Early assays encourage Montezuma

THE DRILL SERGEANT: Montezuma Mining Company has received early assay from a recently completed RC drilling program carried out at the company’s 100 per cent-owned Butcherbird copper project located approximately 120 kilometres south of Newman in Western Australia.

The company has received assay results for the first two holes from the drilling.


Source: Company release

One of these holes intersected 47 metres of continuous copper mineralisation from 113 metres averaging 1.81 per cent copper and 214 parts per million cobalt.

The company said the mineralisation remains open, ending in 3.15 per cent copper at a depth of 160 metres.

 A higher grade interval of 6m at 6.08 per cent copper and 631ppm cobalt occurs at the top of the zone.

“Assays are pending for the final 14 metres of this hole and for the remaining 17 holes,” the company said in its announcement to the ASX.

“The drilling intersections are considered to be close to true thickness based on previous drilling and the dips estimated from the IP data.”

The company said mineralisation is open along strike and at depth within a striking corridor greater than six kilometres.

Previous drilling carried out by Montezuma 130m west along this shear zone confirmed the presence of copper sulphide mineralisation with results including:

–    18 metres at 0.63 per cent copper and 859ppm cobalt from 154 metres and 10 metres at 0.82 per cent copper and 581ppm cobalt from 180m, including 3 metres at 1.94 per cent copper and 0.12 per cent cobalt.

Sorby drilling remains consistent for Kimberley Metals

THE DRILL SERGEANT: Kimberley Metals has received the results from 50 recently-completed drill holes from the Sorby Hills project, located near Kununurra in the East Kimberley region of Western Australia.

The drill holes form part of a major reverse circulation drilling program conducted by the company during September and October of this year, and follow on from the high-grade results it had announced to the market in September.

Kimberley Metals claims the Sorby Hills project to be the largest undeveloped silver-lead deposit at open cut depth in Australia.

The project is jointly owned by Kimberley Metals (75%) and China’s largest lead and silver smelter, Henan Yuguang Gold and Lead Company (25%).

The drilling program was designed to support the Joint Venture’s strategic plan to commence a 500,000 tonnes per annum open cut mining operation from 2013 and has predominantly targeted the shallow higher grade D-E Deposit (formerly known as D & E Pods).

So far the company has received results for 78 of the 109 holes that were drilled during the recent program.

Kimberely Metals said the latest results are consistent with previously announced drill holes.

The results have returned some high-grade intersections including but not limited to:

25 metres at 8.4 per cent lead and 85 grams per tonne silver;

11m at 14.2 per cent lead and 116 g/t silver; and

11m at 7.8 per cent lead and 197 g/t silver.

Kimberley Metals said the new results have provided the Joint Venture with further confidence that the drilling program will lead to a significant conversion of Inferred Resources to the Indicated Resource category and an upgrade in metal content for the D-E Deposit.

It will be commencing work on the new Resource Estimate as soon as the remaining results have been received and the estimate is anticipated to be completed by early December 2011.

The company said the D-E Deposit remains open down dip to the east in most areas, with the recent results suggesting it is likely to merge along strike to the north with the F Deposit.

The Joint Venture’s strategy remains to focus on shallow high grade mineralisation (less than70m deep) amenable to low cost open pit mining operations in C-DE deposits.

“These latest results give added emphasis to the potential for a low cost, high margin open cut operation to be established at Sorby Hills from 2013,”Kimberley Metals executive chairman Jim Wall said in the company’s announcement to the Australian Securities Exchange.

African Iron strengthens Mayoko Resource

THE DRILL SERGEANT: Australian-based African Iron has updated the JORC mineral resource at its 92 per cent-owned Mayoko iron ore project, located in the Republic of Congo, West Africa by 121 million tonnes.

The Mayoko mineral resource now comprises an Indicated and Inferred hematite direct shipping ore component of 44 million tonnes at 55 per cent iron and an Inferred beneficiable DSO component of 77 million tonnes at 41 per cent iron.

African Iron said it had improved its geological confidence at Mayoko as a result of infill drilling.

