RMG drilling generates encouraging copper hits

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THE DRILL SERGEANT: RMG Limited (ASX: RMG) has received assay results from the first three diamond drill holes undertaken on the San José open pit at the company’s Tuina copper project in northern Chile.

Results include:

TD001
42 metres at 2.1 per cent copper from 17m;

TD002
83m at 1 per cent copper from 31m; and

TD003

23m at 0.5 per cent copper from 29m.

 

Cross section of holes TD001 to TD003. Source: Company announcement

 

RMG claims the drilling has demonstrated copper mineralisation is extended for over 100m below the current open pit.

The company said the drilling had also demonstrated copper mineralisation to be open down dip and along strike from prior historic drilling.

RMG indicated it would use the drill core to further its metallurgical studies for oxide and sulphide feasibility studies, which it currently has underway.

“These excellent drill results confirm RMG’s confidence in the continuation of the copper mineralisation below the current open pit and is still open to depth and along strike,” RMG said in its ASX announcement.

“The high-grade tenor of the copper results is particularly pleasing and their proximity to surface enhances the potential for early cash flow opportunities being pursued by the company at Tuina.”

RMG has drilled a total of 18 diamond holes at Tuina and is currently waiting on assays for the remaining 15 of these.

After it has received all assays and geology logs, the company plans to build a 3D interpretation and a follow-up drill program continue expansion of the mineralised areas.

Email: info@rmgltd.com.au

Website: www.rmgldt.com.au

Hi Ho, Hi Ho, it’s off to work we go

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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 to Commence

Axiom Mining (ASX: AVQ) has kicked off drilling at the Isabel nickel project in Solomon Islands.

“This program will focus on areas suitable for early JORC compliant resource definition and subsequent mining,” Axiom CEO Ryan Mount said.

“We aim to confirm the historical data at this world-class asset collected by global nickel producer INCO and Kaiser Engineers.

“Additionally, we see significant potential to increase both the grade and tonnage of the deposit as we extend drilling below the depth of previous sampling into the higher grade saprolite zone.”

In 2014, the program will:

Consist predominantly of diamond drilling and excavator pitting to twin and confirm previous test pits and drill holes;

Test stratigraphy, bulk density, moisture, internal rock size and distribution and other mining factors within the limonite and saprolite zones;

Test metallurgical characteristics for potential customers; and

Include geological mapping, soil and rock sampling by handheld XRF analyser, and pitting within historical excavations.

Baseline environmental surveys have commenced and include terrestrial and aquatic studies, which will meet Solomon Islands regulatory requirements for subsequent development of the deposit.


Drilling commenced at Big Springs

Anova Metals (ASX: AWV) has started a planned drilling program at the company’s Big Springs project, located in Nevada, USA.

The drilling will comprise up to 1,850m of diamond drilling and 2,915m of RC drilling.

The planned drilling involves infill RC drilling of the proposed 601 open pit and underground zones plus minor diamond core drilling for geotechnical and metallurgical sampling purposes.

In addition, further geotechnical diamond core drilling is planned for the potential 701 underground zone plus hydrogeology drilling and pump testing of the proposed North Sammy underground zones.

The program also includes testing of resource extension targets for the 601 underground zone.

Drilling is expected to be completed by late November.


Drilling commences at Hayes Creek

Phoenix Copper (ASX: PNX) has commenced drilling at the Hayes Creek project in the Pine Creek region of the Northern Territory.

The drill program will comprise four diamond drill holes targeting the Iron Blow and Mount Bonnie deposits.

A recent capital raising has enabled this initial drill program to commence prior to the onset of the wet season.

The primary objectives of the drill program are to define new mineralised zones, obtain samples for metallurgical test work, build confidence in grade continuity within the existing resource and to undertake down hole electromagnetic (EM) surveys.

“We are excited to be on the ground drilling and undertaking fieldwork at the Hayes Creek project,” Phoenix Copper CEO James Fox said.

