Apollo Minerals kicks off IP Survey

THE DRILL SERGEANT: Apollo Minerals (ASX: AON) let the market know High Power Exploration Inc. (HPX) has commenced exploration in the company’s new IOCG frontier in the north-western Gawler Craton in South Australia.

Earlier this year Apollo and HPX entered into a strategic alliance and joint venture to explore a tenement package currently 100 per cent-owned by Apollo.

The company said the first phase of exploration involves a high-powered Induced Polarisation (IP) survey over large scale gravity and magnetic targets at the Bundi North (northern half of the Bundi prospect) and Wirrida Intrusive Complex prospects.

 

IP survey plan of the Bundi and Wirrida prospects showing extents of the survey area. Source: Company announcement

 

The survey is using HPX’s proprietary ‘Typhoon’ technology and is designed to test for base metals including copper and gold at Bundi North and Wirrida and is one of the largest ever undertaken in South Australia.

Apollo has conducted pervious exploration in the area, which identified widespread copper anomalism directly above large, high-density targets variously associated with magnetic and non-magnetic zones.

These have been interpreted to extend from a depth of approximately 150 metres to more than 1,000 metres below surface.

Apollo explained HPX’s ‘Typhoon’ technology is able to penetrate to great depths with high accuracy and considers it to be ideal for exploring the geological environment at Bundi North and Wirrida.

The IP survey is expected to be completed by the end of May with results available in June.

Subject to final review, a maiden drill program to drill test identified targets is anticipated to follow.

Apollo’s strategic Alliance with HPX relates specifically to exploration licences, EL4960, EL5073, EL5074, and EL5348, known collectively as the Commonwealth Hill Farm-in Joint Venture.

HPX may earn up to 80 per cent via its exploration spend.

The JV does not affect Apollo’s existing joint venture arrangements; the adjacent Eaglehawk JV and Aurora-Tank JVs.

Email: info@apollominerals.com.au

Website: www.apollominerals.com.au

Atlas Iron doubles Corunna Downs estimate

THE DRILL SERGEANT: Atlas Iron (ASX: AGO) has doubled the JORC Code-compliant resource estimate at the company’s Corunna Downs project in Western Australia.

The resource currently stands at 51 million tonnes at 57.3 per cent iron, which the company said is on track to meet its exploration target of 100 to 150 million tonnes at 55 to 58 per cent iron by June 2015.

The increase is due to maiden Inferred Resources for the Runway, Shark Gully and Razorback deposits, which have added a combined total of 26 million tonnes at 57.5 per cent iron.

 

Corunna Downs and McPhee Creek projects showing resource
locations, prospective stratigraphy, surface iron enrichment, Atlas
tenements and proposed infrastructure. Source: Company announcement

Atlas indicated it intends drilling its tenure from Corunna Downs to McPhee Creek, including Corunna South and Hales Grave later this year as it believes there is strong potential to grow the combined Corunna-McPhee Creek resource base, further underpinning its strategy to develop a blending hub in this region.

At Corunna Downs, each of the Runway, Shark Gully and Razorback resources remains open along strike and extensional RC drilling is now being completed to define the ultimate dimensions and size of each deposit.

Diamond drilling is underway on the Runway deposit, to be followed immediately by Shark Gully and infill RC programs have been planned for early 2015 to upgrade confidence in these resources.

Of the total Direct Shipping Ore Mineral Resource at Corunna Downs, 20 million tonnes (or 40 per cent), is in the Indicated category.

“In less than a year, the Corunna Downs project has moved from a new discovery to substantial Indicated and Inferred Mineral Resources of high quality,” Atlas Iron managing director Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“This result demonstrates that the North Pilbara remains a favourable location for iron ore exploration and Atlas’ continued exploration success here is building a broad pipeline of potential opportunities for the company to maintain and grow its Reserve base.”

Email: atlas@atlasiron.com.au

Website: www.atlasiron.com.au

Hi Ho, Hi Ho, it’s off to work we go

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.

