Doray Minerals hits high-grades during Wilber extension drilling

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THE DRILL SERGEANT: Doray Minerals (ASX: DRM) has completed its first underground diamond drilling program on extensions to the Wilber Lode deposit at the company’s Andy Well gold project in Western Australia.

According to Doray the drilling encountered some encouraging high-grade results, which it said has confirmed continuation of high-grade mineralisation below the current mine design and Mineral Resource boundary.

Doray indicated the new results are to be incorporated in a recalculation of the Wilber Mineral Resource.

This program, consisting of 36 holes, is the first underground exploration drilling campaign conducted at Andy Well, since Doray started underground mining in May 2013.

Highlights include:

WBUG0782
0.9 metres at 155.2 grams per tonne gold from 246.9 metres downhole (mdh);

WBUG0785A
0.6m at 52.2g/t gold from 291.4mdh;

WBUG0753
0.7m at 55.9g/t gold from 131.2mdh;

WBUG0757
0.5m at 130.7g/t gold from 185.2mdh;

WBUG0751
2.1m at 21.2g/t gold from 183.9mdh; and

WBUG0815
0.6m at 25.7g/t gold from 185mdh.

“Following the completion of this program, an underground diamond drill rig has continued at the Wilber underground mine to test further extensions to high-grade gold mineralisation,” Doray Minerals explained in its ASX announcement.

“Targets will be tested at the Wilber and Judy zones, as suitable drill positions become available.

“It is intended that this underground Resource extensional drilling will carry over into the new financial year, and continue on an ongoing basis.”

The company has also received all necessary permits for the proposed Suzie open pit, where it is currently completing a RC grade control drilling program.

Results from this drilling will be used in the final design of the mine at Suzie, which will utilising the mining fleet currently on site at Andy Well.

Email: info@dorayminerals.com.au

Website: www.dorayminerals.com.au

Sheffield Resources completes Thunderbird PFS

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THE DRILL SERGEANT: Sheffield Resources (ASX: SFX) has received the results of a Pre-feasibility Study (PFS) that was carried out on the company’s 100 per cent-owned Thunderbird mineral sands project, located near Derby in northwest Western Australia.

Sheffield said the results from the PFS have confirmed the Thunderbird project will deliver strong cash margins over an initial mine life of 32 years.

The company also indicated it expects the results to improve with the inclusion of further infill drilling results.

The infill drilling was designed to focus on reducing costs and increasing margins, and have yet to be incorporated in the study.

“This PFS has confirmed that Thunderbird will deliver strong financial returns over a very long mine life,” Sheffield Resources managing director Bruce McQuitty said in the company’s announcement to the Australian Securities Exchange.

“One of the aspects that sets Thunderbird apart from other mineral sands projects globally is the substantial projected annual production of zircon.

“The project is highly leveraged to the zircon price and with few major new zircon projects in the global development pipeline, Sheffield is well placed to meet future demand.

“Thunderbird is located in a stable jurisdiction, has an export solution and is well placed to take advantage of expected product supply gaps that are aligned with the initial planned production profile.”

The PFS results show, at a planned mining rate of 18 million tonnes per annum after ramp-up, average annualised production over a 32-year mine life is estimated to be 114,000 tonnes of zircon, 439,000 tonnes of Ilmenite, and 30,000 tonnes of HiTi84 leucoxene.

At assumed pricing of US$1,375 per tonne for zircon, US$155 per tonne for ilmenite and US$580 per tonne for HiTi84 over the life of the mine, and an exchange rate of $US0.78, the Thunderbird project is anticipated to generate average operating cash flows of $134 million per annum.

The life-of-mine revenue is forecast to be $9.5 billion and C1 cash costs over the life of mine are $5.2 billion, giving a LOM revenue-to-cost ratio of 1.82:1 and average annual EBITDA of $120 million.

Website: www.sheffieldresources.com.au

Rox Resources confirms Sabre nickel discovery

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THE DRILL SERGEANT: Rox Resources (ASX: RXL) claims to have confirmed its recent nickel discovery at the Sabre prospect on the company’s 100 per cent-owned Fisher East nickel project north of Kalgoorlie in Western Australia.

Rox has received RC results from the Sabre prospect, which are following up aircore results reported earlier this year.

