Cassini Resources in Pre-Christmas Drill Frenzy

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THE DRILL SERGEANT: Cassini Resources (ASX: CZI) has moved a second drill rig to its West Musgrave project Joint Venture with OZ Minerals (ASX: OZL) in Western Australia.

Cassini Resources said the current drilling program was progressing well, leading to the positioning of the second drill rig to ensure the program is completed prior to Christmas with both rigs working day and night shifts.

The second diamond rig has recently commenced drilling at the One Tree Hill Prospect, where zones of PGE anomalism (e.g. 35m at 0.11g/t Pd+Pd and locally up to 0.81g/t) have been intersected in historical drilling, which Cassini believes provides encouragement for orthomagmatic nickel-copper sulphide mineralisation, possibly with a later hydrothermal overprint.

Drillhole CZD0017 is expected to reach the target zone late next week.

Cassini outlined progress on a metallurgical drill program with 3 of 4 diamond holes now complete.

The company explained the holes are designed to ‘twin’ 2014 RC holes, and are expected to provide confirmation of the style and grade of existing mineralisation.

Drilling will provide approximately twenty whole ore and composite samples for the next stage of metallurgical test work, which is scheduled to begin early in the New Year.

Diamond drilling has concluded at the Babylon prospect, located at the western end of the Succoth copper deposit, with hole CZD0011 terminated at 791.9m.

“The existing mineralised zone at the shallower levels within this part of the deposit was not intersected at depth by CZD0011, indicating a possible plunging or flattening geometry of the host intrusion,” Cassini Resources explained in its ASX announcement.

“Whilst no significant visible mineralisation was intersected, the primary reason for the drill hole, which was to test for a massive sulphide position at depth, remains unanswered.

“Furthermore, the complex geology encountered is perhaps more suitable for massive sulphide accumulations compared to the original conceptual targeting model, as change from sub-vertical to a sub-horizontal orientation of host intrusion is considered favourable setting for accumulation of massive sulphides.

“The interpretation of the geological data is still underway and will be complemented by a DHEM survey, likely to be completed early in the 2017 field season.

“The DHEM survey will be the first opportunity to gain geophysical information at this depth and will greatly assist future targeting.”

Email: admin@cassiniresources.com.au

Website: www.cassiniresources.com.au

Altona Mining Identifies Three New Copper Systems at Roseby South

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THE DRILL SERGEANT: Altona Mining (ASX: AOH) claimed discovery of three new copper gold systems at the company’s 100 per cent-owned Roseby South project near Mt Isa in Queensland.

Altona Mining completed a reconnaissance Reverse Circulation (RC) drilling program at the Roseby South testing three prospects; Harvest, Reaper and Hobby, defining large copper-in-soil anomalies greater than 1,000ppm (0.1% copper) at each target.

At the Harvest prospect better drill intercepts at a 0.3 per cent copper cut-off grade included:

HA003
34 metres at 0.83 per cent copper, 0.14 grams per tonne gold, including 5m at 1.11 per cent copper and 5m at 1.93 per cent copper, 0.63 g/t gold; and

13m at 0.83 per cent copper, 0.42g/t gold, including 5m at 1.47 per cent copper, 0.92 g/t gold.

HA008
13m at 1.13 per cent copper, 0.13g/t gold, including 5m at 2.18 per cent copper, 0.19 g/t gold; and

HA009
5m at 1.31 per cent copper, 0.28g/t gold.

Drill intercepts from the Reaper prospect, at a 0.3 per cent copper cut-off grade, included:

RE006
20m at 0.48 per cent copper, 0.08g/t gold;

RE002
20m at 0.48 per cent copper, 0.04g/t gold; and

RE001
19m at 0.43 per cent copper, 0.02g/t gold.

At the Hobby prospect drill intercepts at a 0.3 per cent copper cut-off grade, included:

HB001
16m at 0.46 per cent copper, 0.03g/t gold;

HB002
5m at 0.51 per cent copper, 0.04g/t gold; and

HB003
18m at 0.31 per cent copper, 0.03g/t gold.

“Initial drilling is now complete with the wet season imminent and Altona will determine the best strategy for the next stage of exploration,” Altona Mining said in its ASX announcement.

