South Australia maintains exploration PACE

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THE DRILL SERGEANT: South Australia Mineral Resources and Energy Minister Tom Koutsantonis has announced 27 resource exploration projects, which are to share $2 million in grants as part of the State’s Plan for Accelerating Exploration (PACE) Discovery Drilling 2015.

PACE is an initiative of the South Australian Government that co-funds selected drilling projects from exploration companies in a bid to stimulate the next crop of greenfield discoveries.

The initiative is designed to allow the government to help share in the financial and technical risk of exploration.

“The current suite of proposed drilling programs represents a significant push into frontier areas of the State over the next year and clearly demonstrates the range of active projects and companies exploring in South Australia,” Koutsantonis said when announcing the latest recipients.

“These 27 proposals were selected from a pool of 35 high-quality applications and show a broad distribution throughout South Australia and target a range of commodities.

“The value of government investment is multiplied when considering the industry contribution, so $2 million in co-funding grants will draw an estimated additional investment of $4.9 million from these explorers.”

Koutsantonis explained PACE to be one of the ways the SA state government has worked in partnership with industry to invest in long term exploration success.

Since its inception the scheme has helped to establish South Australia’s international credentials as a favoured destination for mineral resource investment.

“The drilling collaboration programs provided through PACE have played a significant role in delivering new discoveries and maintaining exploration momentum in South Australia,” Koutsantonis said.

“As we have seen through previous rounds, these drilling collaborations produce a wealth of new, open-file data and exploration information from all areas of the State and have delivered a number of significant new mineral discoveries.

“While the complementary PACE Mineral Systems Drilling program is strongly focused on unravelling the complexity of the Gawler Craton, the PACE Discovery Drilling 2015 supports new exploration projects all over South Australia.”

This current round of funding is planned to close in May 2016 with all the drilling data, assays and reporting released shortly after.

Beneficiaries this year include Musgrave Minerals (ASX: MGV), which is eligible to receive $90,000 for drilling at the Roslin zinc and Zarek nickel-copper targets on the company’s Mimili project in the South Australian Musgrave region and $55,000 for drilling at the Corunna silver-lead-zinc project in the Southern Gawler Craton region.

“We are delighted with the State Government’s support for the two projects and look forward to drilling,” Musgrave Minerals managing director Rob Waugh said.

“Both projects are in highly prospective underexplored terrains with significant exploration potential.”

Core Exploration (ASX: CXO) has been awarded co‐funding to drill the company’s Yerelina zinc‐lead‐silver project on EL 5015 in northern South Australia.

Core will receive a grant of $75,000 to go towards its proposed drilling project, which comprises six angled diamond core holes targeted under known outcropping mineralisation to better understand grade distribution, mineralisation potential and geological controls.

Monax Mining (ASX: MOX) secured funds for its Kimberlite and Punt Hill projects, and its Farm-In partners, Western Areas (ASX: WSA) also received funding for the Western Gawler Craton project.

Monax received its full application of $70,000 to drill the company’s Kimberlite project – located in northern South Australia – and is focussed on the Margaret Dam target, where a drilling program is planned for June/July 2015.

The company is eligible for a further $75,000 in PACE funding for its Punt Hill IOCG project, which will be used to continue drilling at the Groundhog prospect.

 
Source: South Australia Department of State Development

 

Oro Verde scores impressive rock chip results at Topacio

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THE DRILL SERGEANT: Oro Verde (ASX: OVL) has received results from a second phase of reconnaissance sampling undertaken at the company’s Topacio gold project in Nicaragua.

Oro Verde said the sampling had returned further high-grade results, claiming to have enhanced the potential of the gold and silver mineralised vein system.

Reconnaissance rock chip samples collected from east of the Topacio resource area included:

Su Majestad vein – up to 14.1 grams per tonne gold and 58g/t silver;

Topacio NE vein – up to 6.6g/t gold and greater than 100g/t silver;

Canada vein – up to 3.9g/t gold.

Rock chip samples taken at the Mico – Lone Star vein area returned results of up to 3.2g/t gold.

Oro Verde explained its latest sampling campaigned was focused on assessment of the potential for both expansion of the existing gold resource, and for additional targets over the broader tenement area.

The company claims the gold and silver results it has attained from outcropping quartz veins to the northeast of the main resource area confirm the continuation of the mineralised system and indicate potential for resource expansion in this area.

A further technical assessment carried out by the company of a relatively unexplored area to the south of the tenement resulted in the identification of possible epithermal sinter zone, reflected by silica rich rocks.

The company explained a sinter zone to be a silica rich surface deposit, typically developed above a low sulphidation epithermal system.

