THE DRILL SERGEANT: Doray Minerals (ASX: DRM) has released a maiden high-grade Resource for the Suzie Zone, situated within the company’s Andy Well gold project in the northern Murchison region of Western Australia.

The Suzie Zone is located parallel to the operating Wilber Lode underground mine and the Judy Lode, which is on scheduled to commence underground mining in the not-too-distant future.

The Suzie Zone Resource is the third high-grade gold deposit Doray has defined at Andy Well since its discovery of the high-grade Wilber Lode gold deposit in 2010.

The Indicated and Inferred Resource for the Suzie Zone comprises 468,000 tonnes at 8.1 grams per tonne gold for 123,000 contained ounces.

The Andy Well Resource inventory has now been increased to over 500,000 ounces from three deposits.

With the inclusion of the recently-acquired high-grade Deflector gold-copper-silver deposit, the total Doray Resource inventory is now over 1.1 million ounces.

“This high-grade Resource at Suzie takes the total Andy Well Resource to over half a million ounces for the first time, in addition to the production of about 130,000 ounces so far, and is further evidence of the mine life upside at Andy Well with systematic exploration,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“When combined with the newly acquired Deflector deposit, Doray now has over one million ounces at almost 8 grams per tonne, a fantastic high-grade Resource Inventory.”

Doray indicated ongoing resource Extension Work at Andy Well is to include near-mine exploration, with a view to continuing to replace Resources depleted due to mining and to extend the known mine life.

Underground drilling is currently underway to test below the current base of the Wilber Mineral Resource, above deep intersections encountered by Doray last year.

The company also flagged underground drilling underneath the current Judy Resource area, which will be undertaken early in the 2016FY as access is gained from the Judy link decline.

Having completed the calculation of the maiden Mineral Resource at Suzie, Doray has engineering evaluation work underway to evaluate the potential for small scale open pit mining, scheduled to complement the current stage 2 open pit campaign at Wilber.

In anticipation of a positive outcome from those studies, Doray has commenced required permitting for open pit mining at Suzie.

Further evaluation work will be carried out to evaluate the potential for underground mining of the deeper sections of the Suzie Lode.

Email: info@dorayminerals.com.au

Website: www.dorayminerals.com.au

THE DRILL SERGEANT: Northern Minerals (ASX: NTU) has increased the rare earth Mineral Resource estimate for the company’s Browns Range project in northern Western Australia.

The Total Mineral Resource at Browns Range is now estimated at 8.98 million tonnes at 0.63 per cent total rare earth oxides (TREO), comprising 56.663 million kilograms of contained TREO using a cut-off grade of 0.15 per cent TREO.

Northern Minerals explained a feature of the project’s Mineral Resource is a dominance of heavy rare earths (HREs), containing the high-value elements dysprosium and terbium.

The heavy rare earth oxide (HREO) percentage of the TREO is 87 per cent (Indicated and Inferred Resource).

The company considers the presence of xenotime as the dominant HRE mineral host, which is rich in dysprosium, to be a competitive advantage for the project.

Its rationale being that the xenotime mineralisation, in combination with the mainly silica host rock, allows for concentration of the ore and excellent HRE recoveries through the beneficiation stage.

“This latest Mineral Resource upgrade is significant as it has the potential to extend the project’s current mine life and further strengthen the project’s economics,” Northern Minerals managing director George Bauk said in the company’s announcement to the Australian Securities Exchange.

“To date our mineral resources have provided a 10 year project mine life.

“This latest upgrade is a great achievement as it has the potential to add mine life for the Definitive Feasibility Study, which is now being finalised.

“By undertaking a program of shallow close spaced drilling, we were able to confirm there is more accessible mineral resource near surface at the Wolverine deposit than previously understood, which will provide additional feed at the early stages of production.

“Four successive Mineral Resource upgrades since 2010 have increased the project’s Mineral Resource more than fivefold…clearly demonstrating the outstanding exploration potential.”

