THE DRILL SERGEANT: Impact Minerals (ASX: IPT) has been busy at the company’s Mulga Tank project north east of Kalgoorlie in Western Australia.

The company has identified twelve new priority target areas for nickel-copper and copper-gold deposits in previous soil geochemistry data covering a part of the Mulga Tank project.

Impact identified the new targets from a review of a broad spaced ionic leach soil geochemistry survey covering the central part of the 425 square kilometre project area.

 

Image of magnetic data over the Mulga Tank project showing the
location of the new targets identified in the soil geochemistry data.
Source: Company announcement

 

Six of the targets occur on the west side of the project area, along strike and adjacent to the Mulga Tank Dunite where Impact recently discovered nickel and copper mineralisation under about 50 metres of transported cover in its maiden drill programme on E39/988 (Impact 20 per cent and earning 70 per cent from Golden Cross Resources Limited).

Drill intercepts included:

Hole MTD011
114.8 metres at 0.3 per cent nickel from 98 metres including 2 metres at 1.3 per cent nickel;

0.5m at 1.2 per cent nickel from 211m; and

0.6m at 0.7 per cent nickel from 181 m.

Hole MTD004

0.75m at 0.85 per cent nickel, 0.35 per cent copper and 0.24g/t PGE; and

6.7m at 0.5 per cent nickel.

Impact explained the mineralisation, which occurs over an area of at least 15sqkm, occurs below elevated nickel-in-soil and copper-in-soil values.

“This suggests that nickel and copper ions are migrating to the surface through the transported cover and are detected by the ionic leach soil geochemistry technique, which is proprietary to ALS Global Laboratories,” the company said in its ASX announcement.

“Some of the strongest soil responses, up to 2,670ppb nickel and 4,830ppb copper and 4.5ppb gold occur in the north west corner of E39/988.

“These values are significantly elevated above the regional background values for these metals.

“The anomalies are open to the north west along a 10 kilometre strike extent of the greenstone belt within the project area that has not been soil sampled.”

Impact indicated the six other targets occur on the east side of the project area, which it considers to indicate potential for copper and gold mineralisation.

This area has been subjected to limited aircore drilling and data from this work is currently being compiled.

Email: info@impactminerals.com.au

Website: www.impactminerals.com.au

THE DRILL SERGEANT: Pilbara Minerals (ASX: PLS) has finalised a Feasibility Study on the company’s Tabba Tabba tantalum project, located near Port Hedland in Western Australia.

According to the company the Study has demonstrated Tabba Tabba to be a robust project with low capital and mining costs.
 
The company said the completion of the Feasibility Study has it on course for first production from the project, which is forecast for the third quarter of CY 2014 subject to project funding.
 

The Feasibility Study has defined an initial mine life at Tabba Tabba of 19 months producing approximately 365,000 pounds of tantalum pentoxide (Ta2O5), within a minimum 5 per cent Ta2O5 concentrate, delivering EBITDA (earnings before interest, tax, depreciation and amortisation) of $16 million.

 

Source: Company announcement

 

“The completion of the Feasibility Study is a significant milestone, with the positive results clearly demonstrating that the Tabba Tabba project’s high grade and quality concentrate will deliver a technically and financially robust project,” Pilbara Minerals executive and chief geologist John Young said in the company’s announcement to the Australian Securities Exchange.

“Based on the results of the Study, Pilbara Minerals and its Joint Venture partner, Nagrom, intend to fast-track the development of the Tabba Tabba project, subject to the completion of project financing.

“Tabba Tabba will deliver a steady source of cash flow for at least the next two to three years, with potential for future growth from a number of sources, including the development of the nearby Strelley project.”
 
Pilbara Minerals entered into a 50/50 joint venture agreement with metallurgical and gravity processing specialists, Nagrom in October 2013 to evaluate, develop and mine the Tabba Tabba project.

Pilbara explained the two companies intend developing a boutique open cut mining and processing operation capable of generating attractive cash flows and returns for a small capital outlay.
 
Key Financial Highlights of Feasibility Study:

Project Revenue $30.2 million;

EBITDA $16 million with Project NPV of $14.4 million at an IRR of 162 per cent;

Capital Cost of $3.9 million ($1.5 million already spent, plant capital items already 90 per cent completed);

Life-of-mine (LOM) off-take agreement in place with world-leading tantalum producer, Global Advanced Metals Wodgina Pty Ltd (GAMW); and

First full year production (2014-15) operating costs forecast at $34.74 per pound.

