THE DRILL SERGEANT: Niuminco Group (ASX: NIU) announced the release of an Inferred Mineral Resource for the Great Pyramid tin prospect in Eastern Tasmania.

The Great Pyramid deposit Inferred Mineral Resource has been estimated at 1.3 million tonnes at 0.3 per cent tin for 3,900 tonnes of contained tin using a 0.2 per cent tincut off, or 5.2 million tonnes at 0.2 per cent tin for 10,400 tonnes of contained tin using a 0.1 per cent tin cut off.

Niuminco explained the Great Pyramid Inferred Mineral Resource contains three distinct areas of higher grade tin mineralisation, being the North Block, South Block and Brocks Block.

Great Pyramid deposit drilling and mineralisation block locations. Source: Company announcement

Niuminco owns 72.54 per cent of, and manages TNT Mines Limited, which is the 100 per cent owner of the Great Pyramid prospect.

Great Pyramid is one of the unmined prospects within TNT’s Aberfoyle tin and tungsten project.

The project consists of the old workings and unmined mineralisation at the Aberfoyle, Storey’s Creek and Lutwyche mines, as well as the largely unmined prospects at Royal George and Great Pyramid.

Niuminco said Inferred Mineral Resource estimates are expected shortly for the Lutwyche and Royal George deposits.

TNT also controls other Tasmanian assets at Moina, Oonah and Anchor and is evaluating the potential for large scale, low grade open pit mining at Great Pyramid as part of the re-development of the Aberfoyle tin and tungsten project.

Niuminco said it is is currently developing an exploration plan to test high-grade, depth and strike extents while advancing metallurgical studies.

“The limited drilling at depth into Great Pyramid has identified a number of zones of higher grade mineralisation, compared to the overall resource grade, which will be targeted by follow up drilling,” Niuminco Group said in its ASX announcement.

“In addition to the depth potential, the deposit remains open along strike south eastwards of the north block and north westwards of the Brocks block.”

Email: info@niuminco.com.au

Website: www.niuminco.com.au

THE DRILL SERGEANT: The Board of Atlas Iron (ASX: AGO) has approved development of the Mt Webber Stage 2 project, which will double production at Mt Webber to six million tonnes per annum.

Atlas said Mt Webber’s first export of Stage 1 product remains on track for the June 14 quarter, with the expanded production rate of 6Mtpa expected to be achieved by the end of the December 14 quarter.

The company indicated life of mine operating costs are now expected to be in the range of $49 to 51 per wet metric tonne (WMT), which it said represents a reduction from the $56/WMT originally estimated for the Stage 1 project.

Atlas’ north Pilbara project portfolio, including Mt Webbber. Source: Company announcement

Atlas also advised the combined stages of the Mt Webber project are estimated to cost an aggregate $212 million (*Gross Mine Capex – partially funded by Atlas’ JV Partner Altura Mining (ASX: AJM), under JV terms, inclusive of road upgrades.

“Mt Webber is a highly capital efficient mine, with the completed feasibility study determining a combined cost of Stages 1 and 2 being $212 million for six million tonnes per annum, representing approximately $35 per annualised tonne of production, clearly well below industry norms,” Atlas Iron managing director Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.

“This capital cost is inclusive of a substantial contribution towards regional road upgrades, which will benefit Pilbara road users for years to come.

 “Atlas has a track record of delivering new mines in a cost effective, timely manner and the completion of the second stage of Mt Webber will fulfil the Company’s original Horizon 1 vision, with further material opportunities in the pipeline.

“We continue to have exciting prospects in the vicinity of our existing mines, with Corunna Downs and Miralga Creek continuing to impress.

“Following Atlas’ strong half year performance, the company is extremely well placed to grow our cash flow and create shareholder value, while we work to unlock the value of our Horizon 2 prospects.”
 

Email: atlas@atlasiron.com.au  

Website: www.atlasiron.com.au

THE DRILL SERGEANT: Inca Minerals (ASX: ICG) claims to have fielded unsolicited approaches from middle tier and major resource companies for agreement to visit the company’s Chanape project in Peru.

The approaches have included requests to access confidential technical and corporate information regarding the project.
 

For commercial and legal reasons Inca is remaining coquettish at this stage and won’t be revealing the identity of it suitors any time soon as it has already signed a Confidentiality Agreement not to do so and is currently negotiating others.

A schematic cross-section presented as the Porphyry Model for
Chanape. It is not to scale but shows the position of the company’s
three deep drill holes, the three known forms of porphyry and
porphyry-related mineralisation at Chanape, and shows how multiple
“ore-zones” may typically occur in a large porphyry system, such as at
Toromocho and as indicated at Chanape. Source: Company announcement

Work carried out by Inca at Chanape has revealed an open-ended zone of porphyry mineralisation has been identified in recent drilling, identifying a total of some 75 breccia bodies with around 40 drill targets generated.