“The company will determine the optimum commercial and technical strategy for testing of these major copper targets over the coming wet season and after the close of the SRIG transaction.”

Altona’s Cloncurry project is the subject of a US$235.5 million proposed Joint Venture with Sichuan Railway Investment Group (SRIG) of China.

Email: altona@altonamining.com

Website: www.altonamining.com

Corazon Mining hits High-Grade Cobalt Intersections at Mt Gilmore

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THE DRILL SERGEANT: Corazon Mining (ASX: CZN) released high-grade cobalt intersections from the first batch of assay results from a maiden drilling program at the company’s Mt Gilmore cobalt-copper-gold project in north-eastern New South Wales.

Corazon Mining had focused the drilling on the high-grade Cobalt Ridge prospect and, according to the company, the assay results have validated its assessment of Cobalt Ridge as a unique, high-grade cobalt-dominant deposit with potential to deliver valuable, discrete high-grade zones of cobalt, within broader moderate grade mineralisation.

The best individual assay result for cobalt was 2.79 per cent over one metre, with other results including:

MGRC002
16 metres at 0.65 per cent cobalt from 135m, including 6m at 1.48 per cent cobalt; and

MGRC003
37m at 0.14 per cent cobalt from surface, including 2m at 0.36 per cent cobalt and 1.37 per cent copper and 1m at 1.2 per cent cobalt and 1.02 per cent copper.

Corazon explained that holes MGRC002 and MGRC003 intersected the main cobalt lode, adding that core drilling is currently underway to extend holes MGRC001 and MGRC004 to intersect this zone.

“We are pleasantly surprised by these initial assay results. In particular, the results for hole MGRC002 are better than any previous historical drilling and open up the western extensions of the system as prospective for high-grade cobalt, plunging below historic drilling,”

“We’re looking forward to assays from what would be considered the core of the system.

“The main cobalt lode appears to be 10 to 20 metres down-hole with two or three zones of more intense mineralisation.”

Cobalt is a metal of growing strategic importance due to its requirement for use in lithium-ion batteries and the emerging re-chargeable battery sector.

At current cobalt metal prices of around US$30,000 per tonne, Corazon considers the grades intersected in the drilling at Cobalt Ridge represent potentially plenty of in-ground value for both the broad zones and discreet high-grade zones of cobalt mineralisation.

The company believes the historic mining for cobalt, copper, gold and silver in the project area supports the opportunity for the metallurgical extraction of these metals.

Email: info@corazon.com.au

Website: www.corazon.com.au

Doray Minerals Extends Wilbur and Judy Lodes at Andy Well

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THE DRILL SERGEANT: Doray Minerals (ASX: DRM) announced underground diamond drilling at the company’s Andy Well gold project in Western Australia has extended and enhanced high-grade gold mineralisation within both the Wilber and Judy Lodes.

Doray Minerals has had underground drilling at Andy Well in progress with up to three diamond drill rigs in operation.

This drilling has focussed on exploring for immediate extensions to high-grade gold mineralisation adjacent to the active mining areas within the Wilber and Judy Lodes.

The drilling completed at Wilber aimed to test three main areas – the main Wilber Lode directly below the bulk of current mine workings, potential for small zones of mineralisation immediately north of the northern dyke, and continuity of the ‘Middle Pod’ high-grade plunging shoot.

Doray explained that drilling below the current Wilber Lode Ore Reserve has intersected high-grade gold mineralisation in several holes at depths between 750mRL and 800mRL, approximately 680m to 730m below surface.

Assays received from the Wilber Lode extensional drilling program to date include:

WBUG1126
2.6 metres at 70.1 grams per tonne gold from 219.7 metres downhole (mdh) (True Width ~1m);

WBUG1117
2m at 25.2g/t gold from 187.9mdh (True Width ~1m);

WBUG1099
1.2m at 19.8g/t gold from 263.1mdh (True Width ~0.7m); and

WBUG1111
2.8m at 9.5g/t gold from 198.9mdh (True Width ~0.9m).

“The recent drilling at Wilber has been particularly successful in further delineating a zone of higher grade gold mineralisation below the current Ore Reserve, which could have a significant impact on the grade and cost profile at Andy Well in the medium term,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“We are currently mining through a more variable and narrower part of the Wilber Lode orebody, which is having a negative effect on the grade and cost profile at present.

