THE DRILL SERGEANT: Canyon Resources (ASX: CAY) has purchased an Australian-built, six-wheel-drive Toyota Landcruiser mounted aircore drilling rig to use on the company’s Birsok DSO (direct shipping ore) bauxite project in Cameroon.

The purchase has been executed just in time as the company has just completed field preparation work for a planned 3,000 metre drilling program on the Birsok project.

Canyon identified the most expensive component of its previous drilling program was the transport and clearing required to locate the larger-style track mounted drill rig on to the plateaux.

The company said the lighter, six-wheel-drive rig will provide easier and lower impact access onto the plateaux, as well as reducing the need for access clearing.

According to Canyon, owning a Cameroon-registered drilling rig will remove time and cost inefficiencies usually encountered with mobilisation of rigs and custom processing.

It also expects ownership of the rig to improve efficiency and reduce the costs of future drilling programs on the project.

Canyon is currently finalising an arrangement with a drilling contractor to manage the rig maintenance and staffing for drilling programs.

With the rig on board, Canyon has a drilling program in excess of 250 holes for approximately 3,000m planned to test the new plateaux on the Mandoum permit as well as other plateau targets.

It also intends to carry-out infill drilling on existing bauxite-rich plateaux it discovered during a previous drilling program.

“The acquisition of the aircore drilling rig already registered in Cameroon is a positive step forward for the company and in the development of the Birsok bauxite project,” Canyon Resources managing director Phillip Gallagher said in the company’s announcement to the Australian Securities Exchange.

“Access to drilling rigs in Cameroon has been limited and the acquisition will guarantee that the company will have on going flexibility and availability of the rig, as well as significantly reducing the costs of drilling on the project.

“We have had geological teams on the project since January completing geological mapping, drill hole targeting and clearing work on various plateaux in preparation for the upcoming drilling program.

“Now that the acquisition of the rig has been completed, we are preparing the rig to commence drilling as soon as possible.”

Website: www.canyonresources.com.au

THE DRILL SERGEANT: Gold Road Resources (ASX: GOR) has encountered high‐grade gold mineralisation during the first stage of RC drill testing of gold anomalism at the Smokebush Dolerite target.

The Smokebush Dolerite target is part of the Riviera‐Smokebush Gold Camp Scale Target, which is within the company’s South Yamarna Joint Venture with Sumitomo Metal Mining Oceania Pty Limited.

Gold Road claims the recent drilling has identified high‐grade gold mineralisation, returning a total drill intersection of 59 metres at 3.03 grams per tonne gold from 127 metres in hole 15SYRC0034.

The intersection included 10 individual one metre assays greater than 5g/t gold.

A second mineralised intersection of 5m at 1.6g/t from 118m was encountered by hole 15SYRC0032 and occurred on a drill section situated 400m south of 15SYRC0034.

Gold Road has interpreted these results to indicate continuity of the structure.

The company said follow‐up drilling, anticipated to be completed by April, across the interpreted west dipping shear zone has been planned to determine the true dip, and strike orientation and width of mineralisation.

“This is an extremely exciting first test of a new target zone,” Gold Road Resources executive director Justin Osborne said in the company’s announcement to the Australian Securities Exchange.

“The scale and grade of the mineralisation hosted within a highly prospective geological unit is very significant.

“Once again, this provides Gold Road with confidence that both our exploration targeting and testing methods are proving very effective.

“We are now looking forward to further testing this new discovery with Sumitomo with whom we have developed an excellent operating partnership.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

THE DRILL SERGEANT: Apollo Minerals (ASX: AON) has claimed to have discovered a substantial nickel sulphide system at the Plato prospect within the company’s Fraser Range nickel project in Western Australia.

The announcement follows a review of exploration data the company carried out with independent geological consultants CSA Global.

The review compared all drilling results from Plato with available data from Sirius Resource’s (ASX: SIR) Nova nickel deposit.

“Key similarities in the style of nickel sulphide mineralisation mean that Plato becomes one of only three high concentration nickel-copper sulphide systems discovered to date within the Fraser Zone,” Apollo Minerals said in its ASX announcement.