These underlying epithermal systems often consists of vein or stockwork style mineralisation and can be enriched in gold and silver, with lesser base metal development.

“High-grade gold assays up to 14.1 grams per tonne gold from sampling to the northeast of the main Topacio resource area enhance our expectation for expansion of the gold inventory,” Oro Verde managing director Trevor Woolfe said in the company’s announcement to the Australian Securities Exchange.

“Additionally, an initial review of silica rich outcrops in the south of the tenement indicate the potential for an epithermal sinter zone, which are often associated with buried epithermal mineralised systems.

“This provides Oro Verde with a new target to test for a gold and silver enriched feeder system.”

Website: www.oroverde.com.au

Aurelia Metals increases Hera Resource Estimate

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THE DRILL SERGEANT: Aurelia Metals (ASX: AMI) has reported an upgrade to the Mineral Resource Estimate at the company’s 100 per cent-owned Hera gold-lead-zinc project in central New South Wales.

The JORC Code 2012-compliant Mineral Resource estimate has come in at:

3.2 million tonnes at 3.75 grams per tonne gold, 33.4g/t silver, 3.5 per cent lead and 4.6 per cent zinc.

Aurelia said it was happy to report that a healthy portion of the Resource (25 per cent) is now in the higher confidence Measured category for the first time, with 65 per cent of the Resource sitting in Measured and Indicated categories combined.

The company has interpreted the growth in the Resource to over 3.2 million tonnes to imply an extension of mine life of approximately two years can be expected.

However, the company was careful to point out it will need to complete further work to report an updated Reserves estimate before mine life extension can be confirmed, including additional permitting that may be required.

Despite this the company declared it is confident of continuing to grow the resource over time as exploration continues given the project remains open to both the north and south.

“We are very pleased to be reporting a substantially upgraded Hera Resource Estimate, which demonstrates the ability for the initial mine life to be expanded as exploration success continues,” Aurelia Metals managing director Rimas Kairaitis said in the company’s announcement to the Australian Securities Exchange.

“This Estimate represents the excellent work by the company’s geology team and lays the foundation for a significant increase in the Hera mine life.

“We remain optimistic about the potential for further extensions as exploration continues.”

Email: office@aureliametals.com

Website: www.aureliametals.com

Argent Minerals drilling potentially increases size of Kempfield

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THE DRILL SERGEANT: Argent Minerals (ASX: ARD) has released results from Hole #2, part of a deep diamond drilling program being carried out at the company’s Kempfield project in New South Wales.

The drilling is being partly sponsored by the NSW Trade & Investment, Resources & Energy Division.

According to Argent, Hole #2 returned intersections of 2 metres at 0.28 grams per tonne gold from 398 m, and 1m at 0.54g/t gold from 522 m.

The results follow one from those previous released for Hole #1 of 5m at 4g/t gold from 353m.

Argent said the attributes of the material intersected by both holes are consistent with proximity to a high temperature Volcanogenic Massive Sulphide (VMS) feeder zone and the potential for high-grade base and precious metal mineralisation featuring zinc and lead.

“A potentially major achievement of this early part of the drilling program is that examination and interpretation of the drill core has validated Argent’s hypothesis for the formation processes and the model for the current structure of the Kempfield deposit,” Argent Minerals managing director David Busch said in the company’s announcement to the Australian Securities exchange.

“A significant outcome of this model validation is the increased potential ‘size of the prize’ at Kempfield.

“Now that earlier alternative models for the deposit have essentially been ruled out by the latest evidence, the validated model implies that the lengths of the steeply dipping lenses could extend to substantial depths from their uppermost portions at or near the surface.

“This applies to both the existing known lenses and the additional lenses targeted by Argent’s continuing Kempfield deep diamond drilling program.”

Argent intends to conduct downhole electromagnetic (DHEM) surveys for Holes #1 and #2 to assist in diamond hole design planning.

The company has cased Holes 1 and 2 to 480 and 702 metres respectively in preparation for the surveys, which it anticipates will provide substantial coverage in this portion of the exploration site given an approximate 200m radius of coverage by the DHEM sensor.

Argent also has DHEM surveys planned to follow the drilling of Holes #3 and #4, which will be drilled to test interpreted the recently-defined Lens 4, and strike extension of Lens 3.

Hole #4 will commence testing for lens extensions at depth beneath the existing deposit, initially testing underneath Lens 3 where grades of up to 17.9 per cent combined lead/zinc were previously intersected.

“Additional hole design work is underway for the next phase of the Kempfield deep diamond drilling program, which will test the lens extensions at depth predicted by the validated deposit model,” Busch said.

