Corazon identifies high-grade nickel-copper

THE DRILL SERGEANT: ASX-listed Canada-focused exploration company Corazon has intersected approximately 50 metres of sulphide mineralisation from 771 metres down-hole, including three zones of high-grade semi-massive to massive nickel-copper sulphide breccia, at its Lynn Lake nickel sulphide project.

The result comes from an ongoing exploration hole, which is currently being drilled at Lynn Lake.

“The intensity of the mineralisation is some of the strongest observed at the Lynn Lake Project to date, and is significantly greater than anything the company has drilled in the upper parts of the EL Deposit and resource area,” Corazon Mining said in its announcement to the ASX.

Source: Company announcement

Visual analysis carried out by Corazon of the drilling so far along with results from a hand-held XRF instrument supports the company’s belief in the existence of nickel and copper mineralisation at the project within a breccia internal to the ultramafic intrusion.

The current hole is a follow up drill hole to a discovery hole, which the company completed in May this year.

This hole returned:

–    23.75 metres at 3.34 per cent nickel, 1.54 per cent copper and 0.079 per cent cobalt from 731.25 metres, targeting down plunge extensions to the historic EL Mine.

The company said the current drilling has now established a down-plunge extent to mineralisation of at least 100 metres between the discovery hole and the latest hole while remaining open to the south and at depth.

“This is a significant discovery and supports the existence of a breccia body similar to the high grade nickel/copper/cobalt sulphide mineralisation mined at surface within the EL mafic/ultramafic pipe,” the company said.

“The reported intercept does not represent a true width for the mineralisation.

“At this stage the orientation of the mineralisation is uncertain. Analogous mineralisation outcropped at surface and was mined to 210 metres depth at a consistent diameter of between 80 metres and 120 metres, pertaining to the ultramafic core of the intrusion.”

Corazon has now drilled seven holes into this target, which had initially defined by drilling and verified by downhole EM geophysics.

All of these holes have intersected high-grade mineralisation and support the company’s interpretation that the EM conductors recently defined are likely to represent substantial zones of high-grade nickel/copper sulphide.

Results of drilling within the EM conductors include:

–    23.53 metres at 1.46 per cent nickel, 0.54 per cent copper and 0.036 per cent cobalt from 718.47 metres;

–    23.75m at 3.34 per cent nickel, 1.54 per cent copper & 0.079 per cent cobalt from 731.25 m, including 13 m at 4.27 per cent nickel & 0.89 per cent copper;

–    2.30m at 3.84 per cent nickel, 0.41 per cent copper & 0.092 per cent cobalt from 715.25 m; and

–    1.42m at 3.99 per cent nickel, 0.36 per cent copper & 0.027 per cent cobalt from 724.00 m, and 6.00m at 1.89 per cent nickel, 1.17 per cent copper & 0.048 per cent cobalt from 739.00 m;

The company said all holes except for one are believed to have intersected the upper-northern parts of the targeted EM conductor.

Sumatra makes new gold discovery

THE DRILL SERGEANT: Sumatra Copper & Gold has made a new gold discovery at the Lusang North prospect within the Tandai District, located in southwest Sumatra.

The Tandai Joint Venture is currently managed by Sumatra with Newcrest Mining, which has the right to earn a 70 per cent stake in the project by spending US$12 million.

The Tandai project is a gold and silver project with, what the company claims to be, strong potential to be a multi-million ounce district.

It is located approximately 100 kilometres north of Bengkulu and covers approximately 1,000 square kilometres.

Source: Company announcement

The project has reported historic gold production of 1.4 million ounces of gold and 15 million ounces of silver.

Current exploration at the Tandai project has targeted Glumbuk, Toko Rotan and Lusang North prospects, where drilling commenced earlier this year.

Three wide intersections were returned as follows:

–    19.7 metres at 2.62 grams per tonne gold, 5.2 grams per tonne silver from a depth of 58.8 metres;

–    21.0m at 4.74 g/t gold, 36.2 g/t silver from a depth of 86.9m, including 1.9m at 27.56 g/t gold, 28.0 g/t silver from a depth of 91.3m;

–    20.8m at 1.16 g/t gold, 3.2 g/t silver from a depth of 144.3m;

–    3.0m at 2.03 g/t gold, 30.4 g/t silver from a depth of 110.2m; and

–    1.7m at 2.23 g/t gold, 7.8 g/t silver from a depth of 123.3m.

The company said it was unable to ascertain an accurate estimate of the true thickness of the mineralisation until further drilling is completed and the results have been integrated with surface mapping and detailed down hole structural measurements.

“We targeted the program at Lusang North following recent character sampling of breccia zones earlier this year which returned bonanza values up to 104.00 grams per tonne gold and are extremely pleased to find these high grade vein breccias,” Sumatra Copper & Gold executive chairman Julian Ford said in the company’s announcement to the Australian Securities Exchange.

“We have so far completed 2,897 metres of drilling around Tandai, including activity at our other highly prospective targets at both Toko Rotan and Glumbuk to the north and south of Lusang North.

“The first phase program was recently completed and the second phase program testing other prospect areas within the Tandai district, following up intersections from the phase 1 program and testing CSAMT anomalies is now in progress.”

Early assays encourage Montezuma

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

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

 

Source: Company release

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

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

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

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

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

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

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

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

Nupower receives drilling approval

THE DRILL SERGEANT: NuPower has had a Phase 2 reverse circulation (RC) drill program approved to be carried out on the company’s Arganara phosphate project located in the Northern Territory.

The Phase 2 program will include approximately 166 additional 30 metre holes for 4980 metres of drilling.

NuPower said the aim of the Phase 2 drilling program is to extend the phosphate footprint and test if mineralisation is continuous from Arganara to Limestone Bore, which would result in a strike length of approximately 30km.
 
The company is currently wrapping up a Phase 1 program with just the western detailed 200m by 200m spaced grid of holes covering possible extensions of known phosphate mineralisation on an adjacent tenement, yet to be completed.

 

NuPower Phase 1 drill holes shown as blue dots, Phase 2 as red dots. Source: Company release

“NuPower expects the Phase 2 program to be completed quickly, as it will follow directly on from the Phase 1 program and utilise the existing field camp and drill rigs,” the company said in its announcement to the ASX.

“If time and weather permits, the Phase 2 drill holes planned at Anomaly L will also be completed, however, if not completed this year, then they will be drilled separately during 2012.”

Currently Phase 1 drill chips are being submitted for preparation before being sent for analysis.

The company has met some delays with the initial batches; however, it said that it hopes these delays will not extend into the second phase of drilling.

Sorby drilling remains consistent for Kimberley Metals

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

African Iron strengthens Mayoko Resource

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

First hole delivers for Blackthorn

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

The hole intercepted drilled thickness intervals that include:

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

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

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

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

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

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

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

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

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

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

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

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

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

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.”

 

 

Chesser drills Turkish delights

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sheffield announces Inferred Resource

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

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

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

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

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

Iluka retains a 1.5 per cent royalty in the project.

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

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

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

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