Genesis commences Argentine drilling

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THE DRILL SERGEANT: Genesis Minerals (ASX: GMD) has commenced drilling at the company’s Las Opeñas precious and base-metal epithermal project located in the pre-cordillera of San Juan Province, Argentina.

The 2,400 metre Phase 2 drill program will test the main zone of extensive surface gold and base metal mineralisation, coincident with a breccia system and Induced Polarisation features.

 

Source: Company announcement

 

The company said it expects drilling to be completed in the first half of July with first results anticipated in late July.

Early in 2014 Genesis renegotiated the Las Opeñas agreement with Teck Argentina Ltd.

Genesis will complete a minimum of 2,400m of drilling at Las Opeñas by September 30, 2014.

During this period Genesis will retain its 100 per cent interest in the project while Teck will retain its right to earn-back in to the project.

Email: info@genesisminerals.com.au

Website: www.genesisminerals.com.au

Sovereign Metals produces excellent metallurgical results at Dedza

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THE DRILL SERGEANT: Sovereign Metals (ASX: SVM) has reported results from an initial scoping level metallurgical program carried out on soft saprolite samples from the Dedza flake graphite prospect within the company’s 100 per cent-owned Central Malawi graphite project.

The company said the program had produced high-grade flake graphite, with a significant proportion of the concentrate mass reporting to the higher value Extra Large and Large Flake categories.

Highlights of the program include:

Favourable graphite flake distribution with a total of almost 48 per cent of the final concentrate reporting to the Extra Large (Jumbo) and Large Flake categories;

17.3 per cent of concentrate is +48 mesh (Extra Large Flake) with a purity of 96.5 per cent carbon; and

A further 30.5 per cent of concentrate is +80 mesh (Large Flake) with a purity of 95.9 per cent carbon.

Sovereign Metals made note that the saprolite material required no primary grind and that graphite was easily liberated by simple slurrying and scrubbing before the rougher flotation stage.

The company considers the results indicate the Saprolite mineralisation at Dedza may provide the basis for a low-cost flake graphite operation, with ‘free dig’ mineralised material that requires no primary crush and grind.

 

Location of Dedza metallurgical test-work sample. Source: Company announcement

 

“We are very pleased with the results of the initial metallurgical test-work program,” Sovereign Metals managing director Matt Syme said in the company’s announcement to the Australian Securities Exchange.

“They demonstrate the potential for our second project at Dedza to have substantial opex and capex savings when compared to a hard rock operation.

“Additionally, Dedza is shown to contain an excellent proportion of high value Extra Large and Large Flake graphite, which is very encouraging.”

Email: info@sovereignmetals.com.au

Website: www.sovereignmetals.com.au

MOD identifies high-grade copper and silver in Botswana

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THE DRILL SERGEANT: MOD Resources (ASX: MOD) has carried out a review of previous drilling conducted at the company’s 100 per cent-owned Corner K deposit in Botswana, which it says has identified two long zones over 500 metres of high grade copper sulphide and silver mineralisation at shallow depth.

The company explained the high grade zones (the ‘West Zone’ and ‘East Zone’) were defined by applying a 1.5 per cent copper cut-off to numerous diamond drill hole intersections.

MOD said the new interpretation suggests potential exists for the two zones to be joined below the shallower ‘Central Zone’.

 

Preliminary interpretation of inclined long section of 2.5km long Mahumo
deposit. Shows targets for proposed drilling. Source: Company
announcement

 

The 2.5 kilometre long deposit has been named the Mahumo deposit (meaning ‘riches’ in Botswana) and occurs at the western end of the 4.5km long Corner K mineral resource of approximately 9.5 million tonnes at 1.14 per cent copper equivalent the company announced in September 2012.

