Orrex hits Lakeside gold

THE DRILL SERGEANT: The results are back in from Orrex Resources’ first reverse circulation (RC) drilling program at the Lakeside prospect, on its Golden Mile South project in Western Australia.

The campaign consisted of eleven holes, four of which intersected gold mineralisation, for a total of 1,300m of reverse circulation drilling.

Orrex said the holes delineated a mineralised and altered shear zone consistent with those hosting major gold deposits in the Eastern Goldfields.

Prior to this program there had only ever been five RC holes testing bedrock drilled on the entire 100 square kilometre project area.

The company said it was excited about the results from this initial drilling and that it was also an encouraging outcome for both the Lakeside prospect and for the entire Golden Mile South project.

Orrex considers the results to have positive implications for its other targets at Golden Mile South targets.

It will now weigh up the benefits of infill drilling at the targets established at greater Lakeside prior to commencing any further RC testing at the Lakeside prospect.

The company’s thinking is that it may be more beneficial to work up the other targets at Lakeside with the intention to carry out a more comprehensive RC program on the greater Lakeside targets at one time.

Gold mineralisation was intersected in four drill holes along the central line of drilling within a 30 metre wide zone of alteration.

The best mineralisation was intersected in one hole where three, 6m to 14m wide, zones of gold mineralisation averaged between 0.7 grams per tonne and 1.59 grams per tonne gold, including 3m at 2.83 grams per tonne, from 30m, and 3m at 2.47grams per tonne gold from 54m.

Orrex said the RC program has given it a better understanding of the structural controls and style of mineralisation at Lakeside.

Because the campaign was focused to the north and south of the central line and was drilled down dip, Orrex said it is unable to determine the strike length of the structure at his time.

“We are pleased with the results of this inaugural RC program, Orrex Resources managing director Sonja Felderhof said in the company’s announcement to the Australian Securities Exchange.

“Hitting gold in bedrock on our first fresh rock program is exciting and highly encouraging not only for the Lakeside prospect but for the rest of the Golden Mile South project.

“The results validate our belief that the project is highly prospective for deposits similar to those in the region.

“The historic approach to exploration on the project area was focussed on discovering near surface alluvial deposits and consequently missed the opportunity to test the surface geochemical anomalies into bedrock.

“We will continue our evaluation on the Lakeside prospect and our other targets in the area to determine the best program going forward at Lakeside.

“We look forward to see what further work will realise at the Lakeside prospect, and other targets in the Golden Mile South project.”

Pacrim drills into Kelly prospect

THE DRILL SERGEANT: Pacrim Energy has received results from a recently completed program of RC drilling on the Kelly prospect located within its 100 per cent-owned Redcliffe gold project near Leonora in Western Australia.

The program was carried out to infill and extend zones of gold mineralisation the company had previously identified to a vertical depth of approximately 100 metres.

A total of fifteen RC holes were drilled for 1,614 metres on four sections to the north of where earlier drilling had taken place at Kelly.

Pacrim said the latest results from its current program had extended the size of the mineralised system with a number of broad gold intercepts.

Assays returned from five metre composite samples confirmed broad zones of mineralisation of up to:

85 metres at 0.78 grams per tonne gold, containing higher grade intercepts within, including 10 metres at 4.78 grams per tonne gold.

Other gold intercepts received from this program to date include:

–    85m at 0.62 g/t gold, including 5m at 2.78 g/t gold;

–    85m at 0.78 g/t gold, including 5m at 3.13 g/t gold and 5m at 2.24 g/t gold;

–    79m at 0.75 g/t gold, including 10m at 2.42 g/t gold;

–    60m at 1.19 g/t gold, including 10m at 4.78 g/t gold;

–    35m at 0.81 g/t gold, including 5m at 4.34 g/t gold; and

–    35m at 0.51 g/t including 5m at 2.64 g/t gold.

“The results from this program importantly provide further support of an extensive zone of gold mineralisation with the potential to provide a substantial feed source for a regional processing facility or heap leach operation that could be proceed independently or in conjunction with the exploitation of the higher grade Golden Terrace South resource,” Pacrim Energy said in its ASX announcement.

