Musgrave Minerals encounters more high-grade gold at Break of Day

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THE DRILL SERGEANT: Musgrave Minerals (ASX: MGV) managing director Rob Waugh was spotted amongst the throng at Diggers and Dealers on Day Two.

Waugh was sporting an enigmatic grin, due no doubt to the company’s announcement that it has encountered intersections of high-grade gold while conducting follow-up reverse circulation (RC) drilling at the Break of Day prospect within the company’s Cue project in the Murchison region of Western Australia.

Musgrave has received assay results for the first two drill holes in the program (16MORC006 and 16MORC007).

Results include:

16MORC006
2 metres at 10.8 grams per tonne gold from 66m to 68m down hole (hanging-wall vein); and

2m at 36.8g/t gold from 101m to 103m down hole (footwall vein).

16MORC007
1m at 33.5g/t gold from 80m down hole (hanging-wall vein).

Musgrave explained that drill hole 16MORC006 was drilled to test the up-dip projection of the footwall vein while 16MORC007 was drilled 25m to the south.

The two holes intersected both the footwall and hanging-wall veins, which the company interpreted to demonstrate the continuity of the mineralisation that remains open at depth and along strike.

“This is another strong result at Break of Day,” Waugh said in Musgrave’s announcement to the Australian Securities Exchange.

“The confirmation of the twin parallel gold veins is a huge positive and we look forward to announcing further results as they come to hand.”

Musgrave indicated the RC drilling is continuing at Break of Day as part of a broader RC drill program on the Cue project, which is a Farm-In and Joint Venture Agreement with Silver Lake Resources (ASX: SLR) where Musgrave can earn up to an 80 per cent interest.

The current RC drill program is part of a larger drilling campaign that also includes drilling at the Mt Eelya copper-gold massive sulphide discovery and the Purple Rain gold prospect.

Musgrave anticipates assay results to be ready for the remainder of the drilling program over the next three to four weeks.

Email: info@musgraveminerals.com.au

Website: www.musgraveminerals.com.au

Carbine Resources announces third Mt Morgan Resource

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THE DRILL SERGEANT: Carbine Resources (ASX: CRB) created a bit of excitement at Diggers and Dealers as it moves into the final stages of a Definitive Feasibility Study on the company’s Mount Morgan gold-vopper Project in Queensland, with completion of the third of four Mineral Resource estimates.

The JORC 2012 Indicated Mineral Resource at Mount Morgan’s Shepherds Gully tailings dump has come in at 4.83 million tonnes at 0.84 grams per tonne gold for 131,000 ounces of gold (above a 0.00 g/t gold cut-off grade).

Carbine said the new Resource represents an increase in both the confidence and size of the Shepherds Gully Mineral Resource from the previously reported Inferred Mineral Resource of 3.9 million tonnes at 0.86g/t god for 106,000 ounces.

“This announcement for the Shepherds Gully tailings dump represents the third of four resource updates on the tailings dumps at Mount Morgan,” Carbine Resources said in its ASX announcement.

The company noted previous resource updates for the No 2 Mill and Mundic Gully tailings dumps were announced previously in July this year, which included results from drilling undertaken in May.

“Importantly, the total Indicated Resource for the Mount Morgan project has grown to 9.35 million tonnes at 1.12 grams per tonne gold for 335,000 ounces,” the company said.

“These updated Mineral Resources (and Red Oxide resource upgrade in progress) will be incorporated in the Definitive Feasibility Study (DFS) due for completion this quarter.”

Carbine also announced the raising of $7 million, the proceeds from which it has earmarked to enable the company to complete the Definitive Feasibility Study in September 2016 and progress to the financing and final approval stage of the project.

“We are very pleased to have attracted the interest of a number of Australian institutional investors to the company,” Carbine Resources managing director Tony James said in the company’s announcement to the Australian Securities Exchange.

“This strengthens the company’s balance sheet and shows the strong support for the potential development of the Mount Morgan project in Queensland.

“We are now fully funded through to a decision to mine which is very exciting.”

Website: www.stgm.com.au

St George Mining claims massive nickel-copper sulphide discovery at Investigators

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) attracted an audience to its booth at Diggers and Dealers by spruiking its announcement of the discovery of massive nickel‐copper sulphides from a maiden drilling program on the Investigators prospect at the company’s Mt Alexander project in Western Australia.