Website: www.argentminerals.com.au

Vimy Resources upgrades Ambassador Resource at Mulga Rock uranium project

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THE DRILL SERGEANT: Vimy Resources (ASX: VMY) has announced an updated estimate for the Ambassador Resource, part of the company’s Mulga Rock uranium project (MRUP) near Kalgoorlie in Western Australia.

The estimate has been based on an extensive in-fill drill program the company completed and announced earlier this year.

According to Vimy the Ambassador resource currently makes up more than half of the total resource for the MRUP.

The company indicated the increased resource base means it can now enter the development phase of the project with greater confidence.

The key highlights to emerge from the updated estimate are:

Ambassador’s average uranium resource grade has increased by 30 per cent from 469ppm uranium 610ppm uranium;

A 33 per cent increase in Ambassador resource with the deposit’s mineral resource estimate increasing to 28.1 million tonnes at 610ppm uranium for a contained 37.5 million pounds of uranium, representing a 33 per cent increase in the contained metal of the previous resource estimate;

Approximately 58 per cent of the Ambassador resource is now in the Indicated Resource category, totalling 13 million tonnes at 750ppm uranium for 21.6 million pounds uranium; and

As a result the Mulga Rock total Mineral Resource Estimate has now increased by 12 per cent to 59.7 million tonnes at 550ppm uranium for a contained 72.7 million pounds uranium.

“Once again the Vimy team has delivered an outstanding result at the MRUP,” Vimy Resources managing director Mike Young said in the company’s announcement to the Australian Securities Exchange.

“The results have enhanced our geological understanding of the deposits and the controls on mineralisation that will be put to good use in future drilling programs.

“The increased grade, contained metal, and upgrade of almost 60 per cent of Ambassador to Indicated status may have a significant positive impact on the project’s economics which are currently the subject of an ongoing study.

“When these results are coupled with the recently announced advances in the metallurgical test work, then the true potential of the MRUP starts to become clear.”

The MRUP is 100 per cent-owned and operated by Vimy and is located on two granted Mining Leases (ML39/1080 and ML39/1081).

Vimy holds title to approximately 757 square kilometres of exploration ground across the MRUP.

The Mulga Rock East deposit comprises the Princess and Ambassador Resources, which Vimy anticipates will form the first stage of potential mine development for the MRUP.

Website: www.vimyresources.com.au

Impact assays high grades of rare PGM elements at Broken Hill

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THE DRILL SERGEANT: Impact Minerals (ASX: IPT) has received assay results, which it claims have confirmed the presence of high-grade and potentially economic rare platinum group metals (PGM) on the company’s 87 per cent-owned Broken Hill Joint Venture project in New South Wales.

The company said the results add to both the mineralised and economic appeal of the Red Hill prospect within the JV area, where Impact has previously identified encouraging copper and nickel grades just 20 kilometres east of the Broken Hill silver-lead-zinc mine.

The drill intercepts from both the Upper and Lower Zones at Red Hill have been upgraded as follows: (Note 3PGM = platinum-palladium-gold and 7PGM = 3PGM + osmium, iridium, rhodium, ruthenium where assayed)

Upper Zone:
9.5 metres at 4.7 grams per tonne 3PGM, 1.5 per cent copper and 0.8 per cent nickel, including 5.1m at 11g/t 7PGM, 1.9 per cent copper and 0.9 per cent nickel (RHD001); and

5.2m at 7.9g/t 7PGM, 1.1 per cent copper and 1.6 per cent nickel (RHD006).

Lower Zone:
9.9m at 6.7g/t 3PGM, 1.4 per cent copper and 0.3 per cent nickel, including
4.2m at 11.8g/t 7PGM, 2.6 per cent copper and 0.5 per cent nickel (RHD001); and

13.8m at 6.6g/t 7PGM, 1.1 per cent copper and 0.3 per cent nickel (RHD006).

Impact Minerals managing director Dr Mike Jones said the Red Hill assays revealed the presence of the rare platinum group metals (PGM) osmium, iridium, rhodium and ruthenium, factors which he considers to have increased the total grade of PGM in the recently discovered zones of high-grade copper-nickel-platinum-palladium-gold mineralisation.

Jones went on to claim the new assays confirm Impact’s discovery at Red Hill contains some of the highest grades of PGM reported in Australia.

“These newly discovered PGMs have almost doubled the total grade of PGM’s within the more nickel-rich Upper Zone of mineralisation that occurs within the 25 to 30 metre thick near-surface layer of Red Hill’s copper-nickel-PGM mineralisation,” Jones said in the company’s announcement to the Australian Securities Exchange.