“Single metre sampling of the mineralised zones is to be undertaken.

“The company is confident of building on the existing gold resource base on the Redcliffe project.”

Pacrim has identified the Kelly prospect to be a large gold mineralised system.

RC drilling has been carried out at the prospect over a strike length of one kilometre and AirCore drilling to the south has extended the mineralised zone a further kilometre.

Higher grade gold intervals from previous RC drilling at Kelly included:

–    10m at 4.91g/t gold, 2m at 11.1g/t gold, 4m at 16.2g/t gold, 9m at 2.84g/t gold, and 6m at 2.77g/t gold.

The company said it considers these intercepts represent potential higher grade gold zones which are open to the north.

“Kelly represents a large exploration target with potential to deliver significant (multi million) tonnages of mineralised material,” the company said.

“The size and extent of mineralisation is still being assessed by the company to further build the geological model, in to working to add to the existing Redcliffe project resource base.”

Invictus begins drilling campaign

THE DRILL SERGEANT: Invictus Gold has commenced the maiden drill program at the Scartwater prospects located on the company’s 100 per cent-owned Drummond Basin project in Queensland.

The company will be conducting a program of 4,000 metres of reverse circulation (RC) drilling.

This will be carried out over the Scartwater prospects as well as the recently identified Whiteglow prospect.

“The Scartwater prospects, called West Porhyry and East Porphyry, were recognised in modest outcrops and in related anomalous gold-in-soil responses together with high-grade rock chip assays of up to 32 grams per tonne (one ounce per tonne),” Invictus Gold said in its ASX announcement.

According to Invictus, the rock chip assays it has received are associated with disseminated pyrite in altered porphyries.

The two porphyry bodies are each about 500m long and up to 300m wide.

“The East Porphyry is coincident with a magnetic anomaly and both porphyries are associated with elevated potassium responses in airborne geophysical data,” the company said.

“These geophysical and geochemical signatures are very similar to those at many porphyry-style deposits in Queensland, as at the Mount Wright and Mount Leyshon Mines about 100 kilometres to the north, and at the large Anthony porphyry-hosted molybdenum deposit about 100 kilometres to the south.”

The Whiteglow prospect is said to comprise a gold and silver-in-soil anomaly that measures 1,500m long and 500m wide.

At the northern end of the soil anomaly a rock chip sample from a mineralised and altered porphyritic rock returned an assay of:

–    7.3 grams per tonne gold and 200 grams per tonne silver.

Invictus indicated this northern area is close to three previous holes it has drilled which returned intercepts of:

–    34 m at 0.3 g/t gold from 24 m, 18 m at 23 g/t silver, and 0.6% lead from 26m.

The area tested by these previous drill holes lies outside the soil anomaly identified by Invictus, and that will be the focus of the company’s drill program.

Azumah hits two new prospects

THE DRILL SERGEANT: Azumah Resources has received some promising results from two of its prospects located between the adjacent flagship Kunche and Bepkong deposits at the company’s Wa gold project located in northwest Ghana.

Wide spaced RC drilling carried out by Azumah at the Aduane target has returned intercepts including:

–    14 metres at 2.31grams per tonne gold from 13 metres; and

–    16m at 2.34g/t gold from 23m.

At Bepkong South, drilling returned a best intercept of:

–    6m at 15.60g/t gold from 53m.

The Aduane prospect is located one kilometre north-east of the Kunche deposit and extends for 300m along a north-northeast trend.

The Bepkong South prospect is 500m due south of the main open pit the company has planned for Bepkong and immediately east of a planned satellite pit.

“These latest exploration results support Azumah’s belief that more ‘blind’ satellite gold deposits like the Bepkong deposit are likely to be discovered in the immediate vicinity of the planned gold plant.” Azumah Resources managing director Stephen Stone said in the company’s announcement to the Australian Securities Exchange.

“The thickness of the best intercepts from Aduane are particularly impressive and bode well for the delineation of another mineable deposit.”

Azumah has a follow-up RC drilling campaign planned to be carried out in the area this month once it has completed a detailed review of all historical and recent exploration data.

