AusAmerican Mining hits high-grade massive sulphide at Blue Bell

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THE DRILL SERGEANT: Australian-American Mining Corporation (ASX: AIW) has recorded its best drilling intercept to date from the maiden drilling program being conducted at the company’s Blue Bell project in Arizona.

The latest Blue Bell drilling result has returned high-grade copper-gold-silver mineralisation of:

–    17 metres at 4.5 per cent copper equivalent (CuEq) (2.1 per cent copper, 2.1 grams per tonne gold, 38 grams per tonne silver and 0.9 per cent zinc) from 239 metres.
 
The mineralisation includes a high grade core of:

–    8m at 6.6 per cent CuEq (3.2 per cent copper, 3.4g/t gold, 50g/t silver and 0.8 per cent zinc) from 245m.
 

The mineralisation remains open at depth.

 

Source: Company announcement

 

“Drill hole BBRC13011 is a significant result and demonstrates that high-grade massive sulphide mineralisation exists as well as lower grade material,” AusAmerican managing director Richard Holmes said in the company’s announcement to the Australian Securities Exchange.

“The hole is located to the northeast of another high-grade intercept, BBRC13009, which gives encouragement that significant areas of high grade mineralisation were left untouched by previous mining.”

Horseshoe Metals releases Kumarina maiden copper Resource

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THE DRILL SERGEANT: Horseshoe Metals (ASX: HOR) has completed a maiden JORC Code-compliant Mineral Resource estimation at the company’s Kumarina copper project, located in the Peak Hill Mineral Field of Western Australia.

At a cut-off grade of 0.5 per cent copper, the Mineral Resource estimate is 835,000 tonnes at 1.3 per cent copper for 10,600 tonnes of contained copper.

The Mineral Resource estimation was completed on the Rinaldi prospect where the company has identified mineralisation hosted within a north-south oriented sub-vertical fault zone.

Horseshoe Metals explained this is one of several such faults that were delineated within the company’s tenement by a 2011 aeromagnetic survey.

The deposit is very shallow with the copper mineralisation within the fault zone remaining open along strike to the north and south of the deposit as well as at depth.

“The company is pleased with the progress of exploration at the Rinaldi prospect, which has culminated in this maiden Mineral Resource estimate,” Horseshoe Metals said in its ASX announcement.

Horseshoe Metals has indicated additional drilling will be undertaken at the Rinaldi prospect to test for extensions to the mineralisation within the north-south fault zone.

The company has already intersected copper mineralisation within the interpreted fault zone at depth in a dolerite sill.

The upcoming drilling, to be sarried out this year, is taking place to identify copper mineralisation within the dolerite sill/fault zone contact.

The company said its main focus for the immediate future is to update the Mineral Resource estimate at Horseshoe Lights, having completed over 10,000 metres of drilling at the project in 2012.

 

Projects location plan. Source: Company announcement

 

“Much of the Quality Assurance/Quality Control work on the historical parts of the database has now been completed,” Horseshoe Metals said.

“Release of the updated Mineral Resource estimate is expected towards the end of March 2013.

“A geophysical study of the mine and surrounding areas is being finalised to identify targets for the next stage of drilling.”

Drilling at the Horseshoe Lights project for the 2013 field season will focus on:

–    Deep, high grade copper/gold zones – potentially located down dip and down plunge of the Main Zone – of sufficient grade to potentially support underground mining; and

–    Exploration targets outside of the immediate pit area which have not been adequately tested by previous exploration efforts.

IMX Resources hits new nickel at Ntaka Hill

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THE DRILL SERGEANT: IMX Resources (ASX: IXR) has reported new nickel sulphide intersections from a drilling campaign it carried out in November 2012 at the Zeppelin deposit, situated within the company’s Ntaka Hill nickel sulphide project in Tanzania.

The drilling campaign at Zeppelin consisted of nineteen diamond drill holes and tested a target the company had generated by re-examination of previous drill hole results and information obtained from earlier soil sampling.

