THE DRILL SERGEANT: Liontown Resources (ASX: LTR) is to acquire the remaining 34 per cent interest in the Jubilee Reef gold project in Tanzania, East Africa from its joint venture partner Currie Rose Resources.

The deal will result in Liontown holding 100 per cent ownership of the project.

“The opportunity to acquire 100 per cent ownership of the Jubilee Reef project and renegotiate the royalty was extremely attractive to Liontown and represents a good outcome for shareholders,” Liontown Resources chairman Tim Goyder said in the company’s announcement to the Australian Securities Exchange.

“Having the opportunity to consolidate ownership of the project will provide shareholders with exposure to 100 per cent of its substantial exploration potential and will be an important factor in being able to manage future exploration as effectively as possible.”

Liontown said it has completed a total of 22,296 metres of RC, diamond and aircore drilling since work commenced on the Jubilee Reef project in mid-2011.

The drilling has encountered broad intersections at the Masabi Hill, Panapendesa and Chela prospects with better intersections recorded at Masabi Hill in particular, including:

–    50 metres at 1.8 grams per tonne gold from 40 metres, including 27 metres at 2.8g/t gold from 42 metres;

–    62m at 2.4g/t gold from 70m, including 21m at 4.7g/t gold from 70m;

–    68m at 1.5g/t gold from 132m, including 28m at 1.9 g/t gold from 133m; and

–    86m at 1.7g/t gold from 9m, including 44m at 3g/t gold from 24m.

Liontown said it is currently reviewing all data from Jubilee Reef and is planning field work to be undertaken following the cessation of the northern Tanzanian wet season.

Jubilee Reef – location plan. Source: Company announcement

In consideration for increasing its interest in the Jubilee Reef Project to 100 per cent, Liontown will issue 12 million shares to Currie Rose and make a payment of up to US$120,000 for any transaction costs.

Under the terms of the existing Jubilee Reef Joint Venture Agreement, Currie Rose had a right to receive a 3 per cent net smelter royalty upon its interest being diluted to 5 per cent.

As part of the agreement to acquire the remaining interest, Currie Rose will now receive a 2 per cent net smelter royalty on future gold production from the Jubilee Reef project.

Liontown will have the option to purchase the 2 per cent net smelter royalty in the event that a Preliminary Economic Assessment is completed for a resource in excess of 250,000 ounces of gold (or gold equivalent).

THE DRILL SERGEANT: Indochine Mining (ASX: IDC) has intersected further high-grade gold mineralisation while drilling the Western Roscoelite Bonanza Zone (WRZ) at the company’s 1.8 million ounce Mt Kare gold-silver project in Papua New Guinea.

According to Indochine the WRZ contains two of three Bonanza Zones the company is exploring via diamond drilling at the project.

The company indicated it had received high-grade assay results from the first four drill holes, which it claims has demonstrated the potential of the Bonanza Zones.

Mt Kare resource plan with the locations of the WRZ bonanza drill holes. Source: Company announcement

Best results from the recent drilling include:

–    14 metres at 15.3 grams per tonne gold, 9 grams per tonne silver from 36 metres down hole, including 7m at 22.9g/t gold and 14g/t silver, including 1 m at 57.7g/t gold and 19g/t silver;

–    26m at 6.7g/t gold, 5g/t silver from 25m down hole, including 5m at 10g/t gold and 8g/t silver, including 7m at 11.7g/t gold, 7g/t silver; and

–    15m at 5.7g/t gold, 7g/t silver from 20m down hole, within 33m at 3.7g/t gold, 16g/t silver from 2m down hole, including 8m at 8g/t gold, 6g/t silver, including 7m at 11.7g/t gold, 7g/t silver.

“These results are pleasing and will help to improve the overall grade of the Mt Kare project, thus improving the overall economics of the project,” Indochine Mining chief executive officer Stephen Promnitz said in the company’s announcement to the Australian Securities Exchange.

“Our priority at this time is to continue drilling in the Bonanza Zones before defining a larger mineral resource later in the year.”

Indochine said the results were encouraging as they will assist it in targeting new drill holes at the possible location of the feeder zones to more bonanza targets.

The company considers the results also indicate more potential along strike, on the interpreted intersection with another known mineralised fault, possibly with an associated ‘feeder’ zone.

This target is currently being drill tested.

THE DRILL SERGEANT: Bulletin Resources (ASX: BNR) has received results from a reverse circulation (RC) drilling program currently underway at the company’s 100 per cent-owned Lamboo and Golden Crown projects located near Halls Creek in the East Kimberley region of Western Australia.
 
The company said three exploratory RC drill holes testing the down-plunge potential of Wagtail South had intersected high-grade mineralisation and a new hanging-wall lode.

