt is present as cobaltite, copper is present as chalcopyrite and the gold is predominantly associated with the sulphide minerals.

“The similar nature of the sulphide minerals, together with the gold association, has the potential to simplify the beneficiation process by the production of a bulk concentrate,” the company said.

Email: info@corazon.com.au

Website: www.corazon.com.au