Phoenix Gold extends mineralisation at Castle Hill Stage 1

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THE DRILL SERGEANT: Phoenix Gold (ASX: PXG) has received further results from drilling being conducted immediately north of Stage 1 at the company’s Castle Hill gold project, located on the Kunanalling shear zone in the Western Australian Goldfields, less than 50 kilometres from Kalgoorlie.

Phoenix Gold said the latest results have extended gold mineralisation at depth and along strike of the resource at Castle Hill, which currently stands at 23.54 million tonnes at 1.6 grams per tonne gold for 1,178,000 ounces.

 

Phoenix tenements, project location and Resource summary. Source: Company announcement

 

The latest drilling results include:

39 metres at 4.8 grams per tonne gold from 59 metres;

67m at 2.1g/t gold from 76m;

85m at 1.2g/t gold from 57m;

22m at 3.2g/t gold from 108m;

63m at 1.12g/t gold from 17m;

47m at 1.5g/t gold from 47m; and

14m at 3.9g/t gold from 127m.

“The excitement around the large intercept reported at the end of last year has certainly been justified with these latest results from the extensional program,” Phoenix Gold managing director Jon Price said in the company’s announcement to the Australian Securities Exchange.

“Given these results will potentially increase the resource envelope up to 300 metres north and at depth demonstrates the potential of our first large scale mine development.

“The drill out of Castle Hill Stage 1 is now complete and I look forward to releasing the results aimed at converting our Inferred resource to Indicated category, as well as a resource update for Stage 1 over the coming weeks.”

During the March and June Quarters 2013, Phoenix Gold completed a total of 44 Reverse Circulation (RC) for 6,461m north of Castle Hill Stage 1.

The aim of the program was to follow up extensional drilling from November last year, from which an intercept of 94m at 2.6g/t gold was reported 100m to the north of the current resource envelope.

The program also tested depth extensions below the current resource depth of 85m from surface.

Phoenix said the results demonstrate mineralisation extends while demonstrating continuous grade and widths along strike and at depth.

The company considers the results provide potential for the Stage 1 resource to grow both laterally and at depth with mineralisation remaining open in all directions.

A program of infill drilling has been conducted at Castle Hill Stage 1 to enable conversion of the Resource to the Indicated category for inclusion in an open pit Reserve study as part of a Definitive Feasibility Study due for completion in December 2013.

The infill drilling results are expected for release early in the September Quarter while an extensional RC and diamond drilling program has commenced.

The company is focussed on growing the resource position at Castle Hill and Red Dam and achieving its interim target of four million ounces by December 2013.

Hazelwood Resources hits new tungsten intersections at Mt Mulgine

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THE DRILL SERGEANT: Hazelwood Resources (ASX: HAZ) has received results from recently-completed drilling at the Mt Mulgine tungsten project in Western Australia.

Hazelwood owns 70 per cent of the tungsten and molybdenum rights, Gindalbie Metals (ASX: GBG) 30 per cent, and Minjar Gold Pty Ltd, a subsidiary of Shandong Tainye Group, has gold rights to the project.

Minjar Gold has recommenced gold mining operations to the north of the Mt Mulgine project area and recently drilled five gold exploration Reverse Circulation (RC) drillholes into the Mt Mulgine Trench deposit.

Re-sampling and assaying for tungsten has returned results including:

–    70 metres at 0.17 per cent tungsten from 10 to 80 metres;

–    72m at 0.13 per cent tungsten from 1m to 73m; and

–    18m at 0.15 per cent tungsten from 19m to 37m.

Hazelwood said the results show a broad near-surface extension of the known mineralisation at the Trench deposit adjacent to the Mulgine Hill Resource of 8.2 million tonnes at 0.21 per cent tungsten (0.1 per cent cut-off grade; 76 per cent Indicated category).

 

Trench deposit cross-section with historic holes and recent RC holes. Source: Company announcement

 

“The Trench deposit was extensively explored for tungsten between 1968 to 1981 with eighty diamond core holes drilled,” Hazelwood Resources explained it its ASX announcement.

“Seventy two of these core holes are archived in a core yard and these have been re-logged by SJS Resource Management for Hazelwood.

“The process of re-logging has included day-light and ultra-violet photography, detailed re-interpretation of the rock types and alteration, drill core recovery and 957 specific gravity (density) determinations.”