RC drilling commenced on the Birsok bauxite project, Cameroon

Canyon Resources (ASX: CAY) has commenced RC drilling on the company’s Birsok bauxite project in Cameroon.

The drilling is planned to test the width and extent of bauxite mineralisation across priority target areas and will initially target the highest priority prospects of Djombi, Fedal and Baoua.

The drilling has been designed based on results from extensive rock chip sampling and geological mapping completed by Canyon and its Joint Venture partner.

Ongoing mapping across the project continues to identify further mineralised zones and target areas.

“We are very pleased to have commenced the first ever drilling program on the Birsok project so soon after announcing the transaction and following the recent announcement of outstanding high-grade rock chip assay results,” Canyon Resources managing director Phillip Gallagher said.

“The extensive rock chip and mapping program that has been completed prior to the commencement of this inaugural drilling program has confirmed the presence of high-grade gibbsite bauxite across a large proportion of the project area, and identified high priority areas for drilling.

“Based on results to date, we are confident of positive results from this program.”

Drilling underway at Blueys

Core Exploration (ASX: CXO) has commenced its first reverse circulation (RC) drill program in the Northern Territory at the company’s Blueys project.

The drilling is testing prospective drill targets at both the Blueys and Inkheart prospects within the company’s Albarta project.

Core said the drilling has been designed to confirm the source of anomalous silver in soils and high-grade mineralisation the company has previously identified at surface.

The company said IP geophysical surveys have identified chargeable and structural targets at depth below these surface indicators.

These targets have never been drill tested as the deepest prior drilling was to a depth of 52 metres.

Drilling is expected to take three to four weeks to complete with assay results expected over the next eight weeks.

Drilling commences at Overflow project

TriAusMin Limited (ASX: TRO) has commenced a four hole, 400 metre drill program on the company’s Overflow project, located within the Western Lachlan Fold Belt, of Central News South Wales.

The drill program is to comprise 200 metres of Reverse Circulation (RC) drilling at the Spooky Hill gold prospect and a single 200 metre diamond (DD) hole at the historic Overflow mine.

Work kicks off at Fraser Range East

Mining Projects Group (ASX: MPJ) announced that Newexco has commenced the first stage of a Moving Loop Electro Magnetic (MLEM) Survey at the company’s 100 per cent-owned Fraser Range East project.

The MLEM program has been designed to test for the presence of bedrock conductors which may be associated with nickel mineralisation.

Soil samples will also be taken at all stations to conduct Mobile Metal Ion (MMI) analysis, a form of low detection soil sampling.

This form of sampling analyses the loosely bound ions attached to soil particles and allows for the detection of geochemical signals through cover and transported overburden.

The survey is expected to take approximately a week with analysis and reporting to follow.

Air Core drilling commenced at Spargoville

Tychean Resources (ASX: TYK) has commenced an Air Core drilling program at the Core Farm and Golden Orb East prospects at the company’s wholly-owned Spargoville gold project in the Eastern Goldfields of Western Australia.

The program at the Core Farm prospect is to comprise shallow close spaced Air Core drilling planned to evaluate the size and potential extent of interpreted paleochannel mineralisation Tychean has intersected within previous drilling.

A smaller program of Air Core drilling is planned at Golden Orb East to infill and further evaluate previously identified gold mineralised trends within previous drilling.

The company anticipates all results from this drilling to be received by early June 2014.

Drilling commenced at Mt Eureka project

Cullen Resources (ASX: CUL) has commenced an RC drilling program at the company’s Mt Eureka project in Western Australia.

The drilling has been planned to include follow-up RC drilling of nickel geochemical anomalies at the Doyles nickel prospect.

It will also involve RC drilling to the west of the recently completed RC drill hole MERC 107, and to test a target ultramafic horizon for nickel mineralisation further to the west at the Silverbark North nickel prospect.

Cullen said it anticipates drilling will be completed within two weeks with assays to follow by mid-June.

Northern Star anticipates Pegasus upgrade

THE DRILL SERGEANT: Northern Star Resources (ASX: NST) has wasted little time broadcasting news from the company’s recently-acquired Kundana gold operations near Kalgoorlie.