“These drilling results have highlighted that, below the current mine design, the tenor and consistency of mineralisation at Wilber appears to increase back towards that which was seen higher in the mine.

“The area directly below the current mine plan has the best potential for immediate extensions to the Wilber Lode and we will continue to test this higher grade zone which remains open at depth.”

Website: www.dorayminerals.com.au

Sayona Mining Expands Authier Lithium Resource

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THE DRILL SERGEANT: Sayona Mining (ASX: SYA) released an updated independent JORC Mineral Resource estimate for the company’s Authier lithium project in Quebec, Canada.

Sayona Mining indicated the expanded Mineral Resource estimate follows on from a recent 3,967 metre drilling campaign.

The contained lithium dioxide Mineral Resource for the Authier project has increased by 68 per cent from 87,302 tonnes to 146,700 tonnes compared to the July 2016 JORC Mineral Resource estimate.

The average grade has increased from 0.96 per cent lithium dioxide (Li20) to 1.07 per cent Li2O, and 86 per cent of the contained Mineral Resource is categorised within the Measured and Indicated Mineral Resource categories.

“The 2016 drilling program has significantly expanded the size of the Mineral Resource and improved the average grade of the deposit, especially at shallow levels which would be mined first in a future operation,” Sayona Mining chief executive officer Corey Nolan said in the company’s announcement to the Australian Securities Exchange.

“The size of the contained lithium dioxide Mineral Resource has increased 68 per cent, and mineralisation within the Measured and Indicated Mineral Resource categories has also increased from 77 per cent to 86 per cent compared to the previous July 2016 JORC Mineral Resource.

“Mineralisation remains open in all directions and more drilling is planned in early 2017 to expand the resource for the Definitive Feasibility Study.”

Email: info@sayona.mining.com.au

Website: www.sayonamining.com.au

European Metals Increases Cinovec Indicated Lithium Resource

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THE DRILL SERGEANT: European Metals Holdings (ASX: EMH) announced an interim upgrade of the Mineral Resources at the company’s Cinovec lithium-tin project in the Czech Republic.

European Metals Holdings informed the market the upgrade has delivered a 420 per cent increase in Indicated Mineral Resources, which, when combined with the Inferred Mineral Resources, results in a total resource of an estimated 6.46 million tonnes of lithium carbonate equivalent (LCE).

The company said the increase in the indicated portion of the Mineral Resource, and the resource in total, will have a positive impact for mine planning and the life of mine, acknowledging the Mineral Resource will allow management to optimise the mine plan and maximise Cinovec’s financial returns and further progress in the ongoing prefeasibility study, which is due for publication at the end of March next year.

European Metals said the lithium and tin resources have been updated using data from the latest drill holes the company has released to market over the last five months.

Resource classifications have been revised on the basis of the new data.

Highlights of the upgrade include:

Lithium Indicated Resource increased 420 per cent to 2.6 million tonnes LCE, contained in 232.8 million tonnes at 0.45 per cent lithium dioxide (Li2O) (0.1% Li cutoff);

Lithium Total Resource increased 11.8 per cent to 6.46 million tonnes LCE, contained in 606.8 million tonnes at 0.43 per cent Li2O (0.1% Li cutoff); and

Tin Indicated Resource increased by 64 per cent to 28.6 million tonnes 0.23 per cent tin, 0.54 per cent Li2O (0.1% tin cutoff) for 658,000 tonnes tin, 0.38 million tonnes LCE.

 European Metals said the results from the drilling program support the original Cinovec model and that the company remains confident additional drilling will result in further resource upgrades.

The company indicated its Lithium Exploration Target remains at 350 million tonnes to 450 million tonnes at 0.39 per cent to 0.47 per cent for 3.4 million tonnes to 5.3 million tonnes of LCE.

“This significant upgrade to the Cinovec Indicated lithium resource is particularly pleasing as it provides basis for the soon to be completed preliminary feasibility study,” European Metals managing director Keith Coughlan said in the company’s announcement to the Australian Securities Exchange.

“When the tonnage and grade for this material are compared to the previously calculated Inferred resource, neither grade nor tonnage changed much, highlighting the robustness of the resource and geological models, and continuity of the orebody.