Hazelwood indicated it proposes to re-sample and assay the legacy holes from the Trench deposit and, where necessary, conduct validation drilling to enable it to be added to the Mt Mulgine tungsten Mineral Resource inventory.

According to the company, historical reports indicate the tungsten deposits of Mt Mulgine were considered amongst the largest in the Western World and evaluation work has previously been completed including bulk sampling, pilot plant trails and engineering studies.

Corazon identifies copper sulphide at Top Up Rise

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THE DRILL SERGEANT: Corazon Mining (ASX: CZN) has commenced exploration drilling at the company’s Top Up Rise project (TUR) in the Gibson Desert region of Western Australia.

The drilling program is testing a large gravity anomaly of approximately 10 kilometres by 6 kilometres in size.

Corazon has reported that copper sulphide (chalcopyrite) mineralisation has been intersected in the first diamond core exploration hole (TUR13DD001) at between 228.8m and 275m down hole.

“We are in the very early stages of this exploration program and possibly drilling the margins of our primary target, which is the main part of the gravity anomaly,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.

“However, we are already seeing evidence of multiple intrusive, hydrothermal and alteration events.

“The existence of copper sulphide as an alteration mineral is very encouraging.”

Corazon explained the source of the large and very dense TUR gravity anomaly has not yet been determined and drilling is continuing to test for its source.

 

Drill hole location plan – residual gravity image (colour) over
aeromagnetic image (grey-scale shadow). Source: Company announcement

 

Geological information the company has acquired from drilling to date is being used to reprioritize and adjust target ranking and drill hole locations.

Despite encouraging signs of copper sulphide mineralisation in the first diamond core hole (TUR13DD001), drilling was suspended and the rig relocated to the ‘priority one’ target (hole TUR13DD002), 3km to the southeast.

The company has interpreted the results so far to suggest the gravity anomaly at TUR13DD002 is closer to the surface than at the first core hole (TUR13DD001) and could provide a quicker test of the main part of the anomaly.

Target TUR13DD001 has the highest gravity reading in the southern area of the anomaly.

Corazon indicated TUR13DD001 will be maintained for possible re-entry at a later date.

The latest information the company has received from site is that the RC drilling pre-collar for TUR13DD002 has been completed to 283m, in preparation for core drilling.

The proposed hole depth is 350m.

 

Disclaimer: The Roadhouse holds shares in Corazon Mining

Avanco Resources upgrades Stage II Pedra Branca Resource

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THE DRILL SERGEANT: Avanco Resources (ASX: AVB) has reported a 46 per cent increase in the JORC Code-compliant Reported Mineral Resources at the Pedra Branca West deposit, located in the Carajás Mineral Province in northern Brazil.

The increase represents a 15 per cent increase overall at Stage II.

The JORC Reported Mineral Resource Inventory for Stage I and II has increased to:

67.94 million tonnes at 1.22 per cent Copper, 0.32 grams per tonne gold for 828,000 tonnes of contained copper and 700,000 ounces of gold.

Stage I and II combined Copper Equivalent increases to:

965,000 tonnes of contained Copper at 1.42 per cent copper.

Avanco said recent drilling it has carried out at Pedra Branca West has translated into a 37 per cent increase in tonnes, six per cent increase in grade and 46 per cent increase in contained copper in the West.

Overall, Stage II is up 18 per cent on tonnes and 15 per cent in contained copper.

 

Avanco tenure map in Carajas. Source: Company announcement

 

“The company has made significant progress since January 2011 completing approximately 49,000 metres of drilling, achieving a tenfold increase in JORC-compliant resources, generating two excellent projects, agreed a significant portion of the financial terms required for the development and production of the Stage I project and identified significant exploration potential in the Western Leases,” Avanco Resources said in its ASX announcement.

Avanco indicated it currently maintains a strong financial position with its current focus on making the transition to developer status.

“The company’s recently agreed proposal of a US$58 million debt facility for the development of Stage I, puts Avanco’s first copper mine within reach of being fully funded,” the Avanco said.

General Mining hits high-grades at Chesterfield

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THE DRILL SERGEANT: General Mining Corporation (ASX: GMM) has received results from the first round of drilling at the company’s Chesterfield gold project, 50 kilometres north-west of Meekatharra in Western Australia.

The drilling has returned numerous high-grade intersections – up to 61 grams per tonne gold, which General Mining said demonstrates Chesterfield has potential to be a source of high-grade ore for several plants in the region.

This could take the form of a mine-gate sale or toll-treating campaigns, among other options.

