Genesis encouraged by Chilean drilling

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THE DRILL SERGEANT: Genesis Minerals has reported the receipt of encouraging results from the final three holes drilled at the company’s Dinamarquesa project located in northern Chile.

The company said it had intersected extensive zones of porphyry-hosted copper-gold and molybdenum during the drilling.

The results include:

–    17 metres at 0.53 per cent copper equivalent (0.29% copper, 0.15g/t gold);

–    80m at 0.48% copper equivalent (0.28 % copper, 0.16g/t gold, 117 parts per million molybdenum);

–    9m at0.55% copper equivalent (0.27 % copper, 0.25g/t gold, 130 ppm molybdenum);

–    17m at 0.77% copper equivalent (0.18% copper, 0.76g/t gold);

–    15m at 0.47% copper equivalent (0.30% copper, 0.21g/t gold); and

–    19m at 0.41% copper equivalent (0.25% copper, 0.11g/t gold, 101 ppm molybdenum).

In addition to the porphyry style mineralisation Genesis said it had also intersected high-grade gold mineralisation associated with quartz-sulphide veins, including:

–    0.2 metres at 49.2 grams per tonne gold;

–    0.3m at 21.1g/t gold;

–    0.64m at 8.2g/t gold; and

–    0.2m at 8.7g/t gold;

“The recent drilling has again returned very pleasing results with wide zones of porphyry hosted copper, gold and molybdenum mineralisation intersected,” Genesis Minerals managing director Michael Fowler said in the company’s announcement to the Australian Securities Exchange.

“The porphyry system remains completely open. It is untested to the north and at depth where further drilling is required to define the extent of the system and where we believe the greatest potential lies.”

Genesis’ interpretation of the latest drilling results is that they have confirmed that there is potential to define a large porphyry copper – gold – molybdenum system at the Dinamarquesa project.

The company said it also considers a recently-defined quartz-feldspar porphyry forms a major exploration target for future work at Dinamarquesa.

“The high-grade, vein hosted gold mineralisation returned from the final holes is also very encouraging with further detailed drilling required to define the continuity and extent of the vein mineralisation,” Fowler said.

Genesis Minerals entered into an agreement in August 2010 with a private Chilean company to acquire a 100% interest in the Dinamarquesa project.

Limited previous wide spaced drilling carried out on the project had delineated a number of high-grade gold structures.

The project is located within the Inca de Oro gold-copper belt, which forms part of the Palaeocene Porphyry belt of northern Chile.

Sherwin receives Roper River results

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THE DRILL SERGEANT: Iron ore-focused exploration company Sherwin Iron has reported results from a drilling campaign the company has carried out at the Sherwin Creek prospect located within its Roper River iron ore project in the Northern Territory.

These recently-received results stem from a program of 91 RC drill holes totalling 4,506 metres, and 18 diamond drill holes totalling 607 metres.
The drilling was carried out so that Sherwin could test the continuity and boundaries of drill results it had previously reported to the market.

The best of the results received from the latest round of drilling include:

9 metres at 47.8 per cent iron from 11 metres;

8m at 49.7 per cent iron from 31m;

9m at 50.3per cent iron from 29m;

10m at 47.1per cent iron from 36m;

7m at 51.1per cent iron from 30m;

10m at 47.4per cent iron from 0m;

10m at 49.0per cent iron from 0m; and

10m at 50.1per cent iron from 22m.
 
Sherwin Iron conducted the infill drill program at Sherwin Creek over a nominal 400m by 200m drill hole spacing appropriate for the computation of a resource estimation.

SRK Consulting has commenced estimation of a maiden resource for Sherwin Creek, which is targeted for delivery by the end of October.

The company said it had confirmed that the middle and lower beds of shallow dipping iron oxide mineralisation that it announced to the market in June are continuous between sections.

Indicative beneficiation testing of the Sherwin Creek iron oxide mineralisation has commenced using samples the company obtained from a metallurgical diamond drilling program of 8 PQ diamond core holes for 229m to support the resource estimate.