Two drill holes (MAD31 and MAD32) targeted separate downhole EM conductors at the Investigators prospect with both intersecting massive nickel‐copper sulphides hosted by mineralised ultramafics, which have been intruded by later granites.

MAD31 tested Anomaly 2 at Investigators and was drilled to a downhole depth of 160m, intersecting approximately 15m of ultramafic with occasional blebby and disseminated sulphides increasing downhole and then massive nickel‐copper sulphides from 112.05 metres to 113.08m downhole.

St George said the massive sulphides it encountered in MAD31 include a pentlandite vein that runs most of the length of the intersection with an average nickel value (based on field XRF analysis) of 28 pwe cent nickel.

Further details of the sulphide mineralisation intersected by MAD31 from 97m to 113.08m include:

15.05m, from 97‐112.05m, of occasional blebby and disseminated sulphides increasing downhole to 0.4m of matrix sulphides from 111.5m (spot XRF readings of the matrix sulphides average 2 per cent nickel, 1 per cent copper)

1.03m, from 112.05‐113.08m, of massive sulphides with spot XRF readings ranging 2 per cent nickel to 28.6 per cent nickel (average 7%Ni) and 0.5 per cent copper to 4.5 per cent copper (average 2.5%Cu).

Hole MAD32 was completed to a downhole depth of 92.7m to test an off‐hole DHEM conductor that was identified from drill hole MAD24 and was modelled at a depth of 50m.

MAD32 intersected approximately 12.7m of ultramafics from 42m with some blebby and disseminated sulphides and then massive nickel‐ copper sulphides, including:

11.76m, from 42m to 53.76m, of occasional blebby and disseminated sulphides increasing from 51.1m;

0.77m, from 52.76m to 53.53m, of massive sulphides with spot XRF readings ranging 1.7 to 16.4 per cent nickel (average 8%Ni) and 0.4 to 2.9 per cent copper (average 2%Cu).

“The new discoveries at Investigators and Stricklands, with evidence of exceptionally high-grade mineralisation, highlight the increasing prospectivity of the underexplored Mt Alexander project,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“The successful drilling by St George has significantly expanded the size of the high-grade nickel‐copper system in the Cathedrals Belt and established Mt Alexander as a new and significant nickel sulphide project in Western Australia.”

Website: www.stgm.com.au

Northern Star takes gold Reserves to 2M ounces

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THE DRILL SERGEANT: Northern Star Resources (ASX: NST) announced a 33 per cent increase in the company’s gold Reserves, taking them up to two million ounces.

The company declared the increase was a fillip in regards to its stated strategy to grow production to 700,000 ounces a year in 2018.

Norther Star’s Resources increased by 350,000 ounces to 9.25 million ounces with the new Resource estimate containing a 12 per cent increase in the Measured and Indicated category, taking that total to 4.9 million ounces.

The increases will fill the dent the company has made in its current Reserves, having mined some 611,000 ounces since the previous estimate was calculated a year ago.

Northern Star indicated the additional Reserves have been delivered at a cost of $50 per ounce, which it boasted to be a remarkably low figure given global transaction multiples equated to approximately $500 per reserve ounce over the past 12 months.

These revised estimates also include just one of the five discoveries made by Northern Star over the past year.

The company said it has work underway with the goal of bringing the other four discoveries into the JORC estimate.

“The fact that we are growing Reserves for $50 per ounce, with a very low level of capital intensity associated to those ounces will further strengthen our ability to maintain superior rates of return,” Northern Star Resources managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.

“This discovery cost is the foundation of our outstanding return on invested capital, which was 28 per cent in the past financial year.

“By combining this cost with our tight production costs, we maximise margins, cashflow and overall financial returns.

“At the same time, our Resource base of 9.25 million ounces shows we have a substantial inventory to underpin our mine lives and future production rates.”

Northern Star pointed out that at Jundee, where total Reserves increased by 21 per cent to 720,000 ounces, it has completed further drilling, which has discovered high-grade mineralisation in a number of areas that have not yet been included in this Resource/Reserve update due to time constraints.

The company’s current Mineral Resource and Reserve summary includes:

Group Mineral Resource Estimate of 83 million tonnes at 3.5 grams per tonne gold for 9.25 million ounces.

Group Mineral Reserve Estimate of 13.1 million tonnes at 4.7g/t gold for 2 million ounces.

These figures, which are estimated to 30 June 2016, represent JORC 2012 combined Resource for the five assets owned by Northern Star.