RC drilling results include:

MFEC099
1 metre at 3.2 per cent nickel from 97m;

MFEC108
1m at 1.1 per cent nickel from 135m, and 3m at 1.2 per cent nickel from 141m; and

MFEC110
2m at 1.1 per cent nickel from 147m;

“With this latest drilling at Sabre we have now confirmed yet another nickel sulphide discovery in the Fisher East nickel province,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“Our exploration is continuing and we are confident of finding even more deposits along this ultramafic belt.”

Rox has now commenced a further RC drilling program, from which it said it has encountered even better drill intercepts.

Assays are pending from this drilling, hwoever the company indicated visual results as:

MFEC112
8m of disseminated nickel sulphides in a 24m thick ultramafic unit;

MFEC113
8m of nickel sulphides, with 1m of massive nickel sulphide at the basal contact followed by 6 to 7m of disseminated nickel sulphides in ultramafic (Portable XRF analyses up to 3 per cent nickel);

MFEC115
9m of matrix and semi-massive nickel sulphides in a 12m thick ultramafic (Portable XRF analyses up to 4 per cent nickel); and

MFEC116
6m of disseminated nickel sulphides.

“What drilling is showing is that better mineralisation is present to the north, where the aircore results were anomalous for PGEs,” Mulholland said.

“We are certainly looking forward to receiving the assays from these RC holes, and are now planning deeper drilling to follow the mineralisation down into the modelled EM conductive zone.”

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

Metals of Africa commences Resource definition drilling

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THE DRILL SERGEANT: Metals of Africa (ASX: MTA) has commenced drilling at the company’s Montepuez Central graphite project in the Cabo Delgado graphite province of Mozambique in East Africa.

The program will target areas of near‐surface, high-grade mineralisation at the project area and has been designed to deliver a maiden JORC 2012 Resource Estimate.

The drill program follows on from the company’s maiden drilling campaign carried out in December last year at the Montepuez project, which intersected zones of high-grade graphite mineralisation, including:

145.59 metres at 9.6 per cent total graphitic content (TGC) and 0.12 per cent vanadium from 34m, including up to 33.8 per cent TGC and 0.26 per cent vanadium.

“Our first drill program came up with the goods including an oxide zone grading at 14.75 per cent TGC,” Metals of Africa managing director Cherie Leeden said in the company’s announcement to the Australian Securities Exchange.

“During the next few months of drilling we are aiming to expand upon our database in order to define a maiden JORC Resource.

“We are focused on delivering a shallow, high-grade oxide Resource as the basis of progressing development of the project in the most cost effective and time efficient manner whilst delivering value for shareholders.”

Website: www.metalsofafrica.com.au

Kin Mining updates Leonora gold project Resource

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THE DRILL SERGEANT: Kin Mining (ASX: KIN) has reported completion of a JORC 2012-compliant Mineral Resource Estimation audit at the three main project areas of the company’s Leonora gold project in Western Australia.

The three areas Mertondale, Cardinia and Raeside have undergone review and data compilation taking the total Mineral Resources at the Leonora gold project (LGP) to:

11.825 million tonnes at 1.9 grams per tonne gold for 722,300 ounces of gold.

The Mertondale mining centre consists of six deposits which after audit procedure and data compilation have delivered total Resources of: 5.59 million tonnes at 2.2g/t gold for 395,000 ounces.

The Cardinia delivered a Bruno-Lewis-Kyte Resource of: 3.4 million tonnes at 1.3g/t gold for 139,000 ounces.

Finally, the Mineral Resources Estimation across three deposits at the Raeside area has come in at 1.57 million tonnes at 2.6g/t gold for 134, 000 ounces.

“The team have been very busy over the last few months evaluating the resources within the Leonora gold project,” Kin Mining managing director Trevor Dixon said in the company’s announcement to the Australian Securities Exchange.

“We are now in a position where the hard work has paid off and are confident that these resources stand up and are now 2012 JORC-compliant.

“There still remains scope for smaller deposits to be included into the resource base and the geo’s are working through that now.

“The current resource base of 11.825 million tonnes at 1.9 grams per tonne for 722,300 ounces of gold is an excellent platform for Kin to advance the project to the Pre-feasibility stage.”

Kin indicated it has now commenced further evaluation of drill data in key areas within the LGP with the intention of converting remaining projects to resource status to add to the current 2012 JORC-compliant resources.