This data will include the results of a recently completed dipole-dipole Induced Polarisation survey.

The company is in the final stages of a Feasibility Study for a plus-one million tonnes per year, greater than 100,000 ounce per year gold operation, with most key components of the study now being finalised.

Azumah said the completion of the study depends largely upon the receipt of final assays from recent infill drilling programs to enable updated resource models and pit optimisations as well as finalising production schedules.

The company’s geologists are currently reviewing all recent and historical exploration data and finalising exploration programs and budgets for the next exploration season.

More drill rigs in addition to the five already committed to the project are likely to be contracted.

An aircore rig is already back on site and about to drill several new targets.

Azumah is also establishing a third field camp in the northern extremities of its 3,200 square kilometre licence area as much of this area has not been explored to any reasonable level.

Emmerson makes second Tennant Creek discovery

THE DRILL SERGEANT: Tennant Creek-focused gold-copper explorer Emmerson Resources has discovered its second high-grade copper deposit.

This new discovery called Goanna is located within its 100 per cent-owned Tennant Creek Mineral Field leases in the Northern Territory.

It also lies within, what Emmerson describes as the “highly prospective” Gecko Structural Corridor.

The discovery of Goanna follows in the tracks of the company’s announcement of its discovery at Monitor, which it announced in August.

Drilling at the Goanna project has intersected high-grade copper including:

–    21 metres at 2.63 per cent copper from 297 metres down hole, including 12 metres at 3.89 per cent copper from 299 metres, or 7 metres at 4.96 per cent copper from 299 metres.

Earlier this year, Emmerson flew the world’s most powerful helicopter (HeliTEM) geophysical survey over five discrete blocks within its 3,000 square kilometre project.

“The high-grade copper discovery at Goanna, our second significant copper discovery in a month, shows the value and importance of the HeliTEM survey in more directly pinpointing mineralisation that contains sulphides, in this instance, high grade copper sulphides,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“The Goanna and Monitor discoveries have important implications to the exploration potential of the rest of the field, as the style and signature of these discoveries are very different to the historic ironstone hosted deposits.

“Thus HeliTEM has provided some new insights into the TCMF and has the potential to unlock a new generation of sulphide rich deposits within our project area.

“Importantly we believe there is excellent potential to intersect gold mineralisation beneath or peripheral to these identified copper zones, as the majority of deposits within the TCMF have gold mineralisation below the copper zones and; that the drilling at both these projects intersected high grade bismuth mineralisation which is typically a pathfinder element to the gold.”

Emmerson originally identified Goanna from a series of HeliTEM anomalies within the Gecko Structural Corridor.

A combination of additional ground geophysics, mainly Induced Polarisation, and new geological and structural concepts indicated potential outside of the traditional magnetic targets.

Mineralisation at Goanna is around 200m east of the known mineralisation, remains open in all directions.

Emmerson considers the Monitor project to represent a totally new ore position within the Gecko Structural Corridor.

A previously reported drill hole at the Monitor project, located around 2km to the west of Goanna suggests a similar style of mineralisation was overlooked by previous exploration companies.

“We now believe these shear zones extend well beyond the Gecko mine area and that their relationship to the HeliTEM anomalies, which are developed over some six kilometres along the Gecko corridor, indicate excellent potential for additional discoveries,” Emmerson said in its announcement.

Sheffield confirms talc intersections

THE DRILL SERGEANT: Sheffield Resources announced high-grade talc results from drilling at its Moora Talc Belt project located in Western Australia’s Mid West region.

Assay results from a 1,238 metre core drilling program completed intersected talc at all six prospects drilled.

Furthermore, significant widths of talc are defined at three of the prospects; Fowlers, Prowaka South and Tilleys.

Sheffield Resources managing director, Bruce McQuitty said the drilling results are a boost to the company’s exploration campaign in the Moora Talc Belt.

“These results confirm the chemical characteristics of our talc are comparable to those of Luzenac’s Three Springs mine which is renowned for its premium grade microcrystalline talc,” McQuitty said in the company’s announcement to the Australian Securities Exchange.