Email: info@nsrltd.com.au

Website: www.nsrltd.com.au

Dacian Gold increases Westralia to 900.000 ounces

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THE DRILL SERGEANT: Dacian Gold (ASX: DCN) reported a 176 per cent increase in the Measured and Indicated Mineral Resources for the Westralia deposit, part of the company’s 100 per cent- owned Mount Morgans gold project (MMGP) in Western Australia.

The Westralia deposit now has Measured and Indicated Resources of 905,000 ounces, which Dacian said would underpin a maiden Westralia Ore Reserve due later this year.

Total Mineral Resource at the Westralia deposit has increased by 101,000 ounces and is currently sitting at 8.6 million tonnes at 5.8 grams per tonnes gold for 1,621,000 ounces.

Dacian stressed the new Westralia Mineral Resource of 1.62 million ounces has an average grade of 5.8g/t gold, which is an increase of 0.7g/t gold, or 15 per cent, in the average grade compared with the previous Westralia Mineral Resource announced in 2015.

Dacian Gold also advised that for reasons known only to the company, it has renamed the Westralia Underground Mineral Resource to the Beresford Mineral Resource and the Morgans Underground Mineral Resource to the Allanson Mineral Resource.

The previously named Westralia prospect is renamed the Westralia deposit, and now comprises the following Mineral Resources: Beresford, Allanson and Morgans North.

“Our success in building a Measured and Indicated Resource of this size – now totalling over two million ounces of Measured and Indicated Resources across the Westralia deposit and Jupiter prospect – means we have ticked another key box in our strategy to become a mid-tier gold producer in 2018,” Dacian Gold Executive Chairman Rohan Williams said in the company’s announcement to the Australian Securities Exchange.

“We also have a high-grade 715,000 ounce Inferred Resource below the Measured and Indicated Resource at the Westralia deposit, which provides an immediate target for drilling to convert additional ounces into the higher-confidence Measured and Indicated categories.”

Website: www.daciangold.com.au

Metalicity receives positive results from Admiral Bay Scoping Study

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THE DRILL SERGEANT: Metalicity (ASX: MCT) announced positive results from a recently completed Scoping Study on the company’s 100 per cent-owned Admiral Bay zinc project in the Kimberley region of Western Australia.

Metalicity said the Scoping Study confirmed the view of the company Board that the Admiral Bay deposit has the potential to support a long life and low cost zinc/lead/silver operation of world class scale.

Key outcomes from the Study include:

A new geological model and Inferred Mineral Resource Estimate – approximate 30 increase in zinc equivalent (ZnEq) grade and 100 per cent increase in ZnEq contained metal;

Open stoping (with backfill) to be used as the base case mining method with recommended PFS option to evaluate longwall mining given rock properties, latest deposit geometry and further automation/cost benefits;

The ore does not currently demonstrate deleterious metallurgical behaviour and high projected metal recoveries (90 to 95%) through a conventional flotation processing route, PFS underway to optimise; and

Sealed container trucking and shipping through existing Port Hedland facilities have emerged as the preferred export path.

As a measure of viability, Metalicity explained it requires Admiral Bay to have a aspirational potential mine life in excess of 20 years at a targeted ore throughput rate of 3 to 5 million tonnes per annum.

The company believes the Scoping Study has demonstrated the Admiral Bay project is potentially viable and could achieve this hurdle rate/

Metallicity indicated it will commence of a PreFeasibility Study (PFS) on the Admiral Bay zinc project with its initial focus being to refine the preferred PFS pathway, including more detailed evaluation of specific development options and mining techniques.

While this is happening, Metalicity will be undertaking a process to seek a Joint Venture partner to participate in the PFS process and allow acceleration of the targeted Admiral Bay development timeline.

“We are excited that the Scoping Study has confirmed Admiral Bay as capable of delivering a large, long life and potentially low cost zinc and lead operation of world class scale,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“The Study has demonstrated that the project has the clear potential to achieve Metalicity’s required hurdle rate.

“The strategic nature of Admiral Bay needs to be understood in the context of the long-term fundamentals for zinc and lead markets.

“The recent and imminent closures of world-class, large scale zinc mines are expected to create a significant supply shortage in the global zinc market.

“There are very few large, long-life and potentially low cost zinc projects located in stable, first world mining jurisdictions that can be brought into production to address this supply shortage.

