Gold Road receives final Gruyere drill out numbers

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THE DRILL SERGEANT: It will be interesting to see what Gold Road Resources (ASX: GOR) has to say in its presentation slot at Diggers & Dealers next week.

The company has received the remaining gold assays from resource definition drilling on the Gruyere deposit.

Gold Road said it is compiling the final assay information in ongoing resource estimation activities, which are aimed to produce a Maiden Mineral Resource for the Gruyere deposit within the September 2014 Quarter.

The new gold assays have been derived from three separate drilling programs.

The first of these comprised 20 Reverse Circulation (RC) drill holes, which in‐filled on a 50 metre section spacing to an approximate depth of 150m.

Gold intercepts from the 50m section infill program included:

14GYRC0124
85 metres at 1.38 grams per tonne gold from 35m, including 56m at 1.65g/t gold from 35 metres; and 39m at 3.66g/t gold from 123m, including 17m at 1.73g/t gold from 128m, and 14m at 7.71g/t gold from 148m, including 6m at 15.55g/t gold from 153m or 3m at 25g/t gold from 156m;

14GYRC0120
49m at 2.53g/t gold from 125m, including 39m at 3.02g/t gold from 134m; and

14GYRC0135

5m at 2.94g/t gold from 64m, 21m at 1.61g/t gold from 73m, and 35m at 2.1g/t gold from 97m.

 

Gruyere plan projection illustrating interpreted geology and location of
recent drilling on 50 metre infill sections. Source: Company
announcement

 

The second program was 26 close-spaced RC holes the company designed to test short scale continuity of geology and grade.

Intercepts from the Detailed Drilling Program included:

14GYRC0114
14m at 5.05g/t gold from 22m, including 12m at 5.79g/t gold from 22m;

14GYRC0090
59m at 1.23g/t gold from 43m, including 22m at 1.45g/t gold from 43m, and 8m at 1.64g/t gold from 70m; and 17m at 3.33g/t gold from 113m; and

14GYRC0093
14m at 1.59g/t gold from 17m, including 7m at 2.67g/t gold from 24 metres; 52m at 1.64g/t gold from 35m, including 10m at 2.42g/t gold from 36m, and 10m at 2.45g/t gold from 77m; 5m at 1.83g/t gold from 90m, including 3m at 2.48g/t gold from 92m; and 21m at 1.29g/t gold from 99m, including 7m at 1.9g/t gold from 99m and 6m at 1.59g/t gold from 110m.

The final program consisted of extensions drilled by re‐entry of 13 previously drilled holes, which had ended in mineralisation.

Intercepts from the Extensions to Existing Drilling included:

13GYRC0033
46m at 1.13g/t gold from 102m, 22m at 2.44g/t gold from 163m, and 11.9m at 1.71g/t gold from 192m;

13GYRC0050
35.8m at 1.24g/t gold from 170.5m, and 44.5m at 1.34g/t gold from 220m; and

13GYRC0058
70m at 1.46g/t gold from 103m, including 19m at 1.91g/t gold from 111m, 8m at 1.95g/t gold from 133m, 8m at 1.67g/t gold from 152m, and 2.4m at 3.95g/t gold from 164.4m.

“The 50 metre sections infill program returned intersections comparable to previous drilling on 100m spaced sections to depths of approximately 150 metres,” Gold Road Resources said in its ASX announcement.

“This provides excellent confirmation of the geology and grade of mineralisation between sections along the main 1,800m long zone of the Gruyere deposit.”

Email: perth@goldroad.com.au

Website: www.goldroad.com.au

Rox encounters more high-grades at Musket

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THE DRILL SERGEANT: It’s probably fair to say representatives of Rox Resources (ASX: RXL) will have a spring in their collective step at Diggers & Dealers next week.

The company has announced an encounter with further massive high-grade nickel sulphide intersections from recent Reverse Circulation (RC) drilling carried out at the Musket prospect.