Highlights of previous drilling results from the West and East Zones of the Mahumo deposit include:

Copper grades commonly range between 1.5 per cent – 2.5 per cent copper, peaking at 12.9 per cent copper;

Silver grades commonly range between 45 grams per tonne – 70g/t silver, peaking at 208g/t silver;

Silver grades are three to four times the average grade for silver in other resources in region;

High grades associated with hydrothermal quartz/carbonate veining (2-4m wide intersections);

Copper mineralisation occurs as chalcocite and bornite sulphides, rather than copper oxides; and

Mineralisation appears to start immediately below 5-6m of surface Kalahari sand cover.

“The discovery in February of the previously unknown Molelo Intrusion in the middle of the belt signalled a change in MOD geologists’ understanding about the potential of this large copper province,” MOD Resources managing director Julian Hanna said in the company’s announcement to the Australian Securities Exchange.

The interpreted magnetic core of the intrusion is now high on the list of drilling targets.

“Then in June, recognition of the significance of the high grade copper and silver intersections in the
2.5 kilometre long Mahumo deposit also elevated this to a high priority for drilling.

“In addition, our geologists are very keen to commence work on the Marthie prospect where it is interpreted that up to 25 kilometres of the copper prospective contact may have been folded into a structurally favourable site.”

Email: administrator@modresources.com.au

Website: www.modresources.com.au

GBM kicks off Bronzewing Bore drilling

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THE DRILL SERGEANT: GBM Resources (ASX: GBZ) has commenced drilling on the first of a number of targets to be tested during the company’s current field season at the Bronzewing Bore IOCG prospect of the Bungalien project near Cloncurry in Queensland.

The targets are part of tenements subject to a Farm-in Joint Venture with Japanese companies, Pan Pacific Copper and Mitsui & Co.

GBM recently received approval of $2.2 million to conduct further exploration of IOCG style targets on four of the company’s projects in the Cloncurry area during the remainder of 2014 and early 2015.

This is the fifth year of a six year Farm-in under which PPC and Mitsui, through their Australian subsidiary Cloncurry Exploration & Development (CED), can earn 51 per cent of the projects by expending $15 million on exploration.

 

CED Farm-In tenements in the North West Queensland Mineral Province. Source: Company announcement

 

The company anticipates exploration of these projects will build on the past four years of targeting the discovery of IOCG style deposits in the NW Queensland Mineral Province.

During the 2014 field season, the JV will drill test five key targets, while a number of others will be subject to geophysical and geochemical surveys.

Key targets for drilling include:

FC4SE, where deep penetrating MT geophysics has identified two strong conductivity targets below surfice cover in regional proximity to the Ernest Henry copper gold mine. Recently located drill core from historic drilling intersected copper and gold mineralisation and ‘red-rock’ alteration. Recent exploration by other companies in the area has identified IOCG-style copper mineralisation without the classic strong magnetite association.

FC2W and FC2, both IOCG type targets associated with complex magnetic and gravity features.

Burke Bore, a coincident gravity and magnetic feature obscured beneath the Georgina Basin sediments in the Bungalien project area.

Under the Farm-in agreement PPC and Mitsui may outlay up to $55 million through their Australian registered JV company CED.

Projects subject to this agreement include the Talawanta-Grassy Bore project, Bungalien project and the Mount Margaret West project.

GBM remains as operator of the projects.

Email: info@gbmr.com.au

Website: www.gbmr.com.au

Kibaran extends Mahenge graphite

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THE DRILL SERGEANT: Kibaran Resources (ASX: KNL) has completed a round of resource drilling at the company’s wholly-owned Mahenge graphite project in Tanzania.
 
The drilling consisted of 37 holes for 2,215 metres at the Epanko deposit, all of which intersected graphite mineralisation in the Western Zone.

Kibaran said the campaign has doubled the strike length of graphite mineralisation at the Epanko deposit to over one kilometre.

 

Location plan of the Epanko deposit. Source: Company announcement

 

The company said the widths of mineralisation it encountered at both the Eastern and Western zones compare similarly to previous drilling programs with graphite mineralisation remaining open in all directions.

Mineral resource estimation work is now underway, which Kibaran indicated is expected to be completed mid-July.

