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.

Manas increases Shambesai Resource

THE DRILL SERGEANT: Manas Resources has upgraded the Indicated and Inferred Mineral Resource at the Shambesai gold prospect at the company’s 100 per cent-owned Isfairamsai License area in the Kyrgyz Republic.

The Shambesai Resource has been increased to 11.6 million tonnes at 2.1 grams per tonne gold for 766,000 ounces of gold at 0.5 grams per tonne gold cut-off.

“This is an increase of approximately twenty per cent on the previous Shambesai Mineral Resource estimate of 645,000 ounces, with a marked increase in tonnes and ounces,” Manas said in its ASX announcement.

“Most importantly, all of the 120,000 ounce increase has been attributed to the high‐value oxide resource, or an increase of forty per cent including reclassified material.

“Sixty per cent of the Resource ounces are now classified as oxides, with 54 per cent of total Resources in the Indicated category, and the mineralisation remains open to the west and at depth.

“The global Mineral Resource reportable under the JORC code for the South Kyrgyz gold project now stands at 1.25 million ounces of gold.”

The latest upgraded Shambesai gold Mineral Resource is the result of an infill and extensional drilling program where 12,535m of diamond drill core was completed in August 2011, combined with the results of an infill program completed by Manas in 2010.

The company’s main focus for the Shambesai drilling has been on areas it considers critical to expanding the shallow oxide resource, expanding the western pit boundary and increasing the economics of the pit optimisation for the Feasibility Study.

“These drill programs deliberately targeted lower grade oxide material with the view of adding additional ounces of gold as the low‐cost processing methodology for Shambesai provides for extra ounces immediately translating into additional cash flow,” the company said.

Manas puts total discovery costs for the Shambesai Mineral Resource at approximately US$9 per ounce.

The company is set to commence a program of infill grade‐control drilling at the high‐grade far‐eastern area targeting an upgrade to this portion of the oxide Mineral Resource.

Drilling is also being planned to infill areas along the shear zone to follow up on results of 33.7m at 10.7g/t gold and 21m at 9.71g/t gold, and at depth on the western extensions to follow up the most recent result of 54m at 2.9g/t gold from within an 87m long mineralised zone at depth.
 
Drilling is ongoing at other prospects including Obdilla, Ulugtau and Tashbulak.

Deep Yellow drills uranium

THE DRILL SERGEANT: The wholly owned subsidiary company of uranium explorer Deep Yellow has received chemical assay results from its ongoing drilling program at the Ongolo Alaskite deposit and its satellite MS7 in Namibia.

Deep Yellow said the results achieved by Reptile Uranium Namibia had confirmed additional high-grade intercepts.

“In just over a month we have more than doubled MS7’s area with these high-grade, wide intersections,” Deep Yellow managing director Greg Cochran said in the company’s announcement to the Australian Securities Exchange.

“Clearly, the possibility that MS7 may ultimately join up with Ongolo is steadily increasing.

“However, as a result of the success at both locations, we have decided to delay the update of the Ongolo Resource in order to continue Phase 2 drilling and also to first complete a maiden JORC compliant resource estimate for MS7.”

The drill program at the Ongolo Alaskite deposit continues despite missing the scheduled cut-off date for the next JORC Resource update 0n 23 September.

Step-out reconnaissance drilling over two kilometres strike from Ongolo to the MS7 prospect will now continue through to the summer break in mid-December.

Results from drilling so far include:

  • 10 metres at 853 parts per million uranium from 72 metres and 9 metres at 824 parts per million uranium from 127 metres;
  • 30m at 727ppm uranium from 109m;
  • 15m at 696ppm uranium from 137 metres; and
  • 18m at 429ppm uranium from 41m and 12m at 417ppm uranium from 132m.

Deep Yellow has submitted the results of RC drilling carried out to date at the MS7 prospect for a maiden JORC Resource estimate, which it anticipates to be completed before the end of September.