“Excellent potential exists at Iron Blow and Mount Bonnie to define new mineralised positions near to the existing high-grade mineralisation.

“We will also undertake downhole and detailed surface EM to target new areas of massive sulphide mineralisation.

“Obtaining samples for metallurgical testwork will also allow a flotation program to commence shortly.”

Ground EM Survey at Pennor prospect

Orion Gold (ASX: ORN) is to commence a high-powered moving loop ground EM survey at the Pennor prospect, part of the company’s Fraser Range project in Western Australia.

Shallow, first-pass drilling at Pennor in August defined an extensive area of anomalous nickel values.

The EM survey will provide an initial test for electrical responses from possible massive sulphide accumulations below the depths tested in the shallow drilling.

A high-powered IP survey is also being designed to test for possible large disseminated sulphide bodies, which would not be detected by EM.

The surveys will also test for possible feeder structures between HA2 and Pennor.

The results are expected to assist the company to define follow-up targets for deeper RC and diamond drilling at the Pennor prospect.

Resolute Mining hits high-grade gold at Bibiani

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THE DRILL SERGEANT: Resolute Mining (ASX: RSG) has encountered a series of high-grade gold intercepts from the initial holes of an extensive surface and underground diamond drilling program being undertaken at the company’s Bibiani gold project in Ghana.

The recent surface and underground diamond drill program intersected high-grade gold mineralisation including:

30.9 metres at 13.32 grams per tonne gold from 276.7m;

40m at 20.62g/t gold from 431m;

22m at 11.81g/t gold from 109m; and

24m at 6.52g/t gold from 118m.

 

Source: Company announcement

 

The company considers the results it has achieved from the drilling so far to have confirmed and potentially build on the existing 1.7 million ounce resource at Bibiani it announced in August.

The 25,000m drill campaign is now 38 per cent complete and is expected to be completed by early 2015.

Resolute indicated the completed drilling program will be followed by new resource modelling for inclusion in a Feasibility Study on underground mining at Bibiani.

“We are extremely encouraged by these initial high-grade drill results, which support our belief that a mineable underground resource can be confirmed in the near term,” Resolute Mining chief executive officer Peter Sullivan said in the company’s announcement to the Australian Securities Exchange.

“We look forward to completing the drill program, updating our resource model and commencing a Feasibility Study into underground gold mining at Bibiani.”

Email: contact@rml.com.au

Website: www.rml.com.au

Hammer Metals claims new copper-gold discovery

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THE DRILL SERGEANT: Hammer Metals (ASX: HMX) has claimed a new copper discovery at the Scalper prospect in North West Queensland.

The discovery came during a recently-completed nine-hole Reverse Circulation (RC) drilling program at the company’s 100 per cent-owned Overlander North, Kalman and Scalper prospects located near Mount Isa.

The RC drilling program was designed to follow up the results from an earlier program at Overlander North and Kalman, and to provide an initial test of the

Scalper prospect, which the company describe to be a strong magnetic target located six kilometres along strike to the south of the Andy’s Hill IOCG prospect.

New copper-cobalt intersections were returned from Overlander North including:

OVRC031
89 metres at 1.1 per cent copper and 427ppm cobalt from 173m at a 0.1 per cent copper cut-off including, 19m at 1.9 per cent copper and 751ppm cobalt from 197m, 11m at 2.4 per cent copper and 770ppm cobalt from 222m, 4m at 2.3 per cent copper and 449ppm cobalt from 238m, and 4m at 3 per cent copper and 1162ppm cobalt from 253m.

OVRC030
131m at 0.59 per cent copper and 289ppm cobalt from 190m at a 0.1 per cent copper cut-off including, 3m at 1.1 per cent copper and 427ppm cobalt from 213m, and 27m at 1.4 per cent copper and 403ppm cobalt and 0.14g/t Au from 238m.

The new copper-gold discovery at the Scalper prospect was encountered by the first hole with indications of thick iron oxide copper-gold (IOCG) alteration and mineralisation present.