This heightened confidence has resulted in 58 per cent of the DSO Resource being classified as Indicated (25Mt at 55 per cent iron).

The company said the beneficiable DSO Resource represents iron enriched banded iron formation (BIF) above fresh magnetite bearing BIF.

Sighter metallurgical testwork carried out by the company has demonstrated the beneficiable DSO material produces a saleable fines product with low levels of deleterious elements through crushing and screening followed by a combination of conventional dense media, and gravity separation.

The initial Inferred Mineral Resource for the Mayoko project was announced in May 2008 at 33Mt at 56 per cent iron.

That estimate was based on data from 26 vertical diamond drill holes of a 38 hole drilling program undertaken between 1974 and 1975.

In 2010, a further 18 diamond drill holes were completed to confirm the strike and dip continuity, thickness and grade, of the iron mineralisation at Mayoko.

On 23 February this year, African Iron commenced a reverse circulation and diamond drilling program specifically designed to upgrade the DSO Resource and to define an initial beneficiable DSO Resource.

As of October 2011, a total of 22 diamond holes had been completed for inclusion in the 2011 Resource Update.

This drilling was concentrated on the Mount Lekoumou prospect with future drilling to extend along strike to Mount Mipoundi.

African Iron said the 2011 Resource Update will underpin the commencement of a pre-feasibility study with a primary focus on early cash flow from mining DSO, and thereafter beneficiable DSO, material and the export of five million tonnes per annum of iron ore.

“The 267 per cent increase in Mayoko’s JORC resource will enable the company to immediately commence a pre-feasibility study investigating the commencement of production by mid-2013 through the mining of Direct Shipping Ore, and thereafter beneficiable DSO material, to generate early cash flow,” African Iron independent non-executive chairman Ian Burston said in the company’s announcement to the Australian Securities Exchange.

“Shareholders can look forward to further resource growth and value creation in 2012 with only 28 per cent of the known Mt Lekoumou to Mt Mipoundi mineralised strike drilled, and beyond 2012 with Mt Lekoumou to Mt Mipoundi representing only two of the known prospects contained within the company’s 1000 square kilometre Mayoko exploration licence.”

First hole delivers for Blackthorn

THE DRILL SERGEANT: Blackthorn Resources has received an encouraging result from the first drill hole it has completed on the Kitumba copper deposit at its Mumbwa project in Zambia.

The hole intercepted drilled thickness intervals that include:

–    282.7 metres at 1.05 per cent copper between 178.3 metres and 461 metres, including 60 metres at 2.58 per cent copper between 324 metres and 384 metres.

“These first assays results are extremely positive indeed, showing continued evidence of high-grade intercepts of copper mineralisation in the Kitumba inferred mineral resource zone,” Blackthorn Resources managing director Scott Lowe said in the company’s announcement to the Australian Securities Exchange.

“The company is very pleased with the results received so far and is eager to progress the drilling program and further define the mineral resource potential at Kitumba.

“There is growing evidence there is something very real at Kitumba and situated at reasonable mining depths to consider potential open-cut and/or underground mining.

“Blackthorn Resources will aim to add further value to this project through mineral resource development and exploration of other targets.”

The company is conducting its Phase 5 exploration program at Mambwa, which includes core drilling of 16 targets.

Three drilling rigs commenced work on the program in August to conduct a series of ‘infill’ and ‘step-out’ holes at Kitumba and to drill ‘scout’ holes on regional targets it had identified nearby.

The aim of the drilling program is to enable the company to better define the inferred mineral resource category at Kitumba, and explore for additional mineralised units to add further volume to the existing mineral resource.

The first hole of the program was drilled at the company’s first ‘infill” target to intercept the core of the copper mineralisation that has previously identified at Kitumba.

A series of 522 samples were collected throughout the entire length of the drill hole.

Blackthorne said it was extremely pleased with the hole as it intersected some of the highest copper grades observed on the Mumbwa project to date.

The company said it was encouraged by these results as they provide it with further confidence in the continuity and grade distribution within the Kitumba IOCG system.