To date Inca has completed 11 diamond drill holes (three deep holes for porphyry drilling and eight shallow holes for shallow epithermal drilling).

Exploration and drilling at Chanape has demonstrated the presence of three known styles of mineralisation, all of which Inca said are known to be related to porphyry systems.

These are:

Gold, silver and copper mineralisation occurring in association with the Chanape breccia pipes and altered volcanics;

Gold, silver, copper and lead mineralisation occurring in association with three large vein systems occurring at Chanape; and

Copper, molybdenum, silver and gold mineralisation occurring in association with porphyritic
monzodiorite and hydrothermal brecciation.

“It is the company’s strongly held view that Chanape hosts a fully preserved copper, molybdenum, silver, gold porphyry system,” Inca Minerals said in its ASX announcement.

“It is believed that, not unlike the mega-sized Toromocho deposit 30 kilometres away, Chanape is well placed to potentially become a multi-ore-zone, super-sized mine development.

“The early exploration results and the interest subsequently shown from major companies affirm the strong potential of Chanape.”

Email: info@incaminerals.com.au

Website: www.incaminerals.com.au

THE DRILL SERGEANT: IMX Resources (ASX: IXR) has received final assay results from the 2013 drilling program undertaken at the company’s Ntaka Hill nickel sulphide project in south-eastern Tanzania.

IMX believes the results have confirmed the discovery of Ntaka Kati, a new zone of nickel sulphide mineralisation, located 300 metres north of the Zeppelin deposit.

Ntaka Hill – location of Ntaka Kati and 2013 drill-holes. Source: Company announcement

The drilling encountered broad widths of nickel-copper mineralisation at Ntaka Kati, which IMX explained to be an extension to the Sleeping Giant-Zeppelin Mineral Resource, located 300m north of the existing Mineral Resource, at the Ntaka Hill nickel sulphide project.

Results include:

NAD13-388:
Intersected a total of 71.5 metres of nickel mineralisation, including 41m at 0.40 per cent nickel, 16m at 0.5 per cent nickel and 14.6m at 0.7 per cent nickel within 150m of the surface;

NAD13-387:
7.3m at 1 per cent nickel; and

5.9m at 0.6 per cent nickel.

Nine of the holes produced results the company said highlighted the potential for more mineralisation outside of the existing Zeppelin and Sleeping Giant deposits.

The discovery of P Zone, which IMX announced in December last year, combined with the extensions of the Zeppelin and Sleeping Giant deposits  last October, IMX considers the Ntaka Kati discovery continues to demonstrate the potential for the various zones to form part of a much larger mineralised system up to 1.5 kilometres wide.

Further results indicate the P Zone continues to be mineralised northwards towards J Zone, with assay results including:

NAD13-383:
12m at 0.6 per cent nickel from 52m.

Email: info@imxresources.com.au

Website: www.imxresources.com.au

THE DRILL SERGEANT: West African Resources (ASX: WAF) has entered into an agreement to acquire a second-hand 1.6 million tonnes per annum heap leach plant for the company’s Boulsa project, in Burkina Faso.

The plant is currently located nearby in Ghana, within trucking distance of some 850 kilometres from the Boulsa project.

According to West African Resources the key components of the plant including crushers, agglomerator and conveyors are in good condition and require only minor refurbishment.

“We are targeting gold production from Mankarga 5 in 2015 at a low cost by utilising second-hand equipment where possible,” West African Resources managing director Richard Hyde said in the company’s announcement to the Australian Securities Exchange.

“The heap leach plant provides the potential for us to fast-track the recently acquired Mankarga 5 deposit into production with an initial production target of 1.6 million tonnes per annum to achieve initial production of at least 50,000 ounces of gold per annum, subject to study outcomes.

“We remain on track to deliver a resource upgrade for Mankarga 5 by the end of this quarter, with the completion of a Preliminary Economic Assessment and Scoping Study in the first half of calendar 2014.”

West African explained it has been working with its consultants regarding the proposed project development schedule for Mankarga 5 and surrounding prospects.

The company has set a target of gold production at Mankarga 5 in 2015, which in order to achieve it will first upgrade the Mankarga 5 resource by focussing on the oxide and transition zones.

This will lead to completion of a Preliminary Economic Assessment (PEA) and Scoping Study, which will investigate the economic potential of low-cost heap leach start-up project.

Provided a positive outcome is achieved from the PEA and Scoping Study, the company indicated it would immediately transition into Feasibility Studies and apply for a Mining Permit in the second half of 2014.

Email: info@westafricanresources.com

Website: www.westafricanresources.com