Email: info@kinmining.com.au

Website: www.kinmining.com.au

Ramelius Resources gets Kathleen Valley go-ahead

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THE DRILL SERGEANT: Ramelius Resources (ASX: RMS) has declared ‘All Systems Go’ at the company’s Kathleen Valley gold project, located north of Leinster in Western Australia.

Ramelius has received the final outstanding statutory approval to commence mining at the project and has quickly moved to begin site mobilisation and infrastructure.

Open pit mining is expected to commence by 1 July 2015 with first ore being trucked to the Checker mill at Mt Magnet later in the September 2015 Quarter.

“As planned, a key element of our production strategy has fallen into place with final approvals received from the relevant authorities, allowing project commencement in the current June 2015 Quarter,” Ramelius Resources chief executive Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“Our selected open pit contractor, Watpac, has commenced mobilisation to site and we are now finalising other related contracts and agreements.

“In the current environment, it is pleasing to be able to kick off a new project with the associated employment and royalty benefits for the state, as well as the strong early cashflows that a high-grade, low cost gold project like Kathleen Valley will deliver.

“Ramelius also looks forward to finalising arrangements for the nearby Vivien gold project, to allow for formal underground mining commencement, in the near future.”

Email: info@rameliusresources.com.au

Website: www.rameliusresources.com.au

Gold Road confirms Smokebush mineralisation

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THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) announced it has confirmed gold mineralisation and the orientation of a mineralised structure at the Smokebush Dolerite Target the company discovered in March this year.

The confirmation has come through a program of follow‐up Reverse Circulation (RC) drilling at the Smokebush Dolerite Target, which occurs in the Riviera‐Smokebush gold camp scale target, part of the company’s South Yamarna Joint Venture with Sumitomo Metal Mining Oceania.

Sumitomo is earning up to a 50 per cent interest in the JV.

Gold Rod’s initial interpretation of mineralisation was based on discovery hole 15SYRC0034, which the company said suggested a moderate west dipping shear zone of unknown true width.

A recent program of three RC holes, in combination with down‐hole imagery has now confirmed a steep south‐west dipping shear zone striking to the north‐west as the host to mineralisation.

Gold mineralisation was intersected in RC hole 15SYRC0040 with an intercept of:

36 metres at 0.55 grams per tonne gold from 138m, including four separate higher‐grade sub‐vertical lode structures greater than 0.88g/t gold.

The discovery hole 15SYRC0034 was also extended after originally ending in mineralisation, adding a further:

8m at 3.57g/t gold from 186m, to produce a total intercept of:

67m at 3.09g/t gold from 127m.

Gold Road said the estimated true width of the gold mineralisation is now 25 metres.

The company now has diamond drilling planned to target the shear zone immediately north and south of holes 15SYRC0034 and 15SYRC0040 to provide additional information on the mineralisation characteristics, host rock zonation, and orientation of the structure.

This drilling will be completed in the September 2015 Quarter.

“We are excited to have confirmed gold mineralisation and orientation of a significant shear zone with this recent drilling,” Gold Road Resources executive director Justin Osborne dais in the company’s announcement to the Australian Securities Exchange.

“This provides a very prospective target for further work with the first diamond drill program to be drilled on the Joint Venture area being approved by Gold Road and our partner, Sumitomo.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

Dacian reveals new Resource for Heffernans gold discovery

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THE DRILL SERGEANT: Dacian Gold (ASX: DCN) has released a maiden Mineral Resource estimate for its Heffernans gold discovery, located within the Jupiter prospect, which is situated within the eastern half of the company’s 100 per cent-owned Mt Morgans project west of Laverton in Western Australia.

The Heffernans Resource has added a further 709,000 ounces to the Mt Morgan project, taking its Resource to 24.4 million tonnes at 2.6 grams per tonne gold for 2.1 million ounces of gold.

The Heffernans Resource estimate comprises a higher grade component of:

13.7 million tonnes at 1.4g/t gold for 625,000 ounces above a 0.5g/t gold lower cut-off grade; and

A lower grade:

6.7 million tonnes at 0.4g/t gold for 84,000 ounces above a 0.3g/t gold lower cut-off grade and below a 0.5g/t gold cut-over grade.

According to Dacian, 70 per cent of the 709,000 ounce maiden resource estimate is in the Indicated Mineral Resource category.

538,000 ounces of the Mineral Resource (or 76 per cent) occurs within 200 metres of the surface.