“Most industry analysts are forecasting strong zinc price fundamentals in the near future and the company is now focussed intently on progressing the Pre-Feasibility Study at Admiral Bay in conjunction with seeking a joint venture partner for the project.”

Website: www.metalicity.com.au

Tyranna Resources encounters highest gold grades to date at Campfire Bore

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THE DRILL SERGEANT: Tyranna Resources (ASX: TYX) announced assay results from the final 13 reverse circulation (RC) holes drilled at the Camp Fire Bore prospect, located near the Challenger gold mine and part of the company’s Jumbuck gold project in the Northern Gawler Block of South Australia.

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

Drilling of holes 16CBRC021 to 16CBRC033 was undertaken to test the northern extension of gold mineralisation at Campfire Bore in an area previously only tested by broad spaced scout RAB drilling by previous explorers.

Tyranna explained that this was also the first prospect to be drilled using re-interpreted geochemical data, adding it considered the results to be highly encouraging.

The latest results have recorded further intercepts, which include:

16CBRC033
3 metres at 8.2 grams per tonne gold;

16CBRC022
1m at 37.8g/t gold; and

16CBRC029
1m at 30.5g/t gold.

Tyranna explained these gold intersections extended the mineralised strike extent by 750m to define a minimum total strike length of 1.25km at Campfire Bore.

The company declared the northern most intersection of 1m at 30.5g/t gold has demonstrated the structure is still open to the north.

As drilling has not yet exceeded 50 vertical metres, the company is convinced depth potential remains open, providing it with an extensive set of new, deeper targets for drilling in the second half of 2016.

“These encouraging results prove our understanding of this gold province is progressing,” Tyranna Resources managing director Bruno Seneque said in the company’s announcement to the Australian Securities Exchange.

“I am extremely optimistic about the next round of drilling.”

Tyranna indicated drilling will re-commence within the current quarter with a program being planned to test multiple targets generated by the latest round of drilling at Mainwood-Greenewood and Campfire Bore.

This will include testing of these structures at depth and along strike as well as numerous other targets derived from the re-interpretation of geochemical data.

Email: info@tyrannaresources.com.au

Website: www.tyrannaresources.com.au

Empire Resources confirms shallow high-grade gold at Penny’s Find

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THE DRILL SERGEANT: Empire Resources (ASX: ERL) has completed a RC grade control drilling program at the company’s Penny’s Find gold deposit located northeast of Kalgoorlie in Western Australia.

Empire explained the program was designed to provide grade control information to approximately 30m depth from surface in the planned open pit, where the company expects to commence mining this quarter.

A total of 86 holes were drilled, returning numerous high grade-gold intersections at shallow depths, which Empire said confirmed its original geological interpretation.

Better results include:

PGC010
6 metres at 3.52 grams per tonne gold from 11m depth;

PGC032
7m at 11.39g/t gold from 27m depth;

PGC036
5m at 13.58g/t gold from 32m depth;

PGC039
3m at 13.44g/t gold from 35m depth;

PGC040
5m at 6.33g/t gold from 23m depth;

PGC047
11m at 5.36g/t gold from 28m depth;

PGC056
12m at 4.94g/t gold from 4m depth;

PGC060
19m at 5.85g/t gold from 3m depth;

PGC064

8m at 2.77g/t gold from 3m depth; and

PGC071

3m at 10.93g/t gold from 9m depth.

“The completion of the first round of grade control drilling has provided further strong confidence in the geological model being used for Penny’s Find,” Empire Resources managing director David Sargeant said in the company’s announcement to the Australian Securities Exchange.

“This program comes just twelve months after Empire resumed management of the project.

“With an average open-pit grade of 4.62 grams per tonne gold to a depth of 80 metres, this project is an excellent production opportunity for Empire given the current high gold price.

“We also believe there is substantial upside at Penny’s Find once an ongoing feasibility study into development of the underground resource has been completed.

“This along with exploration potential at depth bodes well for the long term future of the project.”

Empire Resources holds a 60 per cent direct interest in the Penny’s Find gold project with the remaining 40 per cent interest held by unlisted Brimstone Resources.

Website: wwwresourcesempire.com.au

Peel Mining extends Wirlong copper discovery

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THE DRILL SERGEANT: Peel Mining (ASX: PEX) has extended the Wirlong copper discovery at the company’s Cobar Superbasin project in New South Wales.

Recent drilling completed by Peel, and funded by JOGMEC, through an earn-in agreement, has intersected multiple mineralised intervals, extending the known mineralisation, which remains open in all directions.