Recent drilling at Kundana’s Pegasus deposit has returned further high-grade intersections including:

9 metres at 37.8 grams per tonne gold (true width 6.8m);

5.3m at 26.3g/t gold (true width 3.7m);

2.5m at 9g/t gold (true width 1.7m);

2.2m at 12.9g/t gold (true width 1.7m); and

1.2m at 19.5g/t gold (true width 0.9m).

These results follow the intersection of mineralisation up to 500m outside the existing 355,000 ounce resource.

 

Long section view (looking East) of the Pegasus drill results
returned to date. Intersections denoted are uncut and downhole width.
Source: Company announcement

 

Northern Star said the development of Pegasus is underway, with a decline to access the deposit being excavated from the adjacent Rubicon mine.

The East Kundana Joint Venture partners Rand Mining and Tribune Resources have approved their share of the capital expenditure.
 
The company said first Pegasus development ore is anticipated in the December Quarter of 2014.

Fresh drilling results have demonstrated the strong potential to increase reserves at the existing Rubicon-Hornet mine at Kundana.

Resource definition drilling into the 2013 inferred resource beneath the Hornet mine has yielded encouraging results to date, including:

38.4m at 10.5g/t gold (true width 11.1m);

5.7m at 13.8g/t gold (true width 2.3m);

11.4m at 9.7g/t gold (true width 2.7m); and

2.5m at 97.7g/t gold (true width 0.8m).

Northern Star has further extensional drilling planned for the June Quarter from surface.

The company explained targeted regional exploration along the Kundana structural corridor has identified mineralisation 2km north of previous mining activities and 8km north of Pegasus, which it considers to highlight the regional potential for future discoveries.

Reconnaissance Reverse Circulation drilling at the Ambition prospect returned assays of 2m at 6g/t and 2m at 1.8g/t gold in the interpreted K2 position, which Northern Star has interpreted to indicate the structure continues to the north of previous mining activity.

“Pegasus is an outstanding discovery that will generate substantial cashflow at the same time as its resource and reserve inventory continues to grow,” Northern Star Managing Director Bill Beament said in the company’s announcement to the Australian Securities Exchange.

“I am also confident that we will enjoy more exploration success on the K2 structure, both around existing operations and further out, as these early results from the Ambition prospect show.”

Northern Star acquired its interest in Pegasus, Rubicon and Hornet as part of the company’s purchase of Barrick Gold’s 51 per cent stake in the East Kundana Joint Venture.

Email: info@nsrltd.com

Website: www.nsrltd.com

Chesser hits high grades outside Kestanelik Resource area

THE DRILL SERGEANT: Chesser Resources (ASX: CHZ) has received the third batch of results from a sawcut sampling program being carried out at the company’s Kestanelik gold project in north-western Turkey.

The company said the sampling program is being undertaken with the aim to further define the distribution of near surface high-grade gold mineralisation on the property.

The latest results, which are from outside the current resource area include:

8.9 metres at 12.9 grams per tonne gold, including 3.6 metres at 19.6 g/t gold;

3.1m at 9.5g/t gold; and

1.1m at 14.8g/t gold.

The company said the results are from sawcut samples taken from veins within the K4 and Topyurt South zones at the south of the property.

 

Composite results from sawcut sampling on the K4 vein. Source: Company announcement

 

It explained that they have been designed to extend areas of known mineralisation to the south and southwest of the current resource, where recent geological reviews have highlighted strong potential for additional resource growth.

“These results from the K4 and Topyurt South zones show that high gold grades persist at surface well outside the area of the current resource,” Chesser Resources managing director Dr Rick Valenta said in the company’s announcement to the Australian Securities Exchange.

“It is particularly encouraging as the sampling defined new mineralisation at the Topyurt South vein, only discovered in December 2013.”

Chesser is carrying out additional sawcut sampling on other zones on the property including the Topyurt veins as well as progressing a number of work streams supporting the planned development and expansion of the Kestanelik project.

Work is continuing on a JORC Code-compliant resource update as well as mine, process and tailings design as part of the Kestanelik pre-feasibility study, which Chesser said is progressing on time and on budget.