The review included technical evaluation of assay results from 2014 drilling at Plato, which intersected 3 metres at 0.4 per cent nickel and 0.1 per cent copper within a larger 60m mineralised interval.

Apollo indicated it now plans to target Plato and other high priority areas.

“The next phase of exploration will include ground Electro-Magnetic (EM) surveys, infill soil geochemistry and aircore drilling,” the company said.

“Follow-up deeper RC and diamond core drilling will follow based on results.

“Apollo is also considering the use of other high powered electrical geophysical techniques to identify new, deeper targets for drill testing.”

The Fraser Range nickel project is part of the Orpheus Joint Venture (Apollo 70 per cent: Enterprise Metals (ASX: ENT) 30 per cent)

The project is centred over the main high density Fraser Zone of the Albany-Fraser Orogen and consists of four tenements covering 665 square kilometres, which is one of the largest tenement areas in the main Fraser Zone outside of Sirius Resources.

Fraser Range gravity image showing Plato prospect, other nickel sulphide systems and Apollo Fraser Range Project landholdings. (High density gravity region shown in pink and red) Source: Company announcement

“The project is highly prospective for magmatic hosted nickel and copper mineralisation similar to Sirius Resources’ Nova-Bollinger massive nickel sulphide deposit,” Apollo said.

“Early stage exploration on the project by Enterprise Metals focused on detailed soil geochemistry, airborne and ground EM surveys and most recently RC and core drilling at the Plato and Plato South prospects.

“Independent consultants have reviewed this work and confirmed that the gabbros at Plato were formed from primitive, mantle sourced magmas capable of hosting massive nickel sulphide mineralisation.

“On 4 February 2015, Sirius confirmed that drilling at their nearby Crux prospect, situated 15km along strike from Plato, intersected disseminated and matrix nickel-copper sulphides suggesting the potential for additional major nickel-copper mineralisation.”

Website: www.apollominerals.com.au

THE DRILL SERGEANT: Xanadu Mines (ASX: XAM) has completed a JORC 2012-compliant maiden Mineral Resource Estimate for the company’s Kharmagtai copper-gold project, located within the South Gobi porphyry copper province of Mongolia.

Xanadu bragged the Resource had been calculated within 12 months since the company’s acquisition of the project.

The Kharmagtai project is a joint venture between Xanadu Mines and Mongol Metals LLC.

Under the JV terms, Xanadu has the right to earn an 85 per cent interest in the Kharmagtai project, equivalent to a 76.5 per cent effective interest, by funding acquisition and exploration costs.

The maiden Mineral Resource Estimate for the Kharmagtai project amounts to 203 million tonnes at 0.34 per cent copper and 0.33 grams per tonne gold (0.55 per cent copper equivalent [CuEq]) for a contained metal content of 1,500 million pounds copper and 2.2 million ounces of gold.

Xanadu explained the Mineral Resource was based on a total of 108,130 metres of drilling (83,577 metres of diamond and 24,553 metres of Reverse Circulation) and includes Indicated Resource categories as well as Inferred classified material.

The Resource Estimate also includes a higher grade core of 56 million tonnes at 0.47 per cent copper and 0.59g/t gold (0.85 per cent CuEq) for a contained metal content of 580 million pound copper and 1.1 million ounces of gold.
 
The higher grade core is reported at a 0.6 per cent CuEq cut‐off.

“Xanadu is very proud to be delivering a Maiden Mineral Resource Estimate within a year of its acquisition,” Xanadu Mines CEO Andrew Stewart said in the company’s announcement to the Australian Securities Exchange.

“The Kharmagtai copper-gold project is progressing towards economically viable sized porphyry tonnage with relatively high gold to copper ratios and discoveries of such gold-rich porphyry copper deposits are rare.

“This exploration and the rapid conversion to a Maiden Mineral Resource is the result of a great team effort – both within Xanadu and together with our service providers.

“We will continue with our efforts to grow the Kharmagtai Mineral Resource, to find additional mineralisation within the Kharmagtai Intrusive Complex and to test the other targets within the large district, which have the same geophysical response and geometry as existing resources within the KIC with the aim of unlocking the full potential of this under explored porphyry district.”

Website: www.xanadumines.com