THE DRILL SERGEANT: S2 Resources (ASX: S2R) has received assay results from its first two drill holes carried out at the company’s 100 per cent-owned Skellefte project in Sweden.

S2R said the drilling had confirmed the presence of zinc mineralisation at the Svan Vit prospect on the Skellefte project.

Down hole electromagnetic (DHEM) surveying in these holes have shown the main part of the targeted EM conductor to be located off the drill section and that the first two holes intersected the western margin of this EM conductor.

A third, deeper, hole did not intersect mineralisation but DHEM in this hole has identified a second EM conductor that has not yet been drill tested.

The first hole (SSVA160001) clipped the top of the ground EM conductor model and intersected a narrow zone of mixed sulphide mineralisation and intersected:

0.55 metres at 1.49 grams per tonne gold, 45g/t silver from 25.3m; and

1.05m at 2.87 per cent zinc, 5g/t silver from 88.7m.

The second hole (SSVA160002), drilled 90 metres down dip of the first through several zones of mixed sulphide mineralization and intersected:

0.55m at 2.23 per cent zinc from 164m;

3.7m at 1.75 per cent zinc, 5.3g/t silver from 170.2m; and

5.05m at 3.15 per cent zinc, 6g/t silver, 0.2 per cent copper from 184.6m.

“The mineralised intervals in these two drill holes broadly coincide with the position of the EM conductor since redefined in a subsequent downhole EM survey,” S2R said in its ASX announcement.

“The first two drill holes appear to have intersected the northern and western margin of the conductor as modelled from downhole EM, and the central part of it has not yet been tested.”

“The outcomes of the downhole EM suggest that the three holes drilled to date have only tested the margins of a potentially much more extensive zone.

“Further drilling will be required to adequately test the Svan Vit prospect given that two of these holes intersected low grade zinc and silver bearing VMS-style mineralisation on the margin of the upper conductor, and the third missed both conductors.

“Drilling will resume as soon as possible later in the year when the ground re-freezes and enables access.”

Email: admin@s2resources.com.au

Website: www.s2resources.com.au

THE DRILL SERGEANT: Ausgold (ASX: AUC) has claimed a new gold discovery at the company’s 100 per cent-owned Katanning gold project (KGP) in Western Australia.

The announcement follows the receipt of the first batch of assay results from a recent AC drilling program carried out at the Datatine prospect, located north of the Jinkas open pit at the KGP.

A total of 112 AC holes were drilled to test a one square kilometre coherent gold anomaly defined from surface soil geochemistry, which is coincident with a structural target identified by geophysical data.

Highlights from the results include:

BSAC1343
22 metres at 3.67 grams per tonne gold from 4m to the end of hole, including 4m at 16.9g/t gold from 4m;

BSAC1344
17m at 1g/t gold from 16m to the end of hole;

BSAC1340
18m at 0.86g/t gold from 0m to the end of hole, including 4m at 3.41g/t gold from 8m;

BSAC1341
18m at 0.44g/t gold from 0m to the end of hole, including 1m at 5.67g/t gold from 17m; and

BSAC1342
12m at 0.71g/t gold from 12m to the end of hole, including 1m at 3g/t gold from 23m.

“The ore-grade tenor of results delivered from this potential new discovery at Datatine is impressive and is a direct result of the application of our new exploration model,” Ausgold geology manager Melanie Sutterby said in the company’s announcement to the Australian Securities Exchange.

“We have now successfully demonstrated the potential for further discoveries in the KGP region; the implication in terms of exploration across Ausgold’s tenure is considerable.

“The new results confirm the scope for major new discoveries in the Katanning region amongst a growing portfolio of regional and near mine targets in the company’s under-explored ground position.

“Ausgold’s perseverance and tenacity has resulted in an excellent outcome for our shareholders and we look forward to continuing successful drilling at Datatine and other prospects at the KGP.”

Email: info@ausgoldlimited.com

Website: www.ausgoldlimited.com

THE DRILL SERGEANT: Agrimin (ASX: AMN) has completed a geotechnical study for the company’s 100 per cent-owned owned Mackay sulphate of potash (SOP) project.

The company described the study to be a de-risking milestone for the project, identifying brine extraction and pond development as the largest barriers to the commercial viability of brine potash projects globally.

“The outcomes of the geotechnical study confirm that the natural lakebed surface in the south-western area of Lake Mackay has favourable geotechnical conditions for the application of un-lined solar evaporation ponds,” Agrimin said in its ASX announcement.

“The study also confirmed that the in-situ lakebed materials are suitable to construct the evaporation pond walls as cut-to-fill structures.

“Importantly, the above assumptions imply that the ponds can be constructed using the lowest cost construction method possible.”