The company said it is on track to submit a project description for the Kestanelik Environmental Impact Assessment to the relevant Turkish Authorities in the June 2014 quarter.

Email: info@chesserresources.com.au

Website: www.chesserresources.com.au

MacPhersons encounters new extensions at Nimbus

THE DRILL SERGEANT: MacPhersons Resources (ASX: MRP) has completed a program of diamond drilling at the company’s 100 per cent-owned Nimbus-Boorara silver-gold-zinc project located east of Kalgoorlie.

According to the company the drilling encountered a number of intersections of silver-zinc rich massive and stringer sulphide, and vein zones.

The Nimbus diamond drilling program was conducted as part of a Bankable Feasibility Study, which is scheduled to be completed mid-2014.

MacPhersons highlighted one hole NBDH034, which it said had intersected at least six zones demonstrating silver-zinc sulphide mineralisation.

 

Deep down plunge intersections of silver-zinc and copper-zinc
sulphide zones intersected between 350m and 850m downhole (HQ core) of
NBDH010 are up to 600m down-plunge of any previous drilling. Source:
Company announcement

 

The company has received preliminary silver assay results on two of these zones and, which it claims has confirmed three new silver lens extensions adjacent to the East Pit cutback.

Just under half of these intervals are still undergoing whole core metallurgical testwork prior to assaying.

Assays received so far include:

NBDH034
18.75 metres at 122 grams per tonne silver from 133.85 metres, including 4 metres at 354g/t silver from 136 metres, and 4.2 metres at 169g/t silver from 147.5 metres; and

2.75m at 137g/t silver from 226.5m, including 1m at 337g/t silver from 227m;

“NBDH034 has intersected several silver-zinc mineralisation extensions which confirms the system remains open at depth and along strike,” MacPhersons Resources managing director Morrie Goodz said in the company’s announcement to the Australian Securities Exchange.

“Preliminary assay results have been received on three of these lenses and have confirmed a new lens and two lens extensions within the current mine model, only 12 metres beneath the East Pit cutback providing further opportunities for near term production once the pit is completed.”

“Assays on the balance of drill hole NBDH034 and final hole NBDH035 will be pending over the next four to six weeks.”

MacPhersons said the upper zone of the above intersections represents two silver lenses (at 136mand 147.5m), of which at least one represents a new lens and one may be a strike extension of previously identified lens AG342.

Depending on how the results from the met samples fall, the company considers this interval may be mined at its full 18.75m width.

This new lens is only 12m below the East Pit cutback and has been interpreted by the company to represent a new underground stoping opportunity once the open pit mining has been completed.

All three lenses (at 136m, 147.5m, and 226.5m) represent new extensions within the current Nimbus mine design and therefore will require only minor development to access and develop.

Email: info@mrpresources.com.au

Website: www.mrpresources.com.au

Hi Ho, Hi Ho, it’s off to work we go

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 commences at Ndongo West

Cardinal Resources (ASX: CDV) has had a Gradient Array Induced Polarisation (GAIP) survey completed over the Ndongo West area of the company’s Ndongo prospect in Ghana.

TTG Geoservices of Ouagadougou, Burkina Faso completed the survey of 21 lines of one kilometre lengths over anomalous gold‐in‐soil values in the Ndongo West area.

“We are very encouraged by the results of the recently completed GAIP survey over the Ndongo West area of the Ndongo prospect,” Cardinal Resources managing director Archie Koimtsidis said.

“Both Chargeability and Resistivity images combined with our airborne survey and soil geochemistry data, confirm a well ‐ defined NE trending contact zone.

“Location planning has been completed so that the zone can be tested with our company-owned combination RC/diamond drill rig.

“This RC drilling plan is designed to confirm the prominent NE trending contact zone delineated by the GAIP survey and to locate mineralisation associated with the anomalous gold‐in‐soil values which were derived from our soil geochemical program.”