“Drilling will continue until the end of the year at which point the model will be updated again.

“The substantial upgrade to the Indicated tin resource is also very encouraging, particularly in light of the rising tin price on LME throughout 2016.

“The tin credits at Cinovec will be significant for the project and greatly enhance the overall economics.

“The pre-feasibility study is moving ahead rapidly and I look forward to releasing some exciting updates on this in the very near future.”

Website: www.europeanmet.com

S2 Resources Commences Skeefelte Drilling

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THE DRILL SERGEANT: S2 Resources (ASX: S2R) has completed testing of the first of ten targets designated for a northern winter diamond drill campaign at the company’s Skellefte project in Sweden.

S2 Resources said the drilling intersected a minor zone of stringer and disseminated sulphides, for which assays are awaited but are expected to be low grade.

The company has also completed a second VTEM survey over the project area, which has identified numerous new anomalies, one of which coincides with an outcropping copper-zinc bearing sulphides.

The first target to be drilled as part of the planned five month drilling campaign was Svansele 403-3.

According to S2 Resources, this target comprises a subtle VTEM conductor, which has been shown to actually be two separate conductors by a more detailed ground-based moving loop EM (MLEM) survey.

“Two holes, SSVA 1701 and 1702, were drilled to test these, and subsequent down hole EM (DHEM) in the first hole identified a subtle off-hole conductor,” S2 Resources said in its ASX announcement.

“Hole SSVA1703, drilled to test this, intersected a 2.4 metre thick zone of mainly disseminated with some stringer sulphide mineralization from 196.4 metres downhole, comprising pyrite, pyrrhotite and some sphalerite, within a felsic volcanic sequence.”

S2 Resources explained it will take several weeks to receive assays for this intersection, adding that visually it appears to be only weakly mineralised.

“It is, however, encouraging to intersect mineralization within appropriate host rocks at the first target drilled in the campaign,” the company said.

“This is the first target of three in a cluster, with the other two being Svansele 403-2 and Svansele 403-1, which was renamed as the Svan Vit prospect.”

S2 Resources said drilling of these and other targets will continue over the next five months, with priorities being determined primarily by ground access conditions.

Email: admin@s2resources.com.au

Website: www.s2resources.com.au

St George Mining Scores Riveting Results From Mt Alexander Geophysical Survey

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) has identified a number of new targets that have potential to host mineralised ultramafics at the company’s Mt Alexander project in Western Australia.

St George Mining said the targets had been identified via high resolution magnetic data generated by a recent airborne magnetic survey.

The most important finding from the new data is that the Cathedrals Belt may continue to the east for a further eight kilometres of strike.

The eastern extension of the Belt is within a newly-granted Exploration Licence E29/954, owned 100 per cent by St George.

The company explained this tenement has never been explored, adding that a preliminary review of the data from the SAMSON EM survey over the western part of the Cathedrals Belt suggests a number of new EM anomalies have been detected providing a new exploration opportunity.

St George said the data is being modelled and interpreted by Newexco, and a further announcement will be made once final results are available.

With the performance of the SAMSON survey to date, St George has made a decision to continue the EM survey over the recently identified eastern extension of the Cathedrals Belt, commencing this week and expected to be completed in two weeks.

This will be the first ever EM survey completed over the eastern extension of the Cathedrals Belt.

“The results of the aeromagnetic survey are exactly what we were hoping for – particularly in regard to the extension of the Cathedrals Belt to the east,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“Our exploration to date has confirmed that this Belt is highly mineralised and is amenable to EM targeting.

“The case for immediately extending the SAMSON EM survey to the east is very compelling.

“The new aeromagnetic survey has also identified a number of other structures parallel to the Cathedrals Belt which may host further mineralised ultramafics. We expect these to emerge as high priority targets which could multiply the value of our project.”

Website: www.stgm.com.au

Peel Mining Confirms High-Grade Base Metal Mineralisation at Wagga Tank

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THE DRILL SERGEANT: Peel Mining (ASX:PEX) has encountered high-grade zinc-lead-silver-copper-gold mineralised drill intercepts during recent drilling at the company’s 100 per cent-owned Wagga Tank project, near Cobar in western New South Wales.