The drill program results will be applied to upgrade a portion of the existing JORC Inferred Mineral Resource at Epanko of 14.9 million tonnes at 10.5 per cent TGC (total graphitic carbon) for 1,560,000 tonnes of contained graphite.

Email: info@kibaranresources.com

Website: www.kibaranresources.com.au

Latin intersects high-grade copper at Ilo Norte

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THE DRILL SERGEANT: Latin Resources (ASX: LRS) is happy with the progress being made by earn-in operator Compañia Minera Zahena S.A.C. as it advances drilling at the company’s Ilo Norte project in Peru.

Zahena has completed all twelve holes originally permitted by Latin and is now compiling and interpreting results before proceeding with permitting for further drilling.

Assay results for the first ten holes have been received with the best intersections including:

IN-019
30 metres at 0.93 per cent copper and 0.12 grams per tonne gold from 282m down hole, including 6m at 3.1 per cent copper and 0.45g/t gold from 300m – associated with vein-hosting structures.

IN-016
18m at 0.66 per cent copper and 0.09g/t gold from 381m down hole, including 3m at 2.2 per cent copper and 0.19g/t gold from 387m down hole –this hole was also associated with a structural zone.

Latin explained the first 12 drill holes were completed to test the overall IP anomaly signature on relatively broad spacing of roughly 400m by 400m.

Follow-up work will involve data interpretation and additional structural mapping to develop new structural drill targets which could exist within the existing drill pattern and further to the north-east where grades are improving and large structures have been interpreted.

 

View of southern coast of Peru around Ilo with Latin’s concessions
outlined. Ilo Norte is 5km to the sealed coastal highway, 10km to a
major copper smelter and 25km to the port city of Ilo. Source: Company
announcement

 

“We are extremely pleased that drilling has advanced so quickly and that serious effort is being expended to properly test this exciting target,” Latin Resources managing director Chris Gale said in the company’s announcement to the Australian Securities Exchange.

“Zahena have all but completed their first 18 months of drilling commitments in only four months, and we look forward to their continued investment in the project.

“These initial high grade hits within such extensive and intense IOCG style alteration give us enormous scope for discovering significant quantities of higher grade mineralisation in more structurally targeted drilling in the future.”

The company said that at least three square kilometres of intense alteration (Magnetite-Pyrite-Albite-Kspar) has now been defined between Latin’s drilling in 2011 and the current phase of drilling.

Latin considers all these results indicate the potential to discover high grade mineralisation within the overall alteration envelope.

Email: info@latinresources.com.au

Website: www.latinresources.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.

Sandfire puts spring in Springfield exploration activities

Talisman Mining (ASX: TLM) announced that Sandfire Resources (ASX: SFR) has commenced the first phase of ground-based exploration activities at the Springfield project as part of a $15 million exploration farm-in Joint Venture covering Talisman’s interests in the Springfield, Halloween and Halloween West JV projects.

Sandfire has already identified a combined 65 kilometres strike length of prospective Volcanogenic Massive Sulphide (VMS) horizon across the combined Talisman and Sandfire tenements, providing an expanded search horizon for potential new VMS copper-gold deposits.

At least six Reverse Circulation drill-holes previously drilled by Talisman at the Homer prospect have been identified by Sandfire for the application of high energy DHEM to test for the presence of conductors that may represent accumulations of massive sulphides.

In addition, Sandfire is undertaking a high-powered Fixed-loop Electro Magnetic survey (FLEM) at the Homer prospect, covering approximately 1.6km of the prospective DeGrussa host horizon, to better test for conductors beyond the extent of previous ground electromagnetic surveys.


Diamond drilling commenced at Forsayth project

Altius Mining (ASX: AYM) has commenced a 5,000 metre diamond drilling program at the company’s 100 per cent-owned Forsayth project in North Queensland.

This drilling program is designed to test a number of drill targets that have resulted from an extensive geological survey conducted by Shandong Province Geology and Mineral Exploration and
Development Bureau.