Drilling program gets Environmental and Statutory approvals

White Cliff Minerals (ASX: WCN) has received environmental approvals from both the Department of Parks and Wildlife and the Department of Mines and Petroleum to conduct a 1,000 metre to 2,000 metre reverse circulation (RC) drilling program at the Lake Johnston nickel project in Western Australia.

The drilling program will target four high-priority EM conductors within ultramafic units at the Mt Glasse prospect that have associated nickel-copper-platinum-palladium soil anomalies.

White Cliff has secured a $150,000 grant from the Western Australian government to drill the Lake Johnston nickel sulphide targets as part of the Royalties for Regions Exploration Incentive Scheme (EIS) administered by the Department of Mines and Petroleum.

Drilling to commence at Blueys project

Core Exploration (ASX: CXO) has received required approvals for its first reverse circulation (RC) drill program at the Blueys project in the Northern Territory.

Core’s recent exploration has identified highly prospective drill targets at both the Blueys and Inkheart prospects within the company’s Albarta project.

Core believes these new drill targets in combination with anomalous silver in soil and high-grade rock chip results are a strong indicator of mineralisation at depth.

With drill approvals in place and drill contract secured Core has commenced preparation on-site and expects drilling to commence next week.

Commencement of Phase 2 drilling program at SA targets

WPG Resources (ASX: WPG) has commenced a program of aircore drilling on its tenements in the Northern Gawler Craton region near Coober Pedy in South Australia.

This is the first stage of a drilling campaign on priority targets in the company’s Phase 2 exploration program on the tenements.

During Phase 1 of its exploration program completed in 2013, WPG defined 14 areas for follow-up exploration within the Muckanippie (EL 5154), Robins Rise (EL 4525) and Lake Woorong (EL 4907) tenements from an in-depth review of past exploration.

The drilling has commenced on the Nardoo South prospect within the Muckanippie tenement where previous shallow RAB drilling returned nickel intersections in several holes up to a maximum of 0.14 per cent nickel.

Adelaide Resources confirms one big copper system

THE DRILL SERGEANT: Adelaide Resources (ASX: ADN) claims to have confirmed its high-grade Yorke Peninsula copper discoveries to be part of one continuous system.

The revelation has come from Adelaide Resources’ development of a new model for copper mineralisation at the Alford West prospect, part of the company’s Moonta copper gold project, and its satellite target zones including Blue Tongue, to a depth of 130 metres below surface.

 

Alford West prospect drillhole locations and copper geochemistry. Source: Company announcement

“The model has been constructed using all available information from drilling, and incorporates the exploration team’s understanding of the behaviour of metal in the weathered zone and the relationship of copper and gold mineralisation to other metals,” Adelaide Resources said in its ASX announcement.

The company described the key features of the new Mineralisation Model to include interpretation of the Alford West, Blue Tongue and Blue Tongue West targets to be part of a single, large iron oxide copper-gold style mineralised system that extends over three kilometres.

Four internal zones have been highlighted within the broader system, which Adelaide Resources considers could potentially contribute to a mineral resource.

These are named Larwood, Bruce, Six Ways and Blue Tongue and all four zones remain open at depth.

“The dimensions of the currently modelled lodes confirm that potential for a substantial mineral resource exists, if deeper exploratory drilling successfully demonstrates the mineralised zones persist to depth,” the company said.

“Very limited historical diamond and RC drilling at Alford West has intersected deeper mineralisation and returned primary zone intersections in excess of one per cent copper, highlighting the potential for attractive grades of mineralisation to persist to depth.”

Adelaide Resources said its confidence in the depth potential at Alford West had been enhanced by the lateral extent of the system, the presence of significant mineralisation at depth at the nearby Wombat prospect, and the typically deep extent of other deposits in the district.

The company has already put the new information to use in designing a recently completed aircore drilling program at the Larwood and Bruce zones to target additional shallow mineralisation.

Assaying of these holes is in progress however, however the company stated FPXRF scans of drill samples suggest mineralised intervals are present confirming the model’s predictive ability.

“The new model now enables the confident design of deeper drilling to test for depth extensions and establish a mineral resource at Alford West,” Adelaide Resources said.