“Given that the current spot metal prices in Australian dollars per ounce for these metals are rhodium: $1,506 per ounce; iridium $763 per ounce: osmium $500 per ounce and ruthenium $65 per ounce, in addition to platinum $1,528 per ounce, palladium $1,015 per ounce and gold at $1,581 per ounce, the rare PGMs at Red Hill may be a significant economic credit to any resource defined at the project.”

Email: info@impactminerals.com.au

Website: www.impactminerals.com.au

Rox Resources highly-encouraged by recent Fisher East drilling results

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THE DRILL SERGEANT: Rox Resources (ASX: RXL) reported it is making encouraging progress with an exploration drilling program being undertaken at the company’s Fisher East nickel project north of Kalgoorlie in Western Australia.

Rox has completed the first stage of aircore drilling with 67 holes drilled to confirm targets which will be followed up by RC or diamond drilling.

At the Sabre prospect 5 metres at 1.08 per cent nickel was intersected from 74m, which Rox declared to be the best aircore result it has achieved on the whole Fisher East project so far.

A number of other encouraging aircore results were received from drilling concentrated at the Cutlass prospect, and the newly defined Sabre and Tomahawk prospects.

Results include:

FEAC277 Sabre
6 metres at 0.45 per cent nickel from 47m, including 2m at 0.58 per cent nickel from 50m;

FEAC278 Sabre
15m at 0.63 per cent nickel from 72m, including 5m at 1.08 per cent nickel from 74m;

FEAC289 Tomahawk
5m at 0.32 per cent nickel from 66m, and 6m at 0.43 per cent nickel from 74m;

FEAC291 Sabre
4m at 0.31 per cent nickel from 60m;

FEAC293 Sabre
6m at 0.4 per cent nickel from 65m;

FEAC301 Tomahawk
10m at 0.25 per cent nickel from 46m;

FEAC302 Tomahawk
11m at 0.26 per cent nickel from 30m;

FEAC322 Cutlass
4m at 0.28 per cent nickel from 70m;

FEAC335 Cutlass
4m at 0.23 per cent nickel from 22m; and

FEAC339 Corktree
24m at 0.27 per cent nickel from 40m.

Rox has completed four diamond drill holes, two at the Musket deposit, and two at the Cannonball prospect.

Assays are pending for these holes.

“Despite unsettled weather in the northern Goldfields during March, which delayed all of our programs, we have been able to successfully complete the first stage of our aircore drilling program, with some outstanding results,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“These include the already reported, highly anomalous copper, platinum and palladium results over a strike length of 200 metres at the Sabre prospect, which are by far the best we’ve reported from the whole Fisher East project to date.

“The nickeliferous gossan drilled at Sabre is indicative of nickel sulphide mineralisation at depth.

“In addition, we have now completed four diamond holes, two at Musket and two at Cannonball, with encouraging visual results, although assays are still pending.

“The RC drilling at Cannonball has also continued to define strong mineralisation at shallow depths, and we are excited about moving the RC rig down to Sabre and Tomahawk to test the new aircore anomalies we have defined.

“Finally, the airborne magnetic survey, and the VTEM, when completed, will enable us to assess and prioritise the targets on the newly acquired Option tenement, E53/1802, which we believe has the potential to host further nickel sulphide mineralisation.”

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

Corazon Mining releases Resource for combined Lynn Lake nickel project

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THE DRILL SERGEANT: Corazon Mining (ASX: CZN) released a JORC 2012-compliant Resource Estimate for the company’s Lynn Lake nickel-copper project in Canada.

The company said the new estimation combines and upgrades resources previously reported in both JORC 2004 and NI43-101 (Canadian) reporting standards, while incorporating new areas of mineralisation defined by the previous mining operation.

Earlier this year Corazon Mining reunited the Lynn Lake nickel-copper field for the first time since its closure in 1976 with its acquisition of the Victory nickel project.

The new Indicated and Inferred Resource estimate stands at:

9.4 million tonnes at 0.88 per cent nickel and 0.4 per cent copper, for 83,000 tonnes of contained nickel and 37,800 tonnes of contained copper.

The Resource incorporates the EL, N, O and G nickel-copper sulphide deposits.

Corazon emphasised this to be the first time a combined resource for the Lynn Lake project area has been defined in-line with Australian reporting standards.

The company claims the Resource grade to be consistent with historical grades from the Lynn Lake mine, which operated for 24 years as a large tonnage-low cost mine, before its closure in 1976.

Corazon declared it is confident the Lynn Lake project is an excellent development opportunity that is leveraged to an improvement in the nickel metal price.

Corazon is implementing a program of work to prepare the project for the recommencement of mining in an improved market.