SCRC001
58m at 0.58 per cent copper and 0.13 grams per tonne gold at a 0.1 per cent copper cut-off including, 23m at 1.1 per cent copper and 0.27g/t gold from 77m, including 12m at 1.9 per cent copper and 0.45g/t gold from 87m.

Hammer said drilling at the Kalman prospect has confirmed near surface high-grade molybdenum and copper zones, including:

K135
17m at 0.54 per cent molybdenum and 12g/t Rhenium and 8g/t silver (3.7 per cent copperEq), from 74m and 24m at 0.46 per cent molybdenum, 0.24 per cent copper and 11g/t Rhenium (3.4 per cent copperEq), from 139 metres;

K137
20m at 0.18 per cent molybdenum and 3.3g/t Rhenium (1.3 per cent copperEq) from 70m;

K138
16m at 0.14 per cent molybdenum and 4g/t Rhenium (1.2 per cent copperEq) from 45m; and

K139
12m at 1.2 per cent copper and 0.5g/t gold (1.5 per cent copperEq) from 0m.

“These results further demonstrate the extensive mineralisation and prospectivity of the Overlander, Andy’s Hill and Scalper IOCG corridor,” Hammer Metals executive director Alex Hewlett said in the company’s announcement to the Australian Securities Exchange.

“In addition the recent drilling at Kalman has the potential to increase the size of the near-surface resources in the Kalman resource model which will improve the economics of any open pit mining scenario.

“We plan to move forward quickly with resource updates for Overlander North and Kalman and a follow up drilling program is planned for Scalper.

“We consider the results of this initial hole at Scalper to be highly encouraging and for Scalper to have potential for outlining an open pittable copper-gold resource.”

Website: www.hammermetals.com.au

MacPhersons extends mineralisation beyond Nimbus pit design

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THE DRILL SERGEANT: MacPhersons Resources (ASX: MRP) has intersected silver-zinc-gold mineralisation outside the planned stoping designs while drilling at the company’s Nimbus project near Kalgoorlie.

MacPhersons said the results could lead to an increase in resources and reserves for the project.

MacPhersons completed the drilling in October and subsequently commenced resource modelling of the Boorara gold zones to complete the inputs for a Feasibility Study (BFS).

The company has since focused drilling extensions of the silver-zinc-gold lenses at Nimbus.

 

Nimbus silver-zinc-gold mine located 10km east of the Kalgoorlie Super
Pit showing the current drilling program focused on adding additional
extensions to the existing mine design. Source: Company announcement

 

Receipt of preliminary assay results on the Nimbus depth and strike extensional drilling have so far returned:

7 metres at 1472 grams per tonne silver equivalent (Ag-Eq) in NBRC145 from 216m depth with interval averages of 755g/t silver and 21 per cent zinc;

NBRC151
10m at 852g/t Ag-Eq from 206m depth with interval averages of 542g/t silver and 8.3 per cent zinc;

NBRC153
14m at 280g/t Ag-Eq from 96m depth with interval averages of 258g/t silver;

NBRC157
8m at 518g/t Ag-Eq from 70m depth with interval averages of 326g/t silver and 3.05g/t gold; and

NBRC157
1m at 1057g/t Ag-Eq from 89m depth with interval averages of 761g/t silver and 6.58 g/t gold.

MacPhersons indicated the drilling at Nimbus will continue for the duration of the December Quarter, in the meantime the final diamond drillhole samples from Boorara are in the process of sampling for a variability study to be used for final metallurgical signoff on the gold zones.

This testwork will also be completed to BFS level.

“The results continue to support additional mineralisation which will add to the resource and reserve updates and form the final input into the feasibility studies due for completion in Q2 2015,” MacPhersons resources managing director Morrie Goodz said in the company’s announcement to the Australian Securities Exchange.

“We continue to identify that the upside at Nimbus is substantial and therefore we remain highly confident that the mine life could be extended significantly beyond the current five-and-a-half-year plan.