Project Highlights:

Maiden JORC Ore Reserve of 133,000 tonnes at 1,290ppm Ta2O5;

Total LOM production of 364,000 pounds of Ta2O5;

Production of 256,000 pounds of Ta2O5 in first full year of operations; and

All government approvals necessary to commence production are well advanced, and Pilbara Minerals and its Joint Venture partner Nagrom intend to fast-track construction subject to completion of financing;

Future Growth Opportunities:

The Tabba Tabba orebodies are open along strike and at depth – upside exists for the identification of further resources within and adjacent to the immediate pit area;

Plant throughput rate is based on conservative assumptions; and

Additional production potential from processing lower grade stockpiles, or through the development of the nearby Strelley project also secured under the Pilbara Minerals/Nagrom JV.

Website: www.pilbaraminerals.com.au

 

THE DRILL SERGEANT: Ram Resources (ASX: RMR) has expanded its ground holding in the Fraser Range nickel-copper belt of Western Australia with the acquisition of an option over five new tenements.
 
Ram has acquired a two-year option over the tenements from a private prospector.

Under the terms of the option, Ram will pay $40,000 immediately and a further $40,000 within six months.

A final payment of $50,000 per tenement must be paid by Ram should it elect to exercise its option to acquire 100 per cent of any of the exploration licences. The vendor retains a 1.5 per cent net smelter royalty.
 
During the term of the two-year option, Ram will be required to undertake exploration to assess the potential of the Fraser Range North project.

Ram indicated this would be carried out in parallel with the company’s existing exploration activities at its Fraser Range project.

“This belt is arguably the hottest exploration ground in Australia at the moment and we have a significant land holding on both sides,” Ram Resources managing director Bill Guy said in the company’s announcement to the Australian Securities Exchange.
 

The tenements, covering 163 square kilometres and collectively known as Fraser Range North, are located 150 kilometres north of both Ram’s existing Fraser Range project and Sirius Resources’ (ASX: SIR) Nova nickel-copper deposit.

 

 Fraser North project location map. Source: Company announcement

 

An auger drilling program completed by Ponton Minerals between 2005 and April 2012 identified three coincident soil anomalies containing nickel, copper, and palladium with results from this program including: 282ppm nickel, 928ppm arsenic, 87ppm cobalt, 75ppm copper, 238ppb lead and 53ppb platinum over the project area.
 
Other work by previous tenement holders included a shallow aircore drilling program targeting mineral sands. The drilling was generally between 16m and 134 m deep and in many cases only a single bottom-of-hole composite sample was taken for assay.
 
This program was conducted without the benefit of ground geophysics to target nickel-copper sulphides with no anomalous intersections detected. All work was completed before Sirius’ Nova nickel sulphide discovery was announced in July, 2012 (see Figure 5).

“We are extremely encouraged by the strong results generated in early-stage work on both ground positions,” Guy said.

“The exploration programs we are implementing will build on this work, providing investors with exposure to substantial activity in this hot region.”

Email:  info@ramresources.com.au

Website: www.ramresources.com.au

THE DRILL SERGEANT: Variscan Mines (ASX: VAR), through its wholly-owned European subsidiary Variscan Mines SAS, has been granted a second exploration licence within Brittany, France.

The St Pierre licence (Permis Exclusif de Recherche or PER) covers an area of 386 square kilometres around the La Bellière gold mine located in the Department of Maine et Loire, approximately 60 kilometres east of the regional centre Nantes.

 

Location of the St Pierre PER. Source: Company announcement

 

From 1906 to 1952 the mine produced about 334,000 ounces of gold.

Variscan said it is about to commence compilation and assessment of geological data held at the BRGM (Bureau de Recherches Géologiques et Minières – the French Geological Survey).

It also signalled upcoming mapping/structural studies would be carried out to generate short term drill targets in and around the old mine workings.

The company anticipates conducting a combination of shallow drill holes to follow-up targets defined from old mine development assays and/or drill holes, as well as deeper drilling to test the down plunge extensions of the La Bellière vein system.

Variscan also intends to begin a program of shallow auger and rock chip geochemistry covering other shear zones within the PER to define additional targets.

“This continues the flow of positive developments for Variscan in France,” Variscan Mines managing director Greg Jones said in the company’s announcement to the Australian Securities Exchange.