Reverse Circulation (RC) drilling at Chesterfield gold project returned high-grade results at the Dorothy and Marguaritta prospects, including:

Dorothy

–    4 metres at 28.86 grams per tonne gold from 21 metres, including 2 metres at 53.89 grams per tonne gold;

–    5m at 5.46g/t gold from 38m, including 1m at 21.67g/t gold; and

–    4m at 33.81g/t gold from 33m, including 2m at 61.32g/t gold.

Marguaritta

–    5m at 2.73g/t gold from 13m; and

–    5m at 5.91g/t gold from 38m, including 2m at 12.29 g/t gold.

Drilling at the Dorothy prospect at Chesterfield targeted the mineralisation associated with the main workings.

General Mining said the drilling at Marguaritta confirmed mineralisation hosted by quartz veining within a foliated mafic volcanic or intrusive.

The company indicated the Dorothy structural position, just to the west of the Marguaritta mineralisation has not been adequately tested by historic drilling.

 

Source: Company announcement

 

These targets and others identified by soil sampling have been tested sporadically over a strike length of 2km.
 
Marguaritta itself has been intersected over 950m from Marguaritta North to Marguaritta South and remains open to the north and south.

At Dorothy a number of diamond drill hole pre-collars have been completed as a precursor to diamond drilling due to commence in July.

General Mining said these holes will test the mineralisation beneath the weathered zone and provide information regarding the geometry, grade and nature of the primary mineralisation.

“The results support the company’s view that there is potential to outline a larger deposit by testing for extensions to the mineralisation over the two kilometre strike length between Dorothy and Marguaritta,” General Mining Corporation chairman Michael Wright said in the company’s announcement to the Australian Securities Exchange.

“These results show that Chesterfield contains high-grade gold and provide more evidence that there is significant scope to grow the known mineralization.

“The combination of the high-grade results to date, the potential to grow the known mineralisation along strike and at depth and the project’s close proximity to third-party processing plants give us every confidence in the economic outlook for Chesterfield.”

Aguia Resources strikes phosphate intersections in Brazil

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THE DRILL SERGEANT:  Aguia Resources (ASX: AGR) has received initial results from recent exploration activity at the company’s Joca Tavares project located in the state of Rio Grande do Sul in southern Brazil.

Aguia has completed detailed programs of mapping, rock, soil and auger sampling to delineate the dimensions of the Joca Tavares carbonatite for follow up programs of drill testing.

So far the company has completed 25 shallow auger drillholes on four 100 metre spaced lines.

Assays from the first three holes have been received and returned significant intersections of phosphate mineralisation from surface at similar grades to the recent discovery at Três Estradas.

Results include:

14.7 metres at 10.8 phosphate from surface (hole ended in mineralisation), including 10.7 metres at 12.7 per cent phosphate;

6.4m at 8.2 per cent phosphate from surface (hole ended in mineralisation), including 2.4m at 12.6 per cent phosphate; and

5.5m at 7.7 phosphate from surface (hole ended in mineralisation), including 3.5m at 9.9 per cent phosphate.

Joca Tavares has not been previously drill tested and Aguia considers these early results indicate phosphate bearing carbonatite host rock is present over an extensive area.

 

Location of Rio Grande Phosphate projects and Vale Cajati phosphate mine, SE Brazil. Source: Company announcement

 

“We are extremely pleased with the initial results from Joca Tavares and in particular the shallow auger holes that have outlined the potential for shallow oxide phosphate mineralisation,” Aguia Resources managing director Simon Taylor said in the company’s announcementto teh Australian Securities Exchange.

“Together with the JORC-compliant resource identified nearby at Três Estradas we believe the projects located in Rio Grande do Sul have the potential to form a solid basis for future project development opportunities including a potential early start up and cashflow.”

Aguia believes both the Três Estradas and Joca Tavares projects represent new phosphate discoveries with characteristics similar to existing producers in Brazil.

The grade and mineralogy is similar to that of other operating mines globally including Yara’s Siilinjärvi mine in Finland and Vale’s Cajati mine in Brazil, both of which produce a high quality concentrate from phosphate within carbonatite host rocks.

Hot Chili scores more copper results at Productora

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THE DRILL SERGEANT: Hot Chili (ASX: HCH) is anticipating a rise in the economics of the company’s Productora copper project in Chile after receiving more high-grade drilling results.

The latest drilling results come from the eastern flank of the central resource area within the parameters of the planned central open pit.