Mineralisation was encountered in fourteen of the nineteen drill holes with results including:

–    37 metres at 0.71 per cent nickel and 0.15 per cent copper from 129 metres, including 8 metres at 1.13 per cent nickel and 6 metres at 1.65 per cent nickel;

–    26.7m at 0.77 per cent nickel and 0.15 per cent copper from 93mm, including 2.1m at 2.8 per cent nickel;

–    30.1m at 0.69 per cent nickel and 0.16 per cent copper from 123m, including 2.1m at 1.87 per cent nickel; and

–    60m at 0.46 per cent nickel and 0.11 per cent copper from 39m, including 5m at 1.01 per cent nickel.

“We are excited by the results of the Zeppelin drilling which further confirm the existence of additional mineralisation in close proximity to Ntaka Hill,” IMX Resources managing director Neil Meadows said in the company’s announcement to the Australian Securities Exchange.

“First up success from the application of a multi-layered approach to target generation at Ntaka Hill is extremely encouraging and as a result of this success we are now even more confident that there is additional mineralisation to be found in close proximity to the current known Resources at Ntaka Hill.”

 

Location of the Zeppelin deposit and its proximity to the Sleeping Giant
resource and other areas of known mineralisation on the Ntaka Hill
project area. Source: Company announcement

 

IMX Resources indicated it now plans to combine existing electro-magnetic conductor data in identifying drill targets as well as results from soil geochemistry and rom gravity survey work and historical data available from previous exploration to construct a multi-layered exploration approach at Ntaka Hill.

The company expects this approach will enable it to compile models to predict the likely occurrence of mineralisation within the areas between Ntaka Hill and Lionja.

“As part of the 2013 exploration program, we will also be introducing the most appropriate electro-magnetic and induced polarization technology to enable us to better target the near-surface, higher grade mineralisation evident in these intersections,” Meadows said.

IMX Resources has previously delineated a Measured and Indicated Mineral Resource of 12.79 million tonnes at 1.21 per cent nickel for 154,700 tonnes of contained nickel together with an Inferred Mineral Resource of 45 million tonnes 0.30 per cent nickel for 135,000 tonnes of contained nickel.

Red Mountain Mining extends gold mineralisation at West Drift

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THE DRILL SERGEANT: Red Mountain Mining (ASX: RMX) has continued its run of news from ongoing drilling being conducted at the company’s Batangas gold project, located 100 kilometres south of Manila in the Philippines.

Recent drilling on the West Drift epithermal lode system has extended the high-grade gold zone at the Lobo prospect, situated within the Batangas project.

 


Significant gold intersections at West Drift. Source: Company announcement

Red Mountain has announced results for a further six new drilling intersections from West Drift including:

 –    5.2 metres at 6.05 grams per tonne gold from 138.25 metres, including 1.05 metres at 16.97 grams per tonne gold, which has extended the high-grade zone to the most southern cross section the company has drilled to date.

–    10m at 2.80g/t gold from 170.8m, including 3m at 4.58g/t gold and 3m at 3.49g/t gold, 200m northeast of the above intersection; and

–    4m at 3.17g/t gold from 196m.

Red Mountain has now delineated the high-grade shoot target at West Drift has over a 200m strike length within a plus 400m strike length target zone.

“The latest intersections have extended the high-grade gold target zone and confirmed a potential shallow plunging corridor within which multiple high-grade gold shoots are expected to occur,” Red Mountain executive chairman Neil Warburton said in the company’s announcement to the Australian Securities Exchange.

“Deeper drilling with two rigs is underway to test the trend of increasing grade and thickness with depth with first results from this exciting phase due in coming weeks.”

These new intersections are part of a drilling program by Red Mountain at West Drift to target high-grade gold and convert the gold mineralisation to mineral resource inventory in accordance with the JORC Standards.

A total of 11 holes for 2,158 metres have been completed to date and the program is ongoing.

MZI Resources increases Keysbrook THM Resource

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THE DRILL SERGEANT: MZI Resources (ASX: MZI) has increased the Mineral Resources at the company’s Keysbrook mineral sands project in Western Australia by 60 per cent to 78.9 million tonnes at an average grade of 2.5 per cent Total Heavy Mineral (THM).