“Our goal is to discover similar premium quality talc deposits capable of supporting long-life direct shipping mining operations.”

Sheffield’s 1,152 square kilometre Moora Talc Belt project contains over twenty known talc occurrences.

The company’s strategy is to evaluate the quality and size potential of each occurrence before committing to a resource drill-out on the highest priority targets.

Prowaka South is located 11 kilometres south of the Three Springs mine and contains talc of a very similar style.

Two distinct zones of talc mineralisation were intersected by the recent drilling. The upper zone comprises numerous narrow intervals of high grade talc with very low iron values, including:

–    2.13m at 31.8% magnesium oxide, 61.6% silica, 0.25% iron oxide, 0.56% calcium oxide from 82.0m.

The lower zone also consists of widths of talc mineralisation, containing some secondary carbonate veining and brecciation.
–    12.4m at 30.4% magnesium oxide, 52.3% silica, 0.68% iron oxide, 4.38% calcium oxide from 180.3m.

A single drill hole at the Tilleys prospect intersected high-grade talc including:

–    18.6m at 31.1% magnesium oxide, 61.5% silica, 1.56% iron oxide, 0.13% calcium oxide from 45.6m.

Sheffield considers Tilleys to be a substantial sized target with mineralisation remaining open in most directions.

Two drill holes at Fowlers intersected up to 81.1m thickness of weathered and partially weathered talc with exceptionally low calcium oxide levels from near surface.

Overall, Fowlers has elevated iron levels, however within the deposit there are zones of lower iron, for example:

–    11.4m at 30.2% magnesium oxide, 62.5% silica, 1.02% iron oxide, 0.02% calcium oxide from 0.9m;

–    25.8m at 30.7% magnesium oxide, 62.0% silica, 1.54% iron oxide, 0.06% calcium oxide from 45m; and

–    41.8m at 30.3% magnesium oxide, 62.3% silica, 1.49% iron oxide, 0.03% calcium oxide from 3m.

Sheffield said it intends to evaluate the distribution of these low iron zones within the deposit.

As much of the iron occurs as oxides on fractures, it may be possible to reduce the iron content through beneficiation processes.

Several narrow high grade intersections of pearly white talc were returned from drilling at Nivens, including:

–    1.15m at 31.4% magnesium oxide, 62.9% silica, 0.66% iron oxide, 0.08% calcium oxide from 53.2m.

Sheffield is encouraged by the high quality of the talc at Nivens and is considering further step-out drilling around the prospect.

At Buckingham weathered talc with low iron levels was intersected from a shallow depth:

–    7.60m at 28.7% MgO, 62.5% silica, 0.86% iron oxide, 0.04% calcium oxide from 25.3m.

Further exploration will target the talc horizon below the base of oxidation.

At Haigs a narrow zone of weathered talc with low iron levels was intersected:

–    1.50m at 28.9% magnesium oxide, 63.7% silica, 0.96% iron oxide, 1.13% calcium oxide from 25.6m.

Doray extends Andy Well

THE DRILL SERGEANT: Diamond drilling at Doray Minerals, Andy Well project (Doray 80%) has extended the high-grade Wilber Lode to over 600 metres.

This represents a 200 per cent increase in the strike length when compared with the current resource.

A number of holes from the current drilling program have also returned gold intersections.

The high-grade Wilber Lode gold deposit was discovered by Doray in 2010 at Andy Well located 45 kilometres north of Meekatharra in Western Australia.

According to Doray it stands amongst the highest grade undeveloped gold deposits in Australia.

Recent drilling consisted of two diamond holes, which tested the Wilber Shear Zone 450 metres south of the southern boundary of the current resource.

These holes intersected mineralised quartz vein, with visible gold, which the company has interpreted to represent the southern continuation of the high-grade Wilber Lode deposit.

A further hole confirmed the continuation of strong mineralisation at depth below the current resource.

