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.”

Monax begins drilling Punt Hill

THE DRILL SERGEANT: Monax Mining has commenced drilling at its flagship Punt Hill copper-gold project located within the Olympic iron-oxide copper-gold (IOCG) province in South Australia.

The company has four holes, totalling 3200 metres, planned to test high-priority gravity targets.

Three of the four holes will be drilled on the Yeltacowie target where the company has interpreted the basement to be much shallower than previous drilling it had carried out on the Punt Hill target.

Monax said geophysical modelling and limited historical drilling has suggested the targets are between 250 metres and 450 metres below the surface on Yeltacowie.

The drilling program is being funded through Monax’s farm-in agreement with Chilean mining company, Antofagasta PLC, through its wholly-owned subsidiary Antofagasta Minerals S.A.

The Punt Hill farm-in agreement is Antofagasta’s first investment in Australia.

Under the agreement, Antofagasta can earn a 51 per cent interest in the Punt Hill project by spending US$4 million over four years.

Once Antofagasta has earned its 51 per cent, Monaxt then has the ability to remain at 49 per cent by co-funding exploration or development costs, or can elect to have its interest diluted.

Antofagasta can earn a further 19 per cent equity in the project should it spend a further US$5 million on exploration and development of the project tenements.

If the decision to development the project is made Antofagasta will pay Monax a success fee of US$10 million.

Antofagasta must spend a minimum of US$1.5 million on the Punt Hill project within the first two years.

“Monax and Antofagasta are extremely pleased to be back exploring the Punt Hill copper-gold project”, Monax Mining managing director Gary Ferris said in the company’s announcement to the Australian Securities Exchange.

“This coincides with a time of exciting new developments within the Olympic IOCG province, particularly the recent confirmation of BHP Billiton’s plan to significantly expand its Olympic Dam operations, OZ Minerals’ drill out of Carrapateena deposit, the recent deal between Rio Tinto and Tasman Resources over the Vulcan prospect and Rex Minerals’ Hillside project.

“The Olympic IOCG province is world class and remains vastly underexplored.”

Monax anticipates the upcoming drilling campaign to take about 50 days to complete with results expected in late 2011 or early 2012.

Emmerson completes Resource estimation

THE DRILL SERGEANT: Emmerson Resources has announced an Indicated and Inferred JORC Resource estimation at its Gecko and Orlando copper/gold deposits located within the Tennant Creek Mineral Field (TCMF) in the Northern Territory.

The new Resource estimation has come in at of 50,800 tonnes of copper and 70,000 ounces of gold.

The company said it aims to expand on the estimation through an aggressive drilling campaign in coming months.

“These initial resource estimates for Gecko and Orlando are a great start which we hope to grow as we step out within the respective mine corridors,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“The existing development and infrastructure at Gecko and Orlando plus 100 per cent ownership of the Warrego mill provides Emmerson with a big head start for a return to production.

“The recent success at Goanna and Monitor indicate great potential for delineating additional resources and adding to the Gecko and Orlando metal inventory.

“This near mine potential has been overlooked by previous explorers and has come from the application of new geological concepts combined with flying the world’s most powerful helicopter EM geophysical survey.”

Emmerson recently announced the discovery of the Goanna mineralisation which yielded intersections including:

–    21 metres at 2.63 per cent copper from 297metres, including 7metres at 4.96 per cent copper from 299 metres.

This round of drilling also intersected:

–    2m at 4.9 per cent copper from 289m.

Emmerson said the ore it encountered at Goanna featured high grade bismuth, which it suggested is historically a strong indicator for the nearby presence of gold.

The new Goanna discovery is situated within the “Gecko Structural Corridor” and follows recent encouraging drilling results and discovery at Monitor where the company achieved high-grade copper intercepts of:

–    27m at 1.75 per cent copper, including 6m at 2.67 per cent copper and 1812 parts per million bismuth; and

–    6m at 3.53 per cent copper occurring approximately 200m below the surface (297m down the drill hole).