Peel Mining said the results have encouraged it to expand the initial Wagga Wagga drilling program, which was designed to confirm the presence of high-grade base and precious metal mineralisation originally identified at Wagga Tank in the 1970s and 80s.

Peel explained that, to date, it has completed sixteen RC drillholes (for 3,727m), adding that the majority of these drillholes ended in mineralisation and will require diamond tails.

Only one diamond tail (WTRCDD002) has been completed thus far.

High-grade zinc-lead-silver sulphide and copper oxide/sulphide mineralisation has now been confirmed at Wagga Tank with results including:

WTRC001
4m at 2.4 grams per tonne gold from 78m; and
12m at 3.09 per cent copper, 97 g/t silver, 1.36g/t gold from 92m.

WTRC002
10m at 1 per cent copper, 0.11g/t gold from 109m;
7m at 0.88 per cent copper, 0.08g/t gold from 130m;
8m at 8.54 per cent zinc, 6.2 per cent lead, 134g/t silver, 1.45 per cent copper from 173m; and
13m at 3.73 per cent zinc, 2.14 per cent lead, 29g/t silver, 0.3 per cent copper, 0.21g/t gold from 225m, including 7m at 5.75 per cent zinc, 3.32 per cent lead, 43g/t silver, 0.4 per cent copper, 0.24g/t gold from 230m.

WTRC003
9m at 0.74 per cent copper, 41g/t silver, 1.07g/t gold from 141m;
14m at 0.86 per cent copper, 1.49 per cent lead, 35g/t silver, 0.19g/t gold from 188m;
25m at 1.07 per cent copper, 8g/t silver, 0.27g/t gold from 208m; and
13m at 5.02 per cent zinc, 3.51 per cent lead, 46g/t silver, 0.29g/t gold from 240m (eoh), including 6m at 9.64 per cent zinc, 6.89 per cent lead, 86g/t silver, 0.53g/t gold from 242m.

WTRC004
17m at 1.19 per cent copper from 128m; and
14m at 9.21 per cent zinc, 4.45 per cent lead, 126g/t silver, 1.74g/t gold, 0.31 per cent copper from 280m (eoh).

WTRCDD005
(drillhole continuing)
33m at 1.01 per cent copper, 0.27g/t gold from 120m; and
5m at 0.97 per cent copper, 0.37g/t gold from 165m.

“Assays for the balance of Wagga Tank RC drilling (WTRC006 to WTRC016) remain pending, however preliminary drillhole geological logging coupled with portable XRF analysis (Olympus Delta) has confirmed the presence of further significant zones of copper oxide/sulphide mineralisation and zinc-lead-silver sulphide mineralisation,” Peel Mining said in its ASX announcement.

“In light of the confirmation of high-grade base and precious metal mineralisation at Wagga Tank, Peel has expanded the current drilling program to garner further information with regards to the setting, tenor, mineralisation style and alteration of the Wagga Tank prospect.”

Email: info@peelmining.com.au

Website: www.peelmining.com.au

Metalicity Drilling at Pilgangoora South

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THE DRILL SERGEANT: Metalicity (ASX: MCT) has commenced a program of 1,200m reverse circulation (RC) drilling at the company’s Pilgangoora South lithium project in the Wodgina/Pilgangoora district of Western Australia.

Metalicity has identified two key prospects it has prioritised for drilling at Pilgangoora South being the Stannum and Turner River North prospects.

According to the company an analysis of hyperspectral data at Stannum identified a number of priority areas, which were followed up by detailed mapping.

Five key pegmatites with the potential to host rare metal mineralisation including lithium were identified.

The approved program is for up to 1,800 metres of reverse circulation (RC) drilling at Stannum; and has been designed to test the lithium potential of the three northern pegmatites, Vun, Duus and Tria, and determine the source of previously observed spodumene.

Metalicity explained the vertically oriented RC drill holes will investigate the subsurface expression of the ‘stacked’ flat-lying pegmatite bodies previously observed in mapping.

It will also follow up the lithium anomalism previously noted by the company across the tenement area in rock chip sampling carried out earlier this year.

“The drilling program is designed to test the length, width and depth of the pegmatites while gaining better insight into the grade/tonnage profile,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“The project is ideally located adjacent to existing infrastructure and a proposed downstream lithium processing facility.”

Website: www.metalicity.com.au