“Drilling has returned consistently good results with growing recognition that the geology of the prospect closely replicates the main Ongolo resource area and may, with further drilling, join up with it,” Deep Yellow said.

“From regional geology it is believed that the uranium bearing alaskites are within the Khan formation and mineralisation usually seems to be concentrated when the marble acts as an impermeable layer.”

Results from the RC drilling include:

  • 18 metres at 491 parts per million uranium from 48 metres and 12 metres at 563 parts per million uranium from 78 metres;
  • 5m at 446ppm uranium from 5m; and
  • 5m at 434ppm uranium from 111m.

The company said it intends to continue resource and delineation drilling at the Omahola project area utilising both RC and diamond drilling.

A vertical diamond hole will be drilled at MS7 for later geotechnical and metallurgical testing.

Mt Isa hits Burkina gold

THE DRILL SERGEANT: Mt Isa Metals has received high-grade gold assay results from phase 2 reverse circulation (RC) drilling at the company’s Bantou gold prospect located in south‐west Burkina Faso.

“Drilling completed to date at the Bantou prospect has now defined near‐surface gold mineralisation over an approximate 600 metre strike length,” Mt Isa Metals said in its ASX announcement.

“The new drilling results have also confirmed gold mineralisation in a second structure located approximately 30 metres in the hangingwall (to the west of) the Bantou Main Lode.

“Gold mineralisation at the Bantou prospect is open in all directions – i.e. along strike to the north and south, and at depth below the limit of current drilling.”

The Bantou gold prospect lies within the company’s Kongolokoro project area and was originally identified by a zone of shallow northeast‐trending artisanal gold workings that extend over an approximate 1,000m strike length.

MT Isa completed an initial scout drilling program at Bantou in late 2010, which recorded near‐surface gold mineralisation.

This included intersections of:

  • 8 metres at 80.32 grams per tonne gold from 36m; and
  • 5m at 6.12g/t gold from 60m.

The second phase of drilling recently completed was carried out to follow up encouraging drill results achieved by the company in its first drilling phase.

According to the company the phase 2 drilling results include significant near‐surface gold intersections in multiple structures.

Drill intersections recorded on the Main Lode structure, carried out directly below the main trend of artisanal workings, include:

  • 4 metres at 6.03 grams per tonne gold from 66 metres;
  • 9m at 16.79g/t gold from 91m;
  • 16m at 10.20g/t gold from 17m; and
  • 5m at 6.55g/t gold from 109m.

 
Drill intersections recorded on the Bantou Hangingwall Structure include:

  • 6 metres at 7.35 grams per tonne gold from 44 metres;
  • 6m at 5.27g/t gold from 8m;
  • 11m at 2.59g/t gold from 7m; and
  • 11m at 2.63g/t gold from 48m.

“Mineralisation on both the Main Lode and Hangingwall structures is open along strike to the north and south of current drilling,” Mt Isa said.

“Mineralisation is also open at depth below the limit of current drilling – approximately 100 metres vertical depth.”

MT Isa said it intends to conduct additional RC drilling of the Bantou prospect in the forthcoming field season.

Globe spins out Mozambique drill results

THE DRILL SERGEANT: Africa-focused resource company Globe Metals & Mining has received the first batch of analytical results from a recently-completed Main Fluorite – Rare Earth Element (REE) Zone drilling program at the company’s Mount Muambe project in Mozambique.

Results for the initial eight reverse circulation drill holes from the Main fluorite prospect have demonstrated multiple zones of high-grade fluorite mineralisation at Mount Muambe.

Significant grades and widths of REE mineralisation were intersected, with many zones having high Heavy Rare Earth Oxide (HREO) to Total Rare Earth Oxide (TREO) ratios.

Globe Metals said that it expects further drilling will continue to return strong results.

