THE DRILL SERGEANT: Cassini Resources (ASX: CZI) has received the results of a report conducted by independent consultant Dr Jon Hronsky on the geophysical interpretation of the company’s 100 per cent-owned West Musgrave project in Western Australia.

Cassini said the report has provided some context to several discrete anomalies, identifying them as high priority, potentially large scale nickel sulphide targets.

The company said Hronsky described the West Musgrave project in his report to be “…one of the most significant unexplored opportunities for a large scale, NiS [nickel sulphide] deposit in Australia…”.

Hronsky’s positive interpretation has led Cassini to re-evaluate the prospectivity of the West Musgrave project.

Aeromagnetic image of the Musgrave project showing the exploration target and main features. Source: Company announcement

Cassini is targeting Norilsk (Siberia) or Voisey’s Bay (Canada) style mafic –intrusion hosted Ni-Cu sulfide at West Musgrave similar to that recently discovered by Sirius Resources (ASX: SIR) at its Nova discovery.

Cassini has continued to advance exploration at the West Musgrave project this year, having entered into an access agreement with the local Traditional Owners (Ngaanyatjarra), completed heritage surveys and conducted reconnaissance mapping to determine appropriate exploration techniques.

The recent geophysical interpretation by Hronsky has identified a number of specific targets using a reinterpretation of existing data.

“The generation of these new discrete targets will now allow the company to carry out airborne electro-magnetic (EM) surveys over a much smaller area, with a view to potentially locating EM conductors which can subsequently be drilled,” Cassini Resources said in its ASX announcement.

“It should be noted that due to the unique geology in the Musgrave, ‘false EM conductors’ are rare and anomalies generally signify metal sulphide mineralisation.”

Cassini has now applied for additional exploration licenses, contiguous with the existing Musgrave licenses, where additional targets have been identified.

The company said it has laid out a clear exploration path including airborne EM and if successful, drilling these targets to assess their potential for nickel-copper sulphide mineralisation.

THE DRILL SERGEANT: Paynes Find Gold (ASX: PNE) has received encouraging results from Stage 2 drilling conducted on the company’s 100 per cent-held tenements at Paynes Find in Western Australia.

The Stage 2 drilling was completed in early September, consisting 52 RC holes and six diamond drill holes, producing a total of 7,145 samples, including duplicates.

All samples have been assayed for gold, silver and copper, and all results have now been received.

The drilling campaign at Paynes Find returned the following results, including some which have been previously announced:

–    3 metres at 92.1 grams per tonne gold from 41 metres, including 1 metre at 271 grams per tonne gold;

–    12m at 6.61g/t gold from 10m, including 3m at 17g/t gold from 13m;

–    2m at 33.02g/t gold from 22m;

–    3m at 16.07g/t gold from 50m;

–    2m at 24.5g/t gold from 39m;

–    3m at 15.96g/t gold from 32m;

–    7m at 4.83g/t gold from 77m;

–    3m at 8.04g/t gold from 45m and 3m at 5.21g/t gold from 140m; and

–    4m at 6.28g/t gold from 79m and 6m at 3.56g/t gold from 120m.

Paynes Find said it is now refining the interpretation of the drilling results and building a geological model of the gold mineralisation known to date, which it expects will lead to the definition of additional drill targets.

Paynes Find cross section. Source: Company announcement

The company indicated more work is clearly justified to adequately assess the potential of the Paynes Find field as so far only about 5 per cent of the total area available has been explored for gold mineralisation.

Paynes Find is undertaking reviews of all available data and integrating the results of recent drilling to deliver an understanding of the controls on gold mineralisation at Paynes Find and then use this to locate economic zones of gold mineralisation.

“The key point to derive from the Stage 2 results is that they have now provided the economic and geological rationale to continue further drilling to assess the real potential of the tenements at large,”Paynes Find executive director Carl Popal said in the company’s announcement to the Australian Securities Exchange.

“The positive results have started to add real value, both existing and potential, to the company’s assets.

“The company is debt free with cash at hand, and supported by a highly regarded team of experts.

“Current and planned exploration activity is poised to significantly enhance the value of the Paynes Find Field especially in a market conducive to high gold prices and long term investment potential.”
 
Paynes Find said it is currently planning a short interim program, of around 15 holes of shallow RC holes into regional targets.

It is also reviewing requirements for a third phase drilling exercise in the New Year, based on outcomes from the review of current work and associated structural studies.

The third round of drilling is planned for Q1 2013.

THE DRILL SERGEANT: International Goldfields (ASX: IGS) informed the market in October of its intentions to enter into a conditional Binding Heads of Agreement with US-based, Santa Fe Gold Corporation that will combine the companies.

In connection with anticipated merger, Santa Fe has delivered to IGS a recently-completed independent review of historical drilling, sampling and metallurgical data at the Ortiz gold project, one of Santa Fe’s advanced exploration assets.