Musket forms part of the company’s 100 per cent-owned Fisher East nickel project, located 500 kilometres north of Kalgoorlie in Western Australia.

Rox is conducting the RC drilling at Musket to define and delineate additional near-surface nickel sulphide mineralisation as part of a resource estimation it currently has underway.

“These new RC results back up the results we released from Musket a few days ago,” Rox Resources managing director Ian Mulholland said in the company’s announcement to the Australian Securities Exchange.

“It looks like we have identified a near-surface, thicker high-grade zone, which is consistently running above eight per cent nickel.

“The grades being recorded in this zone at Musket are similar to those intersected at Cosmos during the early exploration stage of that deposit, and those grades made the mine.”

The latest high-grade massive nickel sulphide intersections achieved include:

MFEC071
4 metres at 8.4 per cent nickel from 1 78m, including 2m at 14.7 per cent nickel; and

MFEC072

5m at 8.4 per cent nickel from 205m, including 3m at 12.1 per cent nickel, including 1m at 20.7 per cent nickel from 206m.

 

MFEC072 RC sample piles. Source: Company announcement

 

A further RC hole, MFEC074, drilled at the top of the main mineralised zone returned 1m at 3.6 per cent nickel from 142m, while hole MFEC073, drilled to the south of the mineralised zone did not return any significant result.

Rox said it is waiting on results from additional RC drilling at Musket, Cannonball and Corktree, which it expects to receive over the next two weeks.

The company has also completed an Aircore/RotaryAir Blast (RAB) drilling program, from which results are also expected within the next few weeks.

Email: admin@roxresources.com.au

Website: www.roxresources.com.au

Kibaran encouraged by final Epanko results

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THE DRILL SERGEANT: Kibaran Resources (ASX: KNL) has received further encouragement from the final batch of assay results from recent Reverse Circulation (RC) drilling at the company’s Epanko deposit within the Mahenge graphite project in Tanzania.

The company reported all the latest drill holes have intersected high-grade, premium large flake graphite mineralisation, with the majority encountering graphite mineralisation from surface to the end of hole.

The latest results complement earlier assays that delivered impressive intersections and high-grade graphite with intersected grades as high as 20.1 per cent total graphitic carbon (TGC).

Kibaran said the drill program had doubled the strike length of Epanko graphite mineralisation to more than one kilometre, which it declared to demonstrate upside potential to the size of the deposit.

The company is now working towards an upgrade of the existing JORC Inferred Mineral Resource at Epanko (14.9 million tonnes at 10.5 per cent TGC for 1.56 million tonnes of contained graphite] to the Indicated/Measured category.

Highlights from the recent RC drill results include:

MHRC062
30 metres at 8.2 per cent TGC from 8m, including 8m at 12.2 per cent TGC;

MHRC063
54m at 8.6 per cent TGC from 9m, including 19m at 10.4 per cent TGC;

MHRC064

53m at 14 per cent TGC from 15m.

 

Source: Company announcement

 

“These final results have again met Kibaran’s expectations in respect of graphite quality,” Kibaran Resources executive director Andrew Spinks said in the company’s announcement to the Australian Securities Exchange.

“Importantly, they allow the geological modelling to be completed in terms of grade estimation and the subsequent delivery of the resource upgrade and scoping study.

“The company is now initiating a diamond drilling program for the purpose of providing larger scale samples for further metallurgical test work to further define the optimum processing flowsheet.

“Testwork will include comminution tests to determine work indexes for crushing and milling sizing and design as well as provide geomechanical information for pit design: the results of which will be ultimately used in the Epanko Feasibility Study.”

Email: info@kibaranresources.com

Website: www.kibaranresources.com

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 underway at Thunderbird

Sheffield Resources (ASX: SFX) has commenced drilling at the company’s 100 per cent-owned Thunderbird mineral sands project.

Thunderbird has total mineral resources of 2.62 billion tonnes at 6.5 per cent heavy minerals (HM) (Measured, Indicated and Inferred) for 170 million tonnes of contained HM, including a high-grade component of 740 million tonnes at 12.1 per cent HM.