“The recent drilling has emphasised that gold-bearing intersections will continue to deliver additional value to the silver-zinc mineralisation as evidenced by the NBRC157 intersections up to 6.5g/t gold.

MacPhersons remains confident the overall project economics of the Nimbus project remain robust despite the metal prices identifying the falling value of the Australian dollar continuing to offset lower US dollar commodity prices as a factor.

The company said the growing the Nimbus inventory sufficiently to extend the project’s forecast mine life beyond 5.5 years, along with reductions in mining and processing costs, would in turn deliver significant benefits to the project’s overall economics.

Email: info@mrpresources.com.au

Website: www.mrpresources.com.au

Australian Mines detects conductor below mineralisation

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THE DRILL SERGEANT: Australian Mines (ASX: AUZ) claims to have detected a strong late-time bedrock conductor whilst carrying out an ongoing electromagnetic (EM) survey over the company’s Marymia project in Western Australia.

The company said the newly identified conductive body lies directly beneath a thick layer of nickel oxide mineralisation it had previously intersected during scout drilling of this particular nickel region.

Rotary air blast (RAB) drill hole NKB0724, which was completed as part of the scout drilling program returned:

22 metres at 0.58 per cent nickel from 22m, including 4m at 1.07 per cent nickel from 28m.

Australian Mines indicated this intersection was achieved immediately above the new bedrock conductor.

An adjacent RAB hole NKB0723, which is the only other hole drilled over this target area to date, also intersected nickel oxide mineralisation, returning:

16m at 0.67 per cent nickel from 8m down hole.

The company said modelling of the newly-detected EM conductor at Marymia, now known as the Burton prospect, indicates the top of the body occurs at a depth of 140m.

 

Location of the newly detected conductive body (Burton prospect)
superimposed over a coloured image of the high-resolution aeromagnetic
data. Source: Company announcement

 

Australian Mines flagged its intention to drill test the 600m strike length conductor in February 2015.

The company also said it would be continuing its expanded EM survey at Marymia, which will include testing the northern extension of the Simmons prospect, where it claims recent drilling confirmed the presence of sulphides near the basal contact of a komatiitic unit.

The current ground-based EM survey is expected to be completed by mid-December with the results due by February 2015.

“The identification of a late-time conductor beneath a thick layer of nickel oxide mineralisation further strengthens our belief that Marymia has the potential to host significant Kambalda-style nickel sulphide mineralisation,” Australian Mines managing director Benjamin Bell said in the company’s announcement to the Australian Securities Exchange.

“We look forward to providing further updates on our exploration activities as we finalise the EM survey in the coming weeks.”

Email: office@australianmines.com.au

Website: www.australianmines.com.au

Hi Ho, Hi Ho, it’s off to work we go

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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 zinc-silver copper-gold targets at Menninnie Dam

Musgrave Minerals (ASX: MGV) has commenced a drilling program to test three base metal targets at the Menninnie Dam project in the southern Gawler Craton region of South Australia.

The drilling program will test both zinc-lead-silver and copper-gold targets at Erebus, Mallee and Taal.

A minimum of 1500m of drilling is planned over at least three targets using a combination of reverse circulation (RC) and diamond drilling.

“The targets all look very prospective and each is of large enough extent to potentially host significant volumes of mineralisation,” Musgrave Minerals managing director Rob Waugh said.

“All the datasets align well to support the mineralisation model and the targets.”


Drilling to commence on Rio Grande phosphate project

Aguia Resources (ASX: AGR) has commenced diamond and reverse circulation (“RC”) drilling at the Três Estradas South tenement located within the Rio Grande phosphate project in southern Brazil.

The program will include approximately 3,000m of diamond and 1,000m of RC drilling, and is designed to expand the existing Três Estradas resource, located within the Três Estradas tenement.

RC drilling is expected to take one month to complete, with diamond drilling expected to be completed in three months.


Drilling to commence at Montepuez project

Metals of Africa (ASX: MTA) is to commence the maiden drill program at the company’s Montepuez project in the Cabo Delgado province of Mozambique in East Africa.

