Predictive achieves anticipated results

THE DRILL SERGEANT: RC and power auger drilling carried out by Predictive Discovery has revealed extensions to the Solna gold mineralised system on the company’s Bangaba gold project, located in eastern Burkina Faso.

The Solna prospect is one of three major areas of artisanal workings in the Bangaba project and covers a 600 metre long zone that contains numerous shafts.

 

Predictive Discovery projects in Burkina Faso. Source: Company announcement

 

According to Predictive the recent results from drilling undertaken into the main lode position at the Solna rospect at the have now extended this zone by 160m to a strike length of 650m, with mineralisation open both along strike and at depth.

The company said the power auger sampling has also identified over four kilometres of power auger gold anomaly strike length, surrounding and to the south‐west of Solna.

Assay results received from four RC holes drilled at Solna in November included:

–    6 metres at 12 grams per tonne gold from 40 metres, including 2 metres at 31 grams per tonne gold; and

–    10m at 0.9g/t gold from 49m, including 1m at 4.6 g/t gold.

Previous RC drilling at Solna carried out in May 2011 included:

–    2m at 56g/t gold from 65m;

–    7m at 13g/t gold from 117m; and

–    2m at 10g/t gold from 134m.

“Predictive Discovery is encouraged by these latest results which indicate that the Solna gold mineralised system extends well beyond the current artisanal mining area,” Predictive Discovery managing director Paul Roberts said in the company’s announcement to the Australian Securities Exchange.

“Recent drill results provide additional support for the concept that the Solna prospect is intrinsically high grade.

“The results of all PDI’s RC drilling to date when combined with the power auger geochemistry indicates potential for a substantial high grade gold deposit in the Solna area.”

The company said its next steps in evaluation of the Bangaba gold project will be decided once it has received all results from the work carried out so far, along with results of RC and diamond drilling on the Tambiri prospect, which is currently in progress.

Ausgold receives timely results

THE DRILL SERGEANT: Ausgold received a pleasant stocking-stuffer in the form of assay results from a RC drilling program undertaken at its Yamarna project, located in central Western Australia.

Two holes carried out at the company’s Winchester copper-nickel discovery returned significant copper, nickel and cobalt intervals, reported as copper equivalent values:
 
–    21 metres at 1.24 per cent copper equivalent from 88 metres; and

–    28m at 1.16 per cent copper equivalent from 99m.

 

Winchester prospect discovery section, with significant intersections. Source: Company announcement

 

The recent drilling was designed to follow up a discovery hole drilled in late 2010.

An additional reconnaissance hole undertaken at a separate target returned:

–    153m at 0.1 per cent nickel from 5m.

Ausgold is of the opinion these results from Yamarna are significant in terms of early first pass drilling results as they demonstrate potential for the area to host multiple copper-nickel-cobalt sulphide and nickel sulphide deposits.

“The results from the work our field team has been undertaking at Yamarna confirms the potential we believe for this project to host a significant copper-nickel-cobalt discovery,” Ausgold chairman Robert Pett said in the company’s announcement to the Australian Securities Exchange.

“Whilst the Katanning gold discovery remains our key focus, we have a number of other projects within our portfolio that warrant further exploration – as these latest results clearly demonstrate.”

Ausgold started drilling the eight hole program at Yamarna in September focussing on three main areas, specifically the Winchester deposit and two electromagnetic (EM) anomalies – Yam09 and Yam19.

Drilling was completed by November with all eight holes cased for downhole EM testing.

Ausgold is now awaiting final results from the program.

Assays received for the first six of the eight holes have returned results including:

–    21m at 0.63 per cent copper, 0.20 per cent nickel, and 0.02 per cent cobalt (1.24 per cent copper equivalent) from 88m; and

–    28m at 0.50 per cent copper, 0.21 per cent nickel, and 0.02 per cent cobalt (1.16 per cent copper equivalent) from 99m.
 