Highlights from the initial eight RC holes show wide, high-grade, near surface fluorite zones including:

–    21 metres at 26.7 per cent fluorite, including 9 metres at 41.1 per cent fluorite; and

–    30m at 28.4% fluorite, including 15m at 38.0% fluorite and 44m at 1.0% TREO, including 10m at 2.0% TREO.

“Fluorite has seen a significant price hike in recent times,” Globe Metals said in its ASX announcement.

“Included in the list of 14 raw materials labelled “critical” by a European Union expert group, it is no surprise that China – by far the largest consumer and responsible for more than 50% of production globally – has adopted new policy designed to limit the export of fluorite resources.”

Five holes in the recently completed program were selected for REE analyses.

In all these holes, the company said it had encountered both LREO and HREO-enriched zones.

The amount of significant REE results returned has prompted the company to submit all samples taken from the fluorite zone for routine REE analysis.

Further drilling results are expected to follow over the next four months as the drilling program of around12,000 metres continues.

Globe Metals will be focussing most of the remaining drilling to be completed this year on pure REE targets including, but not limited to those, in zones DD and EE outside of the Main Fluorite Zone.

The company has already earned 20% of the project and by the end of 2011 will have earned 51% through its exploration programs at Mount Muambe.

Globe Metals is also currently running exploration activity across a number of other projects it has, which are at an earlier stage of development than Mount Muambe.

The company is earning up to an 80% interest in the Machinga rare earth project in southern Malawi, and can earn up to a 90% interest in the Mount Muambe REE – Fluorite project.

Discovery discovers copper‐silver Mango

THE DRILL SERGEANT: Botswana-focused Discovery Metals has reported some encouraging results from recent exploration activity at its recently discovered Mango prospect.

Mango is situated within the company’s 100% owned Prospecting Licences located in the Kalahari Copper belt in north‐west Botswana.

The Mango prospect is located in the Boseto Zone and sits less than 25 kilometres from the company’s 100% owned Boseto copper project’s concentrator.

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

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

“Mango is an exciting new discovery within the vicinity of the Boseto copper project that will be explored further, with additional diamond, reverse circulation and RAB drilling planned over the next few months,” Discovery Metals managing director Brad Sampson said in the company’s announcement to the Australian Securities Exchange.

Six diamond drill holes have been completed over a strike length of approximately one kilometre at the north‐eastern end of Mango.

All drill holes intersected copper‐silver mineralisation between 30 metres and 140 metres below surface.

Best diamond drilling intercepts include:

  • 13 metres at 1.8 per cent copper and 22 grams per tonne gold, vertical hole; and
  • 11 m at 1.7% copper and 19 g/t gold, inclined hole.

Additional, RAB drilling carried out at Mango intersected oxide mineralisation in several holes with the best results of 10,450 parts per million copper in a hole eight kilometres south‐west of known mineralisation and 7,260ppm copper one kilometre south‐west of known mineralisation.

Discovery considers these RAB results demonstrate potential for copper‐silver mineralisation over eight kilometres of strike length to the south‐west of the current diamond drill holes at the Mango prospect.

The company has also commenced drilling close to the south‐west extremity of the Mango prospect, about 36km south‐west of the recently-drilled area.

Two diamond holes have been completed to date with geological logging confirming that one hole intersected copper‐silver mineralisation.

Discovery is still waiting on the assay results from this drilling.

A reverse circulation drill rig and a diamond core drill rig are currently working in this area.

“The mineralisation at the Mango prospect may offer potential for economic open pit or underground mining,” the company said in the announcement.

“Diamond, RC and RAB drilling program continue at Mango prospect and further results are anticipated in November 2011.”

Alloy commences Horse Well drilling

THE DRILL SERGEANT: Perth-based exploration play Alloy Resources has commenced a 3,500 metre air-core drilling program at its Horse Well project in Western Australia.

The purpose behind the drilling program is to enable the company to test the north of its recent Warmblood discovery on a 100 metre by 50 metre or 25 metre hole spacing.