Email: info@northernminerals.com.au

Website: www.northernminerals.com.au

THE DRILL SERGEANT: Mithril Resources (ASX: MTH) released results of two follow-up diamond drill holes (NRD15001 and 002) recently completed at the company’s Stark copper-nickel-PGE prospect near Meekatharra in Western Australia.

Both holes intersected disseminated and massive copper nickel sulphide mineralisation down dip and along strike from previously drilled mineralisation.

NRD15001 intersected multiple mineralised intervals within a sequence of gabbro and minor intermixed sediments (downhole widths), including:

50.25 metres (from 162.1m downhole) of weak disseminated sulphides (pyrite-pyrrhotite-chalcopyrite);

0.27m (from 213.43m downhole) of massive sulphides (pyrrhotite-chalcopyrite-pentlandite, followed by 10.95m of disseminated sulphides (pyrite-pyrrhotite-chalcopyrite);

7.65m (from 226.75m) of weak disseminated, blebby and stringer sulphides (chalcopyrite-pyrrhotite); and

0.15m (from 246.35m) of massive and stringer sulphides (chalcopyrite-pyrrhotite).

Mithril explained the mineralisation encountered by NRD15001 is approximately 40m down dip of drill hole NRC14008, completed in December 2014, which intersected:

16m @ 0.81% copper, 0.09% nickel, and 0.39g/t PGE’s from 183m, including 4m @1.91% copper, 0.18% nickel, and 0.96g/t PGE’s from 194m.

“NRD15001 intersected a cross–cutting dolerite dyke towards the bottom of the hole which is interpreted to have ‘stoped out’ the prospective basal gabbro contact along which massive sulphides can occur,” Mithril Resources said in its ASX announcement.

“The 0.15 metres of massive and stringer sulphides from 246.35 metres occurs at the lower edge of the dyke and may represent the remains of a thicker massive sulphide unit that was present before the dyke was emplaced.”

The second hole, NRD15002 was drilled as an extension (diamond tail) to reverse circulation drill hole (NRC14002) also carried out in December 2014.

The latest hole intersected 35.25m (from 304.2m downhole) of weak to moderate stringer and disseminated sulphides (chalcopyrite-pyrite).

“The mineralisation extends for at least 22 metres into the footwall sediments below the basal gabbro contact,” Mithril explained.

“The NRD15002 intercepts lie 100 metres north of NRD15001 within the central portion of a largely undrilled 500 metre long modelled EM plate.

“Both holes have been cased for downhole EM surveying and geological logging and sampling is currently underway.

“Drill samples are expected to be dispatched to the laboratory this week for analysis with results expected next month.”

The Stark copper-nickel-PGE prospect is situated within the company’s Nanadie Well project on tenements subject to a Farmin and Joint Venture Agreement with Intermin Resources (ASX: IRC).

Under the terms of the JV, Mithril can earn up to a 75 per cent interest in the project tenements by completing expenditure of $4 million over six years with a minimum expenditure of $250,000 required by 14 April 2015 and before any withdrawal.

Email: info@mithrilresources.com.au

Website: www.mithrilresources.com.au

THE DRILL SERGEANT: Each week any number of junior exploration plays set out to drill their ground. Here’s a small selection of what’s been happening this week.

Drilling Recommences at Matilda

Blackham Resources (ASX: BLK) announced the arrival of an RC drill rig at the Matilda mine, armed with the task of drilling a 4,000 metre program, targeting growing the Matilda mine life in the following areas:

M4 northern and southern extensions; M2 northern extensions; M1 West and Central lode northern extensions; and further definition of lodes linking M1/M3/M4 and M2 sub pits.

The drilling is designed to follow up on previous intercepts by testing down-plunge extensions with the aim of increasing the resources within open pit limits at both sites.

“Significant opportunities remain at the Matilda mine to extend the base load mill feed and grow the Matilda project’s mine plan beyond the initial four year mine life,” Blackham Resources managing director Bryan Dixon said.

“We are currently revising the Matilda mine resource to include additional drilling over the last 18 months.”