“These are further excellent results from our 2011 drill program,” Sherwin Iron managing director Jerry Ren said in the company’s announcement to the Australian Securities Exchange.
 
“The additional drilling results should underpin a substantial maiden resource at Sherwin Creek and are consistent with our current Exploration Target of 400 million tonnes to 500 million tonnes at 40 per cent to 48 per cent iron for Hodgson Downs, Sherwin Creek and Mount Fisher.

“Our 2011 exploration season is still underway and the ongoing mapping and sampling of targets in the Mount Scott and Yumanji areas is on track to upgrade the company’s Exploration Target for the Roper River iron ore project before the end of the field season.”

Robust hits best copper intersection

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THE DRILL SERGEANT: Gold and base metal exploration play Robust Resources has received some encouraging results from an ongoing drilling program being undertaken at the company’s Romang Island project in Indonesia.

A total of seven drill rigs a currently operating on the Romang Island project with focus corroborating earlier exploration drilling results.

Robust Resources is also hoping to expand the boundaries of the known mineralisation at the project.

The company said that the recently received assay results indicate that mineralisation continues well beyond the boundaries that have been defined by current drilling.

One hole, LWD120, was drilled on the south-eastern extremity of the Batu Mas prospect.

This hole and intersected high-grade massive to semi-massive sulphide mineralisation over a wide zone.

Results from LWD120 include:

–    22 metres at 7.74 per cent copper equivalent (1.36 per cent copper, 10.03 per cent lead, 10.24 per cent zinc, 0.14 grams per tonne gold, 57 grams per tonne silver) from 126 metres; and

–    10 metres at 10.25 per cent copper equivalent (2.36 per cent copper, 8.65 per cent lead, 16.76 per cent zinc, 0.16 grams per tonne gold, 61 grams per tonne gold) from 134 metres.

“This is a very encouraging result given that it is the strongest zone of mineralisation intersected so far,” the company said.

The zone of mineralisation is open at depth and to the east.

The company considers these initial results have indicated that the eastern part of Batu Mas is strongly mineralised in base metals.

The drilling has also intersected a number of copper-rich zones in the same area.

“LWD120 is one of our most exciting and significant intersections to date and demonstrates that Romang Island hosts significant copper-rich massive sulphide mineralisation,” Robust Resources managing director Gary Lewis said in the company’s announcement to the Australian Securities Exchange.

“It also confirms that these zones are still open for further discovery.

“These extensions, and other completely untested targets, such as the silver-rich Batu Perak prospect, will be the focus of future drilling campaigns.”

Robust Resources has now completed 22,000 metres of drilling at Romang Island.

The results from this drilling will be used to form the basis of a maiden mineral resource estimate, which the company said is due to be released by the end of the year.

“The final batch of core samples to calculate the resource estimate is now in transit to the laboratory in Jakarta,” Lewis said.

“Assay results from this batch of drill core samples, as well as others already at the laboratory will be released over coming weeks.”

Focus drills potential Perseverance expansion

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THE DRILL SERGEANT: Recent drilling carried out by Australian gold producer Focus Minerals at its Tindals Mining Centre underground operation has resulted in a series of high-grade gold intercepts, which the company said highlights potential for further expansion around the Perseverance deposit.

Focus has also just poured its 200,000th ounce of gold since it started production from the Tindals underground operation in April 2008.

Approximately 125,000 ounces of that production has been mined from Perseverance.

“Perseverance has been an important ore body for Focus over the years and its production has been exceptional when you consider we only started there with a 76,000 ounces reserve,” Focus Minerals chief executive Campbell Baird said in the company’s announcement to the Australian Securities Exchange.

The recent campaign has targeted previously identified mineralisation to the north of the existing reserve, called the Perseverance North deposit, where Focus has outlined a 150 metre strike length of high-grade mineralisation, which remains open to the north and down dip.

Perseverance North was targeted to assess the southern strike potential as well as infill around previous high-grade results.

Focus said the drilling result appear to indicate Perseverance North has a moderate-steep southerly plunge, similar to the main quartz-sulphide ore body at Perseverance.