Results of note from the current drilling campaign include:

–    0.9 metres at 39.85 grams per tonne gold from 382.3 metres;

–    1.3m at 50.55g/t gold from 164.75m;

–    0.8m at 117g/t gold from 279.8m; and

–    1m at 200g/t gold from 210.6m;

Doray Minerals managing director Allan Kelly said the results continued to emphasise the quality of the opportunity at the Andy Well project.

“Our current drilling campaign aims to test the depth and strike extents of the Wilber Lode, along with completing infill drilling required for a significant increase in the resource by the end of this year,” Kelly said in the company’s announcement to the Australian Securities Exchange.

“Our step out drilling continues to intersect the Wilber Lode and we have added substantially to the depth and strike extents of the high-grade gold mineralisation, especially when compared with the initial resource published in February this year.”

The Wilber Lode remains open at depth and down plunge to the south.

Doray’s 2011-12 exploration budget includes approximately 60,000m of drilling to be completed at Andy Well this financial year.

Laconia scores high at Lennons Find

THE DRILL SERGEANT: Perth based explorer Laconia Resources recently completed a 42 hole, 1,939 metre Reverse Circulation (RC) drill program at its Lennons Find base metals project located near Marble Bar in Western Australia.

According to Laconia the drilling has intersected significant, high-grade zinc and silver mineralisation.

The company has received initial assay results for drilling carried out on the Hammerhead and Bronze Whaler prospects.

Highlights from the drilling included:

–    4 metres at 174 grams per tonne silver, 0.23 grams per tonne gold, 2.35 per cent zinc, 0.08 per cent copper, 1.04 per cent lead from 150 metres.

At the Bronze Whaler prospect, high grade silver mineralisation intersected near surface and along strike, including:

–    5m at 117g/t silver, 0.66g/t gold, 0.67% zinc, 0.23% copper, 1.52% lead from 10m.

The Lennons Find project currently has a JORC Code Inferred Resource at the Hammerhead prospect of 853,000 tonnes at 115 grams per tonne silver, 7.7 per cent zinc, 0.7 per cent copper, 1.8 per cent lead.

The drill program targeted infill and deeper drilling at the Hammerhead prospect.

The intercepts were encountered outside the boundary of the current resource, which the company said confirmed its view that it will be able to increase the resource base at Lennons Find.

Laconia said it was also encouraged by the high precious metal values intersected which confirms the high tenor of the grade in the current resource.

The program was designed to also test along strike at the Bronze Whaler and Tiger prospects.

Assay results from shallow RC drilling at the Tiger prospect at Lennons Find are expected to be available for release in early October.

“Our maiden drill program at Lennons Find has been an outstanding success and has provided the company with enormous encouragement that further drilling will significantly add to the project’s current resource base,” Laconia Resources managing director Ian Stuart said in the company’s announcement to the Australian Securities Exchange.

“After acquiring the project in March this year, we have made rapid progress in our aim to increase its resource tonnage, and the intersection of high-grade silver near surface along strike at the Bronze Whaler prospect has been particularly pleasing.”

Laconia acquired a 95% interest in the Lennons Find project from Jabiru Metals Limited in March.

At the same time it announced the acquisition of the nearby Yandicoogina base metals project from Shaw River Resources.

The two projects are located approximately 40 kilometres from Marble Bar on the southern edge of the Mt Edgar Granitoid Complex, in the East Pilbara region of WA.

Laconia has ongoing structural mapping underway that it anticipates will provide further insight into the geological architecture controlling mineralisation.

Additional resource delineation and exploration drilling is planned for the new-year.

On receipt of the outstanding assay results from the Tiger prospect, Laconia will commence resource modelling incorporating all new data.

Drilling encourages Discovery

THE DRILL SERGEANT: Discovery Metals has released assay results for three diamond drill holes at the Plutus deposit, which is part of the company’s 100 per cent-owned Boseto copper project in Botswana.

The company carried out the drilling in order to confirm the continuity of mineralisation between the base of a planned open pit and a series of deeper holes, which were reported to the market in June.

The Boseto copper project is currently under construction and is scheduled to commence production in the first half of 2012.

Discovery plans production of approximately 36,000 tonnes of copper and more than one million ounces of silver per annum over an initial 15 year mine life.