Ausgold said it intends to drill adjacent sections at Winchester during the 2012 field season to determine the extent of the mineralising system.

The company said it believes recent work at Yamarna has enhanced the prospectivity of the immediate area and region for copper-nickel-cobalt and nickel Sulphide mineralisation.

Thor encouraged by Spring Hill drilling

THE DRILL SERGEANT: Thor Mining has announced results from diamond drilling carried out at the company’s Spring Hill gold project in the Northern Territory.

The company said the drilling had demonstrated potentially economic mineralisation extending up to 100 metres below historical resource drilling.

The company also said it had achieved a good correlation between diamond drill holes and historical reverse circulation gold intersections in the upper levels.

 

Spring Hill cross section showing gold mineralisation in an un-drilled
portion of the resource outline and at depth. Source: Company
announcement

Notable intersections received include:

–    3.6 metres at 0.7 grams per tonne gold from 191 metres, including 0.6 metres at 3.9g/t from 194 metres;

–    3.4m at 9.7g/t gold from 24.6m, including 1.0m at 31.4g/t from 25m;

–    4.7m at 5.7g/t gold from 28.6 metres, including 0.7m at 36.2g/t from 30.8 metres and 5.0m at 2.1g/t gold from 106m, including 0.1m at 78.5g/t from 109.2m; and

–    20.0m at 1.6g/t gold from 100m, including 3.1m at 5.1g/t from 115m.
 
Thor’s 2011 diamond drilling program was designed to confirm, in drill core, mineralisation that had been intersected at relatively shallow depths and contained within the historical resource estimate outline.

It was also undertaken in order to demonstrate the existence of extensions to greater depths.

“These results provide confidence in the potential for early development of an open pit gold mining operation at Spring Hill, and also reinforces our belief that the resource may be substantially larger than initially estimated,” Thor Mining chairman Mick Billing said in the company’s announcement to the Australian Securities Exchange.

“More drilling is scheduled for 2012 along with studies to assess the potential for early commencement of mining operations.”

Thor’s 2011 drilling program was originally designed to be 10 holes but had to be shortened due to a combination of adverse drilling conditions and the early onset of the annual wet season.

Six diamond holes were completed for a total of 1,574m.

The results showed a good correlation with historical reverse circulation drilling intersections, which Thor said had increased its confidence in the historical resource estimate and Spring Hill’s potential for early development as a profitable mining operation without resource extension.

The company said additional intersections of mineralisation achieved below the historical estimated resource confirm the potential it had previously identified for extension of the resource at depth.

Coppermoly celebrates early Christmas

THE DRILL SERGEANT: The festive season kicked off early for copper-gold-focused exploration company Coppermoly with the first ever diamond drillhole sunk into the company’s Nakru-4 prospect in Papua New Guinea.

The hole intersected 22 metres grading 0.21 grams per tonne gold and 0.15 per cent copper from 9 metres depth.

This included a one metre interval of 1.54 g/t gold and 1.17 per cent copper in telluride.

The hole was drilled 800m northwest of the company’s Nakru-1 prospect and was completed to a depth of 271.9m.

“Results confirm the presence of widespread copper and gold mineralisation at depth which warrants further drilling to test for tonnage potential,” Coppermoly said in its ASX announcement.
 
“A number of other prospects within the Nakru exploration licence, including other geochemical and geophysical targets, are yet to be drill tested.”

The Nakru-4 prospect is situated within the northern extent of a 600m by 1400m historical gold in soil anomaly which extends from the south-western portion of the Nakru-1 copper-gold system.

 

Location of Coppermoly tenements. Source: Company announcement

Previous drilling at Nakru-1 recorded an interval of 23.5m grading 2.38 g/t gold and 1.30 per cent copper from 87.3m depth, including 1m grading 42 g/t gold and 4.6 per cent copper at 99m depth.