Further drilling and mineralised intercepts are required from other surrounding drill holes to refine the geological and resource models for the area.

Chesser drills Turkish delights

THE DRILL SERGEANT: Chesser Resources has received the latest results from its current 30,000 metre drill program being carried out at the Kestanelik project in western Turkey.

The company’s aim is to complete the drilling required to estimate a JORC resource for the already-drilled high-grade veins at Kestanelik (Karakovan, K1, K2, K3 and KS).

Chesser is also continuing to test and drill other high priority drill targets on the property to JORC resource status.

The company intends to complete at least 30,000 metres of drilling on the property during the current financial year.

“We are continuing to build the extent of high grade mineralisation at Kestanelik,” Chesser Resources managing director Dr Rick Valenta said in the company’s announcement to the Australian Securities Exchange.

“The new result in KERC-44 comes from a scout hole, and is the highest grade intercept to date on the property. It is from a zone first recognised in our geophysical surveys, and once again highlights the untapped potential of the property.

“We will follow up this new zone as aggressively as we can.

“The new assay result from the K1 vein is also exciting, and has started to show clearly that it has the potential to contribute significantly to the resource, and given us strong indications of the likely position of additional high grade mineralisation on the structure.”

Chesser has now received results for the first thirteen holes of the program, as well as partial results from a program of sampling of all unsampled intervals from previous 2010 and 2011 drilling.

Additional results are reported from stepouts on the K1 vein, as well as from the K2 vein, the Meydan zone, and additional scout drill targets.

At the K1 vein additional results were received from analysis of previously un-sampled intervals from the 2010 drill program, including assays which upgraded a previously reported interval of moderate gold grade.

The complete sampling of the hole has increased the valuable intercept by 11.5 metres at a higher grade, to an interval of:

–    15.8 metres at 5.7 grams per tonne gold and 2.23 grams per tonne silver from 13.5 metres, including 2.5 metres at 26.9 grams per tonne gold and 8.3 grams per tonne silver from 16 metres.

Additional drill results were also received from reverse circulation holes on the Meydan zone.

Assay results have now been received from two attempted drillholes in the area of good surface high grade values including:

–    18 metres of 1.1 g/t gold and 0.7 g/t silver; and

–    18 metres at 1.4 g/t gold and 2.0 g/t silver from surface, including one metre at 8.26 g/t gold and 19.1 g/t silver.

Sheffield announces Inferred Resource

THE DRILL SERGEANT: Bulk minerals explorer Sheffield Resources has announced an Inferred Resource for its Ellengail heavy mineral sand (HMS) project, located seven kilometres west of Eneabba in the mid-west region of Western Australia.

The Inferred Resource measure 46.45 million tonnes at 2.2 per cent heavy minerals for 1.040 million tonnes of contained heavy minerals, including an Inferred Resource for the high grade core to the deposit of 11.25 million tonnes at 5.0 per cent heavy minerals for 560,000 tonnes of contained heavy minerals.

“The Ellengail resource is an important milestone in Sheffield’s near-term strategy to build a significant mineral sands resource base in the North Perth Basin,” Sheffiled Resources managing director Bruce McQuitty said in the company’s announcement to the Australian Securities Exchange.
“We have a large pipeline of mineral sand projects queued for exploration and evaluation work.

“The West Mine North deposit, located just three kilometres south of Ellengail, is scheduled for resource estimation work next, followed by the large McCalls deposit.”

Sheffield Resources purchased the Ellengail and West Mine North projects from Iluka just 10 months ago.

Iluka retains a 1.5 per cent royalty in the project.

Sheffield described Ellengail to be typical of the Eneabba deposits mined in the region for many years.

The project has a high value assemblage of 83 per cent valuable heavy mineral, comprising 8.9 per cent zircon, 8.7 per cent rutile, 63.5 per cent ilmenite and 1.9 per cent leucoxene.

The Ellengail resource estimate is based entirely on historic drilling by Iluka Resource and RGC, which completed close-spaced drilling on the deposit.

Sheffield said it plans to complete further drilling at Ellengail in 2012 to allow a higher confidence resource category to be applied.