Recent drilling results at the main lode at Perseverance, including 4.5m at 21.6 grams per tonne gold, 2.3m at 12.3g/t gold, and 2m at 7.8g/t gold, have also confirmed a mineralised diorite lode west of, and running parallel to, the current Perseverance Ore Reserve.
 
High grade intercepts at the Perseverance North deposit include:

–    6 metres at 20.2 grams per tonne gold;
 
–    2.4m at 16.3g/t gold;

–    2.8m at 10.8g/t gold; and

–    2.7m at 10.0g/t gold.

High-grade intercepts in the diorites include:

–    16.9m at 16.0 g/t gold;

–    6.1m at 7.0g/t gold;
 
–    3m at 12.4g/t gold; and

–    9m at 3.5g/t gold.

“These results point to the potential for further expansion around the Perseverance ore body and, when you put them together with other work we’ve been doing across the wider underground operation, we are clearly in a very strong position to continue to deliver solid production from the Tindals underground month after month,” Baird said.

Orrex hits Lakeside gold

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THE DRILL SERGEANT: The results are back in from Orrex Resources’ first reverse circulation (RC) drilling program at the Lakeside prospect, on its Golden Mile South project in Western Australia.

The campaign consisted of eleven holes, four of which intersected gold mineralisation, for a total of 1,300m of reverse circulation drilling.

Orrex said the holes delineated a mineralised and altered shear zone consistent with those hosting major gold deposits in the Eastern Goldfields.

Prior to this program there had only ever been five RC holes testing bedrock drilled on the entire 100 square kilometre project area.

The company said it was excited about the results from this initial drilling and that it was also an encouraging outcome for both the Lakeside prospect and for the entire Golden Mile South project.

Orrex considers the results to have positive implications for its other targets at Golden Mile South targets.

It will now weigh up the benefits of infill drilling at the targets established at greater Lakeside prior to commencing any further RC testing at the Lakeside prospect.

The company’s thinking is that it may be more beneficial to work up the other targets at Lakeside with the intention to carry out a more comprehensive RC program on the greater Lakeside targets at one time.

Gold mineralisation was intersected in four drill holes along the central line of drilling within a 30 metre wide zone of alteration.

The best mineralisation was intersected in one hole where three, 6m to 14m wide, zones of gold mineralisation averaged between 0.7 grams per tonne and 1.59 grams per tonne gold, including 3m at 2.83 grams per tonne, from 30m, and 3m at 2.47grams per tonne gold from 54m.

Orrex said the RC program has given it a better understanding of the structural controls and style of mineralisation at Lakeside.

Because the campaign was focused to the north and south of the central line and was drilled down dip, Orrex said it is unable to determine the strike length of the structure at his time.

“We are pleased with the results of this inaugural RC program, Orrex Resources managing director Sonja Felderhof said in the company’s announcement to the Australian Securities Exchange.

“Hitting gold in bedrock on our first fresh rock program is exciting and highly encouraging not only for the Lakeside prospect but for the rest of the Golden Mile South project.

“The results validate our belief that the project is highly prospective for deposits similar to those in the region.

“The historic approach to exploration on the project area was focussed on discovering near surface alluvial deposits and consequently missed the opportunity to test the surface geochemical anomalies into bedrock.

“We will continue our evaluation on the Lakeside prospect and our other targets in the area to determine the best program going forward at Lakeside.

“We look forward to see what further work will realise at the Lakeside prospect, and other targets in the Golden Mile South project.”

Pacrim drills into Kelly prospect

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THE DRILL SERGEANT: Pacrim Energy has received results from a recently completed program of RC drilling on the Kelly prospect located within its 100 per cent-owned Redcliffe gold project near Leonora in Western Australia.

The program was carried out to infill and extend zones of gold mineralisation the company had previously identified to a vertical depth of approximately 100 metres.

A total of fifteen RC holes were drilled for 1,614 metres on four sections to the north of where earlier drilling had taken place at Kelly.

Pacrim said the latest results from its current program had extended the size of the mineralised system with a number of broad gold intercepts.