They include intersections of:

–    80 metres at 1.1 per cent copper equivalent (CuEq) (0.8 per cent copper, 0.2 grams per tonne gold, 293ppm molybdenum) from 100m down-hole, including 29m at 1.6 per cent CuEq (1.2 per cent copper, 0.2g/t gold and 252ppm molybdenum);

–    22m at 2.1 per cent CuEq (1.5 per cent copper, 0.4g/t gold, 328ppm molybdenum) from 171m down-hole, including 15m at 2.7 per cent CuEq (2 per cent copper, 0.5g/t gold and 393ppm molybdenum); and

–    32m at 1.5 per cent CuEq (1.2 per cent copper, 0.2g/t gold, 195ppm molybdenum) from 75m down-hole, including 7m at 4.5 per cent CuEq (3.9 per cent copper, 0.3g/t gold and 395ppm molybdenum).

“These results are considered important for two reasons,” Hot Chili said in ihts ASX announcement.

“First, they come from an area which was treated as waste in the Productora scoping study.

“This means the inclusion of this area as ore would reduce the strip ratio and therefore costs, improving the up-front economics of Productora.

“Second, they will contribute significantly to the major Productora resource upgrade planned for later this year.

“Drilling in this area is continuing as part of the current 100,000 metre program.”

 

Productora project and Scoping Study development layout in relation to 2013 drilling program focus. Source: Company announcement

 

Hot Chili currently has a 100,000m Reverse Circulation (RC) and Diamond (DD) Drilling program underway at Productora, which the company said is on-track to deliver a major resource upgrade at the project late in the second half of calendar 2013.

Four drill rigs are in operation at Productora, with an expected reduction in drilling over the coming months as the focus shift towards shallow in-pit resource extensions.

Resources at Productora stand at 165.2 million tonnes at 0.6 per cent copper, 0.1g/t gold and 132g/t molybdenum containing 920,000 tonnes of copper, 590,000 ounces of gold and 22,000 tonnes of molybdenum.

The high-grade, shallow resources at Productora currently stand at 53 million tonnes at 0.8 per cent copper and 0.2g/t gold, which the company considers to enhance the overall economics of the project.

The current drilling campaign at Productora aims to define potential additional resources from a 2km zone along the eastern flank of the planned central pit development. The zone was previously considered as waste in the company’s recently announced positive scoping study.
“First drill results returned from the eastern flank in April recorded some impressive intersections including 64m grading 1.5 per cent copper and 0.4g/t gold from 124m down-hole,” Hot Chili said.

“Recent results have continued to define the eastern flank of the central resource area as a very significant addition to Productora’s forthcoming resource upgrade.

“To date, extensions being defined along the eastern flank have consistently highlighted higher-grade copper and gold mineralisation.

“A large component of drilling has been focussed on the eastern flank of the central resource area and the company expects to receive further high-priority results from this area over the coming weeks.”

Cazaly Resources hits high-grade copper feeder zone at Mt Angelo

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THE DRILL SERGEANT: Cazaly Resources (ASX: CAZ) has completed its first diamond core drilling program at the Mt Angelo North copper deposit in the Kimberley region of Western Australia.

The Mount Angelo deposit is part of the Halls Creek copper project, which is subject to an agreement with 3D Resources (ASX: DDD), under which Cazaly may earn up to a 75 per cent interest in the project.

All assays results have now been returned with copper mineralisation intersected including:

–    37 metres at 2.63 per cent copper (+6.05 per cent zinc);

–    16m at 5.91 per cent copper; and

–    18m at 2.53 per cent copper.

“Cazaly’s first diamond core program has proved highly successful, by confirming previous mineralisation at Mount Angelo and importantly, discovering a high-grade feeder zone below the existing mineralised zones,” Cazaly Resources joint managing director Clive Jones said in the company’s announcement to the Australian Securities Exchange.

“The feeder zone hosts high grade copper and has the potential to greatly enhance the economics of the deposit.”

 

Drillhole plan showing diamond core holes, Mt Angelo North deposit. Source: Company announcement

 

Cazaly drilled a total of five diamond core holes at the deposit with to check against previous RC drilling, collect samples for metallurgical testwork, and to explore for potential higher grade feeder zones.

The company said diamond core results it had achieved confirmed previous results obtained from RC drilling.

They also delivered good core recoveries from rich copper and zinc zones and the discovery of a higher grade feeder zone below the known mineralised zones.