The Resource for the EL Deposit has been separated into two zones, the EL Upper and the EL Lower.

The distinction between the two zones is set at about 200 metres below surface and approximates to material that may be exploited by open-cut or underground mining methods.

The N and the O deposits are the closest deposits to the EL Plug and the last to be mined within the A Plug before the mine closure in 1976.

Underground development in this area of the A Plug is down to about 1,100 metres below surface.

Summarising it announcement to the ASX, Corazon Mining stated recently completed resource work at Lynn Lake has:

For the first time since mining stopped in 1976 reported a resource for the whole Lynn Lake nickel-copper camp and not just on a prospect scale;

Identified more tonnes at the EL Plug. In particular, some near surface mineralisation defined by past drilling and mining activities has been upgraded to resource status;

Changed the resource category classifications quoted in the Canadian NI43-101 Resource of Measured, Indicated and Inferred for the A Plug (N, O and G deposits) to JORC 2012 Indicated and Inferred Resource classification reflecting a reassessment of the historic nature of the data as resource reporting ‘modifying factor’; and

Identified significantly less tonnages than that reported in the NI43-101 ‘foreign estimate of mineralisation’ for the A Plugs N, O and G deposits. The company said this is due to a much higher lower cut-off grade being used for the current resource statement.

Corazon said it is confident the larger global mineral inventories previously reported are accurate in their representation of the mineralisation at lower cut-off grades.

Email: info@corazon.com.au

Website: www.corazon.com.au

Orinoco to commence underground development at Cascavel

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THE DRILL SERGEANT: The Board of Orinoco Gold (ASX: OGX) has formally approved commencement of underground mine development at the company’s Cascavel gold project in central Brazil.

A mining team is to start the excavation and development of the main incline shaft, which will provide access to the high-grade ore zones.

This is scheduled to kick off in early May 2015, which Orinoco heralded as a key milestone the company’s progress towards gold production.

The company’s decision to mine follows completion of due diligence by its funding partner, Singapore-based private mining investment company Chancery Asset Management, and clears the way for the provision of a US$8 million gold sharing arrangement that was announced in March.

Orinoco said this underpins an overall $14 million funding package for the development of Cascavel, which is based on an estimated capital outlay of US$6.6 million to establish a standalone initial 40,000 tonnes per annum operation using a simple gravity circuit to process high-grade underground ore.

“The start of underground mine development at Cascavel represented a significant milestone in the company’s history,” Orinoco Gold managing director Mark Papendieck said in the company’s announcement to the Australian Securities Exchange.

“Making the transition from explorer to producer is a big step for any company, and this marks the beginning of that transformational process for Orinoco.

“We look forward to providing further details in the near future about our overall construction timetable and contractor arrangements.”

Email: info@orinocogold.com

Website: www.orinocogold.com

Talga hits large graphite unit at Jalkunen

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THE DRILL SERGEANT: Talga Resources (ASX: TLG) has completed a program of diamond drilling at the company’s 100 per cent-owned Jalkunen graphite/graphene project in north Sweden.

The drilling targeted a prominent electromagnetic (EM) anomaly central to the Jalkunen exploration target and consisted of eight diamond holes, six of which intersected the targeted graphite unit, averaging 50 to 60 metres true thickness.

The intersections also contained intermittent zones of lower grade mafic to felsic metasediments.

Talga has interpreted the graphite unit to be shallowly dipping and visibly similar to Vittangi mineralisation.

The company explained the drillhole depths ranged from 80 to 270m depth and the graphite unit is present from subcrop to approximately 600m down dip and open.

Talga considers the wide intersections coupled to the shallow dip of the intersected graphite units to suggest a large tonnage target is present.

It has also determined geometry, combined with previous grades in the range 15 to 30 per cent graphitic carbon, demonstrate potential for a high volume of contained graphite per vertical metre.

The company expects assay results in May, which will be reviewed and analysed for resource estimation in June.

“Staff and contractors have completed geological logging and fieldwork,” Talga Resources said in its ASX announcement.

“Core samples have been transported to ALS-Chemex in Piteå, Sweden for processing and assaying, with results expected towards the middle of May.

“Additional core will be sent to Talga’s metallurgical and research partners to confirm its suitability for the production of graphene using the same process as proven successful at Vittangi.

“Based on the visual similarity of the core with material from the Nunasvaara deposit, and the fact Vittangi and Jalkunen projects are thought to be part of the same geological unit, positive metallurgical results are expected.

“All data will be reviewed and analysed for the purpose of estimating a mineral resource in June.”

Email: admin@talgaresources.com

Website: www.talgaresources.com