The 2014 drilling program at Thunderbird will target extensions to shallow high-grade mineralisation open up-dip, with the aim of expanding the current resource and improving the project’s economics.

Infill drilling will target areas of the resource which are currently classified as Inferred and were excluded from consideration for the current Scoping Study pit optimisation.

Sheffield said positive results from this drilling could enable a resource upgrade and potentially enhance the project’s economics and mine life.

“With the commencement of our field programs as planned, we are on-track to deliver the Thunderbird Pre-feasibility Study in Q1 2015, followed by the Definitive Feasibility Study for targeted initial production in 2017,” Sheffield Resources managing director Bruce McQuitty said.


Kendenup nickel target

Windward Resources (ASX: WIN) has received approval from the Western Australian Department for Mines and Petroleum for diamond drill testing of the company’s Kendenup nickel target, located near Mount Barker, in the Fraser Range South (FRS) project area.

To accommodate existing landholder activities this drilling is planned to commence in late August.

The Kendenup prospect was identified as a high-priority target from a HeliTEM survey flown over the area.

Follow-up soil geochemistry, over the discrete late-channel EM conductor, produced a coherent 20-times background nickel anomaly.

Two initial drillholes will be completed to test the target zone with a third contingent on results from the first two.

Drilling results are expected by mid-September.


BCL allocates third drill rig to Maibele North nickel project

Joint Venture partners BCL Limited and Botswana Metals (ASX: BML) announced that BCL has allocated a third drill rig to the Maibele North nickel project fast tracking the current 30 holes drill program for a total 6000 metres.

“The additional RC drill rig demonstrates BCL commitment to the Maibele North project and to the Joint Venture,” Botswana Metals chairman Patrick Volpe said

“There are now three drill rigs on site. The RC rig will be used for pre collaring aimed at fast tracking the drill program.

“The Joint Venture partners are very encouraged with the sulphide mineralisation that has been encountered in the twin and step out holes so far.

“We are waiting for the independent laboratory analysis, testing essentially for Nickel, Copper and PGEs in respect to grade and metres intersected by the drilling.

“Metallurgical testing of some of these cores will indicate recovery levels for nickel and copper, and determine if the Maibele ore is compatible for processing at the BCL plant at Selebi Phikwe.”

BML said the objective of the program is to complete twin, infill and step out drilling and to determine a JORC complicate resource within 6 months.

If the Maibele North project proves to be economic, BCL can toll treat the ore just 55km away at its processing facilities at Selebi Phikwe and has the right to negotiate an off-take agreement for BML’s share at commercial prices.


Drilling underway at Pevkos

BMG Resources (ASX: BMG) has advised that drilling has commenced at the Pevkos prospect at the company’s Black Pine project in Cyprus.

More than 20 holes have been planned for over 2,000 metres of drilling at the Pevkos prospect and the Mala prospect at the Vrechia project.

BMG said it would provide further updates as the drilling progresses.

Mining Projects Group 3D modelling defines new nickel targets

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THE DRILL SERGEANT: Mining Projects Group (ASX: MPJ) has announced results of a review of historic drilling collected over almost 50 years, at the company’s Roe Hills nickel project, located 110 kilometres east of Kalgoorlie.

Previous work carried out by one of the company’s directors, Neil Hutchison had already identified several nickel sulphide target zones.

MPJ said further 3 Dimensional (3D) modelling of the data has supported Hutchison’s beliefs the project is fertile for the development of potential undiscovered nickel sulphide mineralisation.

The company has completed modelling of key elemental ratios and using proven analysis of ‘vector’ elements, which are currently used in the search for nickel bearing lava channels.

This has defined southerly plunging trends at the Roe 1, Roe 2 and Talc Lake prospects as well as identifying new untested target areas.