Emmerson’s recently-completed independent JORC compliant resource statement has estimated Indicated and Inferred Mineral Resources for both Gecko and Orlando of 2,460,000 tonnes of ore grading 2.1per cent copper or five grams per tonne gold equivalent resulting in 50,800 tonnes of copper metal or 390,000 ounces gold equivalent.

“The Goanna and Monitor discoveries have important implications, not only for the near mine exploration around Gecko and Orlando but also for greenfields exploration within the remainder of the some 3,300 square kilometre Emmerson tenements,” Bills continued.

“Particularly as the style and signature of these discoveries is very different to the historic ironstone hosted deposits.

“Thus HeliTEM continues to provide some new insights into the TCMF and has the potential to unlock a new generation of sulphide rich deposits within our project area.”

Goldminex sorts PNG drill targets

THE DRILL SERGEANT: Recent trenching work carried out by Goldminex Resources at its Unebu prospect in Papua New Guinea has produced encouraging rock chip copper and gold assays, the company said is typical of porphyry copper-gold deposits.

Unebu is one of the company’s eight key prospects located within areas totalling 11 square kilometres that Goldminex considers to demonstrate copper and gold anomalous soil sample geochemistry, at the Liamu project in the Owen Stanley Ranges region of PNG.

The company is currently undertaking a detailed exploration program in order to further assess the tenor of the porphyry copper-gold mineralisation and define drill targets.

Highlights from the trenching activity include:

–    55 metres at 0.56 grams per tonne gold, including 28 metres at 0.92 grams per tonne gold (open);

–    47m at 0.35 per cent copper including 28m at 0.47 per cent copper (open);

–    25m at 0.53g/t gold and 0.26 per cent copper (open); and

–    27m at 0.33g/t gold and 0.19 per cent copper (open).

The current trench work is testing the western edge of a 650m by 250m area hosting potassic alteration and mineralisation at the Unebu prospect.

Goldminex has a 4,000m diamond drilling program ready to commence in early November that will cover Unebu as well as three other key prospects.

“We are extremely pleased with the results that we have received to date from Unebu and early indications are consistent with this emerging prospect potentially hosting a substantial porphyry copper-gold deposit,” Goldminex Resources chief executive officer Sandy Moyle said in the company’s announcement to the Australian Securities Exchange.

“We are currently conducting further exploration activities at Liamu to gain a better understanding of the nature of this large system and the extent of the initial encouraging results.
“Our knowledge of Unebu and three other key targets within Liamu will be further enhanced through undertaking a 4,000 metre diamond drilling program, scheduled for early November 2011.”

Work carried out by Goldmiex to date at Unebu has identified the target 650m x 250m area hosting extensive zones of rock chip samples containing greater than 0.1g/t gold and/or greater than 0.1 per cent copper.

The company said the assay results it has received so far suggest the Unebu prospect is a porphyry system with a 2:1 gold to copper ratio with the copper-gold mineralisation having a strong association with molybdenum.

Breakaway drills Sandy Creek

THE DRILL SERGEANT: Follow-up drilling conducted by Breakaway Resources at the company’s Sandy Creek copper-gold prospect in North Queensland has returned encouraging copper-gold intersections.

The company said it considered the results confirm the continuity of the mineralisation and highlight potential for extensions both along strike and down-dip.

Breakaway has received assay results for the first four Reverse Circulation (RC) holes drilled as part of the current 22-hole (3,700m) RC and diamond drilling program.

Notable results so far include:

–    3 metres at 3.68 per cent copper, 0.57grams per tonne gold from 47 metres;

–    6m at 1.21 per cent copper, 0.60g/t gold from 114m, including 2m at 2.46 per cent copper, 0.63g/t gold from 118m; and

–    7m at 1.06 per cent copper, 0.33g/t gold from 53m, including 2m at 1.75 per cent copper, 0.55g/t gold from 58m.