2015 Exploration Program kicked off

Xanadu Mines (ASX: XAM) informed of its exploration activities in 2015, which will cover the company’s Kharmagtai and Oyut Ulaan copper-gold projects.

Xanadu has commenced exploration activities at the Oyut Ulaan copper-gold project where it found outcropping high-grade gold and copper during initial works in 2013.

The company has been able to commence the program earlier than expected due to favourable weather conditions in Mongolia.

The current exploration program has been designed to test potential extensions to high-grade porphyry mineralisation along strike from the Diorite Hill and Stockwork Hill prospects and test an outcropping variably mineralised breccia dyke complex.

The work will include approximately 2,000 metres of surface trenching plus the acquisition of high-resolution ground magnetics and induced polarisation data.

The program has been developed around a realistic geological model and will contribute to defining a shallow resource estimate at Oyut Ulaan.

“Oyut Ulaan is a very exciting prospect, our last exploration program at Oyut Ulaan encountered spectacular results including multiple intersections with economic grades of copper-gold mineralisation from surface,” Xanadu Mines chairman Mark Wheatley said.

“It represents a great opportunity for Xanadu to utilise its local experience to explore for a large deposit, close to surface and of economic grade.”

THE DRILL SERGEANT: Poseidon Nickel (ASX: POS) has received assays for 29 underground diamond drill holes undertaken at the company’s Lake Johnston project, prior to its acquisition.

The company claims the latest results will increase the potential life of the mine and enhance the profitability of the intended restart.

The drilling was carried out before the mine closed in order to explore beyond the known extent of the current mineralised zones at Maggie Hays and was mostly in the southern and northern ends of the ore body.

The upshot has been the identification of mineralised extensions.

Drilling highlights include:

Western Zone:
4.29 metres at 3.51 per cent nickel;

2.96m at 2.09 per cent nickel;

2.55m at 1.92 per cent nickel; and

2.39m at 1.3 per cent nickel.

Suture Zone:
17.77m at 1.48 per cent nickel;

17.84m at 1.39 per cent nickel;

9m at 1.38 per cent nickel; and

5m at 3.23 per cent nickel.

North Shoot
4.05m at 2.38 per cent nickel;

9.86m at 1.55 per cent nickel, including 3.9m at 2.47 per cent nickel;

2.64m at 3.45 per cent nickel;

5.6m at 2.68 per cent nickel; and

2.9m at 2.24 per cent nickel.

“The drilling in the southern end of the deposit was particularly targeting newly identified mineralisation to the west of the known ore body,” Poseidon Nickel said in its ASX announcement.

“This mineralisation is now recognised as being remobilised nickel sulphide associated with a large scale basal fault which runs under the main Maggie Hays ore body and through the middle of North Shoot.

“Drilling at Maggie Hays also concentrated on defining extensions within the North Shoot and infilling data.

“The drilling consistently intersected potentially economic extensions to the mineralised zone.

“This is likely to lead to an initial mine life significantly beyond that previously expected by Poseidon.

“The drilling also indicates that further extensions to the ore body are likely when follow up drilling is undertaken.”

In a resource estimate released in December 2014, the North Shoot was all categorised as Inferred resource.

Poseidon intimated the amount of drilling carried out at the time warranted a much better result.

“It was identified that survey errors existed in the database resulting in misalignment of the model with the development, resulting in low geological confidence in the resource modelling,” the company said.

“These survey errors have now been corrected. In addition 100 drill holes were identified as missing from the database and the data for these have now been located.”

Poseidon is now in the middle of a resource re-estimation, which it anticipates should result in the majority of the North Shoot being upgraded to Indicated resource category or higher.

The company has also kicked off a detailed mine planning and scheduling program, which will examine maximising the ore extraction and redeveloping the mine infrastructure to better access the ore zones.

This work is expected to be complete in March 2015, some three months ahead of the original schedule.

Email: admin@poseidon-nickel.com.au

Website: www.poseidon-nickel.com.au