“The Nakru-1, 2, 3 and 4 prospects occur as a cluster of copper-gold-zinc breccia related mineralisation,” Coppermoly said.

“The Nakru-1 system exhibits an overprinting of epithermal gold, while both the Nakru-1 and Nakru-2 systems show characteristics similar to volcanogenic massive sulphide deposits.

“Further drilling will be required to define the extent of mineralisation within these four prospect areas as well as test the other geophysical and geochemical targets.”

Cove encouraged by Goongarrie drilling

THE DRILL SERGEANT: Cove Resources has been encouraged by results it has received from a second drilling program carried out on the company’s Goongarrie project in Western Australia.

The Goongarrie project is made up of five Prospecting Licences that cover the historic Goongarrie gold mining centre situated in the Eastern Goldfields of Western Australia.

Cove completed a total of 28 RC holes for 2,232 metres, focussing on the Caledonian, Frank North and Goongarrie West prospects.

 

Drilling beneath the shallow Caledonian Pit. Source: Company announcement

According to Cove the recent drilling has identified a continuous zone of mineralisation over 120m.

Cove claimed the best result it achieved from the latest program of 43 metres at 1.55 grams per tonne gold is directly along strike from a hole the company drilled in an earlier campaign, which returned 57m at 1.23 g/t gold.

Other results of particular note from the drilling included:

Caledonian Prospect

–    5m at 3.24 g/t gold from 24m and 3m at 1.64 g/t gold from 72m;

–    1m at 38 g/t gold from 11m and 43m at 1.55 g/t gold from 71m, including 6m at 3.52 g/t gold from 106m.

Frank North Prospect

–    2m at 1.55 g/t gold from 2m, and 7m at 3.25 g/t gold from 35m, including 1m at 20.2 g/t gold from 36m;

–    4m at 1.41 g/t gold from 10m including 1m at 4.65 g/t gold from 10m.

West Goongarrie Prospect

–    1m at 1.21 g/t gold from 21m; and

–    1m at 2.18 g/t gold from 42m.

Surface rock sampling from a small pit above one of the drillholes returned 18.75 g/t gold and 19.7 g/t silver.

Cove said several low grade gold intervals were noted in most of the holes along the gold soil anomaly.

“These results will be interpreted together with previous drill results and a new program and the next phase of work will be implemented in the new year,” Cove Resources said in its ASX announcement.

“The near surface gold mineralisation is over wide intervals which increases the development potential of the area.

“Drillholes are currently being surveyed and full data, including plans and cross sections incorporating current and previous drilling will be provided shortly.”

Aphrodite re-estimates Chameleon

THE DRILL SERGEANT: Aphrodite Gold has estimated a new Exploration Target for its Chameleon prospect.

The new target for Chameleon is 2.1 to 2.5 million tonnes at between 1.4 and 1.9 grams per tonne gold for approximately 100,000 to 140,000 ounces of gold at a cut-off of 0.5 grams per tonne gold.

The Chameleon prospect is located five kilometres from the company’s Aphrodite gold deposit and 70km north of Kalgoorlie in Western Australia.

Chameleon forms part of the Scotia Gold Joint Venture project, which Aphrodite farmed into with Breakaway Resources in June this year.

Under the terms of the Joint Venture Agreement, Aphrodite can earn up to 80 per cent of the gold rights in the 217 square kilometre Scotia project tenements.

 

Location of Chameleon Relative to Aphrodite Gold Deposit. Source: company announcement

 

“This latest assessment of Chameleon confirms that this prospect, together with other gold prospects within our exploration portfolio, has strong potential to contribute further gold ounces to our overall Aphrodite Operations, Aphrodite Gold exploration and development director Leon Reisgys said in the company’s announcement to the Australian Securities Exchange.”

A small RC drill program comprising four holes is currently underway at Chameleon to provide additional information prior to the conclusion of 2011 to allow a fuller analysis of the mineralisation and planning of a resource drilling program scheduled for 2012.