“The model will be revised to incorporate new and deeper drill information when it comes to hand, and will form the basis for ore resource estimation for Alford West.”

Email: adres@adelaideresources.com.au

Website: www.adelaideresources.com.au

Fertoz increases bulk sample to 9,500 tonnes

THE DRILL SERGEANT: Fertoz Limited (ASX: FTZ) has received approval to produce a second bulk sample at the company’s Wapiti East phosphate project in British Columbia, Canada.

The company explained the second bulk sample allows it to extract an additional 2,000 tonnes of product than it was permitted for in its first bulk sample of 7,500 tonnes in February for sale to the North American agricultural market.

Since the approval of the 7,500 tonne bulk sample in February, unseasonably warm weather conditions have prevented an ice bridge being constructed across Red Deer creek to access the sample location.

This has meant the company has been waiting until March for road access improvements to be carried out.

Fertoz now has permission to extract a total of 9,500 tonnes of phosphate.

Fertoz said it is now ready to extract its first saleable material as soon as the snow melts in the June quarter.

“We expect minor creek crossings will become passable and the roads will dry out towards the end of May allowing bulk sample collection to start,” Fertoz Limited managing director Les Szonyi said in the company’s announcement to the Australian Securities Exchange.

“We have taken advantage of the delay by having a second bulk sample approved and plan to increase each bulk sample to 10,000 tonnes to enable a total of 20,000 tonnes to be collected in 2014.

“The second bulk sample location also has the advantage that it can be accessed from upstream of Red Deer creek and does not require a portable bridge to be installed across the creek.”

Fertoz has previously announced two organic farmers are ready to take its product at the mine gate as soon as it becomes available.

The farmers will be undertaking farm trials and will be responsible for freight and rock phosphate processing.

Laboratory test results on the company’s Wapiti phosphate have demonstrated phosphate availability of 10 per cent, which – as Fertoz pointed out – compares well against other organic fertilisers that have availability as low as three per cent.

The Wapiti phosphate also contains important secondary and tertiary minerals required for good plant growth, which Fertoz claims makes it suitable for North American organic markets.

The company has commenced discussions with potential marketing agents and distributors, with the aim of appointing one in 2014 and has also commenced work on a small scale (up to 75,000 tonnes per annum) mining lease application which will include mine planning studies.

The company is currently reviewing a number of phosphate product options (such as bulk, pelletized and bagged phosphate) with the aim of supplying the US and Canadian organic markets in 2014.

Email: office@fertoz.com

Website: www.fertoz.com

Orinoco Gold starts Cascavel exploration decline

THE DRILL SERGEANT: Orinoco Gold (ASX: OGX) has kicked off the next key phase of evaluation of the Faina Goldfields project with the commencement of a planned exploration decline at the company’s high-grade Cascavel project in central Brazil.
 
The company has designed the exploration decline to enable it to identify additional high-grade shoots, provide grade information from panel sampling within the decline, and assist with resource definition.

It also anticipates ore being crushed and stockpiled for future treatment.

 

Location of exploration decline at Cascavel. Source: Company announcement

 

“The exploration decline has commenced from the Cascavel winze and will progress across strike and down-dip towards the end of the Mestre winze,” Orinoco Gold said in its ASX announcement.

“Stoping of high-grade gold shoots will be undertaken as the opportunity arises.

“The focus of the exploration decline is an initial resource area of approximately 250 metres by 300 metres.”

The company explained the development of the exploration decline at Cascavel forms part of its broader strategy to build a high-grade resource inventory at the Faina Goldfields project, initially to support a low-cost gravity gold operation.

Orinoco said it is confident sites within the broader Faina project such as Cascavel (OGX: 70 per cent) and the Sertão gold mine (OGX acquiring 100 per cent) offer resource potential from ongoing exploration and resource definition programs.

The company’s main focus is to demonstrate the viability of a central processing plant at Faina fed with ore from several nearby deposits as the basis for a long-term, low-cost gold business in
Brazil.

Email: info@orinocogold.com

Website: www.orinocogold.com