Assays returned from five metre composite samples confirmed broad zones of mineralisation of up to:

85 metres at 0.78 grams per tonne gold, containing higher grade intercepts within, including 10 metres at 4.78 grams per tonne gold.

Other gold intercepts received from this program to date include:

–    85m at 0.62 g/t gold, including 5m at 2.78 g/t gold;

–    85m at 0.78 g/t gold, including 5m at 3.13 g/t gold and 5m at 2.24 g/t gold;

–    79m at 0.75 g/t gold, including 10m at 2.42 g/t gold;

–    60m at 1.19 g/t gold, including 10m at 4.78 g/t gold;

–    35m at 0.81 g/t gold, including 5m at 4.34 g/t gold; and

–    35m at 0.51 g/t including 5m at 2.64 g/t gold.

“The results from this program importantly provide further support of an extensive zone of gold mineralisation with the potential to provide a substantial feed source for a regional processing facility or heap leach operation that could be proceed independently or in conjunction with the exploitation of the higher grade Golden Terrace South resource,” Pacrim Energy said in its ASX announcement.

“Single metre sampling of the mineralised zones is to be undertaken.

“The company is confident of building on the existing gold resource base on the Redcliffe project.”

Pacrim has identified the Kelly prospect to be a large gold mineralised system.

RC drilling has been carried out at the prospect over a strike length of one kilometre and AirCore drilling to the south has extended the mineralised zone a further kilometre.

Higher grade gold intervals from previous RC drilling at Kelly included:

–    10m at 4.91g/t gold, 2m at 11.1g/t gold, 4m at 16.2g/t gold, 9m at 2.84g/t gold, and 6m at 2.77g/t gold.

The company said it considers these intercepts represent potential higher grade gold zones which are open to the north.

“Kelly represents a large exploration target with potential to deliver significant (multi million) tonnages of mineralised material,” the company said.

“The size and extent of mineralisation is still being assessed by the company to further build the geological model, in to working to add to the existing Redcliffe project resource base.”

Invictus begins drilling campaign

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THE DRILL SERGEANT: Invictus Gold has commenced the maiden drill program at the Scartwater prospects located on the company’s 100 per cent-owned Drummond Basin project in Queensland.

The company will be conducting a program of 4,000 metres of reverse circulation (RC) drilling.

This will be carried out over the Scartwater prospects as well as the recently identified Whiteglow prospect.

“The Scartwater prospects, called West Porhyry and East Porphyry, were recognised in modest outcrops and in related anomalous gold-in-soil responses together with high-grade rock chip assays of up to 32 grams per tonne (one ounce per tonne),” Invictus Gold said in its ASX announcement.

According to Invictus, the rock chip assays it has received are associated with disseminated pyrite in altered porphyries.

The two porphyry bodies are each about 500m long and up to 300m wide.

“The East Porphyry is coincident with a magnetic anomaly and both porphyries are associated with elevated potassium responses in airborne geophysical data,” the company said.

“These geophysical and geochemical signatures are very similar to those at many porphyry-style deposits in Queensland, as at the Mount Wright and Mount Leyshon Mines about 100 kilometres to the north, and at the large Anthony porphyry-hosted molybdenum deposit about 100 kilometres to the south.”

The Whiteglow prospect is said to comprise a gold and silver-in-soil anomaly that measures 1,500m long and 500m wide.

At the northern end of the soil anomaly a rock chip sample from a mineralised and altered porphyritic rock returned an assay of:

–    7.3 grams per tonne gold and 200 grams per tonne silver.

Invictus indicated this northern area is close to three previous holes it has drilled which returned intercepts of:

–    34 m at 0.3 g/t gold from 24 m, 18 m at 23 g/t silver, and 0.6% lead from 26m.

The area tested by these previous drill holes lies outside the soil anomaly identified by Invictus, and that will be the focus of the company’s drill program.

Emmerson makes second Tennant Creek discovery

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THE DRILL SERGEANT: Tennant Creek-focused gold-copper explorer Emmerson Resources has discovered its second high-grade copper deposit.

This new discovery called Goanna is located within its 100 per cent-owned Tennant Creek Mineral Field leases in the Northern Territory.