Drilling is anticipated to run for approximately six weeks.

Two drill rigs, both track mounted diamond (core) rigs will be utilised to simultaneously drill the project and will aim to complete approximately 2000m of drilling prior to Christmas.

The actual number of holes and the total metres drilled in the program will depend on the geology intersected in each hole, however it is anticipated that approximately 20 holes will be drilled for 2000m.

“We are eager to be embarking on this round of drilling with the aim of defining a maiden resource at our 100 per cent-owned Montepuez project,” Metals of Africa managing director Cherie Leeden said.

“There is more graphite contained within this small province than the rest of the world’s resources combined, it’s an extremely rich and unique corridor of geology and our projects are very well positioned within it.”

The company’s Rio Mazoe drill program will also commence after a slight delay due to the need to re-locate a water source for the drill rig.


Drilling at JOGMEC JV

Minotaur Exploration (ASX: MEP) advised drilling has commenced on the JOGMEC JV project, north of Cloncurry in Queensland.

A recent project review, in cooperation with JOGMEC (Japan Oil, Gas and Metals National Corporation, 52%; MEP 48% and diluting) expanded the program to seven drill holes at six prospects across the JV tenements.

JOGMEC is funding the work and elected to again increase the original $800,000 budget through to end March 2015, to $1.252 million.

The drill campaign will test a range of geophysical targets generated by a ground geophysical program comprising gravity, ground magnetics, ground EM and DHEM surveys.


Commencement of drilling at Bunawan

RTG Mining (ASX: RTG) has commenced diamond drilling on EP-033-XIII at the company’s Bunawan project in the Philippines.

An initial program of diamond drilling has been planned on the EP in the Rosario area in Agusan del Sur, Mindanao.

Drilling has started with one diamond drill rig, with a second rig scheduled to start soon.

The drill program has been designed to target areas where previous site investigation programs, including detailed mapping, rock chip sampling, a ground magnetic survey and stream sediment sampling have identified several prospective areas and walk up drill targets including Mahunoc, Imbudo and Balelen.

IMX confirms Chilalo graphite discovery

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THE DRILL SERGEANT: IMX Resources (ASX: IXR) has received the first intersection assays from a Reverse Circulation (RC) drilling program carried out at the Chilalo graphite project, located on the company’s Nachingwea property in Tanzania.

The assays are from six holes drilled at Chilalo, where drilling returned a number of near-surface intersections including:

Hole NRC14-140
24 metres at 11.7 per cent total graphitic carbon (TGC) from 28m, including 14m at 14.9 per cent TGC;

Hole NRC14-149
15m at 11.9 per cent TGC from 58m, including 10m at 13.7 per cent TGC; and

Hole NRC14-150
18m at 12.7 per cent TGC from 16m, including 14m at 14.6 per cent TGC.

IMX said it had drilled a total of 33 RC drill holes into several Versatile Time Domain Electromagnetic (VTEM) targets at the project, all of which intersected graphite.

The company explained the program began with a specific number of targets to be tested, however the drill plan was progressively refined as work progressed, with focus being on grade and product quality.

A total of 13 holes were drilled into the high-grade discovery zone, defining mineralisation over a strike length of 400m, with visual estimates suggesting a potential strike length greater than one kilometre.

The mineralisation outcrops at surface and remains open down-dip.

“The latest results added further weight to the exciting potential of the Chilalo project, which is increasingly emerging as a high-grade, near-surface graphite deposit,” IMX Resources CEO Phil Hoskins said in the company’s announcement to the Australian Securities Exchange.

“We are very pleased with the picture that is emerging at Chilalo, with all the results received to date confirming a highly attractive graphite opportunity that appears to be undervalued compared to our peers.

“With diamond drilling underway, we are now working towards the delineation of a maiden JORC resource estimate as well as the completion of metallurgical testwork to provide the company with a clearer insight into the potential value of the Chilalo mineralisation.”