This is the first stage of a drill program that is designed to test previously un-drilled targets and also to drill the known Ropewalk mineralisation in order to create a JORC compliant resource for this area.


RC drilling commences in the Pig & Whistle

Octagonal Resources (ASX: ORS) has commenced RC drilling in the Pig & Whistle area of the Pearl Croydon deposit in Central Victoria.

The Pearl Croydon deposit is located 40 kilometres southwest of the company’s porcupine Flat gold processing facility at Maldon and contains an Inferred Resource of 570,000 tonnes at 2.9 grams per tonne gold for 53,000 ounces of gold.

The drilling program will consist of 14 holes and has been designed to test for near surface gold in an area that is already approved for open pit mining and where previous drilling has intersected 10m at 5.5g/t gold from 30m, and 3m at 5.9g/t gold from 74m.


Drilling to commence at Plumridge nickel project

Segue Resources (ASX: SEG) has completed a review of existing aeromagnetic and gravity data combined with recently released GSWA 2014/6 multi-disciplinary research report over the company’s recently acquired tenement (E39/1731), located in the Fraser Range region of Western Australia.

Segue said the work has identified a large anomalous magnetic feature which warrants immediate on-ground exploration.

Segue believes the feature (E21) has all of the hallmarks of a very large mafic/ultramafic intrusive body, similar to the Eye, which hosts the Nova-Bollinger nickel deposit – but several orders of magnitude larger.

The company said combined AirCore drilling and ground EM will increase its geological knowledge of E21 and identify target areas for more focussed and intense exploration.


Drilling commences at Cinovec project

European Metals Holdings (ASX: EMH) has commenced drilling at the company’s Cinovec project in Czech Republic.

The program will comprise three core holes to a maximum depth of 380m, targeting the main Cinovec South ore zone to provide samples for metallurgical testing.

Recovered core will then be used to confirm the previously recorded metals recoveries and high concentrate grades that have been documented by the previous operations.

The Cinovec project hosts a JORC 2012-compliant Inferred Resource of 28.1 million tonnes at 0.37 per cent tin and 0.04 per cent tungsten for total contained tin of 103,970 tonnes based on 83,000m of drilling and 21.5 kilometres of underground drives.

Additionally there is an Inferred Resource for lithium of 36.8Mt at 0.8 per cent lithium.

Parts of the Cinovec deposit were mined historically, however, EMH said it remains one of the largest hard rock tin projects in the world.

Fertoz locates high-grade phosphate at Fernie project

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THE DRILL SERGEANT: Fertoz Limited (ASX: ) has located historical phosphate mine shafts, associated stockpiles and a road base pit containing phosphate on the Marten tenements of the company’s Fernie project in British Columbia, Canada.

Fertoz explained it was aware of the existence of these from historical reports when it acquired the property, but no exact coordinates were available prior to field work.

Assays of phosphate stockpile samples using a portable Olympus X-Ray Flourescence (XRF) device were between 24 percent and 27 per cent phosphorous.

Fertoz conducted aanalysis over a grid traverse in the property with the XRF to locate the phosphorite zone, which it located within a road base pit located 1,200m from the shafts.

The pit averaged 20.7 per cent phosphorous on the surface of the phosphorate zone using the portable XRF, while rock float close to the pit exceeded 30 per cent phosphorous.

The pit has good road access and is suitable for easy trenching.

Fertoz said it is now finalising the exploration permit in preparation for drilling and trenching later this year at Fernie.

This will be the first work carried out on the property using modern methods.

“We have located the phosphate horizon which enables us to carry out a small targeted drill program and collect a bulk sample in 2014 for further testing,” Fertoz managing director Les Szonyi said in the company’s announcement to the Australian Securities Exchange.

“It is the same approach we have applied successfully at Wapiti East.

“Marten is particularly attractive because of the excellent road and rail access.”