 

Long section (with 10 times vertical exaggeration for ease of
visualisation) showing key ‘vector’ element distribution in the historic
drilling. Source: Company announcement

 

The company considers the 3D modelling of the historic drilling geochemical data has successfully mapped the key components of the prospective geological units at Roe 1 and Talc Lake, which it says correlates well with earlier geological logging and interpretations.

MPJ said this also supports the data to be of good quality and suitable for this type of work.

The company indicated that the 3D modelling had been able to define what was not apparent prior to using modern geochemical and 3D modelling techniques.

The modern techniques have enabled MPJ to define the plunge direction, fertility for sulphide deposition, and the definition of ‘blind’ target zones as shown.

“This is an exciting time for the company as 50 years of shallow drilling has provided the foundations for a potential new nickel discovery at the company’s flagship project, Roe Hills,” Mining Projects Group managing director Joshua Wellisch said in the company’s announcement to the Australian Securities Exchange.

“For the first time we have applied modern techniques to the project to define ‘blind’ drill ready targets, below and down plunge from previously drilled nickel sulphide intersections.”

Website: www.miningprojectsgroup.com.au

Phoenix Gold awards mining contracts

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THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has awarded a number of key mining contracts as part of the staged development plan for the Kintore West open cut, part of the Castle Hill Stage 2 project area near Kalgoorlie in Western Australia.

The company has received all statutory approvals and has commenced mining equipment mobilisation in readiness for mining to begin in the September Quarter.

“Development of Kintore West is a significant milestone for Phoenix and will be the first in a series of mines under the staged development plan,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“We received over 20 proposals for the mining contract and over 10 for the haulage contract demonstrating a very competitive tender process in what is an improving cost environment.

“We look forward to working with our contracting partners who are committed to utilising a local workforce and service providers given we are only 30 minutes’ drive from the City of Kalgoorlie-Boulder.

“We are now focussed on transitioning the business from exploration to producer, continuing to work with Norton Gold Fields on the Castle Hill Stage 1 development and completing the updated heap leaching Feasibility Study for the Castle Hill area.”

 

Castle Hill project area and Kintore West pit location. Source: Company announcement

 

As part of the Castle Hill Stage 2 project area, Kintore West is to be the company’s first mine in an anticipated series of smaller scale mines to be developed under the staged development plan.

The mining contract was awarded to Alliance Contracting, a mining contractor operating locally in the Goldfields region.

Mobilisation of the mining fleet to site has commenced with site establishment expected to be complete in early August.

The haulage contract was awarded to another locally-based business, MLG Oz, which has operated in the region for over 13 years.

Ore will be transported on existing roads to the Greenfields Mill, 27 kilometres to the south using quad road trains with 100 tonne payload.

Phoenix said all Mining Proposals submitted to the Department of Mines and Petroleum WA (DMP) Operations, Environment Division and its Project Management Plan submitted to the DMP Resources Safety Division have been approved for project commencement.

Email: info@phoenixgold.com.au

Website: www.phoenixgold.com.au

Primary Gold encounters further high-grades at Toms Gully

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THE DRILL SERGEANT: Primary Gold (ASX: PGO) has received assay results from the first nine holes to be drilled of an ongoing program at the company’s 100 per cent-owned Toms Gully gold project.

The Toms Gully gold project is located approximately 90 kilometres southeast of Darwin in the Northern Territory.

Highlights from the recently received results include:

1.25 metres at 15 grams per tonne gold, including 0.5m at 24.4g/t gold and 0.45m at 14.6g/t gold (all within 4.1m at 5.3g/t gold);

0.45m at 6.1g/t gold; and

1.05m at 7.6g/t gold.

 

Drill intercepts, Toms Gully project. Source: Company announcement

 

The company said it was pleased with the high-grade results, adding it considers them to support its geological and resource models.
 
“The Toms Gully gold mineralisation is showing a reasonable degree of predictability which bodes well for further resource extension work,” Primary Gold managing director Clay Gordon said in the company’s announcement to the Australian Securities Exchange.

Primary Gold explained the gold mineralisation at Toms Gully to be hosted in a shallow dipping, sulphide-rich, quartz reef with grades ranging from 3g/t gold to 30g/t gold and forming distinct high-grade zones.