Best results include:

–    3 metres at 9.6 grams per tonne gold; and

–    3m at 7.2g/t gold (composite assay).

Bulletin considers the results from all three holes have confirmed down-plunge continuity of the Wagtail South mineralisation below the current resource of 79,000 tonnes at 5g/t gold.

The company said the indication of a new near-surface mineralised lode in the hanging-wall to the immediate east of the planned open pit has encouraged it to grow the resource.

Wagtail North and Wagtail South long section showing new drill holes results. Source: Company announcement

“These new results from Lamboo are providing additional confidence in the understanding to the controls of the high grade Wagtail South mineralisation at depth” Bulletin Resources managing director Martin Phillips said in the company’s announcement to the Australian Securities Exchange.

“The high-grade lodes typically have a strike extent of less than 80 metres so it is particularly pleasing that we are continuing to hit good grades in these wide spaced exploratory holes.

“Drilling is nearing completion at the Golden Crown and Faugh-a-Ballagh gold deposits following which a detailed assessment of all assay results will be completed.”

Bulletin also completed a third deep hole at Nicolson’s Find targeting the footwall lode and a further exploratory hole, both of which failed to intersect any significant gold mineralisation.

The company still has additional drilling planned for Nicolson’s Find, which will focus on the re-emerging, high grade Main Lode announced in April.

Bulletin indicated future drilling at Nicolson’s North will be subject to the completion of a geophysical survey to assist in the understanding of the structural controls of the mineralisation the company has previously intersected in this area.

THE DRILL SERGEANT: Birimian Gold (ASX: BGS) has placed 95.2 million ordinary shares with Sprott Global Resource Investments at an issue price of 2.1 cents per share, a 30 per cent premium to the current market share price, to raise $2 million.

Sprott is a US-based broking and funds management firm with a track record of identifying and funding successful early stage resource companies.

Birimian claimed Sprott’s readiness to take such a strong position in the company – at a 30 per cent premium – is indicative of the long-term potential of the company’s Massigui project in southern Mali and an endorsement of its management.

The company indicated it now intends to use the net proceeds from the placement to:

–    Advance its new gold discovery at the Ntiola prospect, situated within the Massigui project;

–    Compile and evaluate recently-acquired Randgold exploration data to generate new high quality drill targets;

–    Explore the broader Massigui project; and

–    Continue to pursue additional growth opportunities.

“This Placement represents a strong endorsement and support from a major resource investment group, Sprott,” Birimian Gold managing director Kevin Joyce said in the company’s announcement to the Australian Securities Exchange.

“This clearly validates the company’s strategic position in West Africa and the prospectivity of the Massigui project.”

Birimian is currently conducting a second phase reverse circulation and diamond drill program at the Ntiola prospect, which is testing for further high-grade gold mineralisation beneath, and along strike from, the currently defined shallow mineralised zone.

Ntiola prospect previously reported drill hole locations and results. Source: Company announcement

Better reported intersections from recent drilling so far include:

–    11 metres at 4.21 grams per tonne gold from 33 metres;

–    22m at 3.46g/t gold from 78m;

–    18m at 2.85g/t gold from 3m; and

–    4m at 7.68g/t gold from 45m.

Birimian Gold said it anticipates first analytical results from this RC and diamond drilling program to be available towards the end of May.

THE DRILL SERGEANT: St George Mining (ASX: SGQ) is gearing up for a 2013 drilling program to be carried out at the company’s 100 per cent-owned Cambridge nickel prospect in Western Australia.

The 2013 drill program is designed to test priority nickel sulphide targets at the Cambridge nickel prospect and at new sites along the Stella Range ultramafic belt to the north and south of the main Cambridge prospect area.

The new targets, Cambridge South and Cambridge North, are situated on tenements the company recently acquired and have not been previously explored for nickel sulphide mineralisation.

St George nickel tenements overlaying aeromagnetics. Source: Company announcement

St George indicated final drill targets will be announced once site preparation is completed.

The company said the drilling program will test for nickel sulphide mineralisation and is aimed at attaining new information regarding the composition of, and structural controls on, the ultramafic rocks.

This will assist in selecting the most favourable areas along the ultramafic belt for further targeted drilling.

“There is a compelling technical case for additional exploration on St George’s nickel tenements, which are situated on the highly prospective Stella Range ultramafic belt,” St George Mining Technical Director Tim Hronsky said in the company’s announcement to the Australian Securities Exchange.

“Previous exploration has demonstrated the presence of high magnesium oxide (MgO) ultramafic rocks that host nickel sulphides in both disseminated and more massive forms.

“We have reached this advanced stage of nickel exploration at East Laverton over a very short period of time and are now set to test numerous promising nickel targets over all of our 100 per cent-owned tenements along the Stella Range belt.”

Disclaimer: The Roadhouse holds shares in St George Mining