Kalgoorlie upgrades Bullant

THE DRILL SERGEANT: Kalgoorlie Mining Company has release an upgraded resource estimate of 446,900 tonnes at 4.68 grams per tonne containing 67,300 ounces of gold for the East Lode resource at its Bullant gold mine located 70 kilometres north west of Kalgoorlie, Western Australia.

The updated Resource Estimate is a 440 per cent increase over the previous East Lode resource developed by Barrick and is based on exploration holes the company has drilled into the East Lode since it restarted the operations earlier this year after Barrick closed down the mine in December 2009.

These additional resources in the East Lode take the total gold resource ounces at the Bullant gold project to 302,200 ounces of gold representing a 25 per cent increase in less than 10 months.

The estimation of the East Lode utilised the information gained from a total of 30 newly drilled holes.

KMC said that the results combined with the validation of historic drill holes that were previously drilled from both surface and underground to demonstrate the East Lode to be a continuous mineralised structure.

“The classification of the ore body is based on the confidence and the nature of the ore body as seen during ore drive development and the density of drill holes in a given region,” Kalgoorlie Mining Company said in its announcement to the ASX.

“The entire southern region has been incorporated into one complete modelled structure.

“This is perhaps where the biggest change in the size and shape of the model has occurred, with Barrick electing to place an indicated classification around the crown pillar area, which has now been depleted.”

KMC has converted the area surrounding the new development to Measured, and by using Stage 1 and 2 drilling has extend the Indicated portion of the model 180m below the current level of development.

The company said its confidence in the Inferred material was based on shallow drill intercepts, which it has been tied into the surface drilling that was carried out prior to 2011.

“The Inferred material provides a number of exploration targets to be followed up by future exploration programs,” the company said.

“The resource update not only provides an extension to the East Lode, but also serves as an active Grade Control model in preparation for stoping.

The next stage of drilling, Stage 3 is currently being processed.

“When drill results become available they will be released to the market, along with subsequent updates of the resource.”



Black Range completes inaugural drilling campaign

THE DRILL SERGEANT: Black Range Minerals has completed its maiden drilling program at the Hansen and Picnic Tree uranium deposits in Colorado, USA.

Black Range completed a total of eight diamond core holes at the Hansen deposit for 1,741 metres while a further three diamond core holes for 170 metres were completed at the Picnic Tree deposit.

This program was conducted by the company in order to obtain additional geological, geotechnical, metallurgical and hydrological data.

Black Range said the data acquired by the drilling prgram will be used to update previous feasibility studies that were undertaken into the development of the Hansen deposit during the early 1980s.

Analytical results from recent drilling at the Hansen deposit have been reported previously.

These included:

–    11.1 metres at 0.111 per cent uranium equivalent, including 4.1 metres at 0.165 per cent uranium equivalent, and 1.8 metres at 0.200 per cent uranium equivalent;

–    1.7m at 0.138 per cent uranium equivalent;

–    24.8m at 0.070 per cent uranium equivalent;

–    13.4m at 0.063 per cent uranium equivalent;

–    33.5m at 0.061 per cent uranium equivalent, including 10.1m at 0.093 per cent uranium equivalent, 4.3m at 0.100 per cent uranium equivalent; and

–    1.5m at 0.171 per cent uranium equivalent.

According to Black Range the recent drilling carried out at the Picnic Tree deposit confirmed the presence of shallow, high-grade mineralisation.

Results included:

–    6.1m at 0.203 per cent uranium equivalent, from 40.5m, including 4.3m at 0.277 per cent uranium equivalent, from 41.2m.

“It is noted that numerous holes drilled during the recently completed program were located primarily to evaluate geotechnical conditions, rather than to evaluate resource grade, thickness and continuity, which has been well defined with the abundance of previous drilling data,” Black Range Minerals said in its announcement to the ASX.

“Representative ore samples from both the Hansen and Picnic Tree deposits are now being collected.

“These will be sent to suitable laboratories for metallurgical test work.”