Email: office@fertoz.com

Website: www.fertoz.com

Sherwin hits early drilling Success at Mt Scott

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THE DRILL SERGEANT: Sherwin Iron (ASX: SHD) has been encouraged by early results from the completion of initial reconnaissance diamond drilling at the Mt Scott prospect within the company’s Roper River iron ore project in the Northern Territory.

Mt Scott is located approximately 20 kilometres southeast of Sherwin’s Exploration Bulk Sample Pit and proposed Direct Shipping Ore (DSO) mining operation at Deposit C.

The reconnaissance drilling indicates DSO grade iron ore present in the same Lower Ironstone Unit (within Sherwin Formation) as Deposit C.

A total of 11 wide spaced HQ diamond core holes drilled over a 3km strike length covering historic BHP Deposits I and K, confirm DSO grades within every intersection.

 

Source: Company announcement

 

Sherwin had reported high grade rock chip sampling results within this drilled area and at several other locations at Mt Scott in 2011.

Better intersections from the recent drilling include:

(RR00593D)
1 metre at 63 per cent iron from 4m;

(RR00594D)
1.25m at 58.7 per cent iron from 3.25m;

(RR00602D)
1m at 60 per cent iron from 12.25m;

(RR00599D)
1.25m at 58.1 per cent iron from 28.5m;

(RR00598D)
0.75m at 65.5 per cent iron from 15m; and

(RR00596D)
2.75m at 55.7 per cent iron from 2.75m.

“These results are very encouraging as DSO grades are present within ironstone beds of similar character (thickness and grade) as identified in early drilling at Deposit C,” Sherwin Iron said in its ASX announcement.

“Particularly encouraging is the relatively shallow depth of DSO grades intersected within near flat-lying stratigraphy.

“An extensive program of RC drilling is now warranted to follow up current results to assess potential for a DSO resource that could lead to a future mining operation.”

Email: corporate@sherwiniron.com.au

Website: www.sherwiniron.com.au

Laconia intersects high-grade copper at Espanola 1 prospect

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THE DRILL SERGEANT: Laconia Resources (ASX: LCR) has received results from underground channel samples collected at the Española 1 prospect, within the company’s Kimsa Orcco project in Peru, which it claims have confirmed an historic high-grade copper-gold-silver intersection.

Laconia explained the Española 1 vein system was originally considered as a gold and silver prospect, but was elevated in priority after identification of an historic adit channel sampling intersection.
 
Laconia carried out a program of repeat underground channel sampling at the Kimsa Orcco project during April that confirmed the intersection, with 25 samples collected over 14 of the 16 original channel sample locations.

Laconia’s sampling of the high-grade copper-gold-silver zone at Española 1 Adit returning a composited intersection of:

21.5 metres at 2.55 per cent copper, 2.26 grams per tonne gold Au and 50.97g/t silver, including 12.3m at 3.72 per cent copper, 3.22g/t gold and 69.74g/t silver from the adit entrance.

New sample results from Española 1 Adit include:

1m at 9.6 per cent copper, 4.3g/t gold, and 112g/t silver;

1.96m at 6.75 per cent copper, 3.38g/t gold, and 95g/t silver;

1.26m at 3.4 per cent copper, 6.02g/t gold, and 116g/t silver; and

0.8m at 6.4 per cent copper, 12.99g/t gold, and 222g/t silver.

 

Plan View of the high-grade copper intersections in adit channel
sampling at the Española 1 Adit (4805 level). The historic channel
sampling is notated above and below the channel sample lines and the new
channel samples completed by Laconia are shown to the right or left of
the adit in the text balloons. Source: Company announcement

 

“The company is pleased to have transitioned to a phase of new geological work at the Kimsa Orcco project,” Laconia Resources managing director Ian Stuart said in the company’s announcement to the Australian Securities Exchange.

“Laconia looks forward to expanding our exploration program and further developing what is clearly a large, highly mineralised system.

“The presence of high-grade copper, in conjunction with the gold and silver epithermal veins already identified, adds significantly to the potential of Laconia’s project interests.”

Email: info@laconia.com.au

Website: www.laconia.com.au