THE DRILL SERGEANT: Alloy Resources (ASX: AYR) notified the market of results from a recently completed RC drill program at the company’s Ophara project, located west of Broken Hill in New South Wales.

Alloy Resources explained the 12 hole RC drill program was designed to define the strike and depth potential of the known cobalt‐gold mineralisation at the Great Goulburn prospect.

The company said the results indicate the potential for widespread gold‐cobalt mineralisation within the Great Goulbourn project area.

The drilling demonstrated the mineralisation to be strongest where a quartz magnetite unit is intersected by sulphide-rich fluids.

There also appears to be quartz vein related mineralisation away from these units.

“Our interpretation has been greatly enhanced following this drill program,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“The results are telling us that we have a combination of strata‐bound mineralised quartz‐magnetite units, but also there are areas where mineralisation is more related to faults and quartz veins with sulphide.

“This combination is exciting as it is related to similar controls as seen at the Mutooroo deposit located 10 kilometres to the south west.”

A review of historical data by Alloy produced electromagnetic survey data from 1991 completed by BHP Minerals.

The Great Goulburn prospect is only one anomaly amongst numerous within the area.

There has been little or no drill testing of these other EM anomalies offering excellent targets for future exploration.

Email: info@alloyres.com

Website: www.alloyres.com

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) has started evaluating the near-term cobalt potential of the company’s copper-cobalt prospects at Yeneena in Western Australia.

Encounter Resources controls 70 strike kilometres of Yeneena basin it considers to be prospective for Proterozoic copper-cobalt deposits like the deposits of the Central African Copperbelt, which is currently the world’s largest source of cobalt.

Encounter has carried out a review of previous drilling and geochemical programs that has highlighted a 14km long copper-cobalt system at BM1-BM7 and the Lookout Rocks area as priority cobalt opportunities.

Three areas of interest have been targeted for future drilling:

BM7 Cobalt Zone:
A long zone of cobalt mineralisation of more than 600 metres has been discovered at BM7 that includes near surface intersections, including:

EPT1557
9m at 1 per cent cobalt and 1.5 per cent copper from 42m to end of hole (EOH);

EPT1689
8m at 0.11 per cent cobalt and 2.0 per cent copper and from 58m;

EPT1716
14m at 0.07 per cent cobalt and 0.52 per cent copper from 108m; and

EPT2293
18m at 0.07 per cent cobalt and 0.5 per cent copper from 49m, including 1m at 0.2 per cent cobalt at EOH.

BM1 Cobalt Zone:
The cobalt potential of the BM1 high-grade copper oxide area includes several high-grade, near surface cobalt intersections including:

EPT418
14m at 0.45 per cent cobalt and 0.38 per cent copper from 14m incl. 2m at 1.54 per cent cobalt;

EPT476
8m at 0.15 per cent cobalt and 0.22 per cent copper from 22m incl. 2m at 0.32 per cent cobalt;

EPT2075
5m at 0.18 per cent cobalt and 2.24 per cent copper from 4m;

EPT2078
6m at 0.13 per cent cobalt and 0.72 per cent copper from 26m;

EPT419
22m at 0.07 per cent cobalt and 0.12 per cent copper from 24m incl. 4m at 0.12 per cent cobalt; and

EPT2066
21m at 0.07 per cent cobalt and 0.69 per cent copper from 13m.

Lookout Rocks South Gossan:
An 80m long gossan has been identified at Lookout Rocks where surface sampling returned grades up to 0.19 per cent cobalt and 0.22 per cent copper in sample EX208145.

“Encounter’s previous exploration programs at Yeneena focused on the delineation of large tonnage copper sulphide deposits,” Encounter Resources explained in its ASX announcement.

“The previous broad spaced drilling in the BM7 area was designed to test for thick, gentle easterly dipping zones of copper mineralisation that would parallel stratigraphy.

“However, the recent review of this drilling has identified a potential steep westerly dip to the high-grade copper-cobalt shoots.

“A follow up drill program is planned in May 2017.

“This program will initially focus on testing the down dip position of the interpreted high-grade, shallow copper-cobalt shoots at BM7 and below the Lookout Rocks copper-cobalt gossan.”

Website: www.enrl.com.au

THE DRILL SERGEANT: Breaker Resources (ASX: BRB) released further shallow, high-grade gold intersections achieved during ongoing infill and extensional reverse circulation (RC) drilling at the Bombora gold discovery, part of the company’s 100 per cent-owned Lake Roe project east of Kalgoorlie in Western Australia.

Breaker Resources explained the infill RC drilling at Bombora is part of an ongoing program to assess the geometry, grade characteristics and extent of the gold mineralisation ahead of more detailed resource delineation drilling.