Aphrodite completed an RC drill program, comprising 16 holes July 2011, which the company said confirmed a gold mineralised zone at Chameleon over a strike length of 600 metres down to a vertical depth of around 200 metres.

Gold intercepts from this drill program included:

–    12 metres at 10.99 grams per tonne gold from 66 metres to 78 metres;

–    6m at 4.48g/t gold from 92-98m; and

–    11m at 2.05g/t gold from 129-140m.

Aphrodite claims modelling carried out at Chameleon indicates gold mineralisation is confined to a shear running along the edge of an ultramafic horizon that shoots away from the contact.

The company said a number of methods were used to complete an estimate of the tonnage and grade ranges including 3D wire framing and block modelling in Micromine, and Leapfrog interpolations.

Aphrodite has further validation of the database together with continued RC drilling planned to be undertaken in 2012 with the aim of announcing a maiden JORC Code compliant resource for Chameleon by mid-2012.

Chalice fills up on drill results

THE DRILL SERGEANT: Chalice Gold Mines has received high-grade gold intercepts from diamond drilling carried out at the company’s recently discovered Debre Konate prospect.

The Debre Konate prospect is situated immediately south of the soon to be developed Koka gold deposit at its Zara project in northern Eritrea.

 

Location of Zara Project and other Chalice Gold Exploration Licences. Source: Company announcement

 

Recent diamond drilling has focused on testing high priority targets within a 7.5 kilometres long corridor encompassing the Koka deposit where Chalice and its partner ENAMCO are planning to commence development of an open-pit mine in 2012.

The previously undrilled Debre Konate prospect, located around2.5km south of Koka, was initially targeted as an Induced Polarisation (“IP”) resistivity anomaly supported by minor artisanal workings and a significant gold and lead soil geochemical anomaly in a microgranite host.

The first hole Chalice drilled into the prospect intersected, what the company described to be as, “an extensive low-grade mineralised system.”
 
A further hole was drilled “up-section” from the first, which Chalice said has confirmed the previous drill results with numerous zones of narrow, higher grade mineralisation contained within the low-grade envelope.

The company said the second hole intersected the same extensive low-grade gold system, returning 111 metres at 1.41 grams per tonne gold (uncut) from 94 metres.

Better intersections (uncut) included:

–    4m at 11.45g/t gold from 94m;

–    1m at 12.55g/t gold from 119m;

–    1m at 22.42g/t gold from 129m; and

–    1m at 30.55g/t gold from 163m.

“The new discovery at Debre Konate and the potential bulk tonnage targets highlight the significant  prospectivity of the greater Zara project area,” Chalice Gold Mines managing director Dr Doug Jones said in the company’s announcement to the Australian Securities Exchange.

“The discovery of additional ounces near Koka will likely have a significant impact on the already robust economics of the project.”

Bassari drills while awaiting Resource upgrade

THE DRILL SERGEANT: Melbourne-based gold explorer Bassari Resources has commenced reverse circulation (RC) drilling at the company’s Bennajiggi prospect, situated within its Moura permit in Senegal, West Africa.

The company is awaiting results for a resource upgrade at its Makabingui gold project, which it said is on track to be released before the end of the year.

The Bennajiggi prospect is one of 13 quality gold prospects Bassari has identified along 80 kilometres of strike within its permits on the Birimian gold belt in eastern Senegal.

 

Moura permit – Prospect Location Map. Source: Company announcement

The company said it had undertaken the new drilling campaign as a result if previous exploration at Bennajiggi, which included trenching and pitting, that had returned encouraging results that the company considered warranted following up with drilling.

“Now that we have completed our first stage drilling program at Konkouto and have assays pending, Bennajiggi is our next high quality target to advance.” Bassari Resources managing director Jozsef Patarica said in the company’s announcement to the Australian Securities Exchange.
 