The increase follows the company undertaking the re-evaluation of permits, agreements and approvals.

MZI explained this work has allowed previously drilled mineralisation to be included in the Mineral Resource.

This increase at the Keysbrook project comprises:

–    An Indicated Resource of 26.3 million tonnes at 2.2 per cent THM; and

–    An Inferred Resource of 3.5 million tonnes at 2.4 per cent THM.

 

Mineral Resource estimate. Source: Company announcement

 

MZI said it considers the remaining 29.7 million tonnes Mineral Resource as being readily accessible; however, the company indicated further negotiation with landholders, local government and regulators is required before any work can proceed.

The projected mine life of the Keysbrook project is:

–    5.5 years – Ore Reserve based on current approvals;

–    7.2 years – Feasibility Study mine life based on accessible Mineral Resources plus shire approvals; and

–    +15 years – potential mine life based on increased Mineral Resource estimate.

“In MZI’s opinion, there is significant potential for further increases in the Keysbrook Mineral Resource, with the mineralisation envelope defining the Mineral Resource being open in all directions,” MZI said in its ASX announcement.

White Rock Minerals confirms gold mineralisation at Red Rock

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THE DRILL SERGEANT: White Rock Minerals (ASX: WRM) has intersected a large zone of shallow gold mineralisation at the Red Rock prospect in northern New South Wales.

The Red Rock prospect is located on mining leases sitting 15 kilometres from the existing 23.3 million ounce silver and 0.28 million ounce gold Resource base on the company’s Mt Carrington project.

The latest drilling has extended a broad near-surface zone of gold and silver mineralisation, which White Rock first discovered while conducting first pass drilling in late 2012.

The company has completed ten drillholes so far this year, from which it has receives assay result for the first four holes.

 

Red Rock surface plan showing location of White Rock drillholes (red
and blue collars) with recent assay results, general geology,
historical drilling and mine workings. Source: Company announcement

 

Drilling is continuing to enable White Rock to assess the size and grade tenor of the mineralised zone.

The company is working towards the estimation of a shallow gold-silver Mineral Resource for potential inclusion into an expanded mine development study for Mt Carrington.

Highlights from three of the first four holes include:

– 62 metres at 0.6 grams per tonne gold from 8 metres;

– 49m at 2.3g/t gold from 81m, including 13m at 4.3g/t gold from 83m and 7m at 2.7g/t gold from 105m;

– 2m at 8.4g/t gold from 128m;

– 12m at 75g/t silver from 64m, including 1m at 152g/t silver from 68m and 1m at 375g/t silver from 73m; and

– 13m at 0.8g/t gold from 53m, including 1m 4.8g/t gold from 63.2m.

“The confirmation in the latest drilling program of a significant new shallow gold-silver system at Red Rock is a major advancement for us at Mt Carrington,” White Rock Minerals managing director Geoffrey Lowe said in the company’s announcement to the Australian Securities Exchange.

“We are excited and optimistic about the potential of the gold zone at Red Rock to be converted into a new Resource, adding to the 750,000 ounces gold equivalent already on the books.”

“We are currently undertaking a number of exploration programs designed to generate targets for drill testing in the second quarter.

“All of these targets are favourably located within 25km of our main Mining Leases, infrastructure and Resource base, and any new Resource additions resulting from these programs will strengthen the recently completed economic study for a new mining operation at Mt Carrington.”

Northern Star increases gold resource at Ashburton project

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THE DRILL SERGEANT: Northern Star Resources (ASX: NST) has increased resources at the company’s Ashburton gold project in Western Australia by 66 per cent.

The new Ashburton resource has come in at 21.3 million tonnes at 2.4 grams per tonne gold for 1.67 million ounces of gold.

Northern Star said the increased inventory underpins the company’s plan to establish a stand-alone operation at Ashburton.

Late last year Northern Star remodelled the geological structure of the project’s main Mt Olympus target to enable more effective targeting of its mineralisation.