Black Range has now commenced mine design work for both deposits which it said was an integral part of updating the historic feasibility study and determining the optimal development path for the project.



Voyager discovers more at KM project

THE DRILL SERGEANT: Voyager Resources has claimed a further discovery at its KM copper porphyry project in the South Gobi region of southern Mongolia.

Initial drilling on the Gaans prospect at KM has intersected:

–    46 metres at 1.1 per cent copper and 14.1 grams per tonne silver from 16 metres; and

–    38m at 0.88 per cent copper and 4.5 g/t silver from 22m.

The Gaans is located approximately 2.5 kilometres east of the company’s previously reported Cughur discovery.

Voyager is confident Gaans is hosted in the same magmatic hydrothermal breccia as Cughur.

The company is currently undertaking exploration and development drilling at both prospect as well as at other regional targets.

There are now five rigs operating at KM including two Reverse Circulation (RC) drill rigs and three diamond core rigs.

Recent results from the Cughur discovery include:

–    107m at 1.5 per cent copper and 1.4 g/t silver from 20m;

–    72m at 0.8 per cent copper and 2.9 g/t silver from 32m; and

–    24m at 1.4 per cent copper and 4.0 g/t silver from 54m.

Voyager said that completed diamond tails have extended previously reported mineralisation in completed RC drilling at Cughur and include:

–    116m at 2.4 per cent copper and 7.2 g/t silver from 30m;

–    36m at 1.7 per cent copper and 5.5 g/t silver from 70m;

–    130m at 0.9 per cent copper and 2.5 g/t silver from 22m; and

–    90m at 0.7 per cent copper and 1.2 g/t silver from 48m.

Voyager said the ongoing exploration and drilling at KM is strengthening the company’s belief that it is an exceptional porphyry copper project that has the potential to be a company making asset.

“From this work, Voyager is advancing its understanding of the geology and mineralisation at KM, with Voyager now believing that the magmatic hydrothermal breccias intersected in drilling at Gaans and Cughur form a continuous semi-circular annulus to the south of a large granitic complex,” Voyager said in its announcement to the ASX.

“The hydrothermal breccia is interpreted to have a surface projected area exceeding 5.2 square kilometres.

“This is mainly inferred from modelling of the magnetic and IP geophysical surveys and supported by geological mapping where mapped outcrops and sub crops of quartz tourmaline breccias occur over a 5 kilometre east to west corridor covering the circular annulus.

“If this proves to be correct, KM would qualify as one of the largest breccia complexes found to date.”



Newera encouraged by Giant drilling

THE DRILL SERGEANT: Newera Resources said it has been encouraged by the first batch of assay results it has received from to samples taken during a recently conducted aircore (AC) drilling program at the company’s Giant prospect.

The Giant prospect is located within the Jailor Bore project in the Gascoyne Region, 250 kilometres northeast of Carnarvon in Western Australia.

The results Newara has received so far represent the majority of results from the drilling program carried out at Jailor Bore in August.

Approximately one hundred further samples are still to be assayed with the company expecting to receive those results in November.

A total of 211 aircore holes, along three drill lines, were drilled at the Giant prospect for a total of 2071 metres.

To date, Newera has received the results for 832 single one-metre samples, all of which have been analysed using a four acid digest.

Elements analysed included uranium, vanadium and thorium.

From the 832 results received, Newera said it has identified 64 drill holes generating 69 significant intersections of mineralisation with uranium above 100 parts per million.

“Newera believes that while the uranium results could be considered of moderate grade, they are significantly anomalous and correlate well between the three lines spaced 320 metres apart,” the company said in its ASX announcement.

“The mineralised zone remains open to the north and south. Further drill lines can be added in an attempt to extend the known and now tested zone of mineralisation.

Newera said it was encouraged by both the uranium and vanadium results.

“While the uranium results are higher than expected, the Vanadium results are substantially higher than expected,” the company said.

“Uranium to vanadium ratios are generally between 0.8 and 2.5.

“Further work is required but results from this initial phase of detailed exploration are considered very encouraging and further extension drilling will be planned to commence after the wet season in 2012.”