The new RC drill holes at Bombora comprise 24 holes (BBRC0174 to 0183, BBRC0230 to 0240, BBRC0241 to 0242 and BBRC0245) with many of the results based on preliminary four metre composite samples (1m sample results pending).

Results include:

BBRC0176
12 metres at 2.46 grams per tonne gold from 40m, including 5m at 5.37g/t gold, including 2m at 9.46g/t gold;

BBRC0183
11m at 7.77g/t gold from 44m, including 6m at 13.67g/t gold, including 2m at 37.99g/t gold;

BBRC0231
28m at 3.56g/t gold from 124m, 8m at 11.54g/t gold, including 4m at 20.98g/t gold;

BBRC0237
12m at 2.2g/t gold from 200m, including 4m at 5.74g/t gold;

BBRC0240
6m at 4.37g/t gold from 43m;

BBRC0241
4m at 5.3g/t gold from 88m, including 1m at 14.25g/t gold;

BBRC0242
3m at 5.99g/t gold from 58m, including 2m at 8.52g/t gold, including 1m at 15.97g/t gold; and

BBRC0245
4m at 3.39g/t gold from 66m.

Breaker Resources said the shallow, high-grade results continue to support the mining potential of the Bombora discovery.

The results indicate good continuity, and have identified several new gold intercepts that suggest several north-plunging lodes that may continue at depth.

“The infill drilling is identifying good continuity due to the close-spaced nature of the drilling, and is seeing more gold in general as we drill close to gold intersections that were previously ‘floating in space’ due to the wide-spaced nature of the earlier drilling,” Breaker Resources executive chairman Tom Sanders said in the company’s announcement to the Australian Securities Exchange.

“We are also seeing two gold-mineralised orientations and preliminary indications of a third that has genuine potential to increase the ounces per vertical metre, further boosting the mining potential.

“Our understanding is progressing in response to the increase in drill density.”

Email: breaker@breakerresources.com.au

Website: www.breakerresources.com.au

THE DRILL SERGEANT: Montezuma Mining Company (ASX: MZM) claims to have confirmed potential for high-grade cobalt associated with manganese-nickel oxide mineralisation during an ongoing historic data review at the company’s 100 per cent-owned Pinnacles project.

The Pinnacles project is located north east of Kalgoorlie, approximately 50 kilometres from the company’s Lake Johnston lithium project.

Montezuma Mining said the addition of cobalt to its project portfolio strengthens the company’s strategic position as it aims to expand into the technology metal space to take advantage of increasing metal prices resulting from strong projected demand growth.

Most key battery technologies use lithium with manganese and/or cobalt, which Montezuma pointed out happen to be the target commodities for the company’s Butcherbird, Lake Johnston and Pinnacles projects.

“As a result of the historic work being focussed on the nickel rather than the cobalt mineralisation, the company believes there may be potential for further work to better define the higher grade cobalt zones within the greater lateritic nickel orebody,” Montezuma Mining said in its ASX announcement.

“The apparent association between cobalt and manganese mineralisation will be further explored in future analyses as this may have importance in relation to understanding the cobalt distribution but also potential metallurgical processing options.”

Website: www.montezuma.com.au

THE DRILL SERGEANT: Alloy Resources (ASX: AYR) has completed an RC drill program at the company’s Ophara project, located 50 kilometres west of Broken Hill in New South Wales.

Alloy Resources carried out the 12 hole RC drill program, which had been designed to define the strike and depth potential of the known cobalt-gold mineralisation at the Great Goulburn prospect.

Results so far include:

AORC004
12 metres at 0.15 per cent cobalt and 0.29 grams per tonne gold from 57m to 69m, including 6m at 0.2 per cent cobalt and 0.41g/t gold from 59m;

AORC009
5m at 0. 1 per cent cobalt and 0.31g/t gold from 60m to 65m; and

AORC012
19m at 0.1 per cent cobalt and 0.27g/t gold from 92m to 111m, including 6m at 0.11 per cent cobalt and 0.35g/t gold from 95m to 101m and 6m at 0.12 per cent cobalt and 0.29g/t gold from 105m to 111m.

Alloy said the results it had received to date include the highest-grade gold and cobalt results from the project to date and combined with the definition of new unexpected areas of mineralisation to indicate the potential for widespread gold-cobalt mineralisation within the Great Goulbourn project area.

The company said it expected to receive all remaining drill sample results, along with a number of rock chip samples before the end of February.

“Whilst it is early days, these initial results are starting to show that there is widespread cobalt-gold mineralisation in the Great Goulburn prospect area,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.

“What encourages me the most is that holes AORC004 and AORC012 were testing away from the known quartz-magnetite unit and they have both delivered new zones of mineralisation – opening up further areas for definition of mineralisation.”

Email: info@alloyres.com

Website: www.alloyres.com