It also lies within, what Emmerson describes as the “highly prospective” Gecko Structural Corridor.

The discovery of Goanna follows in the tracks of the company’s announcement of its discovery at Monitor, which it announced in August.

Drilling at the Goanna project has intersected high-grade copper including:

–    21 metres at 2.63 per cent copper from 297 metres down hole, including 12 metres at 3.89 per cent copper from 299 metres, or 7 metres at 4.96 per cent copper from 299 metres.

Earlier this year, Emmerson flew the world’s most powerful helicopter (HeliTEM) geophysical survey over five discrete blocks within its 3,000 square kilometre project.

“The high-grade copper discovery at Goanna, our second significant copper discovery in a month, shows the value and importance of the HeliTEM survey in more directly pinpointing mineralisation that contains sulphides, in this instance, high grade copper sulphides,” Emmerson Resources managing director Rob Bills said in the company’s announcement to the Australian Securities Exchange.

“The Goanna and Monitor discoveries have important implications to the exploration potential of the rest of the field, as the style and signature of these discoveries are very different to the historic ironstone hosted deposits.

“Thus HeliTEM has provided some new insights into the TCMF and has the potential to unlock a new generation of sulphide rich deposits within our project area.

“Importantly we believe there is excellent potential to intersect gold mineralisation beneath or peripheral to these identified copper zones, as the majority of deposits within the TCMF have gold mineralisation below the copper zones and; that the drilling at both these projects intersected high grade bismuth mineralisation which is typically a pathfinder element to the gold.”

Emmerson originally identified Goanna from a series of HeliTEM anomalies within the Gecko Structural Corridor.

A combination of additional ground geophysics, mainly Induced Polarisation, and new geological and structural concepts indicated potential outside of the traditional magnetic targets.

Mineralisation at Goanna is around 200m east of the known mineralisation, remains open in all directions.

Emmerson considers the Monitor project to represent a totally new ore position within the Gecko Structural Corridor.

A previously reported drill hole at the Monitor project, located around 2km to the west of Goanna suggests a similar style of mineralisation was overlooked by previous exploration companies.

“We now believe these shear zones extend well beyond the Gecko mine area and that their relationship to the HeliTEM anomalies, which are developed over some six kilometres along the Gecko corridor, indicate excellent potential for additional discoveries,” Emmerson said in its announcement.

Azumah hits two new prospects

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THE DRILL SERGEANT: Azumah Resources has received some promising results from two of its prospects located between the adjacent flagship Kunche and Bepkong deposits at the company’s Wa gold project located in northwest Ghana.

Wide spaced RC drilling carried out by Azumah at the Aduane target has returned intercepts including:

–    14 metres at 2.31grams per tonne gold from 13 metres; and

–    16m at 2.34g/t gold from 23m.

At Bepkong South, drilling returned a best intercept of:

–    6m at 15.60g/t gold from 53m.

The Aduane prospect is located one kilometre north-east of the Kunche deposit and extends for 300m along a north-northeast trend.

The Bepkong South prospect is 500m due south of the main open pit the company has planned for Bepkong and immediately east of a planned satellite pit.

“These latest exploration results support Azumah’s belief that more ‘blind’ satellite gold deposits like the Bepkong deposit are likely to be discovered in the immediate vicinity of the planned gold plant.” Azumah Resources managing director Stephen Stone said in the company’s announcement to the Australian Securities Exchange.

“The thickness of the best intercepts from Aduane are particularly impressive and bode well for the delineation of another mineable deposit.”

Azumah has a follow-up RC drilling campaign planned to be carried out in the area this month once it has completed a detailed review of all historical and recent exploration data.

This data will include the results of a recently completed dipole-dipole Induced Polarisation survey.

The company is in the final stages of a Feasibility Study for a plus-one million tonnes per year, greater than 100,000 ounce per year gold operation, with most key components of the study now being finalised.

Azumah said the completion of the study depends largely upon the receipt of final assays from recent infill drilling programs to enable updated resource models and pit optimisations as well as finalising production schedules.