Peel said the mineralisation it has encountered to date demonstrates the typical geochemical, geological, mineral and alteration assemblages of Cobar-style deposits.

Latest results include:

WLRCDD024
26 metres at 1.21 per cent copper, 5 grams per tonne silver from 227m
5m at 1.14 per cent copper, 3g/t silver from 260m
2m at 1.24 per cent copper, 5g/t silver from 278m
10m at 1.01 per cent copper, 4g/t silver from 288m
1m at 4.81 per cent copper, 10g/t silver from 556m
1m at 3.91 per cent copper, 11g/t silver from 617m
4m at 1.1 per cent copper, 3g/t silver from 723m

WLRC026
2m at 3.8 per cent copper, 11g/t silver from 36m
9m at 1.27 per cent copper, 4g/t silver from 255m

WLRCDD027
16m at 0.56 per cent copper, 4g/t silver from 57m
10m at 0.74 per cent copper, 5g/t silver from105m

WLRCDD028
9m at 1.29 per cent copper, 7g/t silver from 412m
19m at 1.36 per cent copper, 6g/t silver from 432m
1m at 6.96 per cent zinc, 0.58 per cent lead, 6g/t silver from 546m

“Significant copper mineralisation at Wirlong has now been defined over approximately 200 metres strike, and from near surface to more than 500 metres below surface,” Peel Mining said in its ASX announcement.

“Mineralisation remains open up and down dip and along strike.

“Initial interpretation of results suggests a possible easterly offset to the mineral system to the north, as evidenced by highly anomalous copper mineralisation returned from the upper part of WLRCDD027.

“Future activity at Wirlong will be focused on extending the known mineralisation and targeting potential higher grade structures.

“Downhole electromagnetic surveying is planned for the near term.”

Email: info@peelmining.com.au

Website: www.peelmining.com.au

MOD Resources drills strong copper results at T3 in Botswana

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THE DRILL SERGEANT: MOD Resources (ASX:M OD) announced it has encountered wide copper/silver intersections within the Phase 1 resource target area at the T3 prospect in the Kalahari Copper Belt, Botswana.

T3 is part of a Joint Venture between MOD Resources (70%) and AIM-listed Metal Tiger (30%).

Results from the drilling include:

MO-G-18D
30.4 metres at 1.3 per cent copper and 23 grams per tonne silver from 112.6m downhole, including 5.5m at 3.7 per cent copper and 71g/t silver from 121m;

MO-G-19D
10.3m at 1.2 per cent copper and 3g/t silver from 106.7m downhole;
16m at 1.5 per cent copper and 22g/t silver from 131m downhole.

MO-G-20D
20m at 3.2 per cent copper and 77g/t silver from 130m downhole, including 6.2m at 7.8 per cent copper and 209g/t silver from 136.5m downhole; and
7.8m at 0.8 per cent copper and 8g/t silver from 119.6m downhole.

MO-G-21D
5.5m at 1.2 per cent copper and 31g/t silver from 155.5m downhole; and
14m at 1.4 per cent copper and 27g/t silver from 164m downhole; and

MO-G-22D
3.7m at 1.9 per cent copper and 15g/t silver from 168m downhole; and
6.6m at 1.3 per cent copper and 30g/t silver from 205m downhole (Hole stopped in mineralisation).

“These results not only confirm the presence of substantial bonanza grade copper/silver veins within the wide zones of T3 mineralisation, but also demonstrate the potential for extensions to the resource area in several directions.” MOD Resources general manager exploration Jacques Janse van Rensburg said in the company’s announcement to the Australian Securities Exchange.

“The continuity of the high-grade veins is currently unknown, but they have now been intersected in several holes right across T3 and may prove to be an important economic component of the deposit.”

MOD highlighted the key outcomes of the recent results to be:

A bonanza vein intersection in MO-G-20D (6.2m at 7.8 per cent copper and 209g/t silver) has a contained metal value greater than US$500 per tonne, or approx. 10.4 per cent copper equivalent using current metal prices;

Two western drilling traverses shows the mineralisation may shallow to only around 10 degrees in this area opening up potential to the west and south of this area; and

Intersection of the T3 host sequence with highly anomalous copper/silver/zinc in first hole 2km east of T3 provides encouragement for further mineralisation in this area.

Email: administrator@modresources.com.au

Website: www.modresources.com.au