Drilling at the high grade feeder zone discovered below deposit returned:

5m at 4.76 per cent copper and 5.7m at 3.22 per cent copper.

Cazaly said it was encouraged by the discovery of a feeder zone as it could lead to the discovery of further high-grade mineralisation.

The company described the feeder zone to be characterised by chalcopyrite dominated stringer veinlets in a sub-vertical system linking into the massive chalcocite/chalcopyrite ore body above.

Cazaly said the zone requires further drilling to determine its full extent and nature.

MacPhersons Resources up to 13g/t gold at Boorara

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THE DRILL SERGEANT: MacPhersons Resources (ASX: MRP) have been received preliminary diamond drilling results from the Boorara drilling program located 800m to 1700m southwest of the Company’s 100 per cent-owned Nimbus processing plant.

MacPhersons reported the intersections include both higher grade gold-bearing quartz vein and stockwork mineralisation and large halos of background containing 0.3 to 1.0 grams per tonne gold.

Results included:

5.1 metres at 3.69g/t gold, from 79.05m, including 1m at 13.2g/t gold;

6.1m at 2.39g/t gold, from 67.9m, including 1.15m at 7.53g/t gold;

5.85m at 2.38g/t gold, from 1.6m, including 1m at 9.21g/t gold; and

68.7m at 0.97g/t gold, from 37.8m.

MacPhersons indicated the zones of mineralisation are strike extensions from historic Boorara gold intercepts and are open along strike and down dip.

The company said potential remains for more extensions to the existing project resources.

 

Drill collar positions for the Boorara diamond drilling. Source: Company announcement

 

MacPhersons claims to have now confirmed geological logging of mineralisation zones and the new 3D-model with these assaying results, which it considers to validate its re-interpretation of the local geological model, and the historical database.

“These are preliminary results and they validate our logging and new 3D-models of the gold mineralisation,” MacPhersons Resources managing director Morrie Goodz said in the company’s announcement to the Australian Securities Exchange.

“We believe that the Boorara mineralisation is continuous and open and this QAQC program will allow us to incorporate Boorara into our Nimbus mill feed schedule.

“MacPhersons has commenced pit optimisation studies and metallurgical testwork on Boorara to assess the co-processing Boorara and Nimbus mineralisation.”

Castle Minerals defines high-grade gold horizon at Bundi

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THE DRILL SERGEANT: Castle Minerals (ASX: CDT) has completed analysis of individual metre intervals of RC drilling at the company’s Bundi prospect, which has defined a high-grade gold and zinc horizon.

Castle said the horizon runs for over at least 1100 metres of strike, which it considers upgrades the resource potential of the Bundi prospect.

 

Castle project locations in Ghana. Source: Company announcement

 

“This is a very positive outcome for Bundi, the horizon identified may represent the distal portion of a VMS (volcanogenic massive sulphide) horizon and provides considerable scope for the definition of a high-grade gold and or zinc deposit,” Castle Minerals managing director Mike Ivey said in the company’s announcement to the Australian Securities Exchange.

Bundi is part of Castle’s 100 per cent-owned Wa project in north‐west Ghana.

Intercepts from the recent drilling on the gold/zinc horizon at Bundi include;

–    2 metres at 7.87 grams per tonne gold and 0.15 per cent zinc from 40 metres;

–     3m at 6.01g/t gold and 1.04 per cent zinc from 40m;

–     3m at 3.19g/t gold and 1.2 per cent zinc from 25m; and

–    2m at 9.11g/t gold and 1.36 per cent zinc from 68m.

Castle indicated observations it had made from the mineralisation intersected to date to include:

Host rock is a quartz‐sericite schist (metamorphosed felsic volcanic?) within a sequence of Birimian metasediments;

Linear, continuous vertically dipping zone that may represent the distal portion of a volcanogenic massive sulphide horizon;

Sulphide assemblage is represented by fine to coarse grained disseminated and banded pyrite‐pyrrhotite‐sphalerite. Pyrrhotite is magnetic providing a useful exploration targeting tool;

Strong gold zinc correlation. Low in copper and arsenic; and

The mineralisation may represent a new style of gold/zinc sulphide deposit for the Birimian of West Africa.

Castle is now planning geophysical surveys to test for the occurrence of massive sulphides and extensions to the gold mineralisation at Bundi.

RAB drilling is still ongoing in the area and results will be reported upon receipt.