Email: info@imxres.com.au

Website: www.imxresources.com.au

Northern Star claims new discovery at Kundana

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THE DRILL SERGEANT: Northern Star Resources (ASX: NST) has claimed to have made another high-grade gold discovery on the company’s 100 per cent-owned tenements at the Kundana project on the outskirts of Kalgoorlie.

The company has completed a first round of drilling at the Millennium target, which has returned results of:

15 metres at 6.2 grams per tonne gold, including 4m at 14.7g/t gold;

3.2m at 26.6g/t gold;

3m at 11.2g/t gold; and

2.3m at 7.9g/t gold.

Northern Star explained the Millennium discovery was made just 200m from surface and is located immediately adjacent to the dormant South/Centenary mine, which produced 309,000 ounces of gold until production stopped in 1999.

The Millennium deposit has so far been defined over a 500m strike and remains open to the North and at depth.

 

Millennium long section showing high-grade drill intersections. Source: Company announcement

 

According to Northern Star it would be accessible from either the dormant Centenary mine or the North pit located on the opposite side, which would bring down the capital cost of any development.

The company believes Millennium has a number of parallels with its Pegasus deposit, which is located only 3.5 kilometres to the south and also on the K2 structure at Kundana.

Pegasus hit first ore in development three weeks ago and is due to come into production by the middle of CY2015.

It is expected to initially contribute 50,000 ounces of gold to Northern Star’s annual production.

Northern Star said it had discovered Millennium by applying the same geological theory which led to the Pegasus discovery – a theory which supposes there are gold shoots with multiple plunge orientations rather than a single plunge direction.

“This is a highly significant discovery for several reasons,” Northern Star managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.
 
“The intersections to date suggest Millennium is a high-grade deposit which can be developed at a low cost thanks to its immediate proximity to existing mine infrastructure.

“The low-cost nature of such a deposit is made even more attractive by the fact that this ground is 100 per cent-owned by Northern Star.

“The encouraging side of the Millennium discovery is that it could lead to further discoveries on 100 per cent-owned Northern Star tenements.”

Northern Star indicated another two holes have intersected the prospective structure with one containing visible gold with assays pending.

Further drilling with a surface diamond rig is underway both along strike to the North and down dip from current intersections.

Email: info@nsrltd.com

Website: www.nsrltd.com

St George identifies new nickel target at Windsor

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THE DRILL SERGEANT: St George Mining (ASX: SGQ) has identified a new EM conductor at the Windsor nickel sulphide prospect within the company’s 100 per cent-owned East Laverton property in Western Australia.

The conductor was identified by a downhole electromagnetic (DHEM) survey recently completed at the Windsor prospect , which surveyed drill hole WINRC005.

St George said this has identified an off-hole EM response situated proximally to a zone of disseminated nickel sulphides the company has intersected in three previous RC (reverse circulation) drill holes at the Windsor prospect.

Newexco, the company’s geophysical adviser, has designed a drill hole to test this EM conductor.

 

Map showing the planned drill holes for the Windsor nickel sulphide
prospect. WINRC006, to be drilled towards 060 (to the north-northeast,
and back into the ultramafic), will test the new EM conductor at
Windsor. Source: Company announcement

 

St George explained disseminated nickel sulphides do not provide an EM response, which it has led it to consider a potential source for this EM conductor is matrix or massive sulphides.

WINRC005 intersected a thick inner section of a komatiite channel between 127 metres to 269 metres, with an average nickel value over this section of 0.31 per cent nickel (based on interim XRF results).

Higher grade zones in WINRC005 included:

1m at 0.53 per cent nickel from 155m; and

5m at 0.44 per cent nickel from 162m.

“A combination of drilling and downhole EM surveys has resulted in many major nickel discoveries in the Yilgarn in recent years,” St George Mining executive chairman John Prineas said in the company’s announcement to the Australian Securities Exchange.

“We are applying this approach in our current drilling program and the results so far are very, very encouraging.”

Website: www.stgm.com.au