“The St Pierre PER is the second exploration licence granted to Variscan following the approval of the Tennie PER as announced on 28 June 2013.

“These PERs represent some of the first new exploration licences granted in France for more than two decades and clearly establish Variscan as one of France’s pre-eminent exploration companies.

“It again demonstrates Variscan’s capacity to successfully work together with the French Government and local communities and within the French mining code.”

Varsican is particularly keen on the St Pierre project due to its location covering one of Frances principal goldfields, where high grade ore has been historically extracted from quartz veins hosted within a broad, mineralised shear zone.

The company explained these shear systems are also found at La Bellière and frequently host multi-million ounce gold deposits and are one of the more important sources for gold production world-wide.

“As well as the previously mined high grade veins, old drill data and reports currently available to Variscan indicate the possible presence of thick zones of lower grade but nevertheless potentially economic gold mineralisation that may represent shallow, bulk mineable targets for future exploration,” Jones said.

“These will be one the first targets to be tested by Variscan once initial geological work is completed and approvals to commence drilling are received.”

Website: www.variscan.com.au

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.

Gold drilling underway at Spargoville

Tychean Resources (ASX: TYK) has kicked off a program of approximately 6000 metres of Air Core drilling at the company’s 100 per cent-owned Spargoville gold project in the Eastern Goldfields of Western Australia.

The program, comprising close spaced Air Core drilling, is planned to evaluate high-priority targets that have recently returned anomalous results including: Core Farm; Fugitive; Déjà vu and Golden Orb South prospects.

The program is expected to take approximately two weeks to complete with all results expected to be available by the end of March 2014.

Copper intersected in Chile

Cobre Montana (ASX: CXB) has encountered visible indications of copper mineralisation in core and shallow excavations from its maiden exploration program at the company’s Mantos Grandes project, central Chile.

Cobre can earn a 65 per cent interest in the project.
 
The diamond core drilling commenced on 20 January 2014 and is part of a planned 800 metre program to evaluate skarn hosted copper and gold mineralisation adjacent to underground workings at the Mantos Grandes and La Demonia prospects.

As of 9 February 2014 some 308m of drilling had been completed.

Drillable Ungani-style targets identified from recent seismic survey

Rey Resources (ASX:REY) has been told by Buru Energy Limited, its JV partner and operator of the Fitzroy Blocks, initial interpretation of 2D seismic data acquired over the Ungani Trend in the Canning Basin, Western Australia, in EP457.

A geophysical survey was completed during November 2013, with a total of 234 line kilometres acquired over EP457.

Processing of seismic data occurred in January 2014.

EP457 together with EP458 are referred to as the Fitzroy Blocks.

Rey holds a 25 per cent interest (including a 10 per cent free carry to production) in a joint venture on the Fitzroy Blocks along with Buru (37.5 per cent and operator) and Diamond Resources (Fitzroy) (37.5 per cent), which is a 100 per cent subsidiary of Mitsubishi Corporation.

Initial results have provided several targets analogous to the Ungani discoveries made by Buru/MC approximately 10-15 kilometres to the NW of EP457.

At least one of these targets will be proposed to the joint venture for drilling later in 2014.

Further seismic work will be proposed for other prospects and leads on the Ungani trend in EP457 and EP458 during 2014.

Mindax kicks off next phase of Meekatharra drilling

Mindax Limited (ASX: MDX) has commenced its next phase of drilling at the Meekatharra North gold project.

Yilgarn and Pilbara based drilling contractor, Ausdrill Northwest, has been contracted to complete a small deep drilling program of approximately 1,600 metres.

It is anticipated the work will be finished within two weeks, depending on weather conditions.

The work involves deep RC drilling (up to 300 metres below surface) targeting down dip and down plunge extensions of previously reported high-grade drill intersections.

The drilling is aiming to further verify the down plunge continuity of the gold mineralisation.

The Joint Venture partners for this project are funding the work.

The Meekatharra North gold project is located along strike from the Paddy’s Flat gold field (where 2.5 million ounces have been produced) and immediately south from Doray Minerals’ (ASX: DRM) Andy Well gold mine.

“We are pleased to begin this new drill campaign at Meekatharra North with the full support of our JV partners,” Mindax Limited managing director and CEO Dr Steve Ward said.

“The area is highly prospective and this new work will focus on the very encouraging high grade intersections found in the initial 2013 drilling program.

“We look forward to receiving the new results.”