 

Ashburton’s Main Deposit – 1.1 million ounce Mt Olympus gold deposit. Source: Company announcement

 

This resulted in a 350 metre down plunge extension to the Resource.

Northern Star said the enhanced understanding of the mineralisation it had gained is to be further evaluated when drilling resumes in the next Quarter.

The company also has a maiden sulphide reserve for Ashburton scheduled for completion in the second half of this year.

The Ashburton project is situated 200 kilometres from Northern Star’s Paulsens gold mine, the company recently completed a plant expansion that is expected to produce up to 115,000 ounces this calendar year, generating up to $85 million in surplus cash.

Economic and technical studies on the development of Ashburton are well advanced based on a two-staged strategy.

Stage One comprises an oxide project and Stage Two being based on a sulphide plant.

The updated resource includes 7.4 million tonnes of oxide ore grading 2.7g/t for 647,000 ounces and a further 13.9 million tonnes of sulphide ore grading 2.3g/t for 1.02 million ounces.

Northern Star explained commencing production at Ashburton as a free-milling operation, which it maintains will de-risk the subsequent establishment of a long life, high-grade sulphide operation and bring earlier cashflow.

Bill Beament said Ashburton was now a major deposit by any standard.

“To establish a 1.7 million ounce resource, with clear scope for further increases, is a great outcome anywhere in the world,” Northern Star managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.

“It is becoming increasingly clear that Ashburton will be another stand-alone operation with low costs and strong cashflow, giving Northern Star the project diversity and critical production mass being demanded by investors.”

Excelsior Gold increases and upgrades Zoroastrian

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THE DRILL SERGEANT: Excelsior Gold has completed resource calculations based on infill and extensional drilling results from the Zoroastrian gold deposit, situated within the company’s Kalgoorlie North gold project, which has increased total resource ounces by 12 per cent and upgraded Inferred resources by 28 per cent to the Indicated category.

The new Indicated and Inferred gold resources at Zoroastrian total:

–    5,763,500 tonnes at 2.62 grams per tonne gold for 485,300 ounces of gold.

Total Measured, Indicated and Inferred gold resources at 0.6g/t and 3.0g/t gold lower cut-off grades for the Kalgoorlie North gold project have increased to:

–    20.59 million tonnes at 1.74g/t gold for 1,153,700 ounces of gold.

The resource update follows a raft of drilling programs totalling 85 new reverse circulation and diamond drill holes.

Excelsior said the drilling was designed to infill within the optimal pit shell defined on the previous resource it announced to the market in December last year in order to improve its confidence in the resource and promote Inferred resources to the Indicated classification for a prefeasibility study due for completion June 2013.

 

Kalgoorlie North project – Central Resource Area geological plan
(showing current resource areas with resources quoted at 0.6 and 3.0g/t
gold lower cut-offs ). Source: Company announcement

 

The bulk of the most recent drilling was infill drilling in the central portion of the resource area with a number of intersections demonstrating potential to further expand the possible open pit.

Results from drilling outside the current optimal pit shell include:

–    16 metres at 13.9g/t gold from 78 metres, including 1 metre at 174g/t gold from 78 metres and 6 metres at 1.69g/t gold from 215 metres;

–    11m at 4.45g/t gold from 79m, including 1m at 35.6g/t gold from 78m; and

–    50m at 3.2g/t gold from 90m, including 7m at 13.5g/t gold from 107m.

“The continuing expansion of the Zoroastrian deposit is further evidence that the extensive mineralised zone has potential to host a very substantial gold deposit and that the central part of the Kalgoorlie North tenements is evolving into a major gold camp,” Excelsior gold said in its ASX announcement.

“The area hosts multiple gold deposits including the 456,100 ounce gold resource at the Excelsior gold deposit located 300 metres east of Zoroastrian.”
 
Reverse circulation drilling is continuing at Zoroastrian with two drill rigs in operation.

Results of approximately 40 additional drill holes are still awaited and further expansion and upgrade of the gold resources at Zoroastrian is anticipated in late March 2013.