The recent work has delineated a JORC-compliant gold resource estimation at the Ortiz project.

Source: Company announcement

The resource report estimates Measured and Indicated copper mineral resources from the Lukas deposit at 13 million tonnes (14.3 million short tons) at 0.142 per cent total copper, for 18,400 tonnes (40.6Mlb) of contained copper.

Inferred copper mineral resources from Lukas are an additional one million tonnes (1.1 million short tons) at 0.122 per cent total copper, for 1,200 tonnes (2.7Mlb) contained copper.

IGS said the gold at Lukas (current Measured and Indicated resource of 378,200 ounces of gold) is anticipated to be recovered within a copper concentrate.

According to IGS the Ortiz project has been subjected to previous independent, though not JORC-compliant studies in 2005.

These were based on a 1992 historic resource estimation, which evaluated the open pit mining of approximately one million ounces of gold from the Carache and Lukas gold deposits.

“This study, together with other historical independent evaluations and studies (including metallurgical test work) suggested that low cost recovery options may be available for the deposits,” International Goldfields said in its ASX announcement.

“Previous studies are currently being re-evaluated and optimised to include copper recoveries from the Lukas deposit.”

IGS indicated that it anticipates the two companies will work together to update these studies post-merger.

A Scoping Study for the Ortiz project is expected to be completed by mid-year 2013 with environmental permitting studies also expected to commence in Q1 2013.

THE DRILL SERGEANT: Pegasus Metals (ASX: PUN) has received drilling results, which it claims have confirmed the presence of extensive massive sulphide mineralisation with high-grade copper as well as zinc, silver and gold at the South Limb Pod deposit at the company’s Mt Mulcahy project in Western Australia.

The latest results include grades of up 5.2 per cent copper and 3.28 per cent zinc.

Mt Mulcahy project – South Limb Pod. Source: Company announcement

Notable intercepts from the latest drilling include:

–    3.8metres at 3.11 per cent copper, 2.89 per cent zinc, 27.6 grams per tonne silver and 0.46 grams per tonne gold;

–    1.8m at 5.20 per cent copper, 3.49 per cent zinc, 36.9g/t silver and 0.84g/t gold;

–    4.8m at 4.30 per cent copper, 2.68 per cent zinc, 36.8g/t silver and 0.28g/t gold; and

–    4.3m at 4.76 per cent copper, 3.30 per cent zinc, 42.6g/t silver and 0.36g/t gold.

Pegasus said the mineralisation at South Limb, located 50 kilometres north of Cue in the Murchison Region has now been outlined over a down-dip extent of approx. 150 metres.

Diamond drilling is ongoing to determine the down-plunge and down-dip extent of the mineralisation, which remains open in all directions.

“These latest assays show South Limb Pod is emerging as a substantial body of high-grade VMS mineralisation,” Pegasus Metals managing director Michael Fotios said in the company’s announcement to the Australian Securities Exchange.

“We are particularly encouraged by the fact that the geology and the grades are very similar to those contained in world-class ore bodies in the region.

“We will continue with an intensive program of diamond drilling to grow the known extent of this mineralisation with a view to establishing a maiden JORC resource at the first opportunity.”

Pegasus has acquired a 100 per cent interest in the tenements, which comprise the Mt Mulcahy project, from private company Black Raven Mining, although the transaction is still subject to shareholder approval.

The project is situated in a similar geological setting to the world-class Golden Grove VMS deposits and the recent Hollandaire copper discovery announced by Silver Lake Resources (ASX: SLR) at its Murchison project.

THE DRILL SERGEANT: Tiger Resources (ASX: TGS) has upgraded the Mineral Resource at Kipoi North from Inferred to the Indicated category.

The Kipoi North deposit is located one kilometre north-east of the Kipoi Central deposit, within the boundaries of the company’s Kipoi copper project in the Democratic Republic of Congo.

Kipoi project geology and Mineral Resources. Source: Company announcement

Tiger said the resource estimation was undertaken in support of a definitive feasibility study (DFS) for the Stage 2 solvent extraction electro-winning (SXEW) development at Kipoi.

The Indicated Mineral Resource has come in at 4 million tonnes at 1.33 per cent copper for 53,500 tonnes of copper.

“The resource estimation includes the results of a 34-hole diamond drilling Priority 1 program conducted during the year which was designed to increase confidence in the existing JORC-standard Inferred Mineral Resource,” Tiger Resources said in its ASX announcement.

“The Kipoi North Mineral Resource will be incorporated into the DFS for the SXEW plant due for release later this month.”

Tiger indicated it has recently completed further 15-hole Priority 2 diamond drilling program to define the resource extension identified during drilling of the Priority 1 program.

The company said it anticipates the results will provide further evidence of the extension of the Kipoi North deposit.

“Recent structural analysis has identified parallel structures that have the potential to increase the resource,” the company said.

“Drill testing is planned to outline the potential for further discoveries at Kipoi North.”