“Drilling has now commenced targeting mineralisation associated with a zone of multiple east-west trending and steeply south dipping quartz lodes.

“The main controlling structure appears to be a major north to north east trending shear zone. The drill program is designed to follow up this model to determine potential for a significant mineralised system.

“There are extensive artisanal workings concentrated around the Bennajiggi prospect which is typical of the region.”

The Bennajiggi prospect is located 38km north east of Bassari’s most advanced gold discovery, the Makabingui project.

Previous exploration undertaken at Bennajiggi has included trenching and pitting and an initial phase of shallow RC drilling.

Centaurus commences new drilling program

THE DRILL SERGEANT: Centaurus Metals has commenced a round of Reverse Circulation (RC) drilling its Jambreiro iron ore project in south-east Brazil.

The new drilling program is part of a Bankable Feasibility Study work program.

 

RC Rig drilling at Jambreiro project. Source: Company announcement

 

“The RC in-fill program, which is one of several programs to be undertaken as part of the BFS, is planned to convert the first 2-3 years of friable ore production into Proven Reserves, which will assist with securing the debt funding component of the overall project funding package for Jambreiro,” Centaurus Metals explained in its ASX announcement.

“The drilling will also enable the company to collect a bulk sample and use it in pilot plant testwork, which will greatly assist in securing product off-take arrangements with the Brazilian domestic steel mills.”

The new phase of drilling follows the release of a Pre-Feasibility Study on the Jambreiro project, which outlined a two million tonnes per annum project capable of generating revenues of $1.4 billion and EBITDA of $948 million over an initial 8.5 year life.

The overall RC drill program to be carried out at Jambreiro will comprise 2,250 metres of drilling with 1,750 metres of shallow drilling being undertaken to intersect the ore from surface to the bottom of the anticipated year-three pit.

A further 500m of drilling will also be carried out to test for pit extensions between the Tigre and Cruzeiro deposits in an area of the Jambreiro project that was not previously drilled.

Once Centaurus has completed drilling completed at Jambreiro, it said it will move the RC rig to undertake exploration drilling on the surrounding tenements in the Guanhães Region.

Centaurus has 18 tenements (including Jambreiro and Candonga) in the Guanhães Region covering a total area of 25,000 hectares.

The company has used surface mapping to identify itabirite mineralisation on 13 of the 18 tenements.

Centaurus said it has planned 2,500m of RC drilling to test some of the targets on these tenements.

EPA waives Poseidon Windarra assessment

THE DRILL SERGEANT: Andrew Forrest-led Poseidon Nickel has received news that its Windarra nickel project in Western Australia will not require formal assessment by the Environmental Protection Agency (EPA).

Instead the environmental approval for the project is to be managed under Part V of the Environmental Protection Act of 1986.

Receipt of this conditional waiver means the company’s plans for the development of the Windarra nickel project remain on track.

The Poseidon said this meant it would be able to achieve all of the necessary mining and environmental approvals during the first quarter of 2012.

The EPA waiver for the project was first granted in 2008.

“Substantial changes to the project, most notably incorporation of mining activities at the Cerberus nickel deposit, meant that a re-application for a waiver was necessary,” Poseidon Nickel said in its ASX announcement.

“The process should now deliver a rapid assessment within the development time scales of the project.”

Poseidon Nickel claims the Windarra nickel project to be a higher-grade nickel sulphide deposit that has demonstrated high recovery levels through a standard nickel floatation concentrator.

The total current Mineral Resource is located at two positions approximately 10 kilometres apart and includes an existing brownfields mine at Mt Windarra and a new discovery at Cerberus.

 

Source: Company announcement

Poseidon said it is on track to complete a definitive feasibility study by the end of 2011.

The company is targeting initial concentrate production in 2013.

A concentrator plant is to be constructed at Mt Windarra, which the company expects to have a nameplate capacity of 700,000 tonnes of ore per annum.