The company is confident these results provide evidence of a new copper-gold system at the Sandy Creek prospect, which lies within its 100 per cent-owned Eloise exploration project, located 70 kilometres south-east of Cloncurry.

Breakaway has completed 16 RC holes as part of the current program.

In addition to the intercepts already mentioned, the company said nine of the remaining twelve holes also intersected zones of shear-hosted quartz veining, silica-carbonate alteration and disseminated copper sulphides.

These zones have ranged in down-hole width from 2m to 54m.

Six of these intersections contain internal zones of massive and / or semi – massive copper sulphide mineralisation:

–    4m of semi-massive sulphides from 115m;

–    2m of semi-massive sulphides from 67m;

–    2m of semi-massive sulphides from 44m;

–    1m of massive sulphide from 65m;

–    1m of massive sulphide from 37m; and

–    2m of semi-massive sulphides from 37m, 1m of massive sulphide from 62m, 4m of semi-massive sulphides from 70m, and 1m of semi-massive sulphide from 80m.

“Not only do these results confirm the prospect’s internal continuity of mineralisation over 600 metres strike length, but they also highlight the strong potential for extensions both along strike and down-dip,” Breakaway Resources managing director David Hutton said in the company’s announcement to the Australian Securities Exchange.

“Given the prospect’s close proximity to the Eloise copper mine and the ongoing drilling, we believe that there is real opportunity to quickly generate a potentially economic resource at Sandy Creek.”

Tandarra tingles Navarre nerves

THE DRILL SERGEANT: Stawell‐based Victorian gold exploration company, Navarre Minerals has struck a further high‐grade gold intercept from air‐core drilling at its Tandarra prospect, located 40 kilometres north of Bendigo.

The company said the AC hole intersected a peak assay of:

–    1 metre at 26.2 grams per tonne gold within a 12 metre down‐hole interval assaying between 0.3 grams per tonne gold and 2.8 grams per tonne gold.

The result was determined by duplicate sampling from a depth of 107m on a quartz structure on the Macnaughtan line.

The Macnaughtan line is one of three parallel quartz reefs Navarre has confirmed through drilling at Tandarra.

The company said its 2011 drilling program had now confirmed high‐grade gold mineralisation on the Macnaughtan and adjacent Tomorrow lines, which the company announced in June, had returned 10m at 34.4 grams per tonne gold from 37m below surface.

The latest hole was one of 18 drilled at Tandarra in a program totalling 1,542 metres that the company conducted to confirm potential mineralised quartz reef targets.

Of the 18 holes drilled, 15 intercepted quartz reef targets, of which seven returned gold intercepts.

“The company is greatly encouraged that the drilling continues to prove up the validity of the geophysical methods of detecting these shallow quartz reef structures and by the continued presence of high‐grade gold,” Navarre Minerals managing director Geoff McDermott said in an announcement to the Australian Securities Exchange.

The company said it preparing to commence a $4.2 million six month intensive drilling and geophysics program.

It has already begun a 110 line kilometre geophysics program to map the Tandarra prospect with the aim of detecting additional shallow quartz structures and to extend the known strike of quartz reefs over an area measuring 9km by 12km referred to as the Tandarra basement dome.

“We will now undertake a program of up to 50,000 metres of drilling on the geophysical targets,” McDermott continued.

“This will comprise a combination of air‐core (for confirming the quartz targets) and reverse circulation and deeper diamond drilling (for gold grade evaluation).

“This program is designed to provide enough information from which to estimate a mineral resource in the second half of 2012.

“This is a major exploration program we are undertaking.

“Our aim is to identify the potential of these relatively shallow quartz structures and also to assess the potential for secondary gold mineralisation deposited in gravels as a result of erosion of other quartz reefs over millions of years.

“We look forward to our accelerated exploration effort to delineate gold at Tandarra.”