The Mineral Resource inventory for the Jupiter prospect now exceeds
780,000 ounces.

Dacian indicated it has commenced a Scoping Study at Mt Morgans to assess combining the new 780,000 ounce Jupiter prospect with the high-grade 850,000 ounce underground Westralia prospect as separate ore sources feeding a single processing facility.

“The combination of the large, high-grade underground Westralia Mineral Resource and the new near-surface Heffernans Mineral Resource provides Dacian with an excellent opportunity to consider the potential of multiple feed sources to a single centralised processing facility,” Dacian Gold said in its ASX announcement.

“To that end, Dacian has commenced work on a Mt Morgan project Scoping Study (MMSS) aimed at evaluating the potential for a large stand-alone gold operation.

“The MMSS will include ongoing drilling and project evaluation work which will potentially lead into a full feasibility study aiming for completion at the end of CY2016.”

Website: www.daciangold.com.au

Tawana Resources claims new DSO mineralisation discovery

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THE DRILL SERGEANT: Tawana Resources (ASX: TAW) has claimed discovery of new high-grade mineralisation at the company’s 100 per cent-owned MEL1223/14 Mofe Creek South licence in Liberia.

The recently-acquired Zaway South prospect has delivered grades of up to 61.6 per cent iron Direct Shipping Ore (DSO) mineralisation, and coarse-grained, friable itabirite mineralisation over a strike greater than 4.5 kilometres.

Tawana said it has defined new high-grade mineralisation of potential DSO grade and quality over a 900m by 250m area, which it considers to enhance prospectivity for further DSO discoveries.

According to the company’s release the newly-defined mineralisation remains open to the east and is coincident with a 2km-long hill, where Tawana believes potential remains for additional itabirite mineralisation to be defined.

A further combined strike length of coarse-grained itabirite greater than 4.5km has been delineated within the adjacent mineralised zones within this area.

The company went on to say the discoveries within its new licence area, collectively represent just one of four high-priority target areas defined within the overall Mofe Creek southern licence area.

The company’s confidence has been bolstered with itabirite mineralisation defined, which it indicated to possess similar geological characteristics to the 61.9 million tonnes at 33 per cent iron maiden resource estimate it has established at the Gofolo Main and Zaway deposits located on adjoining Licence MEL 12029.

“To define DSO grade mineralisation at surface within our new tenement, is a very encouraging result for the company,” Tawana Resources executive chairman and chief executive officer Wayne Richards said in the company’s announcement to the Australian Securities Exchange.

“This represents an exciting development opportunity and enhances the potential for further DSO discoveries within the tenement.

“This likewise vindicates the exploration rationale for a potential Bomi Hills analogue, which historically produced in excess of 50 million tonnes of DSO from a mine geographically located within 35 kilometres of our Mofe Creek project area.

“The potential to add value to the project and expand the project’s current resource at a low incremental cost is extremely compelling.”

Tawana is advancing its exploration program within the new tenement (MEL 1223/14) in support of its current strategy of completing low-cost, value-accretive exploration work with its in-house exploration and geological teams.

Email: admin@tawana.com.au

Website: www.tawana.com.au

Gold Road pleased with Gruyere metallurgical test work results

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THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) has completed comminution and gold metallurgical extraction test programs on mineralised rock samples from the company’s Gruyere gold project in Western Australia.

The metallurgic test work is part of a Pre-Feasibility currently underway at Gruyere.

The company said the current results have confirmed assumptions used in the previous Scoping Study and are now available for input into the PFS.

The comminution test work was conducted between November 2014 and January 2015, while the gold metallurgical extractive test work took place between January and March 2015.

Accoring to Gold Road the gold extraction tests produced overall average gold recoveries of between 92.5 per cent and 97.5 per cent and gravity gold recoveries of between 22.3 per cent and 84.9 per cent.

“The latest results continue to grow our confidence that mineralisation at the 3.8 million ounce Gruyere deposit is amenable to conventional processing methods with no major flaws,” Gold Road chairman Ian Murray said in the company’s announcement to the Australian Securities Exchange.

“It is very advantageous to have the benefit of these initial PFS testwork results at this early stage of the PFS, which reflects the foresight, diligence and rigour of the team.

“We will continue to build on this work as we progress the ongoing PFS and move into the Definitive Feasibility Study.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au