The company said the high-tenor mineralisation tends to occur within an approximate 350m wide corridor defined by two parallel faults.

Within this corridor, continuity of the reef structure and grade has been demonstrated by mining, drilling and resource estimates over a length of approximately 1.5 kilometres.

The corridor is open down dip and is the target of the current drilling program.

Email: info@primarygold.com.au

Website: www.primarygold.com.au

Canyon encounters further high-grades at Birsok

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THE DRILL SERGEANT: Canyon Resources (ASX: CAY) has received further high-grade assay results from recent aircore and reverse circulation drilling at the company’s Birsok bauxite project in central Cameroon.

Canyon said the assay results demonstrate the Birsok project contains thick, high-grade bauxite intersections from surface.

Highlights of recent drilling include:

BRRC130
6 metres at 54.0 per cent aluminium from surface;

BRRC150
7m at 42.7 per cent aluminium from surface;

BRRC158
9m at 39.8 per cent aluminium from surface;

BRRC166
3m at 55.4 per cent aluminium from surface;

BRRC170
6m at 46.7 per cent aluminium from surface;

BRRC188
4m at 49.1 per cent aluminium from surface; and

BRRC212
4m at 54.7 per cent aluminium from surface.

The latest results are from eight plateaux drilled at the Djombi prospect, plus all of the seven Fedal plateaux, and represent approximately two thirds of the total samples the company has submitted.

 

Drilled plateau, Birsok bauxite project. Source: Company announcement

 

The remaining assays, with samples from the Djombi, Baoua and Beka prospects are in the final stages of processing.

Canyon said it expects these to be returned within the next two weeks.

“The continuing return of high-grade assays from many of the plateau targets we drilled confirms the strong DSO (Direct Shipping Ore) potential of the project,” Canyon Resources managing director Phillip Gallagher said in the company’s announcement to the Australian Securities Exchange.

“All prospects with assay results so far show evidence of bauxite mineralisation, and we are especially encouraged by the results from several plateau in the Djombi area, where intersections of greater than 50 per cent aluminium have been returned, representing the strongest results at the project since Canyon and its JV partner, Altus commenced work at Birsok.

“The consistency and geographical spread of the results increase our confidence that the Birsok project will evolve into a significant DSO project.

“Ongoing mapping and prospecting has continued to define additional lateritic bauxite plateau on the project area to follow up.

“We are already planning for the second phase of infill and extension drilling to commence as soon as possible once the wet season has finished.”

Canyon indicated more work is required before it can determine the extent and distribution of the bauxite, the metallurgy of the different bauxite plateaux, and subsequently which plateaux will be identified as targets to be drilled to resource definition stage.

The company has mapping and sampling of additional plateaux around the Djombi prospect area underway in preparation for a second phase of drilling program to commence following the wet season.

Several targets have now been identified for follow up.

Email: info@canyonresources.com.au

Website: www.canyonresources.com.au

Avalon achieves high grade recoveries at Viscaria

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THE DRILL SERGEANT: Avalon Minerals (ASX: AVI) released results of a review of all metallurgical test work completed to date on the company’s Viscaria copper-iron project in Sweden.

The review, by Ausenco Services, looked at metallurgical results from test program completed on the A Zone (copper mineralisation), B Zone (copper mineralisation) and D Zone (copper-magnetite mineralisation) prospects in 2010 to 2011.

 

Location of metallurgical drill holes in relation to the open pit shells
generated during the Viscaria copper-iron oroject Scoping Study
announced 9 July 2013. For scale, the D Zone open pit is approximately
1.1 kilometres long. Source: Company announcement

 

Avalon explained the he test work activities on the mineralisation zones included:

Comminution (competency and hardness);

Flotation (bulk and cleaner, with and without regrind);

Magnetic separation (Low Intensity Magnetic Separation and Davis Tube); and

Selected size-by-size analytical and mineralogy test work.