“The results from these infill holes at Plutus suggests a zone of high grade copper‐silver mineralisation exists, with potential for economic underground mining at depth over a long strike length of at least 1,400 metres at the Plutus deposit,” Discovery Metals managing director Brad Sampson said in the company’s release to the Australian Securities Exchange.

“It is our intention to leverage offs the results of the Definitive Feasibility Study for underground mining (currently being undertaken on the Zeta Deposit and due for completion in December 2011), to better assess the economic potential for an underground mining operation at Plutus.”

Discovery is confident these latest assay results complement those it received from the 11 hole deep drilling program in June.

These confirmed copper‐silver mineralisation at the Plutus deposit extended to approximately 350 metres in depth along the approximately seven kilometres of strike length the company tested at the time.

A zone of higher grades and thicker copper‐silver mineralisation was defined at the north‐eastern end of the Plutus deep drilling.

Three additional holes were then drilled to test the mineralisation at an intermediate depth of approximately 200m within this higher grade zone.

Mineralised intercepts from this drilling include:

–    7 metres at 1.4 per cent copper and 12 grams per tonne silver, including 5.1 metres at 1.9 per cent copper and 16 grams per tonne silver;

–    13.4m at 0.9% copper and 8g/t silver, including 1.4m at 2.1% copper and 27g/t silver; and

–    3.9m at 1.4% copper and 17g/t silver, including 1.9m at 2.1% copper and 28g/t silver.

All three drill holes intersected copper‐silver mineralisation at a vertical depth of approximately 200m below surface.

Discovery said that high-grade copper mineralisation that has been identified is open both along strike and at depth.

The company said it intends to assess the potential for underground mining at Plutus deposit follow completion of a definitive feasibility study for underground mining at the nearby Zeta deposit in late 2011.

“Successful delineation of economic underground mineral resources at Plutus will provide additional mining opportunities to those considered in the Boseto Development Plan and may contribute to increasing both the scale and/or life of operations at Boseto and also enable enhanced mine scheduling flexibility,” the company said.

Discovery will conduct further drilling below the 200m level at Plutus once the assessment for the potential of underground mining is complete.

Kimberley Metals encouraged by drill hits

THE DRILL SERGEANT: Kimberley Metals has received the initial results from a 6,000 metre reverse circulation drilling program it currently has underway at its Sorby Hills project, located near Kununurra in the East Kimberley region of Western Australia.

According to Kimberley Metals, Sorby Hills is the largest undeveloped silver-lead deposit at open cut depth in Australia.

The project is jointly owned by Kimberley Metals (75%) and China’s largest lead and silver smelter, Henan Yuguang Gold and Lead Company (25%).

The results that have been received so far have been for the initial 24 holes drilled in the program, which consists of 111 holes.

This intitial drilling has been focused on the south and central portions of the D-E deposit and have returned some impressive high-grade intersections including but not limited to:

–    11 metres at 18.5 per cent lead and 164 grams per tonne silver;

–    12m at 18.1% lead and 168g/t silver; and

–    15m at 12.7% lead and 114 g/t silver.

Kimberley Metals said it was encouraged by the initial results and is confident that the drilling program will lead to a significant conversion of Inferred to Indicated Resource category and an upgrade in metal content for the D-E deposit.

Drilling is ongoing and a large number of additional assay results are still pending, with visual logging and field portable XRF results indicating further high grade silver and lead mineralisation.

Kimberley’s current strategy is to focus on shallow high grade mineralisation, less than 70m deep, that will be amenable to low cost open pit mining operations in C-D-E deposits.

The company recently a completed detailed gravity program along the mineralised corridor that outlines the structural/lithological controls on mineralisation.

This showed the mineralisation appears to follow the flanks of gravity highs and highlights a number of new targets previously untested by drilling and outside of current Resources.

“The high grade and shallow nature of the mineralisation at the D-E Deposit provides an ideal location for initial low cost, high margin mining operations at Sorby Hills from 2013,” Kimberley Metals executive chairman Jim Wall said in the company’s announcement to the Australian Securities Exchange.