The company’s geologists are currently reviewing all recent and historical exploration data and finalising exploration programs and budgets for the next exploration season.

More drill rigs in addition to the five already committed to the project are likely to be contracted.

An aircore rig is already back on site and about to drill several new targets.

Azumah is also establishing a third field camp in the northern extremities of its 3,200 square kilometre licence area as much of this area has not been explored to any reasonable level.

Sheffield confirms talc intersections

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THE DRILL SERGEANT: Sheffield Resources announced high-grade talc results from drilling at its Moora Talc Belt project located in Western Australia’s Mid West region.

Assay results from a 1,238 metre core drilling program completed intersected talc at all six prospects drilled.

Furthermore, significant widths of talc are defined at three of the prospects; Fowlers, Prowaka South and Tilleys.

Sheffield Resources managing director, Bruce McQuitty said the drilling results are a boost to the company’s exploration campaign in the Moora Talc Belt.

“These results confirm the chemical characteristics of our talc are comparable to those of Luzenac’s Three Springs mine which is renowned for its premium grade microcrystalline talc,” McQuitty said in the company’s announcement to the Australian Securities Exchange.

“Our goal is to discover similar premium quality talc deposits capable of supporting long-life direct shipping mining operations.”

Sheffield’s 1,152 square kilometre Moora Talc Belt project contains over twenty known talc occurrences.

The company’s strategy is to evaluate the quality and size potential of each occurrence before committing to a resource drill-out on the highest priority targets.

Prowaka South is located 11 kilometres south of the Three Springs mine and contains talc of a very similar style.

Two distinct zones of talc mineralisation were intersected by the recent drilling. The upper zone comprises numerous narrow intervals of high grade talc with very low iron values, including:

–    2.13m at 31.8% magnesium oxide, 61.6% silica, 0.25% iron oxide, 0.56% calcium oxide from 82.0m.

The lower zone also consists of widths of talc mineralisation, containing some secondary carbonate veining and brecciation.
 
–    12.4m at 30.4% magnesium oxide, 52.3% silica, 0.68% iron oxide, 4.38% calcium oxide from 180.3m.

A single drill hole at the Tilleys prospect intersected high-grade talc including:

–    18.6m at 31.1% magnesium oxide, 61.5% silica, 1.56% iron oxide, 0.13% calcium oxide from 45.6m.

Sheffield considers Tilleys to be a substantial sized target with mineralisation remaining open in most directions.

Two drill holes at Fowlers intersected up to 81.1m thickness of weathered and partially weathered talc with exceptionally low calcium oxide levels from near surface.

Overall, Fowlers has elevated iron levels, however within the deposit there are zones of lower iron, for example:

–    11.4m at 30.2% magnesium oxide, 62.5% silica, 1.02% iron oxide, 0.02% calcium oxide from 0.9m;

–    25.8m at 30.7% magnesium oxide, 62.0% silica, 1.54% iron oxide, 0.06% calcium oxide from 45m; and

–    41.8m at 30.3% magnesium oxide, 62.3% silica, 1.49% iron oxide, 0.03% calcium oxide from 3m.

Sheffield said it intends to evaluate the distribution of these low iron zones within the deposit.

As much of the iron occurs as oxides on fractures, it may be possible to reduce the iron content through beneficiation processes.

Several narrow high grade intersections of pearly white talc were returned from drilling at Nivens, including:

–    1.15m at 31.4% magnesium oxide, 62.9% silica, 0.66% iron oxide, 0.08% calcium oxide from 53.2m.

Sheffield is encouraged by the high quality of the talc at Nivens and is considering further step-out drilling around the prospect.

At Buckingham weathered talc with low iron levels was intersected from a shallow depth:

–    7.60m at 28.7% MgO, 62.5% silica, 0.86% iron oxide, 0.04% calcium oxide from 25.3m.

Further exploration will target the talc horizon below the base of oxidation.

At Haigs a narrow zone of weathered talc with low iron levels was intersected:

–    1.50m at 28.9% magnesium oxide, 63.7% silica, 0.96% iron oxide, 1.13% calcium oxide from 25.6m.