The drilling is focused on an area where Alloy has interpreted the mineralisation to potentially join with mineralisation at the Filly South West prospect over a 500 metres strike length.

The Filly South West prospect is a high-grade Indicated Resource of 90,400 tonnes at 7.85 grams per tonne gold for 22,800 ounces of gold.

Alloy will also carry out drilling on its Mustang prospect in order to define the geometry and extent of mineralisation over a 400 metre long area.

The company said that it is very optimistic about the potential for further discoveries at both Warmblood and Mustang.

It also holds optimism for the under-explored nature of additional geological trends that lie adjacent to these and other prospects within the Horse Well project area.

The upcoming program of drilling is the first phase of a planned integrated exploration program the company has scheduled leading up to December.

The program includes:

–    A larger air-core drill program of approximately 6,000 metres in November 2011;

–    Initial soil geochemical sampling program covering 10 kilometres strike south of the Warmblood discovery;

–    Ongoing review of all historical exploration data and generation of new targets; and

–    Due diligence review of data from holders of prospective tenements in the region.

“This drilling program will focus on the northern extent of the Warmblood discovery zone and drill targets to the south of the discovery zone at Mustang,” Alloy Resources said in its announcement to the ASX.

“The company has also initiated heritage clearance programs for targeted areas adjacent to Warmblood, and these areas will be drill tested as soon as clearance has been obtained.”

Vector intercepts high-grade gold

THE DRILL SERGEANT: Vector Resources has received the first batch of assay results from a high priority drilling campaign being undertaken as part of the Phase 1 RC program at the company’s Mt Dimer project in Western Australia.

Priority holes of the Phase 1 drilling have targeted near mine locations of Lightning, Anomaly 2, Silver Wing and Golden Slipper South.

Mt Dimer tenements cover more than 2,029 hectares and the project currently hosts a JORC compliant measured, indicated and inferred resource of 377,200 tonnes at 5.8 grams per tonne gold for 70,230 ounces of contained gold.

The results of the drilling program received to date have identified substantial mineralisation at depth and along the strike of Lightning, while the drilling at Anomaly 2 has identified a significant intercept that will require further delineation for resource construction,” Vector Resources said in its announcement to the ASX.

“It is anticipated that these results will increase the current resource.”

Of the priority one targets already drilled, 16 holes totalling 1,418 metres of sample results are still pending for Silver Wing and Golden Slipper South.

Lightning was discovered during the sterilisation drilling for the Golden Slipper waste dump.

Vector said the drilling at Lightning has demonstrated mineralisation continues at depth and along strike.

Intercepts of note achieved during the drilling include:

–    6 metres at 24.81 grams per tonne gold inclusive of:-

–    1m at 136g/t gold, 4m at 20.98g/t gold, 7m at 13.07g/t gold, 10m at 14.39g/t gold, 9m at 10.18g/t gold, 7m at 5.28g/t gold, 18m at 2.86g/t gold, and 6m at 3.99g/t gold.

Anomaly 2 contains several zones of mineralisation and lies approximately one kilometre to the east of Lightning.

Vector said the current drilling had enhanced its understanding of the geology and mineralisation of the Anomaly 2 prospect;

Significant intercepts received from Anomaly 2 include:

–    4 metres at 21.71 grams per tonne gold from 50 metres inclusive of:-

–    1m at 11.85g/t from 50m, 1m at 28.90g/t from 51m, 1m at 19.40g/t from 52m, and 1m at 26.70g/t from 53m.

Corazon continues nickel hits

THE DRILL SERGEANT: Canada-focused nickel play Corazon Mining has intersected further nickel / copper sulphide mineralisation.

The hits have come during an ongoing drilling program the company is conducting on geophysical (EM) conductors at its EL Deposit, located within the Lynn Lake nickel sulphide project in Canada.

The latest drilling supports Corazon’s interpretation that the EM conductors it has recently defined are likely to be substantial zones of high-grade nickel / copper sulphide.