Avalon reported that overall, mineralisation from the A Zone, B Zone and D Zone prospects responded well to conventional mineral processing methods.

Flotation test work achieved 94 per cent copper recovery for D Zone at 26 per cent copper grade and 80 per cent copper recovery for A Zone and B Zone at concentrate grade of 23 per cent copper.

Magnetic separation tests on D Zone float tails for magnetite beneficiation produced a concentrate grade of 70 per cent iron with low impurity levels.

Avalon indicated that at this stage, no metallurgical test work has been done on the copper sulphide-magnetite mineralisation from the Discovery Zone prospect.

The company did however, note distinct similarities in mineralogy with D Zone (chalcopyrite the dominant copper sulphide) indicating the Discovery Zone mineralisation may have similar metallurgical characteristics to D Zone for both copper and magnetite products.

“The results of this metallurgical test work demonstrate that we can produce high quality products of copper sulphide concentrate and magnetite concentrate,” Avalon Minerals managing director Malcolm Norris said in the company’s announcement to the Australian Securities Exchange.

“These results are from on-going test work and follow-up testing is planned to optimise and further develop processing strategies.”

Avalon said the Ausenco review has recommended a number of follow-up tests for the next phase of metallurgical studies.

These are expected to be undertaken in 2015, based on samples to be collected during the company’s 2014-15 winter drilling program.

Tests will include comminution, flotation, and magnetic separation.

Avalon anticipates further magnetic separation test work is expected to be carried out to assess the magnetic separation performance for the Discovery Zone mineralisation and for rougher tailings at different primary grind sizes.

Email: info@avalonminerals.com.au

Website: www.avalonminerals.com.au

Renaissance continues Okvau drilling success

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THE DRILL SERGEANT: Renaissance Minerals (ASX: RNS) has received more positive results from the most recent diamond drilling program at the company’s 100 per cent-owned 1.2 million ounce Okvau gold deposit in Cambodia.

The recent drilling was undertaken outside the current resource envelope, where Renaissance has previously defined a zone of high-grade mineralisation.

The drilling also targeted high-grade zones within the existing resource envelope, to test the geological model in areas that lacked previous drilling.

“The results support the company’s geological model of the Okvau deposit and demonstrate the predictability of high-grade shoots,” Renaissance Minerals managing director Justin Tremain said in the company’s announcement to the Australian Securities Exchange.

“The grade of the intercepts on the western margin of Okvau and validity of the geological model indicate potential to enhance the current resource grade of the Okvau deposit.

“Furthermore, drilling outside of the Okvau resource has defined additional shallow mineralisation with excellent grade.”

Renaissance explained drilling had been undertaken north east of the Okvau deposit, outside of the current resource envelope, and also along the western margin of the Okvau deposit.

 

Okvau deposit drill collar location. Source: Company announcement

 

On the western margin of the Okvau deposit three diamond holes were drilled to test this model by targeting predicted high grade zones that had not been properly tested by previous drilling.

Highlights from this drilling include:

DD14OKV240

11 metres at 3.6 grams per tonne gold from 196m;

8m at 10.7g/t gold from 237m;

15m at 2.7g/t gold from 252m; and

15m at 5.7g/t gold from 290m, including 6m at 12.9g/t from 299m.

DD14OKV241

2m at 20.2g/t gold from 34m;

10m at 3g/t gold from 95m;

5m at 4.3g/t gold from 140m; and

20m at 2.4g/t gold from 159m.

Renaissance has worked up a number of exploration targets within close proximity to the Okvau deposit to be ready for drill testing.

The company indicated it plans to commence drill testing these exploration targets in the coming months.

In addition to exploration activities at Okvau, Renaissance said it intends to continue advancing studies on the potential development of the Okvau deposit.

Recent development activities include ongoing metallurgical test work, commencement of environmental and social baseline data collection programs and scoping level capital and processing cost estimation.

Email: admin@renaissanceminerals.com.au

Website: www.renaissanceminerals.com.au