Agrimin explained the preliminary pond design is based on a total area of approximately 50 square kilometres to accommodate the anticipated annual brine supply of 68,000,000 cubic metres from the proposed trenching network.

The company said the total plan area is comparable to the area used for evaporation ponds throughout Western Australia’s solar salt industry, ranging from 16sqk2 at the Lake MacLeod salt operation to 100sqkm at the Dampier salt operation.

“The Mackay project will extract large volumes of hypersaline brine from a trenching network on the lakebed surface,” Agrimin continued.

“This brine will be transferred into large-scale solar evaporation ponds in which the brine will be concentrated to facilitate the precipitation of potash salts.

“After a drying period, the potash salts will be harvested from the ponds as feed material for the processing plant and converted into SOP.”

Email: admin@agrimin.com.au

Website: www.agrimin.com.au

THE DRILL SERGEANT: St George Mining (ASX: SGQ) has claimed confirmation of nickel‐copper sulphide mineralisation at a further two EM conductors recently drill tested at the company’s Mt Alexander project.

St George completed drill holes MAD17 and MAD19 to test two separate downhole EM conductors located in the northern section of the Cathedrals orospect below the Cathedrals ultramafic.

MAD17 was completed to a downhole depth of 200m and was designed to intersect an EM plate at 167m downhole.

MAD19 is situated 50m to the north‐east of MAD17, and was also completed to a downhole depth of 200m to test another EM plate at 153m downhole.

Both MAD17 and MAD19 intersected nickel‐copper sulphide mineralisation.

According to St George MAD17 intersected approximately 6.5 metres of ultramafic‐hosted sulphide mineralisation from 164.5m to 170.9m which comprises:

4.5m, from 164.5 to 168.9m, of moderate increasing to strong disseminated sulphides (averages 0.65 per cent nickel, 0.4 per cent copper) with some interstitial stringer sulphides (average 2.1 per cent nickel, 1 per cent copper); and

2m, from 168.9 to 170.9m, of stringer‐matrix and massive sulphides up to 15cm thick (very variable spot XRF readings that average over the 2m interval at 4.3 per cent nickel and 3.2 per cent copper)

St George indicated the metal values it quoted in its ASX announcement are based on field XRF analysis, stressing they are preliminary only.

The company said a conclusive determination of the nickel and copper content of the sulphide mineralisation will be confirmed when laboratory assays are available.

St George did say, however, that based on the intersection angle of the drilling and interpreted EM plate, the down‐hole widths are interpreted to approximate true widths.

MAD19 intersected approximately 3.12m of ultramafic‐hosted disseminated and stringer‐matrix sulphide mineralisation from 156.71m to 159.83m including intervals of massive sulphides from 156.94 to 157.11m and from 158.77 to 159.13m.

St George explained the sulphide textures and mineralogy observed are similar to the intersection in MAD17, with the overall interval comprising approximately 40 per cent sulphides.

XRF analysis has not yet been completed for MAD19.

St George has now commenced drilling of MAD20 at the Stricklands prospect, located within the Cathedrals shear zone and approximately one kilometre west‐southwest of the Cathedrals prospect.

This is the first ever drilling at Stricklands, where six EM conductors are planned for testing in this program.

“Our drill program is continuing to deliver outstanding results with another two EM conductors confirmed as nickel‐copper sulphide mineralisation,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“Drilling has now commenced at the Stricklands prospect where six previously untested EM conductors in prospective geological positions will be drilled.

“We have an excellent opportunity to make a discovery at Stricklands and the drilling results from these targets will be highly anticipated.”

Website: www.stgm.com.au

THE DRILL SERGEANT: Metalicity (ASX:MCT) informed the market that it has detected structural gold targets, resulting from a recent geochemical soil sampling program carried out at the company’s 100 per cent-owned Rocky Gully project, located in the Albany Fraser Belt of Western Australia.

The geochemical soil sampling program consisted of 1,573 samples, collected in Road Reserves across the entire project area of 1,200 square kilometres at Rocky Gully.

The program detected a number of new gold anomalies, including up to 24ppb gold, across the project, which Metalicity explained was approximately ten to twenty times previous background levels.

The company considers the latest results to be of some significance and as such has accelerated follow up in fill sampling to define the anomaly ready for drill testing.

These new targets build on previously identified gold targets where anomalous gold in soil results of 24ppb up to 187ppb gold were reported, which the company claim to be similar to the initial Tropicana gold in soil anomalies of 25ppb up to 237ppb detected by the Tropicana JV before the discovery of a 6.2 million ounce gold deposit.

“The previous and current gold in soil anomalies are considered significant and we have built a comprehensive geochemical database in the exploration for a world class structural gold deposit, using Tropicana as a model which is hosted in the same geological terrain,” Metalicity managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.

“Planning is underway for infill soil sampling programs followed by drill testing.”