Laconia hits impressive copper in Peru

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THE DRILL SERGEANT: Laconia Resources (ASX: LCR) has received high-grade copper-gold-silver values from historical underground drive development sampling undertaken at the Española 1 prospect, situated within the company’s Rasuhuilca project in Peru.

The company described this copper occurrence to be significant as it combines with its previously released knowledge of the geology, mineralisation and alteration, to expand the exploration model to an “El-Indio style” gold, silver and copper porphyry system.

Results from the Española 1 underground sampling include:

–    2.1 metres at 8.4 per cent copper, 6.13 grams per tonne gold and 111.7 grams per tonne silver;

–    2.2m at 6.8 per cent copper, 6.47g/t gold and 141.8g/t silver; and

–    1.1m at 9.7 per cent copper, 8.7g/t gold and 152.8g/t silver.

 

Plan View of the 4810m level adit at Española 1 showing copper
results from historical channel sampling. Source: Company announcement

 

“The company is very pleased with the identification of positive copper-gold-silver grades from our flagship Peruvian project,” Laconia Resources managing director Ian Stuart said in the company’s announcement to the Australian Securities Exchange.

“We are continuing to grow our knowledge of the wider Rasuhuilca Volcanic system through the systematic processing of historical data.

“The presence of significant copper in conjunction with the gold and silver epithermal veins already identified adds significantly to the potential of the entire Rasuhuilca project.

“The company has also been progressing well with the permitting and approvals process to commence exploration drilling, and has a preliminary 2,000 metre diamond drilling program planned to both upgrade the existing JORC resource, and to test high quality gold and copper targets identified through previous exploration activity.”

Laconia indicated it is currently planning further exploration programs for gold-silver and copper zones and will be conducting  surface and underground channel sampling and drill testing during 2013 and into the first half of 2014, subject to approvals.

At present, the company is working on permitting and community agreements utilising the
Declaración de Impacto Ambiental (“DIA”) process of the Peruvian regulatory system, to obtain approval for the drilling and sampling program to commence.

New Age Exploration defines maiden Resource for Redmoor

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THE DRILL SERGEANT: New Age Exploration (ASX: NAE) has defined a maiden Inferred Resource at the company’s Redmoor tin-tungsten project, located in south east Cornwall, United Kingdom.

The calculation of the Resource follows the completion of an assay verification program of historic drill core from the project.

The Inferred Resource at Redmoor has come in at:

–    9.1 million tonnes at 0.69 per cent tin equivalent (0.21 per cent tin, 0.16 per cent tungsten, 0.2 per cent zinc, 0.008 per cent lead, 8.38ppm silver) using a 0.53 per cent tin cut-off grade.

“Establishing a JORC-compliant Inferred Resource for the Redmoor tin tungsten project is a great milestone for us,” New Age Exploration managing director Gary Fietz said in the company’s announcement to the Australian Securities Exchange.

“Within just four months of completing the acquisition, we have created additional value by upgrading the Redmoor Conceptual Exploration Target to a JORC compliant Inferred Resource.

“With the integrity of the historic drilling database confirmed by the re-sampling program and a defined Inferred Resource, we can now confidently move forward with our technical work program, including the completion of a Scoping Study.”

 

Redmoor project location plan and regional geology. Source: Company announcement

 

NAE said the Mineral Resource remains open both at depth and laterally and has had the modelled orebody extended into areas of more limited drilling to define an Exploration Target.

Based on this work, the company’s contractors, SRK consider a reasonable Exploration Target, in addition to the Inferred Resource, to be in the range of four to six million tonnes with an average tin grade of between 0.08 per cent and 0.13 per cent, a tungsten grade of between 0.16 per cent and 0.26 per cent a copper grade of between 0.20 per cent and 0.34 per cent and a tin equivalent grade of between 0.51 per cent and 0.85 per cent.

NAE is now compiling historical technical data in preparation for a Scoping Study to identify the company’s preferred development pathway and to enable it to more accurately determine project economics.

From these studies, the company indicated it will then consider its future options, which may include continued testwork, securing strategic partnerships and/or divestment.