The company has defined two strong EM conductors, which it considers may represent the same mineralised zone and extending it over 50 metres to 100 metres and at depth.

“These anomalies extend to the full effective range of the geophysical method, into areas not tested by drilling and may extend further,” Corazon said in its announcement to the ASX.

“The true dimensions of the mineralisation associated with the EM conductors have yet to be determined.

“Drilling has intersected a relatively flat upper bounding fault, in contact with high-grade mineralisation.

“This is a truncated profile for the mineralisation historically defined at the EL Deposit, which has a high-grade core of between 80 metres and 120 metres in diameter, central to disseminated mineralisation of up to 200 metres in diameter.”

So far Corazon has drilled three holes into an EM conductor located below the EL Mine.

Although these holes have tested only a small portion of the target, they have intersected high-grade nickel / copper mineralisation.

The discovery hole, which the company announced to the market in June, returned 23.75 metres at 3.34 per cent nickel, 1.54 per cent copper and 0.079 per cent cobalt and defined the northern extents of the conductor target.

Massive sulphide intercepted in the second hole that was announced in August intersected 2.4m of massive sulphide beneath the fault.

The hole Corazon is currently drilling currently has targeted an area away from the edge of the EM anomaly.

This hole intersected the upper bounding fault at 723.96m and immediately intersected semi-massive to disseminated nickel and copper sulphides for the next 32.72m.

Within this, two zones with strong sulphides exist, including 1.44m of semi-massive sulphide immediately below the bounding fault, and 6.97m of semi-massive and sulphide breccia from 739.26m.

Corazon said that it was significant that the latest drilling had returned some of the highest recorded nickel grades in the Lynn Lake mining camp.

“The predictability of the location of the mineralisation, coincident with the EM conductors, provides conclusive support that the EM anomalies recently defined represent semi-massive to massive sulphides, and hence high nickel and copper mineralisation,” the company said.

Corazon will continue to drill the conductor continue subsequent to the completion of the current hole, which has a target depth of around 900m.

White Rock continues Mt Carrington drilling

THE DRILL SERGEANT: White Rock Minerals is currently undertaking a drilling program on its 100 per cent owned Mt Carrington project in northern New South Wales.

The program has been designed to expand the current shallow Inferred Resource base of the project of 190,000 ounces of gold and 10 million ounces of silver.

Drilling has been spread across a number of targets within the Mt Carrington project area.

Positive assays received from the first hole of a five-hole program at the White Rock silver deposit so far include results that the company has said confirms the continuity of strong silver mineralisation with widths and grade similar to what it has intersected in previous drilling.

Result from the White Rock deposit include:

–    22.5 metres at 70 grams per tonne silver from 9 metres and 28.6 metres at 69 grams per tonne silver from 28.6 metres;

–    37m at 79g/t silver from 21m and 15m at 65g/t silver from 138m;

–    81m at 82g/t silver from 82m;

–    21m at 61 g/t silver from 127m; and

–    51m at 60 g/t silver from 98m.

White Rock Minerals said the results enhance the prospect that drilling at White Rock North will lead to the definition of a new near‐surface silver Inferred Resource in addition to the existing eight million ounce silver Inferred Resource already defined at White Rock.

Assay results for the remaining 4 holes are expected in late September.

At the Lady Hampden silver‐gold deposit the company continued with the second phase of step‐out drilling with the first two holes of the nine‐hole program confirming further silver mineralisation based on field XRF and visible analysis.

“These two holes are located 300 metres to the east and down plunge of the Resource,” the company said in its announcement to the ASX.

“Assay results are expected in October and this program is anticipated to result in further extensions to the Inferred Resource.”

Earlier this month White Rock Minerals had reported it was undertaking further drilling at the Strauss‐Kylo gold deposits.

Drilling of potential extensions to the Strauss and Kylo gold Resources will be undertaken in October, as follow up to the positive results returned from holes drilled below the Strauss pit.